ADVERTISING AND SALES MANAGEMENT V

SALES MANAGEMENT
 Sales management is the coordination of people and resources to
effectively produce the desired goal.
 Sales management is a business discipline which is focused on the practical
application of sales techniques and the management of a firm's sales
operations.
 Sales management is the process of developing a sales force, coordinating
sales operations, and implementing sales techniques that allow a business
to consistently hit, and even surpass, its sales targets.

Sales Management – Basic Objectives

There are three basic objectives of sales management viz. increasing sales volume,
contributing to company profits and long term growth of an organization.
These are broad corporate functions to be achieved by the top management, sales
contribute a great deal in achieving them. Corporate objectives are communicated to
the marketing department who in turn passes on the responsibility to the sales
department.
Sales provides invaluable feedback to the higher management while achieving these
objectives.

Some other objectives of sales management are as

follows:
1. Revenue Generation – One of the main objectives of sales management is to
generate revenue for the organization. The sales department is solely responsible to
bring in the money.

2. Increase Sales Volume – Through efficient sales management, the organization

wishes to increase the number of units sold. This will ensure that the production
facilities do not remain idle and are utilized to the fullest.

3. Sustained Profits – Sales management has an objective of improving the profits of

the organization through effective planning, coordination and control. Sales
management strives to increase sales and reducing costs, this ensures good profits
for the organization.

4. Organization Growth – With the sustained and continuous sales management

techniques, the organization tends to gain market share and results in growth of the
organization.
5. Market Leadership – With increased sales volumes and profits, ‘sales
management’ enables an organization to become the market leader.

6. Converting Prospects to Customers – Getting prospects to become customers is

an art and a science, it requires good planning and sustained efforts. This is
accomplished through sales management.

7. Motivate the Sales Force – One of the core objectives of sales management is to
motivate the sales force. Selling is a very stressful task, achieving sales targets can
become very challenging. Therefore, the sales management task is to ensure that the
sales force is continuously motivated through proper incentives and reward systems.

8. Compliment Marketing Activities – Sales management’s task is to support the

marketing functions of the organization. Marketing and sales need to go hand in
hand to achieve the desired results.

IMPORTANT ROLE OF SALES IN AN ORGANISATION

In any organisation, the sales department plays a pivotal role in the success of the
business. The unique and important role of sales is to bridge the gap between the
potential customer’s needs and the products/services that the organisation offers
that can fulfil their needs. Here are some of the key ways in which sales impact the
organisation’s success:

Sales Lead Conversions

Salespeople bridge the gap between customer needs and the product/service that
fulfils that need. Often, salespeople are dealing with already warmed up prospects
who have an existing awareness of the company through marketing and advertising
efforts, and it’s the job of the salesperson to close the deal by introducing further
information and helping the customer make those connections.

Take for example, car sales. You typically go to a car dealership knowing you are
looking for a car. The car salesperson will typically ask you questions about your
personal life including size of your family, typical daily routine, etc. in order to gain
insight into what you would use the car for. They can then offer information about
various cars in the dealer’s range that would suit your needs and guide you in making
an informed decision about which car is the one for you.

Because salespeople interact directly with the potential customer, they have the
advantage of being able to glean personal knowledge that will aid them in delivering
their sales pitch and tailoring their offerings to their audience. This is often an
attractive aspect for customers, as they may view the salesperson as the expert,
which builds credibility and therefore trust.

Business Growth
Sales play a key role in the building of loyalty and trust between customer and
business. Trust and loyalty are the main reasons why a customer would choose to
recommend your company to a friend or family member or write a great review of
your product or service online.

Recommendations and reviews have always been valued by prospects and

customers, as they come from a third party and the perception is that the reviews
and recommendations are independent of the seller and therefore carry more
credibility. In the digital age, they are extremely influential, due to the reach and
power of social media and online media. During sales interactions, encouraging the
customer to recommend a friend or give positive feedback can have an impact on
the growth of the business through increased brand awareness and sales.

Customer Retention
Selling is a personal interaction between one human and another, which is a
powerful thing. Never underestimate the personal connection between two people,
and the potential effect this can have on your brand’s reputation.

Excellent salespeople are those that not only make the sale but create a long-lasting
impact on the customer. Long term customer relationships lead to repeat custom,
referrals and increase the brand’s reputation by word of mouth.

One of the keys to customer retention through sales is to perform sales follow-ups.
Setting up after-sales calls or meetings is a great way to maintain and build a positive
relationship and gives the customer an opportunity to feedback their experience of
the product or service. If the customer has a complaint or issue, it can be dealt with
quickly and professionally. Too often, unhappy customers will not complain, they will
simply switch their custom to another provider and won’t recommend your services
or products to others. It’s more cost-effective to retain customers than to win new
ones, so look after your existing customers well.

In conclusion, the power of sales in the continued success of an organisation is not to

be underestimated or under-used. Take advantage of the impact sales can have, not
only on revenue but on brand reputation, long term customer retention and
business growth.

RECRUITMENT
Right salesmen can help company achieve marketing objectives.

Recruitment involves searching for prospective candidates and encouraging them to

apply for the job. Vacancies are finalised, advertised and applications are collected
from interested candidates.
Problem of recruitment and selection arises when:

1. Starting a new company

2. Resigning and retiring of existing salesmen

3. Death of existing salesmen

4. Suspending of existing salesmen

5. Growth and development of company’s operations.

6. Entering into new territories

7. Developing and introducing new products

Recruitment of salesmen involves the following processes:

1. Deciding the quantity of salesforce.

2. Determination of the characteristics and qualities to be possessed by the
salesman.
3. Tapping the various sources of recruitment.
4. Careful selection of the candidates and finalising the employment.

1. Deciding the Quantity of Sales force:

Before the selection is undertaken, the Sales Manager should assess the need for
sales force in quantitative terms, e.g., how many sales men are required, based on
expansion of business and attrition due to retirement and resignation.

2. Determination of Characteristics and Qualities to Be Possessed By the

Salesforce:

Job Description/Analysis:

It is concerned with the determination of nature of duties and responsibilities

involved in performing effectively a particular job. Job description is concerned with
a job and not the individuals. It gives details of the job to be performed and the
qualities and qualifications required.

The man specification indicates the exact requirements needed for a particular job.
On the basis of nature of duties, the requirements also may change. While planning
man specification, emphasis should be given to the basic considerations.
(i) Can he do the job?

(ii) Will he do the job?

Generally speaking, the following qualities are required of a salesman:

i. General Qualities- Good personality, sound health, intelligence, honesty and

integrity of character, sociability, consistency, and power of observation.
ii. Particular Qualities- Educational qualifications, past experience, knowledge of the
product, customers and market, languages known.
iii. Technical Knowledge- Knowledge about the chemical or mechanical aspects of
the product to be sold, knowledge of legal implications involved in the sales
activities, etc.
3. Source of Recruitment of Salesforce:

After job analysis and man-specification, every possible source should be tapped to
select the most efficient salesman.
The various sources are as follows:

(a) Company’s own staff (promotion)

(b) Competing firms (not ethical — higher salary)

(c) Employment exchanges

(d) Educational institutions

(e) Situation Wanted’ columns of newspapers

(f) ‘Situation Vacant’ advertisements

(g) Casual applicants

(h) Recommended candidates.

(i) Placement agencies.

4. Selection of Salesforce:

From these sources, applications are received and screening of the applications is
made. Applications which satisfy the job descriptions and man-specifications are only
considered for selection. The selected applicants are called for psychological test. If
they fare well in the above two they will be referred from the referees mentioned by
the applicants.

