Girish JadhwaniMBA II

Development and Development and management of management of Sales ForceSales Force

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.

Developing the Sales Force

• Sales engineer• Executive

salesman• Missionary

salesman

• Industrial supplier salesman

• Inside salesman

Types of Sales Representatives

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

Developing the Sales Force

Steps in Process

• Objectives and strategy

• Structure• Sales force size• Compensation

• Types of sales force structures:– Territorial– Product– Market– Complex

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

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

Managing the Sales Force

• Recruitment and selection

• Training

• Supervising • Motivating• Evaluating

Steps in Sales Force Management

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

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

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

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

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