Chapter 17: Managing the Sales Force docx

Chapter 17Managing the Sales Force PowerPoint by Karen E.. Managing the Sales Force Recruitment and selection  Training  Supervising  Motivating  Evaluating Steps in Sales Force M

Chapter 17

Managing the Sales Force

PowerPoint by Karen E James Louisiana State University - Shreveport

 Review the types of decisions firms

face in designing a sales force.

 Learn how companies recruit, select,

train, supervise, motivate, and evaluate

a sales force.

 Understand how salespeople improve their selling, negotiation, and

relationship-building skills.

Designing the Sales Force

 Deliverer

 Order taker

 Missionary

 Technician

 Demand creator

 Solution vendor

Types of Sales Representatives

Designing the Sales Force

Steps in Process

 Objectives and

strategy

 Structure

 Sales force size

 Compensation

 Objectives

– Sales volume and

profitability

– Customer

satisfaction

 Strategy

– Account manager

 Type of sales force

– Direct (company) or

Designing the Sales Force

Steps in Process

 Objectives and

strategy

 Structure

 Sales force size

 Compensation

 Types of sales force structures:

– Territorial – Product – Market – Complex

 Key accounts

Designing the Sales Force

Steps in Process

 Objectives and

strategy

 Structure

 Sales force size

 Compensation

 Workload approach:

– Group customers by volume

– Establish call frequencies

– Calculate total yearly sales call workload

– Calculate average number of calls/year

– Calculate number of

Designing the Sales Force

Steps in Process

 Objectives and

strategy

 Structure

 Sales force size

 Compensation

 Four components of

compensation:

– Fixed amount – Variable amount – Expense allowances – Benefits

 Compensation plans

– Straight salary

– Straight commission

Managing the Sales Force

 Recruitment

and selection

 Training

 Supervising

 Motivating

 Evaluating

Steps in Sales Force Management

Managing the Sales Force

 Recruiting begins with the

development of selection criteria

– Customer desired traits

– Traits common to successful sales

representatives

 Selection criteria are publicized

 Various selection procedures are

used to evaluate candidates

Managing the Sales Force

 Training topics include:

– Company background, products

– Customer characteristics

– Competitors’ products

– Sales presentation techniques

– Procedures and responsibilities

 Training time needed and training

method used vary with task complexity

Managing the Sales Force

 Successful firms have procedures to aid in evaluating the sales force:

– Norms for customer calls

– Norms for prospect calls

– Using sales time efficiently

 Tools include configurator software, time-and-duty analysis, greater

emphasis on phone and Internet usage, greater reliance on inside sales force

Managing the Sales Force

 Motivating the Sales Force

– Most valued rewards

 Pay, promotion, personal growth, sense

of accomplishment

– Least valued rewards

 Liking and respect, security, recognition

– Sales quotas as motivation tools

– Supplementary motivators

Managing the Sales Force

 Evaluating the Sales Force

– Sources of information

 Sales or call reports, personal observation, customer letters and complaints, customer surveys, other representatives

– Formal evaluation

 Performance comparisons

 Knowledge assessments

Personal Selling Principles

Major Aspects

 Sales

professionalism

 Negotiation

 Relationship

marketing

 Sales-oriented approach

– Stresses high

pressure techniques

 Customer-oriented approach

– Stresses customer

problem solving

 Steps in industrial selling process

Personal Selling Principles

 Prospecting and

qualifying

 Preapproach

 Approach

 Presentation and

demonstration

objections

maintenance (servicing)

Steps in Industrial Selling Process

Personal Selling Principles

Major Aspects

 Sales

professionalism

 Negotiation

 Relationship

marketing

effective negotiation

when certain factors characterize the sale

Personal Selling Principles

Major Aspects

 Sales

professionalism

 Negotiation

 Relationship

marketing

suppler-customer relationships has grown in importance

shifting focus away from transaction

marketing to relationship marketing