17-1 Management of the Sales Force Selling Today 10 th Edition CHAPTER Manning and Reece 17

17-2 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

17-3 Peak Performance Coaching Help salespeople recognize need to improve Help develop their commitment to improve Document problems and explore solutions

17-4 Recruitment and Selection Determine job requirements Search for applicants Select best-qualified applicant

17-5 Determine Job Requirements New or established territory New or well-established product Work independently or closely with manager Likelihood of travel, transfer, promotion

17-6 Searching for Applicants Within company Colleges and universities Trade and consumer advertising Employment agencies/listings Internet services/searches

17-7 Selecting Applicants Selection criteria: Interest, enthusiasm, high motivation Integrity Knowledge of business, market, consumers Customer orientation/relationships Psychological tests (used in conjunction)

17-8 In Class Activity: Interview Application (P437 RP) What would you tell an interviewer about... Yourself? Your knowledge of the sales process? Greatest strengths and weaknesses? Most boring job/how you handled it? What was your biggest contribution at your last job? Why should he/she hire you? See Selling in Action

17-9 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

17-10 Dimensions of Formal 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

17-11 Sales Force Motivation Internal motivation Intrinsic rewards: achievement, challenge, advancement, growth, enjoyment of work Often have long-term positive impacts

17-12 Sales Force Motivation External motivation Actions taken by firm to reward sales performance Sales contests, incentive plans, cash bonuses

17-13 Effective External Rewards Design programs that focus on several important aspects of the salesperson’s job Evaluate incentive programs often Avoid unrealistic goals

17-14 Compensation Plans Compensation practices vary Usually combination of: Direct compensation: salary and commissions Indirect compensation: pension, insurance plans, vacations

17-15 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

17-16 Discussion Questions What are the pros and cons of commission-based compensation? What are the pros and cons of salary-based compensation?

17-17 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

17-18 Assessing Productivity: Qualitative Criteria Attitude Product knowledge Communication skills Personal experience Customer goodwill generated Selling skills Initiative Team collaboration