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5. Sales Force – HR & Administration August 19, 2013

5. Sales Force - HR Administration

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sales force

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Manning, recruitment & selection

Sales TrainingDecision Aims, Content, Methods, Execution & Evaluation ACMEE- method Execution trainer sales background, vision, energy, perseverance short term & long term, time table, agenda, training aids, feedback from trainees before, during, after the training programme and monitoring of effectiveness post the training programme.Evaluation reactions, learning, behaviour, results w.r.t. sales, profits, customer satisfaction, number of new customers & market penetration through company data, market survey, supervisors judgement periodically Reinforcement through refresher training, on-the-job mentoring and online follow-up

Sales Force HR & AdministrationManning, recruitment & selectionInduction, training & motivationCompensationMeetings, reviews & leadershipEvaluation, audit & controlManning, recruitment & selectionSales organisaton structure, spread, levels (3-4), span of control (4-5)Job analysis objective, reporting-to, reported-by, product knowledge requirements, knowledge of customers to be dealt-with, information assimilation & reporting requirements with frequencies.Job description - A document covering reporting relationships with superiors, juniors as well as peersJob objectiveduties & responsibilitiesJob performance required and evaluation criteriaPosition profile covering education, experience, preferred current employers, age, location of job, KRAs Manning, recruitment & selection . contd. 1Recruitment sources within the company existing sales employee references -their relatives, professional contactsrecommendations of sales executives / managers based on their past contactsinternal transfers from other departmentsoutside the companydirect unsolicited applicationsemployment agenciesemployees of customers / vendorscampus recruitmentjob portals, newspaper advertisementsothers .

Manning , recruitment & selection . contd. 2Selection CV scanning to eliminate irrelevant Telephonic interviewSkype interviewFormal application formPersonal interview to establish the candidate fit with the job based on his professional , educational and personal background . May involve written test, psychological test, group discussionsRating scales Health , reference & testimonial check

Manning, recruitment & selection .. Contd. 3

Manning Relative ability - product & market knowledge, past performance of target achievement, verbal & written communication and selling skillsEffectiveness social, cultural and physical characteristics so as to make the sales person and the customers comfortable with each otherExisting relationships - which are helping in achieving a stable sales in line with quotas / targets to be studied and strengthened wherever required.Routing, Scheduling & Time managementRouting to reduce travel time & cost with a view to maximize coverage (PJP)Scheduling decide on the time required for activities involved viz. sales call, service call, travel time, reporting and paper work, waiting time etc. and schedule a typical days working hours.Time management - support of technology laptops, mobiles, reporting softwares, ERP, audio / video conferencing, motorized movements vs. public transportInduction & trainingInduction Company, product, customer, competition, selling skills / role plays, case studies, simulated exercises, exposure to related functions viz retail shop, warehouse, logisticsCommercial T&C terms of payment advance, direct credit, documents through bank, bank guarantees, pricing, LD penalty, central excise duty, central sales tax (CST), value added tax (VAT) etc.Daily working & reporting on the job training, mentoring, online training, capturing & reporting of daily work, working sequence & discipline

MotivationMotivation The desire to spend effort to fulfill a need is MOTIVATION. Derived from Latin word movere meaning to moveDimensions Intensity (physical & mental effort), persistence (how much & how long perseverance) and direction (customer category, product category..)

Types intrinsic (permanent) ; extrinsic ( pay-off related)

IntensityDirectionPersistenceOutcomeMotivation .. Contd. 1Why least supervised, remote locations, frustration of rejection need to remain self startersTheoriesMaslows hierarchy of needsHerzbergs dual factorVrooms expectancyChurchill, Ford & Walker modelTools in motivational mix Motivation .. Contd. 2Motivation through leadershipDemonstrate good examplesTransparent communicationInterpersonal contactRecognize a job well done - make it knownReprimand privately, politely but firmlyAppear to be fair more important than being fair transparency in deeds & deals Sales Force CompensationSeven roles of . Provide a living wageProvide a motivational platformFair foundation - equal pay for equal performanceSimple to understand and comprehend / relate-toReflective of performance changesEconomical to administerUnify company & individual goalsTypes Only salary ( productivity not required to be measured)Only commission..(industry specific e.g. insurance, real estate)Combination .. ( productivity orientation)

Sales meetings, reviews & leadershipSales personnel usually not satisfied with hygiene factors alone viz compensation, working environment, supervision, fringe benefits, reimbursements etcThey require motivation & job satisfaction through challenges, responsibility+, promotion, regular communication and above all recognition. Sales management uses 2 main mechanisms to stimulate these needs : sales meetings & contests.Sales meetings, reviews & leadership contd.Sales meetings A-C-M-E-E approach; local; regional; national; audio / video ; monthly ; quarterly ; annual ; stag ; with spouse etcSales contests to provide extra incentives to increase sales volume or to get more profitable sales volume or both AND to fulfill individual needs for achievement, recognition, esteem, self-actualization AS WELL AS develop team spirit, boost team morale increased productivity.Sales reviews - essential component of both sales meetings as well as sales contestSales Leadership uses sales meetings & contests as effective tools to enhance sales effort & improve productivity.

Evaluation, audit & control of sales forceControl comprises ofEstablishing performance standardsCapturing / recording actual performanceEvaluating performance against standardsTaking corrective actions

Evaluation, audit & control contd.1Quantitative performance standards (11) 1.quotas/targets; 2.sales expense ratios; 3.territorial profit margin ratios; 4.territorial market share; 5.outlet coverage index; 6.call frequency; 7.calls per day; 8.order call ratio;9.average cost per call; 10.average order size; 11.nonselling activities;12.combination of one or more of above

Qualitative performance standards (11) 1.product knowledge ; 2.customer relations; 3.service follow-up; 4. punctuality; 5. attitude; 6. dress & appearance; 7. diligence; 8. cooperation; 9.adaptability; 10. reliabiity; 11. accuracy evaluation judgement based bias factor

Evaluation, audit & control contd.2Recording actual performanceSales force reports (11) 1.work plan( to plan the work & work the plan); 2.calls made; 3.expenses; 4.new business; 5.lost sales; 6.damage & expiry; 6. market stock; 7. shelf life - market stock; 8. unresolved market complaints; 9. settlement of trade claims; 10. EPOB; 11. working day time utilisation

Evaluating performance against standardsQuantitative parameters mathematics (80% weightage)Qualitative parameters judgement (20% weightage)

Evaluation, audit & control contd.3Market / Sales force Audit ( Customer feed-back)An average business losses half of its customers in 5 years; half of its employees in 4 years; and half of its investors in a year due to certain shortcomings / weaknessesMarketing audit - a comprehensive, systematic, diagnostic and prescriptive tool - covers companys major functions sales, marketing, purchase, finance, logistics, HR with a view to find outWhat is wrongWhy it went wrongCorrective actions required

Evaluation, audit & control contd.4Corrective actions ( the dynamic phase of control)Improve performance training, mentoring, coaching, rewards, contests, punishment !Re-evaluate & adjust standards in line with market / competitive realityAdjust the criteria used in measuring the extent of achievement

Reference TextSales Management Still, Cundiff & GovoniChapters 10, 11, 12, 13, 14, 15, 16, 18 & 19

Sales & Distribution Management Havaldar & CavaleChapters 6 & 7

Class Quiz-5

A-C-M-E-E Approach to Sales Training ( Kiplings Six Honest Serving-Men) WHY ?WHAT ?HOW ?WHO ?WHEN ?WHERE?AIM(S)CONTENTMETHOD(S)EXECUTIONEVALUATION(Modify, Redesign, Repeat & so forth)Back