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 [...]... Slide 11 in 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 ©2003 Prentice Hall, Inc To accompany A Framework for Slide 12 in Managing the Sales Force  Evaluating the Sales Force – Sources.. .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 ©2003 Prentice Hall, Inc To accompany A Framework for Slide 11 in Managing. .. information  Sales or call reports, personal observation, customer letters and complaints, customer surveys, other representatives – Formal evaluation  Performance comparisons  Knowledge assessments ©2003 Prentice Hall, Inc To accompany A Framework for Slide 13 in Personal Selling Principles Major Aspects  Sales professionalism  Negotiation  Relationship marketing ©2003 Prentice Hall, Inc  Sales- oriented... Major Aspects  Reps need skills for effective negotiation  Sales professionalism  Negotiation is useful when certain factors characterize the sale  Negotiation  Negotiation strategy  Relationship marketing ©2003 Prentice Hall, Inc – Principled – BATNA To accompany A Framework for Slide 16 in Personal Selling Principles Major Aspects  Sales professionalism  Negotiation  Relationship marketing . 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. 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,. 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