Presentation Apm

8/8/2019 Presentation Apm

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SALES PERSON-SELECTIONPROCESS,COMPENSATION PLAN,TRAINING AND DEVELOPMENT


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Slection ProcessJo b A n a ly sis

M a n p o w er Pla n n in g

Jo b D e scrip tio n

Jo b S p e cifica tio n

R e cru itm e n t

S cre e n in g

S e le ctio n


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Job Analysis

It specifies the task involved inparticular job and factors which

affect job performanceTypeObjective of jobReporting relationshipRoleEnvironmentCompany rules and regulation


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Job Description

It gives the detail description of mainduties, task, responsibilities, nature

of position and principalaccountabilities


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Manpower Planning

The main aim of manpower planning isto determine existing and future

.staffing levels It has both

quantitative dimension and.qualitative requirements


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Job Specification

The main purpose of job specificationis to fit the most appropriate to the

.required job It is the purpose of job

specification to list the desirablequalities and attributes that a

.person should have to do the job


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ome o echaracteristics needed for

Sales personConfidence

Intelligence

Product knowledge

Competitors

Market knowledge

Customer knowledge

Communication skills

Company


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Recruitment

Internal applicants

Recommended by existing employees

Advertisements

Employment agencies

Educational institutions


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Screening

Pool of candidates through evaluation.


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Selection

Application forms

References

Interviews

Physical or Medical

Psychometric and other tests


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CompensatingSalespeople


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n Acceptable ratio of costs to sales force outputAcceptable ratio of costs to sales force output, ,in volume profit or other objectives, ,in volume profit or other objectives

n Encourage activities consistent with firm sEncourage activities consistent with firm s, ,overall marketing and sales force objectives, ,overall marketing and sales force objectives

and strategiesand strategiesn ,Attract and retain competent salespeople,Attract and retain competent salespeople

-thereby enhancing long term customer-thereby enhancing long term customerrelationshipsrelationships

n Be clear and be flexible enough to allowBe clear and be flexible enough to allowadjustments that facilitate administrationadjustments that facilitate administration

Goals of a Sales ForceGoals of a Sales ForceReward SystemReward System


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Compensating Salespeople

ComponentsComponents NeedsNeedsSALARY Motivate effort on non-selling activities

Adjust for differences in territory potentialReward experience and competence

COMMISSIONS Motivate a high level of selling effortEncourage sales successINCENTIVE

PAYMENTS

Direct effort toward strategic objectivesProvide additional rewards for top (Bonus) performersEncourage sales success

SALESCONTESTS

Stimulate additional effort targeted at specific short-termobjectives

PERSONALBENEFITS

Satisfy salespeoples security needsMatch competitive offers


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Fairness

Flexibility

Leads to achievement ofcompany objectives

Act as an incentive &

motivation Easy to understand

Easy to administer

CHARACTERISTICS OFCOMPENSATION PLAN

t


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ypes o ompensat onPlans

1.Financial Benefits

2.Non Financial Benefits


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Financial Benefits

Straight salary

Straight commission

Combination( Salary plus

bonus & Salary pluscommission)


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Compensating SalespeopleCompensating Salespeople

Compensation PlanCompensation Plan AdvantageAdvantage DisadvantageDisadvantage

Salary Reduced turnoverSimpleEasy to administerGood when difficult todetermine who made the

saleGood when service isrequiredPromotes long-termgoalsGood during drastic

business swingsEasier to transfersalespeople

No motivationFavors unproductivesales peopleHigh costs when salesare low


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Compensating SalespeopleCompensating Salespeople

Compensation PlanCompensation Plan AdvantageAdvantage DisadvantageDisadvantage

Commissions MotivationalRelates directly to

performanceUnlimited income

(assuming no cap)Good for savingmoney onunproductivesalespeople

Perceived fair

No loyaltyLittle securityShort range viewHigh turnover

Management hasless control


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Advantages of Frequent vs.Infrequent Incentive Payments

Frequent Payment AdvantagesFrequent Payment Advantages(Monthly/Quarterly)(Monthly/Quarterly)

Infrequent Payment AdvantagesInfrequent Payment Advantages(Semiannually/Annually)(Semiannually/Annually)

Salespeople receive frequent feedbackand rewards when selling cycle is short.Rewards are close in time proximity to the

successes that provided the reward.Strong link between successful behaviorand reward motivation increased.

