1 Sales Management 2

Part I
THE BIG PICTURE
Chapter 1:
Introduction to Selling and
Sales Management
Sales Management
““II don’t
don’t care
care how
how many
many
degrees
degrees you you have
have on
on the
the
wall,
wall, ifif you
you don’t
don’t know
know howhow
to
to sell,
sell, you’re
you’re probably
probably
going
going toto starve
starve.”.”
Heavyweight boxer George Forman’s

advice to his children
L.A. Times, pg. C2, Tuesday, March 25, 1997
Figure 1-1:
Positions of Personal Selling and
Sales Management in the Marketing Mix
Marketing
mix
Products Prices Promotion Distribution
Public Personal Sales

Advertising Internet
relations selling promotion
Sales
management
Planning Motivating
Budgeting Compensating
Recruiting and selecting Designing territories
Training Evaluating performance
Figure 1-2:
Marketplace Changes and Selling
Consequences
Competition Customers
Global Competition Fewer Suppliers
Shorter Production Cycles Rising Expectations
Blurred Boundaries Increasing Power
Selling Process
Solutions Selling
Sales Teams
Inside Selling
Productivity Metrics
Figure 1-2:
Customer Expectations of
Salespeople
“Be personally accountable for our desired
results”
“Understand our business”
“Be on our side”
“Design the right applications”
“Be easily accessible”
“Solve our problems”
“Be creative in responding to our needs”
Figure 1-4:
Contrasting Transactional and
Solutions Selling Models
TRANSACTIONAL RELATIONSHIP
Emphasis on Emphasis on general
Sales skills Management skills
Respond to Engage customer as
Customer needs collaborative partner
Provide good products, Selling customer solutions
Price, and services
Differentiate through Differentiate through
Products People
Sales/revenue Customer lifetime value

Focus
Traditional customer Trusted business advisor
relationships
Figure 1-5:
Traditional Buyer-Seller Interface
versus A Team Interface
TRADITIONAL BUYER-SELLER
BUYER-SELLER INTERFACE TEAM
INTERFACE
Sales Customer
Sales Purchasing
Team Team
Supplier Customer Supplier Customer

Figure 1-6:
A Model of Sales
Management Competencies
Strategic
Action
Competency
Technology Coaching
Competency Sales Competency
Management
Global Effectiveness Team
Perspective Building
Competency Self- Competency
Management
Competency
Strategic Action Competency
Dimensions
Understanding the Industry:
 Understands the history and general trends in
the industry and their implications for the
future
 Stays informed of and anticipates the actions

of competitors and strategic partners
 Identifies attractive market segments and

their buying needs
Dimensions
Understanding the Organization:
 Understands the vision, overall strategy, and
goals of the organization
 Appreciates the distinctive competencies of

the organization with respect to market
opportunities and limitations
 Understands how to marshal organizational

resources to meet the needs of the customers
Dimensions
Taking Strategic Actions:
 Assigns priorities and making decisions that are consistent
with the firm’s mission and strategic goals
 Implements specific account selection, retention, and

dominance strategies
 Develops an appropriate portfolio of account relationships
 Considers the long-term implications of actions in order to

sustain and further develop the organization
 Establishes tactical and operational goals that facilitate the

firm’s strategy implementation
Coaching Competency
Dimensions
Providing Verbal Feedback:
 Provides specific and continuous performance
and selling skills feedback
 Builds a feeling of appreciation and recognition

by taking the time to acknowledge a job sell
done, and effort beyond the call of duty or an
important victory
 Reinforces successes and nice-tries to support

desirable behaviors
Coaching Competency
Dimensions
Role Modeling:
 Leads by example, rather than decree
 Provides role models, either themselves or

others, and sharing best practices
 Models professional attitudes and behaviors

Coaching Competency
Dimensions
Trust Building:
 Maintains good rapport with the sales team and
fosters open communications, collaboration,
creativity, initiative, and appropriate risk taking
 Adds value through communicating relevant

selling experiences
 Helps salespeople to “look good” through two-

way communications
Teambuilding Competency
Dimensions
Designing Teams:
 Implements an organizational architecture that will
support teams
 Creates a reward system that is fair within the

context of a team effort
 Coordinates team goals with the overall goals of

the organization
 Coordinates team activities with the requirements

of functional areas within the organization
Dimensions
Creating a Supportive Environment:
 Hires people that will be successful in a team
environment
 Trains programs that encourage teamwork
 Integrates the individual members of the

