SALES FORCE MANAGEMENT

Presented to: Ms. Saman IzharPresented by: Syed Ahmed Hussain SALES FORCE MANAGEMENT

Introduction

Although selling is an extremely important function in most organizations, it does have something of a bad reputation. This has mainly come about from the kind of hard selling associated with door-to-door selling.

This image is quite far removed from the majority of selling that takes placeespecially in the business-to-business sector.

Much of a salespersons time is not actually taken up by selling but with avariety of other tasks that they have to undertake in order to achieve the sale.

Sales Force organizationSales force organization is the process of allocating and managing sales resources to meet sales and marketing objectives.

The organization reflects the number of sales representatives and their skills, the size of the product range, the location of customers and prospects, and the market sectors in which a company operates.

Sales Force ManagementEfforts put forth to attain a companys sales objectives.

Sales management can involve any of the following activities:

(1) formulation of sales strategy through development of account management policies, sales force compensation policies, sales revenue forecasts, and sales plan.

(2) implementation of sales strategy through selecting, training, motivating, and supporting the sales force, setting sales revenue targets.

(3) sales force management through development and implementation of sales performance, monitoring, and evaluation methods, and analysis of associated behavioral patterns and costs

Sales Force Management

Recruitment

It is the process of finding out candidates, who are encouraged to apply. Selection is the process of choosing some out of many candidates.

Therefore, we can say that selection is recruitment, but recruitment is not selection.

Selection is the process of rejection of unfits.

Recruitment precedes the selection process.

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SelectionThe process of selecting differs from one company to another. The qualities expected must match with the job description and the person should be qualified enough too. The steps followed for selection is the same in all the places. Application BlankScreeningReferencePersonal InterviewTestMedical examinationFinal interview

Application Blank: information about the background of the applicant.Screening: Evaluating a large number of subjects to identify those with a particular set of attributes or characteristics.

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TrainingTraining is the continuation of selection. After selection, the sales manager will have two options.

Send him to the work field directlySend him for training program

It is always advisable to train a person before sending him to the workfloor.Training means the process of perfecting the salesmen for their work. It is the organized procedure through which knowledge as well as skill, for a particular purpose, is acquired.

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Training MethodsThere are five training methods. 1. Class Room / Conference Training

2. Behavioral Learning / Simulations

3. Online Training

4. Absorption / Self learning Training

5. On-The-Job Training

SupervisingDirecting the sales force

Identify customer targets and set call norms

Develop prospect targets

Ensure efficient use of time and assets

MotivationMostly believed that the higher the salespersons motivation, the greater the effort and the resulting performance, rewards, and satisfaction-and thus further motivation.

Sales managers must be able to convince salespeople that they can sell more by working harder and smarter

Sales managers must be able to convince salespeople that the rewards for better performance are worth the extra effort.

MotivationIn this stage organization identify the attributes that motivates the sales executive to perform well.

There are two types of incentives given by the organizations

They are

FINANCIALNON-FINANCIALINCENTIVES

Types of Incentives

FINANCIAL INCENTIVES * Salary package * Flexible expenses * Fringe benefitsetc

NON-FINANCIAL BENEFITS * Promotion * Recognition * Awards

Fringe benefits:Compensation in addition to direct wages or salaries, such as company car, house allowance, medical insurance, paid holidays, pension schemes, subsidized meals. Some fringe benefits are regarded part of a taxable income.

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EvaluatingTo know whether the sales executives are achieving the quotas set for them i.e. sales plans, the reports of their performances are compared against the set standards.

On the basis of target achieved the conclusions are drawn and accordingly incentives are announced.

The sales force is to be motivated all the time and trained when required.

CompensationCOMPENSATION is made in three ways.

Direct salaryDirect CommissionCombined plans

Compensation

Direct salary: In this method sales executives are given fixed salary per month.Direct commission: In this case the executives will be working on commission basise.g : Life insurance agents or 3rd party sales teamCombined Plans: It is a mixture of straight salary and straight commission plans. In this method the sales executives are paid their regular salary plus their commission on the sales they make. Eg. BMTC pays their conductors a fixed salary + 2% Commission on the sale of tickets.

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