17-1See "Bulding Quality Partnerships."

99THTH EDITION EDITION

CHAPTER 17CHAPTER 17MANAGEMENT MANAGEMENT OF THE OF THE SALES FORCESALES FORCE

Manning and Reece

See "Bulding Quality Partnerships." 17-2

LEARNING OBJECTIVES Describe the functions of a sales manager

List and discuss the qualities of effective sales managers

Discuss recruitment and selection of salespeople

Describe effective orientation, training, and motivation practices

Develop understanding of selected compensation plans

List and discuss sales performance evaluation criteria

See "Bulding Quality Partnerships." 17-3

SALES MANAGER DUTIES

”The sales manager typically performs the functions of recruiting, training, organizing, and supervising the sales force.”

See "Bulding Quality Partnerships." 17-4

SALES MANAGEMENT FUNCTIONS

STRUCTURESTRUCTURE

CONSIDERATION

PEAK PERFORMANCE COACHPEAK PERFORMANCE COACH

SITUATIONAL LEADERSHIPSITUATIONAL LEADERSHIPSITUATIONAL LEADERSHIPSITUATIONAL LEADERSHIP

See "Bulding Quality Partnerships." 17-5

STRUCTURE

1.1. Regular planningRegular planning

2.2. Expectations clearly Expectations clearly communicated communicated

3.3. Prompt, firm decisionsPrompt, firm decisions

4.4. Regular performance Regular performance appraisalsappraisals

See "Bulding Quality Partnerships." 17-6

CONSIDERATION

1.1. Regular and effective Regular and effective communicationcommunication

2.2. Each salesperson Each salesperson treated as individual treated as individual

3.3. Reward good Reward good performance oftenperformance often

See "Bulding Quality Partnerships." 17-7

SITUATIONAL LEADERSHIP

Leader’s style should Leader’s style should match situationmatch situation

Develop strong ethics Develop strong ethics and characterand character

See "Bulding Quality Partnerships." 17-8

PEAK PERFORMANCE COACHING

1.1. Help salespeople Help salespeople recognize need to recognize need to

improve improve 2.2. Help develop their Help develop their

commitment to commitment to improveimprove

3.3. Explore solutions Explore solutions

See "Bulding Quality Partnerships." 17-9

RECRUITMENT AND SELECTION

Determine job requirements or Determine job requirements or specifications specifications

Search for applicantsSearch for applicants

Select best qualified applicants Select best qualified applicants behavior behavior

SET SPECS SEARCH SELECT

See "Bulding Quality Partnerships." 17-10

DETERMINE JOB REQUIREMENTS

1.1. New or established New or established territoryterritory

2.2. New or well-established New or well-established productproduct

3.3. Work independently or Work independently or closely with managerclosely with manager

4.4. Likelihood of travel, Likelihood of travel, transfer, promotiontransfer, promotion

1.1. New or established New or established territoryterritory

2.2. New or well-established New or well-established productproduct

3.3. Work independently or Work independently or closely with managerclosely with manager

4.4. Likelihood of travel, Likelihood of travel, transfer, promotiontransfer, promotion

See "Bulding Quality Partnerships." 17-11

SEARCHING FOR APPLICANTS

1.1. Within company Within company

2.2. Colleges and universities Colleges and universities

3.3. Trade and consumer Trade and consumer advertising advertising

4.4. Employment agenciesEmployment agencies

5.5. Internet services/searchesInternet services/searches

1.1. Within company Within company

2.2. Colleges and universities Colleges and universities

3.3. Trade and consumer Trade and consumer advertising advertising

4.4. Employment agenciesEmployment agencies

5.5. Internet services/searchesInternet services/searches

See "Bulding Quality Partnerships." 17-12

SELECTING APPLICANTS

SELECTION CRITERIA SELECTION CRITERIA --High motivation--High motivation--Reliability, check --Reliability, check

referencesreferences--Performance on some --Performance on some

activityactivity--Knowledge of business, --Knowledge of business,

market, consumersmarket, consumers

SELECTION CRITERIA SELECTION CRITERIA --High motivation--High motivation--Reliability, check --Reliability, check

referencesreferences--Performance on some --Performance on some

activityactivity--Knowledge of business, --Knowledge of business,

market, consumersmarket, consumers

See "Selling in Action" Chapter 17. 17-13

INTERVIEW APPLICATION: SELL YOURSELF

What would you tell an interviewer What would you tell an interviewer about…about…-- Yourself?-- Your knowledge of sales process? -- Greatest strengths and weaknesses?-- Most boring job?-- What was your biggest contribution at your last job?-- Why should he/she hire you?

