Post on 13-Nov-2014
description
transcript
Part IVPart IVSALES FORCE SALES FORCE COMPETENCIESCOMPETENCIES
Part IVPart IVSALES FORCE SALES FORCE COMPETENCIESCOMPETENCIES
Chapter 7:Chapter 7:
Recruiting and Recruiting and Selecting Sales Selecting Sales PersonnelPersonnel
Recruitment Recruitment And SelectionAnd SelectionPlanningPlanning
Recruitment Recruitment And SelectionAnd SelectionPlanningPlanning
RecruitRecruitCandidatesCandidates
RecruitRecruitCandidatesCandidates
SelectSelectProspectsProspects
SelectSelectProspectsProspects
ValidatingValidatingthe Processthe Process
ValidatingValidatingthe Processthe Process
Chapter 7: OutlineChapter 7: Outline
What is Turnover?What is Turnover?
Figure 7-1: Sales Force Turnover RatesFigure 7-1: Sales Force Turnover Rates
78%78%
12%12%10%10%
50%50%
33%33%
17%17%
15%15%
19%19%
66%66%
ConsumerConsumer IndustrialIndustrial ServicesServices
0-10%0-10% 11-16%11-16% More than More than 16%16%
Turnover RatesTurnover RatesIndustryIndustry 19991999
ConstructionConstruction 13.8%13.8%
Office EquipmentOffice Equipment 47.047.0
RetailRetail 51.251.2
Wholesale (Consumer Goods)Wholesale (Consumer Goods) 18.518.5
ElectronicsElectronics 14.114.1
Business ServicesBusiness Services 26.226.2
PharmaceuticalsPharmaceuticals 8.3 8.3
BankingBanking 4.3 4.3
Real EstateReal Estate 11.911.9
SourceSource: : Dartnell’s 30Dartnell’s 30thth Sales Force Compensation Survey Sales Force Compensation Survey (1999), p.187. (1999), p.187.
Turnover Rates in Selected Turnover Rates in Selected IndustriesIndustries
CompensationCompensation (trainee average)(trainee average)$35,500$35,500
Benefits (approx.21.5% ofBenefits (approx.21.5% of compensation)compensation) 7,600 7,600
Field ExpenseField Expense 16,00016,000
Direct ExpenseDirect Expense $59,100$59,100
Training CostsTraining Costs 7,1007,100
TOTAL COSTSTOTAL COSTS$66,200$66,200
Source: Dartnell’s 30th Sales Force Compensation Survey (1999).
First Year Cost of a First Year Cost of a Salesperson in the U.S.Salesperson in the U.S.
Company Culture and the Company Culture and the Hiring ProcessHiring Process
Develop a hiring process related to Develop a hiring process related to core culture.core culture.
What are the core cultures of these What are the core cultures of these companies?companies?
Aligning People to Core Aligning People to Core Job ResponsibilitiesJob Responsibilities
The Chally Group, a sales consulting company, The Chally Group, a sales consulting company, found that matching a person’s skills set with found that matching a person’s skills set with the skills required by the sales job led to higher the skills required by the sales job led to higher performing salespeople and greater job performing salespeople and greater job satisfaction.satisfaction.
What skill sets are needed for the followingWhat skill sets are needed for the followingsales positions?sales positions?
– Missionary? Missionary? – Sales Support? Sales Support? – New Business?New Business?
