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Chapter 17

Chapter 17. Managing the Sales Force. PowerPoint by Karen E. James Louisiana State University - Shreveport. 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.

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Chapter 17

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  1. Chapter 17 Managing the Sales Force PowerPoint by Karen E. James Louisiana State University - Shreveport To accompany A Framework for Marketing Management, 2nd Edition

  2. 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. To accompany A Framework for Marketing Management, 2nd Edition

  3. Deliverer Order taker Missionary Technician Demand creator Solution vendor Designing the Sales Force Types of Sales Representatives To accompany A Framework for Marketing Management, 2nd Edition

  4. Steps in Process Objectives and strategy Structure Sales force size Compensation Objectives Sales volume and profitability Customer satisfaction Strategy Account manager Type of sales force Direct (company) or contractual Designing the Sales Force To accompany A Framework for Marketing Management, 2nd Edition

  5. Steps in Process Objectives and strategy Structure Sales force size Compensation Types of sales force structures: Territorial Product Market Complex Key accounts Designing the Sales Force To accompany A Framework for Marketing Management, 2nd Edition

  6. Steps in Process Objectives and strategy Structure Sales force size Compensation 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 Designing the Sales Force To accompany A Framework for Marketing Management, 2nd Edition

  7. Steps in Process Objectives and strategy Structure Sales force size Compensation Four components of compensation: Fixed amount Variable amount Expense allowances Benefits Compensation plans Straight salary Straight commission Combination Designing the Sales Force To accompany A Framework for Marketing Management, 2nd Edition

  8. Recruitment and selection Training Supervising Motivating Evaluating Managing the Sales Force Steps in Sales Force Management To accompany A Framework for Marketing Management, 2nd Edition

  9. 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 To accompany A Framework for Marketing Management, 2nd Edition

  10. 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 To accompany A Framework for Marketing Management, 2nd Edition

  11. 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

  12. Managing the Sales Force • Motivating the Sales Force • Most valued rewards • Pay, promotion, personal growth, sense of accomplishment • Least valued rewards • Liking and respect, security, recognition • Sales quotas as motivation tools • Supplementary motivators To accompany A Framework for Marketing Management, 2nd Edition

  13. 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 To accompany A Framework for Marketing Management, 2nd Edition

  14. Major Aspects Sales professionalism Negotiation Relationship marketing Sales-oriented approach Stresses high pressure techniques Customer-oriented approach Stresses customer problem solving Steps in industrial selling process Personal Selling Principles To accompany A Framework for Marketing Management, 2nd Edition

  15. Prospecting and qualifying Preapproach Approach Presentation and demonstration Overcoming objections Closing Follow-up and maintenance (servicing) Personal Selling Principles Steps in Industrial Selling Process To accompany A Framework for Marketing Management, 2nd Edition

  16. Major Aspects Sales professionalism Negotiation Relationship marketing Reps need skills for effective negotiation Negotiation is useful when certain factors characterize the sale Negotiation strategy Principled BATNA Personal Selling Principles To accompany A Framework for Marketing Management, 2nd Edition

  17. Major Aspects Sales professionalism Negotiation Relationship marketing Building long-term suppler-customer relationships has grown in importance Companies are shifting focus away from transaction marketing to relationship marketing Personal Selling Principles To accompany A Framework for Marketing Management, 2nd Edition

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