Management By Tactics & Sales Management Outsourcing

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Management by Tactics™ is a term which describes a supervisory technique utilized by sales management.

It is a process in which sales managers/directors, along with salespeople, identify the day-to-day activities required to achieve sales objectives and focus their energies in controlling such activities (input) - rather than simply focusing on results (output).

Published in: Business, Education

Management By Tactics & Sales Management Outsourcing

  1. 1. A supervisory technique used by salesmanagement - An overview of its effects on sales performance produced by James D. Roumeliotis 2012
  2. 2. Do Sales Goals Actually Work?  Sales goals can get in the way of a successful sale, if you spend too much time thinking about them.  Goals are not a bad thing – it’s what spur you to take action. However…  …primary focus should be on the action, not on the goal, otherwise, you end up alienating customers through your pressure to reach your goals by making the sale.
  3. 3. Focus on the Process/Activities  Things are very different when you focus primarily on the process of selling, rather than worrying about the day- to-day routine of closing and quotas.  When you focus on the process, you stop trying to "make the sale." Because of this, you start building long- term relationships. Eventually your customers start bringing you new business and new opportunities.
  4. 4. What is Management by Tactics™(MBT)?  Management by Tactics™ is a term which describes a supervisory technique utilized by sales management.  It is a process in which sales managers/directors, along with salespeople, identify the day-to-day activities required to achieve sales objectives and focus their energies in controlling such activities (input) – rather than simply focusing on results (output).
  5. 5. What are the advantages of applying MBT? Management by Objectives (MBO) focuses on the outputs (sales results). On the other hand, salespeople improve their performance when they focus on tasks (inputs) rather than sales objectives (outputs).  It is effective in several types of industries – both products & services.  Effective in penetrating new markets.  Effective in selling new products to existing customers.
  6. 6. RESEARCH STUDY – pretest & post-test results* (with MBT) Twenty nine subjects from a sample of four companies representing different types of industries were selected.  Three of the companies sold products (tobacco, textbooks and pharmaceuticals), while the other promoted/sold loan services.  The first 3 companies sold to retailers, while the 4th sold academic textbooks to schools (which in turn sold them to students). During this research, sales representatives from all 4 companies worked exclusively with output goals – namely sales objectives. Data were collected. This stage of the research was referred to as the “Pre-test”. * Source: Management By Tactics (MBT): An Investigation of its Effects on Sales Performance, Giovanni Di Girolamo, Ph.D. (Management), California Coast University, Santa Ana, California, December 2005
  7. 7. Research Study…continuedThe researcher then Conclusion Results from all four companiesproceeded to implement the suggest that there is indeed aManagement by Tactics™ relationship between variables: MBTsystem. In this phase of the had a positive impact on salesresearch, the salespeople performance.  In the absence of applying MBT, allwere given input goals, such representatives in the study underas the number of telephone achieved sales objectives between 21% to 75% of their target.calls to be made, number of  On the other hand, when all repsprospects to visit and types of were given input goals under thesales presentations etc. MBT system, the weakest rep hit 100% of target – while the otherThis stage of the research is two reached 117% and 118%referred to as the “Post-test”. respectively for a combined average of 112% of sales targets.
  8. 8. Outsourcing of sales management – key considerations  Would you know the characteristics ofHow do you set up an efficient sales a good sales person?and marketing infrastructure, on a  Can you easily spot when someone islimited budget? Do you have telling you a lie?experience in sales management?  If a sale was dragging on, would youWould you know how to maximize know what questions to ask to find outthe potential of a good sales why?person?  Have you ever been paid on commission? Do you think sales peopleWhy is it important to have are overpaid?someone with sales management  If a sales person was not performingexperience in a company? Those after several months on the job, wouldwith sales experience know the you replace him/her with another salesanswers. However, for those who person?don’t have experience in sales, they  How would you definemay want to ask the following “non-performance”?questions:  Do you understand the value of a sales process?
  9. 9. How do you make the case for SalesManagement Outsourcing? Like any purchasing decision, you need to ensure that you get value for money. Bear in mind that the reason you would even consider investing in sales or marketing in the first place is to increase revenue and profit. What do you get when you outsource sales management? On a weekly basis, the sales manager will speak with the sales team, to determine the status of your sales opportunities. Everything in that meeting will be focused on closing sales, or ensuring opportunities are moving along the pipeline. The key advantages of this are as follows:  Identification of strengths and weaknesses amongst your sales team, whatever the size, ensuring you are maximizing return for your investment.  Shorter sales cycles, thus increasing revenue and cash flow.  Optimize the time your sales team spend on given opportunities, so that they can spend more time closing profitable opportunities.  Accurate information, based on sales both won and lost, which can be used by product planning and service teams.  Ongoing coaching and training based on your real opportunities, which makes your team the envy of the industry, and thus enables you to attract the best.  Identification of a competent team member who can take over the role of sales manager, so that you promote from within, which is great for morale and motivation.
  10. 10. James D. Roumeliotis & Affluence Marketing offer SALES & MARKETING CONSULTING for small & mid size companies of most industries. We improve our clients sales productivity, exposure/image and profitability by utilizing proven & unique methodologies such as Management by Tactics™ and Ambiance Marketing amongst others. ~~~~~~~~~Specializations~~~~~~~~~~ |Sales Management Consulting| |Sales Management Outsourcing| |Sales Strategy| Luxury Lifestyle Marketing & BrandingT: +1.514.715.7785 jdr@affluencemarketing.caF: +1.514.675.3057

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