Sales Management: Shaping Future Sales Leaders

Introduction to
Sales Management
Lecture 1

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Lectures
1. Introduction to Sales Management
2. Sales Function & Sales Leadership
3. B2B Sales & CRM
4. Sales Force Organization
(Group Assignment Briefing)
5. Setting Sales Goals
6. Motivating & Rewarding Sales People
(Individual Assignment Briefing)
7. Forecasting Methods
8. Access Performance of Sales Force
9. Sales Force Culture
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© 2015 by Pearson Education
Tutorials
▪ 3 tutorial sessions:
i. Tutorial 1: Discussion on Individual and Group
Assignment
ii. Tutorial 2: Individual and Group Assignment
Presentation
iii. Tutorial 3: Exam Revision
▪ Focus on Assessments
▪ Ask/clarify any questions/doubts

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© 2015 by Pearson Education
Lecture 1: Learning Objectives
▪ Define strategy hierarchy and understand how
sales and marketing strategies affect overall
strategy
▪ Identify different types of selling strategies and
how the selling process varies
▪ Describe the sales management process and
responsibilities and activities of sales managers

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Managing Sales Force Is Important
▪ Sales positions are hardest to fill
▪ Sales consumes >20% of a firm’s revenue

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$$$
▪ Sales starting salaries are ~20% higher than
other marketing positions
▪ Many CEOs get their start in sales
▪ Sales managers earn more than managers in
other areas
▪ Sales jobs predicted to grow at a faster rate than
other professions

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From Sales Rep to Sales Manager
▪ “Manager of people”
▪ Sales success is poor predictor
of success as sales manager
▪ Most successful sales reps are
eventually pressured to make
the transition to sales mgmt
“This is a decision that must be
carefully analyzed because it’s not
an easy transition to go from being
a player to a coach.”

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 Top salespeople understand
they must learn to
feel comfortable doing the uncomfortable

▪ https://www.youtube.com/watch?v=JfIKzReNDF4

▪ https://www.youtube.com/watch?v=8snbL_kVmX
w
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What Being a Sales Manager Means

Coach ▪ Coaching salespeople so they can improve

▪ Figuring out how to motivate people, some who

Motivator are older than you

▪ Developing strategies and delegating the

Strategist responsibility for implementation to others

▪ Convincing others that what is right for the sales

Salesperson force is right for their departments, too

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Sales Executive vs.
Sales Manager Duties
Activity Sales Executive Sales Manager
Set overall sales targets for Set quotas for each
Plan each product salesperson for each product

Decide what type of people to Interview and hire specific

Organize hire for sales positions people for sales positions

Identify each person’s

Determine the compensation motivators and find ways to
Implement plan reward good performance for
each person

Track sales by region; take Observe each salesperson’s

corrective action such as actions in the field and offer
Monitor additional training if sales are suggestions for their
too low improvement

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Establishing the Parameters of the
Firm’s Strategy: The Mission Statement
▪ Inspire the members of an organization
▪ Give purpose to their actions
▪ Guide their decision-making
▪ Serve as a standard against which decisions
can be weighed
▪ Once the mission’s objectives are set, strategy
can be created

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Sample Mission Statements
▪ Everything we do is inspired by our
enduring mission:
▪ Coca-Cola ▪ To Refresh the World . . . in body, mind, and spirit
▪ To Inspire Moments of Optimism . . . through our
brands and our actions
▪ To Create Value and Make a Difference . . .
everywhere we engage

▪ The mission of Southwest Airlines is

dedication to the highest quality of
▪ Southwest Customer Service delivered with a sense of
Airlines warmth, friendliness, individual pride, and
Company Spirit

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The Strategy Hierarchy
▪ Corporate strategy encompasses plans and
goals for the entire organization
▪ Address questions such as what markets and
sourcing options company should engage
▪ Ex: hire sales force vs. use distributors
▪ Ex: outsource and focus internally on marketing
▪ Business units create their plans to support
corporate strategy

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The Strategy Hierarchy

Corporate
Strategy

Marketing Strategy

Sales Strategy

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Personal selling (sales) is part of
the marketing communications mix

▪ Advertising
▪ Sales promotion
▪ Direct marketing
▪ Interactive marketing
▪ Public relations
▪ Personal selling

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Creating a Marketing Strategy

Markets ▪ What markets do we serve with what products?

▪ What types of relationships do we form and with

Relationships whom?

▪ What level of investment will be required, and

Investment how will we locate and allocate the needed
resources?

