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Transcript of SMM Chapter 1. 12.10.03
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Chapter 1
The Sales Management Job
Legend and mythology are filled with stories of heroic individuals who with a single dramatic act
transform themselves into skilled and successful leaders.
After laying siege to Troy for nine unsuccessful years, Odysseus lured the defending Trojans into
opening the gates of their city by leaving them the gift! of a giant horse. Once inside the city walls,
Odysseus and his soldiers emerged from the horse and destroyed the city.
Ale"ander of #acedonia cut the $ordian knot and, as Ale"ander the $reat, went on to con%uer most
of the known world.
Arthur pulled &"calibur from the stone, united warring fiefdoms into the kingdom of &ngland, and
made peace among his warring knights by seating them at a round table.
'f only it were so easy to become a (ales #anager)
*nfortunately, real life seldom resembles legend and mythology. There is no single great deed or
heroic action you can undertake to become a successful sales manager. 't takes time, energy, and
a lot of work. +owever, dont worry you cando it) And the $allo (ales #anagers #anual will help
you do it.
The Gallo Sales Managers Manual
As you read this manual, please keep in mind that it was written for a very diverse group of high
performing and successful sales people. -e realie that many readers have a bachelors degree in
a specific business major such as marketing or management, and a few may even have an #/A.
#ost, however, will have had no formal business education. There is absolutely no educational
prere%uisite for benefiting from this manual. And for those readers who do have an e"tensive
business education, keep in mind that this manual was not written to give you e"posure to leadingedge management theories and techni%ues.
0istributor sales and sales management training is a high priority of the $allo -inery. The sole
purpose of the $allo (ales #anagers #anual is to give new first level sales managers in our
distributor network a solid grounding in practical and basic sales management skills that work. /y
work,! we mean that we have focused e"clusively on the knowledge, skills, and techni%ues that
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have a proven track record for enabling new managers to %uickly achieve e"pected sales results
through a team of sales representatives. -ere talking about the kind of skills that will help you,
regardless of your educational e"perience, to1
#ake a rapid transition to your new job.
Achieve results that you can be proud of in the short and long2term.
(et a strong foundation for gaining the respect and cooperation of any sales person who
reports to you throughout your sales management career.
3lease keep in mind that distributors in $allos distributor network vary greatly in sie, business
philosophy, and in their approach to day2to2day business practices. 'f this manual had been
developed by your employer it would probably provide much more specific direction such as do
this! and do that!, or use this! and use that.! Thats not our role. -e dont know what specific
forms and tools your distributor wants you to use. 4or do we know what specific business practices
your distributor may consider preferable. /ut we do know what works! when it comes to achieving
and sustaining results through a wine sales team. And your distributor apparently agrees with us or
you wouldnt be reading this manual.
Our goal is to help you learn basic principals of successful sales management5 your distributor
management will help you to apply them as appropriate to your actual job.
-e encourage you to read this manual carefully and to use it as a reference throughout your first
few months in your new management assignment. 'f you find that any recommended practices
differ from your understanding of your distributors preferences, seek clarification and direction from
your manager. /efore you turn the manual in, feel free to make copies of anything you want to
keep. -ith the above in mind, well formally begin your training! with some thoughts about your
transition from selling to managing.
NOTE: 6ou will be reviewing many sales management practices 7including specific forms and
techni%ues8 throughout this $allo (ales #anagers #anual. Although we have followed widely
applicable legal principles in preparing these materials, some states, localities or specific collective
bargaining agreements may restrict or prohibit the use of some of these practices. 6ou and your
distributor management are responsible for determining whether any practices referred to in this
manual are restricted, prohibited, or otherwise not acceptable in your state or marketing area.
Always check with your management if you have any %uestions about the legality, applicability oracceptability of any material contained in this manual.
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Makng The Transton !rom Sales "epresentat#eTo Sales Manager
As a sales representative, you were rewarded for your ability to get results through your own efforts.
As a (ales #anager, you will be rewarded primarily for your ability to get results through the efforts
of others.
