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 0 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 1 in Chapter 17

Designing the Sales Force

Types of Sales Representatives
Deliverer Technician Demand creator

Order taker
Missionary
2003 Prentice Hall, Inc.

Solution vendor
Slide 2 in Chapter 17

To accompany A Framework for Marketing Management, 2nd Edition

Designing the Sales Force

Steps in Process
Objectives and strategy Structure
Objectives
Sales volume and profitability Customer satisfaction

Strategy
Account manager

Sales force size

Compensation
2003 Prentice Hall, Inc.

Type of sales force

Direct (company) or contractual
Slide 3 in Chapter 17

To accompany A Framework for Marketing Management, 2nd Edition

Designing the Sales Force

Steps in Process
Objectives and strategy Structure

Types of sales force structures:

Territorial Product Market Complex

Sales force size

Compensation
2003 Prentice Hall, Inc.

Key accounts
Slide 4 in Chapter 17

To accompany A Framework for Marketing Management, 2nd Edition

Designing the Sales Force

Steps in Process
Objectives and strategy Structure
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
Slide 5 in Chapter 17

Sales force size

Compensation
2003 Prentice Hall, Inc.

To accompany A Framework for Marketing Management, 2nd Edition

Designing the Sales Force

Steps in Process
Objectives and strategy Structure
Four components of compensation:
Fixed amount Variable amount Expense allowances Benefits

Sales force size

Compensation
2003 Prentice Hall, Inc.

Compensation plans
Straight salary Straight commission Combination
Slide 6 in Chapter 17

To accompany A Framework for Marketing Management, 2nd Edition

Managing the Sales Force

Steps in Sales Force Management
Recruitment and selection

Supervising
Motivating Evaluating

Training

2003 Prentice Hall, Inc.

To accompany A Framework for Marketing Management, 2nd Edition

Slide 7 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 8 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 9 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
To accompany A Framework for Marketing Management, 2nd Edition Slide 10 in Chapter 17

2003 Prentice Hall, Inc.

Managing the Sales Force

Motivating the Sales Force
Most valued rewards
Pay,

promotion, personal growth, sense of accomplishment and respect, security, recognition

Least valued rewards

Liking

Sales quotas as motivation tools Supplementary motivators

2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2nd Edition Slide 11 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 12 in Chapter 17

Personal Selling Principles

Major Aspects
Sales professionalism Negotiation
Sales-oriented approach
Stresses high pressure techniques

Customer-oriented approach
Stresses customer problem solving

Relationship marketing
2003 Prentice Hall, Inc.

Steps in industrial selling process

Slide 13 in Chapter 17

To accompany A Framework for Marketing Management, 2nd Edition

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)

Slide 14 in Chapter 17

To accompany A Framework for Marketing Management, 2nd Edition

Personal Selling Principles

Major Aspects
Sales professionalism Negotiation
Reps need skills for effective negotiation
Negotiation is useful when certain factors characterize the sale Negotiation strategy
Principled BATNA
Slide 15 in Chapter 17

Relationship marketing
2003 Prentice Hall, Inc.

To accompany A Framework for Marketing Management, 2nd Edition

Personal Selling Principles

Major Aspects
Sales professionalism Negotiation
Building long-term suppler-customer relationships has grown in importance
Companies are shifting focus away from transaction marketing to relationship marketing
Slide 16 in Chapter 17

Relationship marketing
2003 Prentice Hall, Inc.

To accompany A Framework for Marketing Management, 2nd Edition