Sales Management; A Concise Guide To Sales Management

Sales Management: Chapter 01 intro to personal training: Personal selling: Interpersonal influence process involving a promotional presentation conducted on a One-to-One basis with the buyer. The process of: Developing customer relationships, discovering customer needs, matching appropriate products with these needs, and communicating benefits.”

Sales Management Trends From

To

Transactions

Relationships

Individuals

Teams

Sales Volume

Sales Productivity

Management Local

Leadership Global

 PERSONAL SELLING’S UNIQUE ROLE: 1. High level of customer attention 2. Customize the message 3. Yields immediate feedback 4. Communicate more technical and complex information 5. Demonstrate a product’s functioning and characteristics 6. Develop long-term relationship MODERN SELLING PHILOSOPHY:     

Based on trust and mutual agreement Customer-driven Act as if on customer’s payroll After-sales service is key Professionalism and integrity are essential

SELLING FOUNDATIONS: In order to be successful in today’s global business environment, salespeople must have a solid relationship building foundation. They must: Be Trustworthy

Behave Ethically Understand Buyer Behavior Possess Excellent Communication Skills SELLING PHILOSOPHY OF ‘GOOD’ SALESPEOPLE: 1. Selling is problem solving 2. Selling is a caring activity 3. A customer is a person to be served, not a prospect to be sold 4. Treat people as human beings, not $ signs 5. Be customer driven, not product driven 6. Long-term success depends on customers relations 7. Selling is a ‘win-win’ activity 8. Adherence to ethics, mutual trust, and honesty is essential CHAPTER 02 INTRO TO SALES MANAGEMENT:

Marketing mix Products

Prices

Advertising

Promotion

Public relations

Distribution

Personal selling

Sales promotion

Sales Sales management management Planning Planning Budgeting Budgeting Recruiting Recruiting and and selecting selecting Training Training

Motivating Motivating Compensating Compensating Designing Designing territories territories Evaluating Evaluating performance performance

SALES MANAGEMENT: Sales Management is the attainment of sales goals in an ethical, efficient, and effective manner. THE SALES FORCE MANAGEMENT Managing Sales force involves recruiting, hiring, training, supervising, compensating salespeople, motivating them and providing the proper planning and backup support so they can perform their jobs properly. WHAT ARE THE SALES MANAGERS GOALS?  Sales  Revenues

Profits Market Share Controlling internal costs

  

Sales Force Strategy Role of Sale Sales Force

Defining Selling Process

Defining the Sales Organisation

Role of Alternative Sales channel

Recruit Train And …… Sales force

Building Sales capabilities… Develop sound selling strategy

Organize for efficient coverage

Develop skills for effective selling

Clear segmentation

Right structure

Define necessary skills

Explicit objectives, goals and priorities

Right size

Develop training, recruiting and coaching programs for:

Territory / account Winning selling proposition Realistic time frame/expectations

Assignments for adequate coverage

• Product knowledge • Buying process • Sales methodology • Planning & execution

Motivate & support sales force

Align measurement and reward systems: • Compensation • Recognition Provide necessary organization support (systems, etc.)

Sales management model Sales Strategy What is the value proposition and the role of the sales force in its delivery?

Strategy Mission

Efficiency Is the sales force (and channels) organized for optimal coverage of selected markets?

Does the sales force have adequate coaching & supervision?

Does the recruiting and training match selling skill requirements?

Is support adequate to maximize the selling effort?

Coaching & Supervision

Sales Force Individual Deploy- Sales Selling ment Support Skills

Recruiting & Training

Effectiveness What critical selling skills are required for the sales role in the value proposition?

InforMotivation mation & CompenResources sation

Capability Building

Does the compensation plan meet management’s objectives and pay the sales force fairly?

Are information systems being fully utilized to support the selling effort?

CHAPTER 03 SALES CHANNELS  Personal selling occurs through several types of communication channels  Each sales channels has unique aspects which make it relevant for particular sales situations. The five sales channels:  OVER-THE-COUNTER SELLING: personal selling conducted in retail and some wholesale locations in which customers come to the seller’ place of business.  FIELD SELLING: Involves calling on prospective customers in either their business or home locations. Four types of field sales person:  Professional Salespeople: Help prospective customers to define their needs and then suggest the best means of meeting those needs, even if that requires suggesting that the prospects use a competitive product  National account managers: Highly skilled salespersons who call on key customers’ headquarters sites, develop strategic plans for the accounts, make formal presentations to top-level executives, and assist with all the product decisions at that level  Missionary Salespeople: They do not seek to obtain a direct order from their customers. Primary goal is to persuade customers to place orders with distributors or wholesalers

 Support Salespeople: Support the sales force in a number of ways Technical support salespeople assist with technical aspects of sales presentations. Merchandisers may set up product displays TELE-MARKETING: Utilizes the phone for prospecting, selling, and/or following up with customers. Inbound and outbound. CHAPTER 04(a) PROSPECTING: The process of identifying, qualifying, and prioritizing organizations and individuals that have the need for and potential to purchase the PRODUCT. QUALIFIED PROSPECTS:  Can benefit from the sales offering  Have the financial wherewithal to make the purchase  Play an important role in the purchase decision process  Are eligible to buy based on a fit within the selling strategy  Are reasonably accessible and willing to consider the sales offering  Can be added to the customer base at an acceptable level of profitability Importance of effective prospecting: The better the lead generation method, the higher the proportion of qualified leads. The more accurate the qualifying process, the higher the proportion of customers per qualified lead. Improving the lead generation method so that 10 leads generates two qualified customers means you will need only 50 leads to generate one customer. CHAPTER 05 SALES PROCESS:

AIDA Process

A

ttention

I

nterest

D

esire

A

ction

A

Begin with an attention-getter that relates to the receiver’s needs.

