Chapter 17

Managing the Sales Force

PowerPoint by Karen E. James Louisiana State University - Shreveport
2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 0 in Chapter 17

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.
2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 1 in Chapter 17

Designing the Sales Force

Types of Sales Representatives
 Deliverer  Order taker  Missionary
2003 Prentice Hall, Inc.

 Technician  Demand creator  Solution vendor

Slide 2 in Chapter 17

To accompany A Framework for Marketing Management, 2nd Edition

Designing the Sales Force

Steps in Process
 Objectives and strategy  Structure  Sales force size  Compensation
2003 Prentice Hall, Inc.

 Objectives
Sales volume and profitability Customer satisfaction

 Strategy
Account manager

 Type of sales force

Direct (company) or contractual
Slide 3 in Chapter 17

To accompany A Framework for Marketing Management, 2nd Edition

Designing the Sales Force

Steps in Process
 Objectives and strategy  Structure  Sales force size  Compensation
2003 Prentice Hall, Inc.

 Types of sales force structures:

Territorial Product Market Complex

 Key accounts
Slide 4 in Chapter 17

To accompany A Framework for Marketing Management, 2nd Edition

Designing the Sales Force

Steps in Process
 Objectives and strategy  Structure  Sales force size  Compensation
2003 Prentice Hall, Inc.

 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
Slide 5 in Chapter 17

To accompany A Framework for Marketing Management, 2nd Edition

Designing the Sales Force

Steps in Process
 Objectives and strategy  Structure  Sales force size  Compensation
2003 Prentice Hall, Inc.

 Four components of compensation:

Fixed amount Variable amount Expense allowances Benefits

 Compensation plans
Straight salary Straight commission Combination
Slide 6 in Chapter 17

To accompany A Framework for Marketing Management, 2nd Edition

Managing the Sales Force

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

2003 Prentice Hall, Inc.

To accompany A Framework for Marketing Management, 2nd Edition

Slide 7 in Chapter 17

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
2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 8 in Chapter 17

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
2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 9 in Chapter 17

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
To accompany A Framework for Marketing Management, 2nd Edition Slide 10 in Chapter 17

2003 Prentice Hall, Inc.

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

2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 11 in Chapter 17

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

2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 12 in Chapter 17

Personal Selling Principles

Major Aspects
 Sales professionalism  Negotiation  Relationship marketing
2003 Prentice Hall, Inc.

 Sales-oriented approach
Stresses high pressure techniques

 Customer-oriented approach
Stresses customer problem solving

 Steps in industrial selling process

Slide 13 in Chapter 17

To accompany A Framework for Marketing Management, 2nd Edition

Personal Selling Principles

Steps in Industrial Selling Process
 Prospecting and qualifying  Preapproach  Approach  Presentation and demonstration
2003 Prentice Hall, Inc.

 Overcoming objections  Closing  Follow-up and maintenance (servicing)

Slide 14 in Chapter 17

To accompany A Framework for Marketing Management, 2nd Edition

Personal Selling Principles

Major Aspects
 Sales professionalism  Negotiation  Relationship marketing
2003 Prentice Hall, Inc.

 Reps need skills for effective negotiation  Negotiation is useful when certain factors characterize the sale  Negotiation strategy
Principled BATNA
Slide 15 in Chapter 17

To accompany A Framework for Marketing Management, 2nd Edition

Personal Selling Principles

Major Aspects
 Sales professionalism  Negotiation  Relationship marketing
2003 Prentice Hall, Inc.

 Building long-term suppler-customer relationships has grown in importance  Companies are shifting focus away from transaction marketing to relationship marketing
Slide 16 in Chapter 17

To accompany A Framework for Marketing Management, 2nd Edition