Principles of marketing: Lecture 37

MGT301
Principles of Marketing
Lecture­37


Summary
of  
Lecture­36


Sales Force Management
Steps in the Selling Process


Managing the Sales force


Designing
Designing Sales
Sales force
force Strategy
Strategy and
and Structure
Structure
Recruiting
Recruiting and
and Selecting
Selecting Salespeople
Salespeople
Training
Training Salespeople

Salespeople
Compensating
Compensating Salespeople
Salespeople
Supervising
Supervising Salespeople
Salespeople
Evaluating
Evaluating Salespeople
Salespeople


Today’s Topics
Sales force Management (cont..)
Direct Marketing
Supervising Salespeople



Directing Salesperson
Motivating Salesperson



Motivating Salespeople
• Organizational Climate
• Sales Quotas
• Positive Incentives
– Honors
– Awards

– Merchandise/ Cash
– Trips


How Salespeople Spend Their Time


Service Administrative
Tasks
Calls
17%
12%
Telephone
Selling
21%
Face-to-Face
Selling
30%
Waiting/
Traveling
20%

Companies Look 
For Ways to 
Increase the 
Amount of 
Time 
Salespeople 
Spend Selling. 

Evaluating Salespeople


Expense
Expense
Reports
Reports

Call
Call
Reports
Reports

Sales
Sales
Report
Report
Sources
Sources
of
of
Information
Information

Annual
Annual
Territory
Territory
Marketing

Marketing Plan
Plan

Work
Work
Plan
Plan


Quantitative Criteria
– Orders
– Number of orders obtained
– Average order size (units or dollars)
– Number of orders canceled by customers
– Sales volume
– Dollar sales volume
– Unit sales volume
– By customer type
– By product category
– Translated into market share
– Percentage of sales quota achieved


Margins
– Gross margin
– Net profit
– By customer type
– By product category
Customer accounts
– Number of new accounts

– Number of lost accounts
– Percentage of accounts sold
– Number of overdue accounts
– Collections made of accounts receivable


Sales calls
– Number made on current customers
– Number made on potential new accounts
– Average time spent per call
– Number of sales presentations
– Selling time versus nonselling time
– Call frequency ratio per customer type
Selling expenses
– Average per sales call
– As percentage of sales volume
– As percentage of sales quota
– Direct­selling expense ratios
– Indirect­selling expense ratios


Customer service
– Number of service calls
– Displays set up
– Delivery cost per unit sold
– Months of inventory held, by 
–   customer type
– Number of customer complaints
– Percentage of goods returned

Selling skills
– Knowing the company and its policies
– Knowing competitors’ products and 
–   sales strategies
– Understanding of selling techniques
– Customer feedback (positive and negative)
– Product knowledge
– Customer knowledge
– Execution of selling techniques
– Quality of sales presentations
– Communication skills


Qualitative Criteria 
– Sales­related activities
 Territory management: sales call 
preparation, scheduling, routing, and 
time utilization
 Marketing intelligence: new product 
ideas, competitive activities, new 
customer preferences
 Follow­ups: use of promotional 
brochures and correspondence with 
current and potential accounts
 Customer relations
 Report preparation and timely 
submission



Personal characteristics
 Cooperation
 Human relations
 Enthusiasm motivation
 Judgment
 Care of company 

property

 Appearance
 Self­improvement efforts

 Patience
 Punctuality
 Initiative
 Resourcefulne

ss

 Health
 Sales 

management 
potential

 Ethical and 

moral behavior

Developing the Sales force

Recruiting
Recruiting

Selecting
Selecting

Training
Training


Direct Marketing
One­to­One  Marketing

Direct communications with carefully 
targeted individual consumers to obtain an 
immediate response.


Direct communications with carefully 
targeted individual consumers to obtain an 
immediate response.


Direct Marketing


 Fastest growing promotional mix 
element



 Easy to narrowly target a 
segment



 Measure outcomes easier



 Databases are extremely 
important


Direct
Direct Marketing
Marketing

Breaks
Breaks
through
through ad
ad
clutter
clutter

Better
Better
targeting
targeting
reduces
reduces
waste
waste


Direct Marketing Consists of Direct Connections With Carefully 
Targeted Individual Consumers to Both Obtain an Immediate 
Response and Cultivate Lasting Customer Relationships.