Hair 1e CH 01

Chapter 1
Introduction to Sales
Management
and Its Evolving Roles
PowerPoint presentation prepared by
Dr. Rajiv Mehta
New Jersey Institute of Technology
Chapter Outline
• What Is Sales
Management?
• Types, Titles, and
Hierarchical Levels of
Sales Managers
• Responsibilities and
Duties of Sales Managers
• Expanding Roles of Sales
Managers Source: Flying Colours Ltd.
• What Qualities Are

Needed to Be a Sales
Manager?
Copyright © Houghton Mifflin Harcourt Publishing Company. All rights reserved. 1|2
Chapter Outline
• Integrating Sales
Management and
Marketing Management
• Monitoring and Adapting
to the Macroenvironment
• How Well Are Sales
Managers Performing?
• Developing Sales
Managers for the New Source: Flying Colours Ltd.
Millennium
Learning Objectives
After reading this chapter, you should be

able to do the following:
1. Summarize the basic responsibilities and evolving roles of
sales management.
2. Demonstrate how sales managers can better integrate
their roles with marketing management.
3. Identify and prepare for megatrends that will affect your
future in sales management.
4. Evaluate the selection criteria for sales management and
compare them to your present and potential qualifications.
5. Analyze how the sales manager’s job is expanding and
what it will mean for your career.
What Is Sales Management?
• Few jobs are more crucial to the ultimate
success of a business than sales management.
• Sales management shapes and determines
nearly all the firm’s interactions with customers.
• Sales managers oversee the sales force—the
direct income producers who determine the
financial health of their organizations.
Types, Titles, and Hierarchical
Levels of Sales Managers
V.P.
sales
National
sales manager
Zone, division, or
regional sales manager
District, branch, or
field sales manager
Sales supervisor
Hiring Sales Managers/Leaders
• To see a video on hiring sales
managers/leaders, go to
– http://www.sellingpower.com/video/index.asp?date=1
1/8/2006
• To read the “Top Tips for the Newly Appointed
Sales Manager,” go to
– http://www.cmctraining.org/articles_view.asp?sid=0&
article_id=25
Responsibilities and Duties
of Sales Managers
• Sales managers plan, lead, and control the selling
activities of their organizations.
• They continuously monitor and adjust their marketing
strategies to dynamic technological, competitive,
economic, legal, and cultural factors.
• Sales managers also consider the interests of the
company's stakeholders, such as these:
– employees
– suppliers
– financial community
– media
– stockholders
– special interest groups
– governments
Figure 1.1: Responsibilities and Duties of
Sales Managers: A Conceptual Framework
Twenty-First Century
Sales Force Management
• Chapters 1–4 will help you understand the
following:
– Introduction to Sales Management and Its Evolving
Roles (chapter 1)
– Managing Ethics in a Sales Environment (chapter 2)
– Customer Relationship Management and Building
Partnerships (chapter 3)
– The Selling Process (chapter 4)
Copyright © Houghton Mifflin Harcourt Publishing Company. All rights reserved. 1 | 10

The Definition of Selling
• To see a video on the definition of selling and
the role of the sales manager in managing the
sales management function, go to
2/15/2006

Sales Forecasting and Budgeting
• Sales Forecasting and
Budgeting (chapter 5) shows how
sales managers accomplish the
following:
– estimate market potential for their
industry
– estimate sales potential for their
company
– develop a final sales forecast
• Sales managers employ these skills:
– quantitative sales forecasting
approaches
– qualitative sales forecasting
approaches
• A sales budget is a financial plan of
expenditures needed to accomplish the
organization’s goals and objectives.
Sales Force Planning and Organizing
• Sales Force Planning and

Organizing (chapter 6) provides
guidelines and direction for most other
sales decisions and activities.
• Sales managers need to do the
following:
– set sales goals and objectives
– establish sales policies and procedures Source: Flying Colours Ltd.
– devise sales force strategies and tactics
– implement controls
• Sales managers must determine
these things:
– the optimal number of salespeople to hire
– the best way to structure the sales force
(geographically, by product, by customer
type, or by some combination of these
factors)
Time and Territory Management
• Time and Territory
Management (chapter 7)
helps sales managers
determine which accounts
their salespeople should call
on, when, and how often.
• Sales managers must do
the following:
– design sales territories
– decide individual sales quotas
– design a formal routing pattern
for salespeople to follow in
calling on customers

