Managing & Designing Sales Force

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Managing & Designing Sales Force Presented by Abhishek jangid Nidhi jani Sumit yadav Silky batla Raghunandan sharma

Transcript of Managing & Designing Sales Force

Managing & Designing Sales

Force

Presented byAbhishek jangid

Nidhi jani

Sumit yadav

Silky batla

Raghunandan sharma

Importance Of Sales

WITHOUT UNDERSTANDING THE IMPORTANCE

OF THE WORD “SALES” WE CAN NOT GET AN

EFFECTIVE RESULT IN ANY AREA WHICH IS

RELATED TO SALES.

SALES TOTALLY DEPENDS ON THE TRICKS

AND STRATEGIES

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.

Managing Sales Force

The successful

salesperson

CaresFirst for the customer

Second for the product

Designing the Sales Force

Types of Sales Representatives

Deliverer

Order taker

Missionary

Technician

Demand

creator

Solution

vendor

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

Designing the Sales Force

Steps in Process

Objectives and strategy

Structure

Sales force size

Compensation

Types of sales force

structures:

Territorial

Product

Market

Complex

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

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

Managing the Sales Force

Steps in Sales Force

Management Recruitment and

selection

Training

Supervising

Motivating

Evaluating

Recruitment and Selection

Cost &

Revenue

Traits• Customer

Appreciation

• Risk taking

• Sense of mission

• Problem solving

• High energy level

• Self Confidence

• Ego drive

• Planner

• Knowledge of

industries

Training

Knowing the company

Knowing the product

Making presentations

Understanding field

procedures &

responsibilities

Supervision

Norms for customer calls

Norms for prospect calls

Using sales time efficiently

• Preparation

• Travel

• Selling

• Administration

Motivating

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

Evaluation

Feed Forward

Feed back

• Sales reports

• Activity reports

Personal Selling Principles

Major Aspects

Sales

professionalism

Negotiation

Relationship

marketing

Prospecting

Approach

Overcoming

objection

Closing

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

Personal Selling Principles

Major Aspects

Sales

professionalism

Negotiation

Relationship

marketing

Building long-term supplier-customer relationship.

Companies are shifting focus away from transactionmarketing to relationshipmarketing

In business you don’t

Get what you deserve

You get what you negotiate

Case Study

Company background

Selling premium life style products like

water purifiers and vacuum cleaners

which bring better health to the families of

their customers.

The pioneer of Direct Sales in India.

5500 salespersons working for Eureka

Forbes.

Impressive turnover of Rs. 6.1 Billion.

Eureka Forbes is Ranked as No. 1 in

India for "Enterprise driven Knowledge

Culture" by the MAKE Awards which

are the "Oscar Awards" in the world of

Knowledge.

Strategy

Followed a marketing system very different from those adopted by most consumer product companies.

It did not set up a dealer network to sell its products but it set up a "Direct Sales"system instead.

Acquiring customers not by luring them into the stores through discounts and offers but by contacting them in the comfort of their homes.

Their slogan is 'Your friend for life' .

Designing & Managing Sales

Force For 80% of customers, They have a service centre within 5

km radius.

Believe in “Earning, Learning, Pride and Fun”.

Have an in-house "Academy of Learning" and also have tie-ups with business schools .

At Eureka Forbes, the salesman is king.

Eureka Forbes cuts out the middleman and instead uses a team of young salespeople to give in-house product demonstrations and convince consumers of a need that they didn't know they had.

Designing & Managing Sales

Force

New hires undergo three weeks of training,

including sections on grooming, product

demonstration and closing a sale.

After six months or minimum sales of 60 units

salespeople are given motorcycles to use for sales

calls.

Their salary is 60% commission based, with top

talent earning up to 24,000 rupees per month.

Designing & Managing Sales

Force

Meetings begin with a singing of the "Euranthem,"

which sounds like theme song to a television sitcom

and includes lyrics such as "We work so hard. We're

always on our Aquaguard.

Every morning employees receive a text message on

their cell phone with an inspirational message,

quotation or sales talking point.

Conclusion

In business, sales personnel serve as the link between a

company and its customers.

Designing a sales force involves decisions regarding

objectives, strategy, structure, and compensation.

Once these have been accomplished, a manager must

manage its sales representatives by

training, supervising, motivating, and evaluating .