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Continual Development of the

Salesforce: Sales Training

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Sales Training As a Crucial Investment
 General Need for Sales Training
 Due in part to:  Inadequacies of current training programs  New salespeople join the salesforce  Need is continual

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Sales Training As a Crucial Investment
 General Need for Sales Training  Company Size and Sales Training
 Larger firms have a tendency to have formalized sales training programs  Smaller firms may try to hire salespeople away from the larger firms  Product/Service Complexity and Sales Training  Service organizations are developing sales training programs

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Sales Training As a Crucial Investment
 General Need for Sales Training  Company Size and Sales Training  Level of Competitiveness and Sales Training
 Highly competitive markets require better trained salespeople

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Time and Money Investments in Sales Training
(Exhibit 7.1)
per Salesperson Company Size Under $5 million $5-$24.9 million $25-$99.9 million $100-$249.9 million Over $250 million Training Period for New Hires (Months) 4.4 4.2 3.7 1.7 3.6 Cost per Salesperson Ongoing Training (Hours per Year) 30.1 36.1 37.0 25.2 38.0 $3,752 $3,947 $3,904 $5,365 $4,824 Cost

$5,500 $8,141 $8,091 $7,400 $7,000

Training Period for New Hires Cost per Ongoing Training Cost per (Months) Salesperson (Hours per Year) Salesperson

Type of Sales Consumer Products Consumer Services Industrial Products Industrial Services Office Products Office Services

3.4 4.2 4.8 4.8 3.8 3.2

$5,354 $4,537 $9,894 $9,061 $6,269 $6,200

35.8 33.9 31.6 30.8 41.8 33.3

$4,039 $3,623 $5,149 $4,867 $4,261 $3,470

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Managing the Sales Training Process
(Figure 7.1)
Assess Sales Training Needs

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Managing the Sales Training Process
Needs Assessment
 Compares the specific performancerelated skills, attitudes, perceptions, and behaviors required for success to salesforce readiness  Why is it better to be proactive than reactive in doing a needs assessment?

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Managing the Sales Training Process
Methods of Needs Assessment
 Salesforce Audit
 "a systematic, diagnostic, prescriptive tool which can be employed on a periodic basis to identify and address sales department problems and to prevent or reduce the impact of future problems"  Is the training program adequate in light of objectives and resources?  Does the training program need revision?  Is there an ongoing training program for senior salespeople?  Does the training program contribute in a positive manner to the socialization of sales trainees?

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Managing the Sales Training Process
Methods of Needs Assessment
 Salesforce Audit  Performance Testing
 Specifies the evaluation of particular tasks or skills of the salesforce

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Managing the Sales Training Process
Methods of Needs Assessment
• Salesforce Audit • Performance Testing
    Observation Salesforce Surveys Customer Survey Job Analysis

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Managing the Sales Training Process
Typical Sales Training Needs
 Sales Techniques - "how to sell"
 Common mistakes identified by research can be prevented by proper training

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Managing the Sales Training Process
Typical Sales Training Needs
 Sales Techniques  Product Knowledge
 Benefits, applications, competitive strengths, and limitations of the product

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Managing the Sales Training Process
Typical Sales Training Needs
 Sales Techniques  Product Knowledge  Customer Knowledge
(Ex. 7.2- Sales Training for Different Types of Buyers)

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Managing the Sales Training Process
Typical Sales Training Needs
• Sales Techniques • Product Knowledge • Customer Knowledge
 Competitive Knowledge  Time and Territory Management (TTM)
 Why is TTM more important in declining, stagnant, or highly competitive industries?

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Managing the Sales Training Process
(Figure 7.1)
Assess Sales Training Needs Set Training Objectives

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Managing the Sales Training Process
Set Training Objectives
General training objectives include:
 Increase sales or profits.  Create positive attitudes and improve morale.  Assist in salesforce socialization.  Reduce role conflict and role ambiguity.  Introduce new products, markets, and promotional programs.  Provide sales support  Develop sales people for future management positions.  Ensure awareness of ethical and legal responsibilities.  Teach administrative procedures.  Minimize salesforce turnover.  Improve teamwork and cooperative efforts.

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Elements of an Objective
 What are the elements of a good objective? An example?  Why use written objectives?

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Managing the Sales Training Process
(Figure 7.1)
Assess Sales Training Needs Set Training Objectives Evaluate Training Alternatives

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Managing the Sales Training Process
Evaluate Training Alternatives
 Selecting Sales Trainers
 It is estimated that only 10% of sales training is done by external sales trainers. Why are internal trainers used most often?

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Managing the Sales Training Process
Evaluate Training Alternatives
 Selecting Sales Trainers  Evaluating Sales Training Locations
 The majority of training is conducted in the organization’s home, regional, or field sales offices.  Central training facilities .  Video broadcasting and teleconferencing

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Managing the Sales Training Process
Evaluate Training Alternatives
 Selecting Sales Trainers  Evaluating Sales Training Locations  Selecting Sales Training Methods
 Classroom/Conference Training  On-the-Job Training (OJT) Mentor Job Rotation  Behavioral Simulations Role Playing  Absorption Training Audiocassettes for use while driving

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Managing the Sales Training Process
Evaluate Training Alternatives
    Selecting Sales Trainers Evaluating Sales Training Locations Selecting Sales Training Methods Selecting Sales Training Media
 Communications and Computer Technology  Sales Pro Online, Inc.

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Managing the Sales Training Process
(Figure 7.1)
Assess Sales Training Needs Set Training Objectives Evaluate Training Alternatives Design Sales Training Program

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Managing the Sales Training Process
(Figure 7.1)
Assess Sales Training Needs Set Training Objectives Evaluate Training Alternatives Design Sales Training Program Perform Sales Training

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Managing the Sales Training Process
(Figure 7.1)
Assess Sales Training Needs Set Training Objectives Evaluate Training Alternatives Design Sales Training Program Perform Sales Training Conduct Follow-up and Evaluation

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Ethical and Legal Issues