11 Sales Management and Sales 2.0 Learning Objectives L 1 Discuss the key considerations in developing and implementing effective sales strategies. L 2 Understand the recruitment, selection, and training processes involved in developing the salesforce. L 3 Identify key activities in directing the salesforce by leading, managing, supervising, motivating, and rewarding salespeople. 11 Learning Objectives L 4 Explain the different methods for evaluating the performance and effectiveness of sales organizations and individual salespeople. L 5 Describe how sales organization are using Sales 2.0 to co-create value with customers. 11 Sales Management Process Defining the Strategic Role of the Selling Function Developing the Salesforce Directing the Salesforce Determining Salesforce Effectiveness and Performance 11 Sales Management Process • ______________________________________ – Salesforce structure – Sales strategies • _________________the Salesforce – Recruiting and selecting sales talent – Establishing training strategies/programs • _________________ the Salesforce – Setting salesforce goals and objectives – Implementing incentive programs – Overseeing and coaching salesforce • Determining Salesforce _______________ and _______________ – Establishing and administering evaluation measures & systems – Providing feedback for future development 11 Sales Management Positions (Example) Vice President of Sales Regional Sales Manager Regional Sales Manager Field Sales Manager Field Sales Manager Field Sales Manager Field Sales Manager 11 Sales Management Best Practices • ________ a customer-driven culture throughout the sales organization and firm. • Recruit and _______________sales talent. • __________________the right skill set. • Focus on key strategic issues by segmenting accounts in meaningful ways and providing differentiated offering to find, win, and retain customers. 11 Sales Management Best Practices • Implement formal sales and relationship-building processes. • ___________________________________ to learn about customers. • ______________________________________, especially marketing. 11 Developing and Implementing Effective Sales Strategies ________ ________ ________ Classification of accounts into categories _________ _________ Type of relationship sought for each category _________ _________ Develop selling approach for each type or relationship 11 Developing and Implementing Effective Sales Strategies ______________– Involves the planning of sales messages and interactions with customers. Selling strategy can be defined and executed at three levels. Customer Individual Customer Groups of Customers Individual Customer Encounters Customer Encounters Customer Encounters Customer Encounters 11 Selling and Relationship Strategies 11 Sales Channel Strategy Determination of ___________________ _________________when executing the sales effort. Options include a company salesforce (individual or teams), industrial distributors, independent representatives, internet, telemarketing, and so forth. 11 Sales Structure Issues Specialization • The degree to which each salesperson could perform all the selling tasks. Centralization • The degree to which authority and responsibility are placed at higher management levels. Span of Control • The number of individuals who report to each sales manager 11 Staff vs. Line Positions 11 Sales Organization Alternatives 11 Recruiting and Selecting Sales Talent 11 Recruitment and Selection Process – Planning – 11 Recruitment and Selection Process – Locating – • Career/Job Fairs • College Career Centers • On-line Career Sites (e.g., Monster.com and Careerbuilder.com) • Internal (e.g., employee referral) • Employment Agencies 11 Recruitment and Selection Process – Evaluating – • __________ Screening • Interviews • ___________ – Role Plays – Written Questionnaires – Ride-Alongs • Background Checks 11 Sales Training Process 11 Ethical Dilemma 11 Directing the Salesforce 11 Directing the Salesforce 11 Directing the Salesforce 11 Directing the Salesforce 11 The Role of Power _________ • Don’t be reluctant to use any form of power. _________ • Be careful not to overuse the power of position or punishment. _________ • Avoid rewarding all desired job outcomes or behaviors. _________ • Enhance power through learning and establishing a good working relationship with subordinates. _________ 11 Communication and Coaching • • • • • • Coaching: Focus on continual development of salespeople through provision of feedback and serving as a role model. ______________________________. Seek feedback. Use persuasion and promises. Establish a team approach. ________________________________. Ensure salespeople diagnose success as well as failures. • _________________ _________________. • Follow-up on coaching sessions. • ___________________. 11 Ethical Dilemma 11 Determining Salesforce Effectiveness and Performance 11 Sales organization structure, strategies, deployment, management, and uncontrollable environmental influences also impact sales organization effectiveness. Evaluating Sales Organization Effectiveness 11 Evaluating Sales Organization Effectiveness 11 Evaluating Sales Organization Effectiveness 11 Evaluating Salesperson Performance 11 Criteria for Evaluating Salesperson Performance 11 _________________________ Evaluation of the activities salespeople perform in the generation of sales and in completing non-selling responsibilities (e.g., training, product demonstrations, sales calls, etc.). Evaluation Methods Should Possess: • Reliability • Validity • Standardization • Practicality • Comparability • Discriminability • Usefulness _________________________ Evaluation of the actual sales results salespeople achieve (e.g., sales quota, market share gain, etc.). Sales 2.0 The use of customer-driven processes enabled by the latest Web technology to co-create value with customers. CRM Social Networking Cloud Computing 11 Sales 2.0 11 Role Play 11