Aligning People to Core Aligning People to Core Job ResponsibilitiesJob Responsibilities
Missionary:Missionary:– Technical skills, relationship building Technical skills, relationship building
skills skills
Sales Support:Sales Support: – Empathy, relationship building skillsEmpathy, relationship building skills
New Business:New Business: – Assertiveness, persuasiveness, time Assertiveness, persuasiveness, time
management, ability to closemanagement, ability to close
What Purchasing Agents Like What Purchasing Agents Like About SalespeopleAbout Salespeople
PERCENT OF RESPONDENTSPERCENT OF RESPONDENTSTRAITS WHO RATED MOST VALUEDTRAITS WHO RATED MOST VALUED
Willingness to fight for Willingness to fight for customer:customer:
Thoroughness/follow Thoroughness/follow through:through:
Market knowledge/Market knowledge/willingness to willingness to
share:share:
ImaginatioImagination:n:
Knowledge of product line:Knowledge of product line:
Diplomacy in dealing Diplomacy in dealing withwith
operating departments:operating departments:
0%0% 25%25% 50%50% 75%75% 100%100%
Recruiting SourcesRecruiting Sources
Classified AdsClassified Ads– Reaches wide audience Reaches wide audience
(trade publications may narrow the reach)(trade publications may narrow the reach)– Used if high turnoverUsed if high turnover– Tend to over-produce under-qualified Tend to over-produce under-qualified
candidatescandidates Present EmployeesPresent Employees
– Familiar w/ company products & proceduresFamiliar w/ company products & procedures– Established job historiesEstablished job histories– Sales as a promotionSales as a promotion– Over-rely on previous experienceOver-rely on previous experience
Recruiting SourcesRecruiting Sources
Referrals/Networking Referrals/Networking – Company executives understand needs, culture and Company executives understand needs, culture and
potential fit for sales responsibilitiespotential fit for sales responsibilities
Employment AgenciesEmployment Agencies– best if company paysbest if company pays
Schools & CollegesSchools & Colleges– Poised & easily trainedPoised & easily trained– Lack experience & become boredLack experience & become bored
Customers, Suppliers & CompetitionCustomers, Suppliers & Competition– Good if need w/out much trainingGood if need w/out much training– Legal & ethical issuesLegal & ethical issues– Common: insurance, stock broker, office equipment, Common: insurance, stock broker, office equipment,
clothingclothing
Figure 7-3: A Model for Selecting SalespeopleFigure 7-3: A Model for Selecting Salespeople
Direct recruit to controllocation or phone numberDirect recruit to control
location or phone number
Complete applicationblanks
Complete applicationblanks
Conduct screeninginterviews
Conduct screeninginterviews
Check credit andbackground
Check credit andbackground
Complete psychologicaland achievement tests
Complete psychologicaland achievement tests
Secondary interviewsSecondary interviews
Make offer for salesposition
Make offer for salesposition
Physical examPhysical exam
Measure subsequentsuccess on the job
Measure subsequentsuccess on the job
HiringHiringcriteriacriteria
forforsalessalesjobsjobsusedused
totoguideguide
selectionselectionprocessprocess
HiringHiringcriteriacriteria
forforsalessalesjobsjobsusedused
totoguideguide
selectionselectionprocessprocess
Modify hiringcriteria, tests or
Interview procedures
Modify hiringcriteria, tests or
Interview procedures RejectRejectRejectReject
1.1. Account for all dates.Account for all dates.
2.2. Examine the number of jobs and Examine the number of jobs and length of time spent on each job.length of time spent on each job.
3.3. Reasons for leaving job.Reasons for leaving job.
4.4. Is there a pattern of growth?Is there a pattern of growth?
RESUME ANALYSISRESUME ANALYSIS
QUESTIONS ABOUT QUESTIONS ABOUT INTERVIEWERSINTERVIEWERS
What Research ShowsWhat Research Shows Does extensive interviewing experience help an Does extensive interviewing experience help an
interviewer to make better judgments?interviewer to make better judgments?
Does pressure to recruit impair the judgment of Does pressure to recruit impair the judgment of experienced interviewers less than inexperienced experienced interviewers less than inexperienced interviewers?interviewers?
When interviewing multiple recruits, do interviewers When interviewing multiple recruits, do interviewers tend to use previous applicants as the standard of tend to use previous applicants as the standard of comparison for subsequent applicants?comparison for subsequent applicants?
Will the positive effects of good appearance offset an Will the positive effects of good appearance offset an unfavorably rated personal history for a recruit?unfavorably rated personal history for a recruit?
QUESTIONS ABOUT QUESTIONS ABOUT INTERVIEWERSINTERVIEWERS
What Research ShowsWhat Research Shows How much of the factual information presented in an How much of the factual information presented in an
interview will the interviewer remember immediately interview will the interviewer remember immediately after a short interview if no notes are taken?after a short interview if no notes are taken?
How will lack of notes and factual recall affect the How will lack of notes and factual recall affect the interviewer’s rating of the recruits interviewed?interviewer’s rating of the recruits interviewed?
How reliably can a group of interviewers rate a recruit’s How reliably can a group of interviewers rate a recruit’s qualifications for a job?qualifications for a job?
How reliably can a group of interviewers rate future job How reliably can a group of interviewers rate future job performance by a recruit?performance by a recruit?
