1. MGT301 Principles of Marketing
Lecture-37

2. Summary of Lecture-36

3. Steps in the Selling Process
Sales Force Management
Steps in the Selling Process

4. Managing the Sales force

5. Designing Sales force Strategy and Structure
Managing the Salesforce
This CTR corresponds to Figure 16-1 on p. 483 and relates to the material on pp
Instructor’s Note: This CTR provides an overview of the salesforce management process with following CTR covering each key area in greater detail.
Designing Sales force Strategy and Structure
Recruiting and Selecting Salespeople
Training Salespeople
Compensating Salespeople
Supervising Salespeople
Evaluating Salespeople
Major Steps Salesforce Management
Sales Force Management is the analysis, planning, implementation, and control of sales force activities. Major decisions include:
Designing Strategy and Structure. Strategy requires decisions on salesforce structure, size, and compensation. Variations in this mixture are appropriate for differing industries, markets and sales objectives. Strategy and structure issues are covered in greater detail on a subsequent CTR.
Recruiting and Selecting. Knowing in advance what characteristics will always produce good salespeople is very difficult. Selecting procedures should attempt to screen candidates for both ability and retention-related issues. Recruiting and selecting issues are covered in greater detail on a subsequent CTR.
Training Salespeople. Issues in training center on skills such as order taking and order getting, seeing customers as unwilling to seeing them as people needing problem solutions. Training issues are covered in greater detail on a subsequent CTR.
Compensating Salespeople. Compensation is made up of several elements -- a fixed amount, a variable amount, expenses, and fringe benefits. Compensation is covered in greater detail on a subsequent CTR.
Supervising Salespeople. Supervision addresses problems in directing and coordinating salespeople's organization, time management, motivation, and customer relationships. Supervision issues are covered in greater detail on a subsequent CTR.
Evaluating Salespeople. Evaluation requires both qualitative and quantitative measures of salesforce performance. Evaluation issues are covered in greater detail on a subsequent CTR.

6. Today’s Topics Sales force Management (cont..) Direct Marketing
Supervising Salespeople
Directing Salesperson
Motivating Salesperson

8. Motivating Salespeople
Supervising Salespeople
This CTR relates to the material on pp
Motivating Salespeople
Organizational Climate
Sales Quotas
Positive Incentives
Honors
Awards
Merchandise/ Cash
Trips
Supervising Salespeople
Issues in supervision of the sales force include:
Directing Salespeople. Supervisors must determine how best to focus the efforts of salespeople to meet the needs of their customers in relation to the industry and competitive conditions.
Developing Customer Targets and Call Norms. Companies often specify how much time their salesforce should spend prospecting for new accounts. Calls to accounts are often a function of how large or important the account is.
Using Sales Time Efficiently. The annual call schedule is a tool that shows which customers and prospects to call on in which months. The time-and-duty analysis helps salespeople identify when they are selling versus waiting, traveling, eating and doing administrative work.
Motivating Salespeople
Organizational Climate. Climate describes the feeling that salespeople have about their opportunities, value, and rewards for a good performance within the company.
Sales Quotas. Quotas are the standards stating the amount salespeople should sell and how sales should be divided among the company’s products.
Positive Incentives. Companies can use other incentives to increase effort, including:
Sales meetings. These provide social occasions, breaks from routine, and chances to meet and talk with others.
Sales contests. These spur the salesforce to make a selling effort above what is normally expected.

9. How Salespeople Spend Their Time

10. Companies Look For Ways to Increase the Amount of Time Salespeople Spend Selling.
Administrative
Service
Calls
Tasks
17%
12%
Telephone
Selling
21%
Face-to-Face
Selling
30%
Waiting/
Traveling
20%

11. Evaluating Salespeople

12. Expense Sales Reports Report Sources of Information Call Work Reports
Evaluating Salespeople
This CTR relates to the discussion on pp
Expense
Reports
Sales
Report
Sources of
Information
Evaluating Salespeople
Sources of Information. Managers get information on sales force performance from several sources, including:
The Sales Report. This is the most important source of information managers have on their salesforce.
The Work Plan. This is submitted and describes the calls and routing for the coming week or month.
Annual Territory Marketing Plans. These are outlines for building new accounts and increasing sales.
Call Reports. These log sales calls and
Expense Reports. These provide information on activity and expenses to be reimbursed.
Formal Evaluation of Performance. Many techniques are used to evaluate sales force performance for formal company objectives, including:
Comparing Salespeople’s Performance. Comparisons are helpful although many other factors influence performance such as differing conditions in each territory.
Comparing Current Sales with Past Sales. Past sales help identify trends. Interpretation is needed to evaluate trends with company expectations.
Qualitative Evaluation of Salespeople. These subjective evaluations look at a salesperson’s knowledge of the company, products, customers, competitors, territory, and tasks.
Call
Reports
Work
Plan
Annual
Territory
Marketing Plan

13. Quantitative Criteria
Orders
Number of orders obtained
Average order size (units or dollars)
Number of orders canceled by customers
Sales volume
Dollar sales volume
Unit sales volume
By customer type
By product category
Translated into market share
Percentage of sales quota achieved

14. Margins
Gross margin
Net profit
By customer type
By product category
Customer accounts
Number of new accounts
Number of lost accounts
Percentage of accounts sold
Number of overdue accounts
Collections made of accounts receivable

