Introduction To Sales Management and Its Evolving Roles

Chapter 1
Introduction to Sales
Management
and Its Evolving Roles
PowerPoint presentation prepared by
Dr. Rajiv Mehta
New Jersey Institute of Technology
Chapter Outline
• What Is Sales
Management?
• Types, Titles, and
Hierarchical Levels of
Sales Managers
• Responsibilities and
Duties of Sales Managers
• Expanding Roles of Sales
Managers Source: Flying Colours Ltd.
• What Qualities Are

Needed to Be a Sales
Manager?
Copyright © Houghton Mifflin Harcourt Publishing Company. All rights reserved. 1|2
Chapter Outline
• Integrating Sales
Management and
Marketing Management
• Monitoring and Adapting
to the Macroenvironment
• How Well Are Sales
Managers Performing?
• Developing Sales
Managers for the New Source: Flying Colours Ltd.
Millennium
Learning Objectives
After reading this chapter, you should be

able to do the following:
1. Summarize the basic responsibilities and evolving roles of
sales management.
2. Demonstrate how sales managers can better integrate
their roles with marketing management.
3. Identify and prepare for megatrends that will affect your
future in sales management.
4. Evaluate the selection criteria for sales management and
compare them to your present and potential qualifications.
5. Analyze how the sales manager’s job is expanding and
what it will mean for your career.
What Is Sales Management?
• Few jobs are more crucial to the ultimate
success of a business than sales management.
• Sales management shapes and determines
nearly all the firm’s interactions with customers.
• Sales managers oversee the sales force—the
direct income producers who determine the
financial health of their organizations.
Definition of sales management
• The American Marketing Association (AMA) defines
sales management as “the planning, direction, and
control of the personal selling activities of a business
unit, including recruiting, selecting, training,
equipping, assigning, routing, supervising, paying
and motivating as these tasks apply to the personal
sales force.” This definition, however, fails to capture
the fast-paced, expanding roles of sales management
in satisfying customers and achieving company
objectives.
Types, Titles, and Hierarchical
Levels of Sales Managers
V.P.
V.P.
sales
sales
National
National
sales
salesmanager
manager
Zone,
Zone,division,
division,oror
regional
regionalsales
salesmanager
manager
District,
District,branch,
branch,oror
field
fieldsales
salesmanager
manager
Sales
Salessupervisor
supervisor
Responsibilities and Duties
of Sales Managers
• Sales managers plan, lead, and control the selling activities of
their organizations.
• They continuously monitor and adjust their marketing
strategies to dynamic technological, competitive, economic,
legal, and cultural factors.
• Sales managers also consider the interests of the company's
stakeholders, such as these:
– employees
– suppliers
– financial community
– media
– stockholders
– special interest groups
– governments
Figure 1.1: Responsibilities and Duties of
Sales Managers: A Conceptual Framework
Changing with the Times
Old Marketing Perspective
marketing marketing’s role
largely viewed primarily to
from the seller create
perspective exchanges
emphasis on satisfaction of
management of individual and
the marketing organizational
mix objectives
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A Formal Definition of Marketing
The new official definition of marketing approved by the AMA
in 2004 appears below.
“Marketing is an organizational function and a set of

processes for creating, communicating, and delivering value
to customers and for managing customer relationships in
ways that benefit the organization and its stakeholders.”
• Marketing is moving from a transaction orientation to a

customer relationship building orientation.
• New AMA definition shifts the perspective more to the

customer side by focusing on delivering value and
managing customer relationships.
Changing with the Times
New Marketing Perspective
moved away from focuses on

a transaction delivering value
orientation Pricing
strategy
to customers
Product Target
Target Place
strategy market
market strategy
focuses on focuses on
building long-term Promotion
managing
customer strategy customer
relationships relationships

Expanding Roles of Sales Managers
Based on the new marketing definition, there are three major implications
for sales managers:
• achieve a continuing • build ongoing relationships
1.
dialogue with and mutually profitable
Manage customer
customers, partnerships with customers,
relationships
• personalize treatment • encourage salespeople to go
of valued customers, beyond selling and serve as
• increase customer consultants and partners.
retention.
What sales
managers must do
3. 2.
Manage the hybrid Serve as customer
sales force work with consultants
• telesalespeople,
• telemarketers,
• e-commerce salespeople,
• direct mailers,
• manufacturers’ agents.
What Qualities Are Needed
to Be a Sales Manager?
1.
Effectively lead and
motivate people
6.
Improve sales force 2.
productivity and Make good decisions
profitability
What a good sales
manager can do
5. 3.
Monitor competitive Solve problems
offerings creatively
4.
Provide outstanding
communication

INTEGRATING SALES MANAGEMENT AND
MARKETING MANAGEMENT
• Sales management is a specialized set of

responsibilities and activities within the larger field of
marketing management. In a broad sense, sales
managers are really marketing managers with the
specific task of managing the sales force.

