Sales ManagementKurt Komaromi

Sales +Sales Promotion

Learning Objectives

• Gain an overview of the sales management function

• Review key responsibilities

SSP

Definitions

• The process of planning, organizing, controlling and evaluating the sales force

• "The planning, direction, and control of personal selling, including recruiting, selecting, equipping, assigning, routing, supervising, paying and motivating as these tasks apply to personal sales force." (American Marketing Association)

SSP Key Responsibilities

• Planning

• Organizing

• Recruitment

• Training

• Motivating

• Assessment

• Leadership

SSP

Sales Planning Process

Analyze Situation

Set Goals & Objectives

Forecast Sales

Develop Strategies

Allocate Resources

Implement Plan

Evaluate & Control

Source: Hair, Anderson, Mehta, Babin

SSP

Organizing the Sales Force

• Geographic

• Product

• Function

• Customer

• Market segment

Recruitment and Selection

• Determine job requirements

• Search for applicants

• Evaluate applicants

• Select best-qualifiedapplicant

SSP Finding Candidates

• University recruitment

• Referrals

• Professional networks

• Direct search

• Search firms

SSP

Selecting Candidates

• Evaluation interview

• Testing

• Reference check

• Formal offer

SSP Orientation and Training

• Provide thorough orientation before person begins work

• Initiate training program to help person achieve success

• Size of firm shouldnot dictate scopeof training

SSP

Training Topics

• Company knowledge

• Product knowledge

• Industry and competitors

• Selling skills

• Territory management

• Technology training

SSP Training Methods

• Classroom-style

• E-learning methods

• Simulation games

• Role playing

• Audiotapes, podcasts

• Mentoring and coaching

SSP

Sales Force Motivation

• Internal motivation

• Intrinsic rewards: achievement, challenge, advancement, growth, enjoyment of work

• Often have long-term positive impacts

SSP Sales Force Motivation

• External motivation

• Actions taken by firm to reward sales performance

• Sales contests, incentive plans,cash bonuses

SSP

Compensation Plans

• Compensation practices vary

• Usually combination of:

• Direct compensation: salary and commissions

• Indirect compensation: pension, insurance plans, vacations

• Expense reimbursements: car, travel, entertainment

SSP

Direct Compensations Options

• Salary - fixed amount paid in regular intervals

• Commission - % sales or gross profit generated

• Bonus - payment for achieving goals

• Combination plan

SSP

Assessing Productivity: Quantitative Criteria

• Sales volume in dollars

• Sales compared with last year

• Volume by product or line

• Number of new accounts

• Amount of new account sales

• Net profit on each account

• Number of customer calls made

SSP Assessing Productivity:

Qualitative Criteria• Attitude

• Product knowledge

• Communication skills

• Personal experience

• Customer goodwill generated

• Selling skills

• Initiative

• Team collaboration

SSP

Leadership Principles

• Hire the best people

• Provide clear expectations

• Give reps input on goals and strategies

• Remove obstacles that impede performance

• Give balanced performance feedback

• Reward and recognize achievement

SSP