Effect of Sales Force Management

Sales force management is the management of the company owned sales staff. It is one of the
most important functions in a company, as it drives the sales function. These are tumultuous
times for sales organizations. Cost per sale is up. Competition is more intense. And top
performers are jumping ship. To remedy the problem, many sales organizations look to
technology, new incentive plans, and additional sales training for their Sales Reps and Sales
Leaders.
The types of sales needed to be managed by an effective sales force –
• PRODUCT-CENTRIC SALES involve selling a well-defined product or service to
customers who have predetermined needs and are primarily seeking a low price and
buying convenience.
• SOLUTION-CENTRIC SALES involve providing varied and customizable products
and services to customers who want insight, advice, and help solving their problems.
• BUSINESS-CENTRIC SALES involve entering into a high-level
• partnership with a customer who wants to leverage the core capabilities of your
organization to realize a long-term business strategy (Consentino, William, &
Thomas)

In daily life, a layman deals with different transaction in terms of selling and purchasing of
goods and services. In these transactions the second one persuades the first person. Therefore,
selling may be defined as persuading people to satisfy the want of first one. The person, who
does this act, is called as the salesman, the result of this action as sales, while these activities
of the person, are supervised and controlled by sales-management. In the present scenario
sales executives are professionals. They plan, build and maintain effective organisations and
design and utilize efficient control procedures. The professionals approach requires thorough
analysis, market-efficient qualitative and quantitative personal-selling strategy. It calls for
skilful application of organisational principles to the conduct of sales operations. In addition,
the professional approach demands the ability to install, operate, and use control procedures
appropriate to the firm’s situation and its objectives. Executives capable of applying the
professional approach to sales management are in high demand today. The quality of selling
is referred to as salesmanship. In other words, ‘management’ is synonymous with leadership.
Managers do the same thing in industry, as ministers do in states and at the centre, i.e., they
have to plan, forecast, direct and control their personnel. Here success lies in running
together, hand in hand. Managers are the captains of the army of their followers. (Kundu)
Importance of Sales Force Management –
1. Sales maximization. It is not an easy task to get sales maximization. Sales
Management helps the business in fulfill the objective of sales management. In the
process of delegation, the top management fixes the sales volume more specifically on
the basis of market, territory, customer or on any other basis which it want to achieve
in a specific period. The sales executives, during the planning phase, precedes
potential, capabilities of sales force and the middlemen and the like,. Once these goals
 are finalized, it is up to sales executives to guide and lead the sales personnel and
middlemen to implement the selling plans and achieve the goals so finalized.
2. Profit maximization. From the company point of view, profit maximization is the
general objective of sales Management. Top management is accountable for maximum
profit. But regarding profit maximization, it delegates powers and function to
marketing management, which then delegates it, to sales management with sufficient
authority to achieve this objective.
3. Growth and Development. Sales management is influential in the charting course of
future operations. It provides higher management with informed estimates. It provides
facts for making Marketing Decisions and for setting sales and profit goals. It is on
sales management’s appraisal of market opportunities that targets are set for sales
volume, gross margin, and net profit in units of products and in rupees, with
benchmarks of growth projected for sales and profits at specific future dates.
achievement of these targets are reached depending upon the performance of sales and
other marketing personnel.
(Sales Management Importance, Sales Role in the Success of Business, n.d.)

Blake and Moulton Grid

Concern for Sales

Typical styles of management/leadership according the grid are:

 • 1.1 - “Impoverished” - minimum management/leadership and minimum
requirements for the task
• 1.9 - “Country club” - high concern on people and interpersonal relationships,
minimum focus on the task
• 5.5 - “Middle-of-the-road” - medium level of focus on relationships and focus on the
task satisfactorily
• 9.1 - “Produce or Perish” - the minimum respect for people, high requirements for
the task
• 9.9 - “Team” - the highest concern on people and relationships and also highest
concern on the task

Transaction Selling

Transaction Selling is selling with a one time sales conversion focus. The primary trait of
transactional selling is its one-time purpose. The goal of a salesperson applying this technique
is simply to convince a buyer of the merits of a given product, service or combination of the
two. While one-time sales can lead to further purchases, the main intent is getting the deal in
front of you done. The same can be seen in industries like insurance, as once the sale is made,
the salesperson does not contact the customer till it is time for renewal. This is on the other of
end of the spectrum when compared to providing solutions or relationship selling.