1. Introduction to Sales Management and Its Evolving Roles
Chapter 1
Introduction to Sales Management and Its Evolving Roles
PowerPoint presentation prepared by
Dr. Rajiv Mehta
New Jersey Institute of Technology

2. Chapter Outline What Is Sales Management?
Types, Titles, and Hierarchical Levels of Sales Managers
Responsibilities and Duties of Sales Managers
Expanding Roles of Sales Managers
What Qualities Are Needed to Be a Sales Manager?
Source: Flying Colours Ltd.

3. Chapter Outline Integrating Sales Management and Marketing Management
Monitoring and Adapting to the Macroenvironment
How Well Are Sales Managers Performing?
Developing Sales Managers for the New Millennium
Author: There is no “Information Management Tools” section in the Table of Contents for the book. Delete Information Management Tools?
Source: Flying Colours Ltd.

4. Learning Objectives
After reading this chapter, you should be able to do the following:
1. Summarize the basic responsibilities and evolving roles of sales management.
2. Demonstrate how sales managers can better integrate their roles with marketing management.
3. Identify and prepare for megatrends that will affect your future in sales management.
4. Evaluate the selection criteria for sales management and compare them to your present and potential qualifications.
5. Analyze how the sales manager’s job is expanding and what it will mean for your career.

5. What Is Sales Management?
Few jobs are more crucial to the ultimate success of a business than sales management.
Sales management shapes and determines nearly all the firm’s interactions with customers.
Sales managers oversee the sales force—the direct income producers who determine the financial health of their organizations.

6. Types, Titles, and Hierarchical Levels of Sales Managers

7. Hiring Sales Managers/Leaders
To see a video on hiring sales managers/leaders, go to
To read the “Top Tips for the Newly Appointed Sales Manager,” go to

8. Responsibilities and Duties of Sales Managers
Sales managers plan, lead, and control the selling activities of their organizations.
They continuously monitor and adjust their marketing strategies to dynamic technological, competitive, economic, legal, and cultural factors.
Sales managers also consider the interests of the company's stakeholders, such as these:
employees
suppliers
financial community
media
stockholders
special interest groups
governments

9. Figure 1.1: Responsibilities and Duties of Sales Managers: A Conceptual Framework

10. Twenty-First Century Sales Force Management
Chapters 1–4 will help you understand the following:
Introduction to Sales Management and Its Evolving Roles (chapter 1)
Managing Ethics in a Sales Environment (chapter 2)
Customer Relationship Management and Building Partnerships (chapter 3)
The Selling Process (chapter 4)

11. The Definition of Selling
To see a video on the definition of selling and the role of the sales manager in managing the sales management function, go to

12. Sales Forecasting and Budgeting
Sales Forecasting and Budgeting (chapter 5) shows how sales managers accomplish the following:
estimate market potential for their industry
estimate sales potential for their company
develop a final sales forecast
Sales managers employ these skills:
quantitative sales forecasting approaches
qualitative sales forecasting approaches
A sales budget is a financial plan of expenditures needed to accomplish the organization’s goals and objectives.

13. Sales Force Planning and Organizing
Sales Force Planning and Organizing (chapter 6) provides guidelines and direction for most other sales decisions and activities.
Sales managers need to do the following:
set sales goals and objectives
establish sales policies and procedures
devise sales force strategies and tactics
implement controls
Sales managers must determine these things:
the optimal number of salespeople to hire
the best way to structure the sales force (geographically, by product, by customer type, or by some combination of these factors)
Source: Flying Colours Ltd.

14. Time and Territory Management
Time and Territory Management (chapter 7) helps sales managers determine which accounts their salespeople should call on, when, and how often.
Sales managers must do the following:
design sales territories
decide individual sales quotas
design a formal routing pattern for salespeople to follow in calling on customers

15. Recruiting and Selecting the Sales Force
Recruiting and Selecting the Sales Force (chapter 8) deals with sales managers taking these actions:
identifying sources of potential sales recruits
devising a system for measuring candidates against predetermined job requirements using numerous tools and techniques
deciding whether to select or reject each applicant
Source: Stockbyte

16. Training the Sales Force
Training the Sales Force (chapter 9) deals with designing programs to train salespeople.
Sales managers must answer several questions:
Who should receive the training?
Who should do the training?
Where, when, and how should the training be accomplished?
What should be taught?
Source: Stockbyte

17. Sales Force Leadership
Sales Force Leadership (chapter 10) is the emotional process of exercising psychological, social, and inspirational influence on individual salespeople and the sales force collectively toward the achievement of organizational objectives, goals, and values.
Several different theories, concepts, and approaches to effective sales force leadership are explored.
Source: Flying Colours Ltd.

