Chapter 17 Managing the Sales Force Power Point

Chapter 17 Managing the Sales Force Power. Point by Karen E. James Louisiana State University - Shreveport © 2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2 nd Edition 0

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 1

Designing the Sales Force Types of Sales Representatives § Deliverer § Technician § Order taker § Demand creator § Missionary § Solution vendor © 2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2 nd Edition 2

Designing the Sales Force Steps in Process § Objectives and strategy § Objectives – Sales volume and profitability – Customer satisfaction § Structure § Strategy § Sales force size § Type of sales force § Compensation © 2003 Prentice Hall, Inc. – Account manager – Direct (company) or contractual To accompany A Framework for Marketing Management, 2 nd Edition 3

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 4

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 5

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 6

Managing the Sales Force Steps in Sales Force Management § Recruitment and selection § Training © 2003 Prentice Hall, Inc. § Supervising § Motivating § Evaluating To accompany A Framework for Marketing Management, 2 nd Edition 7

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 8

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 9

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 l 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 10

Managing the Sales Force § Motivating the Sales Force – Most valued rewards l Pay, promotion, personal growth, sense of accomplishment – Least valued rewards l 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 11

Managing the Sales Force § Evaluating the Sales Force – Sources of information l Sales or call reports, personal observation, customer letters and complaints, customer surveys, other representatives – Formal evaluation l Performance comparisons l Knowledge assessments © 2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2 nd Edition 12

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 13

Personal Selling Principles Steps in Industrial Selling Process § Prospecting and qualifying § Overcoming objections § Preapproach § Closing § Approach § Follow-up and maintenance (servicing) § Presentation and demonstration © 2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2 nd Edition 14

Personal Selling Principles Major Aspects § Reps need skills for effective negotiation § Sales professionalism § Negotiation is useful when certain factors characterize the sale § Negotiation strategy § Relationship marketing © 2003 Prentice Hall, Inc. – Principled – BATNA To accompany A Framework for Marketing Management, 2 nd Edition 15

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 16