1.1. Failure to establish rapportFailure to establish rapport
2.2. Lack of planLack of plan
3.3. Insufficient timeInsufficient time
4.4. Not listeningNot listening
5.5. Personal biasPersonal bias
6.6. QuestionsQuestions
7.7. First impressionsFirst impressions
COMMON INTERVIEWER COMMON INTERVIEWER MISTAKESMISTAKES
TYPICAL INTERVIEW TYPICAL INTERVIEW QUESTIONSQUESTIONS
What is interviewer trying to What is interviewer trying to determine?determine?
1.1. What was the most monotonous What was the most monotonous job you ever had to do?job you ever had to do?
– What are your values and general What are your values and general orientation in life?orientation in life?
– How creative were you in eliminating How creative were you in eliminating boredom?boredom?
TYPICAL INTERVIEW TYPICAL INTERVIEW QUESTIONSQUESTIONS
2.2. In thinking about people you like, what is In thinking about people you like, what is it you most like about them?it you most like about them?– Reflects what person is and desires to becomeReflects what person is and desires to become
3.3. Up to this point in your life, what do you Up to this point in your life, what do you consider to be your biggest consider to be your biggest disappointment?disappointment?– Have you done anything? -- more active = more Have you done anything? -- more active = more
disappointmentsdisappointments
4.4. How willing are you to relocate? How willing are you to relocate? To what extent are you willing to travel?To what extent are you willing to travel?– Motivation in wanting job -- involves travelMotivation in wanting job -- involves travel
TYPICAL INTERVIEW TYPICAL INTERVIEW QUESTIONSQUESTIONS
5.5. How do you feel about the way your How do you feel about the way your previous employer treated you?previous employer treated you?
– How you react to supervision & organizational culturesHow you react to supervision & organizational cultures
6.6. What are your long-term financial What are your long-term financial objectives and how do you intend to objectives and how do you intend to achieve them?achieve them?
– Are you realistic & mature?Are you realistic & mature? – Will this company enable you to achieve these goals?Will this company enable you to achieve these goals?
7.7. What was the most difficult decision you What was the most difficult decision you ever had to make as a leader?ever had to make as a leader?
– Were the leadership positions in your resume Were the leadership positions in your resume demanding or ceremonial in nature?demanding or ceremonial in nature?
– What is your leadership style & philosophy?What is your leadership style & philosophy?
TYPICAL INTERVIEW TYPICAL INTERVIEW QUESTIONSQUESTIONS
8.8. Why should we hire you? Why should we hire you?– How badly do you want the job?How badly do you want the job?– What do you think of yourself?What do you think of yourself?– Do you believe in yourself?Do you believe in yourself?
9.9. Sell me this pen. Sell me this pen.– Do you really know how to make a Do you really know how to make a
sales presentation?sales presentation?– Did you mention the main product Did you mention the main product
benefits?benefits?– Did you ask for the order?Did you ask for the order?
ASKING THE RIGHT ASKING THE RIGHT QUESTIONSQUESTIONS
About two weeks after starting a new job, doubts About two weeks after starting a new job, doubts
creep into your mind. The gap between what you creep into your mind. The gap between what you
were told and what’s actually happening gets were told and what’s actually happening gets
wider by the day. When you’re on the job for wider by the day. When you’re on the job for
three weeks, you say to yourself, three weeks, you say to yourself, “I think I made a “I think I made a
mistake.”mistake.” One way to avoid making a costly One way to avoid making a costly
mistake like this is to ask the right questions mistake like this is to ask the right questions
when interviewing. What questions would you when interviewing. What questions would you
ask when applying for a field sales position to ask when applying for a field sales position to
avoid accepting the wrong job?avoid accepting the wrong job?
ASKING THE RIGHT ASKING THE RIGHT QUESTIONSQUESTIONS
1.1. May I look at your resume? May I look at your resume?
2.2. Where will I get my leads? Where will I get my leads?
3.3. May I review your sales literature? May I review your sales literature?
4.4. When are your slow times? When are your slow times?
5.5. May I go with you on a sales call? May I go with you on a sales call?
6.6. May I visit your marketing May I visit your marketing department?department?
PREVIOUS EMPLOYER PREVIOUS EMPLOYER REFERENCE CHECK REFERENCE CHECK QUESTIONSQUESTIONS Dates of Employment?Dates of Employment?
What was the Job?What was the Job?
What type of selling was involved?What type of selling was involved?
