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Part I

THE BIG PICTURE

Chapter 1:

Introduction to Selling and

Sales Management

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If you sincerely believe that “the customer isking”, the second most important person in

this kingdom must be the one who has a

direct interaction on a daily basis with theking.

MICHAEL BONCHAIRMAN & CEO, FRANCE TELECOM

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Sales Management

“I don’t care how manydegrees you have on the

wall, if you don’t know how

to sell, you’re probablygoing to starve (havenothing to eat) .”

Heavyweight boxer George Forman’sadvice to his childrenL.A. Times, pg. C2, Tuesday, March 25, 1997

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SALES MANAGEMENT

The planning , organizing ,

leading and controlling ofpersonal contact programsdesigned to achieve the

sales and profit objectivesof the firm

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SALES MGT PROCESS

. The sequence of activities that guides managers in thecreation and administration of sales programs for a firm

1. Focusing onthe big picture

5. Leading thesales force

3. Structuring thesales force

4. Building salescompetencies

2. Roles ofsales force

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PERSONAL SELLING

According to the U.S. Department of Labor’s,people working in sales number close to 12million, or about 10 percent of the totalworkforce in the United States.

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Marketing Management

Marketing Management (Kotler):

is the analysis, planning, implementation, andcontrol of marketing programs designed tocreate, build, and maintain mutually beneficialexchanges and relationships with targetmarkets for the purpose of achievingorganizational objectives.

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Marketing and Selling ConceptsContrasted

Factory ProductsSelling

and

Promoting

e.g., Profitsthrough

Volume(a) The Selling Concept

StartingPoint Focus Means Example Ends

Market CustomerNeedsIntegratedMarketing

e.g., Profitsthrough

Satisfaction

(b) The Marketing Concept

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Marketing and SellingConcepts Contrasted

– What is the difference between marketing andselling?

– “The difference between marketing and sellingis more than semantic. Selling focuses on theneeds of the seller, marketing on the needs ofthe buyer. Selling is preoccupied with the

seller’s need to convert the product into cash;marketing with the idea of satisfying the needof the customer ….”

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Positions of Personal Selling andSales Management in the Marketing Mix

Planning MotivatingBudgeting CompensatingRecruiting and selecting Designing territoriesTraining Evaluating performance

Marketingmix

Products Prices Promotion Distribution

Advertising Public

relations Personal

selling Sales

promotion Internet

Salesmanagement

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What Creates SatisfiedCustomers?

21%

25%

17%

37%

Qualityof Productor Service

A TotalCustomerSolution

Competenceof the

Salesperson

Competitive Price

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Responsibility of SalesManager

Organizing Sales Effort – I n s i d e – ensure effective communication within

and other departments

– O u t s i d e - key contact with customers, and otherexternal Public – Maintaining effective distribution network.

Participation in Key Marketing Decisions

– Budgeting, Products, Marketing Channel, Advertising and other marketing programmes

Handling Distribution Problems

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Objective of SalesManagement

Sales VolumeContribution to Profit

Continuing GrowthSupports to Marketing decisionsCharting the course of futureoperations.

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Nature and Importance ofSales Department

Integration with Marketing Management – Promotion of the product

– Marketing research – Marketing Logistics – Customer Service – Co-Ordination

Relationship sellingVarying Sales responsibilities

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Role and Functions ofSales Manager Executive

Organization and CoordinationPlanning and CoordinationCoordination with other elements in the

marketing programmeCoordination with the distributive Network – Gaining Product distribution – Obtaining Dealer identification – Reconciling business goals – Sharing promotional risksCoordination and implementation of overallmarketing strategy

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Sales Department Relations

Coordination of PersonalSelling with Other

Marketing Activities

• Sales and Advertising

• Sales and Marketing

Information

• Sales and Services

• Sales and PhysicalDistribution

Coordination's ofpersonal selling with

other departments

• Sales and Production

• Sales and Research and

Development

• Sales and Personnel

• Sales and Finance

• Sales and Accounting

• Sales and Purchasing

• Sales and PublicRelations

• Sales and Legal

Sales departmentexternal relations

• Final Buyer Relations

• Industry Relations

• Government Relations

• Educational Relations

• Press Relations

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Sales Vs Marketing

# Selling Marketing

1 Emphasis on Product Emphasis on consumer needsand wants

2Company manufactures theproduct first and then decides tosell it

Company first determines

customers’ needs and wants andthen decides on how to deliver aproduct to satisfy these wants.

3 Management is sales-volumeoriented

Management is profit & customerrelationship oriented

4 Planning is short-term in terms oftoday's product and markets

Planning is long-term oriented, interms of new products tomorrow'smarkets and future growth

5 Stress need of a sellerStresses need and wants ofbuyers

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Sales Vs Marketing

# Selling Marketing

6 Views business as goodsproducing processViews business as consumersatisfying process

7Emphasis on staying with existingtechnology

Emphasis on innovation in everysphere, on providing better valueto the customers by adopting asuperior technology

8Different department work ashighly separate unassailable

compartments

All departments of a businessoperate in an integrated manner,the sole purpose being

generation of consumersatisfaction

9 Selling view customers as the lastlink in businessMarketing view the customers asthe very beginning of a business

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Personal selling

involves two-way communication withprospects and customers that allows thesalesperson to address the special needs ofthe customer.Perhaps the most important advantage ofpersonal selling is that it is considerably more

effective than advertising, public relations,and sales promotion in identifyingopportunities to create value for the customerand gaining customer commitment.

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Sales management

Sales management can thus be defined as: The planning, organizing, leading, and controlling ofpersonal contact programs designed to achieve thesales and profit objectives of the firm.

all managers have two types of responsibilities Achieving or exceeding the goals established forperformance in the current periodDeveloping the people reporting to them

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Types of SellingSelling Function

OrderTakers

OrderCreators

Order Getters

Outside OrderTaker

DeliverySalespeople

Inside

Ordertakers Missionary

Salespeople

Front Linesalespeople

Sales SupportSalespeople

ConsumerSalespeople

OrganizationalSalespeople

NewBusiness

Salespeople

TechnicalSupport

Merchandisers

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EXECUTIVE MANAGEMENT

FUNCTION MANAGEMENT – GENERAL MANAGEMENT

DIRECTOR

ASSOCIATE DIRECTOR

MANAGER

HumanResources

CustomerBusiness

Development

Sector/Multi-Sector

Sales

HumanResources

CustomerBusiness

Development

Sector/Multi-SectorBus. Devel

SectorSales

Merchandising

Geographic

or TeamAccount Exec

Other Field or

General OfficeRoles

OperationsManager

SALES MANAGERGeographic

or TeamAccount Exec

Other Field orGeneral Office

Roles

OperationsManager

WORLDWIDE

ASSIGNMENTS

• Canada

• Latin America

• Asia/Pacific

• Europe

• Middle East& Africa

• U.S.

Figure 1-6:

Career Paths at Procter and Gamble

OTHER

FUNCTIONS

• Advertising

• ProductSupply

• ManagementSystem

• HumanResources

• Finance

• Other