SalesManagement

InteractiveTraining

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 ProcessPreparation• 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

– sales force changes– territory changes– training course changes– special reporting– staff to fire

• advertising for staff• recruiting staff

Territory Decisions (1)

Sales Force Changes– 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 ProcessAdvertise for Staff

– 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

ResultsEach 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 ResultsOn an investment centre basis and so shows:

Sales RevenueGross ProfitSelling CostsServicing CostsTraining CostsReporting CostsManagement CostsSickness CostsRecruiting CostsContributionWorking CapitalCapital ChargeResidual ProfitReturn 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:

• 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 ReportsThese 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• 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.

SalesManagementInteractiveTrainingExperience