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
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Sales volume and profitability
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Customer satisfaction
Strategy
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Account manager
Type of sales force
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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:
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Territorial
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Product
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Market
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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:
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Group customers by volume
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Establish call frequencies
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Calculate total yearly sales call workload
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Calculate average number of calls/year
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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
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Most valued rewards
Pay, promotion, personal growth, sense of accomplishment
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Least valued rewards
Liking and respect, security, recognition
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Sales quotas as motivation tools
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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
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Sources of information
Sales or call reports, personal observation, customer letters and complaints, customer surveys, other representatives
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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
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Stresses high pressure techniques
Customer-oriented approach
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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