The document discusses key topics in sales and sales management including: 1. Personal selling is a critical part of the workforce and involves direct communication between sales representatives and customers to lead to transactions and profitable relationships. 2. Sales management involves planning, organizing, leading and controlling personal contact programs to achieve sales and profit goals while also developing salespeople. 3. Effective sales management requires competencies in areas like strategic thinking, coaching, team building, self-management, having a global perspective, and using technology.

1. Part I
THE BIG PICTURE
Chapter 1:
Introduction to Selling and
Sales Management

2. Sales Management
“I don’t care how many
degrees you have on the
wall, if you don’t know how
to sell, you’re probably
going to starve.”
Heavyweight boxer George Forman’s
advice to his children
L.A. Times, pg. C2, Tuesday, March 25, 1997

3. PERSONAL SELLING
 According to the U.S. Department of Labor’s,
people working in sales number close to 12
million, or about 10 percent of the total
workforce in the United States.
 Personal selling is critical to the sale of many
goods and services, especially major
commercial and industrial products and
consumer durables, and can be defined as:

4. PERSONAL SELLING
Direct communications between paid
representatives and prospects that lead
to transactions, customer satisfaction,
account development, and profitable
relationships.

5. Figure 1-1:
Positions of Personal Selling and
Sales Management in the Marketing Mix
Planning Motivating
Budgeting Compensating
Recruiting and selecting Designing territories
Training Evaluating performance
Marketing
mix
Products Prices Promotion Distribution
Advertising
Public
relations
Personal
selling
Sales
promotion
Internet
Sales
management

6. What Creates Satisfied
Customers?
21%
25%
17%
37%
Quality
of Product
or Service
A Total
Customer
Solution
Competence
of the
Salesperson
Competitive Price

7. Personal selling
 involves two-way communication with
prospects and customers that allows the
salesperson to address the special needs of
the customer.
 Perhaps the most important advantage of
personal selling is that it is considerably more
effective than advertising, public relations,
and sales promotion in identifying
opportunities to create value for the customer
and gaining customer commitment.

8. Sales management
 Sales management can thus be defined as:
 The planning, organizing, leading, and controlling of
personal contact programs designed to achieve the
sales and profit objectives of the firm.
 all managers have two types of responsibilities
 Achieving or exceeding the goals established for
performance in the current period
 Developing the people reporting to them

9. A CHANGING MARKETPLACE:

10. A CHANGING MARKETPLACE:
 Competition
Today, the number of competitors in most markets has literally
exploded. In this section, we explore three key reasons for this
development—globalization of markets, shorter product cycles, and a
blurring of market boundaries.
 1-Globalization : (like Chinese product ) , as the huge technological
advances in all parts of our life , there are an increase in the
competition , so every thing become complex.
 2-shorter product cycles : technology decrease the time needed to
convert input to output , so the production life cycle affect our buying
patterns as example :
(if it take 2 years to produce a plane , you couldn’t replace it every 1 year )
Life span : relatively TV modified or produce new model each year ( like
mobile , computers , cars , because ( let people follow new thing ) .
 3- blurred boundaries : remove boundaries for companies .

11. A CHANGING MARKETPLACE:
 Customers :
 1-Fewer Suppliers : make the cost lower , so people prefer
wholesaler who have directly relationship with the customer .
 2-Rising Expectation :( the customer become more awareness
) and now he able to know everything about the product , and
because he ask always for the information related to the product
, so the company must expect what customer problems are .
 3-Increasing Power :the relationship between customer and
supplier ( in the past the relationship are as follows , first come
the manufacturer then the supplier then the customer ) but now
because a huge numbers of customers , suppliers play as a
representative for the manufacturer .
when supplier deal with many product for manufacturer , the
result is a decrease of cost of suppliers that the company pay for
them or him .

12. selling process :
1-Relationship Selling :
 Relationship selling involves creating
customer value by addressing important
customer problems and opportunities through
a supplier-customer relationship that is much
more intimate than that of traditional
transactional selling. relationship selling
requires a greater level of trust and
commitment by both parties.

13. Figure 1-3:
Contrasting Transactional and
Relationship Selling Models
Emphasis on
Sales skills
Respond to
Customer needs
Provide good products,
Price, and services
Narrow the
customer focus
Differentiate through
Products
Sales/revenue
Focus
Traditional customer
relationships
Emphasis on general
Management skills
Proactive innovation/opportunity
Identification and offers
Value-based offers/
Organizational enablers
Broaden to
Customers’ customer
Differentiate through
People
Profit management focus/
Share of customer
Trusted business advisor
and partner
TRANSACTIONAL RELATIONSHIP

14. selling process :
 2-Sales team :
 with multiple contacts being established between
parties . This model allows for a broader transfer of
capabilities and communications. Companies now
give a big deal or great attention to work as teams
because teams mean experience, low cost , and do
the job better .
 this allows for a broader transfer of capabilities and
communications , notice also that both the buyer
and seller must change , but not all buyers and
sellers are prepared to make these adjustments .

