sales force management.pptx

8/9/2019 Sales force management.pptx

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Sales force management


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Objectives

• Demonstrate an understandingof ways in which a sales force ismanaged.

• Summarize and shareinformation with the class.

• Analyse a case


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Sales force Management

Sales force management involves:

• Strategic level - Designing the

sales force.• Oerational level ! Managing the

day to day activities of the

sales team.


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Designing theSalesforce

". Setting the sales objectives andstrategyo

Prospectingo Targeting

o Communicating

o Selling

o Servicing

o Information gathering

o Allocating


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Sales Strategy

Sales reresentatives wor# with customers inseveral ways:

Sales reresentative to buyer

Sales reresentative to buyer grou Sales team to buyer grou

$onference selling

Seminar selling ! educational seminar for

customers


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%mloyment tye

Direct sales force

&ull time or art time

'nside sales ersonnel or (eld sales ersonnel

$ontractual sales force )usually aid on commissionbasis*

manufacturer+s res

sales agents bro#ers


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Sales force structure

,erritorial - based on geograhy e.g. arish region

Advantages: shorter travel strong

relationshis eualization of wor# load

/roduct lines ! used where a variety of roducts Mar#et ! based on an industry

$omle0: wide variety of roducts many tyes ofcustomers broad geograhical area.


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Sales force size and comensation

,he 1or#load aroach to determining the size of the sales force sizeinvolves:

". 2rouing of customers according to annual sales volumes.

3. %stablishing for each class the desirable call freuencies

)no of calls on an account er year*

4. $alculating the total wor#load for the country in sales calls er year

5 no of accounts in each class 0 corresonding call

freuency

6. Determine average calls a sales reresentative can ma#e er

year.

7. 8o of sales res 5 total annual calls 9 average

annual calls er sales re.


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Four components of sales force compensation

&i0ed amount ! salary rovided for stability

ariable amount ! commissions bonus or ro(tsharing rovided to encourage or reward greatere;ort.

%0ense allowance ! rovided to cover e0ensese.g. travel accommodation dining


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$omensation lans

Straight salary: rovides secure income more

willing to erform non-selling activities less

incentive to overstoc# customers administrativelysimler.

Straight commission ! higher saleserformance more motivation less suervisioncontrol selling costs.

Combination - of both straight salary andcommission.


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Oerational Management of theSales force

=ecruiting and selecting

,raining

Suervising

Motivating

%valuating


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=ecruiting and Selecting Sta;

,he cost of recruitment is high.An e0erienced sales team is moreroductive

>ualities of an e;ective saleserson

• %mathy• Articulate• $on(dence• /assion9Drive

= iti d


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=ecruiting andselecting

,raining

Suervising

Motivating

%valuating

,raining

,raining is reuired to rovidesales reresentatives with thes#ills they reuire.

,raining rogrammes usuallyinclude the following:•

$omany #nowledge and ride• /roduct #nowledge? $ometitor and their roduct#nowledge? /resentation s#ills

? /olicies and administrative

= iti d


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,raining

Suervising

Motivating

%valuating

Suervising of sales teamincludes:

• Assigning sales reresentatives• Setting norms or standards

such as: -@ow many calls to ma#e -1ho to call -@ow much time to send with

rosects• %stablishing targets• Develoing wor# lans• Monitoring sta; erformance

=ecruiting and


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,raining

Suervising

Motivating

%valuating

Motivating sales sta; includes:

• Sales can be frustrating andtedious.

• @igher motivation leads to

higher e;ort higherroductivity and higherrewards.

• Sales managers have to

convince their sales team toma#e greater e;orts in order toget greater rewards.

• Strategies: bonus commission

rewards recognition

=ecruiting and


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,raining

Suervising

Motivating

%valuating

%valuating the sales sta;

Sources of information• sales reorts• ersonal observation• customer letters• comlaints• customer surveys• conversations with other sales

reresentatives

Methods of evaluating• =eorting• /erformance analysis using sales

statistics• /erformance araisals against


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1hat is a case

A descrition of a scenario involvinga business. 't usually e0lain theactivities underta#en by the

organization and the level of successof these activities in relations to thedesired goals.


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1hat is case analysis

%0amining all the information relating tothe course and erforming the following:

- Summarizing and synthesizing the

information.

- Analysing the situation

- 'dentifying the roblem and evaluating

the otions

- =ecommending a solution

S i l i


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Stes in analysing acase

Situational analysis

'denti(cation of the roblem

Analysis of alternatives

Ma#ing recommendations and justifyingyour course of action

sales force management.pptx

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