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Sales Force Management 11 th Edition

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  1. Sales Force Management11th Edition Mark W. Johnston Greg W. Marshall Routledge 2013

  2. Implementation of the Sales Program Part 2 Routledge 2013

  3. Chapter 10 Sales Training: Objectives, Techniques, and Evaluation Routledge 2013

  4. Military Training and Sales Careers • What skills • Can be trained? • Must be trained? • Are a pre-hire requirement? • What previous training has transferability and value? • Chally found that military training does enhance important sales skills and gives veterans several advantages over general salespeople Routledge 2013

  5. Military Training and Sales Success • Companies should consider veterans for jobs that require the following sales skills: • Cordial style of communication • Focus on resolving customer problems • Competitive approach • Accountability • Focus on near-term results through incremental gains Routledge 2013

  6. Learning Objectives • Identify key issues in sales training • Understand objectives of sales training • Discuss development of sales training programs • Understand training of new sales recruits and experienced salespeople • Define topics covered in a sales training program • Understand various methods for conducting sales training • Discuss how to measure costs and benefits of sales training Routledge 2013

  7. Exhibit 10.1 Training Magazine’s Top Training Companies Organizations 1. Farmer's Insurance 2. The Economical Insurance Group 3. Verizon 4. SCC Soft Computer 5. The PNC Financial Services Group 6. EMC Corporation Routledge 2013

  8. Issues in Sales Training • Who should be trained? • New recruits • Different stages of sales people’s careers • What should be the training primary emphasis? • Product knowledge • Company knowledge • Customer knowledge • Selling skills (time management, presentation skills) Routledge 2013

  9. Issues in Sales Training • How should the training process be structured? • On-the-job training and experience? • Formal and more consistent centralized program? • Web-based? • Instructor-based? Routledge 2013

  10. Objectives of Sales Training • Increase productivity • Improve morale • Lower turnover • Improve customer relations • Improve selling skills Routledge 2013

  11. Leadership:The Value of Just-in-Time Training • Research suggests that 60–90% of skills learned during training events are lost within 30 days • Problem: • Volume of information at training sessions is overwhelming • Personal sales training is expensive • Information is not immediately relevant • Solution: • Opt for smaller, focused sessions to teach specific skills • Take place closer to when information is needed • Salespeople demonstrate the skills and knowledge and improve retention of information Routledge 2013

  12. Obstacles to Introducing Training • 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 Routledge 2013

  13. Innovation: Effective Sales Training on a Budget • Time allocation – identify those skills and attributes that require the longest learning time. • Prioritize your training– concentrate on training topics you can do in-house. • Seek external training only when necessary – use external training only for those skill sets not available from internal resources and just invest in the training that is essential to seek professional help for. • Reading material in abundance –blogs and other online sources can be a great resource and allow salespeople to gain knowledge continuously. • Open communication – encourage open communication with salespeople to discuss their issues and concerns. • Invest in seminars–seminars are a low-cost way of putting salespeople with highly experienced and knowledgeable experts in their field. Routledge 2013

  14. Credible Sales Training Development • Analyze needs • Determine objectives • Develop implementation program • Evaluate and review program • What to measure • When to measure • How to do it Routledge 2013

  15. Exhibit 10.2 Analyzing the Training Needs of the Sales Force Routledge 2013

  16. Training New Sales Recruits • Even within the same industry, sales training programs vary in length, content, and technique. • What accounts for variations? • Training needs from firm to firm and even within each firm • Training needs vary because of differences in needs and aptitudes of recruits • Length of training varies with company philosophy Routledge 2013

  17. Training Experienced Sales Personnel • Over time experienced salespeople’s knowledge of competitors and market conditions becomes outdated • Selling styles may become less effective • Experienced salespeople need refresher or advanced training programs as company policies and product lines change • Additional training occurs when sales people are considered for promotion • Training experienced sales people is seen as insurance for a company’s major asset Routledge 2013

