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Global Sales Management

        Session-1
Sales Management
• Sales and Marketing - Discuss
CUSTOMER A

   You are a salesperson for the Sport Shoe Corporation. On arrival at your office you find a
   letter marked "urgent" on your desk. This letter is from the athletic director of Ball State
   University, and pertains to the poor quality of basketball shoes you sold him. The director
   cited several examples of split soles and poor overall quality as his main complaints. In
   closing, he mentioned that since the season was drawing near he would be forced to contact
   the ACME Sport Shoe Company if the situation could not be rectified. What actions on your
   part would be appropriate?

   A. Place a call to the athletic director assuring him of your commitment to service. Promise
   to be at Ball State at his convenience to rectify the problem.

   B. Go by the warehouse and take the athletic director all new shoes and apologize for the
   delay and poor quality of the merchandise.

   C. Write a letter to the athletic director assuring him that SSC sells only high-quality shoes
   and that this type of problem rarely occurs. Assure him you'll come to his office as soon as
   possible but if he feels ACME would be a better choice than Sport Shoe he should contact
   them.

   D. Don't worry about the letter because the athletic director seems to have the attitude that
   he can put pressure on you by threatening to switch companies. Also, the loss in sales of 20-
   40 pairs of basketball shoes will be a drop in the bucket compared to the valuable sales time
   you would waste on a piddly account like Ball State.
CUSTOMER B

  Sam Gillespie, owner of Central Hardware Supply, was referred to you by a mutual
  friend. Gillepsie had been thinking of dropping two of their product suppliers of
  home building supplies. "The sales should be guaranteed," your friend has stated.
  Your friend's information was correct and your presentation to Gillepsie convinces
  you he will benefit from buying from you. He comments as you conclude your
  presentation: "Looks like your product will solve our problem. I'd like to think this
  over, however. Could you call me tomorrow or the next day?" The best way to
  handle this would be to:

  A.     Follow his suggestion.
  B.     Ignore his request and try a second close.
  C.     Probe further. You might ask: "The fact that you have to think this over
  suggests that I haven't convinced you. Is there something I've omitted or failed to
  satisfy you with?"
CUSTOMER C
  In order to convince your customers that your product's benefits are
  important, you must show how your product's benefits will meet their
  needs.
  Suppose your customer says: "I need some kind of gadget that will get me
  out of bed in the morning." Check the statement below which best relates
  your product feature, the G.E. clock radio's snooze alarm, to this
  customer's need:

   A. "Ms. Jones, this G.E. radio has a snooze alarm which is very easy to
   operate. See, all you do is set this button and off it goes...“

   B. "Ms. Jones, the G.E. radio is the newest radio on the market. It
   carries a one-year guarantee and you can trade in your present radio and
   receive a substantial cut in the price.“

   C. "Ms. Jones, since you say you have trouble getting up in the morning,
   you want an alarm system that will make sure you wake up. Now, G.E.'s
   snooze alarm will wake you up no matter how often you shut the alarm
   off. You see, the alarm goes off every seven minutes until you switch off
   the "early bird knob."
Sales management
                         Marketing
                           mix




 Products       Prices           Promotion      Distribution




                Public               Personal      Sales
Advertising                                                    Internet
               Relations              Selling   promotion



                                  Sales
                               Management
Personal Selling

• Personal Selling
  – Personal selling involves two-way communication
    with prospects and customers that allows the
    salesperson to address the special needs of the
    customer.
Personal Selling
Sales Management


• Sales Management is the attainment of sales
  force goals through planning, staffing,
  training, leading, and controlling
  organizational resources.
Sales Management Functions

