SALES MANAGEMENT_

INTRO
26th Sep 2016

LBSIM, New Delhi

AGENDA
Evolution of Sales Management
Nature and Importance of Sales Management
Roles and Skills of Modern Sales Manager
Various Sales Management Positions
Sales Objectives, strategies and Tactics
Emerging trends in sales management
Role of Intermediaries

HE SELLS POTATO PEELERS

EVOLUTION, NATURE AND

IMPORTANCE OF SALES
MANAGEMENT
Evolution of Sales Management
Situation before industrial revolution in U.K.
(1760AD)
Situation after industrial revolutions in U.K.,
and U.S.A.
Marketing function splits into sales and other
functions like market research, advertising,
physical distribution

EVOLUTION OF SALES
MANAGEMENT

CHANGES
The age of information has greatly influenced
personal selling.
Today, salespeople use a variety of information
technology tools to gather and process
information of value to the customer.
They recognize that information is a strategic
resource and relationship skills are needed to be
successful.

Sometimes this reliance on information

technology is referred to as selling 2.0.

NATURE OF SALES
MANAGEMENT

Its integration with marketing management

HeadMarketing

ManagerPromotion

Manager
Market
Research

Manager
Sales

Manager
Market
Logistics

Manager
Customer
Service

Relationship Selling
Transactional
Relationship
Selling

Value added Collaborative

/ Relationship
/ Partnering
Selling
Relationship
Selling

/
/

Varying Sales Responsibilities / Positions / Jobs

Sales Position

Brief Description

Examples

Delivery salesperson

Delivery of products to business Milk, newspapers to households

customers or households.
Also takes orders.
Soft drinks, bread to retail stores.

Order taker (Response selling)

Inside order taker

Sales support
Missionary selling
Technical selling

Provide information, build Medical reps. in pharma industry

goodwill, introduce new products
Technical information, assistance Steel, Chemical industries

Behind counter in a garment shop

Pharma products orders from
Telemarketing salesperson takes nursing homes
orders over telephone
Food, clothing products orders
Outside order taker. Also from retailers
performs other tasks

Order-getter (Creative, Problem- Getting orders from existing and Automobiles, refrigerators,
solving, Consultative selling)
new household consumers
insurance policies
Getting orders from business Software and business solutions
customers, by solving their
business and technology problems

IMPORTANCE OF PERSONAL
SELLING AND SALES
MANAGEMENT
The

only function / department in a

company that generates revenue / income
The financial results of a firm depend on
the performance of the sales department /
management
Many salespeople are among the best paid
people in business
It is one of the fastest and surest routes to
the top management

CHANGING ROLE OF A SALES

FORCE
Value creation for customers
Value = Benefits / Cost
Give more benefits, or
Reduce cost
Value addition to the organisation
Importance to profit
Attention to terms of payment.
Give credit to credit-worthy customers
only.

ROLES AND SKILLS OF A MODERN

SALES MANAGER
Some of the important roles of the modern sales
manager are:

A member of the strategic management team

A member of the corporate team to achieve
objectives
A team leader, working with salespeople
Managing multiple sales / marketing channels
Using latest technologies (like CRM/Digital) to build
superior buyer-seller relationships
Continually updating information on changes in
marketing environment

SKILLS OF A SUCCESSFUL
SALES MANAGER
People

skills include abilities to

motivate, lead, communicate, coordinate,
team-oriented
relationship,
and
mentoring
Managing skills consist of planning,
organizing, controlling and decision
making
Technical skills include training, selling,
negotiating, problem-solving, and use of
computers

TYPES OF SALES MANAGERS /

LEVELS OF SALES MANAGEMENT
POSITIONS
Top-Level Sales Managers /
Leaders

Middle-Level Sales Managers

First / Lower Level Sales Managers

TITLES USED IN SELLING

TODAY
Account executive
Account representative
Account manager
Relationship manager
District representative
Marketing partner
Regional account
manager
Key accounts manager
Medical Representative

Strategic accounts manager

National accounts manager

Sales consultant

Business development representative

Marketing representative

Sales associate
Territory manger
Channel partner

Professional Sales Manager

EMPLOYMENT SETTINGS
Inside

salespeople are
those who
perform selling
activities at the
employers
location.

Outside

salespeople
travel to meet
prospects and
customers in
their places of
business or
residence.

SELLING THROUGH CHANNELS

SELLING THROUGH CHANNELS

SELLING THROUGH CHANNELS

SALES PLANNING

LEVEL 1
Top
Management
Decisions

Business
Business
Strategy
Strategy

Marketing
Marketing
Strategy
Strategy

Customer

LEVEL 2
Strategy
Implementation
Decisions

LEVEL 3
Sales Force
Program
Decisions

Go-to-Market
Relationship
Strategy
Management (CRM)
Product Development
Supply Chain
Management
Management (SCM)
(PDM)

Str
cess
o
r
uct
P
s
s
e
ure
l
Sa tivitie
Account Relationship
Ac
Strategy
Com
hip
pet
s
r
enc
de
a
e
ie s
L