This transition may be the single most difficult challenge facing a new (ales #anager. 'n the past,
your work habits were geared to direct personal accomplishment. 4ow you must work to achieve
results through your sales representatives. 'n other words, you must make the transition from being
a doer! to a manager of doers.! 9or many new (ales #anagers, this can be a very difficult
transition.
This challenge can be summaried in a single %uestion that most (ales #anagers have asked
themselves many times1 (hould ' focus on results or should ' focus on developing my people:!
As you will see, the correct answer indeed the only answer to this %uestion is to balance your
efforts and focus on both results andpeople. 'f you focus only on results, you will never develop
your sales representatives to their ma"imum potential. On the other hand, if you focus
disproportionately on developing your people, you may not achieve some necessary results in the
short term. (o, much of the challenge of successful sales management is to keep your eye on
results and achieve necessary short2term results while you are developing your sales
representatives for improved long2term performance.
$se %our E&peren'e
As you begin to make the transition from sales representative to (ales #anager, you may feel a little
overwhelmed by the newness and uncertainty of your management role. To some e"tent, this is an
understandable reaction. +owever, keep in mind that you already know a great deal about the sales
management job. As a (ales #anager, you will be able to draw e"tensively on your past e"perience
as a sales representative.
(ome aspects of your e"perience as a sales representative will help you in your new role as a (ales
#anager. Other aspects of your e"perience may actually handicap you. Lets look %uickly at how
your past e"perience may help and hinder your transition into sales management.
6our previous e"perience as a sales representative will help you in a number of ways.
%ou un(erstan( ho) to mot#ate others. As a (ales #anager, your task is to achieve results
through the efforts of others. -hile you were a sales representative, you learned how to understand
your customers motivation and how to use professional sales skills to motivate your customers to
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accept many of your recommendations. 6our knowledge of motivation and sales skills will be useful
in motivating your sales representatives, too. 6ou will find that your skill in making presentations
and your ability to handle and overcome objections will be valuable assets as you work with your
sales representatives.
%ou kno) the sales representat#e *ob. 6our knowledge of the job will be very useful to you as
you work to assist and develop your sales representatives.
%ou kno) ho) to plan +or ,oursel+. As a manager, your planning responsibilities will be different
than they were when you were a sales representative. The skill you have already ac%uired in
planning and time management will be directly transferable to your new role and responsibilities.
%ou ha#e the ablt, to meet hgh stan(ar(s. 6ou have already demonstrated the ability to
consistently meet the e"acting re%uirements of the sales representative job and the five $allo
(tandards Of 3erformance 7or comparable On23remise standards81
0istribution
(helf
;old /o"
0isplay
3ricing
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4o one likes to advocate an unpopular position. As a (ales #anager, it is your responsibility to
represent and sell your companys positions to your sales representatives. This may re%uire a
change of mindset.
%ou ma, +eel more 'om+ortable sellng than (e#elopng ,our people. As a sales
representative, you mastered the skill of selling programs to your accounts. 6ou probably derived a
great deal of satisfaction from your successful sales efforts. (o if one of your sales representatives
is floundering in a presentation, you may be tempted to jump in and make the sale. This approach
may help you achieve results in the short term, but it can seriously limit your ability to develop your
sales representatives.
%our per'epton o+ the sales managers role ma, be strongl, n+luen'e( b, the )a, ,ou )ere
manage(./ 6ou may have worked for someone you considered a good manager! and
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in ;hapter =, Training And 0evelopment,! people learn best through a combination of telling,
showing, and practicing.
uttng out +res. (ome managers enjoy the adrenaline rush that comes from handling
emergencies and responding to crises situations. Once in a while, every manager has to respond
%uickly to a problem or event that could not be anticipated. 9ighting fires! is usually an inefficient
management style. &ffective managers rely on sound advance planning so they can anticipate
many problems and develop successful solutions.
