Chapter 10

0011 0010 1010 1101 0001 0100 1011

Sales Training: Objectives, Techniques, and Evaluation

4

1

2
1

Learning Objectives
0011 0010 1010 1101 0001 0100 1011

• • • • • • •

Identify the key issues in sales training. Understand the objectives of sales training. Discuss the development of sales training programs. Understand the training of new sales recruits and experienced salespeople. Define the topics covered in a sales training program. Understand the various methods for conducting sales training. Discuss how to measure the costs and benefits of sales training.

4

1

2
2

Key Terms
0011 0010 1010 1101 0001 0100 1011

• • • • •

sales training analysis on-the-job training (OJT) role-playing electronic training methods sales training costs

4

1

2
3

Key Terms
0011 0010 1010 1101 0001 0100 1011

• • •

Sales training analysis (pg. 309) – A review and analysis of the training needs of the sales force designed to answer three basic questions: (1) Where in the organization is training needed? (2) What should be the content of the training program?, (3) Who needs the training? On-the-job training (OJT) (pg. 321) – It is a carefully planned process in which the new recruit learns by doing and includes coaching and feedback from management and/or experienced salespeople. Role playing (pg. 322) – Individuals (sales trainees or experienced salespeople) perform in front of others and then critiqued by management or other more experienced salespeople. Electronic training methods (pg. 322) – A variety of techniques and methodologies using electronic delivery systems. Most often these include the Internet (online training) to deliver information and provide feedback to salespeople. Sales training costs (pg. 323) – Costs associated with the development, delivery, and evaluation of sales training efforts inside the company.

4

1

2
4

0011 0010 1010 1101 0001 0100 1011

4

1

2
5

Sales Training Issues
0011 0010 1010 1101 0001 0100 1011

• • •

Who should be trained? What should be the primary emphasis in the training program? How should the training process be structured? – on-the-job training and experience? – formal and more consistent centralized program? – web-based? – instructor-based?

4

1

2
6

Sales Training Objectives
0011 0010 1010 1101 0001 0100 1011

• • • • •

Increase productivity Improve morale Lower turnover Improve customer relations Improve selling skills

4

1

2
7

Obstacles to Introducing Training
0011 0010 1010 1101 0001 0100 1011

• • • •

Top management not dedicated to sales training Lack of buy-in from frontline sales managers and salespeople Salespeople’s lack of understanding of what training is supposed to accomplish Salespeople’s lack of understanding regarding application of training to everyday tasks

4

1

2
8

Well-Designed Training Program
0011 0010 1010 1101 0001 0100 1011

• • • •

Analyzes sales force needs Sets specific, realistic, and measurable training objectives Allows for adequate development and timely, effective implementation Subjects itself to evaluation and review – What do we want to measure? – When do we want to measure? – How do we do it? What measuring tools are available? Modifies to achieve greater effectiveness

4

1

2
9

0011 0010 1010 1101 0001 0100 1011

McGraw-Hill/Irwin

10-10

Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved.

4

1

2
10

Recent Shifts in Training New Sales Recruits 0011 0010 1010 1101 0001 0100 1011

• • • • •

Companies with less than $5 million in annual sales are spending more on sales training per new hire - $5,500 worth of training per salesperson. Training in smaller companies has increased from 3.3 months to 4.4 months. Smaller companies are placing more emphasis on training than several years ago. Companies are spending time and money on training experienced salespeople Companies with more than $5 million in annual sales, are spending less money on training

Source: Christen P. Heide, Dartnell’s 30th Sales Force Compensation Survey: (Chicago: 11 Dartnell Corp., 1999)

4

1

2

0011 0010 1010 1101 0001 0100 1011

4

1

2
12

Recent Shifts in Training Experienced Sales Personnel 0011 0010 1010 1101 0001 0100 1011

• • •

Experienced sales reps are given, on average, 32.5 hours of ongoing training per year at a cost of $4,032 per rep Continuing increasing amounts of training reflects a commitment to provide ongoing learning opportunities for senior salespeople Companies are spending an increasing amount of time on product training and less on training in selling skills

Source: Christen P. Heide, Dartnell’s 30th Sales Force Compensation Survey: (Chicago: 13 Dartnell Corp., 1999)

4

1

2

0011 0010 1010 1101 0001 0100 1011

4

1

2
14

Sales Training Topics
0011 0010 1010 1101 0001 0100 1011

• • • • • • • •

Product or service knowledge Market/Industry orientation Company orientation Selling skills Time and territory management Legal and ethical issues Technology Specialized topics

4

1

2
15

Product Knowledge
0011 0010 1010 1101 0001 0100 1011

• •

Enables a salesperson to provide prospects and customers with the critical information for rational decision-making Involves – Knowing how the product is made – How the product is commonly used, and – How it should not be used. Customers often want to know how competitive products compare on – price – construction – performance – compatibility with each other Companies that produce technical products spend a greater amount of time on product knowledge

