1. Part One: Strategic Planning
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2. Introduction to Sales Management
Chapter 1
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

3. Learning Objectives
Define strategy hierarchy and understand how sales and marketing strategies affect overall strategy
Identify different types of selling strategies and how the selling process varies
Describe the sales management process and responsibilities and activities of sales managers
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

4. Managing Sales Force Is Important
Sales positions are hardest to fill
Sales consumes >20% of a firm’s revenue
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

5. $$$
Sales starting salaries are ~20% higher than other marketing positions
Many CEOs get their start in sales
Sales managers earn more than managers in other areas
Sales jobs predicted to grow at a faster rate than other professions
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

6. From Sales Rep to Sales Manager
“Manager of people”
Sales success is poor predictor of success as sales manager
Most successful sales reps are eventually pressured to make the transition to sales mgmt
“This is a decision that must be carefully analyzed because it’s not an easy transition to go from being a player to a coach.”
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

7. What Being a Sales Manager Means
Coaching
Coaching salespeople so they can improve
Developing
Developing strategies and delegating the responsibility for implementation to others
Motivating
Figuring out how to motivate people, some who are older than you
Convincing
Convincing others that what is right for the sales force is right for their departments, too
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

8. Establishing the Parameters of the Firm’s Strategy: The Mission Statement
Inspire the members of an organization
Give purpose to their actions
Guide their decision-making
Serve as a standard against which decisions can be weighed
Once the mission’s objectives are set, strategy can be created
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

9. Sample Mission Statements
Everything we do is inspired by our enduring mission:
To Refresh the World in body, mind, and spirit
To Inspire Moments of Optimism through our brands and our actions
To Create Value and Make a Difference everywhere we engage
The mission of Southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit
Coca-Cola
Southwest Airlines
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

10. The Strategy Hierarchy
Corporate strategy encompasses plans and goals for the entire organization
Address questions such as what markets and sourcing options company should engage
Ex: hire sales force vs. use distributors
Ex: outsource mfg and focus internally on marketing
Business units create their plans to support corporate strategy
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

11. The Strategy Hierarchy
Corporate Strategy
Marketing Strategy
Sales Strategy
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12. Creating a Marketing Strategy
Markets
What markets do we serve with what products?
Relationships
What types of relationships do we form and with whom?
Investment
What level of investment will be required, and how will we locate and allocate the needed resources?
Objectives
What are the detailed objectives and action plans?
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

13. What Markets Do We Serve with What Products?
Find a sustainable competitive advantage
Need expertise, technology or a patent
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14. Product-Market Grid
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15. What Types of Relationships Do We Form and with Whom?
Strategic plan considers network of relationships
Investors, potential investors, bankers
Suppliers
Personnel sources
Regulatory agencies
Relationship with customers is most important
A service advantage is often a function of the quality of relationships
Customers’ lifetime value is worth more than the average single purchase
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

16. Customer Relationship Management (CRM): Key Terms
CRM: identifying and grouping customers to best acquire, retain, and grow customers
Sales and marketing teams are responsible for CRM
Customer acquisition strategy: plan to obtain new customers
Customer retention strategy: plan designed to keep customers
Growth strategy: plan designed to increase sales to the same customers
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

17. Global Sales Management: Going Global to Achieve Growth
QuadRep’s expanding customers wanted local support in Singapore
QuadRep opened office in Singapore
Has since followed customers across the globe, opening offices in Malaysia, China, Taiwan, Thailand, the Philippines, and Mexico
Source: Charles Cohon, Vice President of Research of Manufacturers’ Representatives Educational
Research Foundation. He can be reached through his Web site,
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

18. Global Sales Management: Going Global to Achieve Growth
Empire Technical Group’s customers moved mfg and purchasing to Asia
ETG and several other companies formed a consortium and included Asian partners where Asia/Pacific resources were required
Became opportunity to pursue contracts to build entire assemblies as well as just parts
Morphed into international design and assembly house, controlling manufacturing of complete assemblies, turning “a $3 (part) sale to a $103 sale”
Source: Charles Cohon, Vice President of Research of Manufacturers’ Representatives Educational
Research Foundation. He can be reached through his Web site,
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

19. What Level of Investment Will Be Required, and How Will We Allocate the Needed Resources?
Money, human or social capital
Human capital decisions include:
Determining number of salespeople
What skills and experience they must have
What training they require
Other decisions include:
Whether to hire telephone prospectors or to outsource
Who handles customer service (a sales rep or a customer service rep)
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

20. What Are the Detailed Objectives and Action Plans?
SMART format for establishing objectives S
pecific M
easurable A
chievable, yet challenging R
ealistic T
ime-based
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

21. Self-Assessment Library
Go to
Access code came with your book
Click the following
Assessments
I. What About Me
C. Motivation Insights
5. What Are My Course Performance Goals?
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

