Sales Management

Introduction to Personal Selling and Sales Management

  • Presenter: Professor Wayne Slough
  • Content focus: Discipline of personal selling and sales management, specifically Chapter 13
  • Significance of topic: Valuable for students across various career paths, not just marketing.
  • Career data: About 50% of graduates start their careers in personal selling; higher percentages for business and marketing majors.
  • Perspective on sales: Not a penalty or hindrance, but an opportunity to learn and grow.

Salesforce Management Overview

  • Distinction between Salesforce Management and Personal Selling.
    • Salesforce Management involves broader roles and responsibilities than personal selling alone.
    • Similarities across disciplines (e.g., finance management, information systems management).
  • Entrepreneurial perspective: Entrepreneurs manage and execute these functions simultaneously.

Key Resources

  • The VCU Academy of Selling blog and page (accessible for potential exploration).
  • Relevance for both students and employers recruiting in sales.

Major Steps in Salesforce Management

  • Essential Functions of Salesforce Management:
    1. Analyzing - Understanding market conditions and Salesforce needs.
    2. Planning for - Preparing for strategic execution in the field.
    3. Implementing - Executing sales strategies effectively.
    4. Controlling - Evaluating and monitoring sales performances.
    5. Coordinating - Aligning efforts across various sales levels.
    6. Communicating - Ensuring clarity and direction among teams.

Levels of Sales Management

  • Hierarchical structure in sales management:
    • Immediate Supervisor (Sales Manager)
    • Area Sales Manager
    • Regional Sales Manager
    • Vice President of Sales
    • Senior Vice President of Sales
  • Objective: Coordinate effective strategies and structures for Salesforce.

Recruitment and Training of Salespeople

  • Importance of recruiting, hiring, and training salespeople effectively.
  • Compensation structures for sales professionals.
    • Sales also faces high turnover due to the challenging nature of the job involved in personal sales.
  • Distinctive traits of successful salespeople:
    • Diversity in backgrounds (not limited to business) - Arts & Sciences included.

Salesforce Structures

  • Different structures in Salesforce:
    1. Territorial Structure - Organized by geographic area (e.g., zip codes, states).
    2. Product-Based Structure - Organized around product categories or lines.
    3. Customer/Market-Based Structure - Focus on specific customer types (e.g., financial vs. service industries).
  • Specialization: Salespeople can focus on either territories or customer types, enhancing sales effectiveness.

Inside vs. Outside Salesforces

  • Inside Salesforce:
    • Operates remotely, often away from the customer's physical location, leveraging technology for communication.
  • Outside Salesforce:
    • Travels to meet clients face-to-face, termed "boundary spanners" due to their mobility.
  • Shift in dynamics due to the pandemic: Inside sales gained traction due to limitations on physical meetings.
  • Team Selling: Collaboration among salespeople with different specialties to engage customers more effectively.

Compensation and Motivation in Sales

  • Sales compensation is structured to reward performance:
    • Base Salary: Example provided from Federated Insurance Company, starting at $50,000.
    • Commission: Variable earnings based on sales performance.
    • Bonuses: Rewards for individual/team performance.
  • Opportunity for high earnings, as reflected in an average income of $120,000 after one year for new sales personnel.

Key Responsibilities and Accountability

  • Managers hold sales teams accountable for performance outcomes.
  • Activity metrics tracked:
    • Number of prospects met, proposals presented, and follow-ups managed.
  • Employee time allocation in selling may generally show:
    • Approximately 33% time spent directly with customers, while the rest is devoted to other sales-related activities.

Motivation Strategies for Sales Teams

  • Creation of a supportive, motivating environment by management is critical.
  • Implementation of quotas is vital for measuring performance over set periods (e.g., sales targets of $100,000).
  • Positive incentives to encourage hard work and achieve desired outcomes.
  • Evaluation methods include call reports, ride-alongs, and performance reviews to keep sales personnel accountable.

Use of Technology in Sales Training

  • Increasing reliance on online training platforms for sales training efficiency:
    • Accessibility for salespersons on the go.
  • Benefits:
    • Cost-effective, flexible scheduling, and time-saving compared to traditional training.

The Role of Social Media in Sales

  • Growing importance of social media in sales; remains relevant as it morphs with business needs.
  • Impact: Enhances efficiency and effectiveness, driving better customer engagement, and fostering profitable business solutions.

Conclusion

  • Emphasized the potential of a career in sales and invites students to seek further discussion on the topic.