Sales & Marketing Management

Scenario #1:

Allow salespeople to sell what they want rather than what the business needs
most to sell or have directed them to sell.

Problem

This is the result of a breakdown in communication between the sales manager
and the sales force.

It is very common for companies not to inform the sales force about internal
business problems in such areas as:

Û Production capability

Û Availability of inventory

Û Break-even point (BEP) analysis for product lines or departments—

what the business must sell to break-even

Û What minimum profit margins are required

Consequently, salespeople go into the field armed with only a vague knowledge
of what is expected of them and what must be achieved overall to be
successful. They can make promises to the customers that cannot be kept.

This secretive approach taken by some companies is a huge mistake.

Possible solution

Don't solve this problem by the usual pep talk from the president, business
owner, or sales manager at the next sales meeting.

The only way to eliminate the
problem is for the business
owner or sales manager to write
clearly for the sales force.

The sales manager, in
consultation with the
salespeople, prepare a set of
personal performance
outcomes (PPO) that
collectively fulfill the business's goals and outcomes and provides firm
guidance to field operations. Properly crafted PPO is a dynamic force
throughout the organization. Tying salary reviews and incentive programs to
PPO maximizes achievement.

What are the problems?

The basic needs and

objectives of the

business

The minimum profit

margins required

meeting company

objectives

The business'

shortcomings or

weaknesses

The business'

capabilities

The business'

priorities