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11 ■ Training, coaching and leading the sales team

3 The sales training programme varies from company to company because of differences in products,
markets, company policies, organisational size and trainees’ experience and ability. Discuss.
4 It is often postulated that top sales performers do not make the most effective sales managers.
Explain why this may be the case.
5 As a first-line supervisor (regional manager), several of the salespeople under your control are con-
sidering leaving the company. How would you deal with this situation?
6 A company selling industrial products to business clients has a sales force of 15 people. Five of
these are aged over 55, some of whom have been passed over for promotion and appear to have
negative views about the company and senior management. Explain how a more positive attitude
might be encouraged. What do you recommend?

Case study Edmunson Electrical Distributors

Edmunson Electrical Distributors (www.edmundson-electrical.co.uk) is a leading distributor
of electrical equipment and components with over two hundred and thirty branches in the
United Kingdom. The company is an electrical wholesaler acting as an intermediary between
manufacturers and customers. Accounts are classified according to turnover and margins
achieved. The ‘bread and butter’ of the business is the electrical contractor, who provides
high turnover but low margins. The more significant the purchases, the higher are the rebates
and discounts awarded to these customers. A second important group of customers are
hotels, hospitals and other institutional customers who provide less volume but better mar-
gins. It is company policy to maximise the turnover of each customer so that Edmunson can,
in turn, command a better price from the manufacturers. With such a wide range of product
lines and items, the company cannot afford to stock every product so their own competence
is measured not only in price but also by their service, especially delivery reliability.
The structure of the company is adapted from a US management style that uses a SPI (stan-
dard practice of initiation) to give similar accounting procedures for stocks, invoicing, ledger
entry and so on. Branches in all other respects compete with each other in terms of orders,
charges and revenues, which are the sole responsibility of the branch manager. Each branch
is a separate profit centre and operates more like a franchise since the capital is given directly
to the branch, although 19 per cent of annual profits go to the parent company. Although the
branches compete with each other, the sales representatives feel that the system is fair and
motivating. The manager is usually supported in each branch by an accountant and at least
one representative as well as buyers, telesales and store personnel and van drivers.
Branch A is one of the most successful in the group. There are several major accounts but rel-
atively few electrical contractors and competition is not well represented in the area.
Turnover is higher and costs are lower than in many other areas. The branch manager is well
respected and highly successful, the youngest within the group, and last year steered his
branch to a £3 million turnover with a profit share between the eight employees of £160,000.
This success, combined with the hunger created by the profit share, has produced a highly
motivated team. This team spirit is encouraged by the manager with open plan offices and an
easy communication style. People are allocated to tasks according to their suitability – one
salesperson actively seeking new accounts, another servicing existing accounts. All staff are
aware of the 19 per cent profit levy so they aim to beat this on all business negotiated.
However, because these figures are based on previous year’s targets, sales are in some months
held back if the increase was too great, in the knowledge this will raise next year’s figure.
Salespeople have been sent on training courses, but no qualitative targets are set for them.

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Selling in practice

Branch B is currently in financial trouble and operates in stark contrast to Branch A. In the
past two years, turnover fell by almost one-half, a stock deficit was recorded and, since
19 per cent of profit was to be paid, no profit sharing to staff was achieved. Competition is
fierce in this area, with 30 other wholesalers operating, but no involvement of salespeople in
setting targets is allowed. For example, a new recruit with 2 weeks experience was given the
task of opening 40 new accounts in 12 months. He failed and left the company. No sales
forecast is set and people are encouraged to get business wherever they can. The result is that
several people left and, after two years of disastrous results, the manager was asked to resign.
■ From the information given, what factors contributed to the diverse performances of the
two branches.
■ Analyse the leadership styles of the two managers.
■ From a company perspective, what would you recommend to senior management about
their branch operation management.

Key terms
■ autocratic style ■ laissez-faire style
■ behavioural theory (of leadership) ■ leadership
■ behavioural sales training ■ legitimate power
■ coercive power ■ paternalistic style
■ cognitive maps ■ programmed learning
■ consultative approach ■ power theory
■ contingency theory ■ referent power
■ delegation ■ reward power
■ democratic style ■ role-playing
■ expert power ■ subordinate
■ first-line supervisor ■ supervision
■ job satisfaction ■ trait theory

References
Attia, A.M., Honeycutt, E.D. and Leach, M.P. (2005) ‘A three-stage model for assessing and
improving sales force training and development’ Journal of Personal Selling and Sales
Management 25 (3): 253–68
Blake, R.R. and Mouton, J.S. (1964) The Managerial Grid Gulf Publishing: Houston, TX
Blake, R.R. and Mouton, J.S. (1978) The New Managerial Grid Gulf Publishing: Houston, TX
Challagalla, G.N. and Shervani, T.A. (1996) ‘Dimensions and types of supervisory control:
effects on salesperson performance and satisfaction’ Journal of Marketing 60 (Jan): 89–105
Churchill, G.A., Ford, N.M. and Walker, O.C. (1976) ‘Organisational climate and job and sat-
isfaction in the sales force’ Journal of Marketing Research XIII (Nov): 323–32
Corcoran, K.J., Petersen, L.K., Baitch, D.B. and Barrett, M.F. (1995) High Performance Sales
Organisations: creating competitive advantage in the global marketplace McGraw-Hill:
New York
Donaldson, B. (1995) ‘Customer Care’ in Baker, M.J. (ed.) Marketing Theory and Practice 3rd
edition Macmillan: Houndmills

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