Sales Mangement.ppt

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Sales ManagementSales Management

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Ultimate aim of Ultimate aim of every every

Organization is toOrganization is to

SELLSELL WithWith

PROFITPROFIT

Sales Department is Sales Department is the the

Income-producingIncome-producing Division of BusinessDivision of Business

rest all are rest all are Cost incurring divisions Cost incurring divisions

of businessof business

3 Objectives of 3 Objectives of Sales managementSales management

Sales VolumeSales VolumeContribution to profitsContribution to profits

&&Continuing growthContinuing growth

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Sales ManagementSales Management

American Marketing American Marketing AssociationAssociation

““the planning, direction, and the planning, direction, and control of personal selling, control of personal selling, including recruiting, selecting, including recruiting, selecting, equipping, assigning, routing, equipping, assigning, routing, supervising, paying and supervising, paying and motivating as these tasks apply to motivating as these tasks apply to the personal salesforcethe personal salesforce.”.”

What makes What makes God laugh?God laugh?

PeoplePeople makingmaking plans!plans!

try it. Try it. Try it. Try it. try it. Try it. Try it. Try it. Try it. Try it. Try it. Try it. Try it. Try it. Try it. Try it. Screw it up.Screw it up. Try it. Try it. Try it. Try it.

Try it. Try it. Try it. Try it. Try it. Try it. Try it. Try it. Screw it up.Screw it up. it. Try it. Try it. Try it. Try it. try it. Try it. it. try it. Try it. Screw it Screw it up.up. Try it. Try it. Try it. Try it. Try it. Try it.

““We have a We have a ‘strategic plan.’ ‘strategic plan.’ It’s called It’s called doing doing thingsthings.”.” — Herb Kelleher

“This is so simple it sounds stupid, but it is amazing how few oil people really

understand that you you only find oil only find oil if you drill if you drill

wellswells.. You may think

you’re finding it when you’re drawing maps and

studying logs, but you have to drill.”

Source: The Hunters, by John Masters, Canadian O & G wildcatter

““ExecutionExecution is is thethe jobjob of the of the

businessbusiness leaderleader.”.” ——Larry BossidyLarry Bossidy &

Ram Charan/ Execution: The Discipline of Getting Things Done

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BLAME NOBODY!BLAME NOBODY!EXPECT NOTHING!EXPECT NOTHING!

DO DO SOMETHINSOMETHIN

G!G!

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BOOKSBOOKS

Required ReadingRequired Reading

Richard R. Still, Edward W. Cundiff, Norman A.P. Richard R. Still, Edward W. Cundiff, Norman A.P. Govaon:Govaon: Sales Management, Decisions, Strategies and Sales Management, Decisions, Strategies and Cases(PHI: Latest Edition)Cases(PHI: Latest Edition)

Charlesm. Futrell:Charlesm. Futrell: Sales Management, Sales Management, Teamwork,Leadership and Technology (Thomson South Teamwork,Leadership and Technology (Thomson South –Western: Latest edition)–Western: Latest edition)

Additional BooksAdditional Books

S L Gupta:S L Gupta: Sales & Distribution Management (Excel: Sales & Distribution Management (Excel: Latest Edition)Latest Edition)

R. Venugopal:R. Venugopal: Sales Management (Response Books: Sales Management (Response Books: Latest Edition)Latest Edition)

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MARKETING ELECTIVE:SALESMANAGEMENTCOURSE DURATION: 2 HRS PER WEEK FOR 10 COURSE DURATION: 2 HRS PER WEEK FOR 10 WEEKSWEEKS

COURSE CREDITS: 02COURSE CREDITS: 02

11. OVERVIEW OF SALES MANAGEMENT. OVERVIEW OF SALES MANAGEMENT

1.1 Selling and salesmanship1.1 Selling and salesmanship (2 HRS) (2 HRS)

1.2 Personal Selling1.2 Personal Selling (2 HRS) (2 HRS)

2. PLANNING THE SALES EFFORT -1: SALES 2. PLANNING THE SALES EFFORT -1: SALES PLANNING AND BUDGETINGPLANNING AND BUDGETING

