17-1 Management of the Sales Force Selling Today 10 th Edition CHAPTER Manning and Reece 17.

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Management of the Sales Force

Selling TodaySelling Today10th Edition

CH

AP

TE

R Manning and Reece

17

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Sales ManagementSales Management

• The process of planning, implementing, and controlling the personal selling function

• The sales manager plans, recruits, trains, budgets, develops compensation plans, and assesses sales force productivity

• Successful supervisory management personnel have certain behaviors in common

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Peak Performance CoachingPeak Performance Coaching

• Help salespeople recognize need to improve

• Help develop their commitment to improve

• Document problems and explore solutions

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Recruitment and SelectionRecruitment and Selection

• Determine job requirements

• Search for applicants

• Select best-qualifiedapplicant

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Determine Job RequirementsDetermine Job Requirements

• New or established territory

• New or well-established product

• Work independently or closely with manager

• Likelihood of travel, transfer, promotion

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Searching for ApplicantsSearching for Applicants

• Within company

• Colleges and universities

• Trade and consumer advertising

• Employment agencies/listings

• Internet services/searches

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Selecting ApplicantsSelecting Applicants

Selection criteria:

• Interest, enthusiasm, high motivation

• Integrity

• Knowledge of business, market, consumers

• Customer orientation/relationships

• Psychological tests (used in conjunction)

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In Class Activity: Interview Application (P437 RP)

In Class Activity: Interview Application (P437 RP)

• What would you tell an interviewer about . . .

• Yourself?

• Your knowledge of the sales process?

• Greatest strengths and weaknesses?

• Most boring job/how you handled it?

• What was your biggest contribution at your last job?

• Why should he/she hire you?

• See Selling in Action

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Orientation and TrainingOrientation and Training

• Provide thorough orientation before person begins work

• Initiate training program to help person achieve success . . .tasks, execution, role

• Size of firm shouldnot dictate scopeof training

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Dimensions of Formal Training Program

Dimensions of Formal Training Program

• Knowledge of product line, territory, business trends, firm’s marketing strategy

• Attitudes toward the company, products, customers

• Skills: applying selling principles and practices

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Sales Force MotivationSales Force Motivation

• Internal motivation

• Intrinsic rewards: achievement, challenge, advancement, growth, enjoyment of work

• Often have long-term positive impacts

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Sales Force MotivationSales Force Motivation

• External motivation

• Actions taken by firm to reward sales performance

• Sales contests,incentive plans,cash bonuses

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Effective External RewardsEffective External Rewards

• Design programs that focus on several important aspects of the salesperson’s job

• Evaluate incentiveprograms often

• Avoid unrealisticgoals

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Compensation PlansCompensation Plans

• Compensation practices vary

• Usually combination of:

• Direct compensation: salary and commissions

• Indirect compensation: pension, insurance plans, vacations

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Five Compensation PlansFive Compensation Plans

• Straight commission

• Commission plan with guaranteed salary or draw provision

• Commissions with draw or salary plus bonus

• Fixed salary plus bonus

• Straight salary

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Discussion QuestionsDiscussion Questions

• What are the pros and cons of commission-based compensation?

• What are the pros and cons of salary-based compensation?

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Assessing Productivity: Quantitative Criteria

Assessing Productivity: 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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Assessing Productivity: Qualitative Criteria

Assessing Productivity: Qualitative Criteria

• Attitude

• Product knowledge

• Communication skills

• Personal experience

• Customer goodwill generated

• Selling skills

• Initiative

• Team collaboration