The Field Sales Force and
Headquarters Marketing Support Team
1.
Advertising
6. 2.
Marketing research Sales promotion
How H.Q. supports

the sales force
5. 3.
Product publicity Sales aids
4.
Trade shows

The Field Sales Force and
Headquarters Marketing Support Team
7.
Marketing and
sales planning
12.
8.
Internet
Forecasting
communications
How H.Q. supports

the sales force
9.
11.
Product planning and
Public relations
development
10.
Market development

Megatrends Affecting
Sales Management
Sales managers must adapt to three major megatrends to
enhance their effectiveness and efficiency:
1. behavioral forces
2. technological forces
3. managerial forces
Source: Flying Colours Ltd

Behavioral Megatrends
Affecting Sales Management
• Buyers’ attitudes, preferences, and behaviors are
changing, necessitating modification of selling strategies
and approaches.
1. Behavioral Forces
• more expert and demanding buyers
• rising customer expectations
• micro-segmentation of domestic markets
• expanding power of giant retailers
• empowerment of customers
• globalization of markets

Technological Megatrends
• Today’s successful sales managers are those who can
make skillful and efficient use of technology to increase
their efficiency and productivity in serving customers.
These include: Forces
2. Technological
• sales force automation

• virtual sales offices
(home, automobile, or
virtually anywhere)
• electronic commerce
Source: Digital Vision

Sales Force Automation
• portable computers
• electronic data interchange
• videoconferencing
• multifunction cell phones and
satellite pagers
• voice mail and e-mail
Source: Digital Vision
• instant messaging
Virtual Sales Offices Electronic Commerce

• Home • Internet:
• Office • blogs, podcasting
• screen-sharing, WebEx
• Virtually anywhere
• Intranet
• Extranet
Using Technology to Sell Better
• Salespeople can
enhance their
productivity by using
telecommunication
tools
– Intranets
– Extranets Source: Triangle Images
– Computers
– Fax machines
– Pages
– Cell phones

Sales force Electronic
automation Technological commerce
megatrends
• portable computers affecting
(notebook, handheld, • Internet
sales -- blogs
and pocket PCs)
management -- podcasting
• electronic data
interchange -- screen-sharing
• videoconferencing -- WebEx
(via desktop, laptop,
or handheld • Extranets
computers) • Intranets
• multi-function cell
phones and satellite
Mobile virtual
pagers
• voice mail, e-mail, sales offices
and instant messaging

Managerial Megatrends
3. Managerial Forces
• efforts to reduce selling costs
• shift to direct marketing
alternatives
• certification of salespeople
• shortage of business-to-
business salespeople
• developments in information
management
Source: Flying Colours Ltd

Managerial Megatrends
Mobile virtual
Shift to direct- sales offices
marketing Developments in
alternatives Information
Management
• direct mail
(catalogs, • database
brochures, and Managerial marketing
sales letters) megatrends • data warehousing
• telemarketing affecting • data mining
• teleselling sales • push technology
• personalized e- management
mail
• kiosks
• facsimile
Professional Selling cost

certification reduction efforts
of salespeople

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Chapter 1

• What Qualities Are

After reading this chapter, you should be

“Marketing is an organizational function and a set of

• Marketing is moving from a transaction orientation to a

• New AMA definition shifts the perspective more to the

moved away from focuses on

Copyright © Houghton Mifflin Harcourt Publishing Company. All rights reserved. 1 | 12

Copyright © Houghton Mifflin Harcourt Publishing Company. All rights reserved. 1 | 14

• Sales management is a specialized set of

Copyright © Houghton Mifflin Harcourt Publishing Company. All rights reserved. 1 | 15

How H.Q. supports

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How H.Q. supports

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Copyright © Houghton Mifflin Harcourt Publishing Company. All rights reserved. 1 | 19

• sales force automation

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Virtual Sales Offices Electronic Commerce

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Source: Flying Colours Ltd

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Professional Selling cost

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