Sales Force Management
13th Edition
Mark W. Johnston
Greg W. Marshall
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Introduction to Sales Management in the
Twenty-First Century
CHAPTER 1
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Learning Objectives
• Identify/discuss key trends
affecting managers of sales
organizations today
• Present a general overview of the
sales management process
• Identify and illustrate key external
and internal environmental
factors influencing the
development of marketing
strategies and sales programs
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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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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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Innovation Fuels Success in Selling Today
• 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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Sales Effectiveness Is Enhanced through
Technology
• Accessibility via computers, tablets, and mobile phones
• Interactive web presences
• Electronic Data Interchange (EDI)
• Efficient Customer Response (ECR)
• Customer Relationship Management Software (CRM)
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Leadership Is a Key Component in Sales
Management Success
Leading vs. Managing
Managing
• Control
• Supervisor/boss
• Direct
Leading (Mentoring)
• Communicate
• Cheerleader/coach
• Empower to make decisions
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Servant Leadership
• Take subordinates’ work seriously
• Take lead from subordinates
• Build trust
• Allocate rewards and glory
• View self as steward
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Sales Management Is a Global Endeavor
• Drivers
– Customers can easily communicate worldwide
– Significant growth opportunities lie outside
domestic markets
– Customers are global
• Diversity of sales force creates challenges
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Innovation: Bridging the Culture Gap
• Understand and embrace ethnic customs
• Adapt selling approaches
• Portray genuine interest in cultural differences
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Ethics Underlies All Selling and Sales
Management Activities
• 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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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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Overview of Sales Management
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Environmental Factors Impact Success in
Selling
• 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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Components of the External
Environment
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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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Global Legal and 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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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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Antitrust and Customer Protection Laws
• Consumer Protection Laws
– Fair Packaging and Labeling Act
– Truth-in-Lending Act
– Cooling-off laws
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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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Social and Cultural Environment: Ethics
• 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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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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Components of the Internal Environment
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Goals, Objectives, and Culture
• Mission and objectives drive
customer management
approaches
Well-defined mission
Successful corporate history
Top management values
+
Strong corporate culture
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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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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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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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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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Research and Development (R&D) and
Technological Capabilities
• Excellent design and engineering provide
promotional appeal
• Communicating technological sophistication
as value-additions helps prevents over-
reliance on price for sales
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