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Chapter 17. Managing the Sales Force. PowerPoint by Karen E. James Louisiana State University - Shreveport. Objectives. Review the types of decisions firms face in designing a sales force. Learn how companies recruit, select, train, supervise, motivate, and evaluate a sales force.

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Chapter 17 l.jpg

Chapter 17

Managing the Sales Force

PowerPoint by Karen E. James

Louisiana State University - Shreveport

To accompany A Framework for Marketing Management, 2nd Edition


Objectives l.jpg
Objectives

  • Review the types of decisions firms face in designing a sales force.

  • Learn how companies recruit, select, train, supervise, motivate, and evaluate a sales force.

  • Understand how salespeople improve their selling, negotiation, and relationship-building skills.

To accompany A Framework for Marketing Management, 2nd Edition


Designing the sales force l.jpg

Deliverer

Order taker

Missionary

Technician

Demand creator

Solution vendor

Designing the Sales Force

Types of Sales Representatives

To accompany A Framework for Marketing Management, 2nd Edition


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Steps in Process

Objectives and strategy

Structure

Sales force size

Compensation

Objectives

Sales volume and profitability

Customer satisfaction

Strategy

Account manager

Type of sales force

Direct (company) or contractual

Designing the Sales Force

To accompany A Framework for Marketing Management, 2nd Edition


Designing the sales force5 l.jpg

Steps in Process

Objectives and strategy

Structure

Sales force size

Compensation

Types of sales force structures:

Territorial

Product

Market

Complex

Key accounts

Designing the Sales Force

To accompany A Framework for Marketing Management, 2nd Edition


Designing the sales force6 l.jpg

Steps in Process

Objectives and strategy

Structure

Sales force size

Compensation

Workload approach:

Group customers by volume

Establish call frequencies

Calculate total yearly sales call workload

Calculate average number of calls/year

Calculate number of sales representatives

Designing the Sales Force

To accompany A Framework for Marketing Management, 2nd Edition


Designing the sales force7 l.jpg

Steps in Process

Objectives and strategy

Structure

Sales force size

Compensation

Four components of compensation:

Fixed amount

Variable amount

Expense allowances

Benefits

Compensation plans

Straight salary

Straight commission

Combination

Designing the Sales Force

To accompany A Framework for Marketing Management, 2nd Edition


Managing the sales force l.jpg

Recruitment and selection

Training

Supervising

Motivating

Evaluating

Managing the Sales Force

Steps in Sales Force Management

To accompany A Framework for Marketing Management, 2nd Edition


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Managing the Sales Force

  • Recruiting begins with the development of selection criteria

    • Customer desired traits

    • Traits common to successful sales representatives

  • Selection criteria are publicized

  • Various selection procedures are used to evaluate candidates

To accompany A Framework for Marketing Management, 2nd Edition


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Managing the Sales Force

  • Training topics include:

    • Company background, products

    • Customer characteristics

    • Competitors’ products

    • Sales presentation techniques

    • Procedures and responsibilities

  • Training time needed and training method used vary with task complexity

To accompany A Framework for Marketing Management, 2nd Edition


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Managing the Sales Force

  • Successful firms have procedures to aid in evaluating the sales force:

    • Norms for customer calls

    • Norms for prospect calls

    • Using sales time efficiently

      • Tools include configurator software, time-and-duty analysis, greater emphasis on phone and Internet usage, greater reliance on inside sales force

To accompany A Framework for Marketing Management, 2nd Edition


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Managing the Sales Force

  • Motivating the Sales Force

    • Most valued rewards

      • Pay, promotion, personal growth, sense of accomplishment

    • Least valued rewards

      • Liking and respect, security, recognition

    • Sales quotas as motivation tools

    • Supplementary motivators

To accompany A Framework for Marketing Management, 2nd Edition


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Managing the Sales Force

  • Evaluating the Sales Force

    • Sources of information

      • Sales or call reports, personal observation, customer letters and complaints, customer surveys, other representatives

    • Formal evaluation

      • Performance comparisons

      • Knowledge assessments

To accompany A Framework for Marketing Management, 2nd Edition


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Major Aspects

Sales professionalism

Negotiation

Relationship marketing

Sales-oriented approach

Stresses high pressure techniques

Customer-oriented approach

Stresses customer problem solving

Steps in industrial selling process

Personal Selling Principles

To accompany A Framework for Marketing Management, 2nd Edition


Personal selling principles15 l.jpg

Prospecting and qualifying

Preapproach

Approach

Presentation and demonstration

Overcoming objections

Closing

Follow-up and maintenance (servicing)

Personal Selling Principles

Steps in Industrial Selling Process

To accompany A Framework for Marketing Management, 2nd Edition


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Major Aspects

Sales professionalism

Negotiation

Relationship marketing

Reps need skills for effective negotiation

Negotiation is useful when certain factors characterize the sale

Negotiation strategy

Principled

BATNA

Personal Selling Principles

To accompany A Framework for Marketing Management, 2nd Edition


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Major Aspects

Sales professionalism

Negotiation

Relationship marketing

Building long-term suppler-customer relationships has grown in importance

Companies are shifting focus away from transaction marketing to relationship marketing

Personal Selling Principles

To accompany A Framework for Marketing Management, 2nd Edition


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