Overview of Sales Management and the Selling Environment

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Overview of Sales Management and the Selling
Environment

• Management of the Modern
• Sales Force
• Marketing 6228

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Sales Management in the 21st Century

• Building long-term relationships with customers
• Creating more nimble and adaptable sales
  organizational structures
• Removing functional barriers within the
  organization to create greater job ownership and
  commitment from salespeople

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Sales Management in the 21st Century

• Shifting sales management style from commanding
  to coaching
• Leveraging available technology for sales success
• Integrating salesperson performance evaluation to
  incorporate all activities and outcomes

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Key Themes

• Innovation thinking outside the box
• Technology broad spectrum of tools available to
  salespersons
• Leadership capability to make things happen
• Globalization
• Ethics

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Innovation

• Classical selling involved . . .
• Transaction Selling a series of transactions,
  each one involving separate organizations
  entering into an independent transaction.
• The contemporary shift . . .
• Relationship Selling narrowing the vendor pool,
  improving efficiencies, working directly with
  customers to solve problems. In general,
  salespeople are asked build relationships.

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Technology

• Constant accessibility to people/data via
  computers and mobile phones
• Interactive web presences
• Just-in-Time (JIT) delivery
• Electronic Data Interchange (EDI) in
  manufacturing
• Efficient Customer Response (ECR) in retailing
• Customer Relationship Management Software (CRM)
• Intranets for internal communication
• Extranets to serve all stakeholders

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Leadership versus Managing

• Leading (Mentoring)
• Communicate
• Cheerleader/coach
• Empower to make decisions

• Managing
• Control
• Supervisor/boss
• Direct

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Globalization bridging the culture gap

• View customers in terms of ethnic core values
• Get in sync with customer business practices
• Follow customers lead
• See others honestly
• Adopt the perspective of other cultures

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Ethics

• Customer loyalty is impossible to maintain
  without trust
• Long term relationships require higher ethical
  standards
• Federal Sentencing Guidelines designed to punish
  unethical firms

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Sales Management Process

• The formulation of a sales program
• The implementation of the sales program
• The evaluation and control of the sales program

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Environmental Impact on Selling

• Environmental forces constrain the ability to
  pursue certain marketing strategies or activities
• Environmental variables determine the ultimate
  success or failure of marketing strategies
• Changes in the environment create new marketing
  opportunities
• Environmental variables are affected by marketing
  activities

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Economic Environment

• Buyer-seller interactions take place within the
  context of current economic conditions
• The economy impacts real potential demand
• Global economic conditions are important
• Competitive structure affects selling success

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Legal-Political Environment

• Many of the changes in societys values reflect
  new laws and new government regulations.
• Three broad categories of laws are relevant
• Antitrust
• Consumer Protection
• Equal Employment Opportunity

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Technological Environment

• Changing the way salespeople and sales managers
  do their jobs
• Influences sales strategies
• Provides increased opportunities for product
  development
• Transportation, communications, and data
  processing technologies change sales territories,
  sales rep deployment and sales performance
  evaluation

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Social and Cultural Environment

• Ethics - concerned with development of moral
  standards by which actions and situations can be
  judged.
• Of concern to sales managers
• Their relationships with salespeople
• Interactions between salespeople and their
  customers
• Managers must influence ethical performance by
  example
• Ethical standards reflect integrity of the firm

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Natural Environment

• Nature influences demand for products
• Weather
• Natural disasters
• Availability of raw materials
• Energy resources
• Demarketing may result from shortages caused by
  nature
• Growing social concern about the possible
  negative impact of product and production have
  important implications for marketing and sales
  programs

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Goals/Objectives/Culture

• Mission and objectives drive customer management
  approaches
• A well-defined mission successful corporate
  history top management values strong
  corporate culture

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Personnel

• Modern sales organizations are highly complex and
  dynamic
• Often difficult to expand to take advantage of
  growing markets
• Utilizing outside specialists can help firms meet
  need to expand

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Financial Resources

• Lack of financial resources can
• constrain ability to develop new products
• limit promotional budget
• limit size of sales force

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Production and Supply Chain Capabilities

• Production capacity
• Location of production facilities
• Transportation costs
• Ability to ensure seamless distribution and
  service after the sale

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Service Capabilities

• Opportunity for strong competitive advantage
• Difficult for other firms to compete for same
  customers
• Customers reluctant to switch regardless of price

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RD and Technological Capabilities

• Excellence in design and engineering provide
  major promotional appeal
• Ability to communicate technological
  sophistication as value-add helps prevent
  over-reliance on price to get sales

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Key Terms

• transactional selling
• relationship selling
• leading versus
• managing
• sales management
• sales management process
• formulation
• Implementation
• evaluation and control
• internal (organizational) environment
• corporate culture
• discontinuous change

• external environment
• economic environment
• legal and political
• environment
• technological environment
• social and cultural
• environment
• natural environment
• ethics
• demarketing