Overview of Sales Management and the Selling Environment
<ul><li>Building long-term relationships with customers </li></ul><ul><li>Creating more nimble and adaptable sales organiz...
Sales Management in the 21st Century <ul><li>Shifting sales management style from commanding to coaching </li></ul><ul><li...
Key Themes <ul><li>Innovation – thinking outside the box </li></ul><ul><li>Technology – broad spectrum of tools available ...
Innovation <ul><li>Classical selling involved . . . </li></ul><ul><li>Transaction Selling – a series of transactions, each...
Technology <ul><li>Constant accessibility to people/data via computers and mobile phones </li></ul><ul><li>Interactive web...
Leadership versus Managing <ul><li>Leading (Mentoring) </li></ul><ul><li>Communicate </li></ul><ul><li>Cheerleader/coach <...
Globalization – bridging the culture gap <ul><li>View customers in terms of ethnic core values </li></ul><ul><li>Get in sy...
Ethics <ul><li>Customer loyalty is impossible to maintain without trust </li></ul><ul><li>Long term relationships require ...
Sales Management Process <ul><li>The  formulation  of a sales program </li></ul><ul><li>The  implementation  of the sales ...
 
Environmental Impact on Selling <ul><li>Environmental forces constrain the ability to pursue certain marketing strategies ...
 
Economic Environment <ul><li>Buyer-seller interactions take place within the context of current economic conditions </li><...
Legal-Political Environment <ul><li>Many of the changes in society’s values reflect new laws and new government regulation...
Technological Environment <ul><li>Changing the way salespeople and sales managers do their jobs </li></ul><ul><li>Influenc...
Social and Cultural Environment <ul><li>Ethics - concerned with development of moral standards by which actions and situat...
Natural Environment <ul><li>Nature influences demand for products </li></ul><ul><ul><li>Weather </li></ul></ul><ul><ul><li...
 
Goals/Objectives/Culture <ul><li>Mission and objectives drive customer management approaches </li></ul><ul><li>A well-defi...
Personnel <ul><li>Modern sales organizations are highly complex and dynamic </li></ul><ul><li>Often difficult to expand to...
Financial Resources <ul><li>Lack of financial resources can:  </li></ul><ul><ul><li>constrain ability to develop new produ...
Production and Supply Chain Capabilities <ul><li>Production capacity </li></ul><ul><li>Location of production facilities <...
Service Capabilities <ul><li>Opportunity for strong competitive advantage </li></ul><ul><li>Difficult for other firms to c...
R&D and Technological Capabilities <ul><li>Excellence in design and engineering provide major promotional appeal </li></ul...
Key Terms <ul><li>transactional selling </li></ul><ul><li>relationship selling </li></ul><ul><li>leading versus </li></ul>...
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Intro

  1. 1. Overview of Sales Management and the Selling Environment
  2. 2. <ul><li>Building long-term relationships with customers </li></ul><ul><li>Creating more nimble and adaptable sales organizational structures </li></ul><ul><li>Removing functional barriers within the organization to create greater job ownership and commitment from salespeople </li></ul>Sales Management in the 21st Century
  3. 3. Sales Management in the 21st Century <ul><li>Shifting sales management style from commanding to coaching </li></ul><ul><li>Leveraging available technology for sales success </li></ul><ul><li>Integrating salesperson performance evaluation to incorporate all activities and outcomes </li></ul>
  4. 4. Key Themes <ul><li>Innovation – thinking outside the box </li></ul><ul><li>Technology – broad spectrum of tools available to salespersons </li></ul><ul><li>Leadership – capability to make things happen </li></ul><ul><li>Globalization </li></ul><ul><li>Ethics </li></ul>
  5. 5. Innovation <ul><li>Classical selling involved . . . </li></ul><ul><li>Transaction Selling – a series of transactions, each one involving separate organizations entering into an independent transaction. </li></ul><ul><li>The contemporary shift . . . </li></ul><ul><li>Relationship Selling – narrowing the vendor pool, improving efficiencies, working directly with customers to solve problems. In general, salespeople are asked build relationships. </li></ul>
  6. 6. Technology <ul><li>Constant accessibility to people/data via computers and mobile phones </li></ul><ul><li>Interactive web presences </li></ul><ul><li>Just-in-Time (JIT) delivery </li></ul><ul><ul><li>Electronic Data Interchange (EDI) in manufacturing </li></ul></ul><ul><ul><li>Efficient Customer Response (ECR) in retailing </li></ul></ul><ul><li>Customer Relationship Management Software (CRM) </li></ul><ul><li>Intranets for internal communication </li></ul><ul><li>Extranets to serve all stakeholders </li></ul>
  7. 7. Leadership versus Managing <ul><li>Leading (Mentoring) </li></ul><ul><li>Communicate </li></ul><ul><li>Cheerleader/coach </li></ul><ul><li>Empower to make decisions </li></ul><ul><li>Managing </li></ul><ul><li>Control </li></ul><ul><li>Supervisor/boss </li></ul><ul><li>Direct </li></ul>
  8. 8. Globalization – bridging the culture gap <ul><li>View customers in terms of ethnic core values </li></ul><ul><li>Get in sync with customer business practices </li></ul><ul><li>Follow customers’ lead </li></ul><ul><li>See others honestly </li></ul><ul><li>Adopt the perspective of other cultures </li></ul>
  9. 9. Ethics <ul><li>Customer loyalty is impossible to maintain without trust </li></ul><ul><li>Long term relationships require higher ethical standards </li></ul><ul><li>Federal Sentencing Guidelines designed to punish unethical firms </li></ul>
  10. 10. Sales Management Process <ul><li>The formulation of a sales program </li></ul><ul><li>The implementation of the sales program </li></ul><ul><li>The evaluation and control of the sales program </li></ul>
  11. 12. Environmental Impact on Selling <ul><li>Environmental forces constrain the ability to pursue certain marketing strategies or activities </li></ul><ul><li>Environmental variables determine the ultimate success or failure of marketing strategies </li></ul><ul><li>Changes in the environment create new marketing opportunities </li></ul><ul><li>Environmental variables are affected by marketing activities </li></ul>
  12. 14. Economic Environment <ul><li>Buyer-seller interactions take place within the context of current economic conditions </li></ul><ul><li>The economy impacts real potential demand </li></ul><ul><li>Global economic conditions are important </li></ul><ul><li>Competitive structure affects selling success </li></ul>
  13. 15. Legal-Political Environment <ul><li>Many of the changes in society’s values reflect new laws and new government regulations. </li></ul><ul><li>Three broad categories of laws are relevant: </li></ul><ul><li>Antitrust </li></ul><ul><li>Consumer Protection </li></ul><ul><li>Equal Employment Opportunity </li></ul>
  14. 16. Technological Environment <ul><li>Changing the way salespeople and sales managers do their jobs </li></ul><ul><li>Influences sales strategies </li></ul><ul><li>Provides increased opportunities for product development </li></ul><ul><li>Transportation, communications, and data processing technologies change sales territories, sales rep deployment and sales performance evaluation </li></ul>
  15. 17. Social and Cultural Environment <ul><li>Ethics - concerned with development of moral standards by which actions and situations can be judged. </li></ul><ul><li>Of concern to sales managers: </li></ul><ul><ul><li>Their relationships with salespeople </li></ul></ul><ul><ul><li>Interactions between salespeople and their customers </li></ul></ul><ul><li>Managers must influence ethical performance by example </li></ul><ul><li>Ethical standards reflect integrity of the firm </li></ul>
  16. 18. Natural Environment <ul><li>Nature influences demand for products </li></ul><ul><ul><li>Weather </li></ul></ul><ul><ul><li>Natural disasters </li></ul></ul><ul><ul><li>Availability of raw materials </li></ul></ul><ul><ul><li>Energy resources </li></ul></ul><ul><li>Demarketing may result from shortages caused by nature </li></ul><ul><li>Growing social concern about the possible negative impact of product and production have important implications for marketing and sales programs </li></ul>
  17. 20. Goals/Objectives/Culture <ul><li>Mission and objectives drive customer management approaches </li></ul><ul><li>A well-defined mission + successful corporate history + top management values = strong corporate culture </li></ul>
  18. 21. Personnel <ul><li>Modern sales organizations are highly complex and dynamic </li></ul><ul><li>Often difficult to expand to take advantage of growing markets </li></ul><ul><li>Utilizing outside specialists can help firms meet need to expand </li></ul>
  19. 22. Financial Resources <ul><li>Lack of financial resources can: </li></ul><ul><ul><li>constrain ability to develop new products </li></ul></ul><ul><ul><li>limit promotional budget </li></ul></ul><ul><ul><li>limit size of sales force </li></ul></ul>
  20. 23. Production and Supply Chain Capabilities <ul><li>Production capacity </li></ul><ul><li>Location of production facilities </li></ul><ul><li>Transportation costs </li></ul><ul><li>Ability to ensure seamless distribution and service after the sale </li></ul>
  21. 24. Service Capabilities <ul><li>Opportunity for strong competitive advantage </li></ul><ul><li>Difficult for other firms to compete for same customers </li></ul><ul><li>Customers reluctant to switch regardless of price </li></ul>
  22. 25. R&D and Technological Capabilities <ul><li>Excellence in design and engineering provide major promotional appeal </li></ul><ul><li>Ability to communicate technological sophistication as value-add helps prevent over-reliance on price to get sales </li></ul>
  23. 26. Key Terms <ul><li>transactional selling </li></ul><ul><li>relationship selling </li></ul><ul><li>leading versus </li></ul><ul><li>managing </li></ul><ul><li>sales management </li></ul><ul><li>sales management process </li></ul><ul><ul><li>formulation </li></ul></ul><ul><ul><li>Implementation </li></ul></ul><ul><ul><li>evaluation and control </li></ul></ul><ul><li>internal (organizational) environment </li></ul><ul><li>corporate culture </li></ul><ul><li>discontinuous change </li></ul><ul><li>external environment </li></ul><ul><ul><li>economic environment </li></ul></ul><ul><ul><li>legal and political </li></ul></ul><ul><ul><li>environment </li></ul></ul><ul><ul><li>technological environment </li></ul></ul><ul><ul><li>social and cultural </li></ul></ul><ul><ul><li>environment </li></ul></ul><ul><ul><li>natural environment </li></ul></ul><ul><li>ethics </li></ul><ul><li>demarketing </li></ul>

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