Recruiting and
Selecting the Sales Force
• Recruiting and Selecting the
Sales Force (chapter 8) deals
with sales managers taking these
actions:
– identifying sources of potential
sales recruits
– devising a system for
measuring candidates against
predetermined job
requirements using numerous
tools and techniques Source: Stockbyte
– deciding whether to select or

reject each applicant

Training the Sales Force
• Training the Sales
Force (chapter 9) deals
with designing programs
to train salespeople.
• Sales managers must
answer several questions:
– Who should receive the
training?
– Who should do the training? Source: Stockbyte
– Where, when, and how

should the training be
accomplished?
– What should be taught?

Sales Force Leadership
• Sales Force Leadership
(chapter 10) is the
emotional process of
exercising psychological,
social, and inspirational
influence on individual
salespeople and the sales
force collectively toward the Source: Flying Colours Ltd.
achievement of organizational
objectives, goals, and values.
• Several different theories,
concepts, and approaches to
effective sales force
leadership are explored.
Sales Force Motivation
• Sales Force
Motivation (chapter 11) deals with
the set of dynamic interpersonal
processes that stimulate the initiation,
direction, intensity, and persistence of
work-related behaviors of salespeople
toward attaining organizational goals and
objectives.
• Three types of theories that can be used
to motivate the sales force:
– content theories of motivation
– process theories of motivation
– reinforcement oriented theories of
motivation
Source: Triangle Images

Sales Force Compensation
• Sales Force Compensation
(chapter 12) deals with all
monetary payments and benefits
used to remunerate and influence
the performance of salespeople.
• Most companies use three main Source: PhotoLink
methods:
– straight salary—a fixed amount of
money at fixed intervals, such as
weekly or monthly
– straight commission—an amount
that varies with results, usually sales
or profits
– combination—a mix of salary and
commission
Sales Volume, Costs,
and Profitability Analysis
• Sales Volume, Costs, and
Profitability Analysis
(chapter 13) is essential to
assure the organization’s
bottom-line goal of improving
profitability.
• Sales managers need to
analyze sales volume, costs,
and profit relationships by
product lines, territories,
customers, and
salespersons as well as
across sales and marketing
functions. Source: Triangle Images

Sales Force Performance Evaluation
• Sales Force Performance

Evaluation (chapter 14)
must be measured and
evaluated to determine
commissions and bonuses
for salespeople and to make
promotion decisions.
• Performance evaluation is
used to do the following:
– improve sales force
productivity
– take corrective actions to
improve organizational
profitability and performance
Source: Triangle Images

Changing with the Times
Old Marketing Perspective
marketing marketing’s role
largely viewed primarily to
Pricing
from the seller create
Strategy
perspective exchanges
Product Target Place

strategy market strategy
Promotion
emphasis on strategy satisfaction of
management of individual and
the marketing organizational
mix objectives
A Formal Definition of Marketing
The new official definition of marketing approved by the AMA
in 2004 appears below.
“Marketing is an organizational function and a set of

processes for creating, communicating, and delivering value
to customers and for managing customer relationships in
ways that benefit the organization and its stakeholders.”
• Marketing is moving from a transaction orientation to a

customer relationship building orientation.
• New AMA definition shifts the perspective more to the

customer side by focusing on delivering value and
managing customer relationships.
Changing with the Times
New Marketing Perspective
moved away from focuses on

a transaction delivering value
orientation Pricing to customers
strategy
Product Target Place

strategy market strategy
focuses on focuses on
building long-term Promotion managing
customer strategy customer
relationships relationships

Expanding Roles of Sales Managers
Based on the new marketing definition, there are three major implications
for sales managers:
• achieve a continuing 1. • build ongoing relationships
dialogue with Manage customer and mutually profitable
customers, relationships partnerships with customers,
• personalize treatment • encourage salespeople to go
of valued customers, beyond selling and serve as
• increase customer consultants and partners.
retention. What sales
managers must do
3. 2.
Manage the hybrid Serve as customer
sales force consultants
work with
• telesalespeople,
• telemarketers,
• e-commerce salespeople,
• direct mailers,
• manufacturers’ agents.
What Qualities Are Needed
to Be a Sales Manager?
1.
Effectively lead and
motivate people
6.
Improve sales force 2.
productivity and Make good decisions
profitability
What a good sales
manager can do
5. 3.
Monitor competitive Solve problems
offerings creatively
4.
Provide outstanding
communication

