Part I

THE BIG PICTURE

Chapter 1:
Introduction to Selling
and Sales Management
Sale s Management

“I don’t care how many

degrees you have on the
wall, if you don’t know how
to sell, you’re probably
going to starve.”

Heavyweight boxer George Forman’s

advice to his children
L.A. Times, pg. C2, Tuesday, March 25, 1997
What Creates Satisfied
Customers?

21% A Total
Customer
Solution
37%
Competence
of the
Salesperson
25% Quality
of Product
or Service
17%
Competitive Price
Figure 1-1:
Positions of Personal Selling and
Sales Management in the Marketing Mix

Marketing
mix

Products Prices Promotion Distribution

Public Personal Sales

Advertising
relations selling promotion

Sales
management

Planning Motivating
Budgeting Compensating
Recruiting and selecting Designing territories
Training Evaluating performance
W ha t’ s New ?
Figure 1-2:
Marketplace Changes and Selling
Consequences

Competition Customers
Global Competition Fewer Suppliers
Shorter Production Rising
Cycles Expectations
Blurred Boundaries Increasing Power

Selling Process
Relationship Selling
Customer Relationship
Management
Sales Teams
Global Account Management
Inside Selling
Figure 1-3:
Contrasting Transactional and
Relationship Selling Models
TRANSACTIONAL RELATIONSHIP
Emphasis on Emphasis on general
Sales skills Management skills
Respond to Proactive innovation/opportunity
Customer needs Identification and offers
Provide good products, Value-based offers/
Price, and services Organizational enablers
Narrow the Broaden to
customer focus Customers’ customer
Differentiate through Differentiate through
Products People
Sales/revenue Profit management focus/
Focus Share of customer
Traditional customer Trusted business advisor
relationships and partner
Figure 1-4:
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

Improvi ng Your
Cha nce s of Suc ces s
1. Build awareness
2. Get on the short list
3. Demonstrate how your proposal
meets company needs
4. Directly address decision maker’s
personal needs
5. Be prepared for “buyer remorse”
A Sal es Quota Manager:
Job Focus
 Maintain direct responsibility for sales
results for specific customers.
 Manages one or a few larger, long-term
or strategic accounts
 May have a staff of one or more
subordinate sales or support people,
but focus on managing the sales team
for the sake of achieving customer
results
A Sal es Force Manager:
Job Focus
 Spend little or no time directly managing
customer accounts.

 Focuses on building, refining, and

staffing a selling team.

 Contact with customers is largely non-

selling, but service and salesperson
development in purpose.
A Sal es Quota
Ma na ger ’s
Skil l Set
 Willingness to Train/Coach

 Willingness to Make Joint Sales Calls

 Problem-Solving

 Making Presentations

 Answering Objections
A Sal es Force
Ma na ger ’s
Skil l Set
 Willingness to Train/Coach

 Willingness to Make Joint Sales Calls

 Ability to Direct and Control Others

 Profit Mentality

 Initiative
T he Sal es Mana gement
Acti vi ti es
Table 1-1:
Sales Manager’s Time Allocations
MANAGER’S
JOB RESPONSIBILITY TIME ALLOCATION
Selling 29%
Face-to-face (17)
Telephone selling (12)
Administration 25
Account service/coordination 17
Travel/waiting 15
Internal meeting 14
T he Sal es Mana gement
Compete nc ies

What it takes to be a good

Sales Manager
Figure 1-5:
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
St rate gic Ac tion
Co mp etenc y
Dime nsi ons
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
St rate gic Ac tion
Co mp etenc y
Dime nsi ons
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
St rate gic Ac tion
Co mp etenc y
Dime nsi ons
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
Coac hi ng Com pet en cy
Di mensi ons
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
Coac hi ng Com pet en cy
Di mensi ons
Role Modeling:
 Leads by example, rather than decree

 Provides role models, either themselves or

others, and sharing best practices

 Models professional attitudes and behaviors

Coac hi ng Com pet en cy
Di mensi ons
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
Team bui ldi ng
Com pet enc y
Di mensi ons
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
Team bui ldi ng
Com pet enc y
Di mensi ons
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
Team bui ldi ng
Com pet enc y
Di mensi ons
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
Se lf-Manag eme nt
Co mp etenc y
Dime nsi ons
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
Se lf-Manag eme nt
Co mp etenc y
Dime nsi ons
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
Se lf-Manag eme nt
Co mp etenc y
Dime nsi ons
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
Glob al Pe rspective
Co mp eten cy
Di men si on s
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
Glob al Pe rspective
Co mp eten cy
Di men si on s
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
Technol ogy Comp et ency
Di mensi ons
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

Technol ogy Comp et ency
Di mensi ons
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
Know you r e- Busi ness
Termi nol ogy
1. EDI 1. Intranet

2. ERP 2. Extranet

3. CRM 3. E-Commerce

4. Groupware
Ho w do y ou get to the
top?
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