kishore kandalai - 502 module 1 09may2011
TRANSCRIPT
Module 1 : Introduction to Sales Force Management
Running Head: Introduction to Sales Force Management
Module 1: Introduction to Sales Force Management
Kishore Kandalai
Aspen University
Module 1 : Introduction to Sales Force Management
Abstract
The purpose of the abstract is to provide the reader with a brief overview of the overall paper
which in this case is “5” essay questions.
1
.
Determine and summarize the typical characteristics of an outside sales force. Illustrate
situations in which producers, wholesalers, and companies that conduct business-to-
business sales rely on outside sales for product promotion.
2
.
A business writer observed, "It is folly to expect behavior A when rewarding behavior
B." Argue for or against the validity of this statement, and interpret its application to the
challenges involved in aligning sales force behavior with corporate strategic goals.
3
.
Compare and contrast the transactions-oriented and consultative sales strategies.
4
.
It is often said, "Salespeople are born, not made." Defend or negate the truth of this
statement, and verify your position with concrete examples.
5
.
Visit the following websites and assess their value as resources for sales managers.
Select and summarize the most significant issues currently faced by sales managers.
Sales and Marketing Management Executives International
Sales and Marketing Management Magazine
Defend or negate the truth of this statement, and verify your position with concrete
examples.
Module 1 : Introduction to Sales Force Management
Module 1 Deliverables
Assignments: Essay Questions
Essay Question 1
Determine and summarize the typical characteristics of an outside sales force.
Illustrate situations in which producers, wholesalers, and companies that conduct business-
to-business sales rely on outside sales for product promotion.
The sale of products or services by sales personnel who go out into the field to meet with
potential customers. Salespeople often travel to meet customers face-to-face, as well as to
maintain relationships with existing customers. However, some companies may consider
telemarketing a form of outside sales as well.
Outside selling involves two-way, personal communication between salespeople and
individual consumers. Outside selling can be more effective than advertising in more complex
selling situations. The role of personal selling varies from company to company. Some firms
have no salespeople at all. The sales force serves as a critical link between a company and its
customers. The salesperson can represent both buyer and seller. They represent company to the
customer and customers to the company. Salespeople are becoming more market-focused and
customer-oriented. The old view was that salespeople should be concerned with sales and the
company should be concerned with profit. The new view is that salespeople should be concerned
with more than just producing sales—they must know how to achieve customer satisfaction and
company profit.
Module 1 : Introduction to Sales Force Management
The selling process consists of several steps that the salesperson must master. These steps
focus on the goal of getting new customers and obtaining orders from them. Most salespeople
spend much of their time in maintaining existing accounts and building long-term customer
relationship.
These steps are:
1). Prospecting and qualifying. In this step the salesperson identifies qualified potential
customers.
2). Qualifying lead is the process of identifying good ones and screening out poor ones.
Prospects can be qualified by:
a) Financial ability.
b) Volume of business.
c) Special needs.
d) Location.
e) Possibilities for growth.
3). Reproach is the step in which the salesperson learns as much as possible about a
prospective customer before making a sales call.
a). Set call objectives.
b). Consider timing.
c) Have a sales strategy.
4) During the approach step, the salesperson should know how to meet the buyer, make him
satisfied and get the relationship off to a good start.
5) The presentation and demonstration is the step in which the salesperson tells the product
“story” to the buyer, showing how the product will make or save money for the buyer. A need
Module 1 : Introduction to Sales Force Management
satisfaction approach where the salesperson investigates the buyer’s needs and then matches the
product to those needs is advised.
6) Handling objections is the step in the selling process in which the salesperson seeks out,
clarifies, and overcomes customer objections regarding buying.
7) Closing occurs when the salesperson asks the customer for an order. The techniques for
closing include:
a). Ask for the order.
b). Review points of agreement.
c). Offer to help in writing up the order.
d). Ask whether the buyer wants this model or that one.
e). Note that the buyer will lose out if the order is not placed now.
8). The follow-up occurs after the sale and ensures customer satisfaction.
There are many different types of outside sales forces each requiring a different strategy
to be successful. Outside Sales forces can be either in business-to-business sales (eg: Firestone
selling tires to Ford) or in business-to-consumer (eg: State farm selling auto insurance to
consumers). Further, the salesperson in business-to-business sales calls on three distinct types of
business customers
Manufacturers (eg: Ford)
Intermediaries (eg: Dick’s Sporting Goods) and
Institutions (eg: Harvard University)
All salespeople sell products that are goods, services, or most commonly , some combinations of
the two, and that are being purchased for the purpose of consumption, incorporation or resale
Module 1 : Introduction to Sales Force Management
Essay Question 2
A business writer observed, "It is folly to expect behavior A when rewarding
behavior B." Argue for or against the validity of this statement, and interpret its
application to the challenges involved in aligning sales force behavior with corporate
strategic goals.
In 1975 an American academic named Steven Kerr wrote a short, powerful article
entitled "On the Folly of Rewarding A while Hoping for B". It was one of those rare cases where
the title succinctly captures an idea whose relevance and truth we all can recognize.
Kerr’s central point is that we can expect people to rationally do (or pretend to do) the
things that are rewarded rather than the things we say they should do. As has been said, "Put
your money on self-interest. At least you know the jockey is trying."
In World War II troops were committed for the duration unless killed or invalided. They
had a strong motivation to hasten the end of the war. Allied troops in the Vietnam War had a tour
of a year or less. Their self-interest was not tied to the end of the war.
While their governments wanted them to focus on winning the war, their rewards were
linked to looking after themselves. Not so their opponents. They were there for the duration.
We should not be surprised when doctors over test, overprescribe and over treat illness.
Under our health system, their patients bear little of the cost. So they have no incentive to resist
the doctors’ actions.
For doctors there may be some direct financial gain from overservicing. More important
though is the possible costs and professional damage from malpractice suits. Overservicing
diminishes the chance of facing such suits, or losing them if they occur.
Module 1 : Introduction to Sales Force Management
So, while as taxpayers we would prefer doctors to test and treat at the level warranted by
the circumstances of the case, in fact we have a reward system that encourages contrary
behaviour.
Most of us want honest politicians who tell us clearly what they will do in office, then
stick to that once elected. In fact, politicians don’t behave that way, yet they still get elected.
Their chance of being elected is frequently harmed by candour about programs. It is the
community, with a strong contribution from the media, which sustains this reward system.
Politicians behave rationally within it.
Likewise, we expect our public service to do the best it can with the community resources
available to it. Yet all senior public servants know the overriding rule is to avoid embarassing the
minister, since that harms the government’s standing and may cost it votes.
So community good, typically hard to measure, plays second fiddle to avoiding
identifiable errors ¾ which are far easier for the media, talkback radio and the community at
large to identify and blame on someone.
This is a recipe for weak decision making in public sector management. It provides a
powerful argument for limiting government activity. It is not a matter of inadequate public
servants. It is the consequence of a community supported reward system unavoidably biased
against good public sector management.
All of the above are examples of reward systems which encourage behaviour contrary to
what is wanted. In his article Kerr pointed out that business is not immune to this folly.
Espousing long term growth and profitability while rewarding short term results is an
example. Or asking people to accept the challenge of stretching targets but rewarding those who
meet budget ¾ even if those budgets contain little stretch. The folly appears when we make a
Module 1 : Introduction to Sales Force Management
commitment to TQM yet put pressure on staff to meet near term production and sales volumes
irrespective of the quality implications.
The US Academy of Management recently polled a number of senior executives on the
prevalence of this folly in business today2. Those executives reported it alive and well. Instances
they quoted are shown in the table below.
Hoping for . . . While rewarding . . .Teamwork and collaboration The best team membersInnovative thinking and risk taking Proven methods and not making mistakesDevelopment of people skills Technical achievements and accomplishmentsEmployee involvement and empowerment Tight control over operations and resourcesHigh achievement Another year’s effort
They attribute these follies to:
An inability to break out of old ways of thinking about reward practices.
Lack of an overall system view of performance factors and results.
Continuing focus on short term results by management and shareholders.
To those reasons we might add cases where we espouse something in which we do not wholly
believe.
Essay Question 3
Compare and contrast the transactions-oriented and consultative sales strategies.
Transactional selling is targeted at customers who are not interested in, or who are unable
to afford, the value-added services offered by the selling firm. With this approach, the
salesperson does not follow up with the customer after the sale and is not concerned about
cultivating a long term relationship
Module 1 : Introduction to Sales Force Management
Alternatively, consultative selling is used for those customers interested in the value-added
services. Consultative selling involves salespeople who have in-depth knowledge of their
Customers Company and business. In fact , a team of individuals from the selling firm might be
involved since it is often difficult for a single salesperson to provide all the necessary knowledge.
Consultative sales people or sales teams create value for their customers by identifying problems
and finding mutually beneficial solutions
A selling firm engages in multiple relationship strategy when it reaches some customers through
transactions selling and other customer through consultative selling.
Microsoft has dramatically different selling relationships with its many business customers.
Interestingly, the differences are not always due to size of the customer. Microsoft has
transactional relationships with some of these largest national accounts. Certain firms corporate
cultures that resist forming close partnerships and sharing proprietary information with vendors
Essay Question 4
It is often said, "Salespeople are born, not made." Defend or negate the truth of this
statement, and verify your position with concrete examples.
Good salespeople are committed to their craft, and they naturally say, "I am a salesperson." Good
salespeople also have what Alexander the Great called dynamis - the will to fight. They know
how to listen, and they know how to learn. Sales requires a certain disposition in the
professional: attentiveness, enlivened by a sense of responsibility to the customer and an intense
personal desire to solve problems. Salespeople are not tourists in their profession. But these are
table stakes for being a professional of any kind. Deliberate practice is the key difference
between great salespeople and everyone else.
Module 1 : Introduction to Sales Force Management
Training is important. Good sales training develops skills and characteristics that drive sales.
There are many ways to describe training, but I like a good/bad format:
Good training doesn't criticize or praise. Good training measures results.
Good training teaches how to sell. Bad training teaches "what" to sell.
Good training is consistent. Bad training occurs randomly.
Good training deliberately focuses on one skill and metric at a time.
Good training inspires confidence. Bad training inspires hubris.
Good training creates insight. Bad training creates blind spots.
Good training provides a program of deliberate practice that requires and enables
salespeople to improve their sales results dramatically and consistently over time.
Formally speaking, the theory of deliberate practice that underlies any good training regimen or
program is
Intended to improve performance
Designed by an expert, Repeated a lot
Continuously generating feedback on results
Highly demanding mentally
Mimics performance environment
Not much fun.
Inexperienced but professional salespeople with dynamics who practice deliberately can become
great. That’s why great sales managers are also very capable trainers. Their salespeople become
Module 1 : Introduction to Sales Force Management
better producers the longer they work together. If salespeople were born, that could never
happen.
Essay Question 5
Visit the following websites and assess their value as resources for sales managers. Select
and summarize the most significant issues currently faced by sales managers.
Sales and Marketing Management Executives International
Sales and Marketing Management Magazine
These websites are resourceful for pursuing a career in sales, SMEI Provides details on Sales
Certification and Education to attain Certification in sales at all levels of Sales Career.
Starting for Sales Person to Sales Manager / Sales Executive. Details of Benefits of Certification
and Accreditation, Industry Recognition of Sales Certification and details of Upcoming Events
for aspiring sales executive to attend learn and network.
Sales and Marketing Management Magazine has the following regular Web casts, e-newsletters,
white papers, broadcasts and more, all provide our readers easy access to the most relevant
trends, strategies, exclusive research, expert voices, and cutting-edge case studies designed to
help them sell more, manage better, and market smarter.
The articles on the SMM are very resourceful
Walking the Tightrope - Provides tips for successfully incorporating Facebook and blogging into
our marketing efforts
Brand Boosting That Drives Top-Line Growth - Six steps to elevate brand building to its rightful
position as a driver of growth
Lessons From the Back Seat of A Cab - What every sales professional needs to know
Module 1 : Introduction to Sales Force Management
SMM Connect is Strong networking Tool for Sales Executives .
References
http://www.salesandmarketing.com
http://www.smei.org/
http://thesalesblog.com
Management of Sales Force – Rosann L Spiro, Gregory A.Rich, William J.Stanton – 12th Edition.