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Dr.S.John Mano Raj
Managing Sales Force
Dr.S.John Mano Raj
Recruitmentand
Selection
Recruitmentand
Selection
AssimilationAssimilation
TrainingTraining
MotivationMotivation
Compen-sation
Compen-sation
PerformanceEvaluation
PerformanceEvaluation
SupervisionSupervision
The Sales ManagementProcess
Dr.S.John Mano Raj
• Recruitment and SelectionRecruitment and Selection– One of the sales manager’s greatest
challenges– Careful selection is important for two reasons:
• Substantial costs involved• Mistakes are costly and detrimental to customer
relations and sales-force performance
Dr.S.John Mano Raj
Issues
• Deciding on no. of sales force
• Deciding on Kind of sales force
Dr.S.John Mano Raj
Traits of Top Sales Performers Strong, healthy self esteem
Sense of urgency and competitiveness
Persuasive
Assertive
Sociable
Willing to take risks
Understand complex concepts
Creative in developing solutions
Possess empathy
Dr.S.John Mano Raj
Job Summary
• Locations : Kolkata, Visakhapatnam• Experience : 5 - 15 years • Key Skills : Sales, Marketing, Development,
Channel sales, Dealer Management, Pesticides, Seeds, Soluble Fertilisers
• FunctionSales/ Business Development
• Role• Sales Exec/ Sales Representative• Channel Sales Manager• Area/ Territory Sales Manager
Dr.S.John Mano Raj
Job Description:
• Achieve sales target for entire agri-inputs basket including crop care chemicals, seeds, and soluble fertilizers.
• Conduct market research on competitor performance and activities as a plug-in to planning and operational efficiency
• Nurture and develop relationships with the distribution network (Dealers and Distributors) to ensure adequate market penetration
• Monitor extension activities within the territory • Engage in customer relationship management & monitoring and
resolving complaints • Ensure profitability of the territory by focusing on rotation of working
capital, ensuring low bills receivables • Developing and monitoring budgets for operational functioning • Liaison with local authorities, agricultural universities
Dr.S.John Mano Raj
Head-Sales & Marketing, Pune:
• Company Profile: a large, rapidly expanding, leading, agri-inputs organisation - leaders in their field. The positions are based in various cities in Maharashtra. Our clients offer excellent salary & career growth prospects.
• Job Profile: reporting to the CEO, providing strategic direction to the business, will head the Sales, Brand & Marketing function, will be involved in achieving sales targets, managing client/dealer operations/training, maintaining relationships with financial institutions, lead a large All-India team
• Candidate Profile: Master degree in Agri Science/MBA in Agri Science with 15-25 years relevant experience
Dr.S.John Mano Raj
GM Sales & Marketing - Agro (20+ yrs) Job Description
Head of Sales & Marketing for Cotton Crop.
Compensation : Best in the Industry
Desired Candidate Profile -
- B.Sc/M.Sc (Agri) with MBA having minimum 20 years experience in Cotton seed business out of which 5 to 8 years as national level player.
- Exposure in Channel Management, good knowledge on Cotton Crop Marketing, a team player and motivator.
Company Profile
Penta HR recruiting for a market leader in the Seed Industry, especially Cotton Crop(RCH 2 Bt etc).Company is having national presence with excellent infrastructure for Research and farming ,with a talented team in all domains. An organization for ample career growth.
Dr.S.John Mano Raj
Top Accountabilities:
- Deliver sales profit growth , by leading a sales team of Regional Business Managers, Area Sales Area Sales Managers
- Own & drive Sales Strategy and execution plans to deliver value share gains and financial leverage
- Work with Sales Operations & Customer Marketing team to ensure efficient and effective implementation of Brand & Trade activities
- Nurture Customer relationships & implement category growth plans
- Understand customer dynamics & needs
- Nurture relationships among key customers across functions (supply, Finance, consumer Marketing & customer marketing)
Dr.S.John Mano Raj
Top Accountabilities:…….
