MKTG473 Ch.1: The Field of Sales Force Management

Number one complaint of sales people
sales people fail to understand the customers’ business
Technology’s impact on sales
– acts as a support role to an in person sales representative
Ex: Microsoft’s use of brand ambassadors at university campuses to persuade peers to go online to buy software later
CRM Program
help sales organizations keep detailed records on all business customers
– information inputted by salespeople, who make regular updates through the sales force automation software on their laptops
– Salespeople often resist having to put in extra time and effort to participate in inputting data into database
Globalization impact on sales
The world is getting smaller and more interconnected
Ex: China opened its doors to Capitalism
Products can be sold to:
(1) Consumers
(2) Manufacturers
(3) Intermediaries
(4) Institutions
Products can be sold for the purpose of:
(1) consumption – used as is
(2) incorporation – integrated into the product being produced
(3) Resale – purchased then resold without being modified
sales management
the management of the personal selling component of an organizations marketing program
outside sales force
a sales force that calls on prospective customers
– can be in either B2B or B2C sales
telemarketing
the telephone is used to contact customers
e-commerce
Internet is used to contact customers
Marketing mix
describes the combination of the four ingredients that constitute the core of a company’s marketing system (product, price, distribution, and promotion)
– when effectively blended, they form a marketing program that provides want-satisfying goods and services to the company’s market
Value-added components
components that augment the product itself, such as information and service
Sales people must develop relationships on
– cooperation
– trust
– commitment
– information
relationship selling
the process by which a firm builds long-term relationships with customers for the purpose of creating mutual competitive advantages
– Retain existing accounts
– become the preferred supplier
– price for profit
– manage each account for long-term profit
– concentrate on high-profit-potential accounts
Transaction selling
salespeople focus on the immediate one-time sale of the product
– Get new accounts
– Get the order
– Cut the price to get the sale
– Manage all accounts to maximize short-term sales
– sell to anyone
Six types of salespeople
(1) Consultative seller
(2) Key account seller
(3) New business seller
(4) Sales support
(5) missionary seller
(6) delivery seller
Consultative seller
uses relationship selling techniques to demonstrate how his or her company’s products will contribute to the customer’s wellbeing or profit
Ex: 3M’s partnership with IBM to increase IBM’s manufacturing process (lead to a closer relationship)
Key account seller
focus on a smaller number of big, important customers
– similar to consultative sellers
– goal is to maintain and penetrate the existing accounts, as opposed to generating new customers
New business seller
focuses on prospecting for customers and generating new accounts
Sales support
support the actual selling done by the reps in other categories
– perform sales promotional activities and work with customers in training and educational capacities
*not responsible for selling the product*

Ex: Sales engineers – product specialists that work with customers to assist with any technical problems

Missionary Sales people
common term used to describe a type of sales support salesperson – work for a manufacturer, calling on customers in order to provide product information and generally promote goodwill about the product
Differentiating factors of a sales job
(1) sales force is largely responsible for implementing the firm’s marketing plan
(2) salespeople are among the few authorized to spend company funds
(3) Salespeople represent their company to customers and to society in general
(4) Salespeople represent the customer to their companies
(5) sales reps operate with little or no direct supervision and require a high degree of motivation
(6) salespeople frequently face rejection
(7) Sales people need more tact and social intelligence than other employees on the same level in the organization
(8) sales jobs frequently require considerable travel and time away from home and family
(9) salespeople have large role sets
(10) sales people face *role ambiguity*, *role conflict*, and *role stress*
role conflict
whereby salespeople feel caught in the middle between the conflicting demands of the people they must satisfy
Role ambiguity
reps are not supervised very closely, so they frequently find themselves in situations where they are uncertain about what to do
Role stress
Due to combination of role conflict and ambiguity as well as added pressures to meet certain expectations
New Dimensions of personal selling
– representatives now engage in a total consultative, non-manipulative selling job
– expected to solve customer’s problems, not just take orders
– salespeople are given autonomy they need to make decisions that affect their own territory’s profitability (salespeople are empowered to act in the best interest of their firms)
Sales management responsibilities
(1) strategic planning
(2) Organizing the sales force
(3) Recruiting, selection, assimilation
(4) Training and development
(5) Motivation and leadership
(6) Performance evaluation
Qualities of a sales manager
– willingness to share information
– structure and discipline in work habits
– an ability to work well in teams or groups
– skill at selling internally
– ego that is not overinflated
Lower-Level Sales executives
sales person

sales supervisor – provides day-to-day supervision, advice, and training for a small number of salespeople in a limited geographical area

district sales manager – manages the activities of sales supervisors or team leaders and also participates in some sales planning and evaluation activities in the district

Middle-level sales executives
Regional/divisional sales manager – responsible for managing several sales districts
Top-level sales executives
National sales manager – heads the companywide sales force operations and is the executive to whom the regional sales managers report

vice president of sales
– reports directly to the vice president of marketing or directly to the president
– responsible for designing the organization’s long run sales strategies and other companywide strategic sales planning activities

Sales force management challenges in the 21st century
(1) Selling be executives
(2) Customer relationship management
(3) Sales force diversity
(4) Complex channels of distribution
(5) An international perspective
(6) Ethical behavior and social responsibility
Selling by executives – 21st century sales challenges
because customers are so demanding, selling firms increasingly rely on their top execs to be involved in the sales process
– customers expect to interact and negotiate with the highest level of the organization

*strategic account management* – using selling teams to manage major accounts

Customer relationship management (CRM) – 21st century sales challenges
Problems often occur with CRM because salespeople do not understand how to participate in the program, nor do they see the benefits
– can be solved through proper training and effective leadership
Sales force diversity – 21st century sales challenges
– Over half of sales workers in the US are now women
– to remain competitive, sales managers need to capitalize on the strengths of everyone in our diverse population
Complex channels of distribution – 21st century sales challenges
Many sales managers will be asked to manage increasingly complex channels of distribution
International perspective – 21st century sales challenges
– Growth for many companies in the coming decades will come from development in international markets
– Companies in the US already face competition from international firms
Ethical Behavior and Social Responsibility
“salespeople are dancing in the spot where there’s the greatest likelihood for unethical behavior”