Environmental
Environmentalconstraints
constraints
Legal
Legal&&regulatory
regulatory
Demographics
Demographics
Economic
EconomicConditions
Conditions
Technology
Technology
Competitive
Competitiveconditions
conditions
Sociocultural
Socioculturalfactors
factors
Distinct
Distinctcompetencies
competencies
Marketing
Marketing
Financial
Financial
Technology
Technology
Information
Information

Strategic
StrategicManagement
Management
Planning
Planning

Resources
Resources
Financial
Financial
R&D
R&D
Personnel
Personnel
Brand
BrandEquity
Equity
Production
Production

Firms
Firmshistory
history
management
managementculture
culture

Factors Influencing Strategic Management

Steps in Developing a Go-to-Market Strategy

1. What is the best way to segment the market?
2. What are the essential activities required by
each segment?
3. What group of go-to-market participants should
perform the essential activities?
4. Which face-to-face selling participants should
be used?

Figure 2-5:

Essential Activities for Go to Market

Interest Creation

Post-Purchase

Pre-Purchase

Purchase

Potential Go-to-Market Participants

Customers
Customersand
andProspects
Prospects

Agents
Agents
Direct
Sales
Direct Sales Distributors
Distributors
Force
Force
Retailers
Retailers
Direct

Integrators
Integrators

Alliances
Alliances

Advertising
Advertising
Promotion
Promotion
Direct
DirectMail
Mail

TeleTelemarketing
marketing

Internet
Internet

Indirect
Sales Force Options

Non-Sales Force Options

Company
Company

Comparing Various Go-to-Market Alternatives

Low Cost
per Exposure

Advertising
Direct Mail
Internet

Efficiency
Telemarketing

Sales Force

Effectiveness

High Sales
per Exposure

Product Development Management

Sub- processes
Identify customer needs for better solutions
Discovering and designing new product solutions
Developing new solution prototypes
Managing internal departmental priorities and involvement
Designing activities to speed-up development process
Launching new and redesigned offerings

Supply Chain Management Sub - processes

Selecting and managing supplier relationships
Managing inbound logistics
Managing internal logistics
Managing outbound logistics
Designing product assembly and batch manufacturing
Managing process technology
Order, pricing, and terms management
Managing channel partners
Managing product installation and maintenance

Customer Relationship Management

Sub - processes
Identifying high value prospects
Learning about product usage and application

Developing and executing advertising and promotion programs

Developing and executing sales programs
Developing and executing customer service programs

Acquiring and leveraging customer contact information systems

Managing customer contact teams
Enhancing trust and customer loyalty
Cross-selling and upselling of offerings

SALES OBJECTIVES,
STRATEGIES AND
TACTICS

The main components of planning in a company

are objectives, strategies and tactics. Their
relationship is shown below
Decide / Set
Objectives

Develop Strategies

Evolve Tactics /
Action Plans

E.G. A company wants to increase sales of electric

motors by 15 percent, as one of the sales
objectives.

TO ILLUSTRATE THE RELATIONSHIP

BETWEEN SALES OBJECTIVES, STRATEGIES
AND TACTICS, CONSIDER:
Sales Goals /
Objectives

Increase
sales volume
by 15
percent

Marketing
Strategy

Sales and Distribution Strategy

Enter export
markets

Penetrate
existing
domestic
markets

Tactics /
Action plans

Identify the countries

Decide distribution channels

Review
and
improve
salesforce training, motivation
and compensation
Use effective and efficient
channels

Marketing / sales head to get

relevant information
Negotiate
and
sign
agreements in 3-5 months
with intermediaries

Add channels and members

Train
salespeople
in
deficient areas
Train field salesmanagers in
effective supervision
Link sales volume quotas to
the incentive scheme of the
compensation plan

Sales Goals /
Objectives

Reducing
selling
expenses
By
10%

Marketing
Strategy

Sales and Distribution Strategy

Tactics /
Action plans

Utilise Existing
sales force/
resources
optimally

ABC

Focus on A

Use effective and

efficient
channel

Internet.

Treat B & C with

EMERGING TRENDS IN SALES

MANAGEMENT
Global

perspective
Revolution in technology
Customer relationship management (CRM)
Salesforce diversity
Team selling approach
Managing multi-channels
Ethical and social issues
Sales professionalism
E-Selling

LINKING SALES AND

DISTRIBUTION
MANAGEMENT

Either

sales management or distribution

management cannot exist, operate or perform
without each other

To

achieve the sales goals of sales revenue and

growth, the sales management plans the strategy
and action plans (tactics), and the distribution
management has the role to execute these plans

ROLE OF DISTRIBUTION MANAGEMENT FOR SOME

OF THE SALES MANAGEMENT ACTIONS / TASKS
Sales Management Actions /
Tasks

Distribution Management Role

Strategy for effective coverage

of markets and outlets

Follow call plan / beat plan

Make customer call productive
Use multi-channel approach

Strategy for handling customer

complaints

Prompt action at the customer interface level

If the problem persists, involve senior sales
and service people

Planning of local advertising

and sales promotion

Co-ordination with distribution channels

Responsibility of execution with distribution
channels
Expenses are shared between the company and
intermediaries

SELLING IS A MASTER SKILL

People spend 40% of time in nonsales selling
Knowledge workers are focused on creating,
using, sharing, and applying knowledge