unit ii sdm

7/27/2019 Unit II SDM

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• Lowering the cost of turnovers andabsenteeism.

• Lowering training time and costs.

• Lowering the cost of non performance

• Increasing customer satisfaction by having thesame salesperson call.

IN MANY INDUSTRIES – A GOOD SALES FORCE IS A COMPETITIVE ADVANTAGE



MAJOR STEPS IN SALES PERSONNEL SELECTION PROCESS

1. Application

2. Initial

Interview

3. In-depth

Interviews

4. Testing

5. Reference

Checks

6. Physical

Examination

Decision No Yes



The job application form - An orderly, convenient method

Process of collecting necessary information for

determining an applicant’s minimum qualifications. It

avoids professional resumes and focuses on data required

for your company

When reviewing an application form, the sales manager

should look for - the minimum job requirements, all

dates accounted for, number of jobs and length of timespent on each job, reason given for leaving jobs, pattern

of growth.



Interviews need to be standardized as much as possible

if recruitment happens across many interview panels.For doing that interview panels go through a briefing

session before the recruitment drive.

It is best to have a few questions structured and leave

the remaining unstructured and have the interviewer fill

in his /her feedback in a structured document

Typical interview looks at the fitment of the person for

the specific job description w.r.t skills, knowledge and

talent.



• Non verbal cues such as body movements, gestures,

firmness of handshake, eye contact and physicalappearance are important -however the interpretation

of these are normally non standard



1. Effective communicator

2. Ability to listen

3. Ability to ask questions

4. Ability to solve problems5. Well organized

6. Positive Self image

7. Well mannered and courteous

8. Naturally persuasive

9. Person of Integrity



Test subjects that are often used for selecting sales personnel include (Aptitude, Knowledge,

Personality, Intelligence)

• Aptitude tests.

• Intelligence tests.

• Interest tests.

• Knowledge tests.

• Personality tests.



◦ References are the names of persons from whom

information can be obtained on an applicant’s ability and

character.



Almost all companies require their prospectiveemployees to undergo physical examinations. As ageneral rule, if the applicant gets this far in the process,he or she has the job unless health problems are

discovered.



1. Actual costs.

a. Recruiting and assessment costs.

b. Induction and orientation costs.

c. Training costs.

Costs to consider include both actual and

potential costs:



2. Potential costs.

a. Costs associated with hiring aperson who subsequently fails.

b. Costs associated with rejecting a

person who would have beensuccessful on the job.

Costs to consider include both actual andpotential cost:

continued



THE SOCIALIZATION OF S ALES PERSONNEL

Socialization is the process by whichsalespeople learn the sales culture andbehaviors appropriate for their roles in theorganization.



PURPOSES OF S ALES TRAINING

•Orienting new salespeople to the job.• Improving knowledge in areas such as

product, company, competitors, or selling skills.

• Positively influencing attitudes in such areas as job satisfaction.

•Lowering selling costs.

•Increasing sales in a particular product or

customer category.•Increasing customer satisfaction.



SALES TRAINING PROCESS

PlanningPhase

OrganizingPhase

StaffingPhase

DirectingPhase

EvaluationPhase



PHASE

ONE:

PLANNING FOR

S ALES

TRAINING

The first step when developing or maintaining

an ongoing sales training program isassessing needs.

Needs assessment entails:

•Determining the training needs of the salesforce; and

•Setting objectives for satisfying those needs.



1. Identify the requirements of the position.

2. Determine the difference between performanceobjectives and results.

3. Determine why a difference exists.4. Plan /redesign the training program



• Questionnaires.

• Interviews.• Tests given during meetings for diagnosticpurposes.

• Direct observation in the field.

• Analyses of sales, profits, and activityreports.



Failure analysis determines the reasonslow-performing salespeople fail to

achieve their sales goals.

Success analysis is used to identify

factors that appear to make salespeople

successful.

Other ways to assess training needs:

Exit interviews determine attitudes towardthe job.



PHASE TWO: ORGANIZING FOR S ALES TRAINING

• Training objectives to be accomplished.• Number of trainees.

• Trainer’s experience.

• Each salesperson’s understanding of thesubject matter.



PHASE TWO: ORGANIZING FOR S ALES TRAINING

continued

• Each trainee’s ability to learn and pastexperience.

• Training materials available.

• The costs per trainee of each method.• Extent of pre session assignments.



ON THE JOB TRAINING

The best and most frequently used training

takes place on the job.

Class room training has it’s place – but on

the job training is important in sales skills



• Training begins the first day of work.

• It continues throughout the career.

• Sales meetings serve as an important

training opportunity.

WHEN DOES TRAINING OCCUR?



PHASE THREE: STAFFING FOR S ALES TRAINING

• Corporate staff trainers.

• Sales force personnel.

• Outside training specialists.

WHO IS INVOLVED IN TRAINING?



PHASE FOUR: DIRECTING THE S ALES TRAINING

EFFORT

SALES CULTURE is the set of key values,

ideas, beliefs, attitudes, customs, and other capabilities and habits shared or acquired as

a sales group member.

TRAINING CULTURE -how much do you

believe in formal training –how muchbudgets do you commit



PHASE FIVE: S ALES TRAINING EVALUATION

1. Determine what should be measured.

2. Determine the information collectionmethod.

3. Determine the measurement methods.4. Analyze the data, determine the

results, and draw conclusions for

making recommendations.

STEPS IN THE EVALUATION



Salesperson’s reaction

Knowledge acquisition

Behavioral change

Organizational outcomes



Initial ST

Follow-up or Refresher

Training by the manufacturer to the distributor’s sales

force. Training by the manufacturer to the customers



Motivation refers to the arousal,

intensity, direction, and persistence of effort directed toward job tasks over a

period of time.