The Field Sales Force and
Headquarters Marketing Support Team
1.
Advertising
6. 2.
Marketing research Sales promotion
How H.Q. supports

the sales force
5. 3.
Product publicity Sales aids
4.
Trade shows

The Field Sales Force and
Headquarters Marketing Support Team
7.
Marketing and
sales planning
12.
8.
Internet
Forecasting
communications
How H.Q. supports
the sales force
9.
11.
Product planning and
Public relations
development
10.
Market development

Aligning Sales with Marketing
• To see an excellent video on aligning sales with
marketing, go to
1/29/2007

What Marketing Can Learn from Sales
• To learn about what marketing can learn from

the sales department, go to
1/28/2007

Megatrends Affecting
Sales Management
Sales managers must adapt to three major megatrends to
enhance their effectiveness and efficiency:
1. behavioral forces
2. technological forces
3. managerial forces
Source: Flying Colours Ltd

Behavioral Megatrends
Affecting Sales Management
• Buyers’ attitudes, preferences, and behaviors are
changing, necessitating modification of selling strategies
and approaches.
1. Behavioral Forces
• more expert and demanding buyers
• rising customer expectations
• micro-segmentation of domestic markets
• expanding power of giant retailers
• empowerment of customers
• globalization of markets

Technological Megatrends
• Today’s successful sales managers are those who can
make skillful and efficient use of technology to increase
their efficiency and productivity in serving customers.
These include: Forces
2. Technological
• sales force automation

• virtual sales offices
(home, automobile, or
virtually anywhere)
• electronic commerce
Source: Digital Vision

Sales Force Automation
• portable computers
• electronic data interchange
• videoconferencing
• multifunction cell phones and
satellite pagers
• voice mail and e-mail Source: Digital Vision
• instant messaging
Virtual Sales Offices Electronic Commerce
• Home • Internet:
• Office • blogs, podcasting
• screen-sharing, WebEx
• Virtually anywhere
• Intranet
• Extranet
The Use of Technology (Part 1)
• To see a video on the effective use of
technology for generating leads to sell, go to
0/20/2006

The Use of Technology (Part 2)
• To see a video on the effective use of
technology for identifying prospects to sell, go to
0/23/2006

Using Technology to Sell Better
• Salespeople can
enhance their
productivity by using
telecommunication
tools
– Intranets
– Extranets Source: Triangle Images
– Computers
– Fax machines
– Pages
– Cell phones

Using Technology to Sell Better
• For an interesting article on technology-enabled selling,
see
– http://www.computerworld.com/news/1998/story/0,11280,43417,
00.html
• For an interesting article on how technology can build
profitable relationships and deliver increased returns,
see
– http://www.infinityinfo.com/IndustriesTechnology.aspx
• Examples of technologies that salespeople are using
include
– http://www.cingular.com/blackberry8700c_consumer
– http://web.palm.com/promos/treo700w_microsoft.jhtml?cid=ms3
– http://www.pcworld.com/reviews/article/0,aid,123867,00.asp

Sales force Electronic
automation Technological commerce
megatrends
• portable computers affecting
(notebook, handheld, • Internet
sales -- blogs
and pocket PCs)
management -- podcasting
• electronic data
interchange -- screen-sharing
• videoconferencing -- WebEx
(via desktop, laptop,
or handheld • Extranets
computers) • Intranets
• multi-function cell
phones and satellite
pagers
Mobile virtual
• voice mail, e-mail, and sales offices
instant messaging

Managerial Megatrends
3. Managerial Forces
• efforts to reduce selling
costs
• shift to direct marketing
alternatives
• certification of salespeople
• shortage of business-to-
business salespeople
• developments in
information management
Source: Flying Colours Ltd

Mobile virtual
Shift to direct- sales offices
marketing Developments in
alternatives Information
Management
• direct mail
(catalogs, • database
brochures, and Managerial marketing
sales letters) megatrends • data warehousing
• telemarketing affecting • data mining
• teleselling sales • push technology
• personalized e- management
mail
• kiosks
• facsimile
Professional Selling cost

certification reduction efforts
of salespeople

Efforts to Reduce Selling Costs
• Median cost of a business-to-business sales call is more
than $250 (varies widely by industry and company).
• For some large industrial companies, a sales call can
cost $400 to $1,000 or more because of the unusual
complexity of both the selling process and the product
itself.
• To reduce selling costs, many manufacturers and
service providers are aggressively seeking alternatives
to large national sales forces (for example, use of
middlemen, part-time salespeople, and direct-marketing
efforts).

