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Chapter 17 Managing the Sales Force PowerPoint by Karen E James Louisiana State University - Shreveport ©2003 Prentice Hall, Inc To accompany A Framework for Marketing Management, 2nd Edition Slide in Chapter 17 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 ©2003 Prentice Hall, Inc To accompany A Framework for Marketing Management, 2nd Edition Slide in Chapter 17 Designing the Sales Force Types of Sales Representatives Deliverer Technician Order taker Demand creator Missionary Solution vendor ©2003 Prentice Hall, Inc To accompany A Framework for Marketing Management, 2nd Edition Slide in Chapter 17 Designing the Sales Force Steps in Process Objectives and strategy Structure Sales force size Compensation ©2003 Prentice Hall, Inc 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 in Chapter 17 Designing the Sales Force Steps in Process Objectives and strategy Structure Sales force size Compensation ©2003 Prentice Hall, Inc Types of sales force structures: – Territorial – Product – Market – Complex Key accounts To accompany A Framework for Marketing Management, 2nd Edition Slide in Chapter 17 Designing the Sales Force Steps in Process Objectives and strategy Structure Sales force size Compensation ©2003 Prentice Hall, Inc 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 in Chapter 17 Designing the Sales Force Steps in Process Objectives and strategy Structure Sales force size Compensation ©2003 Prentice Hall, Inc 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 in Chapter 17 Managing the Sales Force Steps in Sales Force Management Recruitment and selection Training ©2003 Prentice Hall, Inc Supervising Motivating Evaluating To accompany A Framework for Marketing Management, 2nd Edition Slide in Chapter 17 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 ©2003 Prentice Hall, Inc To accompany A Framework for Marketing Management, 2nd Edition Slide in Chapter 17 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 ©2003 Prentice Hall, Inc To accompany A Framework for Marketing Management, 2nd Edition Slide 10 in Chapter 17 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 Marketing Management, 2nd Edition Slide 11 in Chapter 17 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 Marketing Management, 2nd Edition Slide 12 in Chapter 17 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 ©2003 Prentice Hall, Inc To accompany A Framework for Marketing Management, 2nd Edition Slide 13 in Chapter 17 Personal Selling Principles Major Aspects Sales professionalism Negotiation Relationship marketing ©2003 Prentice Hall, Inc 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 14 in Chapter 17 Personal Selling Principles Steps in Industrial Selling Process Prospecting and qualifying Preapproach Approach Presentation and demonstration ©2003 Prentice Hall, Inc Overcoming objections Closing Follow-up and maintenance (servicing) To accompany A Framework for Marketing Management, 2nd Edition Slide 15 in Chapter 17 Personal Selling Principles 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 Marketing Management, 2nd Edition Slide 16 in Chapter 17 Personal Selling Principles Major Aspects Sales professionalism Negotiation Relationship marketing ©2003 Prentice Hall, Inc Building long-term suppler-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 17 in Chapter 17 ... solving Steps in industrial selling process To accompany A Framework for Marketing Management, 2nd Edition Slide 14 in Chapter 17 Personal Selling Principles Steps in Industrial Selling Process... accompany A Framework for Marketing Management, 2nd Edition Slide 13 in Chapter 17 Personal Selling Principles Major Aspects Sales professionalism Negotiation Relationship marketing ©2003 Prentice... Negotiation strategy Relationship marketing ©2003 Prentice Hall, Inc – Principled – BATNA To accompany A Framework for Marketing Management, 2nd Edition Slide 16 in Chapter 17 Personal Selling Principles