8/13/2019 5 Managing the Sales Force

1/17

©2003 Prentice Hall, Inc.

Manag ing the

Sales Force  

8/13/2019 5 Managing the Sales Force

2/17

©2003 Prentice Hall, Inc.

Objectives

Review the types of decisions firmsface in designing a sales force.

Learn how companies recruit, select,train, supervise, motivate, and evaluatea sales force.

Understand how salespeople improvetheir selling, negotiation, andrelationship-building skills.

8/13/2019 5 Managing the Sales Force

3/17

©2003 Prentice Hall, Inc.

Designing the Sales Force

Deliverer

Order taker Missionary

Technician

Demand creator

Solution vendor

Types of Sales Representatives

8/13/2019 5 Managing the Sales Force

4/17

©2003 Prentice Hall, Inc.

Designing the Sales Force

Steps in Process

Object ives and

strategy

Structure

Sales fo rce size

Compensat ion

Objectives

 – Sales volum e and

prof i tabi l i ty – Customer

sat isfact ion

Strategy

 –Account manager

Type of sales force

 – Direct (company ) or

contractual

8/13/2019 5 Managing the Sales Force

5/17

©2003 Prentice Hall, Inc.

Designing the Sales Force

Steps in Process

Object ives andstrategy

Structure

Sales fo rce size

Compensat ion

Types of sales

force structures:

 – Terri torial

 – Product

 – Market

 –Complex

Key accounts

8/13/2019 5 Managing the Sales Force

6/17

©2003 Prentice Hall, Inc.

Designing the Sales Force

Steps in Process

Object ives andstrategy

Structure

Sales fo rce size

Compensat ion

Workload approach:

 – Group customers b y

volume

 – Establ ish call

frequencies

 – Calcu late to tal yearly

sales cal l work load

 –Calcu late average

number of cal ls/year

 – Calcu late number of

sales representat ives

8/13/2019 5 Managing the Sales Force

7/17

©2003 Prentice Hall, Inc.

Designing the Sales Force

Steps in Process

Object ives andstrategy

Structure

Sales fo rce size

Compensat ion

Four components ofcompensation:

 –

Fixed amount – Variable amoun t

 – Expense allowances

 – Benefi ts

Compensation plans – Straigh t salary

 – Straight comm ission

 – Combinat ion

8/13/2019 5 Managing the Sales Force

8/17

©2003 Prentice Hall, Inc.

Managing the Sales Force

Recruitment

and selection

Training

Supervising

Motivating

Evaluating

Steps in Sales Force Management

8/13/2019 5 Managing the Sales Force

9/17

©2003 Prentice Hall, Inc.

Managing the Sales Force

Recruiting begins with thedevelopment of selection criteria

 –Customer desired trai ts

 – Trai ts common to successfu l sales

representat ives

Selection criteria are publicized Various selection procedures are

used to evaluate candidates

8/13/2019 5 Managing the Sales Force

10/17

©2003 Prentice Hall, Inc.

Managing the Sales Force

Training topics include:

 – Company background , products

 –Customer character is t ics

 – Competitors’ products 

 – Sales presentat ion techniques

 –

Procedures and responsibi l i t ies Training time needed and training

method used vary with task complexity

8/13/2019 5 Managing the Sales Force

11/17

©2003 Prentice Hall, Inc.

Managing the Sales Force

Successful firms have procedures toaid in evaluating the sales force:

 –Norms for customer cal ls

 – Norms for prospect cal ls

 – Using sales t ime eff ic ient ly

Tools include configurator software,time-and-duty analysis, greateremphasis on phone and Internet usage,greater reliance on inside sales force

8/13/2019 5 Managing the Sales Force

12/17

©2003 Prentice Hall, Inc.

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 mot ivat ion too ls

 – Supplementary mot ivators

8/13/2019 5 Managing the Sales Force

13/17

©2003 Prentice Hall, Inc.

Managing the Sales Force

Evaluating the Sales Force

 – Sources of informat ion

Sales or call reports, personalobservation, customer letters andcomplaints, customer surveys, otherrepresentatives

 –Formal evaluat ionPerformance comparisons

Knowledge assessments

8/13/2019 5 Managing the Sales Force

14/17

©2003 Prentice Hall, Inc.

Personal Selling Principles

Major Aspects

Sales

professional ism

Negot iat ion

Relat ionship

market ing

Sales-orientedapproach

 –

Stresses h ighpressure techn iques

Customer-orientedapproach

 –Stresses custom erproblem so lv ing

Steps in industrialselling process

8/13/2019 5 Managing the Sales Force

15/17

©2003 Prentice Hall, Inc.

Personal Selling Principles

Prospecting andqualifying

Preapproach

Approach

Presentation anddemonstration

Overcoming

objections

Closing

Follow-up and

maintenance

(servicing)

Steps in Industrial Selling Process

8/13/2019 5 Managing the Sales Force

16/17

©2003 Prentice Hall, Inc.

Personal Selling Principles

Major Aspects

Sales

professional ism

Negot iat ion

Relat ionship

market ing

Reps need skills for

effective negotiation

Negotiation is usefulwhen certain factors

characterize the sale

Negotiation strategy – Princip led

 – BATNA

8/13/2019 5 Managing the Sales Force

17/17

©2003 Prentice Hall, Inc.

Personal Selling Principles

Major Aspects

Sales

professional ism

Negot iat ion Relat ionship

market ing

Building long-termsuppler-customerrelationships hasgrown in importance

Companies areshifting focus away

from transact ion  marketing torelat ionship  marketing