Sales
Management
Interactive
Training
Experience
The Simulation
Is designed to allow participants to:
– investigate
– experience
the process of Sales Management
This involves making decisions covering:
– staff selection
– training and development
– territory management
It uses a computer model to simulate the
impact of these decisions.
The Process
Preparation
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•
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•
familiarisation
define responsibilities
set objectives
decide strategies
Decision Making
• submit decisions
• simulate impact
• analyse results
• recruit sales people
Review & Debriefing
• make sales directors’ report
• review results
The Business Situation
• The senior sales management of a new territory
that consists of about 100 areas
each with different potential
• Selling a range of industrial consumables
that will be bought on a regular basis
• Need to hire and deploy a sales force
and then manage them
Decisions
Three types of decision:
• territory management
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sales force changes
territory changes
training course changes
special reporting
staff to fire
• advertising for staff
• recruiting staff
Territory Decisions (1)
Sales Force Changes
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increase salary
change home base
change region
dual call days
training course
optional reports
Each sales person is different
and is identified by a unique
number
Territory Decisions (2)
Territory Allocation/Deallocation
Sales person’s territory
can consist of one or more
area.
Each area is numbered
It is not necessary to
allocate all areas.
When deciding, you
should consider:
• potential
• number of customers
• travel
• Etc.
Territory Decisions (3)
Training can either be formal (attending a course) or
informal (dual calling with the region manager).
Training is concerned with improving
– selling skills
– product knowledge
– customer/industry knowledge
For courses you control duration and the mix of
skills & knowledge training.
Territory Decisions (4)
Regional Organisation
• There can be up to four regions (lettered A-D)
• Each has a Regional Manager who can spend up
to twenty days dual calling with his or her sales
people
• Each sales person must be allocated to a region
• Several reports are available detailing results for
individual regions
• You may wish to allocate responsibility for
separate regions to separate people
Recruitment Process
Advertise for Staff
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area for advertisement
advertisement size
salary range
skills & knowledge needs
Interview Results
– current salary, employer & home base
– perceived skills, knowledge & personality
Offer Job
– salary
– home base
Results
Each quarter you are provided with reports to
help you evaluate your decisions and your
sales force.
The standard reports are:
– Financial Results
– Territory & Regional Summaries
– Dual Call Commentary
– Training Summary
– Resignations
And optional reports thus:
– Area Summary
– Area Research
– Sales Workload
– Sales Call Analysis
Financial Results
On an investment centre basis and so shows:
Sales Revenue
Gross Profit
Selling Costs
Servicing Costs
Training Costs
Reporting Costs
Management Costs
Sickness Costs
Recruiting Costs
Contribution
Working Capital
Capital Charge
Residual Profit
Return on Capital
For the
• whole sales unit
• for each region
• for each sales person
• for each area
As appropriate
Territory & Organisation
These reports provide information about
the regions and for each region’s sales
people as follows:
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Salary
Miles Travelled
Selling Days
Home Bases
Territory Sizes
Dual Call Comments
This report shows the regional manager’s
perceptions about the sales people they dual
called with as follows:
• The number of day spent with the sales person
• Perceptions about product & customer knowledge, selling
skills and morale.
These perceptions can be:
V. Poor, Poor, Average, Good & V. Good
And their accuracy improves as the number of dual
call days increase.
Training Summary
This report provides information about the current
range of courses showing:
• Duration
• The mix of product & customer knowledge and
selling skills
• The number of sales people attending the course
• The cost of the course
Optional Reports
These either take sales force time or cost money:
• Area Summary provides financial information about each of a
sales person’s areas.
• Area Research provides information about the number of
competitors, penetration & share for served areas
• Area Potential provides information about the areas where the
company has no sales presence
• Sales Workload provides at all levels information about total
calls, total customers, the time spent selling. On courses,
preparing reports or off sick etc.
• Sales Call Analysis can be for al region’s sales people and
shows the number of calls on current & new customer,
revenue/call, gross profit/call, contribution/call and miles/call
Besides these reports you may ask for additional information.
Observations
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it takes time to understand
but the business still must be run
so your decisions will not be perfect
time will be a constraint
but, by the end you should be just in
command of your business!
• your business competencies will be
challenged
• we are here to guide you
• and you should have fun.
Sales
Management
Interactive
Training
Experience