15. Sales calls
Number made on current customers
Number made on potential new accounts
Average time spent per call
Number of sales presentations
Selling time versus nonselling time
Call frequency ratio per customer type
Selling expenses
Average per sales call
As percentage of sales volume
As percentage of sales quota
Direct-selling expense ratios
Indirect-selling expense ratios

16. Customer service
Number of service calls
Displays set up
Delivery cost per unit sold
Months of inventory held, by
customer type
Number of customer complaints
Percentage of goods returned

17. Selling skills
Knowing the company and its policies
Knowing competitors’ products and
sales strategies
Understanding of selling techniques
Customer feedback (positive and negative)
Product knowledge
Customer knowledge
Execution of selling techniques
Quality of sales presentations
Communication skills

18. Qualitative Criteria
Sales-related activities
Territory management: sales call preparation, scheduling, routing, and time utilization
Marketing intelligence: new product ideas, competitive activities, new customer preferences
Follow-ups: use of promotional brochures and correspondence with current and potential accounts
Customer relations
Report preparation and timely submission

19. Personal characteristics
Cooperation
Human relations
Enthusiasm motivation
Judgment
Care of company property
Appearance
Self-improvement efforts
Patience
Punctuality
Initiative
Resourcefulness
Health
Sales management potential
Ethical and moral behavior

20. Developing the Sales force
Recruiting
Selecting
Training

21. Direct Marketing One-to-One Marketing
Direct communications with carefully targeted individual consumers to obtain an immediate response.

22. Direct communications with carefully targeted individual consumers to obtain an immediate response.

23. Direct Marketing Fastest growing promotional mix element
Easy to narrowly target a segment
Measure outcomes easier
Databases are extremely important

24. Direct Marketing
Breaks
through ad
clutter
Better
targeting
reduces
waste

25. Direct Marketing Consists of Direct Connections With Carefully Targeted Individual Consumers to Both Obtain an Immediate Response and Cultivate Lasting Customer Relationships.

26. Most Mass Marketing Involves One-Way Communications Aimed At Consumers.
Direct Marketing Involves Two-Way Interactions With Customers.

27. Direct Marketing Mass Marketing
Focuses on Share of Customer
Develops Customers
Finds Products for Customers
Mass Marketing
Focuses on Share of Market
Develops Products
Finds Customers for Products

28. Communications Process Differences

29. Individual Response is captured
Message is
Personalized
Channel is
Direct
Noise is
not present
Individual Response is captured

30. The New Direct Marketing Model

31. Some firms use direct marketing as a supplemental medium.
For many companies, direct marketing - especially Internet and e-commerce companies - constitutes a new and complete model for doing business.
Some firms use the new direct model as their only approach.
Experts envision a day when all buying and selling will involve direct connections between companies and their customers.

32. Advantages of Direct Marketing

33. The ability to identify the most profitable customer.
The ability to create long-term relationships with customers.
The ability to target marketing efforts only to those people most likely to be interested.
The ability to offer varied messages to different consumers.
Increased knowledge about the customer.

34. Factors Driving Direct Marketing Growth

35. Predictive
Modeling
Convenience
Customized
Products
Immediate
Sales
Fragmented
Markets
Shrinking
Media Audiences
Price
Sensitivity

36. Demassification – Focus is Toward Minimarkets
Higher Costs of Driving, Traffic
and Parking Congestion
Consumers Lack of Time
Convenience of Ordering
From Direct Marketers
Growth of Customer Databases

37. Forms of Direct Marketing

38. Face-to-Face
Selling
Online
Marketing
Telemarketing
Kiosk
Marketing
Direct
Mail
Direct-Response
TV Marketing
Catalog

39. Techniques of Direct Marketing

40. Electronic
Media
Direct Mail
Direct Selling
Telemarketing
Print
Media
Broadcast
Media

41. Direct Mail

42. Advantages Disadvantages Self-Contained Message Flexibility
Thorough Target Market Coverage
Fewer Distractions From Other Media
Large Number of Mail-Order Buyers
Advantages
Disadvantages
High Cost Per Exposure
Potential Delivery Delays
Lack of Support From Other Media
Easy to Ignore
Seen as Wasteful, Harmful to Environment

43. Customer Databases

44. Customer Databases are an Organized Collection of Comprehensive Data About Individual Customers or Prospects Including:
Geographic,
Demographic,
Psychographic, and
Behavioral Data.

45. Information-Intensive
Direct
Marketing is...
Share of Customer
With a
Focus on...
Customer-Based
Information-Intensive
Database
Technology
Long-Term Oriented
Through
Use of...
Individualized

46. Database Marketing
Database Marketing is the Process of Building, Maintaining, and Using Customer Databases and Other Databases for the Purposes of Contacting and Transacting With Customers.

47. Marketing Database
The compilation of names, addresses, and other pieces of pertinent information about individual customers and prospects that affects what and how marketers sell to them.

48. How Companies Use Their Databases ?
Identifying Prospects
Deciding Which Customers Should
Receive a Particular Offer
Deepening Customer Loyalty
Reactivating Customer Purchases

49. Enough for today. . .

50. Summary
Supervising Salespeople
Motivating Salespeople

51. Evaluating Salespeople

52. Direct Marketing

53. Direct Marketing
Better
targeting
reduces
waste
Breaks
through ad
clutter

54. Advantages of Direct Marketing
Factors Driving Direct Marketing Growth
Forms of Direct Marketing

55. Customer Databases

56. Next….
Public Relations

57. MGT301 Principles of Marketing
Lecture-37