How can u motivate employees

◦ Humour corner

◦ Talking stick ◦ Man overboard awards

Personal characteristics of SFP –

◦ Competitor ◦ Achiever

◦ Ego-driven

◦ Service oriented



Exploration Establishment Maintenance Disengagement

20 30 40 50 60

Age in Years

Finding anappropriateoccupationalfield

Successfullyestablishing acareer in acertainoccupation

Holding onwhat has beenachieved,reassessingcareer withpossible

redirection

Completingone’s career



THE SEVEN COMPONENTS OF THE SALES MOTIVATIONAL MIX AND

EXAMPLES OF EACH MOTIVATIONAL METHOD

1. Sales culture

Ceremonies Stories

Symbols

Language

Challenging work assignments

Recognition5. Sales Training

Initial

Ongoing2. Basic compensation

Salary

Commissions

Fringe benefits

Sales meetings

6. Leadership

Style

Personal contacts3. Special financial incentives

Bonuses

Contests

Trips

7. Performance evaluation

Method

Performance

Activity4. Nonfinancial rewards

Opportunity for promotion Publicity

EXAMPLES OF CULTURAL VALUES AND BELIEFS AND THEIR IMPLEMENTATION



CULTURE IMPLEMENTING CULTURE

Shared Values

Reward for performance Customer service at any cost

Employees are part of family

Attain sales targets

Shared Beliefs

Customer orientation

We like this company

We are a team

The company cares about us

Quality work life

We are professionals

Shared Ceremonies

Annual awards for meritorious customer service

Monthly meetings to acknowledge people

who attain 100% of sales targets

Shared Stories

Sales managers who make salespeople suc

cessful; help with personal problems Heroic efforts to please customers by leg-

endary salespeople

Shared Symbols and Slogans

"Build bridges" to be in touch with

customers. "We don't stand on rank" (equality of

family.)

Open offices for easy communication

Special plaques for customer service andsales leaders

WITHIN THE SALES FORCE



1. Sales performance did not increase.

2. No important rewards were given for meeting the quota.

3. The rewards given for meeting quota

were not worth the extra work.

4. Treatment was not fair because oneperson’s rewards were the same as

another’s who worked harder.

An individual will tend to reduce the level of

effort if one of these situations is

encountered:



Job Satisfaction and Work Attitudes

Job satisfaction refers to feelings toward the

job.Job dissatisfaction, aggregated across

many individuals, creates a sales force that

is more likely to exhibit:

1. Higher turnover.

2. Higher absenteeism.

3. Lower corporate citizenship.

4. More grievances and lawsuits.

5. Stealing, sabotage, and vandalism.

6. Poorer mental and physical health.



Maslow’s Hierarchy of Needs Theory

Herzberg’s Two-Factor Theory

Goal Setting Theory

Expectancy Theory Job Design Theories



MATCH PEOPLE’S MOTIVES WITHINCENTIVES THEY VALUE

Incentives are aspects of the environmentthat appeal to the salesperson’s motives and

have enough worth to motivate purposeful

behavior to obtain them.



Incentives that motivate people to do their

best are high motivators.

Examples of high motivators:

• Rewards for successes

• Recognition for achievement• Job advancement

• Freedom to manage oneself

• Training and sales meetings• Leadership

• Performance evaluation

• Incentive compensation plans



A motivated sales force is essential for sales

performance. A good well structured and

balanced compensation plan is required toattract and retain a quality sales force and

keep it motivated.

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Attract quality sales people

Improve the productivity

Optimize the sales effort

Reduce sales expenses

Retain quality manpower

Reduce attrition



An effective compensation plan (characteristics):

◦ Fairness to all

◦

Provide incentive and motivation◦ Directs the sales force toward activities that are

consistent with overall marketing objectives.

◦ Connects efforts, performance and rewards

◦ Helps to attract and retain competent sales persons.◦ Helps to stimulate sales persons to put in their best

efforts

◦ Has two components, one as an assured income

another as an additional income for superior

performance.

◦ Is simple to understand and administer.



Designing the compensation plan involves followingsteps:

◦ Consider Job analysis, job evaluation and overall

compensation structure of the company

◦

Consider Industry practice ( What competitors offer?)◦ Decide compensation level after discussions.

◦ Decide compensation mix:

Financial

Non financial◦ Decide on weightage of different elements in the mix.

◦ Implement , evaluate / review and improve.

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Types of compensation plans:

Straight

salaryStraight

commission

Salary plusgroup

commission.

Salary pluscommission

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Straight salary plan:

Advantages

◦ Simple and easy to design and administer.

◦ Gives a sense of security.

◦ Is suitable when

the company adopts a ‘pull’ strategy.

the product/ territory is new

efforts and actual sales are loosely correlated.

Negotiation and purchase cycle is long (Eg: technical

projects)

Disadvantages◦ Is not a stimulant to increase sales

◦ Cost of fixed salary is to be incurred even if the sales is poor.



Straight commission plan:

Merits

◦ Incentive to perform better.

◦ Commission is a variable cost and is linked with volume/ profits.

◦ It is suitable when:

Company has adopted a ‘push’ strategy.

Not much of non-selling activities are involved.

Market is highly competitive and sales effort is directly linked with salesresults.

◦ Demerits

Often difficult to design and administer.

May be ineffective when there are many new salesmen.

May lead to unhealthy rivalry/ jealousy among salesmen.

May lead to unhappiness when market is down due to external reasons.

Income of salesmen can be unstable.

Overaggressive salesmanship might dissatisfy customers.

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Promotions Recognition Programmes

Fringe Benefits

Expense Accounts – phone bills, travel expense◦ All by co.

◦ All by employee

◦ Partially

Perks – Gardner, driver, club membership, educationalopportunities

Sales Contests

unit ii sdm

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