What is Sales Management?
Introduction to Personal Selling
L2
Prepared by: Prof Sameer Kulkarni.
Objectives

Provide an introduction to sales management

Who does a sales manager manage?

Where does sales management fit into the integrated marketing
communication process
The Sales Force

Sales Management- is the attainment of sales force goals in an
effective and efficient manner through planning, staffing, training,
leading, and controlling organizational resources (Futrell1998)

Managing a sales force involves recruiting, hiring, training,
supervising, compensating salespeople, motivating them to become
problem solvers, and providing the proper planning and backup
support so they can perform their jobs properly.
Sales Management
Firm
Personal
Sales
Representatives
Sales
Managers
Value
Customer
Sales Management
Firm
Personal
Sales
Representatives
Sales
Managers
Value
Customer
Sales Management
Sales
Managers

Personal
Sales
Representatives
What are the sales managers goals?





Sales
Revenues
Profits
Market Share
Controlling internal costs
Sales Management
Sales
Managers

Personal
Sales
Representatives
How do they obtain their goals?






Knowledge of the sales environment
Planning for sales
Recruiting the sales force
Training the sales force
Motivating the sales force
Supervising the sales force
Sales Management
Overview
Sales
Environment
Supervising
Planning
Sales
Managers
Personal
Sales Reps
Motivating
Recruiting
Training
Managing
a sales force involves recruiting, hiring, training, supervising,
compensating salespeople, motivating them to become problem solvers, and
providing the proper planning and backup support so they can perform their jobs
properly.
Sales Management
1)
2)
3)
4)
5)
Overview
Sales
Environment
Supervising
Planning
Sales
Managers
Past Present
Sales Environment
International
Organizing
Future
Personal
Sales Reps
Motivating
Recruiting
Training
Managing
a sales force involves recruiting, hiring, training, supervising,
compensating salespeople, motivating them to become problem solvers, and
providing the proper planning and backup support so they can perform their jobs
properly.
Sales Environment

Past (L9)

Industrial Revolution

After WWI the need for mass distribution became evident

1950s and the marketing concept
Sales Environment

Present (L9)

Relational Approach

Current Jobs in Sales

Opportunities in Sales Management
Sales Environment
Organizing the Sales Force (L10)


Organizing- the assignment of tasks, the grouping of task into
departments, and the allocation of resources to departments
(Source: Futrell)

Structure of the sales managers job

Chain of command
(Source: Hite and Johnston)
Sales Environment
The Sales Environment (L11)


Legal Issues








Consumer protection laws
Antitrust laws
Unfair trade practices
Fraud and misrepresentation
Uniform Commercial Code
Direct-to-consumer sales
Antidiscrimination laws
Ethical Issues





Creating ethical corporate structures
Relationships with customers
Relationships with competitors
Relationships with the firm
Relationships with society
(Source: Hite and Johnston)
Sales Environment

International (L12)











Ethnic composition
Religious orientation
Social class environment
Education
Gender bias
Differences in negotiating styles
Differences in decision making
Job status and company protocol
Social aspects
Perceptions of time
Personal relationships
(Source: Hite and Johnston)
Sales Environment

Future (L27)

What does the sales organization of the future look like?
Sales Management
1)
2)
3)
4)
5)
Overview
Sales
Environment
Supervising
Planning
Sales
Managers
Automation
Forecasting
Financial Planning
Quotas
Time and Territory
Personal
Sales Reps
Motivating
Recruiting
Training
Managing
a sales force involves recruiting, hiring, training, supervising,
compensating salespeople, motivating them to become problem solvers, and
providing the proper planning and backup support so they can perform their
jobs properly.
Planning

Planning-is the conscious, systemic process of making decisions
about goals and activities that an individual, group, work unit, or
organization will pursue in the future and the use of resources
needed to attain them
(Source: Futrell)
Planning

Automating the Sales Force (L13)

Hardware


Type of computers, printers, copiers, phones, etc.
Software

What type software does the sales force need?
Planning

Sales Forecasting (L14)

How do we forecast sales?








Sales force composite
Jury of executive opinion
Survey of buyer intentions
Trend projections
Moving averages
Exponential smoothing
Regression
Econometric models
Planning

Financial Planning for Sales (15)

Budgeting






Salespeople expenses
Administrative expenses
Other selling payroll
Other selling expenses
Communication expenses
Profit objectives



Break-even analysis
Controlling the budget
Selling the budget to top management
(Source: Hite and Johnston)
Planning

Quotas (L16)

Sales quota- the specific sales or profit objective a salesperson is expected to
achieve
(Source: Perreault and McCarthy)





Dollar sales
Unit volume
Margin
Selling effort
Product type
(Source: Kotler)

Other types of quotas

Expense quotas

Profit quotas

Activity quotas
(Source: Hite and Johnston)
Planning

Time and Territory Management (L17)

Optimum time must be spent with those prospects with the greatest
potential

Territory management involves:





Identification and classification of prospects
Analysis and development of the salespeople’s work loads
How many salespeople will the territory support
Territory’s boundaries
Optimum way to travel from one prospect to the next
(Source: Hite and Johnston)
Sales Management
Overview
Sales
Environment
Supervising
1) Recruiting
2) Selecting
Planning
Sales
Managers
Personal
Sales Reps
Motivating
Recruiting
Training
Managing
a sales force involves recruiting, hiring, training, supervising,
compensating salespeople, motivating them to become problem solvers, and
providing the proper planning and backup support so they can perform their jobs
properly.
Recruiting

Recruitment- set of activities and processes used to legally obtain a
sufficient number of individuals that takes the people’s and the sales
force’s best interests into consideration
(Source: Futrell)
Recruiting

Recruiting (L18)

The sales manager should recruit individuals whose values and
goals match those of the firm
(Source: Hoffman et al)

Where do you find sales recruits



Other departments
Professional associations
Employment agencies
Recommendations
Armed Forces
Unsolicited applicants
Institutions
Classifieds
(Source: Hite and Johnston)
Recruiting

Selecting (L19)

What is the firm looking for?



People that can sell successfully
Remain with the company over a long period of time
Problems



Legal and ethical restrictions
Firm must maintain a good image
Must have a valid job description
(Source: Hite and Johnston)
Sales Management
Overview
Sales
Environment
Supervising
Planning
Sales
Managers
Personal
Sales Reps
Motivating
Recruiting
2) Developing
current sales
force
Managing
Training
1) New sales force
training
a sales force involves recruiting, hiring, training, supervising,
compensating salespeople, motivating them to become problem solvers, and
providing the proper planning and backup support so they can perform their jobs
properly.
Training

Sales Training- effort put forth by an employer to provide the
salesperson job related culture, skill, knowledge, and attitudes that
result in improved performance in the selling environment
(Source: Futrell)
Training

Training (L20)

What is needed for a training program to work?

Provide a job description

Provide product knowledge

Provide company knowledge

Provide market knowledge

Selling techniques

Why train

Decreased turnover

Increased sales

Enhanced customer relationships

Decreased costs
(Source: Hite and Johnston)
Training

Developing (L21)

Everything changes over time so constant training is needed

When can advanced training techniques be used?
Sales Management
Overview
Sales
Environment
Supervising
Planning
Sales
Managers
Personal
Sales Reps
Motivating
Recruiting
1) Motivating
2) Compensating
3) Indirect Incentives
Managing
Training
a sales force involves recruiting, hiring, training, supervising,
compensating salespeople, motivating them to become problem solvers,
and providing the proper planning and backup support so they can perform their
jobs properly.
Motivating
The most commonly used definitions of salesperson motivation include
three dimensions: (1) intensity, referring to the amount of mental
and physical effort put forth by salespeople, (2) persistence,
describing the salesperson’s choice to expend effort over a period of
time, and (3) direction, implying that salespeople choose where
their efforts will be spent among various activities.
(Source: Ford, Walker, and Churchill)
Motivating

Motivating (L22)

Recognition

Awards

Special communications
(Source: Hite and Johnston)
Motivating

Compensating (L23)

Salary

Commission

Bonus

Combinations
(Source: Hite and Johnston)
Motivating

Indirect Incentives (L24)

Expenses allowances

Sales contests




Themes
Prizes
Advantages
Disadvantages
(Source: Hite and Johnston)
Sales Management
1) Leadership
2) Supervision
3) Evaluating
Overview
Sales
Environment
Supervising
Planning
Sales
Managers
Personal
Sales Reps
Motivating
Recruiting
Training
Managing
a sales force involves recruiting, hiring, training, supervising,
compensating salespeople, motivating them to become problem solvers, and
providing the proper planning and backup support so they can perform their jobs
properly.
Supervising

Leadership (L25)



Leadership- the process of getting things done through others
Leadership Styles
Types of leadership
(Source: Hite and Johnston)

Supervision (L25)

Supervision- the actual oversee and directing of the day-to-day
activities of salespeople
(Source: Futrell)
Supervising

Evaluating (L26)


Analysis of sales volume
Marketing cost analysis
Sales Management
1)Types of Sales People
2) Selling Environments
Overview
Sales
Environment
Sales
Managers
Supervising
Planning
Motivating
Recruiting
Training
Managing
Personal
Sales Reps
3) Prospecting
4) Preapproach
5) Approach
6) Presentation
7) Objections
8) Closing
9) Follow up
a sales force involves recruiting, hiring, training, supervising,
compensating salespeople, motivating them to become problem solvers, and
providing the proper planning and backup support so they can perform their
jobs properly.
Definition

Personal Selling (L4)

Personal Selling- is direct oral communication designed to explain
how an individual’s or firm’s goods, services, or ideas fit the needs of
one or more prospective customers
(Source: Hoffman et al)
The Sales Process
Prospecting/ Qualifying (L5)
Preapproach/ Planning (L6)
Presentation (L7)
Handling Objections (L8)
Closing the Sale (L8)
Follow up
Identifying Needs
Identifying Needs
Approach (L7)
Types of Communication
Marketing
Product
Personal Selling
Public Relations
Place
Promotion
Advertising
Sales Promotion
Direct Marketing
Price
Managing the Marketing Communication Process
Integrated marketing communications (L3)

Integrated marketing communications- the intentional coordination
of every communication from a firm to a target customer to convey a
consistent and complete message
(Source: Hoffman et al)