Leverage shopper and customer insights into tangible customer/trade plans and category developing results
- Build customer knowledge in business
- Capability Development - Develop the capability of team & self
- Recruit, retain, motivate and manage performance of sales talent
- Work with Sales Operations team to build required capabilities in the team, including delivering capability training modules
- Build a high performing climate by creating the right environment
- Contribute commercial insight and leadership
- Provide competitor intelligence.
- Turn commercial opportunities into reality.
Dr.S.John Mano Raj
• TrainingTraining– Principal methods
used are on-the-job training, individual instruction, in-house classes, and external seminars
– Popular training techniques include instructional videotapes/DVDs, lectures, role-playing exercises, etc.
Dr.S.John Mano Raj
Training includes...
Training includes...
Nonselling dutiesNonselling duties
Industry and customer characteristics
Industry and customer characteristics
Product knowledgeProduct knowledge
Selling techniquesSelling techniques
Company policies and practice
Company policies and practice
Training the Sales Force
Dr.S.John Mano Raj
A-C-M-E-E
Dr.S.John Mano Raj
• MotivationMotivation– both psychological and financial
encouragement– Psychological encouragement includes
appeals to emotional needs, recognition, and peer acceptance
– Financial encouragement includes
monetary rewards and fringe benefits and sales contest awards
Dr.S.John Mano Raj
Compensating the Sales Force
CommissionCommission
SalarySalary
CombinationPlans
CombinationPlans
Dr.S.John Mano Raj
StraightCommission
StraightCommission
The salesperson is paid some percentage when a sale is made.
The salesperson is paid some percentage when a sale is made.
StraightSalary
StraightSalary
The salesperson receives a salary regardless of sales productivity.
The salesperson receives a salary regardless of sales productivity.
Compensating the Sales Force
Dr.S.John Mano Raj
Supervising and Controlling Sales Force
• Managing Sales expenses
• Sales Quota
• Sales Territories
• Performance Evaluation
Dr.S.John Mano Raj
• How salespeople and sales managers spend their time
Dr.S.John Mano Raj
Sales Forecasting
Dr.S.John Mano Raj
Cont….
Sales Forecasting
Sales forecasting, according to Cundiff and Still, is “an
estimate of sales during a specified future period which is
tied to a proposed marketing plan and which assumes a
particular set of uncontrollable and competitive forces.”
Dr.S.John Mano Raj
Cont….
Purpose of sales forecasting
Steps in Sales Forecasting
1. Defining the objectives to be achieved.
2. Dividing various products into homogeneous groups.
3. Analysing the importance of various factors to be studied for sales
forecasting.
4. Selecting the method.
5. Collecting and analysing the related information.
6. Drawing conclusions from the analysis made.
7. Implementing the decisions taken.
8. Reviewing and revising the sales forecasting from time to time.
Dr.S.John Mano Raj
Four different types of forecasts :
1. Market Potential
2. Market Forecast
3. Sales Potential
4. Sales Forecast
Dr.S.John Mano Raj
Market Potential Market Forecast
Sales Potential Sales Forecast
Industry Level
Firm Level
Best PossibleResults
Expected Resultsfor given strategy
Dr.S.John Mano Raj
Sales Quota
• Individual sales target figure assigned to each sales unit such a sales person, dealer, distributor, region, or territory, as a required minimum for a specified period (month, quarter, year). Sales quotas may be expressed either in dollar figures (monetary terms) or in number of goods or services sold (volume terms).
Dr.S.John Mano Raj
WHY ARE QUOTAS
IMPORTANT?
• Quotas provide performance targets.
• Quotas provide standards.
• Quotas provide control.
• Quotas provide change of direction.
• Quotas are motivational.
Dr.S.John Mano Raj
METHODS FOR SETTING SALES
QUOTAS
• Quotas based on forecasts and potentials.
• Quotas based on forecasts only.
• Quotas based on past experience.
• Quotas based on executive judgments.
• Quotas salespeople set.
