Chapter 17 Managingthe SalesForce

Objectives
Review the types of decisions firms face in designing a sales force. Learn how companies recruit, select, train, supervise, motivate, and evaluate a sales force. Understand how salespeople improve their selling, negotiation, and relationship-building skills.

Designing the Sales Force

Types of Sales Representatives
Deliverer Order taker Missionary Technician Demand creator Solution vendor

Designing the Sales Force

Steps in Process
Objectives and strategy Structure Sales force size Compensation
Objectives
Sales volume and profitability Customer satisfaction

Strategy
Account manager

Type of sales force

Direct (company) or contractual

Designing the Sales Force

Steps in Process
Objectives and strategy Structure Sales force size Compensation Types of sales force structures:
Territorial Product Market Complex

Key accounts

Designing the Sales Force

Steps in Process
Objectives and strategy Structure Sales force size Compensation
Workload approach:
Group customers by volume Establish call frequencies Calculate total yearly sales call workload Calculate average number of calls/year Calculate number of sales representatives

Designing the Sales Force

Steps in Process
Objectives and strategy Structure Sales force size Compensation
Four components of compensation:
Fixed amount Variable amount Expense allowances Benefits

Compensation plans
Straight salary Straight commission Combination

Managing the Sales Force

Steps in Sales Force Management
Recruitment and selection Training Supervising Motivating Evaluating

Managing the Sales Force

Recruiting begins with the development of selection criteria
Customer desired traits Traits common to successful sales representatives

Selection criteria are publicized Various selection procedures are used to evaluate candidates

Managing the Sales Force

Training topics include:
Company background, products Customer characteristics Competitors products Sales presentation techniques Procedures and responsibilities

Training time needed and training method used vary with task complexity

Managing the Sales Force

Successful firms have procedures to aid in evaluating the sales force:
Norms for customer calls Norms for prospect calls Using sales time efficiently
Tools

include configurator software, time-and-duty analysis, greater emphasis on phone and Internet usage, greater reliance on inside sales force

Managing the Sales Force

Motivating the Sales Force
Most valued rewards
Pay,

promotion, personal growth, sense of accomplishment and respect, security, recognition

Least valued rewards

Liking

Sales quotas as motivation tools Supplementary motivators

Managing the Sales Force

Evaluating the Sales Force
Sources of information
Sales

or call reports, personal observation, customer letters and complaints, customer surveys, other representatives

Formal evaluation
Performance

comparisons Knowledge assessments

Personal Selling Principles

Major Aspects
Sales professionalism Negotiation Relationship marketing
Sales-oriented approach
Stresses high pressure techniques

Customer-oriented approach
Stresses customer problem solving

Steps in industrial selling process

Personal Selling Principles

Steps in Industrial Selling Process
Prospecting and qualifying Preapproach Approach Presentation and demonstration Overcoming objections Closing Follow-up and maintenance (servicing)

Personal Selling Principles

Major Aspects
Sales professionalism Negotiation Relationship marketing
Reps need skills for effective negotiation Negotiation is useful when certain factors characterize the sale Negotiation strategy
Principled BATNA

Personal Selling Principles

Major Aspects
Sales professionalism Negotiation Relationship marketing
Building long-term suppler-customer relationships has grown in importance Companies are shifting focus away from transaction marketing to relationship marketing