©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 0 in Chapter 17 Chapter 17 Managing the Sales Force PowerPoint by Karen E. James Louisiana State University - Shreveport

©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 1 in Chapter 17 Objectives  Review the types of decisions firms face in designing a sales force.  Learn how companies recruit, select, train, supervise, motivate, and evaluate a sales force.  Understand how salespeople improve their selling, negotiation, and relationship-building skills.

©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 2 in Chapter 17 Designing the Sales Force  Deliverer  Order taker  Missionary  Technician  Demand creator  Solution vendor Types of Sales Representatives

©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 3 in Chapter 17 Designing the Sales Force Steps in Process  Objectives and strategy  Structure  Sales force size  Compensation  Objectives –Sales volume and profitability –Customer satisfaction  Strategy –Account manager  Type of sales force –Direct (company) or contractual

©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 4 in Chapter 17 Designing the Sales Force Steps in Process  Objectives and strategy  Structure  Sales force size  Compensation  Types of sales force structures: –Territorial –Product –Market –Complex  Key accounts

©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 5 in Chapter 17 Designing the Sales Force Steps in Process  Objectives and strategy  Structure  Sales force size  Compensation  Workload approach: –Group customers by volume –Establish call frequencies –Calculate total yearly sales call workload –Calculate average number of calls/year –Calculate number of sales representatives

©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 6 in Chapter 17 Designing the Sales Force Steps in Process  Objectives and strategy  Structure  Sales force size  Compensation  Four components of compensation: –Fixed amount –Variable amount –Expense allowances –Benefits  Compensation plans –Straight salary –Straight commission –Combination

©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 7 in Chapter 17 Managing the Sales Force  Recruitment and selection  Training  Supervising  Motivating  Evaluating Steps in Sales Force Management

©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 8 in Chapter 17 Managing the Sales Force  Recruiting begins with the development of selection criteria –Customer desired traits –Traits common to successful sales representatives  Selection criteria are publicized  Various selection procedures are used to evaluate candidates

©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 9 in Chapter 17 Managing the Sales Force  Training topics include: –Company background, products –Customer characteristics –Competitors’ products –Sales presentation techniques –Procedures and responsibilities  Training time needed and training method used vary with task complexity

©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 10 in Chapter 17 Managing the Sales Force  Successful firms have procedures to aid in evaluating the sales force: –Norms for customer calls –Norms for prospect calls –Using sales time efficiently Tools include configurator software, time-and-duty analysis, greater emphasis on phone and Internet usage, greater reliance on inside sales force

©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 11 in Chapter 17 Managing the Sales Force  Motivating the Sales Force –Most valued rewards Pay, promotion, personal growth, sense of accomplishment –Least valued rewards Liking and respect, security, recognition –Sales quotas as motivation tools –Supplementary motivators

©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 12 in Chapter 17 Managing the Sales Force  Evaluating the Sales Force –Sources of information Sales or call reports, personal observation, customer letters and complaints, customer surveys, other representatives –Formal evaluation Performance comparisons Knowledge assessments

©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 13 in Chapter 17 Personal Selling Principles Major Aspects  Sales professionalism  Negotiation  Relationship marketing  Sales-oriented approach –Stresses high pressure techniques  Customer-oriented approach –Stresses customer problem solving  Steps in industrial selling process

©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 14 in Chapter 17 Personal Selling Principles  Prospecting and qualifying  Preapproach  Approach  Presentation and demonstration  Overcoming objections  Closing  Follow-up and maintenance (servicing) Steps in Industrial Selling Process

©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 15 in Chapter 17 Personal Selling Principles Major Aspects  Sales professionalism  Negotiation  Relationship marketing  Reps need skills for effective negotiation  Negotiation is useful when certain factors characterize the sale  Negotiation strategy –Principled –BATNA

©2003 Prentice Hall, Inc.To accompany A Framework for Marketing Management, 2 nd Edition Slide 16 in Chapter 17 Personal Selling Principles Major Aspects  Sales professionalism  Negotiation  Relationship marketing  Building long-term suppler-customer relationships has grown in importance  Companies are shifting focus away from transaction marketing to relationship marketing