22. Selling Approaches Finish sale as quickly and as easily as possible
Transactional
Finish sale as quickly and as easily as possible
Key to success is making as many calls as possible to as many people as possible
Affiliative
Based on the friendship between the salesperson and the individual buyer
Problem Solving or Consultative
Identify and solve a client’s problems
Also called needs-satisfaction selling or problem/solution selling
Enterprise
Business-to-business (B2B) concept
Based on not only person-to-person relationships but on company-to-company relationships
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23. The Selling Approach: 8 Steps
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

24. Prospecting
Prospecting involves identifying potential customers for a particular product or service
A prospect is a MAD buyer
the Money to spend
the Authority to buy
the Desire to buy it
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25. Pre-Approach
During Pre-Approach, the salesperson tries to learn everything he can about the account
Can take a significant amount of time
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26. Approach Approach: salesperson asks buyer to commit to a meeting
Opening statement must get buyer’s attention
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27. Needs Identification
Needs identification: salesperson confirms prospect is MAD (Money, Authority, Desire)
Comprised of 3 elements
Questioning 1
Identification 2
Pre-commitment 3
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28. Presentation
Presentation: salesperson describes product and how it meets buyer’s needs
Feature
Evidence
Benefit
Agreement
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29. Handling Objections
Objections: reasons a buyer offers to not buy your product
Can occur at any time
Salesperson should find out root of concern and resolve it
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30. Closing the Sale Close: when salesperson asks buyer for the sale
Good close
Reinforce decision to buy
Confirm implementation schedule
Thank the buyer
Ask for referral
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

31. Implementation/Follow-Up
Follow-Up: After delivery, ensure that the customer has good experience with product
Training, service, policies and procedures
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

32. Selling Process vs. Selling Approach
Transactional
Prospecting
Affiliative
Consultative
Closing
Presenting
Enterprise
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33. Sales Leaders
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34. Sales Executive Plan Organize Implement Monitor
Devise sales plan to meet strategic objectives
Develop general strategies that specify sales approach
Organize
Determine type of sales force
Create hiring and training policies and strategies
Implement
Communicate and roll out the plan
Create the right culture
Choose a compensation model
Monitor
Sales and customer satisfaction
Salesperson recruitment, selection, training
Take corrective action as necessary
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

35. Field Sales Manager
Plans, organizes, implements, and monitors for specific sales team
Salespeople report to Field Sales Manager
Primary responsibility is sales quota
Responsible for training and motivating salespeople
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

36. Sales Executive vs. Sales Manager Duties
Activity
Sales Executive
Sales Manager
Plan
Set overall sales targets for each product
Set quotas for each salesperson for each product
Organize
Decide what type of people to hire for sales positions
Interview and hire specific people for sales positions
Implement
Determine the compensation plan
Identify each person’s motivators and find ways to reward good performance for each person
Monitor
Track sales by region; take corrective action such as additional training if sales are too low
Observe each salesperson’s actions in the field and offer suggestions for their improvement
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

37. Ethics in Sales Management: Maintaining NCR’s Ethical Sales Culture
We … recognize that selling only works when everything is right for the customer—when we deliver value
—Rick Makos President, NCR-Canada
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

38. Role Play: T&G Supply Opportunity 1: T&G Supply
Provides maintenance, repair, and operations items to manufacturers
Janitorial products, hardware products to fix machines, and other common maintenance products
Opportunity 2: Columbia Leasing
Car rental and leasing company
Your job is to sell corporate contracts
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

39. Role Play (continued): Action Steps
Break into pairs
Each person picks 1 company to play sales mgr
Think about issues that reflect a service-dominant logic in each situation
Using other concepts discussed in the chapter, identify three characteristics that you would want each new salesperson to have
Take turns interviewing your partner for a sales position
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

40. Caselet 1.1: Killebrew Manufacturing
Makes plastic patio products
Widow Francine took over company
Annual growth rate ~5% for past 20 years
Trying to grow company
10% introductory discount
Makes prices same as biggest competitor
Killebrew quality is much better
Problem: Few new accounts are reordering
Are salespeople too quick to sell price, not quality?
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

41. Caselet 1.1 (continued): What Would You Do?
Quality must be demonstrated and sold
What sales process or approach should Francine consider?
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

42. Caselet 1.2: Morton’s Ice House
Grill and microbrewery
Owner Sherry Morton hired Trey Denton to sell franchises
Trey sold 12 franchises in 1 year
Corporate goal is to sell 200 franchises in next 2 yrs
Hired 5 salespeople for Trey to manage
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

43. Caselet 1.2 (continued): What Would You Do?
Problems
Salespeople calling on same prospects
Other prospects not being called on
Sold only 22 franchises in 6 months
2 salespeople quit
10 franchises want out of contracts
What should Sherry do?
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

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