9TH EDITION
Manning and Reece
CHAPTER 17
MANAGEMENT OF
THE SALES FORCE
17-1
LEARNING OBJECTIVES
Describe the functions of a sales manager
List and discuss the qualities of effective
sales managers
Discuss recruitment and selection of
salespeople
Describe effective orientation, training, and
motivation practices
Develop understanding of selected
compensation plans
List and discuss sales performance evaluation
criteria
17-2
SALES MANAGER DUTIES
”The sales manager typically
performs the functions of
recruiting, training,
organizing, and supervising
the sales force.”
17-3
SALES MANAGEMENT FUNCTIONS
STRUCTURE
CONSIDERATION
PEAK PERFORMANCE COACH
SITUATIONAL LEADERSHIP
17-4
STRUCTURE
1. Regular planning
2. Expectations clearly
communicated
3. Prompt, firm decisions
4. Regular performance
appraisals
17-5
CONSIDERATION
1. Regular and effective
communication
2. Each salesperson
treated as individual
3. Reward good
performance often
17-6
SITUATIONAL LEADERSHIP
Leader’s style should
match situation
Develop strong ethics
and character
17-7
PEAK PERFORMANCE COACHING
1. Help salespeople
recognize need to
improve
2. Help develop their
commitment to
improve
3. Explore solutions
17-8
RECRUITMENT AND SELECTION
Determine job requirements or
specifications
Search for applicants
Select best qualified applicants
behavior
SET SPECS
SEARCH
SELECT
17-9
DETERMINE JOB REQUIREMENTS
1.
2.
3.
4.
New or established
territory
New or well-established
product
Work independently or
closely with manager
Likelihood of travel,
transfer, promotion
17-10
SEARCHING FOR APPLICANTS
1.
2.
3.
4.
5.
Within company
Colleges and universities
Trade and consumer
advertising
Employment agencies
Internet services/searches
17-11
SELECTING APPLICANTS
SELECTION CRITERIA
--High motivation
--Reliability, check
references
--Performance on some
activity
--Knowledge of business,
market, consumers
17-12
INTERVIEW APPLICATION:
SELL YOURSELF
What would you tell an interviewer about…
-- Yourself?
-- Your knowledge of sales process?
-- Greatest strengths and weaknesses?
-- Most boring job?
-- What was your biggest contribution at your
last job?
-- Why should he/she hire you?
See "Selling in Action" Chapter 17.
17-13
ORIENTATION AND TRAINING
Provide orientation before
person begins work
Initiate training program
…tasks, execution, role
Often 12-18 month period
17-14
SELLING POWER
17-15
DIMENSIONS OF FORMAL
TRAINING PROGRAM
1.
2.
3.
Knowledge of product line,
territory, business trends,
firm’s marketing strategy
Attitudes toward the
company, products,
customers
Skills—applying selling
principles and practices
17-16
SALES FORCE MOTIVATION
INTERNAL MOTIVATION
--Achievement, challenge, growth,
advancement
--Internal motivators often have long-term
positive impact
EXTERNAL MOTIVATION
-- Sales contests, incentive plans, cash
bonuses
-- Actions taken by firm to reward sales
performance
17-17
COMPENSATION PLANS
Compensation practices vary
Usually combination of
--Direct compensation, salary and
commissions
--Indirect compensation, pension,
insurance plans, vacations
Show me the money!
17-18
COMPENSATION PLAN GUIDELINES
Define marketing objectives
Field test compensation plan
Explain plan to sales staff
Change plan as conditions warrant
Show me the money!
17-19
FIVE COMPENSATION PLANS
Straight commission
Commission plan with
salary or draw provision
Commissions with draw or
salary plus bonus
Fixed salary plus bonus
Straight salary
Show me the money!
17-20
AWARD/INCENTIVE PLAN BASES
Specific product movement
Percentage sales increase
New accounts gained
Increased activity…number
of new prospect calls
Show me the productivity!
17-21
COMPENSATION—QUANTITATIVE
CRITERIA
Sales volume in
dollars
Sales compared
with last year
Volume by
product or line
Number of new
accounts
Amount of new
account sales
Net profit on each
account
Number of
customer calls
made
17-22
COMPENSATION—QUALITATIVE
CRITERIA
Attitude
Product knowledge
Communication skills
Personal experience
Customer goodwill generated
Selling skills
Initiative
Last slide Chapter 17.
17-23