1. Chapter 8 Global Sales Training Sales Management: A Global Perspective Earl D. Honeycutt John B. Ford Antonis Simintiras

2. Introduction Sales training can provide a variety of benefits that include –Higher sales force performance –Improved customer relationships –More efficient time management –Less need for management supervision –Greater product and market knowledge –More comprehensive understanding of firm policies

3. Importance of sales training Critical because of cost of sales call –Sales activities must be efficient –Sales force must produce satisfied customers Salesperson must also be able to operate globally –Distinct language and cultures –At great distances from headquarters Training provides skills needed to succeed

4. Cultural Impact Culture impacts the sales process –As such, this impacts all training activities National culture shapes the content and presentation styles –e.g. Malaysia comprised of three groups –Malay, Chinese, and Indian cultures can clash Standardize technical skills, but modify “soft” supervisory skills to local culture

5. Need for Sales Training Sales personnel, whether new or experienced, must be socialized –Work ethics, job expectations, and ways of conducting business Training process complicated by introduction of race, creeds, and cultures Training allows firm to set standards for: –Job accuracy and job expectations

6. Discussion Questions There are numerous potential benefits related to sales training—are there any potential downside? Why do you think some firms do not conduct sales training?

7. The Sales Training Process Consists of six distinct stages: –Needs assessment –Objective setting –Plan training –Conduct training –Evaluate –Follow-up training

8. Needs Assessment The first stage is to determine the strengths and weaknesses of skills, knowledge and attitudes (SKA) of sales force –Subjective assessment methods Upper management judgment Sales management judgment Training department judgment –Objective assessment methods Interviews Surveys Performance measures End-of-course evaluations –General assessment methods Organizational and sales training objectives Competitors’ sales training programs (benchmarking)

9. Training Objectives Set objectives or goals of training program –Objectives address SKA “gaps” Should set SMART objectives –Specific, Measurable, Attainable, Realistic, and Timely –Total sales revenue will increase by 5%, over the next six months, for the PBX product Objectives communicate the expected outcome of the training program

10. Planning Sales Training Methods – theme, scope, coverage, length, instructor, location, media and materials employed Firms can use formal and OJT training Culture impacts the translations of materials and the way instruction is presented Must be aware of time away from customers

11. Planning (continued) Program length – formal training is one or two weeks in duration normally at a central location –Consult with local managers about holidays –Length varies by: Industry, company size, adoption rate of high technology, training budgets, and corporate culture –Sales personnel should be taught: How to sell, company policies, product knowledge, local market conditions, and their clients’ culture

12. Planning (continued) Training Methods –High-tech – computer based and interactive –Lecture, programmed, case studies, coaching, role playing, business games, and discussions are also utilized Training Location –Physical location and availability Normally conducted off site for privacy Firms may select a centralized site

13. Planning (continued) Instructor Selection –Sales manager, trainers, or consultants? Training Topics –Select those that will satisfy objectives Product, market, and company information, along with sales techniques, and socialization –Firms often spend most time on product knowledge and sales skills Will vary by industry and desired performance

14. Conducting Sales Training Put the planning stage into action Must remain flexible –Training team in India without power! If a particular aspect of training not working as planned, it should be changed

15. Evaluating Training Important to measure how well the training achieved the goals set However, many variables can complicate the evaluation of training There remain a number of ways to provide evidence of training success –Has funding been well spent? –Did trainees learn and can they perform?

16. Levels of training evaluation Reaction –Trainee response to the training program –Getting accurate responses in some cultures Scales Numbers Openness Knowledge –Measuring the knowledge or skill attained Tests/Exercises Early intervention to improve learning

17. Levels of training evaluation Attitudes –About the customer, firm, and job –Provides benchmark for how training applied –Accuracy, objectivity, and friendship concerns Results –What outcomes did training cause –Most useful, but most difficult measure –Many extraneous variables dilute measure

18. Other Evaluation Methods Compare outcome(s) to training objectives –If objective was to increase sales of product PBX by 5% over the following 6 months; did this happen? Utility analysis permits computation of sales training value –Managers compute cost and gain to compute an outcome utility –Estimates lead to criticism

19. Follow-up Training Sales training continual –Initial training to establish basic skills –Follow-up training to reinforce basic skills, plus teach new skills, knowledge, and attitudes Continual training imperative in global marketplace –Sales force may cling to local culture E.g. not rewarding merit in former Soviet Union

20. Summary Training provides benefits for the firm, the salesperson, and the customer Training consists of six stages, which are interconnected and dependent Culture making larger impact on programs –“Softer” skills directly influenced by culture Difficult to evaluate training’s effect Training is an on-going activity

21. Discussion Questions Are any sales training stages within the process more important than another? Why or why not? List as many reasons as possible why it is difficult to objectively evaluate sales training. Why is it important to conduct follow-up training? How can high-tech methods help with this responsibility?