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Sales Force Management

Sales Force Management. Learning Objectives: Examine the function of sales management in a company. Understand what is required of a sales manager. Learn the differences in qualifications between sales managers and salespeople. Determine the specific responsibilities of the sales manager.

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Sales Force Management

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  1. Sales Force Management Learning Objectives: • Examine the function of sales management in a company. • Understand what is required of a sales manager. • Learn the differences in qualifications between sales managers and salespeople. • Determine the specific responsibilities of the sales manager. • Examine the distinctions of various compensation plans. • Discuss the recruitment and selection process of salespeople. • Study orientation, training, and motivation practices used by managers. • Chapter 16

  2. The Sales Management Function • Sales manager is the link : • Between sellers and customers • Between sellers and management • Two sets of skills are needed: • Sales ability • Management ability • As a manager rises in the hierarchy: • Less time is spent in the field with salespeople • More time is spent in administration

  3. From Salesperson to Sales Manager • Activities of a sales manager • Work with sales representatives • Recruitment • Training and development • Appraisal, counseling, and coaching • Administrative duties • Self-management

  4. Sales Managers and Technology • Ease of communication with smartphones, instant messaging, and text messaging • Increased productivity • Cloud-based CRM system like Surado CRM Online • Videoconferencing • Combines voice and visuals • Rapid, effective communication • File-sharing software

  5. The Sales Manager as a Leader • Five characteristics of a great sales manager: • Provides employees with a sense of mission • Challenges sales team to stretch themselves • Gives immediate feedback • Rewards and praises individual and team performance • Helps employees develop their talents and careers

  6. Becoming a Winning Manager Traditional Managers: • Stick to their old ways. Resist change • See themselves as cops or bosses • Make all the decisions on their own • Reluctant to share information • Demands action and effort. Long hours • Neglects any career planning discussions. Assumes company will do that for them • Considers sales staff to be subordinates

  7. Becoming a Winning Manager Winning Managers: • Thrives on, and relishes change • Thinks like a coach or team leader • Believes in group decision making • Anxious to share news and information • Expects progress and results to occur • Takes initiative for planning own career and assists sales staff in planning theirs • Considers their sales reps to be an integral part of the “team”

  8. Specific Responsibilities Performed by the Sales Manager • Determine Sales Force Organization • Product organization • Geographic organization • Customer organization • Determining the size of the sales team • Use the Workload Approach

  9. Specific Responsibilities Performed by the Sales Manager 2. Recruit and select people • Develop a job description • Sources for recruiting • Within the organization • Competitors • Use trade and other media advertising • Colleges, universities, technical schools • Employment agencies • Interview and actual selection • Use several people within firm • The interview may be structured or unstructured

  10. Specific Responsibilities Performed by the Sales Manager • Tips for hiring right • Skip the learning curve - Hire someone with experience in the areas specific to your needs • Choose marketing skills over sales skills - Some sales experience is beneficial, but marketing requires different abilities and approaches than does sales • Seek out charismatic types - Look for someone with leadership abilities and strong communication skills • Raid the big guns - Some of the best training can be found in Fortune 500 companies. So try to attract their best.

  11. Specific Responsibilities Performed by the Sales Manager • Determine Compensation Plan • Straight commission • Commission figured as a percentage of sales volume • Advantages and disadvantages • Straight salary • Gives management the greatest control • Only 4.5% of firms use this as their “only” means of compensation • Combination plans • Draw against future commissions? • Provide the salesperson with some security and some incentive. Most plans include this.

  12. Specific Responsibilities Performed by the Sales Manager • A TQM based compensation plan includes: • A customer retention bonus • Penetration of target accounts bonus • Company-wide performance bonus • Provide Sales Training • Designed to develop success attributes in their sales force • Field Training - travel with new sales representative • Group Sessions - Role playing is common • Interactive training using multimedia • Work with 1 or 100 salespeople

  13. Specific Responsibilities Performed by the Sales Manager • Supervise and Motivate • Receive continuous training in new product technology • Guide and direct them in goal-setting • Motivation is at the very heart of supervision • The real key is to find motivated men and women and teach them how to sell! The goal is to create a work environment within which the individuals can and do motivate themselves.

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