Transcript Document

Chapter 17

Managing the Sales Force

©2003 Prentice Hall, Inc.

PowerPoint by Karen E. James Louisiana State University - Shreveport To accompany

A Framework for Marketing Management,

2 nd Edition Slide 0 in Chapter 17

Objectives

Review the types of decisions firms face in designing a sales force.

Learn how companies recruit, select, train, supervise, motivate, and evaluate a sales force.

Understand how salespeople improve their selling, negotiation, and relationship-building skills.

©2003 Prentice Hall, Inc.

To accompany

A Framework for Marketing Management,

2 nd Edition Slide 1 in Chapter 17

Designing the Sales Force Types of Sales Representatives

  

Deliverer Order taker Missionary

Technician

Demand creator

Solution vendor

©2003 Prentice Hall, Inc.

To accompany

A Framework for Marketing Management,

2 nd Edition Slide 2 in Chapter 17

Designing the Sales Force

 

Steps in Process

Objectives and strategy

Structure Sales force size

Compensation

©2003 Prentice Hall, Inc.

  

Objectives

Sales volume and profitability

Customer satisfaction

Strategy

Account manager

Type of sales force

Direct (company) or contractual

To accompany

A Framework for Marketing Management,

2 nd Edition Slide 3 in Chapter 17

Designing the Sales Force

Steps in Process

Objectives and strategy

Structure

Sales force size

Compensation

©2003 Prentice Hall, Inc.

Types of sales force structures:

Territorial

Product

Market

Complex

Key accounts

To accompany

A Framework for Marketing Management,

2 nd Edition Slide 4 in Chapter 17

Designing the Sales Force

 

Steps in Process

Objectives and strategy

Structure Sales force size

Compensation

©2003 Prentice Hall, Inc.

Workload approach:

Group customers by volume

Establish call frequencies

Calculate total yearly sales call workload

Calculate average number of calls/year

Calculate number of sales representatives

To accompany

A Framework for Marketing Management,

2 nd Edition Slide 5 in Chapter 17

Designing the Sales Force

 

Steps in Process

Objectives and strategy

Structure Sales force size

Compensation

©2003 Prentice Hall, Inc.

 

Four components of compensation:

– – – –

Fixed amount Variable amount Expense allowances Benefits

Compensation plans

– – –

Straight salary Straight commission Combination

To accompany

A Framework for Marketing Management,

2 nd Edition Slide 6 in Chapter 17

Managing the Sales Force Steps in Sales Force Management

Recruitment and selection

Training

Supervising

Motivating

Evaluating

©2003 Prentice Hall, Inc.

To accompany

A Framework for Marketing Management,

2 nd Edition Slide 7 in Chapter 17

Managing the Sales Force

Recruiting begins with the development of selection criteria

– –

Customer desired traits Traits common to successful sales representatives

Selection criteria are publicized

Various selection procedures are used to evaluate candidates

©2003 Prentice Hall, Inc.

To accompany

A Framework for Marketing Management,

2 nd Edition Slide 8 in Chapter 17

Managing the Sales Force

Training topics include:

– – – – –

Company background, products Customer characteristics Competitors’ products Sales presentation techniques Procedures and responsibilities

Training time needed and training method used vary with task complexity

©2003 Prentice Hall, Inc.

To accompany

A Framework for Marketing Management,

2 nd Edition Slide 9 in Chapter 17

Managing the Sales Force

Successful firms have procedures to aid in evaluating the sales force:

– – –

Norms for customer calls Norms for prospect calls Using sales time efficiently

Tools include configurator software, time-and-duty analysis, greater emphasis on phone and Internet usage, greater reliance on inside sales force

©2003 Prentice Hall, Inc.

To accompany

A Framework for Marketing Management,

2 nd Edition Slide 10 in Chapter 17

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 motivation tools

Supplementary motivators

©2003 Prentice Hall, Inc.

To accompany

A Framework for Marketing Management,

2 nd Edition Slide 11 in Chapter 17

Managing the Sales Force

Evaluating the Sales Force

Sources of information

Sales or call reports, personal observation, customer letters and complaints, customer surveys, other representatives

Formal evaluation

Performance comparisons

Knowledge assessments

©2003 Prentice Hall, Inc.

To accompany

A Framework for Marketing Management,

2 nd Edition Slide 12 in Chapter 17

Personal Selling Principles

  

Major Aspects

Sales professionalism Negotiation Relationship marketing

©2003 Prentice Hall, Inc.

  

Sales-oriented approach

Stresses high pressure techniques

Customer-oriented approach

Stresses customer problem solving

Steps in industrial selling process

To accompany

A Framework for Marketing Management,

2 nd Edition Slide 13 in Chapter 17

Personal Selling Principles Steps in Industrial Selling Process

Prospecting and qualifying

  

Preapproach Approach Presentation and demonstration

Overcoming objections

Closing

Follow-up and maintenance (servicing)

©2003 Prentice Hall, Inc.

To accompany

A Framework for Marketing Management,

2 nd Edition Slide 14 in Chapter 17

Personal Selling Principles

Major Aspects

Sales professionalism

Negotiation

Relationship marketing

©2003 Prentice Hall, Inc.

Reps need skills for effective negotiation

Negotiation is useful when certain factors characterize the sale

Negotiation strategy

– –

Principled BATNA

To accompany

A Framework for Marketing Management,

2 nd Edition Slide 15 in Chapter 17

Personal Selling Principles

  

Major Aspects

Sales professionalism Negotiation Relationship marketing

©2003 Prentice Hall, Inc.

Building long-term suppler-customer relationships has grown in importance

Companies are shifting focus away from transaction marketing to

relationship

marketing

To accompany

A Framework for Marketing Management,

2 nd Edition Slide 16 in Chapter 17