Sales Management ch.1

Sales Management

All activities, processes, and decisions involved in managing the sales functions (proper activities) in an organization

Innovation

Thinking outside the box

Technology

Broad spectrum of tools available to salespersons (use of different technological means)

Leadership

Capability to make things happen

Globalization

Connect people, cultures, world economies through exchange of goods, services, investment, technology, data and ideas

Ethics

Moral values concerning what is right and what is wrong

Managing

Control

Supervisor/boss

Direct

Leading (Mentoring)

Communicate

Cheerleader/coach

Empower to make decisions

Leader as Servant

Be a steward for your subordinates

Take lead from subordinates

Rewards and give glory

Take subordinates’ work seriously

Be trustworthy

Drivers for Sales Management Globalization

Customers can easily communicate worldwide with a diversified sales force

Growing opportunities outside of domestic markets

Access to Global Customers

Bridging the Culture Gap

Understand and embrace ethnic customs

Adapt selling approaches to ethnic and cultural differences

Portray genuine interest in cultural differences

Sales Management Process

The formulation of a sales program: Planning the activities

The implementation of the sales program: Carrying out/putting in actions the planned activities

The evaluation and control of the sales program: Assess, identify deviations and make changes/corrections

Environmental Factors Impacting Success in Selling

Environmental forces can constrain the pursuit of certain marketing strategies or activities

Environmental variables can determine ultimate success or failure of marketing strategies

Changes in the environment could create new marketing opportunities

Antitrust Laws

Aimed at preserving and enhancing competition among firms in an industry

Consumer Protection Laws

Aimed to protect consumers (full disclosure of accurate product info, prohibit deceptive or misleading info, misrepresenting a company’s product by a salesperson

Equal Employment Opportunity (EEO) Laws

Prohibit discrimination against a person either in hiring, promotion based on race, gender, religion, age, nationality, etc.

Robinson-Patman Act

Prohibits a firm and its reps from discriminating in prices of services offered to competing customers

Tying agreements

Seller forcing a customer to buy a product in order to purchase another

Reciprocal dealing arrangements

“I will buy from you if you buy from” Type of agreements made where effects could lessen competition

Unfair methods of competition

Interfering for instance with the actions of another competition

Truth-in-Lending Act

Full disclosure of all finance charges

Cooling-off laws

Allow consumers to cancel contracts signed with door-to-doors sellers within a limited number of days after agreeing to such contracts

Consumer Protection Laws

Fair Packaging and Labeling Act

Truth-in-Lending Act

Cooling-off laws

Technological Environment

Changes how salespeople/sales managers do their jobs

Influences sales strategies

Provides opportunities for product development

Transportation, communications, and data processing technologies change how,To design sales territories,To deploy sales representatives,To evaluate sales performance

Ethics

Development of moral standards by which actions and situations can be judged

Sales managers

Relationships with salespeople

Interactions between salespeople and customers

Managers must influence ethical performance by example

Natural Environment

Nature influences demand for products

Weather

Natural disasters

Availability of raw materials

Energy resources

Shortages of raw materials and other necessity products for manufacturing

Social concern about possible negative environmental impact of product and production

Goals, Objectives, and Culture

Well-defined mission+ Successful corporate history+ Top management values = Strong corporate culture

Financial Resources

Lack of financial resources can:

constrain ability to develop new products

limit promotional budget

limit size of sales force

Research and Development (R&D) and Technological Capabilities

Excellent design and engineering provide promotional appeal

Communicating technological sophistication as value-additions helps prevents over-reliance on price for sales

Use of AI for competitive advantage while being ethical

Technology use to innovate and introduce new products