Chapter 17: Managing the Sales Force docx

To accompany A Framework for
Marketing Management, 2nd Edition
Slide 1 in
Chapter 17
©
2003 Prentice Hall, Inc.
Chapter 17
Chapter 17
Managing the
Managing the
Sales Force
Sales Force
PowerPoint by Karen E. James
PowerPoint by Karen E. James
Louisiana State University - Shreveport
Louisiana State University - Shreveport
To accompany A Framework for
Marketing Management, 2nd Edition
Slide 2 in
Chapter 17
©
2003 Prentice Hall, Inc.
Objectives
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
Designing the Sales Force

Deliverer

Order taker

Missionary

Technician

Demand creator

Solution vendor
Types of Sales Representatives
To accompany A Framework for
Marketing Management, 2nd Edition
Slide 4 in
Chapter 17
©

2003 Prentice Hall, Inc.
Designing the Sales Force
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 5 in
Chapter 17
©
2003 Prentice Hall, Inc.
Designing the Sales Force
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 6 in
Chapter 17
©
2003 Prentice Hall, Inc.
Designing the Sales Force
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 7 in
Chapter 17
©
2003 Prentice Hall, Inc.
Designing the Sales Force
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 8 in
Chapter 17
©
2003 Prentice Hall, Inc.
Managing the Sales Force
Managing the Sales Force

Recruitment
and selection

Training

Supervising

Motivating


Evaluating
Steps in Sales Force Management
To accompany A Framework for
Marketing Management, 2nd Edition
Slide 9 in
Chapter 17
©
2003 Prentice Hall, Inc.
Managing the Sales Force
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 10 in
Chapter 17
©
2003 Prentice Hall, Inc.

Managing the Sales Force
Managing the Sales Force

Training topics include:
–
Company background, products
–
Customer characteristics
–
Competitors’ products
–
Sales presentation techniques
–
Procedures and responsibilities

Training time needed and training
method used vary with task complexity
To accompany A Framework for
Marketing Management, 2nd Edition
Slide 11 in
Chapter 17
©
2003 Prentice Hall, Inc.
Managing the Sales Force
Managing the Sales Force

Successful firms have procedures to
aid in evaluating the sales force:
–
Norms for customer calls

–
Norms for prospect calls
–
Using sales time efficiently

Tools include configurator software,
time-and-duty analysis, greater
emphasis on phone and Internet usage,
greater reliance on inside sales force
To accompany A Framework for
Marketing Management, 2nd Edition
Slide 12 in
Chapter 17
©
2003 Prentice Hall, Inc.
Managing the Sales Force
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 13 in
Chapter 17
©
2003 Prentice Hall, Inc.
Managing the Sales Force
Managing the Sales Force

Evaluating the Sales Force
–
Sources of information

Sales or call reports, personal
observation, customer letters and
complaints, customer surveys, other
representatives
–
Formal evaluation

Performance comparisons

Knowledge assessments
To accompany A Framework for
Marketing Management, 2nd Edition
Slide 14 in
Chapter 17
©

2003 Prentice Hall, Inc.
Personal Selling Principles
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 15 in

Chapter 17
©
2003 Prentice Hall, Inc.
Personal Selling Principles
Personal Selling Principles

Prospecting and
qualifying

Preapproach

Approach

Presentation and
demonstration

Overcoming
objections

Closing

Follow-up and
maintenance
(servicing)
Steps in Industrial Selling Process
To accompany A Framework for
Marketing Management, 2nd Edition
Slide 16 in
Chapter 17
©

2003 Prentice Hall, Inc.
Personal Selling Principles
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 17 in
Chapter 17
©

2003 Prentice Hall, Inc.
Personal Selling Principles
Personal Selling Principles
Major Aspects

Sales
professionalism

Negotiation

Relationship
marketing

Building long-term
suppler-customer
relationships has
grown in importance

Companies are
shifting focus away
from transaction
marketing to
relationship
marketing