Page 1
10.1
Chapter Ten
McGraw-Hill/Irwin
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•Identify the key issues in sales training for the 21st century
• Understand the objectives of sales training
• Discuss the development of sales training programs
• Understand the training of new sales recruits and experienced salespeople
• Define the topics covered in a sales training program
• Understand the various methods for conducting sales training
• Discuss how to measure the costs and benefits of sales training
Learning Objectives
Page 2
10.2
Chapter Ten
McGraw-Hill/Irwin
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Sales training analysis
Role playing
On the Job Training (OJT)
Electronic training methods
Sales training costs
Key Terms
Page 3
10.3
Chapter Ten
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Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
10.3Meg Kerr and Bill Burzynski, “Missing the Target: Sales Training in America,” Training and Development Journal, (July 1988), p. 68.
SOURCE:
(percent of all characteristics cited; multiple responses were possible)
Sales RecordSales Record
Committed to quality and customer service, aggressiveness, persistent, self-confident
48%
Sales, problem-solving, communication, time management 25%
Product, industry, market
Meets objectives
Completes paperwork, political acumen
13%
11%
4%
OtherOther
KnowledgeKnowledge
SkillsSkills
AttitudeAttitude
Characteristics of a Successful Salesperson
Page 4
10.4
Chapter Ten
McGraw-Hill/Irwin
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
10.4
25%
Characteristics of Success*
Program Content: New Hires
Program Content: 1-3 Years Seniority
13%
48%
56%
43%
1%
65%
35%
0%
*See Exhibit 1 for additional characteristics.
Meg Kerr and Bill Burzynski, “Missing the Target: Sales Training in America,” Training and Development Journal, (July 1988), p. 69.
SOURCE:
KnowledgeKnowledge
SkillsSkills
AttitudeAttitude
Program Content Versus Characteristics of Success
Page 5
10.5
Chapter Ten
McGraw-Hill/Irwin
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
•When determining sales training needs, three issues that must be considered:
• Who should be trained?
• What should be the primary emphasis in the training program?
• How should the training process be structured:
• on-the-job?
• formal centralized program?
• field initiatives and participation?
Sales Training Issues
Page 6
10.6
Chapter Ten
McGraw-Hill/Irwin
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Increase Productivity: Provide trainees with the necessary skills so their selling performance makes a positive contribution to the firm.
Improve Morale: Prepare trainees with “how to” instruction on perform tasks so their productivity increases as quickly as possible.
Lower Turnover: Improve morale and increase job satisfaction through effective training.
Improve Customer Relations: Create continuity in customer relationships, build productive partnerships and increase customer satisfaction through more skillful performance.
Improve Selling Skills: Time and territory management.
Sales Training Objectives
Page 7
10.7
Chapter Ten
McGraw-Hill/Irwin
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
•Top management is not dedicated to sales training.
• Sales training programs are not adequately funded.
• Salespeople are apathetic about sales training.
• Salespeople resent training's intrusion on their time.
• Salespeople resist changes suggested by training programs.
Obstacles to Introducing a Sales Training Program
Page 8
10.8
Chapter Ten
McGraw-Hill/Irwin
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
•Analyze sales force needs.
• Set specific, realistic, and measurable training objectives.
• Allow adequate develop and timely, effective implement of the program.
• Subject itself to evaluation and review.
•Modify any aspect of the program to achieve greater effectiveness.
A Well-Designed Sales Training Program will:
Page 9
10.9
Chapter Ten
McGraw-Hill/Irwin
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Analyze needs
Set specific, realistic, and measurable objectives
Develop and Implement Program
Evaluate and Review Program
Objective Information Sources and Processes
Job analysis, job description, etc
Review needs, consider short-term and long-run issues, compare training objectives with company goals
Evaluate previous training methods, consider cost/benefits of various training programs
Develop monitoring system, monitor and revise
Analyzing the Training Needs of the Sales Force
Page 10
10.10
Chapter Ten
McGraw-Hill/Irwin
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Most larger companies train new sales recruits in programs differing in length and content because . . .
• Training needs vary from firm to firm and even within a firm to because of differing specific needs.
• Training needs vary because of differences in the needs and aptitudes of the recruits.
• Variation in the length of training programs occurs due to company philosophy.
Training New Sales Recruits
Page 11
10.11
Chapter Ten
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Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Most larger companies provide training programs for experienced personnel because . . .
•Time erodes the value of earlier training.
•Marketplaces change and knowledge become obsolete.
•Management endorses the “lifelong learning” concept.
•The best performers find value in refresher sessions.
•Corporate culture, morale and job satisfaction can be influenced and improved.
Training Experienced Sales Personnel
Page 12
10.12
Chapter Ten
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Program content for training new sales personnel tends to remain constant over time within a firm. Topics include . . .
•Product or service knowledge,
•Market/Industry orientation,
•Company orientation, and
•Selling skills.
Sales Training Topics
Page 13
10.13
Chapter Ten
McGraw-Hill/Irwin
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Product knowledge ranks among the most important topics. However, knowing when and how to discuss the subject in a sales call ranks even higher.
Companies that produce technical products spend a greater amount of time on product knowledge than do manufactures of non-technical products.
Product knowledge involves . . .
• Knowing how the product is made
• How the product is commonly used, and
• How it should not be used.
Product Knowledge
Page 14
10.14
Chapter Ten
McGraw-Hill/Irwin
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Customers often want to know how competitive products compare on . . .
•price,
•construction,
•performance, and
•compatibility with each other.