18. Sales Force Motivation
Sales Force Motivation (chapter 11) deals with the set of dynamic interpersonal processes that stimulate the initiation, direction, intensity, and persistence of work-related behaviors of salespeople toward attaining organizational goals and objectives.
Three types of theories that can be used to motivate the sales force:
content theories of motivation
process theories of motivation
reinforcement oriented theories of motivation
Source: Triangle Images

19. Sales Force Compensation
Sales Force Compensation (chapter 12) deals with all monetary payments and benefits used to remunerate and influence the performance of salespeople.
Most companies use three main methods:
straight salary—a fixed amount of money at fixed intervals, such as weekly or monthly
straight commission—an amount that varies with results, usually sales or profits
combination—a mix of salary and commission
Source: PhotoLink

20. Sales Volume, Costs, and Profitability Analysis
Sales Volume, Costs, and Profitability Analysis (chapter 13) is essential to assure the organization’s bottom‑line goal of improving profitability.
Sales managers need to analyze sales volume, costs, and profit relationships by product lines, territories, customers, and salespersons as well as across sales and marketing functions.
Source: Triangle Images

21. Sales Force Performance Evaluation
Sales Force Performance Evaluation (chapter 14) must be measured and evaluated to determine commissions and bonuses for salespeople and to make promotion decisions.
Performance evaluation is used to do the following:
improve sales force productivity
take corrective actions to improve organizational profitability and performance
Source: Triangle Images

22. Changing with the Times
Old Marketing Perspective

23. A Formal Definition of Marketing
The new official definition of marketing approved by the AMA in 2004 appears below.
“Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.”
Marketing is moving from a transaction orientation to a customer relationship building orientation.
New AMA definition shifts the perspective more to the customer side by focusing on delivering value and managing customer relationships.

24. Changing with the Times
New Marketing Perspective
moved away from a transaction orientation
focuses on delivering value to customers
focuses on building long-term customer relationships
focuses on managing customer relationships

25. Expanding Roles of Sales Managers
Based on the new marketing definition, there are three major implications for sales managers:
achieve a continuing dialogue with customers,
personalize treatment of valued customers,
increase customer retention.
build ongoing relationships and mutually profitable partnerships with customers,
encourage salespeople to go beyond selling and serve as consultants and partners.
work with
telesalespeople,
telemarketers,
e-commerce salespeople,
direct mailers,
manufacturers’ agents.

26. What Qualities Are Needed to Be a Sales Manager?

27. The Field Sales Force and Headquarters Marketing Support Team

28. The Field Sales Force and Headquarters Marketing Support Team

29. Aligning Sales with Marketing
To see an excellent video on aligning sales with marketing, go to

30. What Marketing Can Learn from Sales
To learn about what marketing can learn from the sales department, go to

31. Megatrends Affecting Sales Management
Sales managers must adapt to three major megatrends to enhance their effectiveness and efficiency:
1. behavioral forces
2. technological forces
3. managerial forces
Source: Flying Colours Ltd

32. Behavioral Megatrends Affecting Sales Management
Buyers’ attitudes, preferences, and behaviors are changing, necessitating modification of selling strategies and approaches.
1. Behavioral Forces
more expert and demanding buyers
rising customer expectations
micro-segmentation of domestic markets
expanding power of giant retailers
empowerment of customers
globalization of markets

33. Technological Megatrends Affecting Sales Management
Today’s successful sales managers are those who can make skillful and efficient use of technology to increase their efficiency and productivity in serving customers.
2. Technological Forces
These include:
sales force automation
virtual sales offices (home, automobile, or virtually anywhere)
electronic commerce
Source: Digital Vision

34. Technological Megatrends Affecting Sales Management
Sales Force Automation
portable computers
electronic data interchange
videoconferencing
multifunction cell phones and satellite pagers
voice mail and
instant messaging
Source: Digital Vision
Virtual Sales Offices
Electronic Commerce
Home
Office
Virtually anywhere
Internet:
blogs, podcasting
screen-sharing, WebEx
Intranet
Extranet

35. The Use of Technology (Part 1)
To see a video on the effective use of technology for generating leads to sell, go to

36. The Use of Technology (Part 2)
To see a video on the effective use of technology for identifying prospects to sell, go to

37. Using Technology to Sell Better
Salespeople can enhance their productivity by using telecommunication tools
Intranets
Extranets
Computers
Fax machines
Pages
Cell phones
Source: Triangle Images

38. Using Technology to Sell Better
For an interesting article on technology-enabled selling, see
For an interesting article on how technology can build profitable relationships and deliver increased returns, see
Examples of technologies that salespeople are using include
The first and third links on this page do not work (computer world and cingular).

39. Technological Megatrends Affecting Sales Management
Mobile virtual sales offices
portable computers (notebook, handheld, and pocket PCs)
electronic data interchange
videoconferencing (via desktop, laptop, or handheld computers)
multi-function cell phones and satellite pagers
voice mail, , and instant messaging
Sales force automation
Internet
-- blogs
-- podcasting
-- screen-sharing
-- WebEx
Extranets
Intranets
Technological
megatrends
affecting
sales
management
Electronic commerce

40. Managerial Megatrends Affecting Sales Management
3. Managerial Forces
efforts to reduce selling costs
shift to direct marketing alternatives
certification of salespeople
shortage of business-to-business salespeople
developments in information management
Source: Flying Colours Ltd

41. Managerial Megatrends Affecting Sales Management
direct mail (catalogs, brochures, and sales letters)
telemarketing
teleselling
personalized
kiosks
facsimile
Shift to direct-marketing alternatives
database marketing
data warehousing
data mining
push technology
Managerial megatrends
affecting
sales
management
Developments in Information Management
Selling cost reduction efforts
Mobile virtual
sales offices
Professional
certification
of salespeople

42. Managerial Megatrends Affecting Sales Management
Efforts to Reduce Selling Costs
Median cost of a business-to-business sales call is more than $250 (varies widely by industry and company).
For some large industrial companies, a sales call can cost $400 to $1,000 or more because of the unusual complexity of both the selling process and the product itself.
To reduce selling costs, many manufacturers and service providers are aggressively seeking alternatives to large national sales forces (for example, use of middlemen, part-time salespeople, and direct-marketing efforts).

43. Managerial Megatrends Affecting Sales Management
Shift to Direct Marketing Alternatives
To sell to organizational buyers, several direct marketing alternatives support or bypass field salespeople:
direct mail
forms of telemarketing
teleselling
kiosks (or computer salespeople)
facsimile
personalized
Source: © Mark Karrass/Corbis

44. Managerial Megatrends Affecting Sales Management
Certification of Salespeople
Because of the public’s negativism toward selling, efforts have been directed at certifying sales personnel.
Certification usually requires that a salesperson do these things:
gains a certain amount of practical experience
enrolls in educational seminars and courses
passes a sales competency exam
provides some professional references
agrees to comply with a code of conduct
Source: © Mark Karrass/Corbis

45. Certification of Salespeople
For an interesting article on certification of salespeople, see
Salespeople can attend professional certification programs offered by firms such as
Au: The first link on this page does not work. Please fix.

46. Information Management Tools
Sales managers and salespeople can adapt to megatrends using various information management tools.
The four key trends in the management of information include these:
(1) database marketing
(2) data warehousing
(3) push technology
(4) data mining

47. Information Management Tools
1. Database marketing: A database is a large computerized file of customers’ and potential customers’ profiles and purchase patterns.
2. Data warehousing: A data warehouse is a very large, corporate-wide database, built with data from a number of information systems already in place in the company.
3. Push technology: Push technology is the latest iteration of combined with data warehousing to discern what your customers need and exactly when they need it.
4. Data mining: Data mining is the process of using statistical analysis to detect relevant patterns or relationships between and among variables in a database.

48. Information Management Tools
A database is a large computerized file of customers’ and potential customers’ profiles and purchase patterns.
Push technology is the latest iteration of combined with data warehousing to discern what your customers need and exactly when they need it.
Data mining refers to the process of using statistical analysis to detect relevant patterns or relationships between and among variables in a database.
A data warehouse is a very large, corporate-wide database, built with data from a number of information systems already in place in the company.
Au: The text on this slide is identical to the text on the previous slide. Do you want to delete one of these redundant slides?

49. How Well Are Sales Managers Performing?
Some major reasons why some sales managers may fail to perform at higher levels are these:
illogical selection of sales managers
inadequate sales management training
lack of a long-run customer relationship orientation
insufficient blending of sales, marketing, and financial knowledge

50. Sales Management Hierarchy: Skill and Ability Requirements
Interpersonal Skills
Developing Leadership Ability
Salesperson
Sales
supervisor
District
sales
manager
Regional
National
Vice
president
of sales
Selling
ability
Supervisory
Managerial
Administrative and leadership ability

51. Developing Sales Managers for the New Millennium
To succeed in the years ahead, sales managers will need to focus on the following:
developing closer relationships with customers
treating salespeople as newly empowered equals
applying flexible motivational skills in working with a multicultural, hybrid sales force
keeping up-to-date on the latest technologies
learning marketing and financial skills in order to recommend competitive strategies
continually seeking ways to exceed customer expectations

52. Ethical Situation: What Would You Do?
On a sales call on one of your company’s best customers, the purchasing agent smilingly tells your salesperson: “I had a special arrangement with the salesperson who used to call on me from your company. Every time I placed an order, the sales manager arranged a special gift for me. Are you going to continue that policy?”