If a good report is given by the references, the candidates will be called from medical
examination. If the candidates are physically fit, they will be called for final interview
and appointment order is issued. The appointment order should be clear, at least in
the following aspects: designation, salary and allowances and mode of appointment,
i.e., temporary or permanent.

SELECTION PROCESS
“Selection is a process in which candidates for employment are divided into two
classes, those who are to be offered employment and those who are not.”
In other words, “Selection is the process of picking individuals who have relevant
qualifications to fill jobs in an organization.”

IMPORTANCE
 Qualified sales people are scarce.
 Good selection improve sales force performance.
 Promotes cost savings.
 Eases other manager tasks.

SELECTION PROCESS
1. Application in blank.
2. References.
3. Preliminary interview.
4. Psychological testing.
5. Medical examination.
6. Final interview.

Following is the brief reference to each step:

1. Application in blank:
Application in blank is a written formal application submitted by the person in quest
of a job. The object of this application in blank is to get the candidate introduced to
the interviewer so that he is in a position to prepare himself as to what kind of
questions he is to ask to size-up the candidate. It enables the sales selection
committee to weed out undesirable candidates at the very outset.

2. References:
The candidate is asked to give references of persons that guarantee of his integrity.
The number of references may be two or three. The reference relates his character,
educational career, past service or experience.

Here, the sales manager is to get confidential reports about the candidate and verify
the statements made by the candidate and the referee or referees. To get first-hand
and frank information about the candidate, the selection panel should have face to
face telephone contacts, discussions and deliberations.

3. Preliminary interview:
Interview is, by far the most important part of selection procedure. The panel of
experts decides the number of candidates to be called for interview and cards or
letters are sent to the candidates well in advance. Interview is both a formal and
informal talk and the conversation between the interviewers and interviewee.
Since, it is a crucial point in selection process; the interviewer is to be sympathetic,
receptive, accommodative and interested in the problems of the candidate. The
purpose of interview is to form the opinion of applicant’s appearance, bearing,
poise, voice, resourcefulness and the philosophy of selling.

4. Psychological testing:
Testing represents an additional tool in the kit of selection panel. The psychological
tests operate on the common theory that human behaviour can be well forecasted
by sampling.

Tests create situations in which an applicant reacts and such reactions are
considered as replica of his behaviour in the work area for which he has applied.
Divulging the weakness of candidate is the basic tenet of a test.

In case of selection, two types of tests are held namely, ‘personality’ and ‘aptitude’.
Personality tests gauge whether the candidate has good sales personality a
congregation of physical, mental, character and social qualities.
On the other hand, aptitude tests measure his aptitudes in the field of selling such as
self-discipline, sales motivation resistance to discouragement, acceptance and
appreciation of criticisms, diplomacy, tact, controlled aggressiveness, emotional
stability and so on.

5. Medical examination:
Confirmation of physical fitness demands that every promising or likely candidate to
be selected is to undergo a medical test. Invariably, everyone in this world is
suffering from one kind of disease or the other. The salesman’s job needs physical
fitness in addition to mental.

Normally, persons with high blood pressure, foot affliction, kidney and heart
troubles, tuberculosis, cancer etc. are not selected. It is worthwhile to have outright
rejection of such candidates than repenting at leisure.

At the same time, it is the moral responsibility of the candidate to disclose the facts
of his health conditions before it is too late to do anything good for both the parties.

6. Final interview:
A candidate, who has crossed all the above hurdles, stands on the threshold of final
interview or selection. The selection committee has, at its disposal, all the detailed
information in terms of qualifications, references, physical and psychological test
that helps to come to final decision.

The final interview is the milder one unlike the first which is bound to be wilder.
Normal, yet crucial questions are asked as to his or her willingness to accept the job,
his reliability as to continuity, if appointed. He might be asked questions as to how
he plans his work and works his plans.

Finally, selected candidates are given official letters of appointment that gives the
details of his remuneration, to whom he is to report, when and where. It also gives
other conditions to establish contractual relations between the firm and himself.

TRAINING OF SALES FORCE

Each sales organisation has the option over the variety of methods and the tools of
training the sales-force depending on the individual needs and the resource
constraints of the organisation.

These training methods may be individual or group.

A. Individual training methods:

Individual sales methods are micro-level training methods designed from the angle
of each salesman. These represent individualistic and highly personalized approach
involving direct interaction between the trainer and the trainee.
Precisely, it is a rifle training approach. These methods are a must where sales-force
to be trained is limited and needs individual intensive attention.

There are two such methods namely, on the job training and programmed
instruction:

1. On the job training:

It is that method under which salesman is given the opportunity of observing and
performing the selling job of a typical salesman. Keen observation and active
participation are the tenets of learning on the job.

The trainee is observed while he is performing the job. The trainer corrects the
trainee in case he has any pitfalls. This method being on the job is also known as field
training.

2. Programmed instruction:
Programmed instruction or learning is a linear programme of instruction in which the
total subject matter of training is broken down into certain chunks called ‘frames’
the numbered instructional units.

Each frame explains specific points, questions, problems and solutions. The trainee is
expected to learn through these frames by solving the problems and then verifying
them with the model answers or solutions. He repeats the frame till he gets correct
solution or the answer.

B. Group training methods:

Group training methods are those that are employed in training the salesmen in
group. Here, the trainees may be passive observers or listeners or can be active
participants.
The most commonly used group training methods are:

1. Lectures.
2. Discussions.

3. Role playing.

4. Sensitive training.
5. Sales demonstrations.

1. Lectures:
Lectures by the trainers or the branch managers to a group of say 15 to 25 salesmen
is the most common method of group training. Lecturing method is more suited to
teach actual information; to be effective, lectures are to be properly planned,
diligently delivered and valiantly validated. Current examples, visual aids, authentic
information make lecturing interesting and inspiring.
The special merits of a lecture as a method of sales training are saving in time,
economy, ability to reach large group and comprehensive and organized penetration
of the training material to the trainees. However, it is one way approach where
trainees are passive listeners or observers.

2. Discussions:
Discussions are possible in sales training conferences. These work best in training the
experienced salesmen. These can be group discussions and panel discussions. In case
of group discussions 15 to 25 persons come together who are to exchange their
ideas, pool experiences and work out solutions to the common problems.
The discussion matters include current selling problems such meeting price
competition, meeting objections, closing sales handling claims, and adjustments and
the like.

Group training discussions should be thoroughly planned to ensure due success. As

far as possible allow only experienced salesmen and keep attendance voluntary.

On the other hand, in case of panel discussion, there will be a leader and four to six
salesmen on the panel who follow planned discussion of a sales problem in response
to questions set by the leader.
The leader presents and explains the sales problem, calls upon each member of the
panel by rotation to comment. He closes the discussion and summarizes the views of
the panel.

3. Role playing:
Role playing or sales dramatization is another excellent method of training a group of
salesmen.

Under the method, the trainer and another salesman or salesmen working together
assume and play the roles of say salesman and different types of buyers, showing the
most effective method of demonstrating, clearing doubts or making complete sales
presentations.
The criticisms and comments by the trainer and the members are dramatized to look
like real-life situation. Usually, the situations are unrehearsed and the skilful
resistance on the part of opposing roles adds to realism and effectiveness of role
playing.

Role playing can be assigned to trainee salesmen. It helps to develop skill and
confidence through participation where he learns by doing.