Shift to Direct Marketing Alternatives
• To sell to organizational buyers, several direct marketing
alternatives support or bypass field salespeople:
1. direct mail
2. forms of telemarketing
– teleselling
– kiosks (or computer
salespeople)
– facsimile
– personalized e-mail
Source: © Mark Karrass/Corbis

Certification of Salespeople
• Because of the public’s negativism toward selling, efforts
have been directed at certifying sales personnel.
• Certification usually requires that
a salesperson do these things:
– gains a certain amount of practical
experience
– enrolls in educational seminars and
courses
– passes a sales competency exam
– provides some professional
references
– agrees to comply with a code of
Source: © Mark Karrass/Corbis
conduct
Certification of Salespeople
• For an interesting article on certification of
salespeople, see
– http://www.trainingmag.com/training/headlines/article
_display.jsp?vnu_content_id=1001996079
• Salespeople can attend professional certification
programs offered by firms such as
– http://www.davekahle.com/certification.htm

Information Management Tools
• Sales managers and salespeople can adapt to
megatrends using various information
management tools.
• The four key trends in the management of

information include these:
(1) database marketing
(2) data warehousing
(3) push technology
(4) data mining

1. Database marketing: A database is a large
computerized file of customers’ and potential
customers’ profiles and purchase patterns.
2. Data warehousing: A data warehouse is a very

large, corporate-wide database, built with data
from a number of information systems already in
place in the company.
3. Push technology: Push technology is the latest

iteration of e-mail combined with data
warehousing to discern what your customers
need and exactly when they need it.
4. Data mining: Data mining is the process of

using statistical analysis to detect relevant
patterns or relationships between and among
variables in a database.

Push technology is the Data mining refers to the
latest iteration of e-mail process of using
combined with data statistical analysis to
warehousing to discern detect relevant patterns
what your customers Push or relationships between
need and exactly when technology and among variables in
they need it. a database.
Information
Database Data
management
marketing mining
trends
A data warehouse is a
very large, corporate-
A database is a large Data wide database, built with
computerized file of data from a number of
warehousing
customers’ and potential information systems
customers’ profiles and already in place in the
purchase patterns. company.

How Well Are
Sales Managers Performing?
• Some major reasons why
some sales managers may fail
to perform at higher levels are
these:
– illogical selection of sales
managers
– inadequate sales management
training
– lack of a long-run customer
relationship orientation
– insufficient blending of sales,
marketing, and financial
knowledge
Sales Management Hierarchy:
Skill and Ability Requirements
Administrative and
leadership ability
Vice
president
Managerial of sales
National
ability
sales
manager
Regional
sales
Supervisory manager
District
ability sales
manager
Selling Sales
ability supervisor
Salesperson

Developing Sales Managers
for the New Millennium
• To succeed in the years ahead,
sales managers will need to focus
on the following:
– developing closer relationships
with customers
– treating salespeople as newly
empowered equals
– applying flexible motivational
skills in working with a
multicultural, hybrid sales force
– keeping up-to-date on the latest
technologies
– learning marketing and financial
skills in order to recommend
competitive strategies
– continually seeking ways to
exceed customer expectations

Ethical Situation: What Would You Do?
On a sales call on one of your company’s best

customers, the purchasing agent smilingly tells
your salesperson: “I had a special arrangement
with the salesperson who used to call on me from
your company. Every time I placed an order, the
sales manager arranged a special gift for me. Are
you going to continue that policy?”

Hair 1e CH 01

Caricato da

Informazioni sul documento

Titolo originale

Copyright

Formati disponibili

Condividi questo documento

Condividi o incorpora il documento

Opzioni di condivisione

Hai trovato utile questo documento?

