Chapter 17 Managing the  Sales Force

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

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 .

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  Training topics include: – Company background.

greater reliance on inside sales force . greater emphasis on phone and Internet usage. time-and-duty analysis.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.

recognition – Least valued rewards Liking – Sales quotas as motivation tools – Supplementary motivators . promotion.Managing the Sales Force  Motivating the Sales Force – Most valued rewards Pay. sense of accomplishment and respect. security. personal growth.

Managing the Sales Force  Evaluating the Sales Force – Sources of information Sales or call reports. other representatives – Formal evaluation Performance comparisons Knowledge assessments . personal observation. customer letters and complaints. customer surveys.

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 .

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