                              planning



Resources   Controlling                        Staffing   Performance




                    Leading              Training
Planning



The conscious, systemic process of making
decisions about goals and activities that an
individual, group, work unit, or organization will
pursue in the future and the use of resources
needed to attain them.
Staffing
• Activities undertaken to attract, develop, and
  maintain effective sales personnel within an
  organization.
Training
• The effort put forth by an employer to provide
  the salesperson job-related culture, skills,
  knowledge, and attitudes that result in
  improved performance in the selling
  environment.
Leading
• The ability to influence other people toward
  the attainment of objectives.
  – Guiding average people to perform at above
    average levels
Controlling
• Monitoring sales personnel’s
  activities, determining whether the
  organization is on target toward its goals, and
  making corrections as necessary.
Sales performance
• Sales Management is the attainment of sales
  goals in an ethical, efficient, and effective
  manner.*
Sales Objectives
• Objectives of sales management
  – Sales volume
  – Contribution to profits
  – Continuing growth
Sales Objectives
• Financial Results are another objective of sales
  management.
• The Objectives of sales are therefore decided
  on the basis of where the organization stands
  and where it wants to reach. It is a
  collaborated effort from the top management
  along with the marketing managers and sales
  managers to provide with a targeted estimate.
Sales Research
• Purchase Drivers: How do customers make their
  purchase decisions?
• Competitive Analysis: What are the strengths
  and weaknesses of our competitors, how can my
  business neutralize their strengths and capitalize
  on their weaknesses?
• Sales Force Evaluation: How well does our sales
  force perform from the customer's perspective?
  How well do we explain our value, are we on
  message, etc?
Sales forecast
• A sales forecast is the estimated dollar or unit
  sales for a specific future time period based
  on a proposed marketing plan and an
  assumed market environment.
Sales Forecasting
• What is the need for sales forecasting?
Decisions derived from sales
              forecasting

• Employment levels required
• Promotional mix
• Investment in production capacity
1. A sales forecast becomes a basis for setting and
   maintaining a production schedule – manufacturing.
2. It determines the quantity and timing of needs for
   labor, equipment, tools, parts, and raw materials –
   purchasing, personnel.
3. It influences the amount of borrowed capital needed to
   finance the production and the necessary cash flow to
   operate the business – controller.
4. It provides a basis for sales quota assignments to
   various segments of the sales force – sales
   management.
5. It is the overall base that determines the company’s
   business and marketing plans, which are further broken
   down into specific goals – marketing officer.
Planning Forecasting Budgeting

              Marketing Plan



Sales Forecasts            Sales Force Budget
Forecasting types
• Macro forecasting is concerned with forecasting
  markets in total. This is about determining the existing
  level of Market Demand and considering what will
  happen to market demand in the future.
   – Consumer durables
• Micro forecasting is concerned with detailed unit sales
  forecasts. This is about determining a product’s market
  share in a particular industry and considering what will
  happen to that market share in the future.
   – Washing machines, Refrigerators
Activity
• Form groups of 3
• Decide a business
• Assuming your investments, expenditure etc
  make a sales plan for the next quarter.
• Explain who will be your target market and
  why?

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Global Sales Management session1 8 sep 2011