4. Sensitivity training:
Sensitivity training method is perhaps the youngest of all methods. It belongs to ‘T’
Groups a highly participative learning method whose purpose is to improve trainee’s
skills in working with other people by increasing the ability to appreciate how others
are reacting to one’s own behaviour, to gauge the state of relationships between
others and carry out skilfully the behaviour required by the situation.

In precise terms, it aims at making the trainees more sensitive to their environment
and the customer’s behaviour. It involves role playing and interacting with other
member trainees so as to increase the self ability to listen and understand the
customer.
There will be post-role playing analysis in case of each role with reference to motives
instincts, actions, proactions, reactions and other remarks with a view to find out the
rationale behind other’s behaviour and suggest the ways to adjust to the same.

5. Sales-demonstrations:
Under this method, the trainer shows a salesman or group of salesmen how to
present facts, meet competition, open interviews, answer objections and conduct
demonstrations. Each salesman is expected to present information effectively about
his company, products, policies and knowledge as to how to close the sales.
After the demonstration, the trainee salesmen may be asked questions to verify
whether they have really understood the implications of the demonstration. This
method of sales training cannot be effective as in case of role playing because, latter
gives chance of fuller participation.

Controlling Of Sales Force

Sales force control involves measuring sales force performance, comparing it with
standards, detecting deviations and causes, and, if necessary, taking corrective
actions so that performance takes place as per plan.

 Effectiveness of sales force Management, to a large extent, depends on

controlling mechanism practiced by the company.
 Control keeps sales people alert, active, creative, and regular in their efforts.
 Suitable controlling system is essential to both, company and salesmen. It is
to be mentioned that very strict or very liberal controlling system is not
advisable. After analysis of nature of sales people, type of work, degree of
cooperation, and other relevant variables, an appropriate controlling system
should be designed.
  Control is not for fault-finding or punishing others, but is meant for keeping
them right. Its purpose is not to keep unnecessary watch on them, but to
prevent them make mistakes, and, if necessary, to take suitable corrective
actions.
 Sales force control includes verifying sale force performance and taking
corrective actions, if needed. It can be defined as: Sales force control involves
measuring sales force performance, comparing it with standards, detecting
deviations and causes, and, if necessary, taking corrective actions so that
performance takes place as per plan.
 For exercising control over sales force, mostly, sales volume, time, expenses,
discipline, activities, etc., are used as bases for measuring and comparing
performance.

Controlling Process:
Sales force controlling process involves four steps:

1. Setting Sales Force Standards

2. Measuring Actual Sales Force Performance
3. Comparing Actual Performance with Standards
4. Correcting Deviations and Taking Follow-up Actions

Sales Force Controlling Methods:

Several methods are used for controlling sales force efforts. Methods depend on
areas, criteria, or aspects used for measuring and comparing. In every method, the
same steps are followed.

Widely practiced methods include:

1. Establishing sales territories
2. Allocating of sales quota
3. Maintaining continuous contact with salesmen
4. Determining authorities and rights of salesmen
5. Routing and scheduling sales personnel
6. Salesmen’s reporting
7. Complaint and objection notes
8. Analyzing sales expenses
9. Observation and visits or field trips
10. Providing materials and literature such as sales literature, sales manuals, visiting
cards, order forms, showing small-shorts films to teach the way to work and behave.

Sales Territories and Sales Quotas:

Sales manager must try to know the sales field well in advance, before the
production starts. He must know the area of demand for the products and for this he
should know the habits and economic position of the customers; and the type of
demand and quality of products usually in demand. In short, a detailed study of
consumers is important. The sources of information are year books, census reports,
publications, professional organisations etc.

CONTROLLING USING SALES TERRITORIES

Sales Territory:

Almost all the firms divide their markets, after the sales field is located into different
territories. Sales territory is a particular grouping of customers and prospects
assigned to a salesman. A sales territory is a geographical area which contains
present and potential customers, who can be served effectively and economically by
a single salesman.

Its aim is to facilitate management’s task in matching sales efforts with the sales
opportunities. An efficient salesman can successfully discharge his duties and
responsibilities if the territory allotted to him is of workable and suitable size. A good
sales planning is based on sales territory, rather than taking the whole market area.

That is, the market of a firm’s product is divided into small segments or territories or
areas, so that each territory can be allotted to each salesman.

When allotting perfect sales territories, which have been planned carefully, the
following objectives are aimed for the reasons thereof:

1. Sales effort can be fruited more effectively in the assigned territory.

2. It is possible to have increased market coverage, not losing the orders to

competitors. He meets the competition wisely as it is pre-planned, because he
knows the local condition.

3. It prevents the duplication or overlapping sales efforts.

4. Headquarters of each sales territory can be located in a place, where greater

number of customers are located.

5. Work load for each salesman can equitably be distributed, in terms of sales
volume.

Other Aims:

6. A good territorial allocation brings higher sales volume at lower sales expenses.

7. The activities of salesman can easily be controlled, more effectively, by the sales
manager through comparisons of selling opportunities.
8. A control of selling expenses is possible and at the same time it increases the sales
volume.

9. It is a good basis to evaluate the salesman’s performance.

10.Disparities in the work load can be known and be rectified easily.

11. A salesman can gain good knowledge over his territory, in respect of local
problems and the existing competition.

12. The duties and responsibilities of each salesman can easily be defined, and thus
salesman becomes more duty-conscious.

13. To bring co-ordination of personal selling and advertising efforts more

beneficially, territorial assignment to each salesman is a must.

When allocation of sales territories takes place, the following factors may be looked
into:

1. Equal earnings should be facilitated among all the salesmen.

2. Sales territory planning should aim in reducing the expenses i.e., cost of travelling.

3. Work load must be justifiable to all; more or less equal work load.

4. It should be flexible, by giving room to the day to day changes.

5. A new salesman should not be given independent territory.

Apart from these, before the allocation of sales territories, the sales manager has to
consider:

1. Density of potential customers

2. Distribution method

3. Degree of competition

4. Nature and type of product

5. Nature of demand-seasonal or regular

6. Administration facility

7. Equal work load

8. Frequency of contact with the customers

9. Knowledge of Government regulations

10. Facilities of transport available

11. Abilities of salesmen

12 Number of salesmen available

13. Facilities of communication means

14. Time needed to make a sale

15. Present volume of sales.

The territory allocation must aim at performing the activities in the most effective
and economical way for mutual benefits of salesman and the firm. A salesman is
expected to produce the best result from the area allotted, by concentrating his
activities within the area.

CONTROLLING USING SALES QUOTAS

Sales Quota:
Apart from the allocation of sales territories, salesmen are further controlled by
fixing sales quota. Almost all the companies use quota system of defining and
evaluating the task expected of the salesmen. Sales quota may be defined as the
estimated volume of sales that a company expects to secure within a definite period
of time.

Quota is the amount of business, in terms of value or in terms of units of sales, which
is fixed for every salesman. It may be fixed for a geographical area to be achieved
within a definite period of time, a month or a year. Shorter the period, the better it
is. It is a target or a standard of performance that the salesman has to attain. The
quota is fixed on the basis of sales forecast. For an effective control, smaller area and
shorter period are preferred.

A sales quota, to be effective, practical and successful,

should satisfy the following:
1. Sales quota must be attainable and fair.

2. It must be scientifically calculated. It should not be too small or too big.

3. It must provide definite incentive to salesman.

4. It must be flexible.

5. It must be simple and must be fixed in consultation with the salesman.

Sales quota brings the following benefits:

1. The sales quota can be used as yardstick to assess the performance of the
salesmen.

2. It is a measuring rod with which the sales operations are directed and controlled
to more profitable channels.

3. It is possible and easier to locate strong markets and weak markets.

4. It is a device to adopt more effective compensation plans.

5. It fixes the responsibility on each salesman and so they work hard to attain the
goal. The salesmen never allow the sales to fall below the quota.

