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Effective Sales Management Strategies for Peak Performance

This chapter covers essential aspects of managing a sales force, including recruitment, training, motivation, and performance evaluation. It explores qualities of effective sales managers and various compensation plans to enhance sales team productivity. Learn key strategies to drive sales success.

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Effective Sales Management Strategies for Peak Performance

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  1. 9TH EDITION Selling Today Manning and Reece CHAPTER 17 MANAGEMENT OF THE SALES FORCE

  2. 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

  3. SALES MANAGER DUTIES ”The sales manager typically performs the functions of recruiting, training, organizing, and supervising the sales force.”

  4. SALES MANAGEMENT FUNCTIONS STRUCTURE CONSIDERATION PEAK PERFORMANCE COACH SITUATIONAL LEADERSHIP

  5. STRUCTURE • Regular planning • Expectations clearly communicated • Prompt, firm decisions • Regular performance appraisals

  6. CONSIDERATION • Regular and effective communication • Each salesperson treated as individual • Reward good performance often

  7. SITUATIONAL LEADERSHIP • Leader’s style should match situation • Develop strong ethics and character

  8. PEAK PERFORMANCE COACHING • Help salespeople recognize need to improve • Help develop their commitment to improve • Explore solutions

  9. Determine job requirements or specifications Search for applicants Select best qualified applicants behavior RECRUITMENT AND SELECTION SET SPECS SEARCH SELECT

  10. DETERMINE JOB REQUIREMENTS • New or established territory • New or well-established product • Work independently or closely with manager • Likelihood of travel, transfer, promotion

  11. SEARCHING FOR APPLICANTS • Within company • Colleges and universities • Trade and consumer advertising • Employment agencies • Internet services/searches

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

  13. 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.

  14. ORIENTATION AND TRAINING • Provide orientation before person begins work • Initiate training program …tasks, execution, role • Often 12-18 month period

  15. SELLING POWER

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

  17. 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

  18. COMPENSATION PLANS • Compensation practices vary • Usually combination of --Direct compensation, salary and commissions --Indirect compensation, pension, insurance plans, vacations Show me the money!

  19. COMPENSATION PLAN GUIDELINES • Define marketing objectives • Field test compensation plan • Explain plan to sales staff • Change plan as conditions warrant Show me the money!

  20. 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!

  21. AWARD/INCENTIVE PLAN BASES • Specific product movement • Percentage sales increase • New accounts gained • Increased activity…number of new prospect calls Show me the productivity!

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

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

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