Sales Force Management
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1 Sales Force Management Learning Objectives: Examine the function of sales management in a company. Understand what is required of a sales manager. Learn the differences in qualifications between sales managers and salespeople. Determine the specific responsibilities of the sales manager. Examine the distinctions of various compensation plans. Discuss the recruitment and selection process of salespeople. Study orientation, training, and motivation practices used by managers. Chapter 16
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Sales Force Management. Learning Objectives: Examine the function of sales management in a company. Understand what is required of a sales manager. Learn the differences in qualifications between sales managers and salespeople. Determine the specific responsibilities of the sales manager. - PowerPoint PPT Presentation
Transcript of Sales Force Management
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Sales Force Management
Learning Objectives: Examine the function of sales management in a company. Understand what is required of a sales manager. Learn the differences in qualifications between sales
managers and salespeople. Determine the specific responsibilities of the sales manager. Examine the distinctions of various compensation plans. Discuss the recruitment and selection process of
salespeople. Study orientation, training, and motivation practices used
by managers.
Chapter 16
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• Sales manager is the link :– Between sellers and customers– Between sellers and management
• Two sets of skills are needed:– Sales ability– Management ability
• As a manager rises in the hierarchy:– Less time is spent in the field with salespeople– More time is spent in administration
The Sales Management Function
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• Activities of a sales manager– Work with sales representatives– Recruitment– Training and development– Appraisal, counseling, and coaching– Administrative duties– Self-management
From Salesperson to Sales Manager
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• Ease of communication with smartphones, instant messaging, and text messaging
• Increased productivity– Cloud-based CRM system like Surado CRM Online
• Videoconferencing– Combines voice and visuals– Rapid, effective communication– File-sharing software
Sales Managers and Technology
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• Five characteristics of a great sales manager:1.Provides employees with a sense of mission2.Challenges sales team to stretch themselves3.Gives immediate feedback4.Rewards and praises individual and team
performance5.Helps employees develop their talents and careers
The Sales Manager as a Leader
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Traditional Managers:
• Stick to their old ways. Resist change• See themselves as cops or bosses• Make all the decisions on their own• Reluctant to share information• Demands action and effort. Long hours• Neglects any career planning discussions.
Assumes company will do that for them• Considers sales staff to be subordinates
Becoming a Winning Manager
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Winning Managers:• Thrives on, and relishes change• Thinks like a coach or team leader• Believes in group decision making• Anxious to share news and information• Expects progress and results to occur• Takes initiative for planning own career and assists sales
staff in planning theirs• Considers their sales reps to be an integral part of the
“team”
Becoming a Winning Manager
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1. Determine Sales Force Organization– Product organization
– Geographic organization
– Customer organization
– Determining the size of the sales team
• Use the Workload Approach
Specific Responsibilities Performed by the Sales Manager
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2. Recruit and select people– Develop a job description– Sources for recruiting
• Within the organization• Competitors• Use trade and other media advertising• Colleges, universities, technical schools• Employment agencies
– Interview and actual selection• Use several people within firm• The interview may be structured or unstructured
Specific Responsibilities Performed by the Sales Manager
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• Tips for hiring right– Skip the learning curve - Hire someone with experience in
the areas specific to your needs– Choose marketing skills over sales skills - Some sales
experience is beneficial, but marketing requires different abilities and approaches than does sales
– Seek out charismatic types - Look for someone with leadership abilities and strong communication skills
– Raid the big guns - Some of the best training can be found in Fortune 500 companies. So try to attract their best.
Specific Responsibilities Performed by the Sales Manager
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3. Determine Compensation Plan– Straight commission• Commission figured as a percentage of sales volume• Advantages and disadvantages
– Straight salary• Gives management the greatest control• Only 4.5% of firms use this as their “only” means of
compensation– Combination plans• Draw against future commissions?• Provide the salesperson with some security and some
incentive. Most plans include this.
Specific Responsibilities Performed by the Sales Manager
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• A TQM based compensation plan includes:– A customer retention bonus– Penetration of target accounts bonus– Company-wide performance bonus
Specific Responsibilities Performed by the Sales Manager
4.Provide Sales Training Designed to develop success attributes
in their sales force Field Training - travel with new sales
representative Group Sessions - Role playing is common Interactive training using multimedia
Work with 1 or 100 salespeople
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5. Supervise and Motivate– Receive continuous training in new product
technology– Guide and direct them in goal-setting– Motivation is at the very heart of supervision– The real key is to find motivated men and women
and teach them how to sell!The goal is to create a work environment within which the individuals can and do
motivate themselves.
Specific Responsibilities Performed by the Sales Manager
