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Sales Force Management

The document discusses managing and designing a sales force. It describes the different types of sales representatives and outlines the steps companies take to structure their sales force, including setting objectives and strategies. It also explains how companies recruit, select, train, supervise, motivate and evaluate their sales representatives. Finally, it discusses principles of personal selling, such as developing sales skills and negotiating techniques.

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33% found this document useful (3 votes)
8K views

Sales Force Management

The document discusses managing and designing a sales force. It describes the different types of sales representatives and outlines the steps companies take to structure their sales force, including setting objectives and strategies. It also explains how companies recruit, select, train, supervise, motivate and evaluate their sales representatives. Finally, it discusses principles of personal selling, such as developing sales skills and negotiating techniques.

Uploaded by

api-3774614
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 17

Chapter 17

Managing the 
Sales Force
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.
Designing the Sales Force

Types of Sales Representatives

 Deliverer  Technician
 Order taker  Demand creator
 Missionary  Solution vendor
Designing the Sales Force

Steps in Process  Objectives


– Sales volume and
profitability
 Objectives and – Customer
strategy satisfaction
 Strategy
 Structure
– Account manager
 Sales force size  Type of sales force
 Compensation – Direct (company) or
contractual
Designing the Sales Force

Steps in Process  Types of sales


force structures:
 Objectives and – Territorial
strategy – Product
 Structure – Market
 Sales force size – Complex

 Compensation  Key accounts


Designing the Sales Force

Steps in Process  Workload approach:


– Group customers by
volume
 Objectives and – Establish call
strategy frequencies
– Calculate total yearly
 Structure sales call workload
 Sales force size – Calculate average
number of calls/year
 Compensation – Calculate number of
sales representatives
Designing the Sales Force

Steps in Process  Four components of


compensation:
– Fixed amount
 Objectives and – Variable amount
strategy – Expense allowances
 Structure – Benefits
 Compensation plans
 Sales force size
– Straight salary
 Compensation – Straight commission
– Combination
Managing the Sales Force

Steps in Sales Force Management


 Recruitment  Supervising
and selection  Motivating
 Training
 Evaluating
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
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
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
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
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
Performancecomparisons
Knowledge assessments
Personal Selling Principles

 Sales-oriented
Major Aspects
approach
– Stresses high
 Sales pressure techniques
professionalism  Customer-oriented
approach
 Negotiation – Stresses customer
problem solving
 Relationship  Steps in industrial
marketing selling process
Personal Selling Principles

Steps in Industrial Selling Process


 Prospecting and  Overcoming
qualifying objections
 Preapproach  Closing
 Approach  Follow-up and
 Presentation and maintenance
demonstration (servicing)
Personal Selling Principles

Major Aspects  Reps need skills for


effective negotiation
 Negotiation is useful
 Sales
when certain factors
professionalism characterize the sale
 Negotiation  Negotiation strategy
 Relationship – Principled
marketing – BATNA
Personal Selling Principles

 Building long-term
Major Aspects
suppler-customer
relationships has
 Sales grown in importance
professionalism  Companies are
shifting focus away
 Negotiation from transaction
marketing to
 Relationship relationship
marketing marketing

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