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Copyright 2006 by The McGraw-Hill Companies, Inc.
Chapter 10
Sales Training: Objectives,
Techniques, and Evaluation
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Learning Objectives
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Identify the key issues in sales training.
Understand the objectives of sales training.
Discuss the development of sales training programs.
Understand the training of new sales recruits and
experienced salespeople.
• Define the topics covered in a sales training program.
• Understand the various methods for conducting sales
training.
• Discuss how to measure the costs and benefits of sales
training.
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Sales Training Issues
• Who should be trained?
• What should be the primary emphasis in the
training program?
• How should the training process be structured?
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on-the-job training and experience?
formal and more consistent centralized program?
web-based?
instructor-based?
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Sales Training Objectives
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Increase productivity
Improve morale
Lower turnover
Improve customer relations
Improve selling skills
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Obstacles to Introducing Training
• Top management not dedicated to sales
training
• Lack of buy-in from frontline sales
managers and salespeople
• Salespeople’s lack of understanding of
what training is supposed to accomplish
• Salespeople’s lack of understanding
regarding application of training to
everyday tasks
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Well-Designed Training Program
• Analyzes sales force needs
• Sets specific, realistic, and measurable training
objectives
• Allows for adequate development and timely,
effective implementation
• Subjects itself to evaluation and review
– What do we want to measure?
– When do we want to measure?
– How do we do it? What measuring tools are
available?
• Modifies to achieve greater effectiveness
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Recent Shifts in Training New
Sales Recruits
• Companies with less than $5 million in annual sales are
spending more on sales training per new hire - $5,500
worth of training per salesperson.
• Training in smaller companies has increased from 3.3
months to 4.4 months.
• Smaller companies are placing more emphasis on
training than several years ago.
• Companies are spending time and money on training
experienced salespeople
• Companies with more than $5 million in annual sales,
are spending less money on training
Source: Christen P. Heide, Dartnell’s 30th Sales Force Compensation Survey: (Chicago:
Dartnell Corp., 1999)
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Recent Shifts in Training
Experienced Sales Personnel
• Experienced sales reps are given, on average,
32.5 hours of ongoing training per year at a cost
of $4,032 per rep
• Continuing increasing amounts of training
reflects a commitment to provide ongoing
learning opportunities for senior salespeople
• Companies are spending an increasing amount
of time on product training and less on training in
selling skills
Source: Christen P. Heide, Dartnell’s 30th Sales Force Compensation Survey: (Chicago:
Dartnell Corp., 1999)
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Sales Training Topics
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Product or service knowledge
Market/Industry orientation
Company orientation
Selling skills
Time and territory management
Legal and ethical issues
Technology
Specialized topics
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Product Knowledge
• Enables a salesperson to provide prospects and
customers with the critical information for rational
decision-making
• Involves
– Knowing how the product is made
– How the product is commonly used, and
– How it should not be used.
• Customers often want to know how competitive products
compare on
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price
construction
performance
compatibility with each other
• Companies that produce technical products spend a
greater amount of time on product knowledge
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Market/Industry Orientation Topics
• How a particular industry fits into the overall
economy
• Knowledge of the industry and the economy
• Economic fluctuations that affect buying
behavior and require adaptive selling techniques
• Customers' buying policies, patterns and
preferences in light of competition
• Customers' customers and what satisfies them
• Needs of both wholesalers and retailers
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Company Orientation Topics
• Company polices that affect their selling
activities
• How to handle customer requests for price
adjustments, product modifications, faster
delivery and different credit terms
• Sales manuals that cover product line
information and company polices
• A well-prepared sales manual gives a sales
representative quick answers to a customer's
questions
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Time and Territory Management
• Sales trainees need to learn to manage
time and territories
• 80/20 rule applies:
– 20% of the customers account for
– 80% of the business and
– Require a direct proportion of time and
attention
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Legal/Ethical Issues
• Federal law dictates corporate action or
avoidance of action in areas of marketing, sales
and pricing
• Sales personnel need to understand the federal,
state and local laws that constrain their selling
activities
• Statements made by salespeople carry both
legal and ethical implications
• Lapses in ethical conduct often lead to legal
problems
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Technology
• Notebook computers
– Presentations
– connecting to company intranet or extranet
– delivering documentation quickly and accurately
• Home offices eliminate the need to go to another office
• Salesperson can be almost totally self-sufficient with
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high-speed network connection
computer
printer
cell phone
• Effective computer use affords sales personnel more
face-to-face customer contact time
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Specialized Training Topics
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Overcoming price objections
Holding the line on price
Working the trade show
Problem solving
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Keys for Effective OJT
1. Teaming - Bringing together people with different skills
to address issues.
2. Meetings - Setting aside times when employees at
different levels and positions can get together and share
thoughts on various topics.
3. Customer interaction - Including customer feedback as
part of the learning process.
4. Mentoring - Providing an informal mechanism for new
salespeople to interact and learn from more
experienced ones.
5. Peer-to-peer communication - Creating opportunities for
salespeople to interact together for mutual learning.
Source: The Education Development Center (www.edc.org)
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Classroom Training
• Trainee receives standard briefings in
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product knowledge
company polices
customer and market characteristics
selling skills
• Formal training sessions avoid wasting
executive time
• Classroom sessions permit use of audiovisual
materials and technical resources
• Interaction between sales trainees builds
camaraderie
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Measuring the Costs and Benefits
• Sales training consumes substantial time,
budget and support resources
• Relationship between sales training and
revenue is difficult to measure
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Broad Benefits
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Improved morale
Lower turnover
Higher customer satisfaction
Management’s commitment to quality and
continuous improvement
• Measuring changes in skills, reactions and
learning assists both new and experienced
sales personnel
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Key Terms
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sales training analysis
on-the-job training (OJT)
role-playing
electronic training methods
sales training costs
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Mark W. Johnston
Rollins College
McGraw-Hill/Irwin
Greg W. Marshall
Rollins College
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