Wassie Getahun (PhD)

email:
[email protected]/wassiegetahun@y
mail.com
• Selling Happens Almost Everywhere.

“Everyone lives by selling something”

“I don’t care how many degrees you have

on the wall, if you don’t know how to
sell, you’re probably going to starve.”
• Course Description

• This course is aimed to equip students

with a fundamental understanding of
sales and distribution management.
• The Course covers various theories and
concepts including the process of sales
management practice ranging from sales
force recruitment to performance
evaluation.
• Furthermore, it elucidates essential
functions of logistics and channel
management.
• Discuss the functions of sales management,
and its tools and trends.
• Elucidate contemporary issues in sales and
distribution management.
• Identify the challenges of sales and channel
management practice of some selected
businesses in Ethiopia.
• Identify relevant and researchable areas in the
course.
• Explore common ethical challenges in sales.
• Develop a strategic sales plan.
• Chapter One: Fundamentals of sales
management
• Chapter Two: Sales force Recruitment and
Selection
• Chapter Three: Training, motivation and
compensation of sales people
• Chapter Four: Evaluating Salesperson
Performance
• Chapter Five: Sales forecasting
• Chapter Six: Ethics in Sales and Sales
Management
• Chapter Seven: An overview of Logistics &
Channel management
• Classroom activities will consist of lecture and
class discussions based on assigned cases and
readings.
• Students are expected to take part in class room
discussion and submit assignments as
scheduled by the instructor.
• In addition, students should keep up the highest
level of professionalism throughout the course.
Class participation is highly encouraged and
will be rewarded with points.
• Methods of Evaluation
Article & Book Reviews………....….10%
Case Analysis and presentation...........20%
Final Exam…….…..………............… 70%
Essential Elements/components of SM
Elements
• Sales management originally referred
exclusively to the direction of sales force
personnel. Later, meant management of all
marketing activities, including advertising, sales
promotion, marketing research, physical
distribution, pricing, and product merchandising
• Sales management is the process of developing a
sales force, coordinating sales operations, and
implementing sales techniques that allow a
business to consistently hit, and even surpass, its
sales targets.
HTTP://WWW.pipedrive.com/en/blog/sales-
management
• Sales management refers to the administration of
the personal selling a company's product line(s).
• It includes the planning, implementation, and
control of sales programs, as well as recruiting,
training, motivating, and evaluating members of
the sales force.
https://www.inc.com/encyclopedia/sales-management.html
• Sales management is simply
management of an organization’s
personal selling function.
• Sales management is a key
function in many kinds of
enterprises
• Manufacturing and wholesaling
enterprises
• Retail institutions, small and large,
• Firms selling intangibles,
• insurance company, the
stockbroker, the mutual funds, and
the airline.
Defining SM (Cont'''D)

• Definitions committee of the American

Marketing Association agreed that
sales management meant
• “the planning, direction, and control of
personal selling, including recruiting,
selecting, equipping, assigning, routing,
supervising, paying, and motivating as
these tasks apply to the personal
Salesforce.”
Defining SM (Cont'''D)

• The above mentioned definitions made

sales management synonymous with
management of the sales force, but
modern sales managers have
considerably broader responsibilities.
• Sales managers are in charge of
personal-selling activity, and their
primary assignment is management of
the personal sales force.
Sales Professionals

• Today’s sales executives are professionals.

• They plan, build, and maintain effective
organization and design and utilize efficient
control procedures.

• Sales managers are involved in both the

strategy (planning) and people
(implementation) aspects of personal selling,
as well as in evaluating and controlling
personal selling activities.
• They must be able to deal effectively with
people in the personal selling function, with
people in other functional areas in the
organization, and with people outside the
organization, especially customers (Thomas
etal, 2006).
Sales Professional

• The professional approach requires:

thorough analysis, market-efficient
qualitative and quantitative personal-
selling objectives,
appropriate sales policies,
and personal-selling strategy
application of organizational principles
to the conduct of sales operations
demands the ability to install, operate,
and use control procedures.
WHAT IS SALES…

• Sales managers are responsible for

organizing the sales effort, both within
and outside their companies.
• Within the company, the sales manager
builds formal and informal
organizational structures that ensure
effective communication not only
inside the sales department but in its
relations with other organizational
units.
WHAT IS SALES…

• Outside the company, the sales manger serves

as a key contact with customers and other
external public and is responsible for building
and maintaining an effective distribution
network.

