Chap 001

1-1

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

Chapter

1

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The Field of Sales Force Management The best executive is the one who has enough sense to pick good people to do what he wants done and self-restraint enough to keep from meddling with them while they do it. Theodore Roosevelt

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

( Figure 1-1)

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Help on the Net

Percentage of Companies Using the Internet for Sales Activities 100% 80%

Source: “G-BB,” Sales and Marketing Management, June 2000, pp. 64&65. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

Order Entry

Prospecting

Expense Reports

0%

Competitive Reporting

20%

Proposal Development

40%

Product Explanation

60%

( Figure 1-2)

Types of Sales Jobs

Position

Industrial sales representative for a producer or a wholesaler

Product Examples

Customers

Industrial Products Cummins Alcoa V.S. Steel Milacron Fanuc Microsoft

Manufacturers Wholesalers

Selling Responsibility: To Increase Sales By Providing technical information and assistance

Business products representative for a producer or a wholesaler

Business Products & Services Manufacturers Providing product Xerox Wholesalers information and Eli Lilly Retailers assistance Lincoln National Insurance Institutions Consolidated Freightways Leo Burnett

Consumer products representative for a producer, wholesaler, retailer, or nonprofit organization

Consumer Products & Services Proctor and Gamble Ford Motor Company General Electric Metropolitan Life Insurance Avon American Cancer Society

Wholesalers Retailers Consumers

Providing product information, merchandising and promotional assistance, and management consulting

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The Nature of Personal Selling Transaction Selling

Relationship Selling

 Get

new accounts  Get the order  Cut the price to get the sale  Manage all accounts to maximize short-term sales  Sell to anyone

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 Retain

existing accounts  Become the preferred supplier  Price for profit  Manage each account for long-term profit  Concentrate on high-profitpotential accounts

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(Figure (Figure 1-3) 1-3)

Selected Activities of Salespeople Salesperson

Generate sales: •Precall planning •Prospecting •Make sales presentations •Overcome objections •Close by asking for the orders •Arrange for delivery

Provide service to customers: •Provide management/technical consulting •Oversee installations and repairs •Check inventory levels

•Entertain

•Stock shelves

•Arrange for credit/financing

•Provide merchandising assistance:

•Collect payments

•Co-op advertising, point-of-purchase displays, brochures

•Participate in trade shows

•Oversee product and equipment testing

Territory management:

Professional development:

Company service:

•Gather and analyze information on customers, competitors’ general market developments

Participate in:

•Perform civic duties

•Disseminate information to appropriate personnel within salesperson’s company •Develop sales strategies and plans, forecasts, and budgets.

•Train wholesalers’ and retailers’ salespeople Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

•Sales meetings •Professional associations •Training programs

•Train new salespeople

Sales jobs differ from other jobs because salespeople…  implement  are

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a firm’s marketing strategies in the field.

authorized to spend company funds.

 represent

their company to customers and to society in general.

 represent

the customer to their companies.

 operate

with little or no direct supervision and require a high degree of motivation.

 develop

innovative solutions to difficult problems.

 need

more tact and social intelligence.

 travel

extensively, which takes time from home and family.

 have  face

large role sets.

role ambiguity, role conflict, and role stress.

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(Figure (Figure 1-5) 1-5)

Sales Management Responsibilities Strategic Planning Organizing the sales force

Performance Evaluation

Communication Coordination Motivation and supervision

Integration

Training and development

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Recruiting, selection, assimilation

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(Figure (Figure 1-6) 1-6)

Executive Ladder in Personal Selling President Vice president of sales National sales manager Regional/divisional sales manager District sales manager Sales supervisor Salesperson

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

Staff assistants available for advice and support at any step along the ladder.

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(Figure (Figure 1-7) 1-7)

Executive Ladder in Team Selling President

Vice president of marketing

Distribution logistics specialist

Client-team leader

Customer sales/service representative Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

Product engineer

Sales Force Management Challenges in the 21st Century Customer

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relationship management (CRM) Sales force diversity Electronic communication systems and computer-based technology Selling teams Complex channels of distribution An international perspective Ethical behavior and social responsibility Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.