Learning Outcome 1 The learner will: Understand the role of the sales manager and the qualities and skills required.

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1 Unit Title: Sales Management Unit Reference Number: J/601/7525 Guided Learning Hours: 160 Level: Level 5 Number of Credits: 18 Learning Outcome 1 The learner will: Understand the role of the sales manager and the qualities and skills required. 1.1 Explain the role and responsibilities of the sales manager Understand the role of selling in today s highly competitive, dynamic and global market. Appreciate why selling generally has a negative image. Understand the difference between sales and marketing strategies and know where selling fits into the marketing mix. Explain that selling is a dynamic activity and is undergoing substantial change, largely driven by technology, which will continue to shape sales activities further in the coming decade Explain that the sales manager needs to master a wide range of business and personal skills Show that the sale manager s primary role/responsibility is to achieve the company goals and to develop staff Other roles and responsibilities include: Network development and sales strategy; Manage turnover, growth and market share; Analyse current position and competitors; Set/achieve objectives and sales targets; Recruit, train, motivate, direct and, when necessary, discipline sales staff; Plan/manage learning needs (CPD); Plan territories; Manage resources; Plan promotions, sales campaigns, sales; demonstrations, exhibitions and point of sale; Manage service levels, quality, customer care and complaints, and Manage systems, processes and procedures (e.g. health and safety, staff appraisal system etc.). 1.2 Examine the qualities and skills required by a sales manager Show that the business skills required by sales managers include: Management know how; Teambuilding expertise; Sales knowledge; Problem solving; Motivational techniques;

2 Product knowledge; Account management; Business acumen, and Supervisory skills Show that the personal skills required by sales managers include: Time management; Communication skills; Sales skills and techniques; Political skills; Self-management skills, and Attention to detail Show that amongst the qualities sales managers require are: integrity; consistency; tact; drive and enthusiasm. Sales managers will often be extroverts. 1.3 Explain the various management and leadership styles and associated models and frameworks and how these may impact on other functions Explain that poor sales management can impact on a sales organisation (e.g. low morale, high staff turnover, lack of direction, poor control, resistance to new ideas etc.) Show an understanding of the six leadership styles and key characteristics as defined by Goldman (2000): Coercive ( do what I tell you ) Authoritarian ( come with me ) Affiliative ( people come first ) Democratic ( what do you think? ) Pace-setting ( do as I do now ) Coaching ( try this ) Show an understanding of empowerment through leadership and be aware of the key steps in achieving this (e.g. share organisational information; learn to use vision and values to support a new culture of empowerment, teams to replace hierarchy, etc.) Explain that leadership styles depend upon the context with no one style of leadership appearing universally better. Research does, however, suggest that a considerate, participative or democratic style of leadership is often more effective Appreciate the importance of working closely with other functions to ensure close understanding and availability of resources. 1.4 Explain the importance of sales meetings and how they should be delivered and planned Explain that another very important role of the sales manager is to facilitate and control meetings with the sales team, with customers and with other internal and external parties Show that some of the key issues that should be considered at sales meetings include: setting objectives and plans; creating impact and influence on the sales team;

3 managing and controlling digressions; giving information and getting feedback; producing sales campaigns and action plans, and reviewing performance, etc. Learning Outcome 2 The learner will: Understand how to define and set objectives and measure performance. 2.1 Explain how to define and set objectives to generate sales activity Explain how objectives cascade down through the organisation. Be able to explain corporate objectives, business objectives, functional objectives, tactical objectives and sales objectives Show that sales objectives may relate to issues such as: sales; revenue; profit contribution; market share; customer satisfaction; customer service; expenses, etc Be able to develop sales objectives for a specific given organisation or one of choice Explain how sales strategy follows from the sales objectives. 2.2 Explain and discuss key performance indicators Explain the key performance measures that are used by sales managers. Explain that most will relate to sales, profit and people performance issues Explain that most organisations use a combination of input (behavioural) and output measures Identify and discuss the key performance measures used by sales managers, including: sales revenue; profits generated; sales per active account; number of orders; number of calls made; number of quotations issued; profit per call ratio, and expense ratios Explain that qualitative measures of performance may also be used. Examples may include: quality of sales presentations, ability to close a sale, use of visual aids, etc. 2.3 Describe how to measure and control performance Explain that sales organisations usually set performance standards (e.g. company, products, sales, people, accounts etc.).