4

1

2
16

Market/Industry Orientation Topics
0011 0010 1010 1101 0001 0100 1011

• • • • • •

How a particular industry fits into the overall economy Knowledge of the industry and the economy Economic fluctuations that affect buying behavior and require adaptive selling techniques Customers' buying policies, patterns and preferences in light of competition Customers' customers and what satisfies them Needs of both wholesalers and retailers

4

1

2
17

Company Orientation Topics
0011 0010 1010 1101 0001 0100 1011

• • • •

Company polices that affect their selling activities How to handle customer requests for price adjustments, product modifications, faster delivery and different credit terms Sales manuals that cover product line information and company polices A well-prepared sales manual gives a sales representative quick answers to a customer's questions

4

1

2
18

Time and Territory Management
0011 0010 1010 1101 0001 0100 1011

• •

Sales trainees need to learn to manage time and territories 80/20 rule applies: – 20% of the customers account for – 80% of the business and – Require a direct proportion of time and attention

4

1

2
19

Legal/Ethical Issues
0011 0010 1010 1101 0001 0100 1011

• • • •

Federal law dictates corporate action or avoidance of action in areas of marketing, sales and pricing Sales personnel need to understand the federal, state and local laws that constrain their selling activities Statements made by salespeople carry both legal and ethical implications Lapses in ethical conduct often lead to legal problems

4

1

2
20

Technology
0011 0010 1010 1101 0001 0100 1011

• •

Notebook computers – Presentations – connecting to company intranet or extranet – delivering documentation quickly and accurately Home offices eliminate the need to go to another office Salesperson can be almost totally self-sufficient with – high-speed network connection – computer – printer – cell phone Effective computer use affords sales personnel more face-to-face customer contact time 21

4

1

2

Specialized Training Topics
0011 0010 1010 1101 0001 0100 1011

• • • •

Overcoming price objections Holding the line on price Working the trade show Problem solving

4

1

2
22

0011 0010 1010 1101 0001 0100 1011

4

1

2
23

0011 0010 1010 1101 0001 0100 1011

4

1

2
24

Keys for Effective OJT
0011 0010 1010 1101 0001 0100 1011

1. 2. 3. 4. 5.

Teaming - Bringing together people with different skills to address issues. Meetings - Setting aside times when employees at different levels and positions can get together and share thoughts on various topics. Customer interaction - Including customer feedback as part of the learning process. Mentoring - Providing an informal mechanism for new salespeople to interact and learn from more experienced ones. Peer-to-peer communication - Creating opportunities for salespeople to interact together for mutual learning.

Source: The Education Development Center (www.edc.org)

4

1

2
25

Classroom Training
0011 0010 1010 1101 0001 0100 1011

• • •

Trainee receives standard briefings in – product knowledge – company polices – customer and market characteristics – selling skills Formal training sessions avoid wasting executive time Classroom sessions permit use of audiovisual materials and technical resources Interaction between sales trainees builds camaraderie

4

1

2
26

Measuring the Costs and Benefits 0011 0010 1010 1101 0001 0100 1011

• •

Sales training consumes substantial time, budget and support resources Relationship between sales training and revenue is difficult to measure

4

1

2
27

Broad Benefits
0011 0010 1010 1101 0001 0100 1011

• • • • •

Improved morale Lower turnover Higher customer satisfaction Management’s commitment to quality and continuous improvement Measuring changes in skills, reactions and learning assists both new and experienced sales personnel

4

1

2
28

0011 0010 1010 1101 0001 0100 1011

4

1

2
29

0011 0010 1010 1101 0001 0100 1011

4

1

2
30

Summary
• Sales training is a varied and ongoing activity that is time-consuming and expensive. 0011 0010 1010 1101 0001 0100 1011 • Most sales managers feel that sales training is such an important activity that they require it for everybody regardless of their experience. • Some common objectives of sales training are to teach selling skills, increase productivity, improve morale, low turnover, improve customer relations, and improve time and territory management. • Industry differences account not only for variations in length but also for variations in program content. Company policies, the nature of selling job, and the types of products and services offered also contribute to differences in time spent and on topics covered. • Product knowledge receives the most attention,31 followed by selling techniques, market/industry

4

1

2

Summary
• Because of various environmental change, the content and method of sales training has 0011 0010 changed. Standard of salespeople today is a cell 1010 1101 0001 0100 1011 phone and laptop computer. They are as likely to receive training via Internet and CD-ROM as they are by another person. • Sales training is very expensive and generally considered beneficial. Accurate measurement of the benefits is difficult. It is hard to isolate the effect produced solely by sales training from those that might have been produced by other factors, such as changes in the economy or the nature of competition. Sales training provides managers with the opportunity to convey their expectations to the sales force. A well-designed training program shows the sales force how to sell. 32 • Sales managers can communicate high performance expectations through training and

4

1

2

Master your semester with Scribd & The New York Times

Special offer for students: Only $4.99/month.

Master your semester with Scribd & The New York Times

Cancel anytime.