TH EDITION CHAPTER 17 MANAGEMENT OF THE SALES FORCE Manning and Reece

17-2 LEARNING OBJECTIVES Describe the functions of a sales manager List and discuss the qualities of effective sales managers Discuss recruitment and selection of salespeople Describe effective orientation, training, and motivation practices Develop understanding of selected compensation plans List and discuss sales performance evaluation criteria

17-3 SALES MANAGER DUTIES ”The sales manager typically performs the functions of recruiting, training, organizing, and supervising the sales force.”

17-4 SALES MANAGEMENT FUNCTIONS STRUCTURE CONSIDERATION PEAK PERFORMANCE COACH SITUATIONAL LEADERSHIP

17-5 STRUCTURE 1.Regular planning 2.Expectations clearly communicated 3.Prompt, firm decisions 4.Regular performance appraisals

17-6 CONSIDERATION 1.Regular and effective communication 2.Each salesperson treated as individual 3.Reward good performance often

17-7 SITUATIONAL LEADERSHIP Leader’s style should match situation Develop strong ethics and character

17-8 PEAK PERFORMANCE COACHING 1.Help salespeople recognize need to improve 2.Help develop their commitment to improve 3.Explore solutions

17-9 RECRUITMENT AND SELECTION Determine job requirements or specifications Determine job requirements or specifications Search for applicants Search for applicants Select best qualified applicants behavior Select best qualified applicants behavior SET SPECSSEARCHSELECT

17-10 DETERMINE JOB REQUIREMENTS 1. New or established territory 2. New or well-established product 3. Work independently or closely with manager 4. Likelihood of travel, transfer, promotion 1. New or established territory 2. New or well-established product 3. Work independently or closely with manager 4. Likelihood of travel, transfer, promotion

17-11 SEARCHING FOR APPLICANTS 1. Within company 2. Colleges and universities 3. Trade and consumer advertising 4. Employment agencies 5. Internet services/searches 1. Within company 2. Colleges and universities 3. Trade and consumer advertising 4. Employment agencies 5. Internet services/searches

17-12 SELECTING APPLICANTS SELECTION CRITERIA --High motivation --Reliability, check references --Performance on some activity --Knowledge of business, market, consumers SELECTION CRITERIA --High motivation --Reliability, check references --Performance on some activity --Knowledge of business, market, consumers

See "Selling in Action" Chapter INTERVIEW APPLICATION: SELL YOURSELF What would you tell an interviewer about… -- Yourself? -- Your knowledge of sales process? -- Greatest strengths and weaknesses? -- Most boring job? -- What was your biggest contribution at your last job? -- Why should he/she hire you?

17-14 ORIENTATION AND TRAINING Provide orientation before person begins work Provide orientation before person begins work Initiate training program …tasks, execution, role Initiate training program …tasks, execution, role Often month period Often month period Provide orientation before person begins work Provide orientation before person begins work Initiate training program …tasks, execution, role Initiate training program …tasks, execution, role Often month period Often month period

17-15 SELLING POWER

17-16 DIMENSIONS OF FORMAL TRAINING PROGRAM 1. Knowledge of product line, territory, business trends, firm’s marketing strategy 2. Attitudes toward the company, products, customers 3. Skills—applying selling principles and practices 1. Knowledge of product line, territory, business trends, firm’s marketing strategy 2. Attitudes toward the company, products, customers 3. Skills—applying selling principles and practices

17-17 SALES FORCE MOTIVATION INTERNAL MOTIVATION --Achievement, challenge, growth, advancement --Internal motivators often have long-term positive impact EXTERNAL MOTIVATION -- Sales contests, incentive plans, cash bonuses -- Actions taken by firm to reward sales performance

Show me the money!17-18 COMPENSATION PLANS Compensation practices vary Compensation practices vary Usually combination of Usually combination of --Direct compensation, salary and commissions --Indirect compensation, pension, insurance plans, vacations

Show me the money!17-19 COMPENSATION PLAN GUIDELINES Define marketing objectives Define marketing objectives Field test compensation plan Field test compensation plan Explain plan to sales staff Explain plan to sales staff Change plan as conditions warrant Change plan as conditions warrant

Show me the money!17-20 FIVE COMPENSATION PLANS Straight commission Straight commission Commission plan with salary or draw provision Commission plan with salary or draw provision Commissions with draw or salary plus bonus Commissions with draw or salary plus bonus Fixed salary plus bonus Fixed salary plus bonus Straight salary Straight salary

Show me the productivity!17-21 AWARD/INCENTIVE PLAN BASES Specific product movement Specific product movement Percentage sales increase Percentage sales increase New accounts gained New accounts gained Increased activity…number of new prospect calls Increased activity…number of new prospect calls

17-22 COMPENSATION—QUANTITATIVE CRITERIA Sales volume in dollars Sales volume in dollars Sales compared with last year Sales compared with last year Volume by product or line Volume by product or line Number of new accounts Number of new accounts Amount of new account sales Net profit on each account Number of customer calls made

Last slide Chapter COMPENSATION—QUALITATIVE CRITERIA Attitude Attitude Product knowledge Product knowledge Communication skills Communication skills Personal experience Personal experience Customer goodwill generated Customer goodwill generated Selling skills Selling skills Initiative Initiative Attitude Attitude Product knowledge Product knowledge Communication skills Communication skills Personal experience Personal experience Customer goodwill generated Customer goodwill generated Selling skills Selling skills Initiative Initiative