Sales force Chapter 1. sales force in 21st centuries

sales force management chapter 1

1. SALES FORCE
MANAGEMENT
11
TH
EDITION
MARK W. JOHNSTON
GREG W. MARSHALL
Routledge 2013

2. INTRODUCTION TO SALES MANAGEMENT IN THE TWENTY -FIRST
CENTURY
CHAPTER 1
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3. CHANGE CENTRAL TO SALES
MANAGEMENT TODAY
•CHANGING CUSTOMER NEEDS DRIVE CHANGES IN
SALESPEOPLE
•CHANGING SALES MANAGEMENT AGENDAS
•CHANGE CREATES OPPORTUNITIES
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Source: HR Chally Group (2007) The Chally World Class Excellence Research Report:
The Route to the Summit. Dayton, OH: HR Chally Group.

4. Routledge 2013
•IDENTIFY/DISCUSS KEY TRENDS AFFECTING
SALES ORGANIZATIONS MANAGERS TODAY
•PRESENT A GENERAL OVERVIEW OF THE
SALES MANAGEMENT PROCESS
•IDENTIFY/ILLUSTRATE KEY EXTERNAL AND
INTERNAL ENVIRONMENTAL FACTORS
INFLUENCING THE DEVELOPMENT OF
MARKETING STRATEGIES AND SALES
PROGRAMS
Objectives

5. SALES MANAGEMENT IN THE
TWENTY-FIRST CENTURY
•LONG-TERM RELATIONSHIPS WITH
CUSTOMERS
•NIMBLE AND ADAPTABLE SALES
ORGANIZATIONAL STRUCTURES
•FEWER FUNCTIONAL BARRIERS WITHIN THE
ORGANIZATION
•COACHING SALES MANAGEMENT STYLE
•LEVERAGE TECHNOLOGY
•INCORPORATE ALL ACTIVITIES AND
OUTCOMES IN PERFORMANCE EVALUATIONS
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6. KEY THEMES
•INNOVATION–THINKING OUTSIDE THE BOX
•TECHNOLOGY–BROAD SPECTRUM OF TOOLS
AVAILABLE TO SALESPERSONS
•LEADERSHIP–CAPABILITY TO MAKE THINGS
HAPPEN
•GLOBALIZATION
•ETHICS
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7. INNOVATION IN SALES
•TRANSACTIONAL SELLING –TRANSACTIONS INVOLVING
SEPARATE ORGANIZATIONS, EACH ENTERING INTO AN
INDEPENDENT TRANSACTION.
•RELATIONSHIP SELLING –NARROWS THE VENDOR POOL,
IMPROVES EFFICIENCIES, WORKS DIRECTLY WITH
CUSTOMERS TO SOLVE PROBLEMS.
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8. TECHNOLOGY
•ACCESSIBILITY VIA COMPUTERS AND MOBILE
PHONES
•INTERACTIVE WEB PRESENCES
•ELECTRONIC DATA INTERCHANGE (EDI)
•EFFICIENT CUSTOMER RESPONSE (ECR)
•CUSTOMER RELATIONSHIP MANAGEMENT
SOFTWARE (CRM)
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9. LEADING VS. MANAGING
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Managing
•Control
•Supervisor/boss
•Direct
Leading (Mentoring)
•Communicate
•Cheerleader/coach
•Empower to make decisions

