1. Sales Training: Objectives, Techniques, and Evaluation
Sales Force and Distribution Management
Marketing 3345

2. Training Investment
Mark W. Johnston and Gary W. Marshall, Sales Force Management,
McGraw Hill, 2006

3. Sales Training Issues Who should be trained?
What should be the primary emphasis in the training program?
How should the training process be structured?
on-the-job training and experience?
formal and more consistent centralized program?
web-based?
instructor-based?

4. Sales Training Objectives
Increase productivity
Improve morale
Lower turnover
Improve customer relations
Improve selling skills

5. Obstacles to Introducing Training
Top management not dedicated to sales training
Lack of buy-in from frontline sales managers and salespeople
Salespeople’s lack of understanding of what training is supposed to accomplish
Salespeople’s lack of understanding regarding application of training to everyday tasks

6. Well-Designed Training Program
Analyzes sales force needs
Sets specific, realistic, and measurable training objectives
Allows for adequate development and timely, effective implementation
Subjects itself to evaluation and review
What do we want to measure?
When do we want to measure?
How do we do it? What measuring tools are available?
Modifies to achieve greater effectiveness

7. Well-Designed Training Program
Mark W. Johnston and Gary W. Marshall, Sales Force Management,
McGraw Hill, 2006

8. Recent Shifts in Training New Sales Recruits
Companies with less than $5 million in annual sales are spending more on sales training per new hire - $5,500 worth of training per salesperson.
Training in smaller companies has increased from 3.3 months to 4.4 months.
Smaller companies are placing more emphasis on training than several years ago.
Companies are spending time and money on training experienced salespeople
Companies with more than $5 million in annual sales, are spending less money on training
Source: Christen P. Heide, Dartnell’s 30th Sales Force Compensation Survey: (Chicago: Dartnell Corp., 1999)

9. Training Costs and Duration
Mark W. Johnston and Gary W. Marshall, Sales Force Management,
McGraw Hill, 2006

10. Recent Shifts in Training Experienced Sales Personnel
Experienced sales reps are given, on average, 32.5 hours of ongoing training per year at a cost of $4,032 per rep
Continuing increasing amounts of training reflects a commitment to provide ongoing learning opportunities for senior salespeople
Companies are spending an increasing amount of time on product training and less on training in selling skills
Source: Christen P. Heide, Dartnell’s 30th Sales Force Compensation Survey: (Chicago: Dartnell Corp., 1999)

11. Training Costs and Duration

12. Sales Training Topics Product or service knowledge
Market/Industry orientation
Company orientation
Selling skills
Time and territory management
Legal and ethical issues
Technology
Specialized topics

13. Product Knowledge
Enables a salesperson to provide prospects and customers with the critical information for rational decision-making
Involves
Knowing how the product is made
How the product is commonly used, and
How it should not be used.
Customers often want to know how competitive products compare on
price
construction
performance
compatibility with each other
Companies that produce technical products spend a greater amount of time on product knowledge

14. Market/Industry Orientation Topics
How a particular industry fits into the overall economy
Knowledge of the industry and the economy
Economic fluctuations that affect buying behavior and require adaptive selling techniques
Customers' buying policies, patterns and preferences in light of competition
Customers' customers and what satisfies them
Needs of both wholesalers and retailers

15. Company Orientation Topics
Company polices that affect their selling activities
How to handle customer requests for price adjustments, product modifications, faster delivery and different credit terms
Sales manuals that cover product line information and company polices
A well-prepared sales manual gives a sales representative quick answers to a customer's questions

16. Time and Territory Management
Sales trainees need to learn to manage time and territories
80/20 rule applies:
20% of the customers account for
80% of the business and
Require a direct proportion of time and attention

17. Legal/Ethical Issues
Federal law dictates corporate action or avoidance of action in areas of marketing, sales and pricing
Sales personnel need to understand the federal, state and local laws that constrain their selling activities
Statements made by salespeople carry both legal and ethical implications
Lapses in ethical conduct often lead to legal problems

18. Technology Notebook computers
Presentations
connecting to company intranet or extranet
delivering documentation quickly and accurately
Home offices eliminate the need to go to another office
Salesperson can be almost totally self-sufficient with
high-speed network connection
computer
printer
cell phone
Effective computer use affords sales personnel more face-to-face customer contact time

19. Specialized Training Topics
Overcoming price objections
Holding the line on price
Working the trade show
Problem solving

20. Training Methods - How
Mark W. Johnston and Gary W. Marshall, Sales Force Management,
McGraw Hill, 2006

21. Training Methods - Where
Mark W. Johnston and Gary W. Marshall, Sales Force Management,
McGraw Hill, 2006

22. Keys for Effective OJT
Teaming - Bringing together people with different skills to address issues.
Meetings - Setting aside times when employees at different levels and positions can get together and share thoughts on various topics.
Customer interaction - Including customer feedback as part of the learning process.
Mentoring - Providing an informal mechanism for new salespeople to interact and learn from more experienced ones.
Peer-to-peer communication - Creating opportunities for salespeople to interact together for mutual learning.
Source: The Education Development Center (

23. Classroom Training Trainee receives standard briefings in
product knowledge
company polices
customer and market characteristics
selling skills
Formal training sessions avoid wasting executive time
Classroom sessions permit use of audiovisual materials and technical resources
Interaction between sales trainees builds camaraderie

24. Measuring the Costs and Benefits
Sales training consumes substantial time, budget and support resources
Relationship between sales training and revenue is difficult to measure

25. Broad Benefits Improved morale Lower turnover
Higher customer satisfaction
Management’s commitment to quality and continuous improvement
Measuring changes in skills, reactions and learning assists both new and experienced sales personnel

26. Training Evaluation
Mark W. Johnston and Gary W. Marshall, Sales Force Management,
McGraw Hill, 2006

27. Training Evaluation
Mark W. Johnston and Gary W. Marshall, Sales Force Management,
McGraw Hill, 2006

28. Key Terms sales training analysis on-the-job training (OJT)
role-playing
electronic training methods
sales training costs