3ns(e manager. The sales management job involves a wide range of responsibilities. (ome of
these responsibilities re%uire work inside the office, but most others re%uire work in the field. 'f you
spend too much time inside the office, you will find that your results and your people will suffer.
aper shu++ler. #any new (ales #anagers become fascinated with the forms and information that
are available to them. 'n the process, they may become paper shufflers.! 'nstead of trying to
reduce and refine administrative work, they generate additional paperwork for themselves and their
sales representatives. >eep in mind that administrative paperwork is only valuable to the e"tent thatit helps you achieve necessary results and enables you to keep your management informed.
4u'k 'hange artst. (ome new (ales #anagers feel they need to make their marks! %uickly.
These managers seek to change every possible practice and procedure. Out with the old, in with
the new. *nfortunately, this kind of random change is generally disruptive and counter2productive.
/efore you seek to make any significant changes, make sure you understand fully what you are
trying to change. Also make sure the change will help you increase efficiency and performance.
Ju(gng on past per+orman'e. #any new (ales #anagers make the mistake of relying too
heavily on historical data to evaluate the current performance of their sales representatives. This
reliance on historical data can condition a new manager to regard and evaluate a sales
representative the same way his or her previous manager did. 'n turn, this can create a self2
fulfilling prophecy! where sales representatives continue to appear to be performing as they had in
the past. To avoid this vicious cycle, be sure to evaluate your sales representatives on the basis of
how they are doing now, not how they were doing then.
The kno)-t-all. 4ew managers sometimes feel they are e"pected to be the ultimate authority on
everything. This e"pectation is unrealistic and counter2productive. 0ont be afraid to ask you own
manager for help.
3m the boss. (ometimes a new (ales #anager feels a need to assume an infle"ible, dictatorialstyle. 0o it my way or else.! 6es, you are the boss. As the boss, you are responsible for getting
results through the efforts of others. An arbitrary, one2sided management approach can %uickly
interfere with achieving these important results. 'f you are fle"ible you will find that you will be more
effective, too.
!alng to 'ommun'ate openl, an( appropratel,. (ome new managers tend to filter or control
information and generally make it hard for their sales representatives to learn much about their
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distributors overall business activities. They operate as if everything is secret! if for no other
reason than to elevate their new status as a member of management.! This can make sales
representatives feel uniformed or misinformed about their employers status, plans, practices,
objectives, direction, and e"pectancies. *nless something is considered confidential! 7on a need to
know basis8, it is generally beneficial to team building if a manager communicates in an open,
forthright, and timely manner whenever possible. This is especially important if there is an
opportunity to dispel rumors that might undermine morale.
'f you guard against these typical mistakes and pitfalls, your transition to sales management will be
smoother for you andyour sales representatives.
6hat 3s Sales Management7
(o far weve been talking about your new role as a (ales #anager without really specifying what
that role is. (o lets start with a classic! definition of sales management.
As a (ales #anager, you are responsible forplanning, directing, and controllingthe activities of
sales representatives.
lannnginvolves deciding what things need to be done, determining how they should be done, and
developing plans and schedules for their accomplishment.
8re'tngmeans communicating with people and motivating them to pursue their objectives in
accordance with the established plans and schedules.
Controllng involves measuring the actual performance of people against the desired goals and
plans and taking any necessary steps to close the gap between actual and desired performance.
-ith this classic! definition in mind, you may be wondering what a (ales #anager actually does for
a living. As a (ales #anager, you will be involved in a wide variety of activities. 6ou will use and
develop many different types of skills. Lets look %uickly at some of the principal activities that will be
the focus of your job.
!ore'astng 6ou will project results that will be achieved within a certain time period. 9or
e"ample, you may project the amount of case sales that will be realied during the month for a
specific program.
Settng ob*e't#es 6ou will determine goals or targets that must be achieved by a certain time.
9or e"ample, you may set monthly case sales objectives for a particular brand for each of your
territories and your team as a whole.
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8e#elopng s'he(ules 6ou will prepare plans showing when a sales representatives activities or
accomplishments will be started or completed. 9or e"ample, you may work with a sales
representative to prepare or revise a #aster ?oute schedule.
