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Management of the Sales Force

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Leader's style should match situation. Develop strong ethics and character ... Most boring job/how you handled it? What was your biggest contribution at your last job? ... – PowerPoint PPT presentation

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Title: Management of the Sales Force


1
17
Management of the Sales Force
2
Learning Objectives
  • Describe the functions of a sales manager
  • List and discuss the qualities of an effective
    sales manager
  • Discuss recruitment and selection of salespeople
  • Describe effective orientation, training, and
    motivation practices
  • Develop an understanding of selected compensation
    plans
  • List and discuss criteria for evaluating sales
    performance

3
Leadership
  • The process of inspiring, influencing, and
    guiding employees to participate in a common
    effort
  • Involves a series of skills that can be acquired
    through study and practice
  • People who rise to the position of sales manager
    must understand the difference between leadership
    and management

4
Sales Management
  • The process of planning, implementing, and
    controlling the personal selling function
  • The sales manager plans, recruits, trains,
    budgets, develops compensation plans, and
    assesses sales force productivity
  • Successful supervisory management personnel have
    certain behaviors in common

5
Effective Leaders
  • Demonstrate the following
  • Structure
  • Consideration
  • Situational leadership
  • Test of character
  • Coaching for peakperformance

Samuel Palmisano, CEO of IBM
Lindsay Levin,Chairman of Whites Limited
6
Basic Leadership Styles
17.1
FIGURE
7
Structure
  • Evidence includes
  • Regular planning
  • Expectations clearly communicated
  • Prompt, firm decisions
  • Regular performance appraisals

8
Consideration
  • Evidence includes
  • Regular and effective communication
  • Each salesperson treated as individual
  • Reward good performance often

9
Situational Leadership
  • Leaders style should match situation
  • Develop strong ethics and character

For more on Situational Leadership,
see12manage.com
10
Peak Performance Coaching
  • Help salespeople recognize need to improve
  • Help develop their commitment to improve
  • Document problems and explore solutions

11
Recruitment and Selection
  • Determine job requirements
  • Search for applicants
  • Select best-qualifiedapplicant

12
Determine Job Requirements
  • New or established territory
  • New or well-established product
  • Work independently or closely with manager
  • Likelihood of travel, transfer, promotion

13
Searching for Applicants
  • Within company
  • Colleges and universities
  • Trade and consumer advertising
  • Employment agencies/listings
  • Internet services/searches

14
Cydcor An Outsourced Sales Force
15
CydcorCaseStudies
See the Website
16
Selecting Applicants
  • Selection criteria
  • Interest, enthusiasm, high motivation
  • Integrity
  • Knowledge of business, market, consumers
  • Customer orientation/relationships
  • Psychological tests (used in conjunction)

17
Interview Application
  • What would you tell an interviewer about . . .
  • Yourself?
  • Your knowledge of the sales process?
  • Greatest strengths and weaknesses?
  • Most boring job/how you handled it?
  • What was your biggest contribution at your last
    job?
  • Why should he/she hire you?
  • See Selling in Action

18
Orientation and Training
  • Provide thorough orientation before person begins
    work
  • Initiate training program to help person achieve
    success . . .tasks, execution, role
  • Size of firm shouldnot dictate scopeof training

19
Selling Power
See their hiring/training products
atsellingpower.com
20
Dimensions of Formal Training Program
  • Knowledge of product line, territory, business
    trends, firms marketing strategy
  • Attitudes toward the company, products, customers
  • Skills applying selling principles and practices

21
Sales Force Motivation
  • Internal motivation
  • Intrinsic rewards achievement, challenge,
    advancement, growth, enjoyment of work
  • Often have long-term positive impacts

22
Sales Force Motivation
  • External motivation
  • Actions taken by firm to reward sales performance
  • Sales contests,incentive plans,cash bonuses

23
Effective External Rewards
  • Design programs that focus on several important
    aspects of the salespersons job
  • Evaluate incentiveprograms often
  • Avoid unrealisticgoals

24
Compensation Plans
  • Compensation practices vary
  • Usually combination of
  • Direct compensation salary and commissions
  • Indirect compensation pension, insurance plans,
    vacations

25
Icelandics Incentive
26
Five Compensation Plans
  • Straight commission
  • Commission plan with guaranteed salary or draw
    provision
  • Commissions with draw or salary plus bonus
  • Fixed salary plus bonus
  • Straight salary

27
Discussion Questions
  • What are the pros and cons of commission-based
    compensation?
  • What are the pros and cons of salary-based
    compensation?

28
Award/Incentive Plan Bases
  • Specific product movement
  • Percentage sales increase
  • New accounts established
  • Increased activity

29
Compensation Plan Guidelines
  • Define marketing objectivesplan complements
    objectives
  • Field test compensation plan
  • Explain plan to sales staff
  • Change plan as conditions warrant

30
Assessing Productivity Quantitative Criteria
  • Sales volume in dollars
  • Sales compared with last year
  • Volume by product or line
  • Number of new accounts
  • Amount of new account sales
  • Net profit on each account
  • Number of customer calls made

31
Assessing Productivity Qualitative Criteria
  • Attitude
  • Product knowledge
  • Communication skills
  • Personal experience
  • Customer goodwill generated
  • Selling skills
  • Initiative
  • Team collaboration
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