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Sales Management Interactive Training Experience.

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Presentation on theme: "Sales Management Interactive Training Experience."— Presentation transcript:

1 Sales Management Interactive Training Experience

2 The Simulation Is designed to allow participants to: –investigate –experience the process of Sales Management This involves making decisions covering: –staff selection –training and development –territory management It uses a computer model to simulate the impact of these decisions.

3 The Process Preparation familiarisation define responsibilities set objectives decide strategies Decision Making submit decisions simulate impact analyse results recruit sales people Review & Debriefing make sales directors’ report review results

4 The Business Situation The senior sales management of a new territory that consists of about 100 areas each with different potential Selling a range of industrial consumables that will be bought on a regular basis Need to hire and deploy a sales force and then manage them

5 Decisions Three types of decision: territory management –sales force changes –territory changes –training course changes –special reporting –staff to fire advertising for staff recruiting staff

6 Territory Decisions (1) Sales Force Changes –increase salary –change home base –change region –dual call days –training course –optional reports Each sales person is different and is identified by a unique number

7 Territory Decisions (2) Territory Allocation/Deallocation Sales person’s territory can consist of one or more area. Each area is numbered It is not necessary to allocate all areas. When deciding, you should consider: potential number of customers travel Etc.

8 Territory Decisions (3) Training can either be formal (attending a course) or informal (dual calling with the region manager). Training is concerned with improving –selling skills –product knowledge –customer/industry knowledge For courses you control duration and the mix of skills & knowledge training.

9 Territory Decisions (4) Regional Organisation There can be up to four regions (lettered A-D) Each has a Regional Manager who can spend up to twenty days dual calling with his or her sales people Each sales person must be allocated to a region Several reports are available detailing results for individual regions You may wish to allocate responsibility for separate regions to separate people

10 Recruitment Process Advertise for Staff –area for advertisement –advertisement size –salary range –skills & knowledge needs Interview Results –current salary, employer & home base –perceived skills, knowledge & personality Offer Job –salary –home base

11 Results Each quarter you are provided with reports to help you evaluate your decisions and your sales force. The standard reports are: –Financial Results –Territory & Regional Summaries –Dual Call Commentary –Training Summary –Resignations And optional reports thus: –Area Summary –Area Research –Sales Workload –Sales Call Analysis

12 Financial Results On an investment centre basis and so shows: Sales Revenue Gross Profit Selling Costs Servicing Costs Training Costs Reporting Costs Management Costs Sickness Costs Recruiting Costs Contribution Working Capital Capital Charge Residual Profit Return on Capital For the whole sales unit for each region for each sales person for each area As appropriate

13 Territory & Organisation These reports provide information about the regions and for each region’s sales people as follows: Salary Miles Travelled Selling Days Home Bases Territory Sizes

14 Dual Call Comments This report shows the regional manager’s perceptions about the sales people they dual called with as follows: The number of day spent with the sales person Perceptions about product & customer knowledge, selling skills and morale. These perceptions can be: V. Poor, Poor, Average, Good & V. Good And their accuracy improves as the number of dual call days increase.

15 Training Summary This report provides information about the current range of courses showing: Duration The mix of product & customer knowledge and selling skills The number of sales people attending the course The cost of the course

16 Optional Reports These either take sales force time or cost money : Area Summary provides financial information about each of a sales person’s areas. Area Research provides information about the number of competitors, penetration & share for served areas Area Potential provides information about the areas where the company has no sales presence Sales Workload provides at all levels information about total calls, total customers, the time spent selling. On courses, preparing reports or off sick etc. Sales Call Analysis can be for al region’s sales people and shows the number of calls on current & new customer, revenue/call, gross profit/call, contribution/call and miles/call Besides these reports you may ask for additional information.

17 Observations it takes time to understand but the business still must be run so your decisions will not be perfect time will be a constraint but, by the end you should be just in command of your business! your business competencies will be challenged we are here to guide you and you should have fun.

18 Sales Management Interactive Training Experience


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