6. It facilitates sales contests and is a base.

Weaknesses:
1. In many cases the sales quota is fixed arbitrarily.

2. If situations are changed, the quota fixed may become ineffective.

3. If the quota is too small, the salesman will relax and if the quota fixed is too large
or unattainable, the salesman loses initiative.

Bases Necessary for Fixing Quota:

1. Purchasing power of the prospects.

2. Past sales figures compared by analysis.

3. Demand trend for the products.

4. Position and degree of competition prevailing.

At the end of the quota period, it is a must to measure the effectiveness of quota
by comparing the performance of salesman, in relation to the quota. To keep
salesmen’s effort on the right path, quotas can be used as a control mechanism.
Departure of sales activities from the projected quota is a main problem to the
sales management. If sales volume is not satisfactory, the fault may lie with quota
plans. Quota, as a diagnostic aid, cautions the authority to take corrective steps
and especially, when the sales volume takes a negative departure from the past
sales.

In all fairness, quota should be aimed at equitable distribution. It should be equal

for all salesmen.
 Should all the salesmen have the same quotas? The answer depends upon
the territories, which are not the same in respect of competition, extent,
customers etc. the ability of the salesman is also different.
 The ‘better’ salesman with ‘better’ territory exceeds the quota and ‘poor’
salesman with ‘poor’ territory fails to achieve even the quota. By
considering all these, fairness of the quote decision takes place.

Types of Quotas:
1. Sales volume, in value or units by product line, consumer type etc.

2. Salesmen activity, such as calls, new accounts, demonstrations, display arranged

etc.

3. Expenses quota, either in value or percentage of sales obtained.

Quota can be used as a management tool, if it is set scientifically.

Field Supervision:

Generally the sales manager or any senior sales personnel or field supervisor; are
appointed to check the activities of the salesmen so as to:

1. Know whether the salesman is doing his job in best way

2. Find out deficiencies if any

3. Make suggestions for further improvement

4. Check the procedure of orders taking

5. Evaluate the performance of salesman

6. Provide spot motivation to salesman

7. Secure maximum coverage of the market

Control aims at appraisal of salesman’s performance. It must be done periodically

and on continuing basis as to determine the compliance of policies and attainment of
targeted quota in respect of job. Supervision and control are different. Supervision
aims at direction for working and control includes supervision and evaluation of past
performance.
Routing and Scheduling:
Time must be used wisely while a salesman travels in his respective territorial area.
Salesman will be encouraged to get maximum sales by reducing the wastage of time.
Routing and scheduling is one of the techniques of controlling a salesman’s day to
day activities. A planned routing of the salesman will facilitate easy communication,
maximum territorial coverage and thereby reduce the waste time.

Management has a closer control. A clear tour plan is there and reveals route,
location of customers, transport facilities, maps etc. The planned routes and
schedules are to be followed by the salesman. The reports sent by the salesman can
be compared with the planned routes and schedules and this reveals the deviations.

Personal Contact:
Personal contacts are more effective than other methods. Sales manager himself or
through branch managers or field supervisors, exercises controls over the salesmen.
Salesmen can be assisted and inspired, and corrective steps can be taken.

Correspondence:
This method is commonly accepted and is economical. Through correspondence,
instructions are passed on to the salesmen and replies received from the salesmen.
The salesmen are supervised or controlled through letters.

Reports:
They are not in the form of letters. Printed report forms are used by the salesmen to
make reports to the sales manager. In certain cases, the report may be oral.

SALES MEETING

A sales meeting is a gathering, scheduled by the department's sales managers or

other executives. Parties involved in these meetings include members of the sales
department, other key company personnel, developers, and/or manufacturers.
The meeting may also be attended by new and/or existing clients.

 A gathering in which a product or service is being discussed, and the benefits

are outlined to the potential buyer.
  It is a coming together of a representative of the company selling the product
or the service. Usually it is in a presentation format, but it can be a telephone
call or an online meeting as well.
 During a sales meeting, the salesperson provides a description of the product
and explains the ways in which it will meet the needs of the buyer.
 It is important during the meeting, for the sales person to focus on the
features that solve the user’s problems or else he may lose the buyers
attention if the service or the product offers too many irrelevant features.
 Sales meetings, which are also called sales conferences, aren't always
structured in a formal, presentation format.
 They may take place in informal settings such as one-on-one conversations or
even conference calls. And thanks to the internet, sales meetings can also be
held online through video conferencing sites like Zoom, Skype, or Webex—as
long as participants have access to a computer or other device and an
internet or wireless connection.

Sales meetings are called for a variety of reasons and depend on the type of
company. They may be used as a way to:
 motivate staff, recognize top performers, and set department goals
 discuss new products and services in development, and give product updates
 identify challenges and problems in the department
 overcome deficiencies in sales figures
 develop strategies and improvements for new and existing products
 provide new and existing clients with company and product knowledge
including benefits of the company's offerings
For instance, financial institutions may schedule sales meetings involving personal
financial planners to discuss retirement goals, build rapport, and explain how the
investment products and fund management will meet the goals of the potential
client. Tech companies may schedule sales meetings with their staff in order to
provide demonstrations of new products and services so they are better able to sell
them to the general public.

PURPOSE OF SALES MEETING

 Recognize Accomplishments
 Brainstorming
 Market changes
 Product updates

OBJECTIVES OF SALES MEETING
 Introducing New Products
 Ideas for Higher Sales
 Reward and Recognition
 Revenue Generation
 Sales Skill Development
 Communicating Changes
  Best Practices

TYPES OF SALES MEETING

 National Sales Meeting

 Regional Sales Meeting
 Local Sales Meeting
 Remote-Control and Travelling Sales Meeting

SUCCESS OF SALES MEETING
Sales meeting are a critical component of a great sales culture- an opportunity to
build the skill of the entire team and motivate them.
In each meeting, if you provide your team with just one idea, strategy or tactic that
will improve their game, and motivate with same positive, reinforcement or reward,
you will see a gain in productivity and sales results.

Here are some key that guarantee your next sales meeting will help deliver the
results or move your sales meeting to the next level:

 Spend time focused on one key issue or single issue.

 Standard agenda.
 Recognize performance.
 Short on time and end on time.
 Motivate the team and build culture.
 Reach agreement on specific next steps.
 Allow for discussion and input.
 Allocate time at each meeting for a personal growth training activity.
 Following up on individual items after the meeting, not during the meeting.
 Keep to minimum the time allocated to supply chain issues, volume updates
etc.

STEPS FOR SUCCESSFUL SALES

 Gathering background information

 Set a realistic goal
 Prepare quality material
 Rehearse the presentation
 Build report using property observations
 Observe your prospect carefully
 Ask qualifying questions
 Present case solution
 Take action

SALES CONTEST
A sales contest is a motivational program in which reward are offered to sales
people based upon their sales and result.

In term of Maslows hierachy of need, sales contest aim to fulfill individual needs for
esteem and self-actualization, both higher order need.

Sales contest develop team spirit, boost morale (by making job more interesting),
and make personal-selling efforts more productive.

OBJECTIVES OF SALES CONTEST

 To obtain new customers
 To obtain more product displays by dealers
 To overcome a seasonal sales slump
 To secure larger order per sales call
 To get reorders
 To sell a more profitable mix of products
 To promote seasonal merchandise
 To promote special deals to distributors or dealers both
 To improve the performance of distributors sales personnel

TYPES OF SALES CONTESTS

Direct Competitor: The sales people compete against each and there is one
winner.
Team Competition: There are teams which are rewarded collectively for winning.
Goal: Rewards are given for achieving goals which may be won by more than one
person.

CONTEST PRIZES
There are four kinds of contest prize: cash, merchandise, travel and special honors or
privileges. Cash and merchandise are the most common prizes. Many sales contests
feature more than one kind of prize, for example, travel for large awards and
merchandise for lesser awards.

Cash
Merchandise
Travel
Special honors or privileges

DESIGN OF SALES CONTESTS

 Every contest should have of each contest.
 Switch up then length of each contest
 Change the prizes for every contest.
 Create a specific start and each date.
  Get your heavy hitters to play along
 Test the contest strategy.
 Don’t always use sports as a theme.
 Don’t get lazy about running sales contest.
 Measure the contest and have result available in real time.
 Create contest that the top reps doesn’t win all the time.

OBJECTIONS TO SALES CONTEST

 Sales people are paid for their services under provisions of the basic
compensation plan and there is no reason of the basic compensation plan
and there is no reason to rewards them further for performing regular duties.

 High caliber and more experienced sales personnel consider sales contest
juvenile and silly.

 Contest leads to unanticipated and undesirable results, such as increased

returns and adjustments, higher credit loss, and overstocking of dealers.
 Contest cause salespeople to bunch sales during thecompetition and sales
slumps occur both before and after the contest.

 The disappointment suffered by contest losers causes a general decline in

sales force morale.

 The competitive atmosphere generated by a sales contest weakness team

sprit.

 Contest are temporary motivating devices and if used too frequently, have a
narcotic effect. No greater result in the aggregate are obtained with contest
than without them.

SALES CONTEST IDEAS/PRACTICES

 Salesperson of the Day
 Salesperson of the Month
 Conversion Contest
 Upsell Contest
 Retention Contest
 Customer Reviews
 Sales Bingo
 Most No's
 Best Pitch
 Sales Bracket

1. Daily Prizes
Run a daily sales contest and give away a daily prize. Each day could have its own
goal (e.g. most calls on Mondays, biggest sale on Tuesdays, etc.), or you could run
the same contest every day and reward a daily prize to each winner.
2. Salesperson of the Month
Salesperson of the Month is a pretty common sales contest. Choose a top salesman,
either quantitatively by most sales or biggest deal or qualitatively based on
manager's choice. He or she would then be Salesperson of the Month and receive a
recurring prize.

3. Conversion Contest
Run a sales contest to reward the salesperson with the most lead-to-customer
conversions. You could reward this winner on a daily, monthly, or quarterly basis.

Note: Be sure to strengthen your marketing and sales alignment for this contest so
your sales team can access and convert any marketing-qualified leads (MQLs).

4. Upsell contest
This contest rewards the salesperson with the largest or most significant Upsell. This
encourages your sales team to find opportunities to make additional sales with
current customers, such as additional software or a larger subscription plan.

5. Retention Contest
Similar to the previous two contests, a retention sales contest rewards the
salesperson with who's retained the most customers or perhaps has the longest-
running customer for the month, quarter, or year. This encourages your sales team
to boost your customer retention and, therefore, your ROI.

6. Customer Reviews
This contest is a little different from the others on this list. A sales contest centered
around customer reviews essentially rewards the salesperson with the most or most
positive customer reviews. This type of contest is a bit more involved as it requires
your sales team to ask for customer reviews after sales calls or meetings. But this can
be a good thing — it encourages your team to collect live feedback and learn more
about their customers' experiences and how to improve them. Additionally, your
team can report these reviews at large sales meetings and perhaps to your broader
team and organization.

7. Winner’s Choice
A winner’s choice is where the winner gets to decide what the prize will be for either
themselves or the next month’s winner, with obvious monetary limits or choices set
by management beforehand. It’s a simple way to not have to get too creative and
the benefit is you’re less likely to have someone complain about the prize.

8. On A Boat (Boss For The Day)

It is a pretty simple prize for whatever the contest may be. The winner gets to be
boss for a day or some variation of it. You could let them take your position for the
day, sit at your desk, pick the location for the next company lunch, or run a meeting.
Either way the winner will be happy to hear all day long those two sweet words
come out of your mouth, “Yes Boss!”.

9. Sales Contest Based on Milestones

Another motivating sales contest idea is based on milestones. For example, anyone
who reaches a certain amount of sales in a month gets a prize. This can be
motivating because often the top salespeople usually get the most prizes.

When you open the field and tie it to a milestone, it gives more sales reps the
opportunity to win a prize. As a result, more sales reps become more motivated as
opposed to the few top-earning salespeople.

10. Sales Bracket

The last and perhaps most involved sales contest is a sales bracket contest. . To run
this contest, create a bracket including your entire sales team. Set a threshold for
each pairing (salesperson with most sales, biggest sale in the month, most "Nos",
etc.) and choose a winner to move on to the next round. Eventually, you'll end up
with a "championship" round that will result in an ultimate winner. The sales bracket
contest is unique as you can run a different sales contest for each round, raising the
stakes as it nears the championship round.

Other Sales contest Practices adopted in Retail stores

1. Play wheel of fortune
Goal: To increase the overall store profit by the end of the contest period.

Duration: One week

Teams: Individual

Winners: All the sales reps who have achieved or exceeded the target profit.

Prize: Whatever you want to place on the wheel. This can include clothing, gift cards,
candy, beauty products, or food.

Other options for prizes might include non-cash rewards such as an additional 20
minutes for lunch break, a paid day off, a coffee shop gift card, and whatever else
you can think of that would be relevant and appreciated by your retail staff. Be as
creative as you can. Then, let your employees spin that wheel!

Competition Theme: You know how it works—spin the wheel and pick a letter. By
the end of this one-week contest, all the employees who have achieved their target
profit or more than that get to pick a letter and spin the wheel. If the wheel stops at
the letter that they have picked then they get the corresponding prize. Give each
person 3 chances to spin the wheel.
2. Product selling contest
Goal: To promote sales of various products in the retail store.

Duration: One day contest. You can conduct product selling contests every day by
choosing a different objective and theme each day.

Teams: Individual

Winners: There can be single or multiple winners for this contest

Prize: You could give the product that they sold the most on the contest day as a
prize to the winners. The other gifting options include wine, chocolates, sports or
movie tickets, lunch, company apparel, ipads, and anything else you would like to
give away as a random prize.

Competition Theme: Product selling contests encourage your employees to sell

products enthusiastically. You can conduct various contests around product selling
every day.

For instance, you can create a contest called “everybody wins” which is a contest for
every department. If the stocking team unloads so many boxes, the floor employees
greet so many customers and the register operators make so many impulse sales. So
whenever there is a really busy day in the store, reward all your staff members for
their hard work by paying them extra prizes for the day. Each group is rewarded this
way.

3. Retail Races
Goal: To increase the sale of a specific product.

Duration: One day

Teams: Individual

Winners: The first person each day to complete a sales goal gets a prize.

Prize: Give a day off or a half-day on the next day.

Competition Theme: This fast-paced selling idea makes for a good retail race in the
store. Run this contest on the busiest days in your store. For instance, on Black
Friday, offer a prize to the first person who can make an up sale.
4. Pop that balloon
Goal: To encourage employees to achieve specific sales goals of the day.

Duration: One day (Everyday contest)

Teams: Individual

Winners: All the employees who meet their targets.

