PCM Sales Management cheat sheet

Sales management spans seven functions: recruiting, selecting, training, motivating, supervising, compensating, and evaluating the sales force.

Span of control: a first-line sales manager typically supervises 6-12 reps; wider spans increase control costs and reduce coaching time per rep.

Sales force size by workload method: N = (total accounts × call frequency) ÷ (selling hours per rep per year).

Sales force size by breakdown method: N = forecast sales volume ÷ average sales per rep.

Turnover cost = recruiting + selection + training + lost-sales opportunity cost; replacement cost often equals 1.5-2x annual salary for experienced reps.

Compensation mix decision rule: higher variable share suits short, controllable sales cycles; higher fixed share suits long, team-based or developmental cycles.

Straight commission maximizes variable incentive and risk transfer to the rep; straight salary maximizes control and service behavior.

Performance evaluation should combine outcome measures (volume, quota attainment, margin) with behavior measures (calls, account coverage, CRM discipline).

Quota-setting rule: quotas should be achievable by roughly 60-70% of the force, stretch the top third, and be adjusted for territory potential.

Product-market expansion grid (Ansoff): market penetration, market development, product development, diversification - ordered from lowest to highest risk.

BCG matrix: stars (high growth/high share), cash cows (low growth/high share), question marks (high growth/low share), dogs (low growth/low share).

Market share = company sales ÷ total market sales; relative market share = company share ÷ largest competitor's share.

Customer lifetime value (CLV) = average purchase value × purchase frequency × customer lifespan × margin; acquisition spend is justified when CLV exceeds CAC.

Break-even volume = fixed costs ÷ (unit price − unit variable cost).

Price elasticity of demand = % change in quantity demanded ÷ % change in price; |E| > 1 is elastic, |E| < 1 is inelastic.

Four Ps of the marketing mix: product, price, place (distribution), promotion; services add people, process, and physical evidence.

Market segmentation must yield segments that are measurable, accessible, substantial, differentiable, and actionable.

Marketing funnel stages: awareness, interest/consideration, evaluation, purchase, retention/loyalty; conversion rate = stage exits ÷ stage entrants.