Sales Force Planning Organising and Controlling

8/9/2019 Sales Force Planning Organising and Controlling

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Industrial Marketing

Sales ForcePlanning, Organizing and

controlling



SF

Selecting & recruiting sales force

1 Primary selection criteria: 1.1 Motivation

1.2 Human resources skills 1.3 Job knowledge 1.4 Individuals with good technical skills are better able to

identify buyers problem & Suggest solutions



SF

Primary methods of selecting

1. Personal Interview

2. Multiple & panel interviews

3. Patterned & Structured interview

4. Realistic Job Interviews

5. Auditioning



SF

Use of learning theory in training of professional sales force

1 Motivation.

2. Involvement

3. Feedback

4. Experienced versus inexperienced sales people

5. Accelerated learning



SF

Who should train?

1 Sales managers as trainers.

2. Experienced sales people as trainers

3. Training specialists

4. Hybrid

ORGANIZATION Customer based / Territory based/ Product based/ National

account based



SF

Domains of training

Company knowledge Product knowledge Industry and market trend knowledge

Competitive knowledge Ethics are important too Sales skill knowledge:1 Professional selling skills2 Human relations skills

3 Negotiating skills:3.1 Preparing for negotiations3.2 Establishing fundamental attitude3.3 Conducting the negotiations



SF

Motivating the sales force

Motivational theories Content theories

Abraham Maslow

Herzberg Process theories Attribution theory

Motivated or de motivated depending on who is in

control of the action Expectancy theory Pp X Po X valance, where Pp = perceived probability

of performing, Po = perceived probability of obtainingan outcome, Valance = anticipated value of satisfaction

or dissatisfaction of the outcome



SF

Motivating the sales force

Compensation Salary related to sales Fixed component plus a variable component

Hybrid



SF

Importance of Personal selling± Own or Manufacturers or distributors

Actualizing the marketing concept

Need recognition and satisfying the needs , wants and demands ± more than Consumer Products

Widia Reducing inserts Inventory by 35% by reducing thevariety being carried by a buyer

SF will recommend , do technical assistance etc



SF

WHAT DOES BUYERS WANT FROM SALES FORCE Thoroughly informed about COMPANY About PRODUCTS

Understands BUYERS Good technical background Good personality characteristic



SF

SALES FORCE AUTOMATION Enhances the ability of sales force SFA includes ³software to cell phones to voice mail to AI´

Sales person will be more productive because of SFA He can use data analysis to help buy customer ³Smarter´ SALES EDGE ± a software



SF

Industrial selling Environment Organizational buying and buying behavior Different communication strategies

Groups and Individuals Influencers Center of Gravity Goal Conflicts ?

USE ± experience, questioning mind and keen observation



SF

Selling process

Stages Examples1 Searching for and identifying

organizations

Screen potential prospects

2 Making the approach Getting the interview and opening

the sale

3 Qualifying the prospect Profile the needs of prospect

4 Making the sales presentation

High degree of planning

Gaining access

Demonstrate firms ability to satisfy

needs , demonstrate the product

³ Making cumulative efforts of many

calls

5 Answering objections Anticipating unsolved problem areas

6 Closing the sale Asking for order in subtlety

7

Following up Maintain continuous favorable

relationship



SF

Making sales presentations

Importance of Planning Identifying Prospects This is not about current customers Media Ad

Trade shows Telemarketing Gaining access to Buying center Cumulative efforts of many calls Learning from the environment about environment Sales Presentations Recognize and Respond to the need Developing & Managing customer rapport Sales Edge ± Software



SF

Managing the Industrial sales force- Qualities of salesman

Aggressive Sensitive to needs Technical knowledge Communication skills

Positive attitude

Planning the sales force deployment Bachelors Short period visits



SF Typical SF deployment analysis

Intuitiveapproaches

Systematic approaches Decision modelapproaches

Experience Potential

Adjusting marketpotential

Expected valueanalysis

Empirical models

Judgment Workload analysis Judgment basedmodels

Rules of

thumb-heuristics

Return on time invested Combination models



Adjusted market potential for prospective groups

TATA steels is looking for Market expansion

Group

A

B

C

TOT

Market potential -

Tonnes

800,000

700,000

600,000

500,000

iscussions

with SF

50

80

100

30

Sales Potential

400,000

560,000

600,000

150,000



Expected Value Analysis

TATA steels is looking for Market expansion

GRP

AB

C

D

TOT

Market

potential

800,000 700,000

600,000

500,000

Discussions

with SF

50%80%

100%

30%

Sales Potential

400,000 560,000

600,000

150,000

P of

suc

0.40.1

0.2

0.8

Expected

Value

160,000 5,600

120,000

120,000

Profit

5 10

5

10



Expected Value Analysis

TATA steels ± why should they do it?

Concept of Heavy Half ± 70 % from 15 %



Workload Analysis

To estimate # people needed for the PS

Estimate # selling days Do not forget sales conferences, allowed leave, training

,trade shows From Past Data estimate Average travel time

Estimate the length/duration of sales call ( Average) # existing customers, Proposed expansions to be estimated



RoTI Analysis

# AC Freq

per

AC

Total planned

calls

Ave call

cost Rs

Cost

Per

Group

Sales pot Gross

@ 20%

RoTI

A 14 9 126 205 25880 500,000 100000 3.86

B 35 5 175 205 35945 400,000 80000 2.23

C 13 3 39 205 8010 250,000 50000 6.24

D 17 4 68 205 13967 50,000 10000 0.72



Review Problem

RoTI calculations & Analysis



1500000 .35

2000000 .40

1750000 .25

525000 A

800000 B

437500 C

Market pot % to

firm

525000 .35

800000 .15

437500 .50

Sales pot Prob

183750 A

120000 B

218750 C

Sales pot Cat

Expected value Cat



3x2

Pot

cust

calls

yr

Total

calls

Call

cost

A 10 8 80 225

B 15 12 180 225

C 22 16 352 225

Cost 4x5 Firm¶s 20% 7/8

group SP mar gin ROTI

A-18000 525000 105000 5.83

B-40500 800000 160000 3.95

C-79200 437500 87500 1.10

RoTI calculations



Sales org Strength

High Low

Opportunity High Invest in SF resources &take advantage of

opportunity

Invest in SF tomove to strength

or put thoseunits else where

Low Moderate sales force tomaintain current position

Minimum effort

Sales resource opportunity grid



Simple Complex

sales Lar ge Major

A/C

National

A/C

Potential Small Dyadic

A/C

Minor

A/C

Complexi

ty of customer

Documents

Sales Force Planning Organising and Controlling