Part I THE BIG PICTURE Chapter 1 Introduction

Part I THE BIG PICTURE Chapter 1: Introduction to Selling and Sales Management

Learning Objectives n Describe the major changes taking place in selling and the forces causing these changes. n Define sales management. n Describes the sales management process. n Discuss the competencies required to be a successful sales manager.

The Customer is King.

Sales Management “I don’t care how many degrees you have on the wall, if you don’t know how to sell, you’re probably going to starve. ” Heavyweight boxer George Forman’s advice to his children L. A. Times, pg. C 2, Tuesday, March 25, 1997

PERSONAL SELLING n According to the U. S. Department of Labor’s, people working in sales number close to 12 million, or about 10 percent of the total workforce in the United States. n Personal selling is critical to the sale of many goods and services, especially major commercial and industrial products and consumer durables, and can be defined as:

PERSONAL SELLING n Direct communications between paid representatives and prospects that lead to transactions, customer satisfaction, account development, and profitable relationships.

Marketing Management n Marketing Management (Kotler): is the analysis, planning, implementation, and control of marketing programs designed to create, build, and maintain mutually beneficial exchanges and relationships with target markets for the purpose of achieving organizational objectives.

Personal Selling is the Core of Marketing.

Marketing and Selling Concepts Contrasted Starting Point Factory Focus Products Means Selling and Promoting Example Ends e. g. , Profits through Volume (a) The Selling Concept Market Customer Needs Integrated Marketing e. g. , Profits through Satisfaction (b) The Marketing Concept

Marketing and Selling Concepts Contrasted – What is the difference between marketing and selling? – “The difference between marketing and selling is more than semantic. Selling focuses on the needs of the seller, marketing on the needs of the buyer. Selling is preoccupied with the seller’s need to convert the product into cash; marketing with the idea of satisfying the need of the customer …. ”

Figure 1 -1: Positions of Personal Selling and Sales Management in the Marketing Mix Marketing mix Products Prices Promotion Distribution Advertising Public relations Personal selling Sales promotion Internet Sales management Planning Budgeting Recruiting and selecting Training Motivating Compensating Designing territories Evaluating performance

What Creates Satisfied Customers? A Total Customer Solution Competence of the Salesperson Quality of Product or Service Competitive Price

Personal selling n involves two-way communication with prospects and customers that allows the salesperson to address the special needs of the customer. n Perhaps the most important advantage of personal selling is that it is considerably more effective than advertising, public relations, and sales promotion in identifying opportunities to create value for the customer and gaining customer commitment.

Sales management n Sales management can thus be defined as: n The planning, organizing, leading, and controlling of personal contact programs designed to achieve the sales and profit objectives of the firm. n all managers have two types of responsibilities n Achieving or exceeding the goals established for performance in the current period n Developing the people reporting to them

A CHANGING MARKETPLACE:

A CHANGING MARKETPLACE: n Competition Today, the number of competitors in most markets has literally exploded. In this section, we explore three key reasons for this development—globalization of markets, shorter product cycles, and a blurring of market boundaries. n 1 -Globalization : (like Chinese product ) , as the huge technological advances in all parts of our life , there an increase in the competition , so every thing become complex. n 2 -shorter product cycles : technology decrease the time needed to convert input to output , so the production life cycle affect our buying patterns as example : (if it take 2 years to produce a plane , you couldn’t replace it every 1 year ) Life span : relatively TV modified or produce new model each year ( like mobile , computers , cars , because ( let people follow new thing ). n 3 - blurred boundaries : remove boundaries for companies.

A CHANGING MARKETPLACE: n Customers : n 1 -Fewer Suppliers : make the cost lower , so people prefer wholesaler who have directly relationship with the customer. n 2 -Rising Expectation : ( the customer have more awareness ) and now he able to know everything about the product , and because he ask always for the information related to the product , so the company must expect what customer problems are. n 3 -Increasing Power : the relationship between customer and supplier ( in the past the relationship are as follows , first come the manufacturer then the supplier then the customer ) but now because a huge numbers of customers , suppliers play as a representative for the manufacturer. when supplier deal with many product for manufacturer , the result is a decrease of cost of suppliers that the company pay for them or him.

selling process : 1 -Relationship Selling : n Relationship selling involves creating customer value by addressing important customer problems and opportunities through a supplier-customer relationship that is much more intimate than that of traditional transactional selling. relationship selling requires a greater level of trust and commitment by both parties.

