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Chap013 sales management

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  • 1. McGraw-Hill/Irwin Copyright © 2009 by the McGraw-Hill Companies, Inc. All rights reserved.
  • 2. Chapter 13Sales and Sales Management
  • 3. THE KEY ROLES OF SALESPEOPLE1. THE SELLING FUNCTION2. MANAGE CUSTOMER RELATIONSHIPS3. GATHER INFORMATION • From Customers • From Competitors • About Market Forces 13-3
  • 4. SALES ROLE IN THE ORGANIZATION• MANAGE RELATIONSHIPS • CREATE CUSTOMERS FOR LIFE • PROVIDE CUSTOMER SERVICE • COORDINATE CORPORATE RESOURCES• GATHERING INFORMATION • CUSTOMER DIALOGUE IS USEFUL • OBTAIN COMPETITIVE INFORMATION 13-4
  • 5. DETERMINING THE SALES STRATEGY OPTION TO FIT YOUR CUSTOMER1. SCRIPT-BASED SELLING—Used when all customers’ needs are similar2. NEEDS SATISFACTION SELLING—Identifying buyers’ needs and selling to them3. CONSULTATIVE SELLING—Bring specialized expertise for a customized solution4. STRATEGIC PARTNER SELLING—Seller-Customer joint effort for developing product solutions Exhibit 13-1 13-5
  • 6. STAGES IN RELATIONSHIP BUILDLING Commitment Expansion • Secure complete commitment Exploration • Generate from both reorders companies DissolutionAwareness • Set correct • Upgrade • Manage expectations • Full-line change • Ensure proper sell initial use • Limited • Follow up relationships • Make personal • Failure to visits monitor • Handle competitors complaints or industry • Achieve • Complacency customer satisfaction Exhibit 13-2 13-6
  • 7. PARTNERSHIP COMMUNICATION: FROM SINGLE LEVEL TO MULTI-LEVELBuying Company BEFORE Selling Company Production PARTNERING Engineering Marketing Marketing Purchasing Sales Department Finance Finance Purchasing Credit and Accounting Salesperson Agent AFTER Billing Shipping Shipping & Receiving PARTNERING & Receiving Buying Company Selling Company Production Engineering Marketing Marketing Purchasing Sales Purchasing Finance Finance Accounting Credit & Billing Shipping Shipping & Receiving & Receiving Exhibit 13-4 13-7
  • 8. SALES ORGANIZATION OPTIONS1. ORGANIZE GEOGRAPHICALLY USING CITIES, STATES, COUNTRIES, ZIP CODES, BY ACCOUNT2. ORGANIZE BY PRODUCT AND DEVELOP SPECIALISTS FOR EACH PRODUCT CATEGORY3. USE SALES TEAMS TO DEVELOP AND KEEP NEW BUSINESS. 13-8
  • 9. BUYING AND SELLING TEAMSSTREAMLINE MULTILEVEL SELLINGBuying Company Selling Company Vice President Vice President Of Purchasing Of Sales Director of Account Purchasing Manager Product Engineer Specialist Exhibit 13-5 13-9
  • 10. CUSTOMER FOCUSED TEAM STRUCTURE Sales Specialists Manufacturing Account Customer Manager Account Support Team Consultant CSS Leader Finance and Service Rep. F&A Rep. Accounting Customer Sales Shipping Manager Specialists Prod. / Ind.Shipping Purchasing Other Mktg. Groups Agent Rep.(s) Purchasing Other Business Units Exhibit 13-7 13-10
  • 11. ALLOCATION GRID FOR SALES RESOURCES MARKET LIFETIME VALUE Low High Relatively fewer Maintain sufficient Strong resources should resources to continueRELATIVE be allocated here to reap the salesPOSITION potential and strong position Assign to Direct more sales alternative method resources here Weak of communicating, such as telemarketing Exhibit 13-8 13-11
  • 12. DO YOU OUTSOURCE THE SALES FORCE? YES NO• Establish relationships • Loss of control over• Salary and selling sales presentation expenses can be limited • Products may not be a• Little/no up-front selling priority with investment representative TO MAKE IT WORK: INVEST IN TRAINING AND MERCHANDISING MATERIALS 13-12
  • 13. 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 13-13
  • 14. MANAGER’S DILEMMA: EVALUATINGPERFORMANCE & MAINTAINING MOTIVATION5 STEPS TO EVALUATE SALES FORCE PERFORMANCE 1. REVIEW SPECIFIC SALES OBJECTIVES 2. OBTAIN APPROPRIATE PERFORMANCE DATA (outcomes and effort) 3. EVALUATE WHAT WAS BEYOND SALESPERSON’S CONTROL 4. IDENTIFY PROBLEMS AND OPPORTUNITIES 5. CREATE A STRATEGY THAT RESOLVES PROBLEMS AND SEIZES OPPORTUNITIES Exhibit 13-11 13-14
  • 15. RECOGNIZING AND IDENTIFYING A PROBLEM PROBLEM RECOGNITION “The Problem” Expectations Results Enormity of problem rests on length of this difference PROBLEM IDENTIFICATION THE 6xWHY FILTER Ask the WHY question at least six times (or as many times as necessary) 1. Our sales are down: WHY? 2. We can’t see customers: WHY? 3. We can’t make appointments on time : WHY? 4. We spend too much time covering territory : WHY? 5. Our territories are too big : WHY? 6. We don’t have enough salespeople : WHY? CONCLUSION / PROBLEM We haven’t matched demand to our sales force. 13-15