  • 2. Sales Management • Sales and Marketing - Discuss
  • 3. CUSTOMER A You are a salesperson for the Sport Shoe Corporation. On arrival at your office you find a letter marked "urgent" on your desk. This letter is from the athletic director of Ball State University, and pertains to the poor quality of basketball shoes you sold him. The director cited several examples of split soles and poor overall quality as his main complaints. In closing, he mentioned that since the season was drawing near he would be forced to contact the ACME Sport Shoe Company if the situation could not be rectified. What actions on your part would be appropriate? A. Place a call to the athletic director assuring him of your commitment to service. Promise to be at Ball State at his convenience to rectify the problem. B. Go by the warehouse and take the athletic director all new shoes and apologize for the delay and poor quality of the merchandise. C. Write a letter to the athletic director assuring him that SSC sells only high-quality shoes and that this type of problem rarely occurs. Assure him you'll come to his office as soon as possible but if he feels ACME would be a better choice than Sport Shoe he should contact them. D. Don't worry about the letter because the athletic director seems to have the attitude that he can put pressure on you by threatening to switch companies. Also, the loss in sales of 20- 40 pairs of basketball shoes will be a drop in the bucket compared to the valuable sales time you would waste on a piddly account like Ball State.
  • 4. CUSTOMER B Sam Gillespie, owner of Central Hardware Supply, was referred to you by a mutual friend. Gillepsie had been thinking of dropping two of their product suppliers of home building supplies. "The sales should be guaranteed," your friend has stated. Your friend's information was correct and your presentation to Gillepsie convinces you he will benefit from buying from you. He comments as you conclude your presentation: "Looks like your product will solve our problem. I'd like to think this over, however. Could you call me tomorrow or the next day?" The best way to handle this would be to: A. Follow his suggestion. B. Ignore his request and try a second close. C. Probe further. You might ask: "The fact that you have to think this over suggests that I haven't convinced you. Is there something I've omitted or failed to satisfy you with?"
  • 5. CUSTOMER C In order to convince your customers that your product's benefits are important, you must show how your product's benefits will meet their needs. Suppose your customer says: "I need some kind of gadget that will get me out of bed in the morning." Check the statement below which best relates your product feature, the G.E. clock radio's snooze alarm, to this customer's need: A. "Ms. Jones, this G.E. radio has a snooze alarm which is very easy to operate. See, all you do is set this button and off it goes...“ B. "Ms. Jones, the G.E. radio is the newest radio on the market. It carries a one-year guarantee and you can trade in your present radio and receive a substantial cut in the price.“ C. "Ms. Jones, since you say you have trouble getting up in the morning, you want an alarm system that will make sure you wake up. Now, G.E.'s snooze alarm will wake you up no matter how often you shut the alarm off. You see, the alarm goes off every seven minutes until you switch off the "early bird knob."
  • 6. Sales management Marketing mix Products Prices Promotion Distribution Public Personal Sales Advertising Internet Relations Selling promotion Sales Management
  • 7. Personal Selling • Personal Selling – Personal selling involves two-way communication with prospects and customers that allows the salesperson to address the special needs of the customer.
  • 9. Sales Management • Sales Management is the attainment of sales force goals through planning, staffing, training, leading, and controlling organizational resources.
  • 10. Sales Management Functions planning Resources Controlling Staffing Performance Leading Training
  • 11. Planning The conscious, systemic process of making decisions about goals and activities that an individual, group, work unit, or organization will pursue in the future and the use of resources needed to attain them.
  • 12. Staffing • Activities undertaken to attract, develop, and maintain effective sales personnel within an organization.
  • 13. Training • The effort put forth by an employer to provide the salesperson job-related culture, skills, knowledge, and attitudes that result in improved performance in the selling environment.
  • 14. Leading • The ability to influence other people toward the attainment of objectives. – Guiding average people to perform at above average levels
  • 15. Controlling • Monitoring sales personnel’s activities, determining whether the organization is on target toward its goals, and making corrections as necessary.
  • 16. Sales performance • Sales Management is the attainment of sales goals in an ethical, efficient, and effective manner.*
  • 17. Sales Objectives • Objectives of sales management – Sales volume – Contribution to profits – Continuing growth
  • 18. Sales Objectives • Financial Results are another objective of sales management. • The Objectives of sales are therefore decided on the basis of where the organization stands and where it wants to reach. It is a collaborated effort from the top management along with the marketing managers and sales managers to provide with a targeted estimate.
  • 19. Sales Research • Purchase Drivers: How do customers make their purchase decisions? • Competitive Analysis: What are the strengths and weaknesses of our competitors, how can my business neutralize their strengths and capitalize on their weaknesses? • Sales Force Evaluation: How well does our sales force perform from the customer's perspective? How well do we explain our value, are we on message, etc?
  • 20. Sales forecast • A sales forecast is the estimated dollar or unit sales for a specific future time period based on a proposed marketing plan and an assumed market environment.
  • 21. Sales Forecasting • What is the need for sales forecasting?
  • 22. Decisions derived from sales forecasting • Employment levels required • Promotional mix • Investment in production capacity
  • 23. 1. A sales forecast becomes a basis for setting and maintaining a production schedule – manufacturing. 2. It determines the quantity and timing of needs for labor, equipment, tools, parts, and raw materials – purchasing, personnel. 3. It influences the amount of borrowed capital needed to finance the production and the necessary cash flow to operate the business – controller. 4. It provides a basis for sales quota assignments to various segments of the sales force – sales management. 5. It is the overall base that determines the company’s business and marketing plans, which are further broken down into specific goals – marketing officer.
  • 24. Planning Forecasting Budgeting Marketing Plan Sales Forecasts Sales Force Budget
  • 25. Forecasting types • Macro forecasting is concerned with forecasting markets in total. This is about determining the existing level of Market Demand and considering what will happen to market demand in the future. – Consumer durables • Micro forecasting is concerned with detailed unit sales forecasts. This is about determining a product’s market share in a particular industry and considering what will happen to that market share in the future. – Washing machines, Refrigerators
  • 26. Activity • Form groups of 3 • Decide a business • Assuming your investments, expenditure etc make a sales plan for the next quarter. • Explain who will be your target market and why?