Part One:
Strategic Planning
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.
Sales Management: Shaping Future Sales Leaders
Introduction to
Sales Management
Chapter 1
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.
Learning Objectives
 Define strategy hierarchy and understand how
sales and marketing strategies affect overall
strategy
 Identify different types of selling strategies and
how the selling process varies
 Describe the sales management process and
responsibilities and activities of sales managers
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.
The nature of sales
 ”Nothing happens until someone sells
something!”
 Many people beleive sales profession is NOT a
noble position to hold
 Professionel buyers know better:
 They rely on salespeople to bring them solutions
to the buseness problems that challenge them
What Being a Sales Manager Means
Coaching
 Coaching salespeople so they can improve
Developing
 Developing strategies and delegating the
responsibility for implementation to others
Motivating
 Figuring out how to motivate people, some who
are older than you
Convincing
 Convincing others that what is right for the sales
force is right for their departments, too
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Establishing the Parameters of the
Firm’s Strategy: The Mission Statement
 A mission is a set of objectives
 Summarizing the goals is called a mission
statement
 A goos mission statement serves as a standard
against which the decisions and actions
employees take can be sompared
 Once the mission´s objectives are set – strategy
can be created
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.
Sample Mission Statements
 Everything we do is inspired by our
enduring mission:
 Coca-Cola
 Southwest
Airlines
 To Refresh the World . . . in body, mind, and spirit
 To Inspire Moments of Optimism . . . through our
brands and our actions
 To Create Value and Make a Difference . . .
everywhere we engage
 The mission of Southwest Airlines is
dedication to the highest quality of
Customer Service delivered with a sense of
warmth, friendliness, individual pride, and
Company Spirit
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.
The Strategy Hierarchy
 Corporate strategy encompasses plans and
goals for the entire organization
 Address questions such as what markets and
sourcing options company should engage
 Ex: hire sales force vs. use distributors
 Ex: outsource mfg and focus internally on marketing
 Business units create their plans to support
corporate strategy
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The Strategy Hierarchy
Corporate
Strategy
Marketing Strategy
Sales Strategy
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.
Creating a Marketing Strategy
A. Markets
 What markets do we serve with what products?
 What types of relationships do we form and with
B.Relationships whom?
C.Investment
 What level of investment will be required, and
how will we locate and allocate the needed
resources?
D.Objectives
 What are the detailed objectives and action
plans?
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.
A. Markets: What Markets Do We
Serve with What Products?
 Find a sustainable competitive advantage
 Something that gives a company an edge in
the market over time!
 Need expertise, technology or a patent
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.
A. Markets
Product-Market Grid
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.
B. Relationships: What Types of
Relationships Do We Form and with Whom?
 Strategic plan considers
network of relationships
(Supply Chains)
 Relationship with
customers is most
important
 1. A service dominant logic:
advantage is often a function
of the quality of relationships
 2. Customers’ lifetime value
is worth more than the
average single purchase
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.
B. Relationships: Customer Relationship
Management (CRM): Key Terms
 3. CRM: identifying and grouping customers to
best acquire, retain, and grow customers
 Sales and marketing teams are responsible for CRM
 Customer acquisition strategy: plan to obtain
new customers
 Customer retention strategy: plan designed to
keep customers
 Growth strategy: plan designed to increase
sales to the same customers
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.
C. Investment: What Level of Investment Will Be
Required, and How Will We Allocate the Needed
Resources?
 Money, human or social capital
 Human capital decisions include:
 Determining number of salespeople
 What skills and experience they must have
 What training they require
 Other decisions include:
 Whether to hire telephone prospectors or to outsource
 Who handles customer service (a sales rep or a
customer service rep)
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.
D. Objectives: What Are the Detailed
Objectives and Action Plans?
 SMART format for establishing objectives
S pecific
Measurable
A chievable, yet challenging
R ealistic
T ime-based
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.
Selling Approaches
Transactional
 Finish sale as quickly and as easily as possible
 Key to success is making as many calls as
possible to as many people as possible
Affiliative
 Based on the friendship between the salesperson
and the individual buyer
 Identify and solve a client’s problems
Problem Solving
 Also called needs-satisfaction selling or
or Consultative
problem/solution selling
Enterprise
 Business-to-business (B2B) concept
 Based on not only person-to-person relationships
but on company-to-company relationships
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The Selling Process: 8 Steps
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Selling Process vs. Selling Approach
Selling Approach
Selling Process
Transactional
Prospecting
Affiliative
Consultative
Enterprise
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.
Closing
Presenting
Assignment 1:
 Give a detailed description of the differences.
 Which pros and cons do you find to be the most
important?
Sales Leaders
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Sales Executive vs.
Sales Manager Duties
Activity
Sales Executive
Sales Manager
Plan
Set overall sales targets for
each product
Set quotas for each
salesperson for each product
Organize
Decide what type of people to Interview and hire specific
hire for sales positions
people for sales positions
Implement
Determine the compensation
plan
Identify each person’s
motivators and find ways to
reward good performance for
each person
Monitor
Track sales by region; take
corrective action such as
additional training if sales are
too low
Observe each salesperson’s
actions in the field and offer
suggestions for their
improvement
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.