4 2.3.2 Explain that the control process is usually based upon the collection of information on performance so that actual results can be compared against the set standards Explain that such measures will be used to evaluate sales management as well as individual sales people. 2.4 Describe how workload should be planned in order to achieve the agreed objectives Explain the advantages and disadvantages of the various sales forces structures (e.g. regional; product; industry; account size etc.) Be able to calculate the number of sales people required in different selling positions and explain the various methods of selling to customers (including electronic methods) Explain the factors that should be considered when developing sales territories. Issues that will need to be considered will include: product type, product value; sales potential; type of contact required, distance between calls, call frequency required etc. 2.5 Discuss the importance of delegation Explain that delegation is one of the most important sales management skills. Good delegation saves the sales manager time, develops sales people, may groom a successor and motivates subordinate staff. Poor delegation will cause frustration and is likely to demotivate sales staff Show that if there are clear and transparent objectives against which the sales team can be measured. It is often possible to delegate the specific activities and this can empower the sales team and provide important motivation and satisfaction. Learning Outcome 3 The learner will: Understand the importance of training and coaching for both the team and individuals. 3.1 Explain how to identify any potential skill gaps within a team or in individuals and be able to propose corrective action Explain that only those companies that meet today s challenges will succeed and therefore the benefits to sales staff of training and coaching are immense. Sales organisations must keep up to date, especially with new technology Explain that the key benefits from training may include: Enhanced skills; Improved motivation; Improved self confidence; Reduced costs;

5 Fewer complaints; Lower staff turnover; Reduced management support; Higher job satisfaction, and Higher sales and profits Show that sales organisations need to be prepared to invest in training even though the results may not be immediate Show that training needs/skill gaps may be identified by: Weak performance/achievement; Sale manager visits/customer feedback; Staff appraisal; Peer review; New products launches; New processes/new technology, and Personal development plans. 3.2 Examine how to decide on training and coaching priorities Explain that training/coaching priorities will be decided on corporate/functional/personnel and customer needs Training needs are likely to cover many of the following areas: The company (objectives, policies, organisation and new sales staff induction); Products; Competitors and their products; Selling procedures and techniques; Work organisation and report preparation, and Relationship management. 3.3 Discuss the various training and coaching options available for individuals and the team Explain that there are a number of options to consider when planning training/coaching activities. These include: Lectures/presentations/training sessions; Films and videos; Role playing; Case studies; Field training; E-learning, and Mentoring. 3.4 Explain how to give feedback without demotivating staff and the importance of debriefing and follow-up Explain the importance of evaluating the effectiveness of training courses Be able to discuss Kirkpatrick s four-stage training evaluation model which covers: Participant s reaction to the training course; Acquisition and retention of knowledge and attitude change; Changes in work behaviour, and Organisational outcomes (e.g. increased sales

6 outcomes). Learning Outcome 4 The learner will: Understand motivation and team building. 4.1 Explain and discuss the principles of motivation Identify and be able to briefly discuss the key motivational theories that relate to selling and sales management. These include: Maslow s hierarchy of needs; Herzberg; Vroom s expectancy theory; Adams inequity theory; Likert s sales management theory, and The Churchill, Ford and Walker model of sales force motivation. 4.2 Explain the three key steps to motivation Explain that motivation lies in the relationship between needs, drives and goals. Show that needs set drives in motion to accomplish goals Explain that maintaining a well-motivated sales force is a challenging task. The confidence of sales people is constantly being worn down by rejection and they are often isolated and may be neglected. An important role of the sales manager is to motivate the sales team Explain that improved motivation is important to sales success as high levels of motivation lead to: Increased creativity; Smarter working; Working harder; Increased use of win-win negotiation tactics; Higher self-esteem; A more relaxed attitude, and Better relationships. 4.3 Discuss and explain what makes a team and how it can be motivated Explain how to identify the development needs of teams and individuals. Be aware of the Myers Briggs Type questionnaire Show how to develop teams and individuals. Understand the importance of a clear vision, of identifying complementary strengths and weaknesses and having clear team objectives Be aware of Adair s Task/Team/Individual model Understand the important role played by regular and well

7 managed sales team meetings. 4.4 Explain the dynamics involved in building a successful team Explain that good sales team management is about motivating, supporting and encouraging the team. The reward for effective sales team development is strong sales figures and healthy business growth Show an understanding of the key motivators. These include: Job satisfaction; Performance against peers; Achieving goals/targets; Support; Money; Fear of dismissal; Merit based promotion; Participation in setting targets, and Customer satisfaction Appreciate that sales force selection is a key to ultimate selling success. Be able to explain the reward strategy options. These include: Basic salary; Commission; Bonuses; Travel and expenses, and Fringe benefits Be able to suggest a reward strategy for a specific given scenario or organisation of choice Show that a good sales manager understands the individuals in the team: their work styles, their motivators, their strengths and their limitations. They will manage each individual in the way that ensures the best response Understand and be able to explain the sales force evaluation process. Show how this will involve collecting information, undertaking qualitative and quantitative evaluation and undertaking the appraisal process. Be aware of what action can be taken when staff under perform. Learning Outcome 5 The learner will: Understand sales initiatives, campaigns and incentive schemes. 5.1 Discuss the relevance and purpose of sales initiatives, campaigns and incentive schemes Explain that the use of sales initiatives, campaigns and incentive schemes have increased substantially in recent years Show that the objectives of such schemes are designed

8 to: Introduce new products or services; Gain new or repeat business; Create customer loyalty; Encourage customers to visit particular sales outlets; Provide an incentive to build up stock levels, and Widen distribution channels Explain the key types of promotions in common use. These include: Price reductions; Vouchers or coupons; Gifts; Competitions; Lotteries, and Cash bonuses Show that the techniques cover: Consumer promotions; Trade promotions, and Sales force promotions Candidates should be aware that many promotions are now delivered electronically: via the internet, interactive TV, mobile phones and other electronic media. Candidates should be able to provide contemporary examples in the examination to demonstrate their knowledge of how technology impacts on the sales function Understand the role played by sales managers in developing and implementing telephone and direct marketing campaigns, database marketing activities and exhibitions. 5.2 Explain how sales initiatives, campaigns and incentive schemes are developed, implemented and evaluated Explain that there is scope for much individuality and creativity when designing promotions (examples should be provided). However, they can be costly and need substantial pre-planning and administrative support Explain how legal controls and ethical issues affect sales campaigns Explain how to measure the success, or otherwise, of sales initiatives, campaigns and incentive schemes Show that sales promotion objectives fall into three general categories: communication, incentive and invitation. Specific promotional activities will generally be measured against the set objectives. 5.3 Develop specific sales initiatives, campaigns and incentive schemes for specific organisations, from given scenarios Candidates should be able to develop a specific sales initiative, campaign or an incentive scheme for a company of choice or from a given scenario, and be able to explain how it would be measured and controlled.

9 Learning Outcome 6 The learner will: Understand the key techniques of negotiation. 6.1 Discuss and explain the various stages of negotiation Explain and discuss the staged process of negotiation. This will generally take the following form: Preparation; Discussion; Proposing; Bargaining, and Closing Show that a crucial part of a sales negotiation is preparation. This requires: Product knowledge and customer benefits; Knowledge of competitors; Sales presentation planning; Setting sales and negotiation objectives; Understanding buyer power; Assessing the power balance; Concession analysis, and Proposal analysis. 6.2 Identify and explain the different styles of negotiations Explain the behaviour skills that are associated with negotiation success. These include: Asking lots of questions; Using labelling behaviour (e.g. May I summarise?); Testing understanding and summarise; Giving feelings; Avoiding the use of irritators; Not diluting your argument, and Avoiding personalising the discussion Explain that buyers also have techniques which can be used to weaken arguments. These include: The shotgun approach ( Unless you agree immediately we will look elsewhere ); Sell cheap ( Get more business in the future ); Noah s Ark ( You will have to do much better on price ). 6.3 Explain how to establish the bargaining position of all parties Explain how the sale will depend upon the balance of power and the negotiating skills of the respective parties Explain how the balance of power will be determined by four factors: The options available to each party;

10 The quality/quantity of information held by each party; Need recognition and satisfaction, and The pressures on the parties Recognise the need for the negotiator to assess the relative strength of their power base Explain why most negotiators usually start with a high opening stance Explain why it is important to trade concession for concession. 6.4 Explain how to effectively close and confirm the negotiation Explain the various techniques used to close a sale. These will include: Simply ask for the order; Summarise and then ask for the order; The concession close; The alternative close; The objection close, and Action agreement Explain the importance of the follow up to ensure that the customer is satisfied with the purchase and does not suffer from cognitive dissonance. Explain that effective follow up will show that the salesperson really cares about the customer rather than only being interested in the sale. Assessment: Assessment method: written examination (unless otherwise stated). Written examinations are of three hours duration. All learning outcomes will be assessed. Recommended Reading: Please refer to the Tuition Resources section of the Members Area of the ABE website ( for the recommended reading for this subject.

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