Prize: Vary the prizes so that they range from small prizes to large prizes. You can
have anything from an Ipad to Europe trip and movie ticket to company apparel.

Competition Theme: Everyone loves blowing up balloons and then popping them.
Plus, balloons are affordable so get several bags full! Before you start inflating, write
down prices on scraps of paper. Stuff one piece of paper in each balloon and blow it
up.

Each time a goal is met, let your employee choose a balloon to pop and win a prize.
They won’t know what they will win until they pop the balloon.

5. Have a Raffle
Goal: To encourage your employees to perform well and achieve their monthly
targets. It could be to increase the profit, get a certain number of positive reviews
from the customers or to increase the sale of a certain product.

Duration: One month

Teams: Individual

Winners: The employees who hit their targets will get the tickets. Then, raffle off the
prizes and pick winners at random.

Prize: Choose prizes that will motivate your employees the most.

Competition Theme: Having raffles is another great idea for a sales contest in a retail
store. Start by setting measurable goals for each member of your retail staff. Each
time they hit their target, give them a specific number of raffle tickets. When the
contest is over, raffle off the prizes and pick winners at random.

The better-performing employees will get more tickets, which means more chances
to win. Employees can also seek face-to-face feedback from their managers in this
process.
EVALUATION OF SALES FORCE

Meaning of Evaluation
An evaluation system is an organized and periodic assessment of an employee's
performance on his present job and his potential for future jobs.
Also referred to as performance evaluation or appraisal.
The aim of any performance evaluation system is to assess the effectiveness and
efficiency of employees, and prepare them for future.

Performance evaluation is an effective means for controlling the performance of

sales personnel.
It involves comparing the actual sales performance of employees with the desired
performance of sales personnel and taking corrective actions for improving their
performance.

Purpose of Evaluation

The purpose of evaluation systems is to assess as to how well the salespersons have
performed. This helps decide on matters like
 Feedback to employees
 Rewards: for sales personnel who have met the desired performance levels;
the rewards could be monetary and non-monetary; Higher commissions,
incentives, bonuses, and recognition act as motivators.
 Training needs and design of training programs: for both under- performers
and good performers; for the former to help improve their performance, and
for the latter to enhance their KSA's even further.
 Career development: Promotions, transfers, training.
 Job design and goal setting: Redefining jobs to make them more interesting,
and revising objectives in case of unrealistic targets.

Methods for Evaluation

Objective Measures: these measure employee performance in terms of units that

can be seen and quantified; quantitative measures
Subjective measures: these measure employee performance based on human
judgment, like ranking, rating, paired-comparisons, forced distributions etc.; majorly
qualitative but also quantitative (in case of ratings).

Process of Evaluation

An evaluation system comprises the following stages:

1. Establishing performance standards for sales personnel
2. Measuring actual sales performance of the sales personnel
3. Comparing actual performance against standards
4. Identifying deviations and taking corrective action

1. Establishing Performance Standards for Sales Personnel

 Performance standards are also termed as sales objectives or targets or sales
quotas
 Establishing performance standards requires understanding the nature of
jobs;
 There must be a coherence between the sales performance standards, and
what is critical for performing a job so that results can be achieved; hence a
sales job analysis is necessary.
 Establishing performance standards requires setting up of a policy framework
for performance evaluation of salespersons. Issues to be decided upon:
 who shall evaluate;
 what are the measures that shall be used: objective, subjective or both;
 when will the evaluation take place and what shall be the frequency of
evaluation
 what will be the source of information (eg. various reports: sales, customers
lost new accounts; etc.)

To formulate realistic performance standards, companies must possess

knowledge of:
 Total sales potential of the company as well as their territorial distribution
 Potential profitability of the company as regards various product classes, and
classesof customers
 Selling expenses of the company in different territories. This information
helps the company in setting required volume of sales required for the
company for reaching the break-even point and desired profitability
 Strengths, weaknesses, practices, and policies of its competitors

Performance standards may be:

 Objective (quantitative): sales volume and profit earned, average sales calls
per day, selling expense ratio etc.
 subjective (qualitative): pertaining to human behavior, eg. interpersonal
skills, punctuality, sincerity, attitude, motivation, customer service
 The performance standards would vary across sales jobs and sales positions
based on the nature of the job, selling strategies and methods involved,
conditions prevailing in the industry etc.
 Standards must be realistic, and once set, the salespersons must be
communicated about the same.

Quantitative Performance Standards:

Such standards define the nature and desired level of performance.

These have for long years, served as an effective means for the companies for
stimulating performance of employees
Different kinds of Quantitative Performance Standards
 Quotas
 Selling expense ratio
 Territorial net profit or gross margin ratio
 Territorial market share
 Sales coverage effectiveness index
 Call-frequency ratio
 Calls per day
 Order call ratio
 Average cost per call
 Average order size
 Non-selling activities
A combination of standards are used by the companies as instruments of control and
to keep the sales force motivated towards desired levels of performance.

Qualitative performance standards:

Used for such aspects which cannot be measured, and are mainly utilized for
appraising performance characteristics that affect sales results in the long term.
Executive judgment plays a critical role in measuring qualitative performance.

Quotas
These standards are expressed in absolute terms (in rupees, number of units, or
points) and apportioned to a specific marketing unit; these are specific desired levels
of sales volume, gross or net profit, selling expenses or a combination; the marketing
unit may be a salesperson, dealer, territory etc.; most popularly used standard.

Selling Expense Ratios

The standard is meant to exert control over selling expenses, as selling expenses, if
high, can dilute the net profits of a company; what is assessed is selling expenses in
relation to sales; the ratio is determined on the basis of estimates regarding both the
sales volume potential and the selling expenses in a territory, and hence these may
vary across territories, and across salespersons serving across territories.

Territorial Net Profit or Gross Margin Ratios

These standards are determined on the basis of required territorial ratio of net profit
to sales or gross margin to sales for each territory; the objective is to encourage
salespersons to sell a balanced line of products and also keep in mind the relative
profitability across different products, customer segments and territories; the
objective is that each territory must contribute towards overall profits, and all kinds
of big and small ticket items as well as high and low profit potentials must be paid
attention to

Territorial Market Share

In order to control the company's market share on a territory by territory basis, the
target market share percentages for each territory are specified, and thereafter
company sales to industry sales in each of the territories is compared to check the
effectiveness and efficiency of the salespersons; the standard serves as a basis for
maintaining a certain level of customers across each territory.

Sales Coverage Effectiveness Index

This index is calculated as a ratio of the number of customers to the total prospects
in a particular sales territory; individual standards for sales coverage are specified for
customers, across segment(s), be it class or size.

Call Frequency Ratio

This is calculated by dividing the number of sales call made to a particular class of
customers by the total number of customers in that class; the method ensures that
sales effort are made towards such customers who are the most profitable ones, and
would give huge orders.

Calls Per Day

These are standards with respect to a certain number of calls which the sales
personnel are required to make per day; this assures generation of leads, which
would help sales personnel plan their activities in the coming days and weeks; the
standard is determined based on customer density and spread, road and traffic
conditions etc. and varies across territories.

Order CallI Ratio

This is calculated by dividing the orders materialized with the number of calls made;
it is used as a measure for judging the effectiveness of sales personnel as regards
obtaining final orders; the order call ratio is set for different classes of customers;
also called the batting average ratio.

