Chapter 1

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Chapter 1

  1. 2. P ART I I NTRODUCTION TO S ALES M ANAGEMENT
  2. 3. C HAPTER 1 S ALES M ANAGEMENT: I TS N ATURE, R EWARDS, AND R ESPONSIBILITIES
  3. 4. <ul><li>Provide you with an overview of a sales manager’s job. </li></ul><ul><li>Introduce you to the various types of sales managers and the skills required of them. </li></ul><ul><li>Discuss what a new manager experiences when promoted from a sales job. </li></ul>L EARNING O BJECTIVES A career in sales management is exciting and unique and provides numerous opportunities. This chapter will do the following:
  4. 5. W HAT IS S ALES M ANAGEMENT? Sales management is the attainment of sales force goals in an effective and efficient manner through: <ul><ul><li>Planning </li></ul></ul><ul><ul><li>Staffing </li></ul></ul><ul><ul><li>Training </li></ul></ul><ul><ul><li>Leading </li></ul></ul><ul><ul><li>Controlling organizational resources </li></ul></ul>
  5. 6. FIGURE 1.1 THE SALES MANAGEMENT PROCESS Sales Management Functions
  6. 7. P LANNING 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.
  7. 8. FIGURE 1.1 THE SALES MANAGEMENT PROCESS Sales Management Functions
  8. 9. S TAFFING Activities undertaken to attract, develop, and maintain effective sales personnel within an organization.
  9. 10. FIGURE 1.1 THE SALES MANAGEMENT PROCESS Sales Management Functions
  10. 11. S ALES T RAINING 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.
  11. 12. FIGURE 1.1 THE SALES MANAGEMENT PROCESS Sales Management Functions
  12. 13. L EADING The ability to influence other people toward the attainment of objectives.
  13. 14. FIGURE 1.1 THE SALES MANAGEMENT PROCESS Sales Management Functions
  14. 15. C ONTROLLING Monitoring sales personnel’s activities, determining whether the organization is on target toward its goals, and making corrections as necessary.
  15. 16. FIGURE 1.1 THE SALES MANAGEMENT PROCESS Sales Management Functions
  16. 17. Sales Management is the attainment of sales goals in an ethical , efficient, and effective manner.* * Instructor added word ethical. S ALES P ERFORMANCE
  17. 18. FIGURE 1.2 THE SYSTEMS VIEW OF AN ORGANIZATION EXTERNAL ENVIRONMENT
  18. 19. 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.
  19. 20. 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. M AJOR P ARTS OF AN O RGANIZATIONAL S YSTEM
  20. 21. 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
  21. 22. FIGURE 1.4 PERCENTAGE OF TIME SPENT ON FUNCTIONAL ACTIVITIES BY ORGANIZATIONAL LEVEL Top Managers Middle Managers First-Line Managers
  22. 23. 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
  23. 24. S ALES M ANAGEMENT S KILLS 1. C ONCEPTUAL AND D ECISION S KILLS Refer to the cognitive ability to see the organization as a whole and the relationships among its parts. 2. P EOPLE S KILLS Involve the ability to work with and through other people and to work effectively as a group member. 3. T ECHNICAL S KILLS The ability to perform a specialized task that involves a certain method or process.
  24. 25. P ROMOTION F ROM S ALESPERSON TO S ALES M ANAGER Changes that occur when a person becomes a new manager: <ul><ul><li>Perspectives change </li></ul></ul><ul><ul><li>Goals change </li></ul></ul><ul><ul><li>Responsibilities change </li></ul></ul><ul><ul><li>Satisfaction changes </li></ul></ul><ul><ul><li>Job skill requirements change </li></ul></ul><ul><ul><li>Relationships change </li></ul></ul>
  25. 26. FIGURE 1.6 RELATIONSHIP OF CONCEPTUAL AND DECISION, PEOPLE, AND TECHNICAL SKILLS TO SALES LEADER LEVEL
  26. 27. T HE P ROMOTION E XPERIENCE 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
  27. 28. P ROBLEMS N EW M ANAGERS E XPERIENCE <ul><ul><li>Lack of preparation for the job. </li></ul></ul><ul><ul><li>Expected to step into the job and immediately function effectively. </li></ul></ul><ul><ul><li>Often lacks an immediate peer group. </li></ul></ul>
  28. 29. M AKING A S UCCESSFUL T RANSITION TO M ANAGEMENT <ul><ul><li>Have a learning attitude – a willingness to learn, change, adapt, and seek help when needed. </li></ul></ul><ul><ul><li>Having realistic expectations. </li></ul></ul><ul><ul><li>Leave the old job behind. </li></ul></ul>
  29. 30. T HE B OTTOM L INE 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.

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