I

Introduce the product, service, or idea and create interest by stating specific reader benefits.

D

Create desire to respond positively by presenting convincing evidence of the value of the product, service, or idea.

A

Encourage action by making it easy and restating the main benefit of responding positively

The Sales Process The AIDA Concept and the Personal Selling Process

CHAPTER 06 PRESENTATION AND OBJECTION HANDLING: A sales presentation should make the prospect want the product being presented PRESCRIPTION STAGE: The salesperson arouses a prospect’s interest by showing understanding of the prospect’s problem and prescribing (presenting) a solution to it. SOLUTION STAGE:  Assumes a knowledgeable role  Begins to earn the right to be an advisor to the prospect



Customizes the presentation of product features and benefits to the prospect’s specific needs and wants

PARTENERING STAGE: Business partnering occurs as a result of sellers and buyers pooling resources in a trusting atmosphere focused on continuous and mutual gain. COMPONENTS OF A SUCCESSFUL PRESENTATION:  Create a drama  Don’t exaggerate  Keep promises CHAPTER 07 TERITORY DEIGN AND COVERAGE: WHAT IS A SALES TERITORY? A sales territory is composed of a group of customers or a geographic area assigned to a salesperson. A sales territory is number of present and potential customers, located within a geographical area and assigned to a salesperson, branch, or intermediary” Sales territories (or markets) are made up of customers rather than geography REASONS COMPANIES DEVELOP AND USE SALES TERRITORIES:

BENEFITS OF TIME AND TERRITORY MANAGEMENT:  Territory should be more efficiently and effectively covered  Optimum time should be spent with each class of prospects  Most important customers should receive the bulk of the service  Sales costs should be reduced due to better time allocation  Optimum results will be yielded STAGES IN TERRITORY DESIGN:

DESIGNING SALES TERRITORIES: 1. Select a control unit  State  Province  City  Station or a zip code 2. Determine location and potential of customers  Identify both present and potential customers  Determine the amount of potential business from each account 3. Determine basic territories through • Determine optional call frequencies (per year) • Determine the total number of calls needed each territory • Determine workload capacity • Draw tentative territorial boundaries • Modify tentative territories as needed 4. Assign salespeople to territories  Need to consider differences in sales abilities and skills  Why and how often should territories be revised  Effect of revision of territories 5. Set up territorial coverage plans for sales force  Routing sales force  Scheduling reps time 6. Evaluate effectiveness of the design

in

ACCOUNT ANALYSIS:  Account analysis is used to estimate the sales potential for each customer and prospect in a territory  Sales potential estimate is used to decide how much effort should be spent on each account Total effort to cover a territory is calculated by considering:    

Number of accounts Number of calls to be made on each account Duration of each call Estimated amount of nonselling and travel time

CHAPTER 08 MARKETING CHANNELS AND SUPPLY CHAIN MANAGEMENT: MARKETING CHANNEL: A set of interdependent organizations that ease the transfer of ownership as products move from producer to business user or consumer. SUPPLY CHAIN: The connected chain of all the business entities, both internal and external to the company, that perform or support the logistics function. Marketing channel fulfills 3 vital functions:  Specialization and Division of Labor: Provides economies of scale Aids producers who lack resources to market directly Builds good relationships with customers  Overcoming Discrepancies:  Discrepancy of Quantity  Discrepancy Of Assortment  Providing Contact Efficiency CHANNEL INTERMIDEARIES: RETAILER: A channel intermediary that sells mainly to customers. Take title to goods. MERCHANT WHOLESALER: An institution that buys goods from manufacturers, takes title to goods, stores them, and resells and ships them. Take title to goods. AGENTS AND BROKERS: Wholesaling intermediaries who facilitate the sale of a product by representing channel member. Do not take title to goods.

Channels for Consumer Products Direct Channel

Retailer Channel

Wholesaler Channel

Agent/Broker Channel

Producer

Producer

Producer

Producer Agents or Brokers

Consumers

Wholesalers

Wholesalers

Retailers

Retailers

Retailers

Consumers

Consumers

Consumers

Role of Supply Chain Management

Role Role of of Supply Supply Chain Chain Management Management

Communicator Communicator of of customer customer demand demand from from point point of of sale sale to to supplier supplier

Physical Physical flow flow process process that that engineers engineers the the movement movement of of goods goods

DISTRIBUTION CHANNELS PERFORM IMPORTANT FUNCTIONS: • • • • • •

Facilitating the exchange process Sorting to alleviate imbalances between outputs and consumer needs Standardizing transactions Holding inventories Assisting the search process Transporting materials and products

LOGISTICS: The process of strategically managing the efficient flow and storage of raw materials, in-process inventory, and finished goods from point of origin to point of consumption.

SCM: A management system that coordinates and integrates all of the activities performed by supply chain members into a seamless process, from the source to the point of consumption.

Supply Chain Management Activities Determine Determinechannel channelstrategy strategyand and level of distribution level of distributionintensity intensity Manage Managerelationships relationships in inthe thesupply supplychain chain Manage Managethe thelogistical logistical components components of the supply chain of the supply chain Balance Balancethe thecosts costsof ofthe thesupply supplychain chain with withthe theservice servicelevel leveldemanded demandedby bycustomer customer

CHAPTER 10: PUSH N PULL STRATEGY: