LEADERSHIPLEADERSHIPCH 9 Dalrymple’s Sales Management

1. Leadership2. Effective Leadership Style3. Team Building4. Coaching5. Sales Meeting6. Salesforce Personnel Issues

1. LEADERSHIP

What is Leadership Leadership is defined as the ability to

influence and inspire the action of people to accomplish worthwhile goals

Leaders inspire trust and loyalty and they understand how to direct the talents of others toward achieving important objectives

SKILL OF EFFECTIVE LEADER

Empowerment• A leader’s ability to share power with others by

involving them in setting objectives and planning

Intuition • The ability to anticipate change and take a risks.

Although experience helps to develop a sense of intuition, inexperience sales managers can build a sense of intuition by actively seeking information from customers, salespeople, sales support personnel, company records, and any other source that could serve their ultimate purpose

Skill of Effective Leader

Self-understanding• A willingness to receive and understand both

positive and negative feed-back from others, including subordinate.

Vision• The ability to conceive what may affect a business

in the future and what changes are needed for it to prosper

Value congruence• A skill achieve when everyone in the organization

is striving for the same business objectives.

Using Power Effectively

Power is the ability to influence the behavior of others. Effective sales managers know how to use it to get salespeople committed to meeting the manager’s expectation.

5 Types of Power Legitimate Power Reward power Coercive Power Referent power Expertise power

5 Types of Power

Legitimate power Based on manager’s power in organization.

Salespeople put extra effort behind products that a sales manager has targeted for a special promotion because they think the manager has a right to expect this effort

Reward power Relies on a leader’s ability to reward

subordinates for outcomes that they value

5 Types of Power

Coercive Power Leads to complience due to fear of

punishment. Salespeople who believe that they could be fired will spend extra time prospecting for new customers.

Referent power The leader’s influence on others because of

friendship with the leader.Expertise power

• Based on the perception that manager has special knowledge usually based on past success

2. Effective Leadership Styles

Leadership Style• Define as pattern of behaviors that other perceive

you to use when trying to influence their behavior

Situasional Leadership based on 2 characteristics : directive and supportive behavior.

• Directive behavior is the extent to which a leader engages in one way communication spelling out what, where when and how to do it.

• Supportive behavior is the extent to which a leader engages in 2 way communication involving listening and providing support and encouragement

4 Leadership Styles

Supporting Selling

Delegating Telling

Directive Behavior

Sup

port

ive B

ehavio

r

High

Low

HighLow

Leadership Style

Supporting Sales Manager’s role is to provide

recognition, to listen actively and to facilitate problem solving by supporting the salesperson’s effort to use what they have learned

Selling Manager provides high supporting behaviors

and also high directive behaviors, tend to provide a great deal of direction with their own ideas, but they solicit salespeople’s ideas.

Leadership Style

Delegating The interaction between manager and

salespeople is to reach agreement on the cause of a problem, but control how to deal with the problem is left to the salesperson

Telling Managers tell a salesperson what, when, how

and where to do various task. Identifying the problem and stating how the salesperson will accomplish the goal are initiated by the manager.

3. Team Building

Teamwork in sales organizations has become much more important in recent years because of changing environments and requirement, changing technology, globalization of customers and competitors as well as an increased emphasis on relationship marketing

Empowering team members and sharing leadership will increased the collective ability of the team which, in turn, increased the teams’s effectiveness

ActivitiesActivities

NormsNorms

SentimentsSentiments

InteractionInteraction

Team Building

Internal Systems of a Group

4. Coaching

A sequence of conversations and activities that provides ongoing feedback and encouragement to a salesperson or sales team member with the goal of improving that person’s performance

It consists of three basic components :1. Positive feedback

2. Role-modeling

3. Trust

Coaching (cont)

Positif Feedback To provide effective and useful feedback, it is

important to be aware of sales forced behavior that detract from sales effectiveness

• Planning : include setting territory and call objectives, routing of sales calls and use of time

• Attitude : includes the attitude toward products, specific customers, the company, the salesperson’s career. Company program and company policy

• Knowledge. Includes product-related, customer business and specific industry issues, competition, territory, company and policies

• Selling skills. Includes prospecting, selling steps, handling objectives, buying-center roles, negotiating skills.

Coaching (cont)

Role-Modelling Role-modelling is achieved when a

salesperson perceived a sales manager’s behavior as being consistent with both the sales manager’s value and the organizational goals

Trust In order for a sales force to trust a sales

coach, they must respect and have confidence in the manager’s integrity, reliability and competency.

5. Sales Meeting

Sales meeting is a common method for motivating and communicating with the sales team

3 key factors should organized in a sales meeting :

• Meeting objectives• Budgets • Location and timing

– Local Sales Meeting– Regional Sales Meeting– National Sales Meeting

Sales Meeting (cont)

Common Problem Interest

• The most damning outcome of a sales meeting is when participants find it boring and waste of time

Participation• Common complaint is that salespeople spent most of

their time listening and do not get a chance to participate and interact with management

Follow-up• Information provided during salesmeeting should be

checked by reminder letter or local manager to ensure that the information is being used by salespeople

6. Sales Force Personnel Issues

Plateauing Occurs when people stop growing as sales

professionalsTermination of Employment

Termination of emplyment should be considered an option of last resort

Sexual Harassment Women occupy about 24% of all sales

position. Many sales jobs place people in a position where sexual harassment is possible

THANK YOUTHANK YOU