A Guide to Sales Management

THE BUSINESS A Guide to Sales Management PARRAVICINI Selling and Sales Force EXPERT PRESS A Practitioner’s View of Trade Sales Management Collection DIGITAL LIBRARIES Organizations Buddy LaForge and Thomas Ingram, Editors EBOOKS FOR BUSINESS STUDENTS Massimo Parravicini Curriculum-oriented, born- In many FMCG companies, the challenges for the sales function digital books for advanced are to develop effective sales strategies and to deliver excellent business students, written sales operations in order to support the achievement of business A Guide by academic thought targets. The purpose of this book is to provide a practical guide to leaders who translate real- sales management through the analysis of its key components: world business experience route to market, sales strategy, key performance indicators, to Sales into course readings and organizational models, sales force management, customer busi- reference materials for ness planning, order to cash, and sales and operations planning. students expecting to tackle For each of these topics, the content of this book is a balance of management and leadership Management theory, practical tips, and useful tools, keeping in mind not only challenges during their the “what,” but also the “how” of the implementation. SALES MANAGEMENT TO A GUIDE professional careers. The reader will learn how to map sales channels, assess a A Practitioner’s POLICIES BUILT customer base, design a sales strategy, build a sales scorecard, BY LIBRARIANS and organize a sales team’s frontline and back offi ce. The book • Unlimited simultaneous also covers how to structure trade category plans, customer busi- View of Trade Sales usage ness plans, and customer negotiation plans and how to optimize • Unrestricted downloading the sales team’s contribution to the company’s key fundamental and printing processes. It concludes with an overview of the future challenges Organizations • Perpetual access for a of sales management. one-time fee • No platform or Massimo Parravicini holds an MA degree from Università maintenance fees Cattolica del Sacro Cuore in Milan. He is a business consultant • Free MARC records specialized in sales and trade marketing of FMCG. He consolidated • No license to execute over 20 years of line management experience working in Italy, in The Digital Libraries are a the UK, and in the Netherlands, both in operating units and in comprehensive, cost-eff ective corporate headquarters. His responsibilities included a variety of way to deliver practical roles in account management, fi eld sales, category management, treatments of important fi eld marketing, sales operations, and customer service. As a business issues to every consultant and trainer, he had the privilege to work with both Massimo Parravicini student and faculty member. manufacturers and retailers and to further develop his expertise in the food, beverage, homecare, and health and beauty industries. For further information, a free trial, or to order, contact: Selling and Sales Force Management Collection Buddy LaForge and Thomas Ingram, Editors A Guide to Sales Management A Guide to Sales Management A Practitioner's View of Trade Sales Organizations Massimo Parravicini, MA A Guide to Sales Management: A Practitioner's View of Trade Sales Organizations Copyright © Business Expert Press, LLC, 2015 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means— electronic, mechanical, photocopy, recording, or any other except for brief quotations, not to exceed 250 words, without the prior permission of the publisher. First published in 2015 by Business Expert Press, LLC 222 East 46th Street, New York, NY 10017 www.businessexpertpress.com ISBN-13: 978-1-63157-258-6 (paperback) ISBN-13: 978-1-63157-259-3 (e-book) Business Expert Press Selling and Sales Force Management Collection Collection ISSN: 2161-8909 (print) Collection ISSN: 2161-8917 (electronic) Cover and interior design by S4Carlisle Publishing Services Private Ltd., Chennai, India First edition: 2015 10 9 8 7 6 5 4 3 2 1 Printed in the United States of America. Abstract The sales function is becoming more and more strategic because (a) the customer base is rapidly evolving through internationalization, mergers, and acquisitions, and (b) the manufacturers’ marketing and supply chain func- tions are being progressively centralized, regionalized, and globalized. Mul- tinational companies develop most of their brands and activation programs with a global scope and feed their markets through international supply networks. As a result, their operating units—national or transnational—are asked to act as “selling machines,” which must be capable of both imple- menting global corporate strategies locally and providing structured feed- back to improve the efficacy of the international brand portfolio. In this context, the challenge for the sales function is to develop effective sales strategies and to deliver excellent sales operations. The purpose of the book is to provide a practical guide to sales management through the analysis of its key components: route to market, sales strategy, key performance indicators, organizational models, sales force management, customer business planning, sales and operations planning, and order to cash. For each of these topics, the content of the book is a balance of theory, practical tips, and tools, keeping in mind not only the “what,” but also the “how” of the implementation. Keywords Sales management, route to market, sales strategy, key performance indicators, sales organization, sales processes, customer business planning, sales and operations planning, order to cash, distributive strategy, sales channels, account management, trade terms, trade marketing, category management, shopper marketing, field marketing, sales operations, and customer service. Contents List of Figures ....................................................................................... xi Figure Credits ..................................................................................... xiii Foreword ............................................................................................. xv Preface .............................................................................................. xvii Acknowledgments ................................................................................ xxi Chapter 1 Trade Structure and Route to Market................................ 1 Retail outlets and sales channels ........................................ 1 Trade accounts and route to market .................................. 8 Trade account strategies and economics .......................... 13 Trade account pre-evaluation model ............................... 23 Takeaway points ............................................................. 26 Chapter 2 The Sales Strategy ........................................................... 29 Definitions of corporate strategy: a mini tour .................. 29 Sales strategy: definition, responsibility, and sources ........ 33 Market analysis: trade environment scan ......................... 34 Responding to customers’ strategies ................................. 34 Customer-satisfaction surveys as a strategic input and a monitoring tool ........................................................ 35 Organization capabilities assessment and capability building program ..................................................... 37 Corporate strategy: vision, strategic themes, and goals ..... 38 The definition of the sales strategy: strategic actions, targets, and activities ................................................ 43 Communication and outputs of the sales strategy ............ 47 Takeaway points ............................................................. 47 Chapter 3 The Performance Indicators for Sales Management ......... 49 Why we need key performance indicators? ...................... 49 Financial indicators ......................................................... 49 Field sales efficacy indicators ........................................... 51 Customer-service indicators............................................. 52 Point of purchase indicators ............................................ 56 Joint business planning and customer indicators.............. 61 Utilizing KPIs: the sales team scorecard ........................... 62 Utilizing KPIs: identifying reasons and solutions ............. 63 Takeaway points ............................................................. 66 viii CONTENTS Chapter 4 Organizational Roles and Responsibilities ....................... 69 The pillars of the organization of the sales function ........ 69 The multilevel customer interface: an example ............... 69 The front office roles ...................................................... 72 The back office roles ....................................................... 77 Takeaway points ............................................................. 99 Chapter 5 Organization Models, Recruitment, and Incentives ...... 101 The organization of the front office: alternative models .... 101 The organization of the back office: alternative models ..... 104 Job descriptions ............................................................ 109 Sizing, recruiting, training, and developing the sales team......................................................... 112 Incentives, variable pay, reward, and recognition .......... 116 Takeaway points ..........................................................

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