2.1 Sales Planning2.1 Sales Planning (2 HRS) (2 HRS)

2.2 Sales Budgets2.2 Sales Budgets (1 HR) (1 HR)

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3. PLANNING THE SALES EFFORT - 3: SALES 3. PLANNING THE SALES EFFORT - 3: SALES POTENTIAL AND FORECAST POTENTIAL AND FORECAST (2 HRS)(2 HRS)

4. PLANNING THE SALES EFFORT - 4: SALES 4. PLANNING THE SALES EFFORT - 4: SALES QUOTA QUOTA (1 HR)(1 HR)

5. PLANNING THE SALES EFFORT - 5: SALES AND 5. PLANNING THE SALES EFFORT - 5: SALES AND COST ANALYSIS COST ANALYSIS (1 HR)(1 HR)

6. ORGANISING AND DIRECTING THE SALES 6. ORGANISING AND DIRECTING THE SALES EFFORT -1: HIRING AND TRAINING EFFORT -1: HIRING AND TRAINING (2 HRS) (2 HRS)

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7. ORGANISING AND DIRECTING-2: TIME AND 7. ORGANISING AND DIRECTING-2: TIME AND TERRITORY MANAGEMENT TERRITORY MANAGEMENT (1 HR) (1 HR)

8. ORGANISING AND DIRECTING - 3:COMPENSATING 8. ORGANISING AND DIRECTING - 3:COMPENSATING (2 HRS) (2 HRS)

9. ORGANISING AND DIRECTING - 4: MOTIVATING 9. ORGANISING AND DIRECTING - 4: MOTIVATING

(2 HRS)(2 HRS)

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10. ORGANISING AND DIRECTING - 5: LEADING 10. ORGANISING AND DIRECTING - 5: LEADING

(1 HR)(1 HR)

11. CONTROLLING THE EFFORT: EVALUATION 11. CONTROLLING THE EFFORT: EVALUATION

(1 HR) (1 HR)

““TAKE THIS QUICK QUIZ: TAKE THIS QUICK QUIZ: Who manages more things at once? Who manages more things at once? Who puts more effort into their appearance?Who puts more effort into their appearance? Who usually takes care of the details? Who usually takes care of the details? Who finds it easier to meet new people?Who finds it easier to meet new people? Who asks more questions in a conversation? Who asks more questions in a conversation? Who is a better listener?Who is a better listener? Who has more interest in communication skills? Who has more interest in communication skills? Who is more inclined to get involved?Who is more inclined to get involved? Who encourages harmony and agreement? Who encourages harmony and agreement? Who has better intuition?Who has better intuition? Who works with a longer ‘to do’ list? Who works with a longer ‘to do’ list? Who enjoys a recap to the day’s events?Who enjoys a recap to the day’s events? Who is better at keeping in touch with others?”Who is better at keeping in touch with others?”Source: Source: Selling Is a Woman’s Game: 15 Powerful Reasons Why Selling Is a Woman’s Game: 15 Powerful Reasons Why Women Can Outsell MenWomen Can Outsell Men, Nicki Joy & Susan Kane-Benson, Nicki Joy & Susan Kane-Benson

Sales ForecastingSales Forecasting

A sales forecast is important for at least five A sales forecast is important for at least five reasons. reasons. 11 A sales forecast becomes a basis for setting and A sales forecast becomes a basis for setting and maintaining a production schedule maintaining a production schedule

manufacturing.manufacturing.

22 It determines the quantity and timing of needs for It determines the quantity and timing of needs for labor, equipment, tools, parts, and raw labor, equipment, tools, parts, and raw materials-purchasing, personnel.materials-purchasing, personnel.

33 It influences the amount of borrowed capital needed It influences the amount of borrowed capital needed to finance the production and the necessary cash to finance the production and the necessary cash flow to operate the business-controller.flow to operate the business-controller.

44 It provides a basis for sales quota assignments It provides a basis for sales quota assignments to to various segments of the sales force sales various segments of the sales force sales manager.manager.

