SALES MANAGEMENT

John Henry Patterson:

(December 13, 1844May
7, 1922)
The Father of Professional
Selling

Thomas John Watson Sr.(February 17, 1874 June 19,

1956) was an Americanbusinessman. He served as the
chairman and CEO ofInternationalBusinessMachines
(IBM)andoversawthecompany'sgrowthintoaninternational
force from 1914 to 1956. Watson developed IBM's
management style and corporate culture from
JohnHenryPatterson'strainingatNCR.
He turned the company into a highlyeffective selling
organization,
based
largely
onpunchedcard
tabulatingmachines.Aleadingselfmadeindustrialist, [4]hewas
one of the richest men of his time and was called the world's
greatestsalesmanwhenhediedin1956.

Patterson is best remembered today as the founder of

theNationalCashRegisterCompany(NCR)

If he were alive today he'd fire most of

the salespeople.
John Henry Pattersons favorite quote:
You must make your mark on this
earth, and, if you have never done so,
it is simply because you neglected to
use the powers you have, or you have
neglected to develop them
VIDEO

 The

sales-training manual, canned

presentation, protected territory, and
quota system are all products of
Patterson's fertile mind.
So are sales meetings, direct mail,
testimonials, industrial advertising,
and publicity.

Sales Management
American marketing association (AMAs)
definition states:
Sale Management means planning,
direction and control of personal selling
activities of a business unit including
recruiting, selecting, training, equipping,
assigning, routing, supervising, paying and
motivating, as all these tasks apply to the
personal sales-force.

Objectives of Sales
Management
To achieve Maximum Sales
To contribute to Profit-Maximization
To contribute to continuous growth of
Enterprise

Meaning of Personal
Selling

Person-to-person communication with a prospect

Personal selling is a process of
Developing relationships
Discovering needs
Matching products with needs
Communicating benefits
Viewed as a process that adds
value

Important Role of Personal

Selling

Often the major promotional method

Firms invest in personal selling

Personal selling has evolved because:

Products and services are more complex
Competition has greatly increased
Customer demand for quality, value, and service
has risen sharply.

Can we sell
without Selling?

Value Creation
Value-added selling = creative improvements
that enhance customer experience
The information economy rewards
salespeople who add value at each step
When customer is not aware of value added
by salespeople, the focus may shift to price

Philosophy of Personal
Selling
A

strategic resource is information

Salespeople are the eyes/ears of the

marketplace
Salespeople can collect wide range of
competitive intelligence

Business

is defined by customer
relationships
Sales success depends on
adding value.

Personal Selling in the

Information Age
An evolution from the industrial economy to
the information economy
Began in between 1950-1960

A Shift in Emphasis

Personal Selling as an Extension of

the Marketing Concept
Move from a product orientation (peddling)
to a customer orientation (partnering)

Value-Added Selling

A series of creative
improvements
in the sales process that
enhances
the customer experience.

Evolution of
Personal Selling

Marketing Era begins in 1950s

Influenced by an evolution from the
industrial economy to the information
economy.
New emphasis is on information exchange
rather than producing goods
Salespeople as a source of strategic
information on product/market/service.
Personal selling- the major promotional
method.

Consultative Era

Evolution of Consultative Selling

Consultative selling

Process that developed from the marketing concept,

emphasizing need identification.

Features of consultative selling include:

Customer is a person to be served, not a prospect to be sold

Two-way communication identifies (diagnoses) customers needs;

no high-pressure sales presentation

Emphasis on information giving, problem solving, and negotiation

rather than manipulation

Emphasis on service after the sale

Evolution of Strategic
Selling

A strategic market plan

Outlines necessary methods and

resources
Considers areas to be coordinated
Finance
Personnel
Production
Marketing
Influences the sale of products
Serves as guide for strategic selling plan

 Strategic

selling focus (early 1980s)

o Market niches require more planning
o Equal emphasis on strategy and tactics

Tactics

Specific techniques, practices, and methods used in customer

interaction

Strategy
Carefully conceived plan needed to accomplish sales objectives
A prerequisite to tactical success

Product positioning vital

Strategic selling is guided by
o The strategic market plan
o Coordination of all areas of business
o

The Partnering Era

Evolution of Partnering

Buzzword of 1990s, became business reality in 2000s

Stop Selling, Start Partnering redefines the new success factors

for every organization that faces the daily challenge of finding
and keeping customers.

Strategically developed, long-term relationship that solves the

customers problems

Enhanced with high ethical standards and CRM

Salespeople are forced to become more creative to close the deal.