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To accompany A Framework for Marketing Management, 2nd Edition Slide 1 in Chapter 17©2003 Prentice Hall, Inc.
Chapter 17
Managing the Managing the Sales ForceSales Force
PowerPoint by Karen E. James Louisiana State University - Shreveport
To accompany A Framework for Marketing Management, 2nd Edition Slide 2 in Chapter 17©2003 Prentice Hall, Inc.
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.
To accompany A Framework for Marketing Management, 2nd Edition Slide 3 in Chapter 17©2003 Prentice Hall, Inc.
Designing the Sales Force
Types of Sales Representatives
Solution venderSolution vender
Demand creatorDemand creator
TechnicianTechnician
MissionaryMissionary
Order takerOrder taker
DelivererDeliverer
To accompany A Framework for Marketing Management, 2nd Edition Slide 4 in Chapter 17©2003 Prentice Hall, Inc.
Designing the Sales Force
Figure 17-1: Designing a Sales Force
To accompany A Framework for Marketing Management, 2nd Edition Slide 5 in Chapter 17©2003 Prentice Hall, Inc.
Designing the Sales Force
Steps in Process
Objectives and strategy
Structure
Sales force size
Compensation
Objectives– Sales volume and
profitability– Customer
satisfaction Strategy
– Account manager Type of sales force
– Direct (company) or contractual
To accompany A Framework for Marketing Management, 2nd Edition Slide 6 in Chapter 17©2003 Prentice Hall, Inc.
Designing the Sales Force
Steps in Process
Objectives and strategy
Structure
Sales force size
Compensation
Types of sales force structures:
– Territorial– Product– Market– Complex
Key accounts
To accompany A Framework for Marketing Management, 2nd Edition Slide 7 in Chapter 17©2003 Prentice Hall, Inc.
Discussion Scenario
Ariel Jones has tremendously increased the number of accounts and the dollar value of sales within her territory. She’s so busy servicing existing accounts that she has little time to seek new business. Management has decided to “split” her territory by giving 50% of her existing client base to a new sales rep.
What are the pros and cons of this strategy? Can it be implemented in a manner that minimizes potential negative consequences?
To accompany A Framework for Marketing Management, 2nd Edition Slide 8 in Chapter 17©2003 Prentice Hall, Inc.
Designing the Sales Force
Steps in Process
Objectives and strategy
Structure
Sales force size
Compensation
Workload approach:– Group customers by
volume– Establish call
frequencies– Calculate total yearly
sales call workload– Calculate average
number of calls/year– Calculate number of
sales representatives
To accompany A Framework for Marketing Management, 2nd Edition Slide 9 in Chapter 17©2003 Prentice Hall, Inc.
Designing the Sales Force
Steps in Process
Objectives and strategy
Structure
Sales force size
Compensation
Four components of compensation:– Fixed amount– Variable amount– Expense allowances– Benefits
Compensation plans– Straight salary– Straight commission– Combination
To accompany A Framework for Marketing Management, 2nd Edition Slide 10 in Chapter 17©2003 Prentice Hall, Inc.
Designing the Sales Force
Figure 17-2: Managing the Sales Force
To accompany A Framework for Marketing Management, 2nd Edition Slide 11 in Chapter 17©2003 Prentice Hall, Inc.
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
To accompany A Framework for Marketing Management, 2nd Edition Slide 12 in Chapter 17©2003 Prentice Hall, Inc.
Managing the Sales Force
Personality testing is one method of screening candidates.
To accompany A Framework for Marketing Management, 2nd Edition Slide 13 in Chapter 17©2003 Prentice Hall, Inc.
Managing the Sales Force
Typical Training Topics
Sales presentation techniques
Company background and products
Company characteristics
Procedures and responsibilities
Competitors’ products
Training Training TopicsTopics
To accompany A Framework for Marketing Management, 2nd Edition Slide 14 in Chapter 17©2003 Prentice Hall, Inc.
Managing the Sales Force
Many firms specialize in sales force training.
To accompany A Framework for Marketing Management, 2nd Edition Slide 15 in Chapter 17©2003 Prentice Hall, Inc.
Managing the Sales Force
The amount of time needed and the training method used vary with the level of task complexity.
Successful firms have procedures to aid in evaluating the sales force:
– Norms for customer calls– Norms for prospect calls– Using sales time efficiently
To accompany A Framework for Marketing Management, 2nd Edition Slide 16 in Chapter 17©2003 Prentice Hall, Inc.
Managing the Sales Force
Greater emphasis on phone and Internet usage
Greater reliance on inside sales force
Time-and-duty analysis
Configurator software
Using Sales Time Efficiently
To accompany A Framework for Marketing Management, 2nd Edition Slide 17 in Chapter 17©2003 Prentice Hall, Inc.
Managing the Sales Force
Configuator software packages assist in complex pricing tasks.
To accompany A Framework for Marketing Management, 2nd Edition Slide 18 in Chapter 17©2003 Prentice Hall, Inc.
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
To accompany A Framework for Marketing Management, 2nd Edition Slide 19 in Chapter 17©2003 Prentice Hall, Inc.
Managing the Sales Force
Evaluating the Sales Force
– Various sources of information may be used
– Types of formal evaluation include:• Performance comparisons
• Knowledge assessments
To accompany A Framework for Marketing Management, 2nd Edition Slide 20 in Chapter 17©2003 Prentice Hall, Inc.
Managing the Sales Force
Sources of Information When Evaluating the Sales Force
Call ReportsCall Reports
Customer SurveysCustomer Surveys
Other Sales RepresentativesOther Sales Representatives
Personal ObservationPersonal Observation
Customer Letters/ComplaintsCustomer Letters/Complaints
To accompany A Framework for Marketing Management, 2nd Edition Slide 21 in Chapter 17©2003 Prentice Hall, Inc.
Personal Selling Principles
Figure 17-3: Managing the Sales Force: Improving Effectiveness
To accompany A Framework for Marketing Management, 2nd Edition Slide 22 in Chapter 17©2003 Prentice Hall, Inc.
Personal Selling Principles
Major Aspects
Sales professionalism
Negotiation
Relationship marketing
Sales-oriented approach– Stresses high
pressure techniques Customer-oriented
approach– Stresses customer
problem solving Steps in industrial
selling process
To accompany A Framework for Marketing Management, 2nd Edition Slide 23 in Chapter 17©2003 Prentice Hall, Inc.
Personal Selling Principles
Figure 17-4: Major Steps in Effective Selling
To accompany A Framework for Marketing Management, 2nd Edition Slide 24 in Chapter 17©2003 Prentice Hall, Inc.
Personal Selling Principles
Major Aspects
Sales professionalism
Negotiation
Relationship marketing
Reps need skills for effective negotiation
Negotiation is useful when certain factors characterize the sale
Negotiation strategy
– Principled– BATNA
To accompany A Framework for Marketing Management, 2nd Edition Slide 25 in Chapter 17©2003 Prentice Hall, Inc.
Personal Selling Principles
Major Aspects
Sales professionalism
Negotiation
Relationship marketing
Building long-term supplier-customer relationships has grown in importance
Companies are shifting focus away from transaction marketing to relationship marketing
To accompany A Framework for Marketing Management, 2nd Edition Slide 26 in Chapter 17©2003 Prentice Hall, Inc.
Discussion Scenario
Salespeople who meet or exceed their assigned quotas are typically given higher quotas the following year.
How might this practice impact a company’s 1) internal marketing efforts with employees, and 2) relationship marketing efforts with external customers?