• Sales managers have still other responsibilities

participating in the preparation of information
critical to the making of key marketing
decisions:
• such as those on budgeting, quotas, and
territories on products, marketing channels
and distribution policies, advertising and other
promotion, and pricing.
WHAT IS SALES…

• Thus, the sales manager is

 both an administrator in charge of personal-
selling activity and
 a member of the executive group that makes
marketing decisions of all types.

• Therefore, Sales Management is the

attainment of sales force goals
• in an effective and efficient manner
• through planning, staffing, training, leading
and controlling organizational resources.
Figure 1-1:
Positions of Personal Selling and
Sales Management in the Marketing Mix

Marketing
mix

Products Prices Promotion Distribution

Public Personal Sales

Advertising Internet
relations selling promotion

Sales
management

Planning Motivating
Budgeting Compensating
Recruiting and selecting Designing territories
Training Evaluating performance
Customer Expectations of Salespeople

“Be personally accountable for our desired

results”

“Understand our business”

“Be on our side”

“Design the right applications”

“Be easily accessible”

“Solve our problems”

“Be creative in responding to our needs”

Figure 1-6:
A Model of Sales
Management Competencies

Strategic
Action
Competency
Technology Coaching
Competency Sales Competency
Management
Global Effectiveness Team
Perspective Building
Competency Self- Competency
Management
Competency
Strategic Action Competency
Dimensions
Strategic Action Competency
Dimensions

Understanding the Organization:

§ Understands the vision, overall strategy, and

goals of the organization

§ Appreciates the distinctive competencies of the

organization with respect to market
opportunities and limitations

§ Understands how to marshal organizational

resources to meet the needs of the customers
Strategic Action Competency
Dimensions

Taking Strategic Actions:

§ Assigns priorities and making decisions that are

consistent with the firm’s mission and strategic goals

§ Implements specific account selection, retention, and

dominance strategies

§ Develops an appropriate portfolio of account

relationships

§ Considers the long-term implications of actions in

order to sustain and further develop the organization

§ Establishes tactical and operational goals that

facilitate the firm’s strategy implementation.
Coaching Competency
Dimensions

Providing Verbal Feedback:

§ Provides specific and continuous

performance and selling skills feedback

§ Builds a feeling of appreciation and

recognition by taking the time to
acknowledge a job sell done, and effort
beyond the call of duty or an important
victory

§ Reinforces successes and nice-tries to

support desirable behaviors
Coaching Competency
Dimensions

Role Modeling:

§ Leads by example, rather than decree

§ Provides role models, either themselves or

others, and sharing best practices

§ Models professional attitudes and behaviors.

Coaching Competency
Dimensions

Trust Building:

§ Maintains good rapport with the sales team

and fosters open communications,
collaboration, creativity, initiative, and
appropriate risk taking

§ Adds value through communicating relevant

selling experiences

§ Helps salespeople to “look good” through

two-way communications
Team building Competency
Dimensions

Designing Teams:
§ Implements an organizational architecture that
will support teams

§ Creates a reward system that is fair within the

context of a team effort

§ Coordinates team goals with the overall goals of

the organization

§ Coordinates team activities with the

requirements of functional areas within the
organization
Team building Competency
Dimensions

Creating a Supportive Environment:

§ Hires people that will be successful in a team

environment

§ Trains programs that encourage teamwork

§ Integrates the individual members of the sales

team together to form a functioning supportive
team.
Team building Competency
Dimensions

Managing Team Dynamics:

§ Understands the strengths and weakness of

team members and using their strengths to
accomplish tasks as a team

§ Facilitates cooperative behavior and keeps the

team moving towards its goals.
Self-Management Competency
Dimensions

Fostering Integrity and Ethical Conduct:

§ Has clear personal standards that serve as a

foundation for a sense of integrity and ethical
conduct by the sales team

§ Projects self-assurance and does not just tell

people what they want to hear

§ Willing to admit mistakes and accepts

responsibility for own actions.
Self-Management Competency
Dimensions

Managing and Balancing Personal Drive:

§ Seeks responsibility, works hard and is
willing to take risks
§ Shows perseverance in the face of obstacles
and bounces back from failure
§ Ambitious and motivated to achieve
objectives, but does not put personal
ambition ahead of the organization’s goals
§ Understands that goals are achieved through
the success and development of the
salespeople.
Self-Management Competency
Dimensions

Developing Self-Awareness and Management

Skills:

§ Has clear personal and career goals and knows

own values, feelings and areas of strengths and
weaknesses

§ Analyzes and learns from work and life

experiences

§ Willing to continually unlearn and relearn as

changing situations call for new skills and
perspectives.
 Global Perspective Competency
Dimensions

Cultural Knowledge and Sensitivity:

§ Stays informed of political, social, and
economic trends and events around the
world
§ Recognizes the impact of global events on
the market and the organization
§ Sensitivity to cultural cues and ability to
adapt quickly in novel situations
§ Travels regularly and has a basic business
vocabulary in languages relevant to the
position.
Global Perspective Competency
Dimensions

Adapting Global Selling Program:

§ Adopts an appropriate sales force
architecture for global accounts
§ Appropriately adjusts sales force
measurement, competency creation and
motivation systems to the local culture
§ Appropriately adjusts own behavior when
interacting and managing people from
various national, ethnic and cultural
backgrounds.
Technology Competency
Dimensions

Understanding of New Technology:

§ Awareness of the potential for technology to

increase sales force efficiency and
effectiveness

§ Experience in using new technology

§ Attitude toward adopting new technology

Technology Competency
Dimensions

Implementing Sales Force Automation:

§ Knows what is to be accomplished and the

benefits that are possible

§ Adapts personal management style and

procedures

§ Fosters sales force acceptance and use of

selling technology.
Difference between personal Selling & SM

Personal selling involves the two-way

flow of communication between a
buyer and seller, often in a face-to-
face encounter, designed to
influence a person’s or group’s
purchase decision.

Slide 20-11
 THE MANY FORMS OF
PERSONAL SELLING

• Order Taking
 Outside Order Takers
 Inside Order Takers, Order Clerks,
or Salesclerks
 Inbound Telemarketing
• Order Getting
 Outbound Telemarketing
Slide 20-13
FIGURE 20-2 How outside order-getting
salespeople spend their time each week

Slide 20-16
 THE MANY FORMS OF
PERSONAL SELLING

• Customer Sales Support Personnel

 Missionary Salespeople – promotion and introduction

 Sales Engineer – identifying, analyzing & solving

 Team Selling – team of professionals (cross-functional)

 Conference Selling – discuss problems and opportunities

 Seminar Selling –
technical staff
conducts educational program for

Slide 20-17
 MARKETING NEWSNET

Creating and Sustaining Customer Value

through Cross-Functional
Team Selling

Slide 20-18
THE PERSONAL SELLING PROCESS:
BUILDING RELATIONSHIPS

• Personal Selling Process – six

stages:
1. Prospecting
2. Preapproach
3. Approach
4. Presentation
5. Close
6. Follow-up
Slide 20-21
THE PERSONAL SELLING PROCESS:
BUILDING RELATIONSHIPS

• Prospecting – search for and qualification

of potential customers
 Lead – name who may be possible customer

 Prospect – customer who wants or needs product

 Qualified Prospect – want, money, and authority to buy

 Cold Canvassing

Slide 20-21
THE PERSONAL SELLING PROCESS:
BUILDING RELATIONSHIPS

• Preapproach – obtaining further

information about prospect and deciding
best method of approach

• Approach – initial meeting between

salesperson and prospect

Slide 20-25
THE PERSONAL SELLING PROCESS:
BUILDING RELATIONSHIPS

• Presentation
 Stimulus-Response Format
• Stimulus-Response Presentation

• Suggestive Selling

 Formula Selling Format

• Formula Selling Presentation

• Canned Selling Presentation

Slide 20-27
 SALES PRESENTATION METHODS –
SELECT ONE CAREFULLY

• The four sales presentation methods are:

– Memorized
– Formula
– Need-satisfaction
– Problem-solution
• The basic difference between the four
methods is the percentage of the
conversation controlled by the salesperson.
 SALES PRESENTATION METHODS –
SELECT ONE CAREFULLY
• Four Sales Presentation Methods
1. The Memorized Sales Presentation (canned)
• Salesperson’s role is to develop initial stimulus
into an affirmative response to an eventual
purchase request.
2. The Formula Presentation (persuasive selling)
• The salesperson follows a less structured,
general outline in making a presentation,
allowing more flexibility and less direction
(AIDA). Controls conversation during sales
talk; especially at the beginning.
SALES PRESENTATION METHODS –
SELECT ONE CAREFULLY

3. The Need-Satisfaction Presentation

• Designed as a flexible, interactive sales
presentation, yet the most challenging
and creative form of selling
• Need-development phase
• Need-awareness phase
• Need-fulfillment phase
SALES PRESENTATION METHODS –
SELECT ONE CAREFULLY
4. The Problem-Solution
Presentation
• Selling highly complex or technical
products
• It may take several sales calls to
develop a detailed analysis
• A flexible, customized approach to
involving an in-depth study of a
prospect’s needs
A Salesperson and Customer
What type of presentation format and why use it?

Slide 20-29
THE PERSONAL SELLING PROCESS:
BUILDING RELATIONSHIPS

• Presentation
 Handling Objections
• Acknowledge and Convert the Objection

• Postpone

• Agree and Neutralize

• Accept the Objection

• Ignore the Objection

Slide 20-30
THE PERSONAL SELLING PROCESS:
BUILDING RELATIONSHIPS

• Close – obtaining purchase

commitment
 Trial Close
 Assumptive Close
 Urgency Close
 Final Close
• Follow-Up
Slide 20-32
• Sales managers work with and through
individuals and groups in the company, in the
sales force, and The sales manager’s main
goal is to achieve the levels of
sales volume, profits and customer
satisfaction desired by high levels of
management.

 The factors underlying a manager’s success in

achieving these goals is the ability to
influence the behavior of all parties involved
in the sales process
• including the ability to influence salespeople.
 To do what they would not do on their own
Planning

The most important part of managers’

function is deciding what is to be done
in the future,
with whom to do it,
how and when to do it to achieve
organizational goals.
• In other words, planning defines
 where the organization wants to be in
the future and
how to get there.
Staffing

a manager usually can not do the job

alone
People are the most important parts in
the management process.
• staffing refers to activities undertaken
to
attract, develop, and maintain effective
sales personnel
within an organization.
Training

the effort put forth by an employer

to provide the sales personnel job
related
culture, skills, knowledge attitudes
that result in an improved performance
in the selling environment
Leading

is the ability to influence other people

toward attainment of objectives.
• It means
communicating goals to people
throughout the sales group and
infusing people with the desire to
perform at a high level.
Controlling

• A combination of a
 comprehensive plans,
 good people, quality training and outstanding
leaders
• still does not guarantee success
 also important
 to understand the organization’s past and
present situations.

• Controlling means
• monitoring sales personnel's activities,
• determining whether the organization is on
target toward its goals,
• and making corrections as necessary.
FIVE FUNCTIONS…

• Managers must set:

performance standards that indicate
progress toward long term goals
 Monitor the performance of
salespeople and units
by collecting performance data
provide people with feedback or
information about their progress
identify performance problems by
comparing performance data against
standards
take action to correct problems.
• Discuss the importance of
studying sales
Management.

• Distinctions among Sales

Management, Personal
selling & Salesmanship .