55 It is the overall base that determines the It is the overall base that determines the company's business and marketing plans, company's business and marketing plans, which which are further broken down into specific goal are further broken down into specific goal marketing officer.marketing officer.

A sales forecast is important for at least five A sales forecast is important for at least five reasons. reasons.

Methods of ForecastingMethods of Forecasting

11 Break Down MethodBreak Down Method

22 Build up MethodBuild up Method

Breakdown Method

WHY ESTABLISH WHY ESTABLISH SALES TERRITORIES?SALES TERRITORIES?

WHY ESTABLISH SALES TERRITORIES?WHY ESTABLISH SALES TERRITORIES?

Companies develop and use sales territories for Companies develop and use sales territories for numerous reasons. Seven of the more important reasons numerous reasons. Seven of the more important reasons are discussed here. are discussed here.

11 To Obtain Thorough Coverage of the Market To Obtain Thorough Coverage of the Market

22 To Establish a Salesperson's ResponsibilityTo Establish a Salesperson's Responsibility

33 To Evaluate PerformanceTo Evaluate Performance

WHY ESTABLISH SALES TERRITORIES?WHY ESTABLISH SALES TERRITORIES?

44 To Improve Customer RelationsTo Improve Customer Relations

55 To Reduce Sales ExpenseTo Reduce Sales Expense

66 To Allow Better Matching of To Allow Better Matching of Salesperson to Salesperson to

CustomerCustomer 7 To Benefit Salespeople and the CompanyTo Benefit Salespeople and the Company

INTENSITY OF MARKET COVERAGE INTENSITY OF MARKET COVERAGE

Intensive distributionIntensive distribution: :

Selective distribution:Selective distribution:

Exclusive distributionExclusive distribution

Women do 2/3Women do 2/3rdrd of the Work of the Work

Earn 1/10Earn 1/10thth of the Income of the Income

Own 1/100Own 1/100thth of the Land of the Land

The Sales25The Sales25: Great Salespeople …: Great Salespeople …

1. Know the product. 1. Know the product. (Find cool mentors, and use them.)(Find cool mentors, and use them.)

2. Know the company.2. Know the company.3. Know the customer. 3. Know the customer. (Including the customer’s consultants.) (Including the customer’s consultants.) (And especially the “corporate culture.”)(And especially the “corporate culture.”)

4. 4. Love internal politics at home and abroad.Love internal politics at home and abroad.5. Religiously respect competitors. 5. Religiously respect competitors. (No badmouthing, no (No badmouthing, no matter how provoked.)matter how provoked.)

6. 6. Wire the customer’s org.Wire the customer’s org. (Relationships at all levels & (Relationships at all levels & functions.)functions.)

7. 7. Wire the home team’s org. and vendors’ orgs.Wire the home team’s org. and vendors’ orgs. (INVEST Big (INVEST Big Time time in relationships at all levels & functions.) (Take junior Time time in relationships at all levels & functions.) (Take junior people in all functions to client meetings.)people in all functions to client meetings.)

It’s politics, It’s politics, stupid!stupid! (Play or sit on the (Play or sit on the

sidelines.)sidelines.)

Great Salespeople …Great Salespeople …

8. 8. Never overpromise.Never overpromise. (Even if it costs you your job.)(Even if it costs you your job.) 9. 9. Sell only by solving problems-creating profitable Sell only by solving problems-creating profitable opportunities.opportunities. (“Our product solves these problems, creates (“Our product solves these problems, creates these unimagined INCREDIBLE opportunities, and will make these unimagined INCREDIBLE opportunities, and will make you a ton of money—here’s exactly how.”) (IS THIS A you a ton of money—here’s exactly how.”) (IS THIS A “PRODUCT SALE” OR A WOW-ORIGINAL SOLUTION “PRODUCT SALE” OR A WOW-ORIGINAL SOLUTION YOU’LL BE DINING OFF 5 YEARS FROM NOW? THAT YOU’LL BE DINING OFF 5 YEARS FROM NOW? THAT WILL BE WRITTEN UP IN THE TRADE PRESS?)WILL BE WRITTEN UP IN THE TRADE PRESS?)

