sales management by tactics - in slides
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(Sales) Management by Tactics ™
Presented by James D. Roumeliotis
A supervisory technique used by contemporary sales management - An overview of i ts eff ects on sales performance
JD Roumeliotis | Prof. G. DiGirolamo
Do Sales Goals Actually Work?
Sales goals can get in the way of a successful sale, if you spend too much time thinking about them.
Goals are not a bad thing – it’s what spur you to take action.
However, primary focus should be on the action, not on the goal, otherwise, you end up alienating customers through your pressure to reach your goals by making the sale.
JD Roumeliotis | Prof. G. DiGirolamo
Focus on the Process/Activities
Things are very diff erent when you focus primarily on the process of selling, rather than worrying about the day-to-day routine of closing and quotas.
When you focus on the process, you stop trying to "make the sale." Because of this, you start building long-term relationships. Eventually your customers start bringing you new business and new opportunities.
JD Roumeliotis | Prof. G. DiGirolamo
What is (Sales) Management by Tactics™ (MBT) Management by Tactics™ is a term
which describes a supervisory technique uti l ized by sales management.
It is a process in which sales managers/ directors, along with salespeople, identify the day-to-day activities required to achieve sales objectives and focus their energies in controll ing such activities (input) – rather than simply focusing on results (output).
JD Roumeliotis | Prof. G. DiGirolamo
What are the advantages of applying MBT?
Management by Object ives (MBO) focuses on the outputs (sales results) .
On the other hand, salespeople improve their performance when they focus on tasks ( inputs) rather than sales object ives (outputs) .
I t is eff ect ive in several types of industr ies – for both products & services.
Eff ect ive in penetrat ing new markets.Eff ect ive in sel l ing new products to exist ing customers.
JD Roumeliotis | Prof. G. DiGirolamo
RESEARCH STUDY – pretest & post-test results* (with MBT)
Tw e n t y n i n e s u b j e c t s f r o m a s a m p l e o f f o u r c o m p a n i e s r e p r e s e n t i n g d i ff e r e n t t y p e s o f i n d u s t r i e s w e r e s e l e c t e d .
T h r e e o f t h e c o m p a n i e s s o l d p r o d u c t s ( t o b a c c o , t e x t b o o k s a n d p h a r m a c e u t i c a l s ) , w h i l e t h e o t h e r p r o m o t e d / s o l d l o a n s e r v i c e s .
T h e fi r s t 3 c o m p a n i e s s o l d t o r e t a i l e r s , w h i l e t h e 4 t h s o l d a c a d e m i c t e x t b o o k s t o s c h o o l s ( w h i c h i n t u r n s o l d t h e m t o s t u d e n t s ) .
D u r i n g t h i s r e s e a r c h , s a l e s r e p r e s e n t a t i v e s f r o m a l l 4 c o m p a n i e s w o r ke d e x c l u s i v e l y w i t h o u t p u t g o a l s – n a m e l y s a l e s o b j e c t i v e s . D a t a w e r e c o l l e c t e d . T h i s s t a g e o f t h e r e s e a r c h w a s r e f e r r e d t o a s t h e “ P r e -t e s t ” .
* Source: Management By Tactics (MBT): An Investigation of its Effects on Sales Performance, Giovanni Di Girolamo, Ph.D. (Management), California Coast University, Santa Ana, California, December 2005
JD Roumeliotis | Prof. G. DiGirolamo
The researcher then proceeded to implement the
Management by Tact ics™ system. In this phase of the research, the salespeople were
given Input goals, such as the number of te lephone cal ls to be made, number of prospects to
vis it and types of sales presentat ions etc.
This stage of the research is referred to as the “Post-test”.
Research Study - Post Test
JD Roumeliotis | Prof. G. DiGirolamo
Research Study - Conclusion
Results from all four companies suggest that there is indeed a relationship between variables: MBT had a positive impact on Sales Performance. In the absence of applying MBT, all representatives in the study under achieved sales objectives between 21% to 75% of their target.On the other hand, when all reps were given input goals under the MBT system, the weakest rep hit 100% of target – while the other two reached 117% and 118% respectively for a combined average of 112% of sales targets.
JD Roumeliotis | Prof. G. DiGirolamo
Including the forms used for MBT™ Contact: jdr@affluencemarketing.ca
C o p y r i g h t 0 1 / 2 0 1 3J a m e s D , R o u m e l i o t i sP r o f . G i o v a n n i D i G i r i l a m o
(Sa les ) Management by Tac t i c s™
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