Mastering Sales Management: Strategies and Techniques
The Sales Formula
Sell = F(Value for customer / Price). The salesperson must increase the perceived value relative to the price.
5 Ethical Levels in Sales
To navigate ethical dilemmas, choose the “moment of truth” approach, balancing company, customer, and ethical responsibilities. Levels include: Cynicism, Relativism, Legalism, Due obedience, and the Moment of truth.
4 Types of Sales Objectives
The most important objective is Revenue. Revenue forecast = Historical sales ± market impact ± competitors ± impact of plans. Other types: Sales Team Performance, Customer Finance, and Customer Logistics.
Classic Business Strategies
For a Sales Director, the most useful strategies involve growth, competitive advantage, and customer development, utilizing frameworks like the Porter 5 Forces, Ansoff Matrix, BCG Matrix, and McKinsey Matrix.
Sales Strategy Allocation
Strategies include: Customer segmentation, Sales team management, and 4P’s sales strategies. These are connected to the Ansoff Matrix based on products and markets.
5 Sales Team Management Policies
- Selection
- Training
- Communication
- Remuneration
- Motivation
Commercial Positions
Common roles include: Sales Director, National/Regional/Area Sales Manager, Salesperson, KAM, NAM, RAM, Export Manager/Salesperson, Trade Marketing Manager, and Sales Controller.
Sales Engineering
Sales Engineering organizes the sales force through four steps: Identify market coverage, Determine team size, Organize the team, and Cost audit.
Calculating Staff Requirements
Formula: (POS × Average annual visit frequency) / (Average daily visits × Working days). For KAMs: (PON × Average annual visit frequency) / (Average daily visits × Working days).
Sales Team Organization
Teams can be organized by: Area, Product, Customer-channel, Function, or as Internal/External teams.
Candidate Evaluation
Sales Directors must assess: Verbal/non-verbal language, interview preparation, knowledge/skills, attitudes, values, and salary expectations.
Learning Methods
Effective learning involves: Repetition, emotional impact, long-term memory reinforcement, and professional trainers.
4 Training Tools
- Incorporation plan
- Mentoring
- Coaching
- Seminars
Internal Communication Tools
- SOP (Standard Operating Procedures)
- ERP
- Marketing Plan
BTOC External Communication Tools
- CRM
- ECR
BTOB External Communication Tools
- EDI
- E-Procurement
Establishing Bonuses
Process: Define bonus amount, criteria/weight, targets, and follow-up/payment.
Establishing Commissions
Process: Define KPI, percentage, customer-area scope, and inclusions/exclusions.
Maslow’s Theory
Human needs evolve from physiological/safety to esteem/self-actualization. Sales Directors motivate by progressively satisfying these needs.
Emotional Intelligence
According to Goleman: Reptilian brain (adrenaline), Neocortex (logic), and Limbic brain (emotions). Managing these improves leadership.
Situational Leadership
Leadership style adapts to employee maturity: Orders, Persuasion, Cooperation, or Delegation.
McClelland’s Theory
Motivation stems from: Need for power, achievement, or association.
XY McGregor Theory
Theory X: People dislike work and need punishment. Theory Y: People find satisfaction in work and seek achievement.
Holland’s Theory
Personality determines individual motivation and professional environment fit.
Multiple Intelligences
Interpersonal intelligence is key for selling; intrapersonal is key for self-motivation. Process: Values → Thoughts → Feelings → Self-concept → Expectations → Attitude → Behaviour.
Route Types
Common patterns: Spiral, Margarita, Four-leaf clover, and Windmill.
Creating a Route
Steps: Analyze territory, identify customers, define priorities, optimize time/transport, and establish visit frequency.
Route Factors
Consider: Salesperson capacity, commercial strategies, customer concentration/type, benchmarking, and cost-benefit analysis.
Henkel Sales Techniques
- Contact
- Questions
- Argumentation
- Reply to objections
- Close the sale
Handling Price Objections
Use the Division method or the Difference method.
Closing Techniques
Methods: Supposition technique, setting a deadline, or direct action.
Professional Buying Techniques
Buyers may: Make sellers nervous, criticize early, praise competitors, use time pressure, demand better conditions, threaten to stop buying, or use external authority.
Principled Negotiation
Steps: Prepare, separate people from the problem, focus on interests, generate options, use objective criteria, consider a mediator, and define your BATNA.