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 Sales/revenue Focus Profit management focus/ Share of customer Traditional customer relationships Trusted business advisor and partner

selling process : n n Ø Ø Ø n 2 -Sales team : with multiple contacts being established between parties. This model allows for a broader transfer of capabilities and communications. Companies now give a big deal or great attention to work as teams because teams mean experience low cost do the job better this allows for a broader transfer of capabilities and communications , notice also that both the buyer and seller must change , but not all buyers and sellers are prepared to make these adjustments.

Figure 1 -4: Traditional Buyer-Seller Interface versus A Team Interface TRADITIONAL BUYER-SELLER INTERFACE Sales Supplier Purchasing Customer BUYER-SELLER INTERFACE TEAM Sales Team Supplier Customer Team 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 maker’s personal needs 5. Be prepared for “buyer remorse”

selling process : n n n 3 -Inside selling : some people spend more time selling for customer in the company rather than go and attack new buyers and make new deals or make some selling process. 4 -productivity metrics : Productivity = out puts /In puts Historically, sales performance metrics were simple —increase revenue over the previous year. Sales managers typically rewarded and compensated salespeople by evaluating sales volume over a certain period of time. Although sales volume is still important, companies are discovering that not all sales are equally profitable.

Profitability often depends on the following: n • The amount of time necessary to complete the sale n • The gross margins associated with the sale n • The level of price discounting n • The amount of promotional support n • The amount of post-sale support n • The impact of future product sales

A Sales Force Manager’s Skill Set § Willingness to Train/Coach § Willingness to Make Joint Sales Calls § Ability to Direct and Control Others § Profit Mentality § Initiative

THE SALES MANAGEMENT PROCESS : n The sequence of activities that guides managers in the creation and administration of sales programs for a firm is known as the sales management process.

THE SALES MANAGEMENT PROCESS : n Focusing on the Big Picture n Roles of the Sales Force n Structuring the Sales Force n Building Sales Competencies n Leading the Sales Force

THE SALES MANAGEMENT PROCESS : n Focusing on the Big Picture: Mean interpret the company strategy and a firm's marketing strategy and a firm's strategic sales force program , so when you work as salesperson or any jobs in sales try to make your job plans and goals go with the department goals and with the company goals … n Roles of the Sales Force: The role of sales force in implementation market strategy must appear and have a big portion. n Structuring the Sales Force: Affect selling skills and knowledge level required of salespeople (which affect compensation, recruitment, training , and evaluation ) which in turn affect how the customers see the firm.

THE SALES MANAGEMENT PROCESS : n Building Sales Competencies: ( we will talk a lot about it later on ) but for now its mean the abilities and the capabilities that the salespeople must have to can work effectively in sales job. n Leading the Sales Force: (models of behaviors develop trust between you as a manger And your employees in sales department, rapport or good relation with subordinates can be build as a result )

Figure 1 -5: A Model of Sales Management Competencies Technology Competency Global Perspective Competency Strategic Action Competency Sales Management Effectiveness Self. Management 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 firm’s 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 firm’s strategy implementation

Coaching Competency Dimensions Providing Verbal Feedback: § Provides specific and continuous performance and selling skills feedback § Builds a feeling of appreciation and recognition by taking the time to acknowledge a job sell done, and effort beyond the call of duty or an important victory § Reinforces successes and nice-tries to support desirable behaviors

Coaching Competency Dimensions Role Modeling: § Leads by example, rather than decree § Provides role models, either themselves or others, and sharing best practices § Models professional attitudes and behaviors

Coaching Competency Dimensions Trust Building: § Maintains good rapport with the sales team and fosters open communications, collaboration, creativity, initiative, and appropriate risk taking § Adds value through communicating relevant selling experiences § Helps salespeople to “look good” through twoway communications

Teambuilding Competency Dimensions Designing Teams: § Implements an organizational architecture that will support 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 § Integrates the individual members of the sales team together to form a functioning supportive team

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 organization’s 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

Technology Competency Dimensions Implementing Sales Force Automation: § Knows what is to be accomplished and the benefits that are possible § Adapts personal management style and procedures § Fosters sales force acceptance and use of selling technology