sales team together to form a functioning
supportive team
Dimensions
Managing Team Dynamics:
 Understands the strengths and weakness of
team members and using their strengths to
accomplish tasks as a team
 Facilitates cooperative behavior and keeps

the team moving towards its goals
Self-Management Competency
Dimensions
Fostering Integrity and Ethical Conduct:
 Has clear personal standards that serve as a
foundation for a sense of integrity and ethical
conduct by the sales team
 Projects self-assurance and does not just tell

people what they want to hear
 Willing to admit mistakes and accepts

responsibility for own actions
Dimensions
Managing and Balancing Personal Drive:
 Seeks responsibility, works hard and is willing to
take risks
 Shows perseverance in the face of obstacles and
bounces back from failure
 Ambitious and motivated to achieve objectives, but
does not put personal ambition ahead of the
organization’s goals
 Understands that goals are achieved through the
success and development of the salespeople
Dimensions
Developing Self-Awareness and

Management Skills:
 Has clear personal and career goals and knows
own values, feelings and areas of strengths and
weaknesses
 Analyzes and learns from work and life experiences
 Willing to continually unlearn and relearn as

changing situations call for new skills and
perspectives
Global Perspective Competency
Dimensions
Cultural Knowledge and Sensitivity:

 Stays informed of political, social, and economic
trends and events around the world
 Recognizes the impact of global events on the
market and the organization
 Sensitivity to cultural cues and ability to adapt
quickly in novel situations
 Travels regularly and has a basic business
vocabulary in languages relevant to the position
Global Perspective Competency
Dimensions
Adapting Global Selling Program:

 Adopts an appropriate sales force architecture for
global accounts
 Appropriately adjusts sales force measurement,
competency creation and motivation systems to the
local culture
 Appropriately adjusts own behavior when
interacting and managing people from various
national, ethnic and cultural backgrounds
Technology Competency
Dimensions
Understanding of New Technology:
 Awareness of the potential for technology to
increase sales force efficiency and
effectiveness
 Experience in using new technology
 Attitude toward adopting new technology

Technology Competency
Dimensions
Implementing Sales Force Automation:
 Knows what is to be accomplished and the
benefits that are possible
 Adapts personal management style and

procedures
 Fosters sales force acceptance and use of

selling technology
Figure 1-6:
Career Paths at Procter and Gamble
EXECUTIVE MANAGEMENT
FUNCTION MANAGEMENT – GENERAL MANAGEMENT
WORLDWIDE DIRECTOR OTHER

Customer Sector/
ASSIGNMENTS Human FUNCTIONS
Business Multi-Sector
Resources
• Canada Development Sales • Advertising
• Latin • Product
America ASSOCIATE DIRECTOR Supply
• Asia/Pacific Customer Sector/ Sector • Management
Human
Business Multi-Sector Sales
Resources System
• Europe Development Bus. Devel Merchandising
• Middle East • Human

& Africa Resources
MANAGER
• U.S. Geographic Other Field or • Finance
Operations
or Team General Office
Manager
Account Exec Roles • Other
ACCOUNT MANAGER
Geographic Other Field or
Operations
or Team General Office
Manager
Account Exec Roles

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Part I

THE BIG PICTURE

Heavyweight boxer George Forman’s

Products Prices Promotion Distribution

Public Personal Sales

Sales/revenue Customer lifetime value

Supplier Customer Supplier Customer

 Stays informed of and anticipates the actions

 Identifies attractive market segments and

 Appreciates the distinctive competencies of

 Understands how to marshal organizational

 Implements specific account selection, retention, and

 Develops an appropriate portfolio of account relationships

 Considers the long-term implications of actions in order to

 Establishes tactical and operational goals that facilitate the

 Builds a feeling of appreciation and recognition

 Reinforces successes and nice-tries to support

 Provides role models, either themselves or

 Models professional attitudes and behaviors

 Adds value through communicating relevant

 Helps salespeople to “look good” through two-

 Creates a reward system that is fair within the

 Coordinates team goals with the overall goals of

 Coordinates team activities with the requirements

 Trains programs that encourage teamwork

 Integrates the individual members of the

 Facilitates cooperative behavior and keeps

 Projects self-assurance and does not just tell

 Willing to admit mistakes and accepts

Developing Self-Awareness and

 Analyzes and learns from work and life experiences

 Willing to continually unlearn and relearn as

Cultural Knowledge and Sensitivity:

Adapting Global Selling Program:

 Experience in using new technology

 Attitude toward adopting new technology

 Adapts personal management style and

 Fosters sales force acceptance and use of

WORLDWIDE DIRECTOR OTHER

• Middle East • Human

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