Settng stan(ar(s 6ou will develop criteria that determines the degree to which a sales
representative has met his or her objectives. 9or e"ample, you may set a standard that for each
account classification a display must have a certain minimum number of cases to be acceptable.
Super#sng 6ou will provide day2to2day instructions and ongoing coaching to help your sales
representatives implement and carry out their plans. 9or e"ample, you may e"plain to a sales
representative what his or her role is in carrying out a merchandising plan.
Mot#atng 6ou will use a variety of individual and group motivational techni%ues to encourage
your sales representatives to do what you want. 9or e"ample, during a group sales meeting you
may recognie and commend those sales representatives who have e"ceeded their floor objectives.
/ut its also important not to demotivate those who have not achieved their objectives.
Coor(natng 6ou will orchestrate the efforts of your sales representatives and other personnel at
your distributor to assure the achievement of specific objectives. 9or e"ample, to successfully
e"ecute an especially ambitious display program, you may need to oversee many activities such as1
checking to see that your distributor has ade%uate inventory to support a very strong program,
making sure that major accounts are properly sold by your people, obtaining and distributing 3O(,
handling special delivery or credit programs, and assuring that displays are built on time.
Counselng2 6ou will hold discussions with individual sales representatives about how they might
do better work, solve work related problems, or achieve their professional goals. 9or e"ample, you
may hold a 3erformance &valuation ;onference with a sales representative to help him or her
realie the need for better planning and time management.
Sta++ng 6ou will probably be involved in recruiting and selecting %ualified people for vacant sales
positions. 9or e"ample, if authoried, you may interview several applicants and provide your
evaluations to your distributor management.
Tranng 6ou will teach your sales representatives how to perform their duties and responsibilities
more successfully. 9or e"ample, you will fre%uently work with sales representatives in the field to
improve the effectiveness of their presentations.
Measurng 6ou will utilie a variety of reports to determine the e"tent of your teams progress
toward distributor objectives. 9or e"ample, you will analye the 0aily ?eport and 0isplay
3replan
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objectives is due to poor planning, lack of preparation, or a need to improve sales and presentation
skills.
Corre'tng 6ou will take any actions necessary to improve unfavorable situations or take
advantage of unusually favorable trends. 9or e"ample, you may hold training meetings with your
sales representatives to improve their ability to make customer surveys that will help them increase
sales in target accounts.
This list of tasks can, at first, seem overwhelming. 0ont let the variety of tasks confuse you.
&ssentially, were just talking about all the steps you will take toplan, direct, and controlthe activities
of others to achieve desired results.
Other Ma*or "esponsbltes
'n addition to planning, directing, and controlling, a (ales #anager also has responsibilities in the
areas of leadership, communication, problem solving, decision making, and possibly managing key
accounts.
ea(ershpinvolves the particular style you use to influence and direct your sales representatives.
Commun'atnginvolves all the ways you keep your team informed of plans and activities through
discussions, reports, and memos. 't also involves the use of listening and probing skills with
individual sales representatives and with your group as a whole.
roblem Sol#ng an( (e'son maknginvolves your ability to define problems, gather information,
consider alternative solutions, and the problem.
;e, a''ount managementincludes all the work you do to achieve sales and merchandising
objectives in those key accounts that have been assigned directly to you or are handled by your
team members.
>eep in mind that these sales management roles are not mutually e"clusive. 6ou dont perform
these roles in a vacuum. 9or e"ample, to be effective at solving problems, you need to
communicate successfully. To be respected as a team leader, you need to be able to direct your
people effectively.
Throughout this manual, we will be providing additional information about each of these various
roles and responsibilities. +owever, keep in mind that there is no one right way to become an
effective (ales #anager. The purpose of this manual is to help you get started and to stimulate your
thinking about basic management responsibilities. -e hope to provide a basic groundwork that will
help to facilitate your transition into sales management. As you will learn, there are often alternative
ways of handling any situation.
