To accompany A Framework for Marketing Management, 2nd Edition Slide 1 in Chapter 17©2003 Prentice Hall, Inc.

Chapter 17Chapter 17

Managing the Managing the Sales ForceSales Force

PowerPoint by Karen E. JamesPowerPoint by Karen E. JamesLouisiana State University - ShreveportLouisiana State University - Shreveport

To accompany A Framework for Marketing Management, 2nd Edition Slide 2 in Chapter 17©2003 Prentice Hall, Inc.

ObjectivesObjectives

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.

To accompany A Framework for Marketing Management, 2nd Edition Slide 3 in Chapter 17©2003 Prentice Hall, Inc.

Designing the Sales ForceDesigning the Sales Force

Deliverer

Order taker

Missionary

Technician

Demand creator

Solution vendor

Types of Sales Representatives

To accompany A Framework for Marketing Management, 2nd Edition Slide 4 in Chapter 17©2003 Prentice Hall, Inc.

Designing the Sales ForceDesigning 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

To accompany A Framework for Marketing Management, 2nd Edition Slide 5 in Chapter 17©2003 Prentice Hall, Inc.

Designing the Sales ForceDesigning the Sales Force

Steps in Process

Objectives and strategy

Structure

Sales force size

Compensation

Types of sales force structures:

– Territorial– Product– Market– Complex

Key accounts

To accompany A Framework for Marketing Management, 2nd Edition Slide 6 in Chapter 17©2003 Prentice Hall, Inc.

Designing the Sales ForceDesigning 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

To accompany A Framework for Marketing Management, 2nd Edition Slide 7 in Chapter 17©2003 Prentice Hall, Inc.

Designing the Sales ForceDesigning 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

To accompany A Framework for Marketing Management, 2nd Edition Slide 8 in Chapter 17©2003 Prentice Hall, Inc.

Managing the Sales ForceManaging the Sales Force

Recruitment and selection

Training

Supervising

Motivating

Evaluating

Steps in Sales Force Management

To accompany A Framework for Marketing Management, 2nd Edition Slide 9 in Chapter 17©2003 Prentice Hall, Inc.

Managing the Sales ForceManaging the Sales Force

Recruiting begins with the development of selection criteria

– Customer desired traits– Traits common to successful sales

representatives Selection criteria are publicized

Various selection procedures are used to evaluate candidates

To accompany A Framework for Marketing Management, 2nd Edition Slide 10 in Chapter 17©2003 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

To accompany A Framework for Marketing Management, 2nd Edition Slide 11 in Chapter 17©2003 Prentice Hall, Inc.

Managing the Sales ForceManaging the Sales Force

Successful firms have procedures to aid 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, greater emphasis on phone and Internet usage, greater reliance on inside sales force

To accompany A Framework for Marketing Management, 2nd Edition Slide 12 in Chapter 17©2003 Prentice Hall, Inc.

Managing the Sales ForceManaging the Sales Force

Motivating the Sales Force

– Most valued rewardsPay, promotion, personal growth, sense

of accomplishment

– Least valued rewardsLiking and respect, security, recognition

– Sales quotas as motivation tools– Supplementary motivators

To accompany A Framework for Marketing Management, 2nd Edition Slide 13 in Chapter 17©2003 Prentice Hall, Inc.

Managing the Sales ForceManaging the Sales Force

Evaluating the Sales Force

– Sources of informationSales or call reports, personal

observation, customer letters and complaints, customer surveys, other representatives

– Formal evaluationPerformance comparisonsKnowledge assessments

To accompany A Framework for Marketing Management, 2nd Edition Slide 14 in Chapter 17©2003 Prentice Hall, Inc.

Personal Selling PrinciplesPersonal Selling Principles

Major Aspects

Sales professionalism

Negotiation

Relationship marketing

Sales-oriented approach– Stresses high

pressure techniques Customer-oriented

approach– Stresses customer

problem solving Steps in industrial

selling process

To accompany A Framework for Marketing Management, 2nd Edition Slide 15 in Chapter 17©2003 Prentice Hall, Inc.

Personal Selling PrinciplesPersonal Selling Principles

Prospecting and qualifying

Preapproach

Approach

Presentation and demonstration

Overcoming objections

Closing

Follow-up and maintenance (servicing)

Steps in Industrial Selling Process

To accompany A Framework for Marketing Management, 2nd Edition Slide 16 in Chapter 17©2003 Prentice Hall, Inc.

Personal Selling PrinciplesPersonal 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

To accompany A Framework for Marketing Management, 2nd Edition Slide 17 in Chapter 17©2003 Prentice Hall, Inc.

Personal Selling PrinciplesPersonal Selling Principles

Major Aspects

Sales professionalism

Negotiation

Relationship marketing

Building long-term suppler-customer relationships has grown in importance

Companies are shifting focus away from transaction marketing to relationship marketing