How did the applicant get along with his/her How did the applicant get along with his/her manager? Customers? Fellow salespeople?manager? Customers? Fellow salespeople?
How did his/her job performance compare others?How did his/her job performance compare others?
Applicants strongest points? Weaknesses we Applicants strongest points? Weaknesses we should help him/her overcome?should help him/her overcome?
Why did s/he leave your company?Why did s/he leave your company?
Would you rehire the applicant? Why?Would you rehire the applicant? Why?
Table 7-2Table 7-2 Validity of Predictors for Entry-Level Validity of Predictors for Entry-Level JobsJobs
PredictorPredictor ValidityValidity
Ability composite (tests)Ability composite (tests) .53.53Job tryoutJob tryout .44.44Biographical inventoryBiographical inventory .37.37Reference checkReference check .26.26ExperienceExperience .18.18InterviewInterview .14.14Training and experience ratingsTraining and experience ratings .13.13Academic achievementAcademic achievement .11.11EducationEducation .10.10InterestInterest .10.10AgeAge .01.01
What’s in a Signature?What’s in a Signature?
Small letters such as “a,” “e,” and “o” are more than ¼ inch in height and farther to the right side of the page.
These people tend to be enterprising and are usually risk takers, take charge leaders, and pacesetters. They are your typical salesperson.
Small signatures, less than 1/8 inch tall with an upright slant and placed towards the left hand of the page
These people tend to be objective observers. They keep cool, don’t get excited under pressure, and in general make good listeners and negotiators. They might be better for high-level sales to established clients.
Medium-sized signatures (about 1/4 inch).
These people are your team players. Interaction is their byword and they tend to play strictly by the rules. They take calculated risks, with emphasis on the calculations. Not generally sales types.
WHAT MAKES A SUPER WHAT MAKES A SUPER SALESPERSON?SALESPERSON?
Personal ComputerPersonal ComputerManufacturerManufacturer
Photographic Equipment Photographic Equipment ManufacturerManufacturer
Threshold Competencies Threshold Competencies
Communication Decisiveness
*Information Collection *Information Collection
Personal Sensitivity *Organizational Awareness
*Relationship-building *Relationship-building
Technical knowledge Systematic thinking
Differentiator Competencies Differentiator Competencies
Concern for personal impact *Focused achievement
*Focused achievement Interpersonal diagnosis
Initiative Job commitment
*Organizational awareness Persistence
Personal time-planning Presentation skills
Quick thinking Stress tolerance
Targeted persuasion *Use of influence strategies
*Use of influence strategies
* These traits were found in salespeople at both companies.* These traits were found in salespeople at both companies.
Table 7-5Table 7-5 Typical Interview QuestionsTypical Interview Questions
Why should we hire you?Why should we hire you?
Regardless of the company and type of sales position for which you may interview, there are some interview questions that are typically asked. You may not be asked each of these questions in every interview, but you should be prepared to answer them all. After reading each question, think about what the interviewer’s purpose may be in asking the question. What is he or she trying to determine? What should your response be to each question?
Table 7-5Table 7-5 Typical Interview QuestionsTypical Interview Questions
Why should we hire you?Why should we hire you? What was the most monotonous job you ever had to do? In thinking about the people you like, what is it you like most about
them?
Up to this point in your life, what do you consider to be your biggest disappointment?
How willing are you to relocate? To what extent are you willing to travel?
How do you feel about the way your previous employer treated you?
What are your long-term financial objectives, and how do you propose to achieve them?
What was the most difficult decision you ever had to make as a leader?
Why should we hire you?
Sell me this pen.
JOB DESCRIPTION JOB DESCRIPTION FACTORSFACTORS
Selling RequirementsSelling Requirements New vs. established account
selling Selling through distributors Entertaining customers Level of buying authority Physical activity required Technical knowledge Relocation
Written proposals Individual vs. team selling One time vs. systems selling Type of prospects/customers One-on-one vs. group selling Travel: how much & what kind Program or concept selling
Nonselling TasksNonselling Tasks Reports to management Customer service and training Sales promotion
Educational seminars Collecting receivables Marketing plans
Degree of ResponsibilityDegree of Responsibility Negotiations of pricing Travel and entertainment
Career PathsCareer Paths Compensation plan Promotion timing
Earnings potential Promotion leaders
Performance ExpectationsPerformance Expectations Activity level requirements Minimum sales volume or
profits