15. Figure 1-4:
Traditional Buyer-Seller Interface
versus A Team Interface
Sales Purchasing
Sales
Team
Customer
Team
Supplier Customer Supplier Customer
TRADITIONAL
BUYER-SELLER
INTERFACE
BUYER-SELLER
INTERFACE TEAM

16. Improving Your
Chances of Success
1. Build awareness
2. Get on the short list
3. Demonstrate how your proposal meets
company needs
4. Directly address decision maker’s
personal needs
5. Be prepared for “buyer remorse”

17. A Sales Quota Manager:
Job Focus
 Maintain direct responsibility for sales
results for specific customers.
 Manages one or a few larger, long-term
or strategic accounts
 May have a staff of one or more
subordinate sales or support people, but
focus on managing the sales team for
the sake of achieving customer results

18. A Sales Force Manager:
Job Focus
 Spend little or no time directly managing
customer accounts.
 Focuses on building, refining, and
staffing a selling team.
 Contact with customers is largely non-
selling, but service and salesperson
development in purpose.

19. selling process :
 3-Inside selling : some people spend more time
selling for customer in the company rather than go
and attack new buyers and make new deals or
make some selling process.
 4-productivity metrics :
Productivity = out puts /In puts
 Historically, sales performance metrics were
simple—increase revenue over the previous year.
Sales managers typically rewarded and
compensated salespeople by evaluating sales
volume over a certain period of time. Although
sales volume is still important, companies are
discovering that not all sales are equally profitable.

20. Profitability often depends
on the following:
 • The amount of time necessary to complete
the sale
 • The gross margins associated with the sale
 • The level of price discounting
 • The amount of promotional support
 • The amount of post-sale support
 • The impact of future product sales

21. A Sales Force Manager’s
Skill Set
 Willingness to Train/Coach
 Willingness to Make Joint Sales Calls
 Ability to Direct and Control Others
 Profit Mentality
 Initiative

22. THE SALES MANAGEMENT
PROCESS :
The sequence of activities that guides
managers in the creation and
administration of sales programs for a
firm is known as the sales management
process.

23. 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

24. THE SALES MANAGEMENT
PROCESS :
 Focusing on the Big Picture:
Mean interpret the company strategy and a firm's marketing
strategy and a firm's strategic sales force program , so when
you work as salesperson or any jobs in sales try to make your
job plans and goals go with the department goals and with the
company goals …
 Roles of the Sales Force:
The role of sales force in implementation market strategy must
appear and have a big portion .
 Structuring the Sales Force:
Affect selling skills and knowledge level required of salespeople
(which affect compensation, recruitment, training , and
evaluation ) which in turn affect how the customers see
the firm .

25. THE SALES MANAGEMENT
PROCESS :
 Building Sales Competencies:
( we will talk a lot about it later on ) but for now its mean the
abilities and the capabilities that the salespeople must have to
can work effectively in sales job .
 Leading the Sales Force:
(models of behaviors develop trust between you as a manger
And your employees in sales department, rapport or good
relation with subordinates can be build as a result )

26. Coaching
Competency
Team
Building
Competency
Global
Perspective
Competency
Technology
Competency Sales
Management
Effectiveness
Figure 1-5:
A Model of Sales
Management Competencies
Strategic
Action
Competency
Self-
Management
Competency

27. Strategic Action Competency
Dimensions
Understanding the Industry:
 Understands the history and general trends in
the industry and their implications for the
future
 Stays informed of and anticipates the actions
of competitors and strategic partners
 Identifies attractive market segments and
their buying needs

28. Strategic Action Competency
Dimensions
Understanding the Organization:
 Understands the vision, overall strategy, and
goals of the organization
 Appreciates the distinctive competencies of
the organization with respect to market
opportunities and limitations
 Understands how to marshal organizational
resources to meet the needs of the customers

29. Strategic Action Competency
Dimensions
Taking Strategic Actions:
 Assigns priorities and making decisions that are consistent
with the firm’s mission and strategic goals
 Implements specific account selection, retention, and
dominance strategies
 Develops an appropriate portfolio of account relationships
 Considers the long-term implications of actions in order to
sustain and further develop the organization
 Establishes tactical and operational goals that facilitate the
firm’s strategy implementation

