Sales Management: Mid-Term Test Notes

Sales Management: Mid-Term Test Notes

Chapter 1

SALES MANAGEMENT IN THE 21ST CENTURY: there are dramatic changes, which are being driven by BEHAVIORAL, TECHNOLOGICAL, and MANAGERIAL FORCES. BEHAVIORAL FORCES: are rising customer expectations, globalization of markets, and demassification of domestic markets; TECHNOLOGICAL FORCES: include sales force automation, virtual sales offices, and electronic sales channels; MANAGERIAL FORCES: consist of a shift to direct marketing alternatives, outsourcing of sales functions, and a blending of the sales and marketing functions. CRITICAL ISSUES FOR REINVENTING SALES ORGANIZATION: 1) building long-term relationships with customers, which involves assessing customer value and prioritizing customers; 2) creating sales organizational structures that are more nimble and adaptable to the needs of different customer groups; 3) gaining greater job ownership and commitment from salespeople by removing functional barriers within the organization and leveraging the team experience; 4) shifting sales management style from commanding to coaching; 5) leveraging available technology for sales success; 6) better integrating salesperson performance evaluation to incorporate the full range of activities and outcomes relevant within sales jobs today. 3 KEY THEMES: 1) INNOVATION- willingness to think outside the box, do things differently, and embrace change; 2) TECHNOLOGY- the broad spectrum of technological tools now available to sales managers and sales managers and sales organizations; 3) LEADERSHIP- the capability to make things happen for the benefit of the sales organization and its customers. TRANSACTIONAL SELLING: a series of transactions, each one involving separate organizations entering into an independent transaction involving the delivery of a product or service in return for compensation. RELATIONSHIP SELLING: in today’s highly competitive environment, however, customers realize there are benefits in building relationships b/w themselves and their suppliers. Providing this level of service is expensive, however, and it cannot be provided equally to all customers across the board. As a result, sales managers must prioritize their customers, creating partnerships with some while seeking to maximize efficiencies with others. SALES EFFECTIVENESS IS ENHANCED THROUGH TECHNOLOGY: laptop computers make it easy to have huge databases or complete customer records at the fingertips of the sales person, cellular phones make it possible to communicate with the salesperson almost continuously, and DVDs and other video innovations enhance training and provide excellent tolls for conveying information. The Internet has taken the interaction b/w customer and company to a new level, creating the ability to remain in touch with the customer in ways that have not been possible in the past. LEADING VS MANAGING: is an important distinction for today’s successful sales manager. Effective leadership of salespeople includes; 1) communicating with sales people rather than controlling them, 2) becoming a cheerleader and coach instead of a supervisor or boss, and 3) empowering salespeople to make decisions rather than directing them. Being an effective leader requires new and different skill from the traditional manager role.

SALES MANAGEMENT: as all activities, processes, and decisions involved in managing the sales function in an organization. SALES MANAGEMENT PROCESS: involves three interrelated sets of decisions or processes; 1) FROMULATION OF A SALES PROGRAM: the sales program should consider the environmental factors faced by the firm. Sales executives organize and plan the company’s overall personal selling efforts and integrate these with the other elements of the firm’s marketing strategy. 2) IMPLEMENTATION OF THE SALES PROGRAM: involves selecting appropriate sales personnel and designing and implementing approaches that will direct their efforts toward the desired objectives. 3) EVALUATION AND CONTROL OF THE SALES PROGRAM: involves developing methods for monitoring and evaluating sales force performance through appropriate metrics. Evaluation and control allows for adjustment of the sales program or the way it is implemented when performance is unsatisfactory.

ENVIRONMENTAL FACTORS IMPACT SUCCESS IN SELLING: external and internal environment factors influence sales managers in four basic ways; 1) ENVIRONMENTAL FORCES can constrain the organizations ability to pursue certain marketing strategies or activities. E.g. is when the govt declares the sale of a product to be illegal or when a well-entrenched competitor makes it unattractive for the firm to enter a new market. 2) ENVIRONMENTAL VARIABLES, and changes in those variables over time, help determine the ultimate success or failure of marketing strategies. 3) CHANGES IN THE