Sales. Management. Shaping Future Sales Leaders. JOHN F. TANNER JR. ...
GLOBAL SALES MANAGEMENT Going Global to Achieve Growth.
Sales
Management Shaping Future Sales Leaders JOHN F. TANNER JR. Baylor University
EARL D. HONEYCUTT JR. Elon University
ROBERT C. ERFFMEYER University of Wisconsin - Eau Claire
Pearson Education International
Contents
Preface xix Acknowledgments xxi About the Authors xxiv
PART ONE
Strategic Planning "xxvi
Chapter 1 Introduction to Sales Management 2 From Sales Rep to Sales Manager
4
Establishing the Parameters of the Firm's Strategy: The Mission Statement
5
The Strategy Hierarchy
5
What Markets Do We Serve with What Products?
7
What Types of Relationships Do We Form and with Whom? 8 •
GLOBAL SALES MANAGEMENT
•
SELF-ASSESSMENT LIBRARY 12
Going Global to Achieve Growth
What Level of Investment Will Be Required, and How Will We Allocate the Needed Resources? 10 What Are the Detailed Objectives and Action Plans?
Selling Approaches
12
The Selling Process
13
Prospecting
14
Pre-Approach Approach
11
14
14
Needs Identification Presentation
14
15
Handling Objections
16
Closing the Sale 16 Implementation/Follow-up
17
The Selling Process versus the Selling Approach Sales Leaders
17
The Sales Executive •
18
ETHICS IN SALES MANAGEMENT Culture 19
The Field Sales Manager Summary Key Terms
Maintaining NCR's Ethical Sales
20
21 21
Questions and Problems Role Play: T&G Supply
22 22
•
CASELET1.1
Killebrew Manufacturing
•
CASELET 1.2
Morton's Ice House
References
17
23
23
23 • IX
CONTENTS
Chapter 2
The Sales Function and Multi-Sales Channels The Sales Function
26
Selling in a Multi-Channel Environment M GLOBAL SALES MANAGEMENT
28
Outsourcing to India
To Outsource or Not to Outsource the Sales Function Types of Outsourced Salespeople Aligning the Organization Achieving Alignment
32
SELF-ASSESSMENT LIBRARY 35
•
ETHICS IN SALES MANAGEMENT
Key Terms
37
31
34
•
37
Questions and Problems
Stuck in AOHell
38
Sales Manager's Workshop: Promedia Technology (PMT)
39
•
CASELET 2.1
Hereford Promotions
•
CASELET 2.2
Marchetti Machines: One Big Happy Family
Reference
Chapter 3
36
38
Role Play: Mechanix Illustrated
PART TWO
29
30
30
Types of Company-Employed Salespeople
Summary
24
40
42
Sales Leadership
43
Leadership and the Sales Executive What Is Leadership?
44
46
Leading versus Managing
46
Understanding Leadership: An Historical Perspective
47
The Behavioral Approach: "This is How a Leader Behaves" B GLOBAL SALES MANAGEMENT Marketplace •
41
49
Identifying Leaders in a Global
50
SELF-ASSESSMENT LIBRARY 51
Situational Approaches "Assess the Situation, then Adjust Behavior to It"
52
Contemporary Perspectives of Leadership: "Motivate Your Followers Through Leadership"
53
Emerging Leadership Concepts: "Develop Your Followers" •
ETHICS IN SALES MANAGEMENT Motors 55
Leadership Challenges for the Sales Executive Summary Key Terms
58 58
Role Play: Jackson Kramer Clothiers
Chapter 4
56
57
Questions and Problems
58
•
CASELET 3.1
"I Never Thought About It"
•
CASELET 3.2
"Coach" Charlie Hustle
References
54
Ethical Leadership at Ken Vance
59
60
60
Ethics, the Law, and Sales Leadership Approaches to Ethics The Golden Rule 65
65
62
CONTENTS •
SELF-ASSESSMENT LIBRARY 66
The Conventionalist Approach 66 The Protestant Ethic 67 The Market Imperative
67
The Libertine Ethic 67 The Utilitarian Ethic
68
The Salesperson as a Boundary Spanner •
ETHICS IN SALES MANAGEMENT
Common Ethical Issues Facing Salespeople Creating an Ethical Sales Climate •
80
Key Terms
81
The Caux Round Table
Questions and Problems
79
81
Role Play: Magnum Performance
83
•
CASELET 4.1
Patman Paper Co.
•
CASELET 4.2
Callahan Car Parts
References
74
76
Laws for Sales Managers Summary
69
70
72
GLOBAL SALES MANAGEMENT
Sales-Related Laws
68
Done Right
83 84
84
PART THREE Analyzing Customers and Markets
87
Chapter 5 Business-to-Business (B2B) Sales and Customer Relationship Management 88 Understanding B2B Purchasing Decisions 90 The Buyer's Decision-Making Process 90 Organizational Buying Situations
90
Understanding the Buyer's Criteria
92
Buying Center, or Group, Purchases 92 Team Selling and Multi-Level Selling •
94
SELF-ASSESSMENT LIBRARY 95
B2B Customer Relationship Management •
TECHNOLOGY IN SALES MANAGEMENT a Firm's Sales Are Profitable 97
The Nature of B2B Relationships •
96 Technology Can Help Ensure
98
GLOBAL SALES MANAGEMENT Other Cultures 100
Customer Lifetime Value (CLV) Strategies
Forming Business Relationships in 100
The Stages of B2B Customer Relationship Management Maximizing the Buyer's Value
102
Risk and the Organizational Buyer Important Salesperson Behaviors
103 104
Why Business Relationships End 104 Summary
105
Key Terms
106
Questions and Problems
106
102
XI
XII
CONTENTS Role Play: Managing a Sales Team at Alamance Associates
107
Sales Manager's Workshop: Adjusting the Territory Sizes within a Sales District •
CASELET 5.1
•
CASELET 5.2 Choosing a CRM System for Burlington Mechanical Solutions 109
References
Managing Buying Dynamics at Hughes Aircraft
108
108
110
Chapter 6 Leveraging Information Technologies 112 Commonly Used Technology
114
Sales Management Software
115
Knowledge Management, Proposal Writing, and Pricing Software Sales Force Automation Systems
Customer Relationship Management Software •
115
116
GLOBAL SALES MANAGEMENT
118
Global Issues in Sales Technology
The Challenges of Implementing CRM and SFA Systems
119
124
O SELF-ASSESSMENT LIBRARY 125 Salesperson/Sales Manager Issues
125
Encouraging Salespeople to Use Technology Effectively •
ETHICS IN SALES MANAGEMENT Benefits of CRM Systems 127
Summary
125
Ensuring Salespeople Derive the
128
Key Terms
128
Questions and Problems
129
Role Play: Blackburg Technologies
129
Sales Manager's Workshop: Promedia Technology: Familiarizing Yourself with Aplicor
130
•
CASELET 6.1
Frisco Solutions
•
CASELET 6.2
Zeron Corporation
References
130
131
131
• •
PART FOUR Designing and Developing the Sales Force
133
Chapter 7 Designing and Organizing the Sales Force 134 How a Firm's Goals Affect the Design of Its Sales Force
136
Organizing the Members of the Firm's Sales Force
137
The Size of the Sales Force 137 Specialists versus Generalists
139
Geographical, Product, and Market Structures Key Account Structures •
140
143
GLOBAL SALES MANAGEMENT
Sales Structures in Global Markets
144
D SELF-ASSESSMENT LIBRARY 145 Telemarketing and Computerized Sales Structures •
GLOBAL SALES MANAGEMENT Home 147
146
Some Offshore Call Centers Go Back
Reporting Relationships within a Firm's Sales Force Span of Control
149
Adding Independent Sales Reps to the Sales Structure •
149
ETHICS IN SALES MANAGEMENT
Company Salesperson or Sales Agent?
150
Ethical Dilemmas with Partners 152
152
CONTENTS Summary
154
Key Terms
154
Questions and Problems
154
Role Play: Structuring the Sales Effort at Green River Software
155
•
CASELET 7.1
Jefferson Pilot Reorganizes Its Sales Force
•
CASELET 7.2
IMC Considers Offshoring Its Call Center
References
156 157
157
Appendix 7A Computing the Point When It Is Time To Switch From a Company Salesperson To a Sales Agent 159
Chapter 8
Recruiting and Selecting the Right Salespeople Successful Hiring Requires Sales Managers to Follow a Process Planning to Hire
162
Calculating the Turnover Rate Conducting a Job Analysis
163
164
Writing a Job Description
165
Finding and Recruiting Applicants Recruiting Internal Applicants External Applicants •
166
166
167
ETHICS IN SALES MANAGEMENT When Should a Sales Manager Raid Her Competitors'Sales Force? 167
Selection Procedures Application Forms •
160
162
170
171
SELF-ASSESSMENT LIBRARY 173
The Personal Interview
174
Background Verification
177
Physical Exam 177 Making the Job Offer
177
Transitioning New Hires
178
•
Why a Diverse Sales Force Is Important Avoiding Common Hiring Mistakes •
179
180
GLOBAL SALES MANAGEMENT Your Company Abroad? 181
Who Should You Hire to Represent
Evaluating the Success of the Firm's Sales Force Recruiting and Selection Efforts 182 Summary Key Terms
183 183
Questions and Problems
183
Role Play: WRT Plans for Salesperson Interviews •
CASELET 8.1
Southeastern Industrial
•
CASELET 8.2
Harmony International
References
Chapter 9
184 185 185
186
Training and Developing the Sales Force How Important Is Sales Training? The Training Process
188
190
193
Identifying the Firm's Sales Training Needs 193 •
GLOBAL SALES MANAGEMENT Sales Force 196
The Challenges of Training a Global
XIII
XIV
CONTENTS D SELF-ASSESSMENT LIBRARY 198 Designing and Developing the Sales Training Program •
ETHICS IN SALES MANAGEMENT
198
Can You Teach Sales Ethics?
199
Delivering the Training 205 Assessing the Firm's Training Efforts
206
Completing the Sales Training Cycle 208 Summary
210
Key Terms
211
Questions and Problems
211
Role Play: Home Fire Lights
211
Sales Manager's Workshop: Identifying Training Needs CASELET 9.1
Justifying the Cost of a Firm's Sales Training
•
CASELET 9.2
Good, Good Enough, or Not Good Enough?
References
PART FIVE
212
•
212 213
214
Process Management
217
Chapter 10 Supervising, Managing, and Leading Salespeople Individually and in Teams 218 Supervising Managing
220 221
Sources of Power 222 •
ETHICS IN SALES MANAGEMENT Bad Leader? 224
What Are the Traits of a
The Up-Close Perspective: Becoming the Boss 225 The Sales Representative's Perspective: What It Takes to Be a Good Sales Manager Leading
226 227
A New School of Managerial Thought?
227
What Leadership Competencies Do Sales Managers Need?
229
Coaching 229 Mentoring
230
The Ability to Organize and Work Effectively with Teams 231 D SELF-ASSESSMENT LIBRARY 231 Being a Team Member
232
The Future of Sales Management •
233
GLOBAL SALES MANAGEMENT
Summary
Questions and Problems Key Terms
Developing Global Leaders
233
234 235
235
Role Play: Outside Escapes
236
•
CASELET 10.1
Friend or Mentor? Deciding When to Take Action
•
CASELET 10.2
Teamwork?
References
237
238
Chapter 11 Setting Goals and Managing the Sales Force's Performance 240 Why Are Sales Goals Important to an Organization?
242
236
CONTENTS Using Goals to Guide and Manage the Performance of a Firm's Sales Force 243 •
GLOBAL SALES MANAGEMENT
Goals Are Goals, Right? Not Quite.
Different Types of Goals or Quotas
244
244
Choosing the Right Metrics to Track
248
Choosing the Right Time Period to Track
248
D SELF-ASSESSMENT LIBRARY 248 What About Almost Meeting a Goal?
249
Should Salespeople be Involved in Setting Their Own Goals? When is a Sale a Sale?
249
249
Should Everyone Achieve Their Sales Goals? Do Goals Ever Get Changed or Altered?
250
250
What Happens When Salespeople Do Not Achieve Their Sales Goals? The Process of Setting Good Goals •
ETHICS IN SALES MANAGEMENT Too Difficult? 252
Summary Key Terms
251
251 When Do Difficult Goals Become
253 254
Questions and Problems
254
Role Play: Oval Track Promotions
255
Sales Manager's Workshop: Setting Threshold, Actual, and Stretch Goals •
CASELET 11.1
All in a Day's Work
•
CASELET 11.2
Sandwiched In
References
Chapter 12
256
256
257
257
Motivating and Rewarding Salespeople What Motivates Salespeople?
260
262
D SELF-ASSESSMENT LIBRARY 263 Generational Motivational Issues Matures
264
266
Baby Boomers 266 Generation X'ers Millennial
266
268
The Dos and Don'ts of Motivating Your Sales Representatives Financial and Nonfinancial Rewards •
GLOBAL SALES MANAGEMENT Right?" 270
269 "We're All In It for the Money,
The Components of a Reward Program Compensation •
268
270
272
ETHICS IN SALES MANAGEMENT What Do You Do If Your Company's Compensation System Encourages Unethical Behavior? 276
Benefits
279
Work-Life Rewards
279
Recognition Programs Expense Accounts
280
282
Personal Development and Career Opportunities Summary Key Terms
283 284
282
XV
XVI
CONTENTS Questions and Problems Role Play: BiolDs •
CASELET 12.1 Adjusting Your Compensation Plan to Motivate Your Sales Representatives 287
•
CASELET 12.2 Which Is Better? A Market Share-Based Incentive System or a Revenue-Based Incentive System? 288
References
PART SIX
285
286
289
Measurement, Analysis, and Knowledge Management 291
Chapter 13 Turning Customer Information Into Sales Knowledge 292 Knowledge Generated by the Firm's Sales Force Sales Forecasting
Estimating Market Potential •
299
ETHICS IN SALES MANAGEMENT
Forecasting Methods
306
•
SELF-ASSESSMENT LIBRARY 306
•
GLOBAL SALES MANAGEMENT
Guidelines for Forecasting Key Terms
300
301
The Limitations of Forecasting
Summary
Forecasting or Fortune Telling?
