Management of the Sales Force C H A P T E R 17

C H A P T E R 17 Copyright  2004 Pearson Education Canada Inc Learning Objectives Describe the responsibilities and activities of a Sales Manager List and discuss the qualities of an effective Sales Manager Discuss the recruiting and selection of salespeople

C H A P T E R 17 Copyright  2004 Pearson Education Canada Inc Learning Objectives (Continued) Describe effective orientation, training, and motivation practices Describe selected sales compensation plans List and discuss criteria for evaluating sales performance

C H A P T E R 17 Copyright  2004 Pearson Education Canada Inc The Sales Manager... is the person responsible for planning and implementing the company’s sales strategy, and for managing and developing the firm’s sales force.

C H A P T E R 17 Copyright  2004 Pearson Education Canada Inc Qualities of a Good Sales Manager Evidence of Structure Displays Consideration

C H A P T E R 17 Copyright  2004 Pearson Education Canada Inc Structure Structure is illustrated when Sales Managers clearly define their own duties and those of the sales staff.

C H A P T E R 17 Copyright  2004 Pearson Education Canada Inc Evidence of Structure Planning takes place on a regular basis Expectations are clearly communicated Decisions are made clearly and promptly Performance of salespeople is appraised regularly

C H A P T E R 17 Copyright  2004 Pearson Education Canada Inc Evidence of Consideration Regular and effective communication receives a high priority Each salesperson is treated as an individual Good performance is rewarded often

C H A P T E R 17 Copyright  2004 Pearson Education Canada Inc Coaching... Is the interpersonal process between a Sales Manager and a salesperson in which the manager assists the salesperson to improve performance in specific areas.

C H A P T E R 17 Copyright  2004 Pearson Education Canada Inc Problems with Hiring the “Wrong Salesperson” Businesses must absorb the cost of low productivity Loyal customers may be lost Economic loss due to severance or firing

C H A P T E R 17 Copyright  2004 Pearson Education Canada Inc Questions to Consider when Selecting Your Sales Force Will they be developing new territories or assuming established ones? Is the product/service well established? Is there close Sales Manager supervision? What amount of travel is required?

C H A P T E R 17 Copyright  2004 Pearson Education Canada Inc Sources of Sales Applicants Internal Company or Employee referrals On-Campus Recruiting Trade/Newspaper Advertisements Employment Agencies/Listings Internet (e.g. Workopolis)

C H A P T E R 17 Copyright  2004 Pearson Education Canada Inc When Selecting, Consider… Interest/Enthusiasm for the job Self-Motivation Evidence of “closing” skills Relationship builders

C H A P T E R 17 Copyright  2004 Pearson Education Canada Inc Ensuring Salesperson Productivity Orientation Training

C H A P T E R 17 Copyright  2004 Pearson Education Canada Inc Sales Training Dimensions Knowledge of the product line Attitude toward the Company Skill in applying personal selling principles and practices

C H A P T E R 17 Copyright  2004 Pearson Education Canada Inc Internal Motivation... is the intrinsic reward that occurs when a duty or task is performed. These rewards include Achievement Challenge Responsibility Advancement Growth Enjoyment of work Involvement

C H A P T E R 17 Copyright  2004 Pearson Education Canada Inc External Motivation... is the action taken by others that involves rewards or reinforcement that cause the worker to behave in ways to ensure receipt of the reward. They include Contests Prizes Bonus Money

C H A P T E R 17 Copyright  2004 Pearson Education Canada Inc Sales Compensation Plans Commission Commission + Draw Commission + Salary + Bonus Salary + Bonus Straight Salary

C H A P T E R 17 Copyright  2004 Pearson Education Canada Inc Awards Program Objectives Specific product movement Percentage Sales increase Active new or inactive accounts Increase Sales activity

C H A P T E R 17 Copyright  2004 Pearson Education Canada Inc Guidelines to Effective Sales Compensation Plans Sales Objectives are well defined Plans should be field tested Compensation plans should be carefully explained Plans should be flexible and change with conditions

C H A P T E R 17 Copyright  2004 Pearson Education Canada Inc Assessing Sales Force Productivity Quantitative Criteria Sales volume in dollars or units Sales versus previous years Sales by product or line New accounts opened New account sales Net profit Number of Customer calls

C H A P T E R 17 Copyright  2004 Pearson Education Canada Inc Assessing Sales Force Productivity (Continued) Qualitative Criteria Attitude Product Knowledge Communication Skills Personal Appearance Customer Goodwill generated Selling Skills Initiative