Sales Force Management In English Pharmaceutical Industries Lahre

“SALES FORCE MANAGEMENT”

Company:

“English Pharmaceutical Industries Lahore”

Presented By:Presented To:

Wajid Ali 3335 Mr. Aamir Shehzad

Nabita Ishtiaq 3353

Rana Tassadaq 3316

INTRODUCTION

The history of salesmanship is as old as the human civilization itself. R.L .Stevenson had once famously remarked,

“Everybody is surviving on selling something to someone.”

The salespeople in the past were not held in high

esteem by the society.

The Roman equivalent of the word salesperson is

cheater.

Today, however, an organization relies heavily on

its salesperson, that is, its sales force.

This is so because of the increasing importance of

selling.

Objective of the Project

To understand the concepts of Sales

Organization.

Managing and staffing of the Sales Force.

Performance management and Reward

system used.

Hiring & Motivation Process of Sales Force.

Training system of the Sales force in an

Organization.

HIRING OF SALES PERSONNEL

Every company aims at recruiting the right person for the right job.

The greatest challenge faced by organizations today is to be able to recruit the best talent and to be able to utilize that talent to achieve organizational objectives.

Recruitment and hiring the right people is as important in a sales organization as it is in any other organization.

Hiring, contrary to the popular perception is an ongoing process and not confined to the formative stages of the organization.

Several Stages of Hiring

Sourcing the candidates – sales managers try to develop a pool of applicants by attracting candidates from various sources for filling the sales positions in their organizations.

Screening the candidates – the curriculum vitae of the candidates serve as the first screening tool in most of the organizations.

Selection test – tests serve as the selection tool to assess a potential employee’s skills and abilities.

Personality tests

Honesty tests

CONT’D

Psychometric tests – these are used to “look into the mind” of the candidates.

Background checks – here the purpose to screen out undeserving and undesirable candidates.

Personal Interview – in many organizations, a potential employee is called for a personal interview only after he or she clears the background check.

Physical Examination

Making the Employment Offer – the last stage in the selection process involves making the employment offer to the candidate.

HIRING AT“English Pharmaceutical

Industries”

Now, let us take recruitment and selection at English Pharmaceutical Industries. The sources which it uses for the purpose of recruiting the sales force are:

Employment agencies

Internet

Reference from Current Sales People

Advertisement in Newspapers

Campus Placements

Internal Promotions/Transfers

TRAINING

The training provided should be based on the need assessment of the salesperson. However, very few organizations take this trouble. Most of the organizations design a formal and common training for all its new recruits.

The types of training that the companies provide can be listed as,

Initial Sales training

Follow-up or Refresher Training

Training by the manufacturer to the Distributor’s

Sales Force

Training by the Manufacturer to the Customers

Components of Sales Training Programs

Designing the Sales Training Program

Implementing the program

Evaluate the Training program

It is important to note here that several organizations, these days, have been developing competency models which are used for not only the recruitment procedure but also for the purpose of designing training and development programs.

The stress is on identifying those competencies in which they are lacking and subsequently a training program is recommended for them.

Training & Development at“English Pharmaceutical

Industries”The recruits are given an initial classroom training of two weeks. Here the focus areas are –

Product KnowledgeMarketing and Selling SkillsPersonality Development

The training has elements of both classroom and foot on street method to it.

The initial training is provided by some experienced sales people and also some doctors.

Doctors are employed in order to give the sales force a good understanding of the issues related to the drug.

Thereafter the trainees are sent to the field along with some existing sales people.

MOTIVATION

“Success is achieved and maintained by those who try and keep trying.”

(W Clement Stone)

The success of a sales organization depends on the ability and the style of functioning of the sales manager to motivate the sales staff to achieve organizational goals.

The importance of motivation is felt within and across the organization because the salespeople have to put in a lot of effort to realize sales in the market.

CONT’D

They get demotivated due to frequent rejections by the customers, lower esteem ascribed to the sales job, and customer complaints about non-compliance of the products and services.

The nature of job itself serves to weaken motivation levels.

Salespeople have to do the job of prospecting, presentations, and demonstration repeatedly which makes the job monotonous.

Also, their personal and domestic life suffers because of the job.

Sales manager needs to constantly motivate his employees and at the same time continue to be motivated himself.

English Pharmaceutical Industries pays a great attention on maintaining the motivation levels of its sales force.

This is a very important aspect of sales force management.

A research conducted by Hay Group found out that the cost of replacing a single pharmaceutical representative is well over one hundred thousand dollar.

This figure does not include the lost sales opportunities.

This is the reason the managers at English Pharmaceutical Industries try their very best to motivate their sales force by giving them certain benefits on accomplishment of stated goals.

MOTIVATION AT“English Pharmaceutical

Industries”

COMPENSATION & REWARD SYSTEM

Sales organizations design compensation plans with multiple objectives.

One of the key objectives is to attract quality salespeople.

If the company’s compensation and reward system is perceived to be equitable then it will not have much problem in attracting good salespeople.

Besides, it also helps in keeping the employees motivated.

This in turn helps in getting better performance out of the sales force and retaining them.

CONT’D

As such, the reward system should address the short-term as well as long-term issues of the salespeople.

While survival is the short-term issue of the salesperson, recognition and growth in the company are his long-term needs.

The compensation should be guarantee fair wage.

The pattern of remuneration should be such that it should reflect a stream of stable income flows for the salespeople.

Steps in Designing Compensation Plan

Determine Sales Force & Compensation

Objectives

Determine Major Compensation Issues

Implement Long-term & Short-term Compensation

Plan

Relate Rewards to performance

Measurement of Performance

Review and Revise (if needed) the compensation

plan

Also, the performance appraisal of the salespersons should be fair. Besides, emphasis must be laid on proper performance management system. Most of the organization mistake performance management for appraisal, which it is not.

REWARD SYSTEM AT“English Pharmaceutical

Industries”In English Pharmaceutical Industries the compensation to the medical representatives include;

Fixed salary

Field expense reimbursement in the form of

daily allowance

Travelling allowance and incentives based on

sales

It also provides fringe benefits like Contributory Provident Fund and soft loans.

In order to provide a target to the sales force the company takes into account mainly the previous year’s sales performance. Besides, industry growth is also factored while designing the target.

CONCLUSION The management policy at English

Pharmaceutical Industries is a function of various factors – environment, strategy adopted by the organization, organization’s learning curve, and sales manager’s own understanding of the environment and his tactical responses.

Organizations’ policy, especially those which are related to performance management and training and development are heavily influenced by organizations’ learning curve.

That is to say, organizations choose those policies which they deem to be addressing their need, based upon experience. New firms, obviously, do not have such advantage.

Yet, to overcome this, new firms hire outside consultants.

THAT’S ALL

Thank You