Sales mgmt

Copyright © 2001 by Harcourt, Inc. All rights reserved.


PART I

INTRODUCTION TO SALES MANAGEMENT


Provide you with an overview of a sales manager’s job.

Introduce you to the various types of sales managers and the skills required of them.

Discuss what a new manager experiences when promoted from a sales job.

LEARNING OBJECTIVES

A career in sales management is exciting and unique and provides numerous opportunities. This chapter will do the following:


WHAT IS SALES MANAGEMENT?

Sales management is the attainment of sales force goals in an effective and efficient manner through:

• Planning

• Staffing

• Training

• Leading

• Controlling organizational resources


FIGURE 1.1 THE SALES MANAGEMENT PROCESS

Sales Management Functions


PLANNING

The conscious, systemic process of making decisions about goals and activities that an individual, group, work unit, or organization will pursue in the future and the use of resources needed to attain them.





STAFFING

Activities undertaken to attract, develop, and maintain effective sales personnel within an organization.





SALES TRAINING

The effort put forth by an employer to provide the salesperson job-related culture, skills, knowledge, and attitudes that result in improved performance in the selling environment.





LEADING

The ability to influence other people toward the attainment of objectives.





CONTROLLING

Monitoring sales personnel’s activities, determining whether the organization is on target toward its goals, and making corrections as necessary.





Sales Management is the attainment of sales goals in an ethical, efficient, and effective manner.*

* Instructor added word ethical.

SALES PERFORMANCE


FIGURE 1.2 THE SYSTEMS VIEW OF AN ORGANIZATION

EXTERNAL ENVIRONMENT


Organization is a social system that is goal directed and has a deliberated structure.

Social means being made up of two or more people.

Deliberated structure means the tasks are divided, and the responsibility for their performance is assigned to organization members.

Goal directed means an organization is designed to achieve some outcome.


Organizational effectiveness is the degree to which the organization achieves a stated objective.

Organizational efficiency refers to the amount of resources used to achieve an organizational goal.

MAJOR PARTS OF AN

ORGANIZATIONAL SYSTEM


T o p Sales L ead ers (Strategic)

F irst- L ine Sales L ead ers (O p eratio nal)

M id d le Sales L ead ers (T actical)

FIGURE 1.3 SALES LEADER LEVELS IN THE ORGANIZATIONAL HIERARCHY

Regional Sales Leader

CEO

President

Vice President of Marketing

National Sales Leader

Zone Sales Leader

District Sales Leader

Assistant District Sales Leader

Nonmanagerial Salespeople

Sales Trainee Salesperson Key Account


P lann in g35%

Staff ing10%

T rain -in g5 %

L ead in g30%

C o ntro llin g20%

P lann in g28%

T rain in g10%

L ead in g30%

C o ntro llin g22%

Staff ing10%

P lann in g15%

T rain in g25%

L ead in g25%

C o ntro lling15%

Staff ing20%

FIGURE 1.4 PERCENTAGE OF TIME SPENT ON FUNCTIONAL ACTIVITIES BY ORGANIZATIONAL LEVEL

Top Managers

Middle Managers

First-Line Managers


Sales Trainee

Salesperson

Key Account Salesperson

District Sales Manager

Regional Sales Manager

Zone Sales Manager

National Sales Mgr.

Vice President of Marketing

President

FIGURE 1.5 A SALES PERSONNEL CAREER PATH


SALES MANAGEMENT SKILLS

1. CONCEPTUAL AND DECISION SKILLS

Refer to the cognitive ability to see the organization as a whole and the relationships among its parts.

2. PEOPLE SKILLS

Involve the ability to work with and through other people and to work effectively as a group member.

3. TECHNICAL SKILLS

The ability to perform a specialized task that involves a certain method or process.


PROMOTION FROM SALESPERSON TO SALES MANAGER

Changes that occur when a person becomes a new manager:

1. Perspectives change

2. Goals change

3. Responsibilities change

4. Satisfaction changes

5. Job skill requirements change

6. Relationships change


FIGURE 1.6 RELATIONSHIP OF CONCEPTUAL AND DECISION, PEOPLE, AND TECHNICAL SKILLS TO SALES LEADER LEVEL

T o p Sales L ead ers

M id d le Sales L ead ers

F irst- L in e Sales L ead ers

N o n m an agerial Salesp eo p le

C o n cep tu al an d D ecisio n Sk ills

P eo p le Sk ills T ech n ical Sk ills


THE PROMOTION EXPERIENCE

Phase One – Immobilization

Phase Two – Minimization or Denial of Change

Phase Three – Depression

Phase Four – Acceptance of Reality

Phase Five – Testing

Phase Six – Searching for Meanings

Phase Seven – Internalization


PROBLEMS NEW MANAGERS EXPERIENCE

• Lack of preparation for the job.

• Expected to step into the job and immediately function effectively.

• Often lacks an immediate peer group.


MAKING A SUCCESSFUL TRANSITION TO MANAGEMENT

• Have a learning attitude – a willingness to learn, change,

adapt, and seek help when needed.

• Having realistic expectations.

• Leave the old job behind.


THE BOTTOM LINE

Skilled sales managers are the key to a successful organization.

Sales managers have five functions that, when combined, can allow them to achieve the goals desired by higher levels of management.

The various types of sales managers can be broken down into the categories of vertical and horizontal.

Most corporations hire a person who cannot only sell but who also shows the potential to one day become a sales manager.

Economy & Finance

Sales mgmt