Changes in Sales Management

Traditional sales have been losing significance whileIt is increasingly know that customers often buy
almost all markets of trade and industry areproducts such as personal computers from discount
experiencing the great changes currently taking place.stores without any advice.
The new work emphasis is now covered on manyOne of the greatest challenges for sales is the
sales training courses. The new media has beentransition from price selling to value selling.
opening unknown sales routes, and the salesAs well as products, increasingly a service has to be
department is now no longer exempt from newsold. Selling value is a true art form.
management techniques such as lean and total qualityAccording to Professor Simon, this is the most current
management.and explosive trend. If companies such as
Management streamlining will lead to moreVulkan-Werft remain competitive in spite of full order
decentralisation and individual responsibility.books, it is because they offer cut prices. Listing prices
In the course of lean management, the number ofare still raised annually, but the prices left after
hierarchy levels is reduced in many companies.deducting discounts and special conditions are still
The result of this development for many salespeople islower. Some companies such are going in the opposite
a depersonalisation of management. Instead of havingdirection in that they are lifting their discounts and going
daily or weekly contact with their area sales manager,over to a net price policy.
they report to the company via electronicThe tightrope walk between personal and automated
communication.sales continues. It is extremely difficult to maintain the
Instead of beginning their sales route from work, theybalance between sales department costs on the one
start from home and take on a great deal morehand and client relations on the other.
personal responsibility than previously for planning andCertainly, the costs of personal sales have improved in
managing their own work.the last few years and will persistently rise. Information
On balance: the sales people become a sole agent.technology, on the other hand, is becoming increasingly
Some businesses have already arranged regularcheap. The more thoroughly a company automates its
information exchanges in the form of regular groupcontact with customers, the more anonymous,
meetings in order to prevent the isolation of the salessynonymous and disengaged it's relationship with
person.customers becomes.
The assessment of sales performance has to beOn balance: Over the years a patron builds up close,
radically improved.even seemingly friendly relationships with bank staff.
Simple gauges such as turnover or cover contributionThis is doubtfully going to happen with a cash machine.
are no longer sufficient. Independent salespeopleWith unspecified business relations there is the great
naturally require less supervision and therefore benefitdanger that clientele will compare price and
from having good sales training. Any companyperformance and buy for those reasons.
choosing turnover and cover contribution asThe sales department has to think much more in
assessment criteria are unaware of the extent toterms of net product and contribute to overcoming the
which the salesperson is exhausting their areadistance barrier. Closeness to customers, customer
potential, how many new clients they visit, howrelations and customer satisfaction are becoming
intensively they push new products etc.increasingly of more importance. According to
Tip: Questioning your clients on a regular basis aboutProfessor Simon, "The client's voice must be forcefully
their satisfaction with the salesperson is one possibilityimprinted into the company!"
of assessing the performance of your sales team inThe salesperson becomes a coordinating manager in
future.that they unite employees from research and
A qualifications divide is opening up in sales, becausedevelopment, logistics, client care etc with (potential)
information technology is replacing previous specialistclients.
knowledge. In the area of High Qualification Selling theOn balance: Particularly successful companies will
person is becoming increasingly important in the salesdistinguish themselves in future through a high degree
process, but the importance of information technologyof marketing professionalism and a higher degree of
remains the same. An example is the progressivecloseness to their clients. 28% of clients who change
transition from mechanics to electronics in thesupplier do this for price reasons, 19% are dissatisfied
mechanical engineering industry, which requires highlywith product quality. 53% of all clients who change
qualified sales engineers.supplier, however, find fault with the poor quality of
In Low Qualification Selling, on the other hand,service and weaknesses in client contact.
information technology is becoming increasinglyThe outsourcing of sales activities will increase.
important and the people are being gradually replaced.An advancing number of businesses are treating their
This development is currently underway in bankingsales department as an independent corporate area in
where information technology (statement printers, cashorder to increase efficiency. This development offers
machines, home banking, tele banking etc) is replacinga great opportunity to entrepreneurial types where an
people. On balance: caution must be exercised wheneffective sales force that is skilled and has received
categorizing products: not every high-tech productgood sales training can win additional business.
'automatically' requires High Qualification Selling.