Sales Management Shaping Future Sales Leaders The Sales

Sales Management: Shaping Future Sales Leaders The Sales Function and Multi-Sales Channels Chapter 2 2 -1 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

The Supply Chain § Complete process of events and people needed to bring product to the customer § Key term Sales forecast: what the salesperson expects to sell in a particular period of time 2 -2 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

Managing the Supply Chain: Active vs. Passive Active § Example: salesperson turns in sales forecast § Salesperson actively seeks to influence what supply chain does § Sales forecast influences what happens in supply chain, but salesperson is not taking active role in influencing chain’s activity § Example: buyer that needs special payment terms will need the salesperson’s help in securing those terms from the company § Example: salesperson might need to arrange expedited delivery in order to meet a buyer’s needs 2 -3 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

Multichannel Environment § Using a number of methods, or channels, to accomplish the selling function 2 -4 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

Strategies to Reduce Sales Force Costs Without Sacrificing Performance § Purifying § Shifting non-selling activities to lower-cost alternatives § Ex using web-sites for customers to track their own orders § Outsourcing § Hiring another company to carry out a task or set of tasks 2 -5 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

Advantages of Company-Employed vs. Outsourced Sales Force Company-Employed § Company can exert greater control over their efforts § Greater control over who is hired § Focus on only the company’s products, whereas an outsourced representative might be free to sell many companies’ products 2 -6 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall. Outsourced § Firm’s selling costs can be shared with other manufacturers, reducing cost per sales call § Established relationships with customers from which the manufacturer can benefit § These can yield greater coverage of the market for the manufacturer

A. Types of Outsourced Salespeople Mfg Rep Mfg Rep Agent Mfg Agent Rep § Independent contractor who does not take ownership of product and does not maintain an inventory Distributor § Sells for many manufacturers and take ownership of products, sell them on consignment, or otherwise maintain an inventory Broker § Represents either buyer or seller and sometimes both, carries an inventory of products but does not take ownership of them 2 -7 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

B. Types of Company-Employed Salespeople Inside Salesperson § Sells at a company’s facilities, either by telephone or in person Field § Sells at the customer’s location Representative Account Manager § Has responsibility for building sales within specific accounts or accounts within a specific area (geographic rep) 2 -8 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

B. Types of Company-Employed Salespeople (continued) Vertical Market § Accounts all operate in the same industry Rep Retail Sales Rep § Sells to consumers who come into stores Trade Rep § Sells to organizations in the supply chain, usually retailers Missionary Salesperson (detail rep) § Sells to people who recommend or prescribe a product to others but do not personally use it 2 -9 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

C, Other Types of Company-Employed Salespeople § Retail Sales representatives § – sell to customers who come into the store § Trade representatives § – sell to organisations in the supply chain § Missionary sales people § – sell to people who recommend or prescribe a product to others but do not personally use it

The art of mixing A+B+C § A company is NOT likely to have missionary, retail and trade salespeople § However the company COULD HAVE a mix of inside, outsourced and company salespeople § It MIGHT also have account managers of various types as well as specialists § Add this complex picture to a multichannel environment!

More on Outsourcing § Can outsource Call Centers § Can outsource parts of the sales cycle § To different sales organizations § Often used to § Enter new markets § Keep costs variable (no overhead) § Leverage market coverage costs (share with others) 2 -12 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

Seamless Integration § Seamless integration: a firm’s customers can easily shift transactions across various channels § Goal: all areas have all the customer information they need so the customer is treated properly 2 -13 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

Alignment § Getting all of functional areas of a firm to work together § This includes the company’s various salespeople–its inside reps, geographic reps, customer service reps, etc. 2 -14 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

Alignment § Alignment occurs at 3 levels Strategic Executives create Tactical Managers support Operational Salespeople engage 2 -15 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

Areas to Align Technology § CRM system used by salespeople also supports marketing Processes and Goals § Lead management 2 -16 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall. Sales Metrics § Marketing & sales have same sales targets for a new product