▪ What are the detailed objectives and action

Objectives plans?

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What Markets Do We Serve with
What Products?
▪ Find a sustainable
competitive advantage
▪ Need expertise,
technology or a patent

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Product-Market Grid

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What Types of Relationships Do We
Form and with Whom?
▪ Strategic plan considers network of
relationships
▪ Investors, potential investors, bankers
▪ Suppliers
▪ Personnel sources
▪ Regulatory agencies
▪ Relationship with customers is most
important
▪ A service advantage is often a
function of the quality of relationships
▪ Customers’ lifetime value is worth
more than the average single
purchase

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Customer Relationship Management
(CRM): Key Terms
▪ CRM: identifying and grouping customers to best
acquire, retain, and grow customers
▪ Sales and marketing teams are responsible for CRM
▪ Customer acquisition strategy: plan to obtain
new customers
▪ Customer retention strategy: plan designed to
keep customers
▪ Growth strategy: plan designed to increase
sales to the same customers

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Why Customer Relationship
Management (CRM) is important?

80%
Sales Revenues

20%
Customers

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What Are the Detailed Objectives and
Action Plans?
▪ SMART format for establishing objectives

S pecific
Measurable
A chievable, yet challenging
R ealistic
T ime-based

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Selling Approaches
▪ Finish sale as quickly and as easily as possible
Transactional ▪ Key to success is making as many calls as
possible to as many people as possible

▪ Based on the friendship between the salesperson

Affiliative and the individual buyer

▪ Identify and solve a client’s problems

Problem Solving
▪ Also called needs-satisfaction selling or
or Consultative problem/solution selling

▪ Business-to-business (B2B) concept

Enterprise ▪ Based on not only person-to-person relationships
but on company-to-company relationships

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The Selling Approach: 8 Steps

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Buyer Behaviour

▪ Elements of Information Processing

Personality Perception

Internal
information
Attitudes processing Learning

Environmental
influence
 Environmental influences on buyer
information processing
Environmental influences on buyer information processing

Sub

Fill: Marketing Communications, 5th Edition, ©Pearson Education Limited 2009

Prospecting
▪ Prospecting involves identifying potential
customers for a particular product or service
▪ A prospect is a MAD buyer
▪ the Money to spend
▪ the Authority to buy
▪ the Desire to buy it

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Pre-Approach
▪ During Pre-Approach, the salesperson tries to
learn everything he can about the account
▪ Can take a significant amount of time

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Approach
▪ Approach: salesperson asks buyer to commit to
a meeting
▪ Opening statement must get buyer’s attention

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Needs Identification
▪ Needs identification: salesperson confirms
prospect is MAD (Money, Authority, Desire)
▪ Comprised of 3 elements

1
Questioning
2
Identification
3
Pre-commitment

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Presentation
▪ Presentation: salesperson describes product
and how it meets buyer’s needs

Feature Evidence

Benefit Agreement

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Handling Objections
▪ Objections: reasons a buyer offers to not buy
your product
▪ Can occur at any time
▪ Salesperson should find out root
of concern and resolve it

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Closing the Sale
▪ Close: when salesperson asks buyer for the sale
▪ Good close
▪ Reinforce decision to buy
▪ Confirm implementation schedule
▪ Thank the buyer
▪ Ask for referral

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Implementation/Follow-Up
▪ Follow-Up: After delivery, ensure that the
customer has good experience with product
▪ Training, service, policies and procedures

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Selling Process vs. Selling Approach
Selling Approach Selling Process

Transactional Prospecting

Affiliative

Consultative
Closing Presenting

Enterprise

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Sales Leaders

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Sales Executive

▪ Devise sales plan to meet strategic objectives

Plan ▪ Develop general strategies that specify sales
approach

▪ Determine type of sales force

Organize ▪ Create hiring and training policies and strategies

▪ Communicate and roll out the plan

Implement ▪ Create the right culture
▪ Choose a compensation model
▪ Sales and customer satisfaction
Monitor ▪ Salesperson recruitment, selection, training
▪ Take corrective action as necessary

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Field Sales Manager
▪ Plans, organizes, implements, and monitors for
specific sales team
▪ Salespeople report to Field Sales Manager
▪ Primary responsibility is sales quota
▪ Responsible for training and motivating
salespeople

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Ethics in Sales Management:
Maintaining NCR’s Ethical Sales Culture

We … recognize that selling

only works when everything is
right for the customer—when
we deliver value
—Rick Makos
President, NCR-Canada

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