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1/17

To accompany A Framework for Slide 1 in2003 Prentice Hall, Inc.

Chapter 17Chapter 17

Managing theManaging the

Sales ForceSales Force

PowerPoint by Karen E. JamesPowerPoint by Karen E. James

Louisiana State University - ShreveportLouisiana State University - Shreveport

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2/17

To accompany A Framework for Slide 2 in2003 Prentice Hall, Inc.

ObjectivesObjectives

Review the types of decisions firmsface in designing a sales force.

Learn how companies recruit, select,train, supervise, motivate, and evaluatea sales force.

Understand how salespeople improvetheir selling, negotiation, andrelationship-building skills.

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3/17

To accompany A Framework for Slide 3 in2003 Prentice Hall, Inc.

Designing the Sales ForceDesigning the Sales Force

Deliverer

Order taker Missionary

Technician

Demand creator Solution vendor

Types of Sales Representatives

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4/17

To accompany A Framework for Slide 4 in2003 Prentice Hall, Inc.

Designing the Sales ForceDesigning the Sales Force

Steps in Process

Objectives andstrategy

Structure

Sales force size

Compensation

Objectives

Sales volume and

profitability Customersatisfaction

Strategy

Account manager Type of sales force

Direct (company) orcontractual

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To accompany A Framework for Slide 5 in2003 Prentice Hall, Inc.

Designing the Sales ForceDesigning the Sales Force

Steps in Process

Objectives andstrategy

Structure

Sales force size

Compensation

Types of sales

force structures:

Territorial

Product

Market

Complex

Key accounts

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To accompany A Framework for Slide 6 in2003 Prentice Hall, Inc.

Designing the Sales ForceDesigning the Sales Force

Steps in Process

Objectives andstrategy

Structure

Sales force size

Compensation

Workload approach:

Group customers by

volume Establish callfrequencies

Calculate total yearlysales call workload

Calculate averagenumber of calls/year

Calculate number ofsales representatives

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7/17To accompany A Framework for Slide 7 in2003 Prentice Hall, Inc.

Designing the Sales ForceDesigning the Sales Force

Steps in Process

Objectives andstrategy

Structure

Sales force size

Compensation

Four components ofcompensation:

Fixed amount Variable amount

Expense allowances

Benefits

Compensation plans Straight salary

Straight commission

Combination

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8/17To accompany A Framework for Slide 8 in2003 Prentice Hall, Inc.

Managing the Sales ForceManaging the Sales Force

Recruitment

and selection

Training

Supervising

Motivating

Evaluating

Steps in Sales Force Management

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9/17To accompany A Framework for Slide 9 in2003 Prentice Hall, Inc.

Managing the Sales ForceManaging the Sales Force

Recruiting begins with thedevelopment of selection criteria

Customer desired traits Traits common to successful sales

representatives

Selection criteria are publicized Various selection procedures are

used to evaluate candidates

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10/17To accompany A Framework for Slide 10 in2003 Prentice Hall, Inc.

Managing the Sales ForceManaging 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

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11/17To accompany A Framework for Slide 11 in2003 Prentice Hall, Inc.

Managing the Sales ForceManaging the Sales Force

Successful firms have procedures toaid 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, greateremphasis on phone and Internet usage,greater reliance on inside sales force

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12/17To accompany A Framework for Slide 12 in2003 Prentice Hall, Inc.

Managing the Sales ForceManaging 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

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13/17To accompany A Framework for Slide 13 in2003 Prentice Hall, Inc.

Managing the Sales ForceManaging the Sales Force

Evaluating the Sales Force

Sources of informationSales or call reports, personal

observation, customer letters andcomplaints, customer surveys, otherrepresentatives

Formal evaluationPerformance comparisonsKnowledge assessments

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14/17To accompany A Framework for Slide 14 in

2003 Prentice Hall, Inc.

Personal Selling PrinciplesPersonal Selling Principles

Major Aspects

Sales

professionalism

Negotiation Relationship

marketing

Sales-orientedapproach

Stresses highpressure techniques

Customer-orientedapproach

Stresses customerproblem solving

Steps in industrialselling process

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15/17To accompany A Framework for Slide 15 in

2003 Prentice Hall, Inc.

Personal Selling PrinciplesPersonal Selling Principles

Prospecting andqualifying

Preapproach

Approach

Presentation anddemonstration

Overcoming

objections

Closing

Follow-up andmaintenance

(servicing)

Steps in Industrial Selling Process

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16/17To accompany A Framework for Slide 16 in

2003 Prentice Hall, Inc.

Personal Selling PrinciplesPersonal Selling Principles

Major Aspects

Sales

professionalism

Negotiation Relationship

marketing

Reps need skills for

effective negotiation

Negotiation is usefulwhen certain factors

characterize the sale

Negotiation strategy Principled

BATNA

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17/17To accompany A Framework for Slide 17 in

2003 Prentice Hall, Inc.

Personal Selling PrinciplesPersonal Selling Principles

Major Aspects

Sales

professionalism

Negotiation Relationship

marketing

Building long-termsuppler-customerrelationships hasgrown in importance

Companies areshifting focus away

from transactionmarketing torelationshipmarketing