1

Sales Management
What are the two
major functions of
a Sales Manager?

Understand the interaction between Marketing and Sales

Review the major changes taking place in selling and the force causing these changes
Discuss the sales management process and the competencies required to be a
successful sales manager
Describe the development of sales strategy within overall business and marketing
strategy
2

Customer Awareness

Purchase Intent

Brand Awareness

Purchase

Brand Consideration

Customer Loyalty

Brand Preference

Customer Advocacy

Handoff to Sales
3

Globalisation
Global markets
Global suppliers

Customer
Expectations
Fewer Suppliers
Increasing Power
Rising Expectations

Sales process
Solutions Selling
Sales Teams
Sales Networks
Productivity Metrics

Technology
Internet
Mobile
Computing

Competition
Distribution Touch points
Shorter Product Cycles
Sustainable Competitive
Advantage
4

Transactions

Individuals

Sales Revenue

Relationships

Teams

Customer Lifetime Value

Management

Leadership

Local

Global
5

Selling Skills

Responsive

Selling
Differentiation through Products

Buyer Seller

Business Skills

Partnerships

Solutions
Differentiation through People

Preferred Business
Advisor
6

Strategic
Action
Competency
Technology
Competency

Coaching
Competency
Sales
Management
Effectiveness

Global
Perspective
Competency

Team Building
Competency
SelfManagement
Competency

Strategic
Action

Coaching

Team
Building

Industry trends, past and future

Actions of competition and strategic partners
Identification of attractive market segments and their buying needs
Understands how to marshal organisational resources to meet the needs
of the customers

Trust building in team through open and two way communication,

collaboration, creativity, initiative and appropriate risk taking
Value addition through sharing of relevant selling experiences

Proper organisation structure

Hiring the right people
Understanding individual strengths and weaknesses to foster team work
Proper rewards system
Coordinate team goals with organisation goals
8

Self
Management

Integrity and ethics

Success comes from development of sales persons
Ability to gauge own areas of strengths and weaknesses
Learner and unlearner

Global
Perspective

Aware of political, social and economic trends

Impact of global events on local markets
Ready to travel and learn languages
Adopt appropriate sales force structure
Adjust sales force competencies to local culture
Adjust own behaviour to global sales force

Technology

Use to improve efficiency and effectiveness

Attitude to technology
Adapting personal style
Experience in using technology
Foster sales force acceptance and use of selling technology
9

Designing Sales Force Strategy and Structure

Forecasting, Budgeting and Territorial Planning

Recruiting and Selecting Sales People
Training Sales People
Compensating Sales People
Leading and Motivating Sales People
Evaluation of Sales People
Marketing Cost and Profitability Analysis
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LEVEL 1
Top
Management
Decisions

LEVEL 2
Strategy
Implementation
Decisions

LEVEL 3
Sales Force
Program
Decisions

Business
Strategy

Marketing
Strategy

Go-to-Market
Strategy

Customer
Relationship
Management (CRM)

Product Development
Supply Chain
Management
Management (SCM)
(PDM)

Account Relationship
Strategy

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Corporate Goals
Increase shareholder wealth by 10%

Business Objectives
Grow gross profit by 18% and revenue by 12%

Marketing Objectives
Increase Product As market share by 2%. Grow contributions after sales and marketing by 20%

Sales Department Objectives

Achieve sales revenue of $ 210 million. Grow contributions after sales by 25%

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Sales Department Goals

Achieve sales revenue of $ 210 million. Grow contributions after sales by 25%

Sales District Objectives

Achieve sales revenue of $ 10.5 million in Product A. Obtain $ 7 million contributions after direct selling

Salesperson Objectives
Achieve sales revenue of $ 1.2 million in product A. Obtain $ 0.8 million in gross margin dollars

Major Account Objectives

Achieve sales revenue of $ 95,000 in Product A. Obtain an average gross margin of 80%

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Pursue large customers

Minimize cost
Compete on price
Transaction oriented
High span of control
Incentive based compensation
Evaluation on Sales Outcome

14

Compete on non-price benefits

Provide high quality customer service
Seek long term customer relationships
Limited span of control
Salary plus incentives
Evaluation on behaviour and sales
outcome

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 Serve a distinct target market not

served well by others
Provide high quality customer
service
Build partnerships
Flat organisation

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Go-to-market strategy?

How will customers be accessed?

Product Development
Management

How will new products be developed and

existing products be improved?