Payments at bonus time are larger andhave greater impact.Performance is more stable because

short-term sales variations are smoothedover the longer time horizon.Incentives are not paid till end of year smoother cash flow.


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NONFINANCIALCOMPENSATION

Opportunity for promotionSense of accomplishment

Opportunity for personal growthRecognitionJob securitySales expenses


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Selecting Benefits

Salespeople expect cars

Insurance and travel are very

common Some plans offer a choice of

alternatives


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Dimensions of SalespersonPerformance Evaluation

BehavioralBehavioral

ProfessionalDevelopment

ProfessionalDevelopment

Resultsesults

ProfitabilityProfitability

SalespersonPerformanceSalespersonPerformance


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SALES FORCE COMPETENCIES

Sales Person: Training& Development Teachers openTeachers open

the door.the door.

You enterYou enter

by yourself.by yourself.

Chinese ProverbChinese Proverb

S S G OC SS


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SALES TRAINING PROCESS

-Follow Up Training

Planning forPlanning for

SalesSalesTrainingTraining

Developing theDeveloping theTraining ProgramTraining Program


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OBJECTIVES

Increase sales or profits

Create positive attitudes/improve morale

Improved customer relations

Reduce role conflict and ambiguity

(turnover)

Improve efficiencies (time and territory)

Introduce new products, markets, or

programs

hy Train Salespeople?hy Train Salespeople?


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Judgment of: Top

Management

SalesManagement Training

Department

Interview With: Salespeople

Customers

%8%8%3%3

%0%0

%9%9%5%5

*ETERMINING TRAINING NEEDS*ETERMINING TRAINING NEEDS

* .Percent of firms indicating they often use these assessments to determine training needs* .Percent of firms indicating they often use these assessments to determine training needs


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Performance Measures: Sales Volume

Customer Service

Other Measures: Observation of

Salespeople Attitude Surveys

%6%6%1%1

%8%8%8%8

*ETERMINING TRAINING NEEDS*ETERMINING TRAINING NEEDS

* .Percent of firms indicating they often use these assessments to determine training needs* .Percent of firms indicating they often use these assessments to determine training needs


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1.Interviewed key members or management tofind out what changes are needed inperformance of the sales force.

2.Sent an anonymous questionnaire to

customers and prospects asking: What do you expect of a salesperson in this industry?

How do salespeople disappoint you?

Which company in this industry does the best selling job?

In what ways are its salespersons better?

3.Sent a confidential questionnaire to eachsalesperson asking: What information do most of our salespersons need?

What information do you want to learn better? What skills do most of our sales ersons need to im rove?

TEPS IN PERFORMING A TRAINING ANALYSISTEPS IN PERFORMING A TRAINING ANALYSIS


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4.Did field audits (making sales calls)with 20% of the sales force?

5.Interviewed sales supervisors.

6.Discussed and agreed on trainingpriorities with management.

7.Determined trainable topics frominformation gathered in Steps 1-5.

TEPS IN PERFORMING ATEPS IN PERFORMING ARAINING ANALYSISRAINING ANALYSIS

A C t d T i i P i d


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Average Cost and Training Periodfor Sales Trainees

ConsumeronsumerIndustrialndustrial

Serviceervice

ConsumeronsumerIndustriandustria

lServiceervice

,5 3545 354,9 8939 893

,9 0609 060

.40 Months40 Months.8080Monthsonths.8080Monthsonths

Average Cost of Training for Veteran


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Average Cost of Training for VeteranSalespeople

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

- - -Under $5 $5 $25 $25 $100 $100 $250 Over $250 Million Million Million Million Million

ompany Sizeompany Size

,3 752 ,3 947 ,3 902

,5 365,4 824

ALL ATIN TRAININ


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ALL ATIN TRAININTIME

AverageProduct knowledge 35%

Market/Industry Information 15Company Orientation 10Selling Techniques 30Other topics 10

Total 100%


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80% of a new field salespersons training

should be focused on developing customer

profiles, digging out account survey data,

and building working relationshipsin thefield.

