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STAFFING THE SALES FORCE
Size of Sales force :1. Potential Customers & their sales potential
2. Decide time per call & call frequency
3. Calculate the total workload4. Decide total work time available
5. Divide work time in various activities
6. Calculate total number of sales force
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Sales Potential / Breakdown Method :N = S/P X (1 + T)
where N = No. of Salesperson needed
S = Annual Sales forecastP = Average Estimated Productivity
T = Annual sales force turnover (%)
Incremental Method :Based on Marginal Analysis Theory
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Sales force staffing Process (Steps) :1. Planning the recruitment & Selection Process
2. Receiving sufficient no. of applications
3. Selecting most suitable applicants4. Hiring selected candidates
5. Socialisation and Assimilation
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STAFFING THE SALES FORCE
Planning the recruitment & Selection Process1. Establish responsibility2. Decide the number of Sales People needed
3. Outline type of Sales person needed
Job Analysis Job Description
Job qualification / specification
Receiving Applications
1. Identify sources of Sales recruits2. Evaluate the sources of recruits
3. Contacting candidates through selected source
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STAFFING THE SALES FORCE
Typical Sources Internal Sources
1. Current Employee Referral
2. Current Employees3. Promotions and Transfers
External Sources
1. Advertisements 4. Employment Agency2. Internet 5. Other Companies
3. Educational Institute 6. Job fairs
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Selecting Sales Person1. Screening resumes
2. Application form
3. Initial Interview4. Intensive Interview
5. Testing (for junior positions)
6. Reference check
7. Physical Examination
8. Selection Decision
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Hiring Sales Person1. Company makes the job offer
2. Acceptance of Job Offer by applicant
Socialisation and Assimilation1. Process through which new recruit learns about
values of organisation
2. Helps increase job satisfaction
3. Reduces turnover of people
4. Gives positive image of company
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TRAINING THE SALES FORCE
Sales Training Process1. Assess training needs
2. Design / Identify the sales training program
3. Execute the Sales training program4. Evaluation and Reinforcement of Sales
Training Program
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TRAINING THE SALES FORCE
Methods used for assessing needs1. Sales Managers Observation
2. Sales force Survey
3. Customer Survey4. Performance Testing
5. Job Description
6. Sales force Audit
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TRAINING THE SALES FORCE
Designing of Sales Training Program1. Aim (Why ?)
2. Content (What ?)
3. Methods (How ?)4. Execution (Who, When, Where, What ?)
5. Evaluation
Aim Contents Methods Execution Evaluation
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TRAINING THE SALES FORCE
1. Aim / Objectives of Sales Training Increase Sales Productivity
Increase Sales, Profit or both
Lower sales force turnover rate Improve customer relations
Introduce new products, markets and
promotional programs
Create positive attitudes and improve morale
Improve teamwork & co-operative efforts
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TRAINING THE SALES FORCE
2. Contents of Sales Training Company Knowledge
Product Knowledge
Sales technique Customer Knowledge
Competitive Knowledge
Relationship Building
Sales Technique would include CRM,
Negotiation Skills. Presentation Skills etc
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TRAINING THE SALES FORCE
3. Method of Sales Training(a) Class room training
Lecture
Demonstration Group Discussions
(b) Behavioral Training
Role play
Case studies
Simulation games
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3. Method of Sales Training(c) On the Job training
Mentoring
Job rotation(d) On Line Training
Electronic performance support system
Interactive multimedia training
Distance Learning
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TRAINING THE SALES FORCE
3. Method of Sales Training(e) Self Study
Audio Cassettes
Manuals Books
CDROM
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TRAINING THE SALES FORCE
4. Execution of Sales TrainingIt involves 5 important decisions
Who will be trained ?
Who will conduct the training ? When should the training take place ?
Where should the training be done ?
What will be the budgeted expenditure for
training ?
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TRAINING THE SALES FORCE
4. Execution of Sales TrainingWhen should the training take place ?
New sales peoplebefore they get in market
Existing sales peopleduring lean period Intermediariesduring lean period
Sales Managersduring lean period
Where should the training be done ?
Centralised training
Decentralised training
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TRAINING THE SALES FORCE
5. Evaluation of Sales TrainingEvaluation can be done in 4 major categories Reactions
Learning
Behaviour
Results
Reinforce Sales Training
Refresher training Coaching by senior sales people
Web-based or On line reinforce method
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MOTIVATING THE SALES FORCE
Motivating the Sales PersonMotivation (defn) :
The desire to spend efforts to fulfill a need
Motivation includes 3 dimensions Intensityit is the amount of physical & mental
effort spends on a specific task
Persistencedescribes how long the
salesperson continues to put forth effort
Directionsuggests the sales persons choice
of direction of effort among various tasks
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MOTIVATING THE SALES FORCE
Importance of Motivation 1015% of Salespeople are self motivated
These are ambitious and self starters
Sales Managers find the task of motivatingsalespeople difficult & important because:
Changes in Marketing environment
Conflicting company objectives
Unique nature of sales job
Separate motivational package
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MOTIVATING THE SALES FORCE
Motivation Theories for Salespeople1. Maslows Hierarchy of Need Theory
Physiological Needsfood, shelter, clothing
Safety NeedsJob / Income security Social Needsfriendship, belongingness
Esteem Needsstatus, recognition, reputation
Self actualisationself fulfillment, self
development
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MOTIVATING THE SALES FORCE
Motivation Theories for Salespeople2. Hertzbergs dual factor theory
Hygiene factorsworking conditions, security,
supervision, interpersonal relationships, salary,
company policies etc
Motivational factorsrecognition, responsibility,
achievement, challenge, opportunities for
growth, etc
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MOTIVATING THE SALES FORCE
Motivation Theories for Salespeople3. Vrooms expectancy theory of motivation
ExpectancyIt refers to perception of
relationship between efforts and performance
InstrumentalityIt refers to perception of
relationship between performance and reward
ValenceThe concept describes the value
placed on a particular reward by a salesperson
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MOTIVATING THE SALES FORCE
Motivation Theories for Salespeople4. Churchill, Ford & Walker theory of motivation
It suggests higher sales persons motivation,
greater the efforts, leading to superior
performance.
This increased performance will lead to greater
rewards, which will lead to higher job
satisfaction.Increased satisfaction will make motivation still
higher.
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MOTIVATING THE SALES FORCE
Motivational Tools1. Financial Rewards / Compensation :
Financial Compensation
Salary Commission
Bonus payment
Fringe benefits
Combination of above
Sales Contest
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MOTIVATING THE SALES FORCE
Motivational Tools2. Non - Financial Rewards / Compensation :
Promotion
Sense of accomplishment Recognition
Job security
Sales training program
Job enrichment
Sales Meetings
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