2015

Management of Sales Force Chapter ( 5 )

Prepared By Omar Kotta

01116911852

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Chapter 5 Profiling and Recruiting Salespeople

There is a Relationship between sales force selection & strategic planning:

Accordingly an inefficient rep can damage the reputation for the company and ruin the relationships with customers. Recruiting and selecting sales people is NOT a sales manager's only job, but it's the most important one. Sales force is the one group that directly generates revenues for the organization

as they are responsible to implement company's marketing plan.

Problems of recruiting and selecting:

1. Lack of resources 2. Lack of job specification and qualifications 3. Lack of managerial training 4. Search for managerial talent

Importance of a good selection program Qualified salespeople are scarce, because:

a) Good salespeople are hard to find. b) Selling doesn’t have the high social prestige of some other careers, so it may not

attract the top-notch candidates from universities & colleges. (kolna shyfno eny a5rk baya3 fe store aw sales rep)

c) Most students are viewing selling in a negative way, associating it with door-to-door activities (mo3zmna beshof el salespeople a5rhom betl3o el houses w ybe3o lel sokan montgat aw nas wa2fa fe m7lat tbe3 fe kter msh berda yht9lha)

d) Many young people aren’t aware of the opportunities provided by jobs in outside selling.

1. Good selection improves sales force performance: It affects the profits & sales

revenues and also it can reduce the sales force turnover and thus lead to improved sales performance. (b5tar nas fahma w shtra fe el sales fe sure el output bt3hom bekon 3aly w begebo profit le shrka)

2. Good selection promotes cost savings: It affects direct cost savings (by reducing sales force turnover) and indirect cost benefits (through prevention of lost sales that can result from poor selection).

3. Good selection eases other managerial tasks: Selecting the right people means training is easier, less supervision is required, and motivation is less difficult.( walhi how asln qualified fe msh ha7tg at3b m3ah zai el sales rep ely m3ndosh ay experience )

4. Sales managers are no better than their sales force: An executive with a poor sales force cannot surpass a competitor who has much better salespeople.

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Scope of sales force staffing process: 1. Plan the recruiting and selection process 2. Recruit an adequate number of applicants 3. Select the most qualified applicants 4. Hire those people who have been selected 5. Assimilate the new hires into the company

Step 1: The planning phase: A) Establishing the responsibility for recruiting and selection: It may be assigned to the top sales executives, the field sales manager, the human resources department or combination of these positions.

The decision made depends on the size of the firm and nature of selling task. For e.g. In large firms, decisions are usually shifted to lower level sales managers and the HR department assists the managers in recruitment & selection but the sales managers make the final decisions about hiring. (y3ni a el kalam da ?. ana awl 7aga ha3mlha ha7ot plan lel ftra 3ala azai hageb nas gdeda tsht9l , tb men ely be3ml kda ? 8alban el top managers w sa3at bekon el hr m3hom , y3mlo planning azai he5tro w hetkon a responsibilities bt3thom w kda , tmam ? . 5alo balk fe el shrkat el kbera 8alban ely be5od el qarar el lower mangers (sales managers , district w kda w bes3dhom fe interviews el HR , bs el qarar fe el awl w el a5er lel sales manager tyb fe shrkat el so8era homa asln m3ndhomsh t2smet el mangers el ktera fe btkon sahla 3melt el selection btro7 lel top 3la tol btegy fe T/F el7ta de)

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B) Determining the number of people needed - Management should first review any changes in company’s strategic marketing

plan to determine how the plan will affect the number of salespeople needed. - Factors to be considered in estimating the number of salespeople needed. 1. Reps needed for changes in the deployment of salespeople (new or eliminated

territories). 2. Promotions out of the sales force 3. Expected retirements from the sales force.

4. Expected turnover, including terminations & resignations. (el administration hena lazem tshof el strategies ely kant mashya 3leha w el ta8er ely 7sl el ftra le a5er 3ashan a3rf a7ded ana 3ayz kam wa7ed geded fe shrka 3ashan arg3 ageb profit, btshof ana m7taga kam , w kam wa7ed atr2a le position a3la fe b2a feh makan fady , kam wa7ed hetl3 m3ash , a7tmal ymshy ka wa7ed sawa2 b2a msheto el shrka aw qdem astqla)

C) Job description It is the document that sets forth the findings of the job analysis.

Note that : Scope of job description : it is not enough to say that the salesperson

is supposed to sell the product, call on the customers or build good will toward the

company.

By studying the description: a. The executive in charge of sales training knows in detail what the salespeople’s

duties are and what they must learn. b. Developing compensation plans. c. Determine whether each salesperson has a reasonable workload.

Content of Job Description: a. Title. b. Organizational relationships : To whom do the salespeople report c. Type of the product or service to be sold d. Type of customers to be called on, frequency of calls, and types of personnel to be

contacted e. Duties & responsibilities related to the job : such as planning activities f. Job demands : mental and physical demands of the job: such as the amount of

travel, autonomy, and stress g. Hiring specifications

D) Job qualifications: It is the most difficult part of the entire selection process.

Each company should establish its hiring requirement for each type of sales job in the firm.

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Traits and Abilities of Top Salespeople:

Trait Related Ability

Emotional intelligence.

Analytical intelligence. Creative intelligence. Integrity. Social competence. Risk taker. Optimism. Self-motivation. Cooperativeness.

To understand customers, to adapt. To solve problems. To sell ideas, to adopt. To build trust. To build relationship. To be innovative. To handle rejection. To work hard. To work on teams.

