1. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 17-1 CHAPTER 17 Management of the Sales Force

2. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 17-2 Learning Objectives Describe how leadership skills can be applied to sales management List and discuss the qualities of an effective sales manager Discuss recruitment and selection of salespeople Describe effective orientation and training practices

3. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 17-3 Learning Objectives Explain effective sales force motivation practices Develop an understanding of selected compensation plans List and discuss criteria for evaluating sales performance

4. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 17-4LeadershipLeadership The process of inspiring, influencing, and guiding employees to participate in a common effort Involves a series of skills that can be acquired through study and practice People who rise to the position of sales manager must understand the difference between leadership and management

5. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 17-5 Sales Management The process of planning, implementing, and controlling the personal selling function The sales manager plans, recruits, trains, budgets, develops compensation plans, and assesses sales force productivity Successful supervisory management personnel have certain behaviors in common

6. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 17-6 Effective Leaders Demonstrate the following: Structure Consideration Situational leadership Test of character Coaching for peak performance Samuel Palmisano, CEO of IBM

7. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 17-7 Basic Leadership Styles FIGURE17.2

8. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 17-8StructureStructure Evidence includes: Regular planning Expectations clearly communicated Prompt, firm decisions Regular performance appraisals

9. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 17-9ConsiderationConsideration Evidence includes: Regular and effective communication Each salesperson treated as individual Reward good performance often

10. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 17-10 Situational Leadership Leader’s style should match situation Develop strong ethics and character Jaime Barauh, District Sales Manager, McKesson Pharmaceutical

11. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 17-11 Peak Performance Coaching Help salespeople recognize need to improve Help develop their commitment to improve Document problems and explore solutions Brian Tracy’s sales training program has trained more than 1,000,000 salespeople. Completion of the program results in a designation of “Certified Sales Professional.” See the Website

12. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 17-12 Recruitment and Selection Determine job requirements Search for applicants Select best-qualified applicant

13. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 17-13 Determine Job Requirements New or established territory New or well-established product Work independently or closely with manager Likelihood of travel, transfer, promotion

14. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 17-14 Searching for Applicants Within company Colleges and universities Trade and newspaper advertising Employment agencies/listings Internet services/searches

15. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 17-15 The Value of the Best Salespeople Co-CEOs Jana Machin and Julia Chavez say, “Having the best salespeople is important.” In the past year, 75 of these “best of class” have blazed their way into chains like Target, Toys R Us, Wal-Mart and others.

16. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 17-16 Selecting Applicants Selection criteria: Interest, enthusiasm, high motivation Integrity Knowledge of business, market, consumers Customer orientation/relationships Psychological tests (used in conjunction)

17. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 17-17 Orientation and Training Provide thorough orientation before person begins work Initiate training program to help person achieve success... tasks, execution, role Size of firm should not dictate scope of training

18. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 17-18 A Framework for Training Salespeople FIGURE 17.3 Source: H.F. (Herf) MacKenzie, Sales Management in Canada. (Toronto: Prentice Hall, 2008), p. 229

19. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 17-19 Selling Power Selling Power magazine has some of the best hiring and training products available to assist sales managers. See the Website

20. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 17-20 Sales Training Program Knowledge of product line, territory, business trends, firm’s marketing strategy Attitudes toward the company, products, customers Skills: applying selling principles and practices

21. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 17-21 Sales Force Motivation Internal motivation Intrinsic rewards: achievement, challenge, advancement, growth, enjoyment of work Often have long-term positive impacts

22. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 17-22 Sales Force Motivation External motivation Actions taken by firm to reward sales performance Sales contests, incentive plans, cash bonuses

23. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 17-23 Effective External Rewards Design programs that focus on several important aspects of the salesperson’s job Evaluate incentive programs often Avoid unrealistic goals

24. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 17-24 Compensation Plans Compensation practices vary Usually combination of: Direct compensation: salary and commissions Indirect compensation: pension, insurance plans, vacations

25. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 17-25 Icelandic’s Incentive Icelandic® offers a very attractive incentive program to its distribution representatives. See the Website

26. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 17-26 Five Compensation Plans Straight commission Commission plan with guaranteed salary or draw provision Commissions with draw or salary plus bonus Fixed salary plus bonus Straight salary

27. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 17-27 Strategic Compensation Planning Specific product movement Percentage sales increase Establish new accounts Increase sales activity

28. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 17-28 Compensation Plan Guidelines Define marketing objectives—plan complements objectives Field test compensation plan Explain plan to sales staff Change plan as conditions warrant

29. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 17-29 Assessing Productivity: Quantitative Criteria Sales volume in dollars Sales compared with last year Volume by product or line Number of new accounts Amount of new account sales Net profit on each account Number of customer calls made

30. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 17-30 Assessing Productivity: Qualitative Criteria Attitude Product knowledge Communication skills Personal experience Customer goodwill generated Selling skills Initiative Team collaboration

31. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 17-31 Promoting Salespeople Chally’s research suggests the decision to promote salespeople into sales management should not be taken lightly. See the Website

32. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 17-32 Key Concept Discussion Questions Describe how leadership skills can be applied to sales management List and discuss the qualities of an effective sales manager Discuss recruitment and selection of salespeople Describe effective orientation and training practices

33. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 17-33 Key Concept Discussion Questions Explain effective sales force motivation practices Develop an understanding of selected compensation plans List and discuss criteria for evaluating sales performance

34. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 17-34 17-34 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2010 Pearson Education, Inc. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall