Marketing and Sales Management: A Comprehensive Guide
T 1: Marketing and Sales Management
Understanding and Satisfying the Customer
The primary premise of marketing is to “understand” consumers, the environment, and competitors to “attend” to their needs with the best products/services. Philip Kotler summarizes this idea: “The goal of selling is to meet a customer need; the goal of marketing is to identify and meet that need profitably.”
Marketing Process
Identify needs → I. target → win clients/leads → Build loyalty (cust, faithfull) → Customer development (customer share =/ market share)
Personal Sales
Personal presentation of a product or service to generate sales and develop customer relationships. Tools include sales presentations, trade shows, and employee incentive programs.
Traditional Marketing
Limited audience, Global marketing, Non-versatile (cannot be altered once published), Delayed communication
Digital Marketing
Reach out to maximum people, Targeted or client specific marketing, Versatile (can make changes in the advertising), Immediate communication
2. Sales Management Process
The Personal Sales Process
The personal sales process involves building customer relationships, identifying needs, adjusting the offer to those needs, and communicating the benefits to the customer.
Stages of the Sales Management Process
- Establish the relationship and build trust.
- Identify consumer needs.
- Select the product or offer to present
- Present the offer.
- Post-sale service.
3. The Seller in eCommerce
New Tools
Use of new tools to create value relationships in e-commerce, aiming to turn “buyers” into “customers.”
Infinite Customer Journey Loop
E-commerce has the same purpose as traditional commerce but with more sophisticated tools to manage the customer experience.
CRM Cycle
(process that business use to manage & improve interactions with customers). interact and deliver, Acquire and retain, Understand and differentiating, Develop and customized, Cross-sell (addition) and upsell (better versions)
Intrinsic Motivation
Drives behavior performed for the sake of activity itself. Comes from internal desire such as: Interest, Need for challenge, Personal satisfaction
Extrinsic Motivation
Drives behavior performed for external rewards or to avoid punishment. Comes from outside the person: Salary and other tangible, Intangible reward such as praises from the boss
T.3. Business Marketing and Sales Plan
Business Plan, Marketing Plan, Sales Plan
Defines clear actions and objectives for each area, coordinating efforts to achieve organizational goals.
2. Sales Plan Content
Establishes sales objectives and defines strategies to achieve them.
External and Internal Analysis
Includes consumer analysis, competitors, industry, PESTEL, results, organizational structure, costs, financial resources, technology, and innovation.
3. Sales Forecast
Types of Forecasts
- General: Market evolution and company share.
- Specific for each seller: Balanced distribution of sales among sellers.
Forecasting Methods
Mathematical (linear regression, time series, exponential smoothing) and based on market research (purchase intention, market tests) and expert opinions (Delphi Method).
4. Sales Shares
Distribution of the company’s sales among different units and sellers, providing a tool to evaluate and motivate the sales network.
T.2. Sales Force Structure
Organization of Activities
The structure organizes the company’s activities and affects a group of people, optimizing the achievement of objectives.
Functions
Includes hierarchical levels, order and information routes, horizontal coordination, and integration of actions.
Complexity in Large Companies
Large companies have complex structures, while new companies and startups tend to have simpler and more flexible structures to better adapt to changes.
2. Vertical Structures
The vertical structure is the most traditional form of division of labor, based on lines of authority and hierarchical levels.
Pros
- Clear hierarchy definition.
- Ease of control.
- Stable and easy-to-understand structure.
Cons
- Slow decision-making.
- Difficulty in quickly adapting to changes.
- Complicated interdepartmental coordination.
3. Horizontal / Other Structures
Add dynamism and flexibility, considering the organization as a complex entity. Requires multidisciplinary teams and an individual development plan for each member.
Advantages
- Agile decision-making.
- Quick adaptation to changes.
- Promotes delegation of authority and group objectives direction.
Disadvantages
- Difficulty in individual control.
- Requires creativity and self-regulation.
4. Other Structures
Network Structures
Low level of formalization, non-hierarchical personal relationships, high employee participation, goal-oriented. More suitable for small and medium enterprises; can be chaotic for larger companies.
Federal Structures
Typical of multinationals, high level of autonomy and responsibility in teams, requires quick and realistic information, challenging coordination.
Shamrock Organization
Maximum flexibility, high employee participation, goal-oriented, promotes innovation.
Circle Org Charts
The highest-ranking position is at the center, surrounded by concentric circles representing different hierarchical levels. Hierarchy becomes less important as it moves away from the center.
Mixed / Matrix Structures
Combine vertical and horizontal charts, integrating functions and projects.
5. Sales Force Structure Design & Coordination
- Territorial: Geographical division of the sales force.
- Product: Division based on product lines.
- Customer: Division based on customer types or industries.
- Functions: Integration of various functions, creating mixed or complex structures.