Average Cost Per Call

This standard highlights the relevance of profitable calls; mainly used as a means for
reducing calls frequency on orders that require more calls but are less profitable; the
objective is to set standards for each category of customers
Average Order Size
The average order size controls the frequency of calls that are made on different
accounts; different targets are set for different kinds of customers, be it size or
classes of customers; by determining the average order size, sales personnel are
encouraged to put more efforts towards selling to accounts from where large orders
can be obtained
Non-selling Activities

These include collection of payments from dealers and distributors, securing display
products at various locations, local advertising arrangements with dealers, etc.

2. Measuring Actual Sales Performance of the Sales Personnel

This stage involves gathering information on actual performance of sales personnel.
This would involve:
 Identifying bases of salesperson's performance evaluation and obtaining
information from relevant reports
 Bases:whether result or outcome based (quantitative) or behavior based
(qualitative), or both
 There are two basic sources of information: (i) records of the expenses
incurred by the sales executives, and (ii) weekly/monthly reports
 Field sales reports are an important source of information; these help
evaluate the performance of sales personnel.

Field Sales Reports

 A field sales report helps the sales staff in planning their activities.
 It helps provide information on salesperson's activities to the sales managers
at the branch, region and zone, and at the corporate, and these act as control
elements
 It helps the management assess as to whether the field sales executives are
meeting the required prospective clients, and the existing customers or not
 It provides information regarding performance of sales executives like sales
volume obtained, new orders secured, expenses incurred, number of calls
made by them, lead generation, activities of competitors etc.
 Field sales reports offer critical information to sales managers and sales
executives, which in turn serve as a ground for carrying out discussions on
areas where improvement is required
 Regular record visits by sales personnel to customers also helps in knowing
their complaints and suggestions, hence, identifying areas for improvement
 Field sales reports also provide information regarding changing business
conditions, and how this could affect sales, thereby giving inputs for revision
of sales objectives and targets.

Field Sales Reports as Tools of Planning and Control

Planning: these help the sales personnel plan their work, even to the extent of a day-
wise break up; these reports may relate to
(i) customer requirements and expectations, and suggestions and complaints;
(i) competitors products' and market performance and selling strategies;
(ii) channel members requirements, and complaints;
(iv) changes in the business environment at the industry, region and the branch
Control: Field sales reports help keep a check on the salespersons activities; the
sales executives at the branch, regional and national level are kept informed of what
is happening across various territories, and if sales performance is as per expected
and desired levels or not, and if or not changes need to be made in the marketing
strategies and in the selling strategies.

Types of Field Sales Reports

Progress or call reports:
A progress or call report is a record of calls made daily or weekly by sales personnel
to existing or prospective customers; it also reports on classes of reports customers
handled, and products sold; the report is prepared individually.

Expense reports:
Sales personnel are reimbursed for their travelling, boarding and lodging expenses,
and the expense report elaborates on the daily or weekly expenses incurred by the
sales personnel.

Sales work plans:

A sales work plan is a statement of customers that a sales person plans to visit in the
upcoming week or the month.
New Business Plan:
A new business plan is a record of those customers who have recently become
buyers of the company's products plans.

Potential new business report

A potential new business plan is a record of those customers who could be business
reports potential buyers of the company; indicative of lead generation and
prospecting by sales personnel.
Lost sales reports:
A lost sales report is a record of those who did not repurchase at all or who did not
repurchase the company's products, or were captured by competitors; indicative of a
salesperson's skill and ability to retain customers and to prevent them from
defecting to competitors.

Reports of complaints and/ or adjustments

The report of complaints and/or adjustments provides information regarding
customers complaints with the salespersons, or complaints pertaining to products
and how these were tackled by the sales persons; the report helps companies
identify areas for improvement.

 Such field reports are used by the immediate supervisors of sales executives
for appraisals
 The reports received from various sales executives are compiled by the sales
managers and then a consolidated report is submitted by the branch
managers to the top managers
Number of reports:
 Optimum number of reports, which must furnish the required information to
sales managers at the branch, region/zone and at the corporate
headquarters
 Reports should not be too many, as this would involve spending a lot of time
in compilation of data and preparation
  The reports must be short and consistent, yet provide all details; they must
be well-structured so that they can be analyzed and cross-comparisons can
be made
Details required in sales reports:
Amount of details required in sales report varies from firm to firm, nature of the
selling job, kinds of customer segment(s) being catered to etc..

3. Comparing Actual Performance against Standards

 Evaluation is about comparing actual performance with the standards that
were determined in the first stage
 It requires deciding on the source of information and collecting
information(Reports: call progress report, expense reports)
 It involves comparing sales person's targets or quotas to actual sales; Other
standards that are used are order call ratio, call frequency ratio, average cost
per call, calls per day; salesperson's performance with respect to non-selling
activities must also be examined.
 Both quantitative and qualitative standards may be used; Rating, ranking, and
descriptive statements may be us.
 The same standards cannot be applied in entirety to all sales personnel.
Appraisers must take into account the market conditions, the differences
across sales territories, the nature of the sales job and the selling strategies
required to sell different products in different territories, past sales and
potentials, selling expenses, existing customers and prospects, competition,
etc., and accordingly concessions need to be made.

4. Identifying Deviations and taking Corrective Action

 The evaluation stage highlights the areas for improvement
 In case the actual performance is as per the desired standards, no action
might be required
 Evaluation must result in feedback to employees on their performance:
appreciation and reward
constructive criticism and corrective action plan in case of deviations or
deficiencies.
 Sales managers look for controllable and non-controllable variations, and
would go for any and all of the following: training the sales force, redesigning
of territories, revision of targets or change their sales and marketing
strategies.

Determinants of an Effective Evaluation System

 Set clear and specific goals: difficult and challenging goals, but realistic ones
 Periodic assessment of performance as against goals
 Identify variations; assess whether variations are due to controllable or non-
controllable factors
 Develop and execute action plans for improvements.
Supervision Of Sales Force

 Managers supervise Sales Representatives to –

Improve the probability that they will make sales.

This objective should imply profitable sales; but not all Managers seem to appreciate
this point.
Managers should remember that Sales Representatives can sell a product at a loss if
the Representative spends a very high proportion of their time selling one Prospect
who has a low potential for future sales.

 This situation occurs less often in the retail selling field, but even here the
technique of tactfully and pleasantly disengaging oneself from the “window-
shopping” type proves valuable.

Need for Supervision

 Even if all Sales Representatives had appropriate motivation and could see their
own selling faults, the need would still exist for someone to decide what each
Representative should do in relation to all other personnel – in order that the
Company achieves its Sales objectives.

 Supervision primarily entails giving direction to each person’s work and in

relation to the work of others. It should ensure that people do what they should
do and do not do useless things or activities which harm overall Company
objectives. Good supervision will also:
(a) provide guidance to improve the abilities and activities of Sales Representatives
in their work and
(b) encourage and help them so that they can more easily help themselves.
 Sales Representatives have difficulties peculiar to their occupation since most of
their work involves dealing with other people. Success or failure in a sale
depends on decisions made by other people. While Representatives can
influence the decisions they must face rebuffs, disappointments, rudeness, and
“brush-offs”. Supervisors need to offer encouragement and support to maintain
high morale in their Sales force.

 Supervision of outdoor Sales Representatives has special difficulties. They work

over a wide area and often they see no one from their Company for several days
at a time. They spend a fair proportion of their time travelling, often alone.
Sometimes they have to put up with unsatisfactory accommodation and meals.
They frequently have to travel away from their families for long periods. In these
 circumstances – especially after an unsuccessful day – Sales Representatives can
rate their work as unrewarding. These difficulties mean that Managers need to
offer a high quality of supervision. The fact that travelling time restricts contact
between Supervisor and Sales Representatives makes the task even more
difficult.

