Managing The Sales Force: Powerpoint by Milton M. Pressley University of New Orleans

Chapter 21 Managing The Sales Force
by
PowerPoint by Milton M. Pressley University of New Orleans

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Copyright 2003 Prentice-Hall, Inc.
Kotler on Marketing
The successful salesperson cares first for the customer, second for the products.
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Chapter Objectives
In this chapter, we answer the following questions:
What decisions do companies face in designing a sales force? How do companies recruit, select, train, supervise, motivate, and evaluate a sales force? How can salespeople improve their skills in selling, negotiation, and carrying on relationship marketing?
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Sales Representative
Robert McMurrys sales representative types:
Deliverer Order taker Missionary Technician Demand creator Solution vendor
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Designing the Sales Force

Sales-Force Objectives and Strategy Common tasks for salespeople
Prospecting Targeting Communicating Selling Information gathering Allocating
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Leveraged sales force Direct (company) sales force Contractual sales force
Sales-Force Structure
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Table 21.1: Sales-Force Structures

Territorial: Each sales representative is assigned an exclusive territory. This sales structure results in a clear definition of responsibilities. It increases the reps incentive to cultivate local business and personal ties. Travel expenses are relatively low because each rep travels within a small area. Territory size: Territories can be designed to provide equal sales potential or equal workload. Territories of equal potential provide each rep with the same income opportunities and provide the company with a means to evaluate performance. Territories can also be designed to equalize the sales workload so that each rep can cover the territory adequately. Territory shape: Territories are formed by combining smaller units, such as counties or states, until they add up to a territory of a given potential or workload. Companies can use computer programs to design territories that optimize such criteria as compactness, equalization of workload or sales potential, and minimal travel time.
See text for complete table

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Sales-Force Size
Workload approach:
Customers are grouped into size classes Desirable call frequencies are established for each class The number of accounts in each size class is multiplied by the corresponding call frequency The average number of calls a sales representative can make per year is determined The total number of sales representatives needed is determined
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The Internet has allowed many companies to shift sales support for small accounts to e-commerce sites and away from sales personnel. Additionally, many regularly occurring functions have become automated, allowing customers with any size organization to use web-based systems to place orders and submit warranty requests. Can you think of any other areas where Internet-based technologies could change the way a sales force interacts with their customers?
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Sales-Force Compensation
Four Components:
Fixed amount Variable amount Expense allowances Benefits
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Managing the Sales Force

Recruiting and Selecting Reps Training Sales Reps
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Training Programs Have Several Goals
Sales representatives need to:
Know and identify with the company Know the companys products Know customers and competitors characteristics Know how to make effective sales presentations Understand field procedures and responsibilities
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Supervising Sales Reps Norms for Customer Calls
Norms for Prospect Calls Using Sales Time Efficiently
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DAA Solutions home page describes its Design-to-Order Software application
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Time-and-duty analysis
Preparation Travel Food and breaks Waiting Selling Administration
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Company Web site as a prospecting tool
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Motivating Sales Reps
Churchill, Ford, & Walker Motivation Model:
Sales managers must be able to convince salespeople that they can sell more by working harder or being trained to work smarter Sales managers must be able to convince salespeople that the rewards for better performance are worth the extra effort
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Sales Quotas Supplementary Motivators
Sales meetings Sales contests
Evaluating Sales Representatives

Sources of Information Formal Evaluation
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Table 21.2: Form for Evaluating Sales Representatives Performance

Territory: Midland Sales Representative: John Smith
1999
1. Net sales product A 2. Net sales product B 3. Net sales total 4. Percent of quota product A 5. Percent of quota product B 6. Gross profits product A 7. Gross profits product B
2000
2001
$270,000 553,900 823,900 88.0 134.9 $54,000 55,390
2002
$263,100 561,900 825,000 84.7 130.8 $52,620 56,190
$251,300 $253,200 423,200 674,500 95.6 120.4 $50,260 42,320 439,200 692,400 92.0 122.3 $50,640 43,920
8. Gross profits total
92,580
94,560
109,390
108,810

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Principles of Personal Selling
Figure 21.3: Managing the Sales Force: Improving Effectiveness
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Professionalism
Sales-oriented approach Customer-oriented approach
Rackhams questions for prospects
Situation questions Problem questions Implication questions Need-payoff questions
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Figure 21.4: Major Steps in Effective Selling
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Major Steps in an Effective Sales Process:
Prospecting and Qualifying Preapproach Approach Presentation and Demonstration Overcoming Objections Closing Follow-up and Maintenance
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iPhysicianNets home page shows a video detailing session
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Negotiation
When to negotiate
When factors bear not only on price, but also on quality of service When business risk cannot be accurately predetermined When a long period of time is required to produce the items purchased When production is interrupted frequently because of numerous change orders
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Figure 21.5: The Zone Agreement
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Formulating a Negotiation Strategy
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Table 21.3: Classic Bargaining Tactics

Acting Crazy Put on a good show by visibly demonstrating your emotional commitment to your position. This increases your credibility and may give the opponent a justification to settle on your terms. Leave yourself a lot of room to negotiate. Make high demands at the beginning. After making concessions, you will still end up with a larger payoff than if you started too low. The ally can be a person or a project that is prestigious. You try to get the opponent to accept less because the person/object he or she will be involved with is prestigious.
Big Pot
Get a Prestigious Ally
The Well Is Dry
Take a stand and tell the opponent you have no more concessions to make.

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Relationship Marketing
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For many organizations, relationship marketing is more important than any individual transaction, because these long-term relationships can yield greater overall profitability. Would it be easier to convince a company to enter into a long term supplier-customer relationship if you offered them savings through vertical integration of product offerings, or ease of use derived from a broad range of product offerings?
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Chapter 21 Managing The Sales Force

PowerPoint by Milton M. Pressley University of New Orleans

Designing the Sales Force

Designing the Sales Force

Table 21.1: Sales-Force Structures

See text for complete table

Designing the Sales Force

Designing the Sales Force

Managing the Sales Force

Managing the Sales Force

Managing the Sales Force

DAA Solutions home page describes its Design-to-Order Software application

Managing the Sales Force

Company Web site as a prospecting tool

Managing the Sales Force

Managing the Sales Force

Evaluating Sales Representatives

Table 21.2: Form for Evaluating Sales Representatives Performance

8. Gross profits total

See text for complete table

Principles of Personal Selling

Figure 21.3: Managing the Sales Force: Improving Effectiveness

Principles of Personal Selling

Figure 21.4: Major Steps in Effective Selling

Principles of Personal Selling

iPhysicianNets home page shows a video detailing session

Principles of Personal Selling

Figure 21.5: The Zone Agreement

Principles of Personal Selling

Table 21.3: Classic Bargaining Tactics

Get a Prestigious Ally

The Well Is Dry

See text for complete table

Principles of Personal Selling

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