17-1See "Bulding Quality Partnerships."
99THTH EDITION EDITION
CHAPTER 17CHAPTER 17MANAGEMENT MANAGEMENT OF THE OF THE SALES FORCESALES FORCE
Manning and Reece
See "Bulding Quality Partnerships." 17-2
LEARNING OBJECTIVES Describe the functions of a sales manager
List and discuss the qualities of effective sales managers
Discuss recruitment and selection of salespeople
Describe effective orientation, training, and motivation practices
Develop understanding of selected compensation plans
List and discuss sales performance evaluation criteria
See "Bulding Quality Partnerships." 17-3
SALES MANAGER DUTIES
”The sales manager typically performs the functions of recruiting, training, organizing, and supervising the sales force.”
See "Bulding Quality Partnerships." 17-4
SALES MANAGEMENT FUNCTIONS
STRUCTURESTRUCTURE
CONSIDERATION
PEAK PERFORMANCE COACHPEAK PERFORMANCE COACH
SITUATIONAL LEADERSHIPSITUATIONAL LEADERSHIPSITUATIONAL LEADERSHIPSITUATIONAL LEADERSHIP
See "Bulding Quality Partnerships." 17-5
STRUCTURE
1.1. Regular planningRegular planning
2.2. Expectations clearly Expectations clearly communicated communicated
3.3. Prompt, firm decisionsPrompt, firm decisions
4.4. Regular performance Regular performance appraisalsappraisals
See "Bulding Quality Partnerships." 17-6
CONSIDERATION
1.1. Regular and effective Regular and effective communicationcommunication
2.2. Each salesperson Each salesperson treated as individual treated as individual
3.3. Reward good Reward good performance oftenperformance often
See "Bulding Quality Partnerships." 17-7
SITUATIONAL LEADERSHIP
Leader’s style should Leader’s style should match situationmatch situation
Develop strong ethics Develop strong ethics and characterand character
See "Bulding Quality Partnerships." 17-8
PEAK PERFORMANCE COACHING
1.1. Help salespeople Help salespeople recognize need to recognize need to
improve improve 2.2. Help develop their Help develop their
commitment to commitment to improveimprove
3.3. Explore solutions Explore solutions
See "Bulding Quality Partnerships." 17-9
RECRUITMENT AND SELECTION
Determine job requirements or Determine job requirements or specifications specifications
Search for applicantsSearch for applicants
Select best qualified applicants Select best qualified applicants behavior behavior
SET SPECS SEARCH SELECT
See "Bulding Quality Partnerships." 17-10
DETERMINE JOB REQUIREMENTS
1.1. New or established New or established territoryterritory
2.2. New or well-established New or well-established productproduct
3.3. Work independently or Work independently or closely with managerclosely with manager
4.4. Likelihood of travel, Likelihood of travel, transfer, promotiontransfer, promotion
1.1. New or established New or established territoryterritory
2.2. New or well-established New or well-established productproduct
3.3. Work independently or Work independently or closely with managerclosely with manager
4.4. Likelihood of travel, Likelihood of travel, transfer, promotiontransfer, promotion
See "Bulding Quality Partnerships." 17-11
SEARCHING FOR APPLICANTS
1.1. Within company Within company
2.2. Colleges and universities Colleges and universities
3.3. Trade and consumer Trade and consumer advertising advertising
4.4. Employment agenciesEmployment agencies
5.5. Internet services/searchesInternet services/searches
1.1. Within company Within company
2.2. Colleges and universities Colleges and universities
3.3. Trade and consumer Trade and consumer advertising advertising
4.4. Employment agenciesEmployment agencies
5.5. Internet services/searchesInternet services/searches
See "Bulding Quality Partnerships." 17-12
SELECTING APPLICANTS
SELECTION CRITERIA SELECTION CRITERIA --High motivation--High motivation--Reliability, check --Reliability, check
referencesreferences--Performance on some --Performance on some
activityactivity--Knowledge of business, --Knowledge of business,
market, consumersmarket, consumers
SELECTION CRITERIA SELECTION CRITERIA --High motivation--High motivation--Reliability, check --Reliability, check
referencesreferences--Performance on some --Performance on some
activityactivity--Knowledge of business, --Knowledge of business,
market, consumersmarket, consumers
See "Selling in Action" Chapter 17. 17-13
INTERVIEW APPLICATION: SELL YOURSELF
What would you tell an interviewer What would you tell an interviewer about…about…-- Yourself?-- Your knowledge of sales process? -- Greatest strengths and weaknesses?-- Most boring job?-- What was your biggest contribution at your last job?-- Why should he/she hire you?