Categories of traits should be developed:

Cognitive abilities (planning and problem solving ability)

Physical characteristics (appearance- neatness)

Experience (sales and other business experience)

Education (degrees- major)

Personality traits (adaptiveness – persuasiveness)

Skills (communication, technological, interpersonal)

Socioenvironmental factors (interests, activities, membership in organization)

You need also to be careful to comply with laws regarding nondiscrimination

Traits for the Team:

Willingness to share

Cooperative

Trusting

Empathetic

Accepting of others

Receptive to others ideas

Selflessness

Leadership skills

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Step (2): Recruiting and its importance:

Recruiting: It includes all activities involved in securing individuals who will apply for the job.

Recruiting Sources of Sales Reps

Recruiting evaluation:

The company should continually evaluate the effectiveness of its recruiting program.

To conduct recruiting evaluation, management may use some form of matrix approach. This information should enable management to determine which sources produce the best recruits.

Source Comment

Referrals Candidates and position are known to person making referral. Existing sales force is an excellent source for referrals as they know their job requirements and can identify good matches. (Zai eny ashof recommendations mn el nas ely 7awlya aw mn el mozfern bto3y)

Within Company Current employees Sales force leads

Company employees know the company and its products. Current salespeople know the job requirements & can possibly identify candidates who would be a good job match. (sa3t betnql nas mn departments Tania w ysht8lo fe sales , bekon ely na2shom training w homa kda kda 3rfen el shrka kwys)

Other Companies: Competitor’s sales force Customers Suppliers

Competitors know the customers and are familiar with your products. (They require little training). Customers know your products and your company. Suppliers know your company and your products & are familiar with the market & competitor.

The Internet Recruits may come through the company’s own website , such as Monster.com Educational institutions

Primarily used when recruiting inexperienced people. Students are involved in the job search & this provides an efficient place to screen large number of available candidates. (zai el job fairs ely btkon fe gam3at )

Advertisements

Newspapers & trade journals are the most widely used media. Produces the greatest number of candidates, but the average quality is sometimes lower. (hya f3ln btwsl le a3la reach mn el nas , 3ashan mo3zm el nas btdwer 3la sho8l , fe el mohtm w ely 3tel beb3t , fe 3ashan kda sa3t msh btkon nas qualified ely btgy mnha)

Employment agencies

The agency is often more costly than other methods, but it will do a large part of the initial screening. It attracts a better quality of sales recruit. (zai wasla w ecoo ely besh8lo call center lel vodafon)

Part-time workers

These workers are easy to contact, readily available, and can work flexible hours. This is a good source for in-home selling.

Voluntary applicants

Excellent source such that applicants are interested in your firm and probably possess a high degree of self-confidence, self-reliance & initiative. (a7sn nas bt7b tsht8l w tt3lm mn 8er fols 3ashan kda be7bo gdn ysh9lo goz2 voluntary work , zai IBM fe msr)

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Determine the number of new reps needed if 5 new territories will be established,

2 territories will be eliminated, 2 promotions are expected, 4 retirements are

expected and 1 termination for a sales rep.

Solution

Total new reps needed= New territories (-) Eliminated/ Combined territories (+) Promotions (+) Retirements (+) Resignations Total new reps needed = 5(new) – 2 (eliminated) + 2 (promotions) + 4 (retirements) + 1

(termination) = 10 reps

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(1) (Exam 2010) : If the market is classified into Class A and Class B, where class A includes 400 accounts while class B includes 600 accounts. Class A requires 20 calls per year, while Class B requires 10 calls per year. The sales reps do 5 calls/day, sells 5 days in a week, and work 50 weeks in the year. Determine the number of reps needed

Solution Number of reps needed = Total Workload in market Workload one rep can handle Market Workload=

Customer class No. of accounts Calls per year Total Calls

A 400 20 8,000

B 600 10 6,000

14,000

To calculate one rep's workload - One rep’s workload = calls/day X selling days/week X working weeks/year

= 5 X 5 X 50 = 1,250

- Number of reps needed = 14,000 = 11.2 = 12 reps. 1,250

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(2) (Exam 2009):

Customer class No. of accounts Monthly calls needed

A 100 10

B 200 5

C 500 2

Salespeople work 8 hrs. /day, 5 days a week, 50 weeks per year and typical sales call takes 2 hrs. Calculate the number of salespeople needed.

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Solution Market workload:

Customer class No. of accounts Calls per year Total Calls

A 100 (10*12) = 120 12,000

B 200 (5*12) = 60 12,000

C 500 (2*12) = 24 12,000

36,000

One rep’s workload = calls/day X selling days/week X working weeks/year Rep’s workload = (8/2) X 5 X 50 = 1000 Total sales workload Number of reps needed = Total Workload in market Workload one rep can handle = 36,000 / 1000 = 36 reps.

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(3) From file Dr Esraa: The annual working days are 350; the average sales rep makes 6 calls/day.

- Total number of customers is 1600, classified into 200 large, 400 medium & 1000 small.

- The frequency of calling on customers is twice a month, once a month & once every 2 months for the three groups respectively.

- The company will expand into 5 territories, 3 reps will be promoted to sales supervisors, 5 will retire & 4 will resign.

How many sales reps are needed?

Solution Market workload:

Customer class No. of accounts Calls per year Total Calls

Large 200 (2*12) = 24 4800

Medium 400 (1*12) = 12 4800

Small 1000 (12/2) = 6 6000

15,600

Rep’s workload = 6 X 350 = 2,100 Total sales workload = 15,600 / 2,100 = 7.4 = 8 reps Number of new reps needed = 5 (new) + 3 (promoted) + 5 (retire) + 4 (resign) = 17 reps Total number of reps needed = 8+17=25 reps