(Sales) Management by Tactics ™
A supervisory technique used by contemporary
sales management - An overview of its effects
on sales performance
Presented by James D. Roumeliotis
JD Roumeliotis | Prof. G. DiGirolamo
Do Sales Goals Actually Work?
Sales goals can get in the way of a
successful sale, if you spend too much time
thinking about them.
Goals are not a bad thing – it’s what spur you
to take action.
However, primary focus should be on the
action, not on the goal, otherwise, you end up
alienating customers through your pressure
to reach your goals by making the sale.
JD Roumeliotis | Prof. G. DiGirolamo
Focus on the Process/Activities
Things are very different when you
focus primarily on the process of
selling, rather than worrying about
the day-to-day routine of closing
and quotas.
When you focus on the process, you
stop trying to "make the sale."
Because of this, you start building
long-term relationships. Eventually
your customers start bringing you
new business and new
opportunities.
JD Roumeliotis | Prof. G. DiGirolamo
What is (Sales) Management by
Tactics™ (MBT)
Management by Tactics™ is a term which describes
a supervisory technique utilized by sales
management.
It is a process in which sales managers/ directors,
along with salespeople, identify the day-to-day
activities required to achieve sales objectives and
focus their energies in controlling such activities
(input) – rather than simply focusing on results
(output).
JD Roumeliotis | Prof. G. DiGirolamo
What are the advantages of
applying MBT?
Management by Objectives (MBO) focuses
on the outputs (sales results).
On the other hand, salespeople improve their
performance when they focus on tasks
(inputs) rather than sales objectives
(outputs).
I t i s e f f e c t i v e i n s e v e r a l t y p e s o f i n d u s t r i e s
– for both products & services.
E f f e c t i v e i n p e n e t r a t i n g n e w m a r k e t s .
E f f e c t i v e i n s e l l i n g n e w p r o d u c t s t o
existing customers.
JD Roumeliotis | Prof. G. DiGirolamo
RESEARCH STUDY – pretest &
post-test results* (with MBT)
Twenty nine subjects from a sample of four companies
representing different types of industries were selected.
Three
of the companies sold products (tobacco, textbooks
and pharmaceuticals), while the other promoted/sold loan
services.
T h e f i r s t 3 c o m p a n i e s s o l d t o r e t a i l e r s , w h i l e t h e 4 th s o l d
academic textbooks to schools (which in turn sold them to
students).
During this research, sales representatives from all 4
companies worked exclusively with output goals –
namely sales objectives. Data were collected. This stage
of the research was referred to as the “Pre -test”.
* Source: Management By Tactics (MBT): An Investigation of its Effects on Sales Performance, Giovanni Di Girolamo,
Ph.D. (Management), California Coast University, Santa Ana, California, December 2005
JD Roumeliotis | Prof. G. DiGirolamo
Research Study
- Post Test
The researcher then proceeded to implement the
Management by Tactics™ system.
In this phase of the research, the salespeople were
given Input goals, such as the number of
telephone calls to be made, number of prospects to
visit and types of sales presentations etc.
This stage of the research is referred to as the
“Post-test”.
JD Roumeliotis | Prof. G. DiGirolamo
Research Study - Conclusion
Results from all four companies suggest that
there is indeed a relationship between variables:
MBT had a positive impact on Sales Performance.
I n
the absence of applying MBT, all
representatives in the study under achieved
sales objectives between 21% to 75% of their
target.
O n
the other hand, when all reps were given
input goals under the MBT system, the weakest
rep hit 100% of target – while the other two
reached 117% and 118% respectively for a
combined average of 112% of sales targets.
JD Roumeliotis | Prof. G. DiGirolamo
Including the forms used for MBT™
Contact: jdr@affluencemarketing.ca
(Sales) Management
by Tactics™
Copyright 01/2013
James D, Roumeliotis
Prof. Giovanni DiGirilamo