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E"!O"M0NCE E>0$0T3ON
83ST"3CT M0N0GE"
4ame1 0istrict1 0ate $iven1
Length of 0# (ervice1 0ate of Last &valuation1
&valuator1 0ate of 4e"t &valuation1
O#erall "atng ?Cr'le One@: 1A E&'ellent 2 A Goo( B A Sats+a'tor, A $nsats+a'tor,
;omments1
1-12 The Sales Management Job
--SAMPLE--
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E"!O"M0NCE 3M"O>EMENT 0NNE" 8SM
A. 0id the #anager meet the objectives agreed upon in the last 3erformance &valuation ;onference:
DDDDD6es DDDD 4o. 'f not, describe progress or problems below1
/. List the specific objectives 7desired results8 and plans for development 7professional growth8 for the ne"t
period that you and the #anager being evaluated have agreed upon.
Ob*e't#es lans +or 8e#elopment
;. -hat specificaction will you take to assist the #anager in the above:
E. DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD
F. DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD
. DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD
(ignature of 0istrict #anager (ignature of #anager ;onducting &valuation
(ales #anager ?eview
The Sales Management Job
--SAMPLE--
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Job 8es'rpton: 8str't Manager
A 0istrict #anager is typically responsible for managing his or her district in such a way that the -inery,
the distributor and the sales representatives will obtain ma"imum return from each sales territory
consistent with current direction and sales priorities. The (ales #anager acts as a team leader. 'n
carrying out the management function, he or she will be re%uired to direct,plan, and control the activities
of the sales representatives assigned to the team. ;ommunicating, problem solving, and decision making
are applicable to each of these elements of managing.
1. Team ea(ershp
A 0istrict #anager is responsible for getting results through others. As team leader he or she is e"pected
to have command of the team of sales representatives and direct them in such a way that they will have a
strong commitment to the -inery and to the distributor. A team leader! must1
a. +ave command of the team.
b. 0emonstrate concern for sales results.
c. #aintain regard for the team.
d. /e respected and sought out by team members.
e. ;onduct team meetings that are motivational, informative, and that facilitate the collection of
necessary information.
2. 8re'tng
A 0istrict #anager is responsible for seeing that the sales representatives on the team are motivated to
do their best, trained to get results, and given opportunities to develop themselves by delegating
assignments to them. -hen a vacancy occurs on the team, he or she is e"pected to get involved in the
staffing process. 0irecting! success re%uires1
a. Letting team members know e"actly what it e"pected of them and showing them how they can
achieve e"pected results.
b. (kill as a motivator.
c. *sing individual and team goals and objectives to help motivate performance.
d. (eeking out and recruiting sales candidates as re%uested.
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e. (kill in training new representatives.
f. The ability to develop e"perienced personnel.
g. The appropriate use of performance appraisal techni%ues.
h. -illingness to delegate.
B. lannng
A 0istrict #anager, along with his or her sales representatives, must determine what is to be done, by
whom, and at what time in order to fulfill responsibility for planning. The manager is responsible for
seeing that objectives or goals are set, programs are developed, and schedules drawn up and followed.
3lanning! includes1
a. 0eveloping well2thought2out plans and schedules.
b. 0eveloping appropriate, credible, and measurable goals and objectives consistent with distributor
priorities and e"pectancies.
c. (kill in teaching sales representatives to plan effectively.
d. 'nvolving team members in goal setting.
e. -orking according to a plan.
f. (pending time where it counts.
. Controllng
A 0istrict #anager is responsible for seeing that results are obtained. The manager must be fully aware
of conditions in the field. +e or she is responsible for developing measuring and evaluating techni%ues
and for taking corrective action when it is apparent that the desired results are not being obtained.
;ontrolling! includes1
a. The effective use of surveying techni%ues, available computer capabilities, and sales
representatives reports to gather timely information.
b. #aintaining an awareness of field conditions 7observing, measuring, and evaluating8.
c. &nsuring that sales representatives route books are complete and current.
