5Cs of Sales Management

Sales Management
Knowledge Center


New Topic

Parag Utekar
Student (MBA), India

5Cs of Sales Management

Marketing could be defined as getting the right product to the customer at the right time and in the right place. Whether this happens or not would, especially in B2B Marketing, depend to a large extent on how well the sales structure is organized. When considering Sales any company must consider five main factors all starting with a C when making any major decisions wrt Sales: Capacity, Control, Coverage, Cost, and Conflict.
  • Capability: The starting point of any sales decision is to assess whether the company has the ability to create a sales force with the necessary skills to meet the customer requirements. The company should ask questions like "What do we need our salespeople to do?" and "Are the available, recruited salespeople capable of completing the tasks?" The company should also consider the tradeoffs involved in serving the customers in other ways, such as a distribution channel with agents or value-added retailers.
  • Control: A direct sales force provides companies with a better, immediate (direct) control over their interactions with the customers. Selling directly allows companies to (among other things):
    • Keep their customers private.
    • Develop consistent, "intimate" contacts with the customers and get an unfiltered response to its offerings.
    • Accomplish high levels of customer loyalty leveraging product expertise.
    • Set sales target for individual salespeople. Sales target serve as a motivation and forecasting tool and (under normal circumstances) guarantee some level of revenue.
  • Coverage: Companies can use multiple sales reps and outside agents to generate a greater reach in the market, by using these benefits:
    • Different types of selling skills.
    • New types of customers.
    • Broader geographical regions.
  • Cost: The cost of serving customers using a dedicated sales force has to be considered. The greater control and greater coverage is achieved at a greater cost. On the other hand, also the cost and risks involved in working with an indirect sales force should be compared. The salaries of direct salespeople can be high, but they often have considerable variable components in their pay structure which is only owed in case of success.
  • Conflict: One conflict in a sales organization can arise when two or more people are assigned or claim the same customer. Establishing a system administering which client belongs to whom can help, but conflicts can still arise. In case a company opts for a multi channel marketing strategy, another conflict is dealing with channel conflicts between direct sales and the indirect channel.
⇒ Do you agree these are the main 5 factors that affect sales management?

Source: Steenburgh, T. (2006). Personal Selling and Sales Management, Harvard Business School, 507039 .

Participate and leave a comment
Exchanging your ideas stimulates your personal and professional development. And you can help other people! Please motivate your point of view. You can still edit your comment for 3 hours.

Start a new forum topic


More on Sales Management
5Cs of Sales Management
🔥Virtual Selling Process Due to Internet and Covid
Approaches for Sales Pipeline Management / Sales Funnel Management
How to Align Sales Strategies with Corporate Revenue Targets?
Integrating Sales and Marketing
Metrics for Tracking Sales Performance
Understanding the Buying Process in Major Accounts
How to Implement Strategic Account Management?
Key Account Management
Best Practices
Sales versus Marketing
Sales versus Business Development
B2B Sales of New Products
How to Motivate the Sales Force?
Sales Strategies | Selling Strategies
7 Steps of the Selling Process
Sales Methods, Models and Theories
Special Interest Group

Are you interested in Sales Management? Sign up for free

Notify your students

Copy this into your study materials:

and add a hyperlink to:

Link to this discussion

Copy this HTML code to your web site:

Sales Management
Knowledge Center

About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2021 12manage - The Executive Fast Track. V15.8 - Last updated: 13-5-2021. All names of their owners.