1. McGraw-Hill/Irwin Copyright © 2009 by the McGraw-Hill Companies, Inc. All rights reserved.

2. Chapter 13
Sales and Sales
Management

3. THE KEY ROLES OF SALESPEOPLE
1. THE SELLING FUNCTION
2. MANAGE CUSTOMER RELATIONSHIPS
3. GATHER INFORMATION
• From Customers
• From Competitors
• About Market Forces
13-3

4. SALES ROLE IN THE ORGANIZATION
• MANAGE RELATIONSHIPS
• CREATE CUSTOMERS FOR LIFE
• PROVIDE CUSTOMER SERVICE
• COORDINATE CORPORATE RESOURCES
• GATHERING INFORMATION
• CUSTOMER DIALOGUE IS USEFUL
• OBTAIN COMPETITIVE INFORMATION
13-4

5. DETERMINING THE SALES STRATEGY
OPTION TO FIT YOUR CUSTOMER
1. SCRIPT-BASED SELLING—Used when all customers’
needs are similar
2. NEEDS SATISFACTION SELLING—Identifying buyers’
needs and selling to them
3. CONSULTATIVE SELLING—Bring specialized expertise
for a customized solution
4. STRATEGIC PARTNER SELLING—Seller-Customer joint
effort for developing product solutions
Exhibit 13-1
13-5

6. STAGES IN RELATIONSHIP BUILDLING
Commitment
Expansion
• Secure
complete
commitment
Exploration • Generate from both
reorders companies Dissolution
Awareness • Set correct • Upgrade • Manage
expectations • Full-line change
• Ensure proper sell
initial use • Limited
• Follow up relationships
• Make personal • Failure to
visits monitor
• Handle competitors
complaints or industry
• Achieve • Complacency
customer
satisfaction
Exhibit 13-2
13-6

7. PARTNERSHIP COMMUNICATION:
FROM SINGLE LEVEL TO MULTI-LEVEL
Buying Company BEFORE Selling Company
Production PARTNERING Engineering
Marketing Marketing
Purchasing Sales
Department Finance
Finance Purchasing Credit and
Accounting Salesperson
Agent AFTER Billing
Shipping Shipping
& Receiving PARTNERING
& Receiving
Buying Company Selling Company
Production Engineering
Marketing Marketing
Purchasing Sales Purchasing
Finance Finance
Accounting Credit & Billing
Shipping Shipping
& Receiving & Receiving
Exhibit 13-4
13-7

8. SALES ORGANIZATION OPTIONS
1. ORGANIZE GEOGRAPHICALLY USING
CITIES, STATES, COUNTRIES, ZIP CODES,
BY ACCOUNT
2. ORGANIZE BY PRODUCT AND DEVELOP
SPECIALISTS FOR EACH PRODUCT
CATEGORY
3. USE SALES TEAMS TO DEVELOP AND
KEEP NEW BUSINESS.
13-8

9. BUYING AND SELLING TEAMS
STREAMLINE MULTILEVEL SELLING
Buying Company Selling Company
Vice President Vice President
Of Purchasing Of Sales
Director of Account
Purchasing Manager
Product
Engineer
Specialist
Exhibit 13-5
13-9

10. CUSTOMER FOCUSED TEAM STRUCTURE
Sales Specialists
Manufacturing
Account
Customer Manager
Account
Support Team Consultant
CSS Leader Finance and
Service
Rep. F&A Rep. Accounting
Customer Sales
Shipping
Manager Specialists
Prod. / Ind.
Shipping Purchasing Other Mktg. Groups
Agent Rep.(s)
Purchasing Other Business
Units
Exhibit 13-7
13-10

11. ALLOCATION GRID FOR SALES RESOURCES
MARKET LIFETIME VALUE
Low High
Relatively fewer Maintain sufficient
Strong resources should resources to continue
RELATIVE be allocated here to reap the sales
POSITION potential and strong
position
Assign to Direct more sales
alternative method resources here
Weak of communicating,
such as
telemarketing
Exhibit 13-8
13-11

12. DO YOU OUTSOURCE THE SALES FORCE?
YES NO
• Establish relationships • Loss of control over
• Salary and selling sales presentation
expenses can be limited • Products may not be a
• Little/no up-front selling priority with
investment representative
TO MAKE IT WORK:
INVEST IN TRAINING AND
MERCHANDISING MATERIALS
13-12

13. SALES FORCE CONTROL MECHANISMS
• ESTABLISH QUOTAS – Fair and Understandable
• Activity Quotas
• Performance Quotas
• ESTABLISH COMPENSATION PLAN – Equitable,
Stable, Understandable
• Straight Salary
• Straight Commission
• Combination Plans
• Bonus System
• MOTIVATION ACTIVITIES–
• Keep Sales Force Producing
13-13

14. MANAGER’S DILEMMA: EVALUATING
PERFORMANCE & MAINTAINING MOTIVATION
5 STEPS TO EVALUATE SALES FORCE PERFORMANCE
1. REVIEW SPECIFIC SALES OBJECTIVES
2. OBTAIN APPROPRIATE PERFORMANCE DATA
(outcomes and effort)
3. EVALUATE WHAT WAS BEYOND SALESPERSON’S
CONTROL
4. IDENTIFY PROBLEMS AND OPPORTUNITIES
5. CREATE A STRATEGY THAT RESOLVES PROBLEMS
AND SEIZES OPPORTUNITIES
Exhibit 13-11
13-14

15. RECOGNIZING AND IDENTIFYING A PROBLEM
PROBLEM RECOGNITION
“The Problem”
Expectations Results
Enormity of problem rests on length of this difference
PROBLEM IDENTIFICATION
THE 6xWHY FILTER Ask the WHY question at least six times
(or as many times as necessary)
1. Our sales are down: WHY?
2. We can’t see customers: WHY?
3. We can’t make appointments on time : WHY?
4. We spend too much time covering territory : WHY?
5. Our territories are too big : WHY?
6. We don’t have enough salespeople : WHY?
CONCLUSION / PROBLEM
We haven’t matched demand to our sales force.
13-15