Manning and Reece

CHAPTER 17

MANAGEMENT OF THE SALES FORCE 9 TH EDITION

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LEARNING OBJECTIVES

Describe the functions of a sales manager List and discuss the qualities of effective sales managers Discuss recruitment and selection of salespeople Describe effective orientation, training, and motivation practices Develop understanding of selected compensation plans List and discuss sales performance evaluation criteria

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SALES MANAGER DUTIES

”The sales manager typically performs the functions of recruiting, training, organizing, and supervising the sales force.”

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SALES MANAGEMENT FUNCTIONS

STRUCTURE CONSIDERATION PEAK PERFORMANCE COACH SITUATIONAL LEADERSHIP

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STRUCTURE

1. Regular planning 2. Expectations clearly communicated 3. Prompt, firm decisions 4. Regular performance appraisals

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CONSIDERATION

1. Regular and effective communication 2. Each salesperson treated as individual 3. Reward good performance often

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SITUATIONAL LEADERSHIP

Leader’s style should match situation Develop strong ethics and character

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PEAK PERFORMANCE COACHING

1. Help salespeople recognize need to improve 2. Help develop their commitment to improve 3. Explore solutions

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RECRUITMENT AND SELECTION

Determine job requirements or specifications Search for applicants Select best qualified applicants behavior

SET SPECS SEARCH SELECT 17-9

DETERMINE JOB REQUIREMENTS

1. New or established territory 2. New or well-established product 3. Work independently or closely with manager 4. Likelihood of travel, transfer, promotion

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SEARCHING FOR APPLICANTS

1. Within company 2. Colleges and universities 3. Trade and consumer advertising 4. Employment agencies 5. Internet services/searches

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SELECTING APPLICANTS

SELECTION CRITERIA --High motivation --Reliability, check references --Performance on some activity --Knowledge of business, market, consumers

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INTERVIEW APPLICATION: SELL YOURSELF

What would you tell an interviewer about… -- Yourself?

-- Your knowledge of sales process? -- Greatest strengths and weaknesses?

-- Most boring job?

-- What was your biggest contribution at your last job?

-- Why should he/she hire you?

See "Selling in Action" Chapter 17.

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ORIENTATION AND TRAINING

Provide orientation before person begins work Initiate training program …tasks, execution, role Often 12-18 month period

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SELLING POWER 17-15

DIMENSIONS OF FORMAL TRAINING PROGRAM

1. Knowledge of product line, territory, business trends, firm’s marketing strategy 2. Attitudes toward the company, products, customers 3. Skills—applying selling principles and practices

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SALES FORCE MOTIVATION

INTERNAL MOTIVATION --Achievement, challenge, growth, advancement --Internal motivators often have long-term positive impact EXTERNAL MOTIVATION - Sales contests, incentive plans, cash bonuses -- Actions taken by firm to reward sales performance

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COMPENSATION PLANS

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

Show me the money!

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COMPENSATION PLAN GUIDELINES

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

Show me the money!

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FIVE COMPENSATION PLANS

Straight commission Commission plan with salary or draw provision Commissions with draw or salary plus bonus Fixed salary plus bonus Straight salary

Show me the money!

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AWARD/INCENTIVE PLAN BASES

Specific product movement Percentage sales increase New accounts gained Increased activity…number of new prospect calls

Show me the productivity!

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COMPENSATION—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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COMPENSATION—QUALITATIVE CRITERIA

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

Last slide Chapter 17.

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