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Chapter 1:

THE BIG PICTURE

Part I

Introduction to Selling and Sales Management

Sales Management
I dont care how many degrees you have on the wall, if you dont know how to sell, youre probably going to starve.

Heavyweight boxer George Formans advice to his children


L.A. Times, pg. C2, Tuesday, March 25, 1997

What Creates Satisfied Customers?


21% A Total 37%
Customer Solution

Competence of the Salesperson


25% Quality
of Product or Service

17%
Competitive Price

Figure 1-1:

Positions of Personal Selling and Sales Management in the Marketing Mix


Marketing mix Products Advertising Prices Promotion Public relations Distribution Sales promotion

Personal selling

Sales management

Planning Budgeting Recruiting and selecting Training

Motivating Compensating Designing territories Evaluating performance

Whats New?

Figure 1-2:

Marketplace Changes and Selling Consequences


Competition Global Competition Shorter Production Cycles Blurred Boundaries Customers Fewer Suppliers Rising Expectations Increasing Power

Selling Process Relationship Selling Customer Relationship Management Sales Teams Global Account Management Inside Selling

Figure 1-3:

Contrasting Transactional and Relationship Selling Models


TRANSACTIONAL
Emphasis on Sales skills Respond to Customer needs Provide good products, Price, and services Narrow the customer focus Differentiate through Products

RELATIONSHIP
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

Sales/revenue Focus
Traditional customer relationships

Figure 1-4:

Traditional Buyer-Seller Interface versus A Team Interface


TRADITIONAL BUYER-SELLER INTERFACE
BUYER-SELLER INTERFACE TEAM

Sales

Purchasing

Sales Team

Customer Team

Supplier

Customer

Supplier

Customer

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 makers personal needs 5. Be prepared for buyer remorse

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

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 nonselling, but service and salesperson development in purpose.

A Sales Quota Managers Skill Set


Willingness to Train/Coach Willingness to Make Joint Sales Calls Problem-Solving Making Presentations

Answering Objections

A Sales Force Managers Skill Set


Willingness to Train/Coach Willingness to Make Joint Sales Calls Ability to Direct and Control Others Profit Mentality

Initiative

The Sales Management Activities

Table 1-1:

Sales Managers Time Allocations


JOB RESPONSIBILITY
MANAGERS TIME ALLOCATION

Selling Face-to-face Telephone selling Administration Account service/coordination

29% (17) (12) 25 17

Travel/waiting
Internal meeting

15
14

The Sales Management Competencies


What it takes to be a good Sales Manager

Figure 1-5:

A Model of Sales Management Competencies


Strategic Action Competency

Technology Competency

Global Perspective Competency

Sales Management Effectiveness


SelfManagement Competency

Coaching Competency

Team Building Competency

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

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

Strategic Action Competency Dimensions


Taking Strategic Actions:
Assigns priorities and making decisions that are consistent with the firms 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 firms strategy implementation

Coaching Competency Dimensions


Providing Verbal Feedback:
Provides specific and continuous performance and selling skills feedback

Builds a feeling of appreciation and recognition


Reinforces successes and nice-tries to support desirable behaviors

Coaching Competency Dimensions


Role Modeling:
Provides role models, either themselves or others, and sharing best practices

Coaching Competency Dimensions

Trust Building:
Maintains good rapport with the sales team and fosters open communications, collaboration, creativity, initiative, and appropriate risk taking

Teambuilding Competency Dimensions


Designing 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

Teambuilding Competency Dimensions


Creating a Supportive Environment:
Hires people that will be successful in a team environment Trains programs that encourage teamwork

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

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

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 organizations goals Understands that goals are achieved through the success and development of the salespeople

Self-Management Competency Dimensions


Developing Self-Awareness and Management Skills:
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

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

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

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

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