See "Bulding Quality Partnerships." 17-14

ORIENTATION AND TRAINING

Provide orientation before Provide orientation before person begins work person begins work

Initiate training program Initiate training program …tasks, execution, role …tasks, execution, role

Often 12-18 month period Often 12-18 month period

Provide orientation before Provide orientation before person begins work person begins work

Initiate training program Initiate training program …tasks, execution, role …tasks, execution, role

Often 12-18 month period Often 12-18 month period

See "Bulding Quality Partnerships." 17-15

SELLING POWER

See "Bulding Quality Partnerships." 17-16

DIMENSIONS OF FORMAL TRAINING PROGRAM

1.1. Knowledge of product line, Knowledge of product line, territory, business territory, business

trends, trends, firm’s marketing firm’s marketing strategystrategy

2.2. Attitudes toward the Attitudes toward the company, products, company, products, customerscustomers

3.3. Skills—applying selling Skills—applying selling principles and practicesprinciples and practices

1.1. Knowledge of product line, Knowledge of product line, territory, business territory, business

trends, trends, firm’s marketing firm’s marketing strategystrategy

2.2. Attitudes toward the Attitudes toward the company, products, company, products, customerscustomers

3.3. Skills—applying selling Skills—applying selling principles and practicesprinciples and practices

See "Bulding Quality Partnerships." 17-17

SALES FORCE MOTIVATION

INTERNAL MOTIVATION INTERNAL MOTIVATION --Achievement, challenge, growth, --Achievement, challenge, growth, advancementadvancement

--Internal motivators often have long-term --Internal motivators often have long-term positive impactpositive impact

EXTERNAL MOTIVATIONEXTERNAL MOTIVATION-- -- Sales contests, incentive plans, cash Sales contests, incentive plans, cash

bonuses bonuses

-- Actions taken by firm to reward sales -- Actions taken by firm to reward sales performance performance

Show me the money! 17-18

COMPENSATION PLANS

Compensation practices varyCompensation practices vary

Usually combination of Usually combination of

----Direct compensationDirect compensation, salary and , salary and commissionscommissions

----Indirect compensationIndirect compensation, pension, , pension, insurance plans, vacationsinsurance plans, vacations

Show me the money! 17-19

COMPENSATION PLAN GUIDELINES

Define marketing objectivesDefine marketing objectives

Field test compensation planField test compensation plan

Explain plan to sales staffExplain plan to sales staff

Change plan as conditions warrantChange plan as conditions warrant

Show me the money! 17-20

FIVE COMPENSATION PLANS

Straight commissionStraight commission Commission plan with Commission plan with salary or draw provisionsalary or draw provision Commissions with draw or Commissions with draw or

salary plus bonussalary plus bonus Fixed salary plus bonusFixed salary plus bonus Straight salaryStraight salary

Show me the productivity! 17-21

AWARD/INCENTIVE PLAN BASES

Specific product movementSpecific product movement

Percentage sales increasePercentage sales increase

New accounts gainedNew accounts gained

Increased activity…number Increased activity…number of new prospect calls of new prospect calls

See "Bulding Quality Partnerships." 17-22

COMPENSATION—QUANTITATIVE CRITERIA Sales volume in Sales volume in

dollarsdollars

Sales compared Sales compared with last with last

yearyear

Volume by Volume by product or lineproduct or line

Number of new Number of new accountsaccounts

Amount of new Amount of new account account

salessales

Net profit on Net profit on each each accountaccount

Number of Number of customer calls customer calls made made

Last slide Chapter 17. 17-23

COMPENSATION—QUALITATIVE CRITERIA

AttitudeAttitude

Product knowledgeProduct knowledge

Communication skillsCommunication skills

Personal experience Personal experience

Customer goodwill generatedCustomer goodwill generated

Selling skillsSelling skills

InitiativeInitiative

AttitudeAttitude

Product knowledgeProduct knowledge

Communication skillsCommunication skills

Personal experience Personal experience

Customer goodwill generatedCustomer goodwill generated

Selling skillsSelling skills

InitiativeInitiative