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Personal selling is an important mode of communication between a company and its customers.
To achieve some degree of success the company should be able to answer the following
questions:
Most organizations that do not have a proper marketing function have a sales force. However,
this sales force management has been traditionally been managed well. There are several reasons
including top management not appreciating the influence of the sales person. As a result the
managers often underestimate the importance of the sales force
Another possible problem is that sales staffs sometimes make a distinction between sales and
marketing when actually there is no great difference at all – this perception problem might
become an issue in setting sales objectives.
The sales call that is made should be made effectively so as to ensure that the sales objectives are
achieved. A good deal of marketing planning will go into this.
The distinction between marketing theory and sales practice is further voided when it is realized
profitable sales come not from individual customers or products but on groups of customers (i.e.
market segments) and on the supportive relationship of the products to each other (i.e. a carefully
planned product portfolio)
In order to determine the precise role of personal selling in the communications mix, the
company must identify the major influencers in each purchase decision and find out the
information they are likely to need at the different stages of the buying process.
How many sales people are required to achieve the sales objectives?
The organization should begin its consideration of how many sales people it needs by finding out
exactly how the work is allocated at present. Start by listing all the things the current sales force
actually dos. These might include opening new accounts, servicing existing accounts,
demonstrating new products, taking repeat orders and collecting debts.
Basically all sales force activities can be categorized under three headings. A salesperson:
• Makes calls
• Travels
• Performs administrative functions
It is best to arrive at a breakdown of how a typical salesperson spends the time based on the
headings shown above.
Based on practical work routine of a salesperson - the actual time available for sales is strictly
limited - in this situation the company should know exactly what it wants the sales force to
achieve.
Quantitative Objectives
There are many other types of quantitative objectives which can be set for the sales force:
Qualitative objectives
Qualitative objectives have been a source of problems if measures such as 'good performance'
'enthusiasm' and loyalty are used since these are very difficult to measure. In seeking to measure
qualitative performance managers resort to highly subjective interpretations.
However, managers can set and measure qualitative objectives which actually relate to the
performance of the sales force on the job. It is possible to measure the person's knowledge of the
product and how it is used in sales performance. This can be seen how it is used to overcome
objections during sales interviews.
If a sales managers job is to ensure high performance of the sales force and if performance is a
function of incentives minus disincentives, then the more the disincentives can be reduced and
incentives increased the better will be the performance.
It has been shown that sales force motivation increases when the sales people have a sense of
doing a worthwhile job. In other words the desire for praise and recognition, the avoidance of
boredom and monotony, the enhancement of self-image, freedom from fear and worry.
It should also be noted that remuneration should be a important part of of motivation. This does
not mean paying the most amount of money although the company will have to have a
considerable remuneration package to retain staff. In drawing up a remuneration plan, this would
normally include a basic salary plus some element for special effort, such as a bonus or
commission the following should be considered:
A key concept in sales force motivation is that the individual salesperson will exert more effort if
these are led to concentrate on:
The motivational functions of the sales manager consists of increasing personal benefits to sales
people for work goal attainment, making the path to these pay-offs easier.
Preparing the sales plan
No sales plan will be identical to another. However certain general guidelines can be given and
they are set out in the table below:
Task The standard How to set the standard Performance measurement What to check
Analysis of territorial
Sales target per period of time potential, individual customers Comparison of individual Significant shortfall between
1. To achieve personal sales
for individual groups and or potential. Discussion and salesperson's product sales target and achievement over
targets
products agreement between against targets meaningful period of time
salesperson and manager.
Analysis of individual
Achievement of specified Failure to achieve agreed
2. To sell the required range customer record of potential Scrutiny of individual
range and quantity of sales to a objectives. Complacency within
and quantity to individual and present sales. Discussion customer records. Observation
particular customer or group of range of sales made to
customers and agreement between of selling in the field.
customers within a time period individual customers.
salesperson and manager.
High ratio of calls to an
To achieve appropriate call Analysis of individual
Scrutiny of individual individual customer relative to
3. To plan journeys and call frequency on individual customers potential. Analysis
customer records. Analysis of that customers yield. Shortfall
frequencies to achieve minimalcustomers. Number of live of order/call ratios. Discussion
order/ call ratio. Examination on agreed total number of calls
practicable selling cost customer calls during a given and agreement between
of call reports. made over an agreed period of
time period salesperson and manager.
time.
Identify total number of
Number of prospect calls Examination of call reports, Shortfall in number of prospect
potential and actual customers
during a time period. Selling records of new accounts call from agreed standard. Low
4. To acquire new customers that could produce results.
new products to existing opened, ratio of existing to ratio of existing to potential
Identify opportunity areas for
customers. potential customers. customers.
prospecting.
To exercise the necessary Regular observations of field Failure to identify objectives of
Standard to be agreed in
skills and techniques required selling using a systematic each stage of sales approach,
5. To make a sales approach of discussion between manager
to achieve the identified analysis of performance in identify specific areas of skill
the required quality and salesperson related to
objective. Continuous use of each stage of the sales weakness, use of support
company standards.
sales material. approach. material.
All companies set themselves overall objectives, which in turn imply the development of specific
marketing objectives. In this article we have discussed personal selling in the context of overall
marketing activity.
The benefit to sales force management of following our approach can be summarized as follows: