| What any individual Sales Manager actively does is | | | | the nature and behaviour of costs.- OrganisingThe |
| conditioned by the size of their company, the | | | | way in which he develops his sales staff - whether |
| products it sells and the way they are sold, the | | | | on a general or territorial basis, or. specialising in types |
| organisation of functions within it, and perhaps their | | | | of product or by class of customer or end user - |
| own special ability. They may carry most or all of the | | | | should derive from a study of the market, taking into |
| responsibilities which would be those of a Marketing | | | | account also the qualifications and the experience of |
| Manager, if this position does not exist within their | | | | the sales staff.- TrainingAs products, markets and |
| company.Essentially, however, the task of the Sales | | | | objectives tend to be continually developing |
| Manager is to produce revenue for their company | | | | and changing, training also should be a continuous |
| through the operations of the sales staff for whom | | | | process. With small |
| they are responsible. The size of this revenue, and | | | | sales forces, formal training presents difficulties, but |
| the profit (however defined) which it should show, | | | | the need to always |
| are usually predetermined in order to achieve the | | | | seek a higher standard of performance remains.- |
| aims of company policy. The objectives which they | | | | ControlThis involves setting targets and standards for |
| set for the various activities which are involved in | | | | measurement of performance, and taking appropriate |
| carrying out this task should therefore be derived | | | | action when they are not met.- MotivationMotivation |
| from, and be compatible with, company objectives, | | | | implies two effects in the sales staff: the right |
| such as return on capital employed, cash flow, | | | | attitude to their job and willingness to play their part |
| market position, growth.CHARACTERISTICS OF THE | | | | to the best of their ability in achieving aims set by |
| SALES MANAGER'S JOB- Many of the factors which | | | | their manager. It results partly from training, partly |
| affect success are not within their control (such as | | | | from incentives (financial and other), and perhaps |
| competitors and government legislation)- They are | | | | most of all from the leadership given by their |
| nevertheless required to forecast future sales and to | | | | manager. Regular appraisal of performance and |
| plan their operation accordingly, using their judgement | | | | attitudes by discussion with the sales force, and |
| and experience.- They must depend on other | | | | observation of their work, are important for this |
| departments for the design, production, quality and | | | | purpose.RECRUITMENT OF SALES STAFFSelecting a |
| delivery of products for which they obtain orders, | | | | person who will become a successful member of the |
| just asthose departments must depend on them to | | | | sales force for any particular company is very |
| get these orders.- The sales staff that they rely on | | | | difficult, whether they are appointed from within the |
| to produce the results they have planned for, are for | | | | company or are recruited from outside. It is often |
| most of the time working alone, not under their | | | | made more difficult than it need be by the lack of an |
| immediate control.- They are engaged in a constant | | | | adequate specification of the job the sales person is |
| struggle to obtain increased salesagainst competitors | | | | to do and, derived from this, a specification of the |
| with the same aim.Although the basic functions and | | | | kind of person who might be likely to succeed. Such |
| skills of management, discussed later, apply to their | | | | specifications introduce some objectivity into the |
| job, it is clear that such qualities as creativeness, | | | | selection process and provide some measures of |
| flexibility, tenacity, and ability to deal effectively with | | | | comparability between candidates.The importance of |
| people, will be particularly important. At the same | | | | the sales person to their company, and the |
| time the ability to analyse market situations and form | | | | considerable investment made in them, justify a |
| sound judgements on them, is equally necessary but | | | | systematic approach to the ways in which, as a |
| may not sit easily with the kind of qualities | | | | candidate, they are assessed and decisions are made |
| mentioned.THE SELLING ROLE | | | | about them. The validity of assumptions made about |
| Since, like other managers, the Sales Manager | | | | them at the time of appointment should be checked |
| depends on those who work for them to produce | | | | against subsequent performance, and the reasons for |
| the results by which they are judged, consideration | | | | mistakes investigated.The subjective element in |
| of their job can usefully continue by examining the | | | | selection will never be eliminated, and in at least one |
| nature and characteristics of industrial selling and, | | | | respect it is a valid criterion. The person chosen must |
| hence, of the salesperson's job.Personal selling is only | | | | "fit in" to the team comprising the Sales Manager and |
| one of several possible ways of communicating with | | | | their sales force. If they do not do so, no matter |
| customers and potential customers but, particularly | | | | how suitable their qualifications and experience may |
| where industrial goods are concerned, is undoubtedly | | | | be, friction is likely to ensue.THE NATURE OF |
| the most effective in terms of achieving the | | | | MANAGEMENTA Sales Manager may or may not be |
| objective - influencing the decision to buy. It is also, | | | | an outstanding sales person. The important thing is |
| even though selling costs may be a small percentage | | | | that he should be a good manager. This is their |
| of revenue, expensive. Sales staff should therefore | | | | individual and unique contribution to their |
| be treated as a scarce resource, to be used as | | | | company.The essentials of management are: |
| effectively as possible.Selling itself is a process of | | | | Measurement or assessment |
| bringing persuasion to bear, to;- Awaken awareness | | | | Planning, which includes organising |
| of a need or problem- Establish that the need can be | | | | Direction and controlPlans, and the direction and |
| satisfied by a particular type of product- Convince | | | | control of activities to put the plans into effect, |
| the prospective user that the salesperson's own | | | | depend on the collection and analysis of information, |
| product can offer a superior satisfaction.The actual | | | | from which decisions are made.The initial plans (say |
| selling job for a particular product or company may | | | | for 12 months, on which a budget will be based) |
| embrace all three of these stages, the last two, or | | | | results from analysis of the market and |
| the last only, depending on the situation | | | | environmental factors (such as economic conditions) |
| requirements.- An innovatory product, hitherto | | | | and from the assessment of the resources available |
| unknown- A product for which there are alternatives- | | | | to the manager. Control requires an input of |
| An established market in which the user can choose | | | | information about performance which has to be |
| from a number of makes.For economy of effort the | | | | measured against the standards set in the plans. |
| salesperson's task (and perhaps the kind of person | | | | Where there are discrepancies the manager must |
| required) should be defined accordingly.OTHER | | | | decide what to do about them.The two basic |
| TASKS OF THE SALES STAFF | | | | requirements for good management (apart from |
| Although selling is the basic justification of the | | | | personal qualities which make the manager an |
| salesperson's existence and The Sales Manager's | | | | acceptable leader) are therefore:Adequate |
| purpose in employing them, all sales staff have to | | | | information |
| spend part of their time doing other things (e.g. | | | | Decisions which take account of the relevant |
| travelling and preparing reports). Sales staff are, | | | | informationAdequate information about markets is |
| however, often also required to:- Provide technical | | | | hard to get, and the cost of obtaining it may |
| information other than that strictly needed to make a | | | | outweigh the advantages of having it. The Sales |
| sale- Give some kind of after-sales service- Conduct | | | | Manager is therefore often in the position of having |
| market research (going beyond the normal, essential | | | | to make decisions on the basis of incomplete |
| supply of market intelligence about customers, | | | | information or assumptions. They must then rely to |
| competitors, etc)- Check credit status of potential | | | | some extent on past experience and their own |
| customersIt may or may not be that the salesperson | | | | judgement of the probability that this or that will |
| is the best person to do such things as these. As, | | | | happen. The important thing in these circumstances it |
| however, he is a scarce resource, expensive, and | | | | to record (preferably in writing) the assumptions that |
| employed to obtain orders, the cost-effectiveness of | | | | have been made so that, if subsequently information |
| using them for such purposes compared with other | | | | becomes available which falsifies these assumptions, |
| means should be examined - remembering also that | | | | some assessment can be made of consequences for |
| there may be some loss of sales to take into | | | | plans based on them.The moral right of the author, |
| account (the "opportunity cost")THE SALES | | | | Jonathan Farrington, has been asserted. |
| MANAGER'S RESPONSIBILITY FOR SALES STAFF | | | | All rights reserved.This publication or any part |
| Some characteristics common to most forms of | | | | thereof may not be reproduced or transmitted in any |
| selling are:- Smaller sales forces in industrial selling than | | | | form or by any means electronic or mechanical |
| consumer goods selling, usually dealing with a very | | | | including photocopying, recording, storage in an |
| much smaller number of clients- Responsibility and | | | | information retrieval system or otherwise, unless this |
| power to make decisions vested in the | | | | notification of copyright is retained.Jonathan |
| individual salesperson- The need often to deal with a | | | | Farrington is a business coach, mentor, author and |
| number of people in the customer company in order | | | | consultant, who has helped hundreds of companies |
| to achieve buying decisions.These characteristics | | | | and thousands of individuals around the world achieve |
| must influence the nature of the Sales Manager's | | | | their full potential and consequently, optimum |
| responsibility for their sales staff and the forms it | | | | performance levels.Prior to setting up his own |
| takes.One effect may well be that a good deal of | | | | consultancy, Jonathan earned his spurs succeeding in |
| the market analysis and planning which is part of the | | | | some of the most demanding and competitive |
| Sales Manager's responsibility, is delegated to sales | | | | market sectors. Challenging assignments took him |
| staff who, to this extent, are the managers of their | | | | from the Middle East and Africa to Europe and the |
| own territory. If this is so, the need for clear | | | | USA, providing him with the opportunity to work with |
| objectives and adequate overall control is stronger | | | | a number of the largest and most successful |
| than if sales staff were more closely directed. This | | | | international corporations including: - IBM, Wang, Legal |
| also emphasises the importance of good | | | | and General, Andersen Consulting, Litton Industries |
| communication and information, flowing in both | | | | and The Bank of Tokyo.In 1995, Jonathan formed jfa |
| directions.The Sales Manager's general responsibilities | | | | with the primary objective to deliver unique |
| for his sales staff may be summarised:- PlanningHe is | | | | leadership and sales team development programmes |
| given resources, human and financial, and has to plan | | | | to both the corporate and SME sectors. Since then, |
| to use | | | | he has authored in excess of three hundred skills |
| those in the most effective combination to achieve | | | | development programmes, designed a range of |
| predetermined | | | | unique and innovative process tools and written |
| results. They can do this only by knowing his staff | | | | extensively on organisational and sales team |
| and understanding | | | | development. |