15% of time can then be invested in

learningabout how your product or service

is used by existing customers. The field is

the place to gain productknowledge, not

from an engineer or home office instructor.

- --T R A IN IN GR A IN IN G


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Only 5% of a new field salespersons time,

then, should be spent on developing selling

skills.

Again, the place to do this is face-to-face withreal customers: setting and testing real precall objectives

asking for real opportunities to do business.

Understanding what has to be done to build

selling skills can be mastered in 15 minutes.

Doing it takes years of actual, not

simulated practice.

- --T R A IN IN GR A IN IN G


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e d ia U se d in S a le s Tra in in ge d ia U se d in S a le s Tra in in g%7%7lassroom withlassroom withInstructornstructor

/orkbooks Manualsorkbooks Manuals

ole Playsole Plays

-D ROMD ROM

AudiocassettesudiocassettesInternetnternet

%4%4

%4%4

%2%2

%9%9

%4%4


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TRAINING

Level ofLevel ofEvaluation:Evaluation:

What toWhat toMeasure:Measure:

How toHow toMeasure:Measure:

When toWhen toMeasure:Measure:

Reactions:Reactions:

Are traineesAre traineessatisfied?satisfied?

PerceptionsPerceptionsof trainingof trainingCourseCourseevaluationevaluationInstructorInstructorevaluationevaluation

SurveySurveyInterviewInterview

At theAt thecompletion ofcompletion oftrainingtraining

Learning:Learning:Did the trainingDid the traininghave its intendedhave its intendedeffect?effect?

Knowledge ofKnowledge ofcourse contentcourse content

ExamsExamsSelf-assessmentSelf-assessmentInterviewInterview

At theAt thecompletion ofcompletion oftraining and attraining and atpoints in thepoints in thefuturefuture


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Behavior:Behavior:

Are theAre thesalespeople onsalespeople onthe job usingthe job usingtheir knowledgetheir knowledgeand skills on theand skills on thejob?job?

SkillsSkills

Job performanceJob performanceAbsenteeismAbsenteeismTurnoverTurnover

PerformancePerformance

indicatorsindicatorsObservationObservationManagerialManagerialassessmentassessmentSelf-assessmentSelf-assessment

Over the firstOver the first

year afteryear aftertrainingtraining

TRAINING


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Results:Results:

What effectWhat effectdoes trainingdoes traininghave on thehave on thecompany?company?

Job satisfactionJob satisfaction

CustomerCustomersatisfactionsatisfactionSalesSalesProfitsProfitsROIROI

SurveySurvey

ExperimentsExperimentsManagerialManagerialassessmentassessment

A year after theA year after the

trainingtraining

TRAINING


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Reactions: Trainees

Supervisors

Learning: Performance Pre-vs. Post-

Training

Behaviors: Supervisors

Appraisal

CustomerAppraisal

Results: Bottom Line

* ercent of firms indicating they often use these evaluations to measure trainingercent of firms indicating they often use these evaluations to measure training.esults.esults

*VALUATING TRAINING EFFECTIVENESS*VALUATING TRAINING EFFECTIVENESS

%6%6%8%8

%3%3%1%1

%4%4%1%1

%0%0


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ales Training Evaluationales Training EvaluationPracticesracticesMeasureeasure riteria Typeriteria Type mportancemportanceRankank

Trainee FeedbackTrainee Feedback ReactionReaction 11

Supervisory AppraisalSupervisory Appraisal BehaviorBehavior 22

-Self Appraisal-Self Appraisal BehaviorBehavior 33

-Bottom Line Measures-Bottom Line Measures ResultsResults 44

Customer AppraisalCustomer Appraisal BehaviorBehavior 55


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Treat all employees as potential careeremployees.

Require regular re-training.

Spend time and money generously.

Salespeople and sales managers musttake the lead in developing what goes

into the program. In times of crisis, increase, rather than

decrease, the training program.

UILDING A SALES TRAININGUILDING A SALES TRAININGPROGRAMROGRAM


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