  18. Sales Training Topics • Product knowledge • Market/industry orientation • Company orientation • Selling skills • Time and territory management • Legal and ethical issues • Technology • Specialized topics Routledge 2013

  19. Product Knowledge • Critical information for rational decision-making • Company’s product specifications • Common product uses/misuses • Competitive products comparison on • Price • Construction • Performance • Compatibility • Technical products require more time on product knowledge training Routledge 2013

  20. Product Knowledge • Benefits of product knowledge: • Pride and confidence in product quality • Self-assurance emanating from technical knowledge of product make up • Communication with customers through the use of the operational vocabulary of the industry • Understanding of product functioning that allows effective diagnosis of customer problems Routledge 2013

  21. Market/Industry Orientation • Industry fit into overall economy • Knowledge of industry and economy • Economic fluctuations that affect buying behavior and require adaptive selling techniques • Customers' buying policies, patterns and preferences in light of competition • Customers' customers’ needs • Wholesaler and retailer needs Routledge 2013

  22. Company Orientation • Company polices that affect their selling activities • Personnel • Structure • Benefits • Handling customer requests for price adjustments, product modifications, faster delivery, different credit terms • Sales manuals • Hard copy, online • Product information • Company policy information Routledge 2013

  23. Time and Territory Management • Sales trainees need to learn to manage time and territories • Time spent training out of the field is costly • 80/20 rule applies often in the reverse: • Time is spent on 80% of the customers who only make up 20% of sales Routledge 2013

  24. Legal/Ethical Issues • 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 Routledge 2013

  25. Technology • Notebook computers and/or tablets • 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 • Effective use requires training Routledge 2013

  26. Technology:Training – There’s an App for That • Organizations are using Apps to pass along core values, institutional knowledge and best practices • Apps can be used to track or manage the path or sequence of training and verify the training that occurred • Employees can track their personal development • Training can be an anytime, anywhere activity Routledge 2013

  27. Specialized Training Topics • Specialized, job-tailored training most effective • Sample topics • Price negotiations • Trade show effectiveness • Reading body language • Addressing SCA Routledge 2013

  28. Exhibit 10.3 Common Instruction Methods Methods Classroom with instructor Workbooks/Manuals Public seminars Self-assessment Role-play Case studies Computer simulations Teleconferencing Podcasts Routledge 2013

  29. On-the-Job Training • Teaming– bring together people with different skills • Meetings– set aside times when employees can get together • Customer interaction – include customer feedback as part of learning process • Mentoring– provide informal mechanism for new salespeople to learn from more experienced ones • Peer-to-peer communication – create opportunities for mutual learning among salespeople Routledge 2013

  30. Classroom Training • Advantages • Standard briefings in • Product knowledge • Company polices • Customer and market characteristics • Selling skills • Formal training sessions save executive time • Interaction among salespeople builds camaraderie • Disadvantages • Expensive • Time-consuming • Too much material = less retention • Role-playing is used to develop sales skills and to apply knowledge taught in other instruction methods Routledge 2013

  31. Electronic Training Methods • Online training was a $20 billion industry (2012) • Makes J-I-T information possible • IBM plans 35% sales training to be over Internet • Most common delivery is a combination of online tools and personal instruction • 30% of server-based training over intranets • Effectiveness not well-documented • Not likely to eliminate one-on-one training Routledge 2013

  32. Measuring the Costs and Benefits • Sales training consumes substantial time, budget and support resources • Relationship between sales training and revenue is difficult to measure • Relationship between sales training and other broad objectives difficult to measure Routledge 2013

  33. Sales Training Costs • Training funds are often allocated with little regard for results • Results and benefits are difficult to measure • Difficult to isolate training impact from • Economic conditions • Environmental changes • Seasonal trends • Competitive activity Routledge 2013

  34. Exhibit 10.4 Evaluation Options Matrix Routledge 2013

  35. Measuring Broad Benefits • 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 Routledge 2013

  36. Exhibit 10.4 Overall Ranking of Evaluation Measures Routledge 2013

  37. Routledge 2013