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This chapter introduces the fundamentals of sales force management, including types of sales forces and common customer complaints about salespeople. It outlines various sales roles such as consultative and relationship selling, and provides insights into sales activities like prospecting, presentations, and territory management. The chapter discusses the responsibilities of sales managers in strategic planning, recruitment, motivation, and training. It also highlights the challenges facing sales forces in the 21st century, including CRM, diversity, and ethical considerations.
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Chapter 1 Introduction to sales force management
( Figure 1-1)Top Five Customer Complaints About Salespeople Percent of Customers with Complaint Source: The HR Chally Group, Ten Year Research Report, 2002.
( Figure 1-2) Types of Outside Sales Forces
Transaction Selling Get new accounts Get the order Cut the price to get the sale Manage all accounts to maximize short-term sales Sell to anyone Relationship Selling Retain existing accounts Become the preferred supplier Price for profit Manage each account for long-term profit Concentrate on high-profit-potential accounts The Nature of Personal Selling
6 Categories of Sales Jobs • Consultative seller • Key account seller • New business seller • Sales support • Missionary seller • Delivery seller
(Figure 1-3) Selected Activities of Salespeople Salesperson • Generate sales: • Precall planning • Prospecting • Make sales presentations • Overcome objections • Close by asking for the orders • Arrange for delivery • Entertain • Arrange for credit/financing • Collect payments • Participate in trade shows • Provide service to customers: • Provide management/technical consulting • Oversee installations and repairs • Check inventory levels • Stock shelves • Provide merchandising assistance: • Co-op advertising, point-of-purchase displays, brochures • Oversee product and equipment testing • Train wholesalers’ and retailers’ salespeople • Territory management: • Gather and analyze information on customers, competitors’ general market developments • Disseminate information to appropriate personnel within salesperson’s company • Develop sales strategies and plans, forecasts, and budgets. • Company service: • Train new salespeople • Perform civic duties • Professional development: • Participate in: • Sales meetings • Professional associations • Training programs
Sales jobs differ from other jobs because salespeople… • implement a firm’s marketing strategies in the field. • are authorized to spend company funds. • represent their company to customers and to society in general. • represent the customer to their companies. • operate with little or no direct supervision and require a high degree of motivation. • frequently face rejection. • need more tact and social intelligence. • travel extensively, which takes time from home and family. • have large role sets. • face role ambiguity, role conflict, and role stress.
Sales Management Responsibilities Strategic planning (Figure 1-5) Organizing the sales force Performance evaluation Communication Coordination Integration Recruiting, selection, assimilation Motivation and supervision Training and development
(Figure 1-6) Executive Ladder in Personal Selling President Vice president of sales National sales manager Regional/divisional sales manager District sales manager Staff assistants available for adviceand support at anystep along the ladder. Sales supervisor Salesperson
(Figure 1-7) Executive Ladder in Team Selling President Vice president of marketing Distributionlogisticsspecialist Productengineer Client-teamleader Customer sales/service representative
Sales Force Management Challenges in the 21st Century • Selling by executives • Customer relationship management (CRM) • Sales force diversity • Complex channels of distribution • An international perspective • Ethical behavior and social responsibility