Chapter 1

Introduction to
Sales Management

SALES MANAGEMENT:
SHARPING FUTURE SALES LEADERS
Tanner, Honeycutt, and Erffmeyer,
2e Wesser 2014.

Copyright © 2014 Wesser Publiser

 Objectives
When you finish this chapter, you should understand
why:
Define strategy hierarchy and understand how
sales and marketing strategies affect overall
strategy.
Identify the different types of selling approaches
and selling process.
Describe the sales management process and
responsibilities and activities of sales managers

Copyright © 2013 Pearson Education

Selling career –Pros and Cons.
 Sales starting salaries are
higher than other positions
 Many CEOs get their start in
sales
 Sales managers earn more
than managers in other areas  More pressure, not within the
 Sales jobs predicted to grow company but also from
at a faster rate than other outside.
professions  Unfixed schedule
 Easier to making the social  ….
relationship than other
From Sales Rep to Sales Manager
 Most successful sales reps are eventually
pressured to make the transition to sales
management.
 Super salespeople maybe not a good Sales
manager
• “Manager of people”
• Coaching salespeople
• Developing strategies
• Delegating the responsibility
• Motivating…
• Convincing with other department in the company
• ….
Executive Ladder in Personal Selling

President

Vice president of sales

National sales manager

Regional/divisional sales manager

District sales manager

Staff assistants
Sales supervisor available for advice
and support at any
step along the ladder.
Salesperson
The Strategy Hierarchy
Corporate strategy
encompasses plans and goals
for the entire organization

Corporate
Strategy Marketing strategy
STP strategy.
Marketing mix…
Marketing
Strategy
sales strategy
Sales target for individuals
Sales Strategy
Sales structure, sales outsources
Sales process and approaches
How to motivate salespeople… …. 1-6
 Marketing vs. Sales strategy
 What markets do we serve
Markets
with what products?
 What types of
Relationships
relationships do we form
and with whom?
 What level of investment
Invest will be required, and how
will we locate and allocate
ment
the needed resources?
 What are the detailed
Objectives objectives and action
plans?
 Coaching salespeople so
Coaching they can improve
 Developing strategies and
Deve delegating the
loping responsibility for
implementation to others
 Figuring out how to
Moti
motivate people, some
vating who are older than you
 Convincing others that
Convin what is right for the sales
force is right for their
cing
departments, too
1-7
Selling Process vs. Selling Approach

Selling Approach Selling Process

Transactional Prospecting

Affiliative

Consultative
Closing Presenting

Enterprise

1-8
The Selling process: 8 Steps
 It is more relevant is B2B
business sales where the
sales cycle might take a
longer duration to close.

 In B2C the selling process

may be transient and shorter.

1-9
Selling process
Prospecting
A prospect is a MAD buyer
• the Money to spend
• the Authority to buy
• the Desire to buy it
Leads can be from
• Referrals from customers
• Referrals from internal company
sources
• Referrals from external agencies
• Published directories, Yellow Pages
• Networking by the Salesperson …
Selling process
Pre-approach
salespeople collect all the
information about the prospects:
their needs, financial and overall
situation.
Approach
A good approach makes a
favorable impression and
establishes some degree of
rapport between the salesperson
and the buyer.
Selling process
Need Identification
The stage in which the salesperson must
discover, clarify, and understand the buyer’s
needs.
The best way to uncover and understand needs
is by asking questions.
1
Questioning
2
Identification
3
Pre-commitment
 Selling process

Presentation
Feature
Tips for effective
presentations
o Keep it simple Evidence
o Talk the prospects language
o Stress the application of the
product/service to the
prospects situation
Benefit
o Seek credibility.
FEBA
Agreement
 Presentation of Product, Features, Benefits, Advantages

Product Features Benefits Advantages

Camera Telephoto lens Take pictures Able to capture

from longer images of animals distances.
or people from a distance.
Bicycle Attached water Can hold a water Don’t get dehydrated.
bottle holder bottle. Don’t have to stop
for water. Feel more refreshed.
Drill Press Multiple drill Can change bits Saves time.
bits attached without shutting Saves money. down
the machine.
Motor Oil Rust inhibitor Oil and engine Saves money.
have longer life.
Selling process
Handling Objections
Objections should be welcomed
because they indicate that the
prospect has some interest in the
proposition.

In responding to an objection…

• Listen to the buyer
• Clarify the objection
• Respect the buyer’s concern
• Respond to the objection
Selling process
Closing or Gaining Commitment
Asking the buyer to commit to some action that moves the
sale forward.
• The Assumptive Close
“Now what size do you want?”
• Special Offer Close
“If you buy this product today, we’ll
double the length of the warranty.”
• Summary Close
“You have agreed that our product is
the best on the market. Correct? Then
I suggest that you place your first
order today so we can have it to you
Selling process
Follow-Up
Reps must learn that the sale is not
over when they get the order.
It is much more expensive to
acquire new customers than it is to
retain existing customers.
Ensure that the customer is fully
satisfied
More and more products an be
sold during follow .
Selling Approaches

 Finish sale as quickly and as easily as possible

 Key to success is making as many calls as
Transactional possible to as many people as possible
 For simple products without helps from
Salesperson.

 Based on the friendship between the

salesperson and the individual buyer
Affiliative  the buyer needs a significant amount of
expertise needed from the seller and trust is an
issue
1-19
Selling Approaches

 Identify and solve a client’s problems

Consultative  Also called needs-satisfaction selling or
problem/solution selling

 Business-to-business (B2B) concept

Enterprise  Based on not only person-to-person relationships
but on company-to-company relationships
Sales Manager’s responsibilities

 Devise sales plan to meet strategic objectives

Plan  Develop general strategies that specify sales
approach

 Determine type of sales force

Organize  Create hiring and training policies and strategies

 Communicate and roll out the plan

Implement  Create the right culture
 Choose a compensation model
 Sales and customer satisfaction
Monitor  Salesperson recruitment, selection, training
 Take corrective action as necessary
Sales Management

“I
“I don’t
don’t care
care how
how many
many
degrees
degrees you you have
have on
on the
the
wall,
wall, if
if you
you don’t
don’t know
know how
how
to
to sell,
sell, you’re
you’re probably
probably
going
going toto starve.”
starve.”

Heavyweight boxer George Forman’s

advice to his children
L.A. Times, pg. C2, Tuesday, March 25, 1997
 Group Discussion ( Ex # 1)

1/ Which steps in the selling process is/ are the most

important in
Transactional selling approaches ?
Affiliative selling approaches?
Consultative selling approaches?
2/ in B2B selling process, which step may be the most
difficult ? Why?
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