6. Sales Manager and Sales Force Roles
Sales Manager / Director
Organically depends on the Commercial Director, in small companies may be responsible for other areas. Needs organizational capacity, analytical skills, and a broad general culture.
Role of the Sales Force
Negotiation and strategy skills, adaptability, empathy, analytical and management capacity.
Characteristics of a good Sales Manager / Director
Vocation to perform the position, Organizational capacity, Know how to control objectively, General culture, Increasingly requires more analytical skills
Characteristics of a good seller
Negotiation and strategic skills, General culture, Adaptability, Empathy, Analytical and management capacity
T.4. Territories and Zones
Advantages of Territory Organization
Facilitates scheduling, improves sales force effectiveness, ensures better market coverage, facilitates control and supervision, eliminates duplications, and contributes to the company’s good image.
Sales Territory Design
Involves dividing the customer base so that sellers can properly attend to accounts, considering size and location, homogeneity, balance, and clarity.
2. Sales Itineraries: The Routes
Route Configuration
Optimizes the seller’s travel, minimizing time and space, maximizing the number of useful visits, and reducing seller fatigue.
3. Building Selling Routes
Zigzag
It consists of going to the farthest point on the route and snaking back. In this way, we will route clients back and not outward, which will allow us to better control time, dedicate more hours to important clients and reduce the rest if unforeseen events arise.
Daisy (Flower Petal)
It consists of structuring the clients in circular clusters, so that the last visits are also back to the point of origin and next, with which we do the end of the return route as in the zig-zag technique, obtaining the same benefits (control).
Bonus
If in spite of everything you cannot find time to visit all the clients, make quality visits and dedicate the necessary time to them; The most advisable thing is to organize an information session to which you invite clients and where you can tell them and dedicate the necessary time.
Key Aspects Designing Selling Routes
Circuit duration (number of days). Number of clients to visit. Classification of clients according to number of annual visits. Type of visit (first visit, follow-up visit, etc.). Average time per visit. Location of each client. Transportation time. Waiting time. Dead times and unforeseen
Qualitative Indicators
- Customer Service = Number of complaints / Number of visits
- Importance of the complaint = Number of complaints / Number of lost customers
- Quality of information = Information / Number of complaints
- Impact of complaint = Number of complaints / Average order amount
Quantitative Indicators
- Sales Effectiveness = Profits / Sales
- General Effectiveness = Number of orders / Number of visits
- Customer Effectiveness = New customers / Number of visits
- Depth = Average order amount / Number of visits
- Sales Figure = Average order amount / Number of orders
- Market Growth = New customers / Total customers
Satisfaction Indicators
- NPS – Net Promoter Score
- CES – Customer Effort Score
- CSAT – Customer Satisfaction Score
- CXI – Customer Experience Index
T.5. What is Sales Management?
Leading, motivating, and influencing people to achieve sales goals, including forecasting, budgeting, recruitment, selection, and performance evaluation.
Types
B2B and B2C
KPI Management
You need to get your entire team aligned around key metrics so they know what day-to-day expectations are—and what it takes to succeed over time. You’ll break goals down into key performance indicators.
2. What is a Sales Manager?
Leader, coach, mentor, communicator, facilitator, goal-setter, motivator, and number analyst.
Styles
Consideration (social needs) and Structure (work) low high…
3. Coaching for Peak Performance
Document performance issues, gain agreement on the need for improvement, explore solutions, and obtain a commitment to action.
4. Training
Effective Training Program
Theoretical-practical preparation, requires an attitude and behavior change in the student, complemented with practice.
Needs
General, specific, and sales management.
5. Salesperson Recruitment and Selection
Includes preselection, interviews, tests, decision, and onboarding.
6. Sales Compensation Plan
Includes base salary, commission, and other monetary incentives to motivate sellers to meet or exceed their quota
Types: Summary of Sales Compensation
Straight Salary
Salespeople receive no incentives under this plan, so they don’t have to worry about their paychecks.
Salary Plus Bonus
Salespeople receive a salary, but also a bonus if target quotas are met.
Base Salary Plus Commission
Salespeople receive a fixed annual salary to have a predictable cash flow, but they also receive a commission on sales.
Straight Commission
Under this plan, there is no base salary, so salespeople are compensated only for sales. Pay is not tied to hours worked, so some salespeople may have to work longer hours to generate enough income.
Variable Commission
This plan is similar to paying a straight commission, but the commission rate can change depending on whether sales targets are met or exceeded.
Residual Commissions
This plan is useful for businesses that have stable customer accounts. Salespeople may receive an initial commission for a first sale and perhaps a smaller commission as long as the customer continues to order.
7. Assessing Sales Force Productivity
Quantitative criteria (sales volume, new accounts) and qualitative criteria (attitude, product knowledge, communication skills).