Sales Management Tasks

8/4/2019 Sales Management Tasks

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Sales Management Tasks&

Sales Force Management


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Whos a sales-person?


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Persons who are employed to sell

merchandise in a store or in adesignated territory.


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Two-way personal communication More effective than advertising in

complex selling situations

The sales force plays a major rolein most companies

The sales force is the interfacebetween the company &customers.

ROLE OF SALESPEOPLE


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Reps versus Own Sales Force?

Whats a rep?

Representative of an organization

Also called sales rep

Can be a retailer, employer of achannel partner


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Independent Reps

Advantages

Low fixed costs(commission-based)

No need to hire Produce sales quickly

Have establishedrelationships

Disadvantages

Sell for several firms

Cost more as sales

grow Tend to push popular

items

Only call on best

accounts More difficult to control


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Company Salespeople

Advantages

Sell only your products

Can be directed to

specific accounts Can train them to sell

by company guidelines

Sell full product line

Disadvantages

High fixed costs

Takes time to hire

Costs more initially

Sales grow moreslowly


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The Personal Selling

Process


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The Selling Job Seven Tasks

Step 1: Locating andqualifying prospects

Identifying potential

customers Tradeshows often

provide excellentsource

Screening leads Can they use what you

are selling?

Do they have financialresources?


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The Selling Job Seven Tasks

Step 2: Pre-call planning

Good salesperson spends considerableamount of time planning the call

Planning includes

Finding information on past sales calls,competition, product & service

Whom to contact

Customer need analysis


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The Selling Job: Seven Tasks

Step 3: The approach

Stage where salesperson meets customer forthe first time

Step 4: The presentation

Benefits of product are presented &demonstrated

Presentation tailored to needs of prospect(adaptive selling)


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The Selling Job: Seven Tasks

Step 5: Answering objections Be prepared with counterarguments

Step 6: Closure

Ask for the order Average number of calls to close = 4

Step 7: Follow-up Help ensure customer satisfaction

Tasks include Expediting orders, taking inventories, training client

personnel, etc.


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SALESFORCE SIZE HOWMANY? Workload method

Calculate total amount of work necessaryto serve entire market

Nr of salespeople = total workload dividedby amount of work average salesperson isexpected to handle


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SALES FORCE SIZE HOWMANY? The Workload Method

Number of Salespeople =

{(number of existing customers + potential customers) x

ideal calling frequency x length of call}

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{selling time available to one salesperson}


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HOW MANY SALESPEOPLEWorkload method - example

3,000 existing + 2,000 potential clients

Called 5 x per year for 2 hrs. (incl. travel)

Available selling time per salesperson =1,000 hrs.

Size = (3,000+2,000) x 5 x 2 / 1,000 = 50


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Sales Force Turnover

Size influenced by turnover

Turnover rate = separations per year /average size of sales force

Issue

Customers prefer long-term relationships withsuppliers

Empty territories mean lost sales

High recruiting and training costs


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Sales Force Turnover

Remedies

Balancing territories

Improve financial incentives

Offer non-financial rewards (trips, trophies,recognition awards, etc.)


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Sales force Turnover

Problems of low turnover

Salespeople resting on their laurels

Overpaid


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ORGANIZING THE SALES FORCE

According to:

Geographic units

Product Companies having diverse product lines

Issue: customer called on by severalsalespeople

Customer Customers have unique purchasing

requirements


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RE- ORGANIZING SALES FORCE

Reorganization necessary as Companies grow

Customers change

Industry structure changes

Reorganizing can have negative effects onstaff morale & companys profits


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RECRUITING ANDSELECTING SALESPEOPLE

Careful recruiting can Increase overall sales force performance Reduce turnover Reduce recruiting & training costs

Recruiting involves Soliciting applications Screening candidates

Interviews In-field observation References, work history, etc.

Hiring experienced versus inexperiencedsalespeople


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Traits of Successful

Salespeople

Enthusiasm Patience

Initiative

Self-Confidence

Job Commitment Customer

Orientation

Independent

Self-Motivated

ExcellentListeners

Friendly Persistent

Attentive

Honest

InternallyMotivated

RelationshipOriented

Disciplined Hardworking

Team Players


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MOTIVATING & COMPENSATINGSALESPEOPLE Straight Salary

Advantages More control over wage levels

More control oversalespeoples activities

Easier to divide territories and

reassign people More effort on relationship-

building & other tasks that donot bring immediate revenues

Useful with long selling cycles(e.g., planes, construction)

Disadvantages No incentives for extra efforts


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MOTIVATING SALESPEOPLECommission Plans

Advantages Reward

accomplishments, nottime spent

Fair Attract better-qualified

applicants

Disadvantages Little control over

salespeople

Non-selling tasks

neglected Salespeople sell

themselves

Reluctance to haveterritories changed or

reassigned Fluctuating incomes for

salespeople


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MOTIVATING SALESPEOPLE

Most companies use combination plans:

Base salary + commission and/or bonus


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EVALUATING SALESPEOPLE

Complex

Territories differ

Vast array of jobs

Host of control measures

Qualitative versus quantitative

Input- versus output-based


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Output measures Orders

Number Size

Orders per call (batting average) Accounts

Active, new, overdue, lost

Sales To potential

To quota Per order

Margin


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Input measures

Sales calls

Expenses

Per call

Per sale

Time spent on non-selling tasks


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So who can be called a

good sales-person ?


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A good sales person is one who buildsrelationships

A good sales person does not make promiseshe/she cant keep

A good sales person listens to their customers

A good sales person is helpful, even if there isnothing to gain

A good sales person take s the initiative or goes

the extra mile

Sales Management Tasks

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