• Quotas related to compensation.
Dr.S.John Mano Raj
LEVELS OF ORGANIZATIONAL SALES PLANNING
LEVEL PURPOSE: WHAT IS PLANNED
WHO (USUALLY) IS INVOLVED
1. Marketing •Organizational goals (increase in market share or penetration, increase in customers, increase in sales)
Upper management and sales and marketing executives
2. Regional plan •Priorities (which regions, markets, and products to emphasize)
Regional and district sales managers (which input from sales reps)
3. District plan •Budget allotment (for promotion, advertising, new employees, sales incentives, and so on)
District managers and sales representatives
4. Territorial plan •Goals for number of new customers and for increased business with old customers in each region and territory
Sales representatives
Dr.S.John Mano Raj
A GOOD OBJECTIVE AND
QUOTA PLAN IS SMART
Specific
Measurable
Attainable
Realistic
Time specific
Dr.S.John Mano Raj
SETTING OBJECTIVES AND QUOTAS IS A TWO-WAY PROCESS BETWEEN MANAGER AND SALESPERSON
M u tu a lly S et O bjecti ves a n d Q u ota s
M ea su re P erform a n ce
E va lu a te P erform a n ce
R ewa rd or P en a lty
P u bliciz e P erform a n ce R esu lts
Dr.S.John Mano Raj
Performance Evaluation
• Both quantitative and qualitative factors should serve as bases for performance evaluation.
– QuantitativeQuantitative bases are specific and objective.
– QualitativeQualitative factors are limited by the subjective judgement of the evaluators.
Dr.S.John Mano Raj
Evaluating the Sales Force : Quantitative
Output Measures• Sales revenue achieved• Profits generated• Percentage gross margin achieved• Sales per potential account• Sales per active account• Sales revenue as a percentage of sales
potential• Number of orders• Sales to new customers• Number of new customers.
Dr.S.John Mano Raj
Evaluating the Sales Force : Quantitative
Input Measures• Number of calls made
• Calls per potential account
• Calls per active account
• Number of quotations
• Number of calls on prospects
Dr.S.John Mano Raj
Evaluating the Sales Force : Quantitative
Combining output and input1. Strike rate = Number of orders / No. of quotations
2. Call Effectiveness : – Sales revenue per call ratio– Profit per call ratio– Order per call ratio
3. Average order value = Sales revenue / No.of orders
4. Prospecting Success ratio = No. of new customers / No. of
prospects visited
5. Average profit contribution = Profit generated / No. of orders
Dr.S.John Mano Raj
Evaluating the Sales Force : Qualitative
Sales skill
• Opening the sale
• Identifying customer needs
• Quality of Sales presentation
• Use of visuals
• Ability to overcome objections
• Ability to close the sales.
Dr.S.John Mano Raj
Evaluating the Sales Force : Qualitative
• Customer relationship
• Self organisation
• Product knowledge
• Cooperation and attitude.
Dr.S.John Mano Raj
Evaluation Matrix
Quantitative Measured results
Good
Bad
Qualitative M
easured Results
PraiseRewardPromise
Limited praiseGuideTrain
Limited PraiseAdviseEducate
DiscussTrainPunishRemove
Good Bad
Dr.S.John Mano Raj
NameSales
(Rs.000s)
GrossMargin(Rs.000
s)
LiveAccou
nts
Calls Made
No. ofCustomers
called upon
No. ofpotential
accounts
Territory potent
ial(Rs.000s)
A 298 101 222 1472 441 503 34,620
B 589 191 333 1463 432 524 36,360
C 391 121 235 1321 402 711 62,100
D 440 132 181 1152 211 483 43,800
E 240 65 296 1396 421 462 38,620
ABC Company introduced a new fertilizer has appointed five sales persons to promote their product in to five different territories. The sales record and the
market data of five sales persons belonging to their territory for the year 2010 – 11 is furnished below.
QuestionsEvaluate the performance of each salespersonWhat further information is needed?What action would you take?