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d. &nsuring that sales representatives 0aily ?eports 7and
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significantly by state and distributor, however, re%uirements typically include the following 7where legally
permissible81
a. (elling current months and future merchandising programs including suggested display
%uantities and location, suggested pricing support 7advertised feature or T3?8, and specific retailads for each brand.
b. ;oordinating activities as appropriate and authoried by distributor management with supplier
Trade 0evelopment or chain personnel.
c. #aintaining a professional and productive business relationship with key personnel in each
account.
d. ;oordinating the follow2up activities of all sales representatives 7within the distributors marketing
area8 serving multiple units of a chain store organiation.
e. >eeping aware of market conditions and competitive trends within the account vs. the market.
f. #aintaining accurate records to effectively communicate to distributor sales management and
suppliers of program sales results and merchandising accomplishments.
g. #aking appropriate shelf, cold bo", and cross2merchandising presentations to ma"imie sales of
$allo products.
h. 3reparing and conducting periodic comprehensive business reviews for the account including acategory by category review of $allo business and the state of the wine industry 7trends,
changes, projections8 in the accounts trade area.
i. &nsuring proper rotation consistent with legally permissible practices and the accounts
preferences.
j. 0emonstrating proficiency with all technical systems
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;onsistently achieving Team (ales ?esults re%uires a fairly high level of competency in each of the first
si" primary job responsibilities described above. /ut it re%uires more, often much more. 't re%uires the
hard to measure but very real characteristics that often separates winners from losers and high achievers
from average performers. -ords and phrases such as competitiveness, focus, internal motivation, results
orientation, persistence, resourcefulness, and determination come %uickly to mind. These characteristics
in a person who has developed good sales management skills can produce e"emplary and easy to
measure team results, including1
a. ;onsistent e"ecution of monthly priority brand programs.
b. ;onsistent e"ecution of all special merchandising programs.
c. +igh %uality and rapid brand and line e"tension introductions.
d. ;onsistently high team distribution achievements 7within chain constraints8.
e. ;onsistently high team shelf and cold bo" achievement 7within chain constraints8.
f. ;onsistently high overall team results 7the kind that wins contests8.
S$MM0"%
The transition from sales representative to 0istrict #anager re%uires an important change in focus andmindset. 'n the past, you were responsible for achieving results through your own efforts. 4ow, as a
(ales #anager, you are responsible for achieving results through the efforts of others.
Although the 0istrict #anager job may be new to you, you will find that you can draw on much of the
e"perience, knowledge, and skill you ac%uired as a sales representative 7and as a leader in school, social
organiations, and in supervisory positions with previous employers8.
(ome new 0istrict #anagers approach their jobs with a variety of misconceptions or misunderstandings.
The job of the (ales #anager is difficult and comple", but it is not intended to be an e"ecutive! position.
&ssentially, the job of the 0istrict #anager isplanning, directing, and controllingthe activities of others to
achieve desired results. 'n the process, you will perform many tasks and will be involved in a variety of
activities. 'n addition, the skills of leadership, communicating, problem solving and decision making, and
key account management, are an integral part of your job. Throughout the remainder of the $allo (ales
#anagers #anual, we will try to provide a basic groundwork and understanding that will help you make a
successful transition from sales representative to (ales #anager. +owever, in no way does this manual
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purport to provide the final word on sales management. As you gain e"perience, you will %uickly learn
that there are many alternative approaches to each situation you face.
4uestons To Cons(er
E. ;onsider the initial focus you plan to take with your team. -hat kind of balance will you try to achieve
between focusing on results or on developing your people:
F. Think back to the best supervisor or manager youve ever worked for. -hat %ualities or attributes set
this person apart: -hat %ualities or attributes do you think are most important for a successful
0istrict #anager:
. -hat are the special strengths you bring to the job of the 0istrict #anager: -hat are the pitfalls or
mistakes you need to guard against:
E0SE 8O NOT 6"3TE %O$" 0NS6E"S 3N T3S M0N$0.
1 19 The Sales Management Job