10. 1.3 SERVANT LEADERSHIP
•TAKE SUBORDINATES’ WORK SERIOUSLY
•TAKE LEAD FROM SUBORDINATES
•BUILD TRUST
•ALLOCATE REWARDS AND GLORY
•VIEW SELF AS STEWARD
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11. A GLOBAL ENDEAVOR
•DRIVERS
•CUSTOMERS CAN EASILY COMMUNICATE WORLD -WIDE
•SIGNIFICANT GROWTH OPPORTUNITIES LIE OUTSIDE
DOMESTIC MARKETS
•CUSTOMERS ARE GLOBAL
•DIVERSITY OF SALES FORCE CREATES CHALLENGES
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12. INNOVATION: BRIDGING THE
CULTURE GAP
•UNDERSTAND AND EMBRACE ETHNIC CUSTOMS
•ADAPT SELLING APPROACHES
•PORTRAY GENUINE INTEREST IN CULTURAL DIFFERENCES
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13. ETHICS
•TRUST IS NECESSARY TO MAINTAIN CUSTOMER LOYALTY
•LONG-TERM RELATIONSHIPS REQUIRE HIGHER ETHICAL
STANDARDS
•FEDERAL SENTENCING GUIDELINES DESIGNED TO PUNISH
UNETHICAL FIRMS
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14. SALES MANAGEMENT PROCESS
•THE FORMULATION OF A SALES PROGRAM
•THE IMPLEMENTATION OF THE SALES PROGRAM
•THE EVALUATION AND CONTROL OF THE SALES PROGRAM
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15. Sales Management Overview
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16. ENVIRONMENTAL IMPACT
•ENVIRONMENTAL FORCES CONSTRAIN PURSUIT
OF CERTAIN MARKETING STRATEGIES OR
ACTIVITIES
•ENVIRONMENTAL VARIABLES DETERMINE
ULTIMATE SUCCESS OR FAILURE OF MARKETING
STRATEGIES
•CHANGES IN THE ENVIRONMENT CREATE NEW
MARKETING OPPORTUNITIES
•ENVIRONMENTAL VARIABLES ARE AFFECTED BY
MARKETING ACTIVITIES
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17. COMPONENTS OF THE EXTERNAL
ENVIRONMENT
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18. ECONOMIC ENVIRONMENT
•BUYER-SELLER INTERACTIONS TAKE PLACE
WITHIN THE CONTEXT OF CURRENT
ECONOMIC CONDITIONS
•THE ECONOMY IMPACTS REAL POTENTIAL
DEMAND
•GLOBAL ECONOMIC CONDITIONS ARE
IMPORTANT
•COMPETITIVE STRUCTURE AFFECTS SELLING
SUCCESS
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19. LEGAL-POLITICAL ENVIRONMENT
•INCREASED NUMBER OF LAWS REGULATE CONDUCT OF
BUSINESS
•THREE BROAD CATEGORIES OF RELEVANT LAWS:
•ANTITRUST
•CONSUMER PROTECTION
•EQUAL EMPLOYMENT OPPORTUNITY
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20. ANTITRUST AND CUSTOMER
PROTECTION LAWS
•ANTITRUST PROVISIONS
•ROBINSON-PATMAN ACT
•TYING AGREEMENTS
•RECIPROCAL DEALING ARRANGEMENTS
•FEDERAL TRADE COMMISSION ACT
•UNFAIR METHODS OF COMPETITION
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21. ANTITRUST AND CUSTOMER
PROTECTION LAWS
•CONSUMER PROTECTION LAWS
•FAIR PACKAGING AND LABELING ACT
•TRUTH-IN-LENDING ACT
•COOLING-OFF LAWS
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22. 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:
•SALES TERRITORIES
•SALES REP DEPLOYMENT
•SALES PERFORMANCE EVALUATION
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23. SOCIAL AND CULTURAL
ENVIRONMENT
•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
•ETHICAL STANDARDS REFLECT INTEGRITY OF
FIRM
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24. NATURAL ENVIRONMENT
•NATURE INFLUENCES DEMAND FOR
PRODUCTS
•WEATHER
•NATURAL DISASTERS
•AVAILABILITY OF RAW MATERIALS
•ENERGY RESOURCES
•SHORTAGES MAY CAUSE DEMARKETING
•SOCIAL CONCERN ABOUT POSSIBLE NEGATIVE
ENVIRONMENTAL IMPACT OF PRODUCT AND
PRODUCTION
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25. INTERNAL ENVIRONMENT COMPONENTS
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26. GOALS/OBJECTIVES/CULTURE
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•MISSION AND OBJECTIVES DRIVE CUSTOMER
MANAGEMENT APPROACHES
Well-defined mission
Successful corporate history
Top management values
= Strong corporate culture
+

27. HUMAN RESOURCES
•SALES ORGANIZATIONS ARE HIGHLY COMPLEX AND
DYNAMIC
•OFTEN DIFFICULT TO EXPAND IN RESPONSE TO GROWING
MARKETS
•OUTSIDE SPECIALISTS CAN HELP MEET NEED TO EXPAND
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28. FINANCIAL RESOURCES
•LACK OF FINANCIAL RESOURCES CAN:
•CONSTRAIN ABILITY TO DEVELOP NEW PRODUCTS
•LIMIT PROMOTIONAL BUDGET
•LIMIT SIZE OF SALES FORCE
•MERGERS ARE SOMETIMES SOUGHT TO OBTAIN FINANCIAL
RESOURCES
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29. PRODUCTION AND SUPPLY CHAIN
CAPABILITY
•PRODUCTION CAPACITY
•TECHNOLOGY EQUIPMENT
•LOCATION OF PRODUCTION FACILITIES
•TRANSPORTATION COSTS
•ABILITY TO ENSURE SEAMLESS DISTRIBUTION AND SERVICE
AFTER THE SALE
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30. STRONG SERVICE CAPABILITIES
•COMPETITIVE ADVANTAGE OPPORTUNITY
•DIFFICULT FOR OTHER FIRMS TO COMPETE FOR SAME
CUSTOMERS
•CUSTOMERS RELUCTANT TO SWITCH REGARDLESS OF PRICE
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31. R&D AND TECHNOLOGICAL
CAPABILITIES
•EXCELLENT DESIGN AND ENGINEERING PROVIDE
PROMOTIONAL APPEAL
•COMMUNICATING TECHNOLOGICAL SOPHISTICATION AS
VALUE-ADD HELPS PREVENTS OVER-RELIANCE ON PRICE
FOR SALES
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