307
308
309 310
Questions and Problems
310
Sales Manager's Workshop: Making Forecasts
Chapter 14
294
297
311
•
CASELET 13.1
Englander Container
•
CASELET 13.2
Freud Testing Services
312 313
Assessing the Performance of the Sales Force and the People Who Comprise It 314 Evaluation Helps the Sales Manager Know What Is Working and Why 316 Evaluating the Performance of the Sales Force as a Whole Sales Analysis
317
317
Cost Analysis
319
Profit Analysis
321
Ratio Measures for Evaluating the Sales Force 321 Relating the Performance of the Sales Force to the Firm's Salespeople Evaluating Individual Sales Representatives
Leveraging Technology to Manage Sales Rep Performance Input Measures
324
328
Outcome Measures Profitability Measures
329 330
Ratio Measures for Performance Appraisals The Four-Factor Model of Evaluation Qualitative Performance Measures •
323
323
331
333 333
GLOBAL SALES MANAGEMENT Overseas 335
Evaluating Salespeople Working
CONTENTS The Problem of Evaluation Bias 336 Informal Evaluations
336
Reducing Sales Management Errors in Performance Evaluations
337
D SELF-ASSESSMENT LIBRARY 337 What Happens When Salespeople Don't Achieve Their Sales Goals? Developing and Reallocating Salespeople's Skills and Efforts
338
338
Modifying the Performance Setting 338 Summary Key Terms
339 339
Questions and Problems
340
Role Play: Johnson Controls Considers Changing Its Assessment Criteria 340 Sales Manager's Workshop: Promedia Technology (PMT) Analyzing the Performance of Your Sales Representatives 341 •
CASELET 14.1 Goals? 341
"Happy Hannah": Did the Sales Reps Meet Their
•
CASELET 14.2
Ligon Industrial
References
Chapter 15
342
343
Internal and External Cultural Forces That Affect a Firm's Sales Performance 344 How the Corporate Culture of a Firm Affects Its Sales Force
346
The Firm's Marketplace Orientation
346
Low- versus High-Performance Cultures Achieving Internal Alignment Misalignment and Entropy •
348
349
350
ETHICS IN SALES MANAGEMENT
Sales Managers as Culture Creators
What Constitutes a Bribe?
351
How External Cultures Affect a Firm's Sales Force , 353 The Different Levels of Culture The Components of Culture Communication Style Religion
353 355
355
357
Educational Levels Aesthetics
Social Organizations Technology
357
357 358
358
Time 358 Values and Norms
359
Managing the Global Sales Force
360
Designing the Global Sales Force 360 Selecting Sales Personnel 361 D SELF-ASSESSMENT LIBRARY 361 Training Global Salespeople
362
Motivating Global Sales Personnel
362
Compensating Global Sales Personnel
363
Evaluating Global Sales Personnel 363 Changing Demographics and Diversity in the Sales Force The Benefits of Embracing Diversity
364
363
351
XVII
XVIII
CONTENTS Summary
365
Key Terms
366
Questions and Problems
366
Role Play: Expatriate Pay and Benefits at RPG, Inc. CASELET 15.1
Long Island Manufacturing
•
CASELET 15.2
China Enterprises N.A.
References
PART SEVEN
367
•
368
368
369
Cases 373
Case Study 1
The Plantation Planning, Setting Goals, and Team Selling 374
Case Study 2
Lexington Industries Conducting Business Ethically in the Pacific Rim 380
Case Study 3
The San Francisco Giants A CRM Case Analysis 382
Case Study 4
TIP Financial Services Corporation Managing a Field Sales Force 386
Case Study 5
Wellco Distributors Considering a Diversity Program 391
Case Study 6
Pacific Medical Supply Company Hiring, Motivating, and Retaining Good Salespeople 394
Case Study 7
Southeastern Sales Associations Evaluating and Coaching Salespeople to Improve Their Performance 399
Case Study 8
Afgar Corporation Managing Multi-channel Sales 401
Case Study 9
Freedom Telecom Setting New Sales Goals to Turn the Sales Force Around 406
Case Study 10
The Sarasota Journal Inevitable Change and the Restructuring of the Sales Force 412
Case Study 11
Concord and Associates Evaluating a Sales Territory 417
Case Study 12
Cannon Associates Achieving Internal Alignment among Your Old and New Sales Force 421
Name Index
424
Subject Index 427
