5. Staffing the Salesforce

8/10/2019 5. Staffing the Salesforce

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Sem-3 Sales Management

STAFFING THE SALES FORCE

Size of Sales force :1. Potential Customers & their sales potential

2. Decide time per call & call frequency

3. Calculate the total workload4. Decide total work time available

5. Divide work time in various activities

6. Calculate total number of sales force

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Sales Potential / Breakdown Method :N = S/P X (1 + T)

where N = No. of Salesperson needed

S = Annual Sales forecastP = Average Estimated Productivity

T = Annual sales force turnover (%)

Incremental Method :Based on Marginal Analysis Theory

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Sales force staffing Process (Steps) :1. Planning the recruitment & Selection Process

2. Receiving sufficient no. of applications

3. Selecting most suitable applicants4. Hiring selected candidates

5. Socialisation and Assimilation

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Planning the recruitment & Selection Process1. Establish responsibility2. Decide the number of Sales People needed

3. Outline type of Sales person needed

Job Analysis Job Description

Job qualification / specification

Receiving Applications

1. Identify sources of Sales recruits2. Evaluate the sources of recruits

3. Contacting candidates through selected source

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Typical Sources Internal Sources

1. Current Employee Referral

2. Current Employees3. Promotions and Transfers

External Sources

1. Advertisements 4. Employment Agency2. Internet 5. Other Companies

3. Educational Institute 6. Job fairs

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Selecting Sales Person1. Screening resumes

2. Application form

3. Initial Interview4. Intensive Interview

5. Testing (for junior positions)

6. Reference check

7. Physical Examination

8. Selection Decision

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Hiring Sales Person1. Company makes the job offer

2. Acceptance of Job Offer by applicant

Socialisation and Assimilation1. Process through which new recruit learns about

values of organisation

2. Helps increase job satisfaction

3. Reduces turnover of people

4. Gives positive image of company

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8/27Sem-3 Sales Management

TRAINING THE SALES FORCE

Sales Training Process1. Assess training needs

2. Design / Identify the sales training program

3. Execute the Sales training program4. Evaluation and Reinforcement of Sales

Training Program

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Methods used for assessing needs1. Sales Managers Observation

2. Sales force Survey

3. Customer Survey4. Performance Testing

5. Job Description

6. Sales force Audit

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Designing of Sales Training Program1. Aim (Why ?)

2. Content (What ?)

3. Methods (How ?)4. Execution (Who, When, Where, What ?)

5. Evaluation

Aim Contents Methods Execution Evaluation

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1. Aim / Objectives of Sales Training Increase Sales Productivity

Increase Sales, Profit or both

Lower sales force turnover rate Improve customer relations

Introduce new products, markets and

promotional programs

Create positive attitudes and improve morale

Improve teamwork & co-operative efforts

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2. Contents of Sales Training Company Knowledge

Product Knowledge

Sales technique Customer Knowledge

Competitive Knowledge

Relationship Building

Sales Technique would include CRM,

Negotiation Skills. Presentation Skills etc

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3. Method of Sales Training(a) Class room training

Lecture

Demonstration Group Discussions

(b) Behavioral Training

Role play

Case studies

Simulation games

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3. Method of Sales Training(c) On the Job training

Mentoring

Job rotation(d) On Line Training

Electronic performance support system

Interactive multimedia training

Distance Learning

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3. Method of Sales Training(e) Self Study

Audio Cassettes

Manuals Books

CDROM

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4. Execution of Sales TrainingIt involves 5 important decisions

Who will be trained ?

Who will conduct the training ? When should the training take place ?

Where should the training be done ?

What will be the budgeted expenditure for

training ?

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4. Execution of Sales TrainingWhen should the training take place ?

New sales peoplebefore they get in market

Existing sales peopleduring lean period Intermediariesduring lean period

Sales Managersduring lean period

Where should the training be done ?

Centralised training

Decentralised training

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5. Evaluation of Sales TrainingEvaluation can be done in 4 major categories Reactions

Learning

Behaviour

Results

Reinforce Sales Training

Refresher training Coaching by senior sales people

Web-based or On line reinforce method

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MOTIVATING THE SALES FORCE

Motivating the Sales PersonMotivation (defn) :

The desire to spend efforts to fulfill a need

Motivation includes 3 dimensions Intensityit is the amount of physical & mental

effort spends on a specific task

Persistencedescribes how long the

salesperson continues to put forth effort

Directionsuggests the sales persons choice

of direction of effort among various tasks

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Importance of Motivation 1015% of Salespeople are self motivated

These are ambitious and self starters

Sales Managers find the task of motivatingsalespeople difficult & important because:

Changes in Marketing environment

Conflicting company objectives

Unique nature of sales job

Separate motivational package

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Motivation Theories for Salespeople1. Maslows Hierarchy of Need Theory

Physiological Needsfood, shelter, clothing

Safety NeedsJob / Income security Social Needsfriendship, belongingness

Esteem Needsstatus, recognition, reputation

Self actualisationself fulfillment, self

development

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Motivation Theories for Salespeople2. Hertzbergs dual factor theory

Hygiene factorsworking conditions, security,

supervision, interpersonal relationships, salary,

company policies etc

Motivational factorsrecognition, responsibility,

achievement, challenge, opportunities for

growth, etc

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Motivation Theories for Salespeople3. Vrooms expectancy theory of motivation

ExpectancyIt refers to perception of

relationship between efforts and performance

InstrumentalityIt refers to perception of

relationship between performance and reward

ValenceThe concept describes the value

placed on a particular reward by a salesperson

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Motivation Theories for Salespeople4. Churchill, Ford & Walker theory of motivation

It suggests higher sales persons motivation,

greater the efforts, leading to superior

performance.

This increased performance will lead to greater

rewards, which will lead to higher job

satisfaction.Increased satisfaction will make motivation still

higher.

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Motivational Tools1. Financial Rewards / Compensation :

Financial Compensation

Salary Commission

Bonus payment

Fringe benefits

Combination of above

Sales Contest

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Motivational Tools2. Non - Financial Rewards / Compensation :

Promotion

Sense of accomplishment Recognition

Job security

Sales training program

Job enrichment

Sales Meetings

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Documents

5. Staffing the Salesforce