Major Factors in Supervision

 Supervision in the sales field (as in all other managing activities) has the
following three activities – planning, directing and checking. In particular,
Supervisors should:
(a) Assign a definite amount of work for Representatives to do.
(b) Set required standards of performance.
(c) Evaluate each Representatives performance against the standards.
8 Supervisors should also divide the available market area into appropriate
territories, assign these territories to particular Representatives, and ensure the
Representatives set targets for sales in each of their territories.

 Four different groupings exist for standards:

(a) Volume – How much does the Sales Representative sell?
(b) Expenses – How much money does it cost to make the sales?
(c) Profit – What gross profit does each Sales Representative make?
(d) Activities – What does the Sales Representative actually do? (Examples. How
many Prospects seen? How many calls made?)

 To effectively evaluate the performance of Sales Representatives, Supervisors

must obtain details either by: (a) observation or (b) from reports and records.

 To achieve the objective – Increase the probability that Sales Representatives

will make sales, Supervisors must continually give guidance to their
Representatives. Since they cannot work with their Sales Representatives all the
time, they must try to encourage the Sales Representatives to give of their best
even when not under direct supervision.

 Supervisors aim to form such an attitude and feeling in Sales Representatives

appropriate that they “supervise” themselves. If Representatives have the
appropriate motivation and know what they should do, their own attitude and
desire for satisfaction can prove an excellent substitute for any other person’s
supervision. In the long run, it may prove more important since, even with
excellent supervision, Representatives with inappropriate motivation will not
feel amenable to supervision.

 All these factors inter-relate. Giving guidance can contribute to gaining

appropriate motivation, depending on how someone gives guidance; and
Representatives with appropriate motivation may set a higher standard of
accomplishment for themselves.
Methods of guiding Sales Representatives

 A variety of ways exist which Supervisors can use to help Sales Representatives
improve their work. A logical classification will help to consider them. Methods
available include:

(a) Personal contact with individual Sales Representatives

On the job

In the office

Over the phone

(b) Personal contact with a group of Sales Representatives Meetings, conventions,

and conferences.

(c) Personal correspondence

(d) Literature for all Sales Representatives

Manuals

Sales Bulletins House Journals

Giving Guidance by Personal Contact – On the Job

 This method provides most flexibility. Physical presence of the two persons
allows Supervisors to see the reactions of their attempts at guidance. Thus they
can adjust them accordingly. They can observe reactions to instructions and take
steps to ensure the Representatives understand them. Supervisors can influence
selling techniques soon after they have seen the Representatives use them. They
can make suggestions, praise useful approaches, point out faults in others, and
give information on new products. The personal contact also enables
Supervisors to get to know their Representatives – the way they think, their
family background and problems, and their aims and desires. Likewise the Sales
Representatives can get to know their Supervisors.

 All this information will assist to find better ways of improving a

Representative’s work and it will help Supervisors understand and predict the
reaction each Sales Representative will have to particular supervisory
approaches. Supervision in the field means that Supervisors have taken the
trouble to visit their Representatives. This point in itself will often help the
morale of such Representatives and they will feel better about accepting advice
and guidance. Although it proves expensive in travelling time, all Sales
Supervisors should spend a significant part of their time out of their offices and
 in the field. Supervisors who say they have not time to do so (even though they
class it as a good thing) cannot do an adequate job of supervision.

 Even in the retail field, Supervisors can spend too much time in their office.
Sometimes a word on the job often has a much-more-beneficial effect than
something said in a formal office interview.

Supervision in the Office

 Office Interviews imply that Representatives come to the Supervisors. In many

Companies, Sales Managers or Sales Supervisors have regular inter views with
their Sales Representatives so they can give instructions, discuss the territory of
the particular Representative and their work, and generally provide a means of
communication for whatever information the Company and the Representative
have to pass on.
 This method usually has more formality than the “on-the-job” approach. With
outdoor Representatives it allows Supervisors to plan and make the most use of
their time, rather than spending time travelling between Representatives; but it
will not substitute for getting out and seeing Representatives in action on the
job.
 For carrying out counselling interviews, especially those that involve reprimands,
the office interview may have an advantage over the on-the-job interview. It
should provide a formal setting within the firm, in a place free of interruptions.
However Supervisors should remember that a chat in a Representative’s car or
home or “over a beer” may rate as just the place if the interview requires an
informal approach and atmosphere.

Supervision by Telephone

 People can talk to each other by phone very easily. This method allows
Supervisors to give instructions quickly. However, the communication between
the parties can only use aural signals which do not always help people to know
accurately the reactions of the other party to what they have said. In general, it
helps to let Sales Representatives know that the office has an interest in their
doings and to restrict actual business to the giving and receiving of routine
information and factual details concerning territories and the Company.
Supervisors should leave controversial matters in the guidance of Sales
Representatives to a more personal contact.

Supervision by Contact with a Group of Sales Representatives

 The words: “meetings”, “conventions”, and “conferences” aim to describe all the
means of giving guidance to Representatives when they come together. This
approach saves the time of Supervisors; however, it still proves expensive to
gather Representatives together – particularly for outdoor Representatives.
 Calling Sales Representatives together in a group proves appropriate for giving
important instructions and information about the Company such as launching of
a new product or a new advertising campaign.
 In the retail field, meetings of sales staff cost considerably less. Therefore
Companies can use them more frequently.  For less formal purposes, two or
more small groups in their department may prove convenient, time saving, and
provide a means of quickly determining group reaction to a new instruction or
selling idea.

Personal Correspondence with Individual Sales Representatives

 A letter offers Supervisors a personal method of communicating with each

Representative. Supervisors should use it when it proves impractical to
communicate with each Representative by personal verbal contact.
 Letters do not prove suitable for conveying emotionally-charged information
(e.g. reprimand or criticism). Even so, some weak Supervisors do use them to tell
a Representative something which they will not discuss face-to-face. This weak
approach reaps it own reward in inappropriate motivation and lack of respect
for the Supervisor.
 Letters, however, will prove quite useful for answering specific queries where a
phone call will not prove appropriate. They give a permanent record and
Representatives can study them at leisure. In some cases a carefully-composed
letter may help to give a clearer communication than a personal interview.
 In using letters, Supervisors should avoid such faults as not signing them, writing
too many, and writing when they have no real purpose to achieve, dictating
and/or checking them so hurriedly that their meaning gets lost. The area of
effective letter writing rates as a subject on its own; but many Executives can
improve themselves quite considerably if they take the trouble to read over
their letters carefully and try to see how they would feel if they received such a
letter.

Literature for all Sales Representatives

This literature consists of sales manuals which allow Representatives to have

permanent written record of such matters as – Company history and back-ground;
policies regarding sales, returns, credits; and any other details useful for
Representatives to know. The term also applies to a manual which the outdoor Sales
Representative carries as an aid to sales. It may contain price lists, photographs, and
technical specifications. Sales bulletins, house magazines, newspapers, etc. also
prove a means of communicating with Representatives for the purpose of giving
guidance and encouraging better motivation.

Summary
 The primary aim of supervision involves – improve a Sales Representatives
ability to make profitable sales.
 No Company should eliminate supervision, but proper definition of the job and
appropriate motivation can help to reduce the amount of supervision required.
Supervisors must exercise the managerial functions of planning, directing, and
checking, so that they distribute effectively the workload, set proper targets,
and evaluate performance in comparison with these targets. They should guide
the Representatives in their work and must choose carefully the most-effective
communication method of giving this guidance.