See "Bulding Quality Partnerships." 17-14
ORIENTATION AND TRAINING
Provide orientation before Provide orientation before person begins work person begins work
Initiate training program Initiate training program …tasks, execution, role …tasks, execution, role
Often 12-18 month period Often 12-18 month period
Provide orientation before Provide orientation before person begins work person begins work
Initiate training program Initiate training program …tasks, execution, role …tasks, execution, role
Often 12-18 month period Often 12-18 month period
See "Bulding Quality Partnerships." 17-15
SELLING POWER
See "Bulding Quality Partnerships." 17-16
DIMENSIONS OF FORMAL TRAINING PROGRAM
1.1. Knowledge of product line, Knowledge of product line, territory, business territory, business
trends, trends, firm’s marketing firm’s marketing strategystrategy
2.2. Attitudes toward the Attitudes toward the company, products, company, products, customerscustomers
3.3. Skills—applying selling Skills—applying selling principles and practicesprinciples and practices
1.1. Knowledge of product line, Knowledge of product line, territory, business territory, business
trends, trends, firm’s marketing firm’s marketing strategystrategy
2.2. Attitudes toward the Attitudes toward the company, products, company, products, customerscustomers
3.3. Skills—applying selling Skills—applying selling principles and practicesprinciples and practices
See "Bulding Quality Partnerships." 17-17
SALES FORCE MOTIVATION
INTERNAL MOTIVATION INTERNAL MOTIVATION --Achievement, challenge, growth, --Achievement, challenge, growth, advancementadvancement
--Internal motivators often have long-term --Internal motivators often have long-term positive impactpositive impact
EXTERNAL MOTIVATIONEXTERNAL MOTIVATION-- -- Sales contests, incentive plans, cash Sales contests, incentive plans, cash
bonuses bonuses
-- Actions taken by firm to reward sales -- Actions taken by firm to reward sales performance performance
Show me the money! 17-18
COMPENSATION PLANS
Compensation practices varyCompensation practices vary
Usually combination of Usually combination of
----Direct compensationDirect compensation, salary and , salary and commissionscommissions
----Indirect compensationIndirect compensation, pension, , pension, insurance plans, vacationsinsurance plans, vacations
Show me the money! 17-19
COMPENSATION PLAN GUIDELINES
Define marketing objectivesDefine marketing objectives
Field test compensation planField test compensation plan
Explain plan to sales staffExplain plan to sales staff
Change plan as conditions warrantChange plan as conditions warrant
Show me the money! 17-20
FIVE COMPENSATION PLANS
Straight commissionStraight commission Commission plan with Commission plan with salary or draw provisionsalary or draw provision Commissions with draw or Commissions with draw or
salary plus bonussalary plus bonus Fixed salary plus bonusFixed salary plus bonus Straight salaryStraight salary
Show me the productivity! 17-21
AWARD/INCENTIVE PLAN BASES
Specific product movementSpecific product movement
Percentage sales increasePercentage sales increase
New accounts gainedNew accounts gained
Increased activity…number Increased activity…number of new prospect calls of new prospect calls
See "Bulding Quality Partnerships." 17-22
COMPENSATION—QUANTITATIVE CRITERIA Sales volume in Sales volume in
dollarsdollars
Sales compared Sales compared with last with last
yearyear
Volume by Volume by product or lineproduct or line
Number of new Number of new accountsaccounts
Amount of new Amount of new account account
salessales
Net profit on Net profit on each each accountaccount
Number of Number of customer calls customer calls made made
Last slide Chapter 17. 17-23
COMPENSATION—QUALITATIVE CRITERIA
AttitudeAttitude
Product knowledgeProduct knowledge
Communication skillsCommunication skills
Personal experience Personal experience
Customer goodwill generatedCustomer goodwill generated
Selling skillsSelling skills
InitiativeInitiative
AttitudeAttitude
Product knowledgeProduct knowledge
Communication skillsCommunication skills
Personal experience Personal experience
Customer goodwill generatedCustomer goodwill generated
Selling skillsSelling skills
InitiativeInitiative
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