Sales Management: Chapter 1

Personal selling
Direct communication between paid representatives and prospects that lead to transactions, customer satisfaction, account development, and profitable relationships. (p 3)
Personal selling is
critical to the sale of many goods and services, especially major commercial and industrial products and consumer durables. (p 3)
Sales Manager
The person responsible for management of the field sales operation. (p 4)
Sales Management
The planning, organizing, leading, and controlling of personal contact programs designed to achieve the sales and profit objectives of the firm. (p 4)
Solutions Selling Model
Involves creating customer value by addressing important customer problems and opportunities through a supplier-customer relationship that is much more intimate than the traditional transactional selling.(p 7)
Transactional Selling Model
emphasized selling products in the short term. (p 7)
Sales Force Automation (SFA)
Automating the routine sales activities through systems such a sales configuration system. (p 18)
Customer Relationship Management (CRM)
A management philosophy according to which a company’s goals can be best achieved through identification and satisfaction of the customers’ stated and unstated needs and wants. (p 18)
career paths
how someone moves into their position of sales manager and what are the opportunities for advancement (p 19)
Globalization
The worldwide movement toward economic, financial, trade, and communications integration. (p 5)
Sales teams
a team of salespeople used more frequently in the evolution into a relational sales orientation (p 8)
The Marketing Mix consists of:
Products, prices, promotions, distribution (place), advertising, public relations, personal selling, sales promotion, and the internet. (p 3)
Sales Management is apart of
Personal Selling. (p 3)
Sales Management consists of:
Planning.
Budgeting.
Recruiting and selecting.
Training.
Motivating.
Compensating.
Designing territories.
Evaluating performance. (p 3)
it is the job of a salesperson to
uncover the special needs of the customer. (p 3)
Responsibilities of the Sales Manager:
Achieving or exceeding performance goals for the current period.
Developing the people reporting to them. (p 4)
Forces that impact the Selling Process:
Competition and Customers. (p 4)
Components of Competition:
Global competition.
Shorter production cycles.
Proliferation. (p 4)
Shorter Production Cycles
Developments in technology have led to an increase of the rate in technology transfer and improvement. Sales and customer relationship skills are most important when a product is new and again when it is late in its life cycle. (p 5)
New products need
careful presentation because a buyer’s risk is highest owing to lack of experience with the product. The sales force’s task is to help customers understand the benefits of the new product outweigh the risks and costs associated with it. (p 5)
The sales forces are constantly
balancing competing and changing sales priorities. (p 5)
CSO stands for
Chief Sales Officers. (p 5)
CSOs know that
their companies’ growth is likely to depend on how well they manage customer relationships in global markets. (p 5)
Having to manage customer relationships in global markets means
more traveling, hiring the right people, defining new roles and duties, and developing a global perspective, and a world-class skills at addressing an increasingly eclectic sales force. (p 5)
The Proliferation Challenge
Recent advances in technology, information, communications, and distribution have created an explosion of new sales and service channels, media, products, and brands. (p 5)
Components of the Customers force are:
Fewer suppliers.
Rising expectations.
Increasing power. (p 5)
Fewer Suppliers
Businesses are choosing to reduce how many suppliers they get their materials from, hurting non-“in” suppliers. Survival is becoming dependent on maintaining the supplier-customer relationship. (p 6)
Rising Expectations
Customers are having increased expectations due to the standards set by other businesses and hold other businesses to that standard. (p 6)
Increasing Power
Many retail stores have become powerful than their manufacturers and now dictate the supplier-customer relationship. This requires accounts to make joint decisions. (p 7)
The Components of the Selling Process
Solutions Selling.
Sales Teams.
Sales Networks.
Productivity Metrics. (p 4)
Sales Networks
The more contacts you have, the more leads you generate, and ultimately more sales you’ll make. (p 9)
The Sales Management Process
Focusing on the Big Picture.
Roles of the Sales Force.
Structuring the Sales Force.
Building Sales Competencies.
Leading the Sales Force. (p 10-12)
Focusing on the Big Picture
The relationship between business strategy, a firm’s marketing strategy, and a firm’s strategic sales force program. (p 11)
Roles of the Sales Force
Strategic plans are implemented through the activities and behaviors of the sales force. (p 11)
Key Sales Force Behaviors
Calling on certain types of customers and prospects.
Managing customer relationships.
Creating value for individual customers. (p 11)
Structuring the Sales Force
To meet customer needs efficiently and effectively and to sell the firm’s products and services, a sales force must be well organized. (p 11)
Sales force structure decisions influence
how customers see the firm because sales force structure will affect selling skills and knowledge level require of sales people. (p 11)
Building Sales Competencies
Sales managers are responsible for hiring salespeople with the appropriate skills and backgrounds to implement the sales strategy. They are also responsible that the competency training is completed. (p 11)
Leading the Sales Force
Effective sales managers know how to supervise and lead their salespeople. They provide the leadership by inspiring people to grow and develop professionally, while achieving the revenue goals of the firm. (p 12)
Sales managers are also expected to
lead by example by encouraging ethical behavior within the sales force. (p 12)
The final step in the sales management process is to
evaluate the performance of the sales force and develop the skills of their people. This involves analyzing sales data by account, territory, and product line breakdowns, reviewing selling costs, and measuring the impact of sales force activities on profits. (p 12)
The Sales Management Competencies
Strategic Action.
Coaching.
Team-building.
Self-management.
Global perspective.
Technology. (p 12)
Strategic Action Competency
Understanding the overall strategy and goals of the company and ensuring that your actions and those of the people you manage are consistent with these goals. (p 13)
Strategic Action Competency Includes:
Understanding the industry.
Understanding the organization.
Taking strategic actions. (p 13)
Coaching Competency
A sequence of conversations and activities that provide ongoing feedback and encouragement to a salesperson or sales team member with the goal of improving that person’s performance. (p 14)
Coaching competency includes:
Providing verbal feedback.
Role modeling.
Building trust. (p 14)
Team-Building Competency
Accomplishing tasks through small groups of people who are collectively responsible with interdependent work. (p 15)
Team-building competency requires:
effectively designed teams.
a supportive environment.
appropriately managed team dynamics. (p 15)
Self-management competency
Taking responsibility for your actions a work and elsewhere.
Self-management competency includes:
Integrity and ethical conduct.
Managing personal drive.
Self-awareness and development. (p 15)
Global Perspective Competency
drawing on human, financial, information, and material resources from multiple countries and serving customers who span multiple cultures. (p 17)
Global Perspective competency is reflected in:
cultural knowledge and sensitivity.
Global selling programs. (p 17)
Technology competency
understanding the potential for technology to improve sales force efficiency and effectiveness and knowing how to implement integration of technology into the sales force. (p 18)
Technology competency includes:
Understanding the productivity potential of new technology.
Implementing Sales Force Automation. (SFA)
Implementing customer relationship management. (CRM) (p 18)