Questo contenuto è inappropriato?

Copyright:

Formati disponibili

Hair 1e CH 01

Caricato da

Copyright:

Formati disponibili

Chapter 1

• What Qualities Are

After reading this chapter, you should be

Copyright © Houghton Mifflin Harcourt Publishing Company. All rights reserved. 1 | 10

Copyright © Houghton Mifflin Harcourt Publishing Company. All rights reserved. 1 | 11

• Sales Force Planning and

Copyright © Houghton Mifflin Harcourt Publishing Company. All rights reserved. 1 | 14

– deciding whether to select or

Copyright © Houghton Mifflin Harcourt Publishing Company. All rights reserved. 1 | 15

– Where, when, and how

Copyright © Houghton Mifflin Harcourt Publishing Company. All rights reserved. 1 | 16

Source: Triangle Images

Copyright © Houghton Mifflin Harcourt Publishing Company. All rights reserved. 1 | 18

Copyright © Houghton Mifflin Harcourt Publishing Company. All rights reserved. 1 | 20

• Sales Force Performance

Copyright © Houghton Mifflin Harcourt Publishing Company. All rights reserved. 1 | 21

Product Target Place

“Marketing is an organizational function and a set of

• Marketing is moving from a transaction orientation to a

• New AMA definition shifts the perspective more to the

moved away from focuses on

Product Target Place

Copyright © Houghton Mifflin Harcourt Publishing Company. All rights reserved. 1 | 24

Copyright © Houghton Mifflin Harcourt Publishing Company. All rights reserved. 1 | 26

How H.Q. supports

Copyright © Houghton Mifflin Harcourt Publishing Company. All rights reserved. 1 | 27

Copyright © Houghton Mifflin Harcourt Publishing Company. All rights reserved. 1 | 28

Copyright © Houghton Mifflin Harcourt Publishing Company. All rights reserved. 1 | 29

• To learn about what marketing can learn from

Copyright © Houghton Mifflin Harcourt Publishing Company. All rights reserved. 1 | 30

Source: Flying Colours Ltd

Copyright © Houghton Mifflin Harcourt Publishing Company. All rights reserved. 1 | 31

Copyright © Houghton Mifflin Harcourt Publishing Company. All rights reserved. 1 | 32

• sales force automation

Copyright © Houghton Mifflin Harcourt Publishing Company. All rights reserved. 1 | 33

Copyright © Houghton Mifflin Harcourt Publishing Company. All rights reserved. 1 | 35

Copyright © Houghton Mifflin Harcourt Publishing Company. All rights reserved. 1 | 36

Copyright © Houghton Mifflin Harcourt Publishing Company. All rights reserved. 1 | 37

Copyright © Houghton Mifflin Harcourt Publishing Company. All rights reserved. 1 | 38

Copyright © Houghton Mifflin Harcourt Publishing Company. All rights reserved. 1 | 39

Copyright © Houghton Mifflin Harcourt Publishing Company. All rights reserved. 1 | 40

Professional Selling cost

Copyright © Houghton Mifflin Harcourt Publishing Company. All rights reserved. 1 | 41

Copyright © Houghton Mifflin Harcourt Publishing Company. All rights reserved. 1 | 42

Source: © Mark Karrass/Corbis

Copyright © Houghton Mifflin Harcourt Publishing Company. All rights reserved. 1 | 43

Copyright © Houghton Mifflin Harcourt Publishing Company. All rights reserved. 1 | 45

• The four key trends in the management of

Copyright © Houghton Mifflin Harcourt Publishing Company. All rights reserved. 1 | 46

2. Data warehousing: A data warehouse is a very

3. Push technology: Push technology is the latest

4. Data mining: Data mining is the process of

Copyright © Houghton Mifflin Harcourt Publishing Company. All rights reserved. 1 | 47

Copyright © Houghton Mifflin Harcourt Publishing Company. All rights reserved. 1 | 48

Copyright © Houghton Mifflin Harcourt Publishing Company. All rights reserved. 1 | 50

Copyright © Houghton Mifflin Harcourt Publishing Company. All rights reserved. 1 | 51

On a sales call on one of your company’s best

Copyright © Houghton Mifflin Harcourt Publishing Company. All rights reserved. 1 | 52

Potrebbero piacerti anche