Sales Force Management

1
Sales Force Management

• Training Salespeople

YOU ARE THE PRODUCT
2
Ways To Annoy Consumers

• Americans biggest complaints about service
• - Staying home for delivery or salespeople
• who fail to show. (40)
• - Poorly informed salespeople.
  (37)
• - Salesclerks who are on the phone while
• waiting on you.
  (25)
• - Salesclerks who say,its not my department.
  (25)
• - Salespeople who talk down to you.
  (21)
• - Salesclerks who cant describe how a
• product works.
  (16)

WSJ 11/6/89 B1)
3
Marketplace Principle

• It costs five times as much to attract a new
  customer as it does to retain an existing one!

4
Training to become a Super-Salesperson

• STRATEGIES
• Knock on old doors
• Make it your obsession
• Choose little ponds
• Bring something new to each party
• Backpedal, remove objections gently
• Know your customers needs

5
Sales Force Management

• Compensating Salespeople

Straight salary or wage
Salary plus commission
Straight commission
Quota-bonus plan
Commission with draw
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Major Types of Sales ForceCompensation 1 of
3

• STRAIGHT SALARY
• Paying a specific amount per time period
• Most useful when compensating new salespersons,
  
• moving into new territories or customers,
  sales
• requiring many services from customers
• Salary remains the same until pay increase
• Provides security of income but less incentive
• Provides management increased control

7
Major Types of Sales ForceCompensation 2
of 3

• STRAIGHT COMMISSION
• Paying salespeople according to the amount of
• their sales in given time period
• Commission may be based on percentage of sales
• or on a sliding scale
• Requires highly aggressive selling and minimal
• non selling tasks
• Provides salespeople with maximum incentive but
  
• low financial security

8
Major Types of Sales Force Compensation 3
of 3

• COMBINATION
• Paying salespeople a fixed salary plus a
• commission or bonus based on sales volume
• Most popular compensation method
• Provides financial security and some incentive
• Can require that salesperson exceeds a certain
• sales level before earning a commission or
  bonus

9
Sales Force Management

• Motivating Salespeople

• Continuous
• Financial Compensation
• Non financial Needs

10
Sales Meetings
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Motivations For Starting A Business
SBA\SCORE Vs. Natl
Studies

• Independence/Flexibility . Autonomy (29)
• Personal Achievement .... Income (19)
• To Utilize Skills .. The Challenge
  (12)
• . . To Utilize
  Skills (7)

Source Score Survey Data 95-96
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Sales Force Management

• Evaluating and Controlling Sales Force
  Performance

• Required reports
• Measurement against sales standards
• Expense control
• Productivity
• New account development

• The Need for Information
• Call Reports
• Customer Feedback
• Invoices

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Marketplace Laws

• Served Market Area
• Type of Business
• Level of Competition
• Management Skill

80
20 Profit Loss
14
Sales force Ethical Issues

• Kickbacks, bribes and gifts
• Price discrimination
• Cheating on expense accounts
• Misrepresentation

15
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Business Ethics

• Moral Suspicion of Business People
• Business People Are Motivated By Greed
• Profit Motive is Misunderstood

17
Consumer Attitudes

• Most companies are so concerned about making a
  profit, they do not care about quality.- 70
  agree.
• 63 wanted to complain about a product last
  year.
• 96 of dissatisfied customers wont complain to
  the company, but 60-90 will switch store/brand.

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McDonalds Commandments

• - Our customers are the most important people in
  our business.
• - Customers are not interruption of our work -
  they are the purpose of it.
• - Our customers are not people to argue or match
  wits with.
• - Our customers have the right to expect an
  employee to present a neat and clean appearance.

19
Business Ethics

• Business students hope to
• cheat and prosper.
• Business-opportunity
• swindlers are literally stealing
• the American dream

20
Number of Small Business Complaints About
Promotions
(1,000s)