9TH EDITION

Manning and Reece

CHAPTER 17
MANAGEMENT OF
THE SALES
FORCE

See "Bulding Quality Partnerships." 17-1

 LEARNING OBJECTIVES
Describe the functions of a sales manager
List and discuss the qualities of effective sales
managers
Discuss recruitment and selection of salespeople
Describe effective orientation, training, and motivation
practices
Develop understanding of selected compensation
plans
List and discuss sales performance evaluation
criteria

See "Bulding Quality Partnerships." 17-2

 SALES MANAGER DUTIES

”The sales manager typically performs

the functions of recruiting, training,
organizing, and supervising the sales
force.”

See "Bulding Quality Partnerships." 17-3

SALES MANAGEMENT FUNCTIONS

STRUCTURE

CONSIDERATION

PEAK PERFORMANCE COACH

SITUATIONAL LEADERSHIP

See "Bulding Quality Partnerships." 17-4

 STRUCTURE

1. Regular planning
2. Expectations clearly
communicated
3. Prompt, firm decisions
4. Regular performance
appraisals

See "Bulding Quality Partnerships." 17-5

 CONSIDERATION

1. Regular and effective

communication
2. Each salesperson
treated as individual
3. Reward good
performance often

See "Bulding Quality Partnerships." 17-6

 SITUATIONAL LEADERSHIP

Leader’s style should

match situation
Develop strong ethics and
character

See "Bulding Quality Partnerships." 17-7

 PEAK PERFORMANCE COACHING
1. Help salespeople
recognize need to
improve
2. Help develop their
commitment to improve
3. Explore solutions

See "Bulding Quality Partnerships." 17-8

 RECRUITMENT AND SELECTION
Determine job requirements or
specifications
Search for applicants
Select best qualified applicants
behavior

SET SPECS SEARCH SELECT

See "Bulding Quality Partnerships." 17-9

 DETERMINE JOB REQUIREMENTS

1. New or established
territory
2. New or well-established product
3. Work independently or closely
with manager
4. Likelihood of travel,
transfer, promotion

See "Bulding Quality Partnerships." 17-10

 SEARCHING FOR APPLICANTS

1. Within company
2. Colleges and universities
3. Trade and consumer
advertising
4. Employment agencies
5. Internet services/searches

See "Bulding Quality Partnerships." 17-11

 SELECTING APPLICANTS
SELECTION CRITERIA
--High motivation
--Reliability, check references
--Performance on some activity
--Knowledge of business, market,
consumers

See "Bulding Quality Partnerships." 17-12

 INTERVIEW APPLICATION:
SELL YOURSELF
What would you tell an interviewer about…
-- Yourself?
-- Your knowledge of sales process?
-- Greatest strengths and weaknesses?
-- Most boring job?
-- What was your biggest contribution at your last
job?
-- Why should he/she hire you?

See "Selling in Action" Chapter 17. 17-13

 ORIENTATION AND TRAINING

Provide orientation before

person begins work
Initiate training program
…tasks, execution, role
Often 12-18 month period

See "Bulding Quality Partnerships." 17-14

SELLING POWER

See "Bulding Quality Partnerships." 17-15

 DIMENSIONS OF FORMAL
TRAINING PROGRAM
1. Knowledge of product line,
territory, business trends,
firm’s marketing strategy
2. Attitudes toward the
company, products,
customers
3. Skills—applying selling
principles and practices

See "Bulding Quality Partnerships." 17-16

 SALES FORCE MOTIVATION
INTERNAL MOTIVATION
--Achievement, challenge, growth, advancement
--Internal motivators often have long-term positive
impact

EXTERNAL MOTIVATION
-- Sales contests, incentive plans, cash bonuses
-- Actions taken by firm to reward sales
performance

See "Bulding Quality Partnerships." 17-17

 COMPENSATION PLANS
Compensation practices vary
Usually combination of
--Direct compensation, salary and
commissions
--Indirect compensation, pension,
insurance plans, vacations

Show me the money! 17-18

COMPENSATION PLAN GUIDELINES
Define marketing objectives
Field test compensation plan
Explain plan to sales staff
Change plan as conditions warrant

Show me the money! 17-19

 FIVE COMPENSATION PLANS
Straight commission
Commission plan with
salary or draw provision
Commissions with draw or
salary plus bonus
Fixed salary plus bonus
Straight salary

Show me the money! 17-20

 AWARD/INCENTIVE PLAN BASES

Specific product movement

Percentage sales increase
New accounts gained
Increased activity…number
of new prospect calls

Show me the productivity! 17-21

COMPENSATION—QUANTITATIVE
CRITERIA
Sales volume in Amount of new
dollars account sales
Sales compared Net profit on each
with last year account
Volume by product Number of customer
or line calls made
Number of new
accounts

See "Bulding Quality Partnerships." 17-22

COMPENSATION—QUALITATIVE
CRITERIA
Attitude
Product knowledge
Communication skills
Personal experience
Customer goodwill generated
Selling skills
Initiative
Last slide Chapter 17. 17-23