Chapter 1 Introduction to sales force management Figure

Chapter 1 Introduction to sales force management

( Figure 1 -1) Top Five Customer Complaints About Salespeople Percent of Customers with Complaint Source: The HR Chally Group, Ten Year Research Report, 2002.

( Figure 1 -2) Types of Outside Sales Forces Product Sold for Purpose of: ↓ Consumption Incorporation Resale To Businesses That Are To Consumers Manufacturers Xerox selling a Avon selling photocopier to lipstick to women office staff of Eli consumers Lilly Pharmaceuticals n. a. Intermediaries Institutions Maintenance company selling snow plowing service to grocery store 3 M selling overhead projectors to a local school district Owens Illinois selling custom-fit windshields to Ford n. a. for its Mustang n. a. Goodyear selling tires to Tire America n. a. Florist selling dried flowers to hospital gift shop

The Nature of Personal Selling Transaction Selling ◦ Get new accounts ◦ Get the order ◦ Cut the price to get the sale ◦ Manage all accounts to maximize shortterm sales ◦ Sell to anyone Relationship Selling ◦ Retain existing accounts ◦ Become the preferred supplier ◦ Price for profit ◦ Manage each account for long-term profit ◦ Concentrate on highprofit-potential accounts

6 Categories of Sales Jobs �Consultative seller �Key account seller �New business seller �Sales support �Missionary seller �Delivery seller

(Figure 1 -3) Selected Activities of Salespeople Salesperson Generate sales: • Precall planning • Prospecting • Make sales presentations • Overcome objections • Close by asking for the orders • Arrange for delivery • Entertain • Arrange for credit/financing • Collect payments • Participate in trade shows Provide service to customers: • Provide management/technic al consulting • Oversee installations and repairs • Check inventory levels • Stock shelves • Provide merchandising assistance: • Co-op advertising, point-of-purchase displays, brochures • Oversee product and equipment testing • Train wholesalers’ and retailers’ salespeople Territory management: • Gather and analyze information on customers, competitors’ general market developments • Disseminate information to appropriate personnel within salesperson’s company • Develop sales strategies and plans, forecasts, and budgets. Professional development: Participate in: • Sales meetings • Professional associations • Training programs Company service: • Train new salespeople • Perform civic duties

Sales jobs differ from other jobs because salespeople… � � � � � implement a firm’s marketing strategies in the field. are authorized to spend company funds. represent their company to customers and to society in general. represent the customer to their companies. operate with little or no direct supervision and require a high degree of motivation. frequently face rejection. need more tact and social intelligence. travel extensively, which takes time from home and family. have large role sets. face role ambiguity, role conflict, and role stress.

Sales Management Responsibilities Strategic planning (Figure 1 -5) Organizing the sales force Performance evaluation Communication Coordination Integration Recruiting, selection, assimilation Motivation and supervision Training and development

(Figure 1 -6) Executive Ladder in Personal Selling President Vice president of sales National sales manager Regional/divisional sales manager District sales manager Sales supervisor Salesperson Staff assistants available for advice and support at any step along the ladder.

(Figure 1 -7) Executive Ladder in Team Selling President Vice president of marketing Distribution logistics specialist Client-team leader Customer sales/service representative Product engineer

Sales Force Management Challenges in the 21 st Century � Selling by executives � Customer relationship management (CRM) � Sales force diversity � Complex channels of distribution � An international perspective � Ethical behavior and social responsibility