10. Will involve anybody—including mortal enemies—10. Will involve anybody—including mortal enemies—if it enhances the scope of the problem we can solve and if it enhances the scope of the problem we can solve and increases the scope of the opportunity we can increases the scope of the opportunity we can encompass.encompass.11. Know the Brand Story cold; live the Brand Story. 11. Know the Brand Story cold; live the Brand Story. (If not, leave.)(If not, leave.)


12. Think “Turnkey.” 12. Think “Turnkey.” (It’s (It’s alwaysalways your problem!) your problem!)

13. 13. Act as “orchestra conductor”: You are responsible for Act as “orchestra conductor”: You are responsible for making the whole-damn-network respond. making the whole-damn-network respond. (PERIOD.)(PERIOD.)

14. Help the customer get to know the vendor’s 14. Help the customer get to know the vendor’s organization & build up their Rolodex.organization & build up their Rolodex.15. 15. Walk away from bad business.Walk away from bad business. (Even if it gets you fired.)(Even if it gets you fired.)

16. 16. Understand the idea of a “good loss.”Understand the idea of a “good loss.” (A bold effort that’s (A bold effort that’s sometimes better than a lousy win.)sometimes better than a lousy win.)

17. Think those who regularly say “It’s all a price issue” 17. Think those who regularly say “It’s all a price issue” suffer from rampant immaturity & shrunken imagination.suffer from rampant immaturity & shrunken imagination.18. Will not give away the store to get a foot in the door. 18. Will not give away the store to get a foot in the door. 19. Are wary & respectful of upstarts—the real enemy.19. Are wary & respectful of upstarts—the real enemy.20. 20. Seek several “cool customers”—who’ll drag you into Seek several “cool customers”—who’ll drag you into Tomorrowland.Tomorrowland.


21. 21. Use the word “partnership” obsessively, even though it is way Use the word “partnership” obsessively, even though it is way overused.overused. (“Partnership” includes folks at all levels throughout (“Partnership” includes folks at all levels throughout the supply chain.)the supply chain.)22. 22. Send thank you notes by the truckload.Send thank you notes by the truckload. (NOT E-NOTES.) (NOT E-NOTES.) (Most are for “little things.”) (50% of those notes are sent to (Most are for “little things.”) (50% of those notes are sent to those in our company!) Remember birthdays. Use the word those in our company!) Remember birthdays. Use the word “we.” “we.” 23. 23. When you look across the table at the customer, think When you look across the table at the customer, think religiously to yourself: “HOW CAN I MAKE THIS DUDE RICH religiously to yourself: “HOW CAN I MAKE THIS DUDE RICH & FAMOUS & GET HIM-HER PROMOTED?” & FAMOUS & GET HIM-HER PROMOTED?” 24. Great salespeople can affirmatively respond to the query in 24. Great salespeople can affirmatively respond to the query in an HP banner ad: HAVE YOU CHANGED CIVILIZATION an HP banner ad: HAVE YOU CHANGED CIVILIZATION TODAY?TODAY?25. 25. Keep your bloody PowerPoint slides simple!Keep your bloody PowerPoint slides simple!

Kids are the MarketKids are the Market

Hedonistic TreadmillHedonistic Treadmill

Hurried Child Syndrome & Hyper ParentingHurried Child Syndrome & Hyper Parenting

““TROPHY CHILD”TROPHY CHILD”

symbol of parents achievementsymbol of parents achievement

““HELICOPTER PARENTINGHELICOPTER PARENTING””

““STEALTH PARENTSSTEALTH PARENTS””

Working Mother’s Working Mother’s

Kids Point of ViewKids Point of View

-- IndependenceIndependence-- MultitaskingMultitasking

-- ResponsibilityResponsibility

““ARSENIC HOUR”ARSENIC HOUR”

““ASKABLE PARENTS”ASKABLE PARENTS”

““SOCIAL SWARMING”SOCIAL SWARMING”

Rapid gathering of friends, family Rapid gathering of friends, family or colleagues through technologyor colleagues through technology

““ALPHA PUP”ALPHA PUP”

Sales Mangement.ppt

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