Development and management of sales force
- 1. Girish Jadhwani MBA II Development andDevelopment and management ofmanagement of Sales ForceSales Force
- 2. Objectives • 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.
- 3. Developing the Sales Force • Sales engineer • Executive salesman • Missionary salesman • Industrial supplier salesman • Inside salesman Types of Sales Representatives
- 4. Developing 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 contractual
- 5. Developing the Sales Force Steps in Process • Objectives and strategy • Structure • Sales force size • Compensation • Types of sales force structures: – Territorial – Product – Market – Complex
- 6. Developing 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 sales representatives
- 7. Developing 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 – Combination
- 8. Managing the Sales Force • Recruitment and selection • Training • Supervising • Motivating • Evaluating Steps in Sales Force Management
- 9. 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
- 10. 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
- 11. 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
- 12. 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
- 13. 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