30. Coaching Competency
Dimensions
Providing Verbal Feedback:
 Provides specific and continuous performance
and selling skills feedback
 Builds a feeling of appreciation and recognition
by taking the time to acknowledge a job sell done,
and effort beyond the call of duty or an important
victory
 Reinforces successes and nice-tries to support
desirable behaviors

31. Coaching Competency
Dimensions
Role Modeling:
 Leads by example, rather than decree
 Provides role models, either themselves or
others, and sharing best practices
 Models professional attitudes and behaviors

32. Coaching Competency
Dimensions
Trust Building:
 Maintains good rapport with the sales team and
fosters open communications, collaboration,
creativity, initiative, and appropriate risk taking
 Adds value through communicating relevant
selling experiences
 Helps salespeople to “look good” through two-
way communications

33. Teambuilding Competency
Dimensions
Designing Teams:
 Implements an organizational architecture that
will support teams
 Creates a reward system that is fair within the
context of a team effort
 Coordinates team goals with the overall goals of
the organization
 Coordinates team activities with the requirements
of functional areas within the organization

34. Teambuilding Competency
Dimensions
Creating a Supportive Environment:
 Hires people that will be successful in a team
environment
 Trains programs that encourage teamwork
 Integrates the individual members of the
sales team together to form a functioning
supportive team

35. Teambuilding Competency
Dimensions
Managing Team Dynamics:
 Understands the strengths and weakness of
team members and using their strengths to
accomplish tasks as a team
 Facilitates cooperative behavior and keeps
the team moving towards its goals

36. Self-Management Competency
Dimensions
Fostering Integrity and Ethical Conduct:
 Has clear personal standards that serve as a
foundation for a sense of integrity and ethical
conduct by the sales team
 Projects self-assurance and does not just tell
people what they want to hear
 Willing to admit mistakes and accepts
responsibility for own actions

37. Self-Management Competency
Dimensions
Managing and Balancing Personal Drive:
 Seeks responsibility, works hard and is willing to
take risks
 Shows perseverance in the face of obstacles and
bounces back from failure
 Ambitious and motivated to achieve objectives, but
does not put personal ambition ahead of the
organization’s goals
 Understands that goals are achieved through the
success and development of the salespeople

38. Self-Management Competency
Dimensions
 Has clear personal and career goals and knows
own values, feelings and areas of strengths and
weaknesses
 Analyzes and learns from work and life experiences
 Willing to continually unlearn and relearn as
changing situations call for new skills and
perspectives
Developing Self-Awareness and
Management Skills:

39. Global Perspective Competency
Dimensions
Cultural Knowledge and Sensitivity:
 Stays informed of political, social, and economic
trends and events around the world
 Recognizes the impact of global events on the
market and the organization
 Sensitivity to cultural cues and ability to adapt
quickly in novel situations
 Travels regularly and has a basic business
vocabulary in languages relevant to the position

40. Global Perspective Competency
Dimensions
Adapting Global Selling Program:
 Adopts an appropriate sales force architecture for
global accounts
 Appropriately adjusts sales force measurement,
competency creation and motivation systems to the
local culture
 Appropriately adjusts own behavior when
interacting and managing people from various
national, ethnic and cultural backgrounds

41. Technology Competency
Dimensions
Understanding of New Technology:
 Awareness of the potential for technology to
increase sales force efficiency and
effectiveness
 Experience in using new technology
 Attitude toward adopting new technology

42. Technology Competency
Dimensions
Implementing Sales Force Automation:
 Knows what is to be accomplished and the
benefits that are possible
 Adapts personal management style and
procedures
 Fosters sales force acceptance and use of
selling technology

43. Know your e-Business
Terminology
1. EDI
2. ERP
3. CRM
4. Groupware
5. Intranet
6. Extranet
7. E-Commerce

44. EXECUTIVE MANAGEMENT
FUNCTION MANAGEMENT – GENERAL MANAGEMENT
DIRECTOR
ASSOCIATE DIRECTOR
MANAGER
Human
Resources
Customer
Business
Development
Sector/
Multi-Sector
Sales
Human
Resources
Customer
Business
Development
Sector/
Multi-Sector
Bus. Devel
Sector
Sales
Merchandising
Geographic
or Team
Account Exec
Other Field or
General Office
Roles
Operations
Manager
ACCOUNT MANAGER
Geographic
or Team
Account Exec
Other Field or
General Office
Roles
Operations
Manager
WORLDWIDE
ASSIGNMENTS
• Canada
• Latin
America
• Asia/Pacific
• Europe
• Middle East
& Africa
• U.S.
Figure 1-6:
Career Paths at Procter and Gamble
OTHER
FUNCTIONS
• Advertising
• Product
Supply
• Management
System
• Human
Resources
• Finance
• Other