Product knowledge enables a salesperson to provide prospects and customers with the critical information for rational decision-making.
Product Knowledge
Page 15
10.15
Chapter Ten
McGraw-Hill/Irwin
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Salespeople need to know how their particular industry fits into the overall economy.
Forecasting sales and setting quotas requires knowledge of the industry and the economy.
Economic fluctuations affect buying behavior and requires adaptive selling techniques .
Salespeople need to understand customers' buying policies, patterns and preferences in light of competition.
Sales reps need to be knowledgeable about their customers' customers and what satisfies them.
Missionary salespeople must know the needs of both wholesalers and retailers.
Market/Industry Orientation
Page 16
10.16
Chapter Ten
McGraw-Hill/Irwin
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Sales trainees must be aware of company polices that affect their selling activities.
Sales representatives can expect customers to request price adjustments, product modifications, faster delivery and different credit terms. How are these handles?
Major corporations provide the sales force with sales manuals that cover product line information and company polices.
A well-prepared sales manual gives a sales representative quick answers to a customer's questions.
Company Orientation
Page 17
10.17
Chapter Ten
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Sales trainees need assistance to learn how to manage their time and territories to be maximally productive.
The familiar 80/20 rule applies.
• 20% of the customers account for
• 80% of the business and
• Require a direct proportion of time and attention.
The need to be more effective in time and territory management has led to greater telephone usage with appropriate telemarketing sales training courses.
Time and Territory Management
Page 18
10.18
Chapter Ten
McGraw-Hill/Irwin
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
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 will constrain their selling activities.
Statements - or rather, misstatements- made by salespeople carry both legal and ethical implications.
Lapses in ethical conduct often leads to legal problems.
Legal/Ethical Issues
Page 19
10.19
Chapter Ten
McGraw-Hill/Irwin
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Many companies issue salespeople laptop computers for presentations, connecting to the company intranet or extranet and for delivering documentation quickly and accurately.
Some companies create "home offices" for their sales force, thus eliminating the need to go to another office.
Armed with high-speed network connections, laptop or desktop computer, printer, and cell phone, a salesperson can work independently and be almost totally self-sufficient.
Technology
Page 20
10.20
Chapter Ten
McGraw-Hill/Irwin
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
In some cases, a sales rep can access the company's . . .
•Decision support system (DSS) to learn what products selling well in an area or to a specific customer.
•Production schedule to check delivery times.
•Customer relationship database to gather background and history on a customer or prospect.
Companies find that effective computer use affords sales personnel more face-to-face customer contact time and improved customer service through information availability.
Technology (continued)
Page 21
10.21
Chapter Ten
McGraw-Hill/Irwin
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Method % of firms offering
0 25 50 75 100
On-the-job 84.3Individual Instruction 69.8
In-house classes 60.8External seminars 71
Home assignments 17.7
Other 6.7
Methods Used in Sales Training
Page 22
10.22
Chapter Ten
McGraw-Hill/Irwin
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Instructional Delivery Method
Classroom with instructor 100%
Workbook/manuals 98%
Public seminars 93%
Videotapes 92%
CD-ROM 87%
Self-Assessment 82%
Role-play 81%
Non-computer, self study 79%
Case Studies 78%
Internet 74%
Non-computer-based games 72%
Computer-based games 57%
Audiocassettes 55%
Teleconferencing 53%
Videoconferencing groups 41%
Methods Used in Sales Training
Page 23
10.23
Chapter Ten
McGraw-Hill/Irwin
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Some folks find thought of "learning by doing" (OJT) psychologically uncomfortable.
OJT should be a carefully planned process affording new recruits the opportunity to learn by doing, while earning and being productive.
A good OTJ program contains established procedures for evaluating and reviewing a trainee's progress
Research over the last three years suggests that informal on-the-job training is a very effective way of learning for salespeople
On-the-job training and coaching often occur together
On-the-Job Training
Page 24
10.24
Chapter Ten
McGraw-Hill/Irwin
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Formal classroom training represents an indispensable part of sales training but very few companies rely solely on it . . .
•A trainee receives standard briefings in product knowledge, company polices, customer and market characteristics, and selling skills.
•Formal training sessions avoid wasting executive time meeting and briefing an entire group of trainees at once.
•Classroom sessions permit the use of audiovisual materials such as movies and videotapes and technical resources like computers and databases.
•Interaction between sales trainees builds camaraderie.
Classroom Training
Page 25
10.25
Chapter Ten
McGraw-Hill/Irwin
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
The Internet, especially the World Wide Web and its graphics, revolutionized delivery of training.
Quality learning experiences can be delivered to staff and customers over the Internet.
Online universities offer a wide array of courses through the doctoral level.
Online training continues to grow exponentially.
Training can also be delivered via CD-ROM and DVD.
Electronic Training Methods
Page 26
10.26
Chapter Ten
McGraw-Hill/Irwin
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Sales training consumes substantial time, budget and support resources. It’s very costly activity
The relationship between sales training and revenue lies obscured in a complex process with delayed payoffs.
Pinning down the relationship between sales training and its financial benefits requires thought and effort.
Most sales organizations express blind faith by assuming that their sales training programs succeed.
Measuring the Costs and Benefits
Page 27
10.27
Chapter Ten
McGraw-Hill/Irwin
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Broad benefits of sales training include . . .
•Improved morale,
•Lower turnover,
•Higher customer satisfaction, and
•Demonstrate management’s commitment to quality and continuous improvement.
Measuring change in skills, reactions and learning assists both new and experienced sales personnel.
Measuring Broad Benefits