Supply Chain
Management

How will physical products be created and

delivered to the customers?

Customer Relationship
Management

How will customer relations be enhanced and

leveraged?
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What is the
best way to
segment the
market?

What are the

essential
activities
required by
each segment?

What non-faceto-face selling

methods should
perform these
activities?

What face-toface selling

participants
should be used?

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Industry
Size
Geography

Behaviour

What is the customers business?

Revenue
Number of employees
Sales potential

Location
State level, national or international

Key decision makers

Adoption techniques
User or non-user
Central or local purchase
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Interest
creation

Post-purchase

Pre-purchase

Purchase

It has to be understood that different segments will

require different efforts at different stages

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Customers and Prospects

Direct Sales
Force

Direct

Agents
Distributors
Retailers

Integrators

Alliances

Advertising
Promotion
Direct Mail

Telemarketing

Internet

Indirect
Sales Force Options

Non-Sales Force Options

Company

Examples of Integrators and Alliances

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Low Cost
per Exposure

Advertising
Direct Mail
Internet

Efficiency

Telemarketing

Sales Force

Effectiveness

High Sales
per Exposure
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Identify customer needs for better solutions

Discovering and designing new product solutions

Developing new solution prototypes

Managing internal departmental priorities and involvement
Designing activities to speed-up development process
Launching new and redesigned offerings

Impact on Sales
Department

Change in organisation structure

Sales quota changes
Training of field force
Changes in incentives and awards
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Selecting and managing supplier relationships

Managing inbound, internal and outbound logistics
Designing product assembly and batch manufacturing
Managing process technology
Order, pricing, and terms management
Managing channel partners
Managing product installation and maintenance

Implications on
the evolution of
the sales force

Knowledge of the entire upstream and downstream supply

chain
Thinking strategically about partnering with the channels
Establishing good internal and external lines of
communication and influence
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Identifying high value prospects

Learning about product usage and application
Developing and executing advertising and promotion programs
Developing and executing sales programs
Developing and executing customer service programs

Acquiring and leveraging customer contact information systems

Managing customer contact teams
Enhancing trust and customer loyalty
Cross-selling and upselling of offerings

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Extrinsic Value Customers

(buying beyond product value)

Strategic Value Customers

(leveraging suppliers enterprise competencies)

Create new
value through
sales offer

Create new
value through
sales offer

INCREASE
BENEFITS
REDUCE
COSTS

Lessen cost
and effort of
acquisition

Intrinsic Value Customers

(buying on product value alone)

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Intrinsic Value
Buyers

Transactional
Selling

a cheaper no
hassle pie

VALUE = BENEFITS -COSTS

Extrinsic Value
Buyers

Consultative
Selling

a bigger pie

Strategic Value
Buyers

Enterprise Selling

a balanced diet
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Source: Andris Zoltners, Prabhakant Sinha and Sally E Lorrimer, Match your Sales
Force to your Business Cycle HBR August 2006

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PPT 1-4

Distribution Channel

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Physical
Possession

Physical
Possession

Ownership

Ownership

Ownership

Promotion

Promotion

Risking
Ordering
Payment

Financing
Risking
Ordering
Payment

Negotiation

Financing
Risking

CONSUMERS

Financing

Negotiation

Promotion

RETAILERS

Negotiation

WHOLESALERS

MANUFACTURERS

Physical
Possession

Ordering
Payment
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M A N U F A C T U R E R S

Retailers

Wholesalers

Retailers

Three Levels

Two Levels

One Level

Zero Level

Distributors

Wholesalers

Retailers

C O N S U M E R S
Number of levels depends on type of product and geographical spread

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By ownership
Single unit
Chain stores
Company run
stores
Government
operated stores

Merchandise
handled
General
merchandise
Single line
Specialty stores

Method of
customer contact
Bricks and
mortar
Catalogue
Internet
Household
contacts

Location
Urban
Rural
Roadside

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Intensive

Distribute through as many outlets as possible

Low involvement products where convenience is
most important
Normally for FMCG and fast moving electrical items

Selective

Normally for consumer durables

Exclusive

Used when producers want to retain control over the

quality of service levels
Relationship oriented
LG, Samsung, Benetton

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Transportation
Firms

Financial
Firms

Storage Firms

Advertising
Agencies

Insurance
Firms

Marketing
Research
Firms
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48

What would be the

difference between:

Industrial Selling

Channel Selling
Services Selling
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