Chapter 1 slides

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Chapter 1
The Field of
Sales Force
Management
Management is the art of getting
things done through people.
Theodore Roosevelt
McGraw-Hill/Irwin
Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved.
( Figure 1-1)
Top Five Customer Complaints
About Salespeople
Percent of Customers with Complaint
17%
Does not understand our business
15%
Inadequate product knowledge
13%
Does not respond to our needs
12%
Does not listen to our needs
11%
Should be more of our advocate
0%
5%
10%
15%
20%
Source: The HR Chally Group, Ten Year Research Report, 2002.
1-2
( Figure 1-2)
Types of Outside Sales Forces
Product
Sold for
Purpose
of:
↓
Consumption
Incorporation
Resale
To Businesses That Are
To Consumers
Manufacturers
Intermediaries
Institutions
Avon selling
lipstick to women
consumers
Xerox selling a
photocopier to
office staff of Eli
Lilly Pharmaceuticals
Maintenance
company
selling snow
plowing
service to
grocery store
3M selling
overhead
projectors to a
local school
district
n.a.
Owens Illinois
selling custom-fit
windshields to Ford
for its Mustang
n.a.
n.a.
n.a.
Goodyear
selling tires to
Tire America
Florist selling
dried flowers to
hospital gift shop
n.a.
1-3
The Nature of Personal Selling
Transaction
Selling
– Get new accounts
– Get the order
– Cut the price to get the
sale
– Manage all accounts to
maximize short-term
sales
– Sell to anyone
Relationship
Selling
– Retain existing
accounts
– Become the preferred
supplier
– Price for profit
– Manage each account
for long-term profit
– Concentrate on highprofit-potential
accounts
1-4
6 Categories of Sales Jobs
 Consultative
 Key
seller
account seller
 New
business seller
 Sales
support
 Missionary
 Delivery
seller
seller
1-5
(Figure 1-3)
Selected Activities of Salespeople
Salesperson
Generate sales:
• Precall planning
• Prospecting
• Make sales
presentations
• Overcome objections
• Close by asking for the
orders
• Arrange for delivery
• Entertain
• Arrange for
credit/financing
• Collect payments
• Participate in trade
shows
Provide service
to customers:
• Provide
management/technic
al consulting
• Oversee installations
and repairs
• Check inventory
levels
• Stock shelves
• Provide
merchandising
assistance:
• Co-op advertising,
point-of-purchase
displays, brochures
• Oversee product and
equipment testing
• Train wholesalers’
and retailers’
salespeople
Territory
management:
• Gather and analyze
information on
customers,
competitors’ general
market developments
• Disseminate
information to
appropriate personnel
within salesperson’s
company
Professional
development:
Company service:
Participate in:
• Train new
salespeople
• Sales meetings
• Perform civic duties
• Professional
associations
• Training programs
• Develop sales
strategies and plans,
forecasts, and
budgets.
1-6
Sales jobs differ from other jobs because
salespeople…

implement a firm’s marketing strategies in the field.

are authorized to spend company funds.

represent their company to customers and to society in general.

represent the customer to their companies.

operate with little or no direct supervision and require a high degree
of motivation.

frequently face rejection.

need more tact and social intelligence.

travel extensively, which takes time from home and family.

have large role sets.

face role ambiguity, role conflict, and role stress.
1-7
(Figure 1-5)
Sales Management Responsibilities
Strategic
planning
Organizing
the sales
force
Performance
evaluation
Communication
Coordination
Motivation
and
supervision
Integration
Recruiting,
selection,
assimilation
Training and
development
1-8
(Figure 1-6)
Executive Ladder in Personal Selling
President
Vice president of sales
National sales manager
Regional/divisional sales manager
District sales manager
Sales supervisor
Salesperson
Staff assistants
available for advice
and support at any
step along the ladder.
1-9
(Figure 1-7)
Executive Ladder in Team Selling
President
Vice president of marketing
Distribution
logistics
specialist
Client-team
leader
Product
engineer
Customer
sales/service
representative
1-10
Sales Force Management
Challenges in the 21st Century
 Selling
by executives
 Customer
 Sales
force diversity
 Complex
 An
relationship management (CRM)
channels of distribution
international perspective
 Ethical
behavior and social responsibility
1-11
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