5 Managing the Sales Force
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Transcript of 5 Managing the Sales Force
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©2003 Prentice Hall, Inc.
Manag ing the
Sales Force
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©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.
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Designing the Sales Force
Deliverer
Order taker Missionary
Technician
Demand creator
Solution vendor
Types of Sales Representatives
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©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
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©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
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©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
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©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
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Managing the Sales Force
Recruitment
and selection
Training
Supervising
Motivating
Evaluating
Steps in Sales Force Management
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©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
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©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
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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
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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
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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
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©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
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Personal Selling Principles
Prospecting andqualifying
Preapproach
Approach
Presentation anddemonstration
Overcoming
objections
Closing
Follow-up and
maintenance
(servicing)
Steps in Industrial Selling Process
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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
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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