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Chapter5SalesManagement15.1TheTasksofSalesManagement79Thetasksofsalesmanagementareto1.Definesalesgoalsandthesalesprocess2.Determinethesalesforcestructure3.Recruitandtrainthesalesforce4.Compensateandmotivatethesalesforce5.Evaluatethesalesforce8025.1.1DefiningSalesGoalsandtheSalesProcess80

Effectivesalesmanagementbeginswithadeterminationofsalesgoals.Withoutgoalstoachieve,salespersonperformancewouldbemediocreatbest,andthecompanywouldlikelytofail.Greatsalesmanagersfocusnotonlyonsalesgoalsbutalsoontheentireprocessthatdrivestheirsalesorganizationstoreachtheirgoals.35.1.2DeterminingtheSalesForceStructure80

Becausepersonalsellingissocostly,nosalesdepartmentcanaffordtobedisorganized.Properdesignhelpsthesalesmanagerorganizedanddelegatesalesdutiesandprovidedirectionforsalespeople.45.1.3RecruitingandTrainingtheSalesForceSalesforcerecruitmentshouldbebasedonanaccurate,detaileddescriptionofthesalestaskasdefinedbythesalesmanager.Afterthesalesrecruithasbeenhiredandgivenabrieforientation,trainingbegins.Anewsalespersongenerallyreceiveinstructionincompanypoliciesandpractices,sellingtechniques,productknowledge,industryandcustomercharacteristics,andnonsellingdutiessuchasfillingoutsalesandmarketinformationreportsorusingasealsautomationcomputerprogram.8155.1.4CompensatingandMotivatingtheSalesForce82

Thethreebasiccompensationmethodsforsalespeoplearecommission,salary,andcombinationplans.

Motivationalsotakestheformofeffectivesalesleadershiponthepartofthesalesmanager.Aneffectivesalesmanagerisinspirationaltohisorhersalespeople,encouragingthemtoachievetheirgoalsthroughclearandenthusiasticcommunications.65.1.5EvaluatingtheSalesForce83

Thefinaltaskofsalesmanagersisevaluatingtheeffectivenessandperformanceofthesalesforce.Toevaluatethesalesforce,thesalesmanagerneedsfeedback—thatis,regularinformationfromsalespeople.75.2StepsintheSellingProcess

Whetherasalespersonspendsafewminutesoryearsonasale,thesearethesevenbasicstepsinthepersonalsellingprocess.84

1.Generatingleads2.Qualifyingleads3.Approachingthecustomerandprobingneeds4.Developingandproposingsolutions5.Handlingobjections6.Closingthesale7.Followingup85.2.1GeneratingNeeds84

Initialgroundworkmustprecedecommunicationbetweenthepotentialbuyerandthesalesperson.Leadgeneration,orprospecting,istheidentificationofthosefirmsandpeoplemostlikelytobuytheseller’sofferings.Thesefirmsorpeoplebecome“salesleads”or“prospects.”9

5.2.2QualifyingLeads85

Whenaprospectshowsinterestinlearningmoreaboutaproduct,thesalespersonhastheopportunitytofollowup,ofqualify,thelead.10Leadqualificationconsistsofdeterminingwhethertheprospecthasthreethings:

ArecognizedneedBuyingpowerReceptivityandaccessibility86

115.2.3ApproachingtheCustomerandProbingNeedsPriortoapproachingthecustomer,thesalespersonshouldlearnasmuchaspossibleabouttheprospect’sorganizationanditsbuyers.thisprocess,calledthepreapproach,describesthe“homework”thatmustbedonebythesalespersonbeforecontactingtheprospect.871287

Aspartoftheneedsassessment,theconsultativesalespersonmustknoweverythingthereistoknowabout:TheproductorserviceCustomersandtheirneedsThecompetitionTheindustry’

Creatingacustomerprofileduringtheapproachhelpssalespeopleoptimizetheirtimeandresources.135.2.4DevelopingandProposingSolutions88Oncethesalespersonhasgatheredtheappropriateinformationabouttheclient’sneedsandwants,thenextstepistodeterminewhetherhisorhercompanyproductsofservicesmatchtheneedsoftheprospectivecustomer.Thesalespersonthendevelopsasolution,orpossiblyseveralsolutions,inwhichthesalesperson’sproductorservicesolvestheclient’sproblemsormeetsaspecificneed.145.2.5HandingObjections90

Often,thesalespersoncanusetheobjectiontoclosethesale.Ifthecustomertriestopitsuppliersagainsteachothertodrivedowntheprice,thesalespersonshouldbepreparedtopointoutweaknessesinthecompetitor’sofferandstandbythequalityinhisorherownproposal.155.2.6ClosingtheSale90

Attheendofthepresentation,thesalespersonshouldaskthecustomerhowheorshewouldliketoproceed.Ifthecustomerexhibitssignsthatheorsheisreadytopurchaseandallquestionshavebeenansweredandobjectionshavebeenmet,thenthesalespersoncantrytoclosethesale.165.2.7FollowingUp91

Unfortunately,manysalespeopleholdtheattitudethatmakingthesaleisallthat’simportant.Oncethesaleismade,theycanforgetabouttheircustomers.Theyarewrong.Salespeople’sresponsibilitiesdonotendwithmakingthesalesandplacingtheorders.Oneofthemostimportantaspectsoftheirjobsisfollow-up.Theymustensurethatdeliveryschedulesaremet,thatthegoodsorservices

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