Chapter Thirteen Sales and Sales Management

8/14/2019 Chapter Thirteen Sales and Sales Management

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Copyright 2006 The McGraw-Hill Companies, Inc. All rights reservedMcGraw-Hill/Irwin

Chapter Thirteen

SALES AND

SALES MANAGEMENT


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THE KEY ROLES OF SALESPEOPLE

1. THE SELLING FUNCTION

2. MANAGE CUSTOMER RELATIONSHIPS

3. GATHER INFORMATION From Customers From Competitors About Market Forces


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DETERMINING THE SALES STRATEGYOPTION TO FIT YOUR CUSTOMER

1. SCRIPT-BASED SELLINGUsed when all customersneeds are similar

2. NEEDS SATISFACTION SELLINGIdentifying buyers

needs and selling to them

3. CONSULTATIVE SELLINGBring specialized expertisefor a customized solution

4. STRATEGIC PARTNER SELLINGSeller-Customerjoint effort for developing product solutions


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STAGES IN RELATIONSHIP BUILDLING

Generate

reorders

Upgrade Full-line

sell

Secure

complete

commitment

from both

companies Manage

change

Limited

relationships Failure to

monitorcompetitors

or industry Complacency

Exploration

Awareness

Commitment

Expansion

Set correctexpectations

Ensure proper

initial use Follow up Make personal

visits Handle

complaints Achieve

customer

satisfaction

Dissolution


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PARTNERSHIP COMMUNICATION:FROM SINGLE LEVEL TO MULTI-LEVEL

Production

Marketing

Accounting

Finance

Purchasing

Department

Shipping

& Receiving

Buying Company

Engineering

Marketing

Credit and

Billing

Finance

Sales

Shipping

& Receiving

Selling Company

Production

Marketing

Accounting

Finance

Purchasing

Department

Shipping

& Receiving

Production

Marketing

Accounting

Finance

Purchasing

Shipping

& Receiving

Buying Company

Engineering

Marketing

Credit & Billing

Finance

Sales Purchasing

Shipping

& Receiving

Selling Company

Before Partnering

After Partnering

Purchasing

AgentSalesperson


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BUYING AND SELLING TEAMS STREAMLINEMULTILEVEL SELLING

Vice President

Of Purchasing

Vice President

Of PurchasingVice President

Of Sales

Vice President

Of Sales

Director of

Purchasing

Director of

PurchasingAccount

Manager

Account

Manager

EngineerEngineerProduct

Specialist

Product

Specialist

Buying Company Selling Company


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CUSTOMER FOCUSED TEAM STRUCTURE

Account

Consultant

F&A Rep.

Customer

Sales Specialists

Account

Manager

Team

Leader

Manufacturing

Finance andAccounting

Other Business

Units

Other

Rep.(s)

Purchasing

Agent

Shipping

CSSRep.

Customer

Support

Service

Purchasing

Shipping

Manager

Sales

SpecialistsProd. / Ind.

Mktg. Groups


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ALLOCATION GRID FOR SALES RESOURCES

Relatively fewer

resources should

be allocated here

Low

Maintain sufficient

resources to continue

to reap the salespotential and strong

position

High

Direct more salesresources here

Assign toalternative method

of communicating,

such as

telemarketing

Weak

Strong

Sales Potential

Market

Position


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DO YOU OUTSOURCE THE SALES FORCE?

YES NO Establish relationships Salary and selling

expenses can

be limited Little/no up-front

investment

Loss of control oversales presentation

Products may not be aselling priority with

representative

TO MAKE IT WORK:INVEST IN TRAINING AND

MERCHANDISING MATERIALS


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SALES FORCE CONTROL MECHANISMS

ESTABLISH QUOTAS Fair and Understandable Activity Quotas

Performance Quotas

ESTABLISH COMPENSATION PLAN Equitable,

Stable, Understandable Straight Salary

Straight Commission

Combination Plans

Bonus System

MOTIVATION ACTIVITIES

Keep Sales Force Producing


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MANAGERS DILEMMA: EVALUATINGPERFORMANCE & MAINTAINING MOTIVATION

1. REVIEW SPECIFIC SALES OBJECTIVES

2. OBTAIN APPROPRIATE PERFORMANCE DATA

(outcomes and effort)3. EVALUATE WHAT WAS BEYOND SALESPERSONS

CONTROL

4. IDENTIFY PROBLEMS AND OPPORTUNITIES

5. CREATE A STRATEGY THAT RESOLVESPROBLEMS AND SEIZES OPPORTUNITIES

5 STEPS TO EVALUATE SALES FORCE PERFORMANCE


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RECOGNIZING AND IDENTIFYING A PROBLEM

Expectations

Enormity of problem rests on length of this difference

Results

PROBLEM RECOGNITIONPROBLEM RECOGNITION

1. Our sales are down: WHY?

2. We cant see customers: WHY?

3. We cant make appointments on time : WHY?

4. We spend too much time covering territory : WHY?5. Our territories are too big : WHY?

6. We dont have enough salespeople : WHY?

THE 6xWHY FILTER Ask the WHY question at least six times(or as many times as necessary)

PROBLEM IDENTIFICATIONPROBLEM IDENTIFICATION

The Problem

CONCLUSION / PROBLEM

We havent matched demand to our sales force.

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Chapter Thirteen Sales and Sales Management