1. Sales Force Management 11 th Edition Mark W. Johnston Greg W. Marshall Routledge 2013

2. Implementation of the Sales Program Part 2 Routledge 2013

3. CHAPTER 8 Personal Characteristics and Sales Aptitude: Criteria for Selecting Salespeople Routledge 2013

4. War for Talent To calculate the cost of turnover consider: – Number of employees who hold the position – Annual percentage of turnover within the position – Annual compensation within the position – Average tax and benefit cost (as % of salary) – Average number of candidates interviewed per opening – Average number of candidates assessed per opening Routledge 2013

5. War for Talent Total cost of turnover – Separation costs – Replacement costs – Training costs How to Win the War and Minimize Turnover Costs? – Select candidates with natural capacity for key job requirements Routledge 2013

6. Learning Objectives Understand the answer to the question: "Are good salespeople born or made?" Define characteristics of successful salespeople Explain sales aptitude in sales performance Understand different success characteristics for different sales positions Routledge 2013

7. The Determinants of Successful Sales Performance Training and development critical determinants of future success. A strong ego, self-confidence, decisiveness, and a need for achievement must also necessary in sales force candidates. Routledge 2013

8. Variables that cause differences in performance across salespeople and the actions management can take to influence them Exhibit 8.1 Routledge 2013

9. Variables that Cause Differences in Sales Performance Factors controlled or influenced by sales managers account for the largest variance in sales performance: – Role perception – Skills – Motivation Research suggests successful salespeople are both born and made. Routledge 2013

10. Costs of Inappropriate Selection Standards Odds a salesperson will quit or be terminated in first five years of employment = 50/50 People lacking necessary personal traits/abilities tend to leave before training and experience can make them productive sales performers Many firms may spend between $7000 and $100,000 annually training a new recruit Three to twelve months before a new rep generates adequate sales to cover compensation and expenses Routledge 2013

11. Characteristics of Successful Salespeople: What Managers Seek… Enthusiasm Organizational skills Ambition Persuasiveness Communication skills General sales experience Routledge 2013

12. German – American Cross Cultural Business Differences Leadership Routledge 2013

13. Summary of the Effect of Variables on Salesperson Performance *Inappropriate or illegal in selecting a job candidate. Exhibit 8.2 Routledge 2013

14. *Inappropriate or illegal in selecting a job candidate. Summary of the Effect of Variables on Salesperson Performance Exhibit 8.2 Routledge 2013

15. *Inappropriate or illegal in selecting a job candidate. Summary of the Effect of Variables on Salesperson Performance Exhibit 8.2 Routledge 2013

16. *Inappropriate or illegal in selecting a job candidate. Summary of the Effect of Variables on Salesperson Performance Exhibit 8.2 Routledge 2013

17. Overview of Research Findings Demographic and Physical Variables Gender and Race Social Changes Have Improved Employment Opportunities Routledge 2013

18. Social Changes Have Improved Employment Opportunities Recent data suggests women account for approximately 25% of sales reps and hold less than 20% of sales management positions There are still compensation issues for woman Perception that older salespeople lack energy is not supported by research Positive trends in employment of women and minorities in recent years Routledge 2013

19. Compensation of Men & Women in Sales & Marketing Careers Exhibit 8.3 Routledge 2013

20. Cultural Diversity & Changing Attitudes Growing numbers of successful minority salespeople and sales managers provides strong evidence of performance capabilities Minority salespeople have no major difficulties in gaining access to customers Saleswomen have shown no difference in productivity from male counterparts; however, there are still surveys that indicate some managers preference for working with salesmen Research suggests variations in sales performance are greater within groups than between groups Routledge 2013

21. Physical Characteristics & Customer Similarity Studies often hypothesize that salespeople are most successful when they are dealing with prospects that are similar to themselves in demographics, personality traits, and attitudes Fundamental issues with this: 1.Nearly impossible to implement 2.Research does not support the validity of similarity hypothesis However, physical appearance and image are important in maintaining successful relationships with clients Routledge 2013

22. Technology: Personal Image & Technology Image is important in relationships with customers and in the hiring process Personal Image Apps: – How to tie a tie – Explain proper business etiquette and dress in different countries around the world – Some apps can make your smart phone a mirror for last minute check ups A number of websites offer advice on presenting a positive self-image: – Monster.com – YouTube Routledge 2013

23. Innovation: The Educated Sales Force Nearly 2/3 of salespeople have a college degree College education demonstrated knowledge, motivation, professionalism Life experiences provide context for people dealing with customers Routledge 2013

24. Background and Experience Personal history and family background are among the best predictors of sales success, accounting for an average of 20% of the variance in performance Some background factors such as education do not show much relationship with sales performance Past sales experience does not explain difference in performance across salespeople – One study showed nearly 50% of companies prefer hiring individuals with 1 to 3 years of experience. – Only 10% of companies indicated they would hire new salespeople with less than 1 year of experience Routledge 2013

25. Aptitude Variables Variety of tests of sales aptitude developed specifically for selecting salespeople explain less than 5% of differences in sales performance Sales aptitude to predict performance varies greatly across types of sales jobs General intelligence tests, measures of verbal ability and fluency, and tests of math ability are all relatively uncorrelated sales performance Ability to think logically and display flexibility in solving problems is a good indicator of success in selling Routledge 2013

26. Personality Variables Individual personality traits explain a small percentage of the differences in salespeople’s performance (less than 5%). Types of sales job must be considered in relation to personality traits – Extroversion is positively related to retail and call centers – Introversion is positively related to B2B sales Cooperative behavior is a key characteristic for success Routledge 2013

27. Skills Variables Vocational Skills account on average for more than 9% of the variance in sales performance Differences in salespeople’s skills at preparing and delivering good sales presentations makes up 5% of differences in performance General management skills account for approximately 9% of variance in performance Lack of sales performance indicators is not surprising, salespeople and customers disagree on which skills are most critical for success Routledge 2013

28. Exhibit 8.4 The Characteristics of Salespeople Who Win Customer Trust Routledge 2013

29. Selling Different Types of Products & Services Variables that have been shown to be different across different kinds of selling environments: – Personal history and family background – Sales aptitude – Dominance – Self-esteem – Sales presentation skills – Interpersonal skills Routledge 2013

30. Types of Sales Jobs Exhibit 8.6 Routledge 2013

31. Begin recruiting and selection Develop new recruit specifications Evaluate characteristics to perform tasks and activities Analyze/describe tasks and activities Implications for Sales Management

32. Routledge 2013