Management of the Sales Force

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Management of the Sales Force
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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

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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

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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

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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
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Basic Leadership Styles
17.1
FIGURE
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Structure

• Evidence includes
• Regular planning
• Expectations clearly communicated
• Prompt, firm decisions
• Regular performance appraisals

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Consideration

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

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Situational Leadership

• Leaders style should match situation
• Develop strong ethics and character

For more on Situational Leadership,
see12manage.com
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Peak Performance Coaching

• Help salespeople recognize need to improve
• Help develop their commitment to improve
• Document problems and explore solutions

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Recruitment and Selection

• Determine job requirements
• Search for applicants
• Select best-qualifiedapplicant

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Determine Job Requirements

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

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Searching for Applicants

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

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Cydcor An Outsourced Sales Force
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CydcorCaseStudies
See the Website
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Selecting Applicants

• Selection criteria
• Interest, enthusiasm, high motivation
• Integrity
• Knowledge of business, market, consumers
• Customer orientation/relationships
• Psychological tests (used in conjunction)

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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

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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

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Selling Power
See their hiring/training products
atsellingpower.com
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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

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Sales Force Motivation

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

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Sales Force Motivation

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

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Effective External Rewards

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

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Compensation Plans

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

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Icelandics Incentive
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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

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Discussion Questions

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

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Award/Incentive Plan Bases

• Specific product movement
• Percentage sales increase
• New accounts established
• Increased activity

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Compensation Plan Guidelines

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

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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

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Assessing Productivity Qualitative Criteria

• Attitude
• Product knowledge
• Communication skills
• Personal experience
• Customer goodwill generated
• Selling skills
• Initiative
• Team collaboration