SALES FORCE MANAGEMENT

Presented to: Ms. Saman IzharPresented by: Syed Ahmed Hussain SALES FORCE MANAGEMENT

Introduction

Although selling is an extremely important function in most organizations it does have something of a bad reputation. This has mainly come about from the kind of hard selling associated with door-to-door selling.

This image is quite far removed from the majority of selling that takes placeespecially in the business-to-business sector.

Much of a salespersons time is not actually taken up by selling but with avariety of other tasks that they have to undertake in order to achieve the sale.

Sales organizationSales force organization refers to the type and size of the sales force. The type determines the degree of controllability while the size has profit implications. If the sales force is large the organization has to decide about the kind of specialization and co-ordination to use.

Sales Force ManagementEfforts put forth to attain a companys sales objectives.

Sales management can involve any of the following activities:

(1) formulation of sales strategy through development of account management policies, sales force compensation policies, sales revenue forecasts, and sales plan.

(2) implementation of sales strategy through selecting, training, motivating, and supporting the sales force, setting sales revenue targets.

(3) sales force management through development and implementation of sales performance, monitoring, and evaluation methods, and analysis of associated behavioral patterns and costs

Sales Force ObjectivesA Sales Force will have one or more of the following tasks.

Prospecting search for leads

Targeting allocation of time between prospects and customers

Communicating info about company and products

Selling Approach, presentation, answering objections, closing sales

Servicing consulting, technical, financing, etc.

Info gathering market research

Allocating scarce products to customers.

Sales Force StrategyWays sales reps work with customers to maintain companycompetitive edge:

Rep to buyer discuss issues with a prospect or customer

Rep to buyer group rep gets to know as many members of buyer group as possible

Sales team to buyer group

Conference selling company sales rep and resource group to customer to talk big problems or opportunities

Selling Seminar Company team to group of buyers/customers

Once company has strategy can go with direct sales force or contractual force. Direct sales force is standard sales force with office and field reps, while contractual reps are purely commission sales forces.

Sales Force StructureTerritorial each rep gets own piece of land to work equally divided by workload or potential result is no customer confusion as to who the rep is

Product Sales force sells along product lines

Customer Sales force sells along Customer/Industry lines

Complex combination of both

Sales Force SizeDepends upon the number of customers you want to reach then:

Group customers into classes by annual sales volume

Establish desired call frequency-The number of calls to be made per year on each account in a size class

Classes size time freq. = workload

Determine number of calls a rep can make a year

Workload divided by rep calls per year = number of reps needed

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Sales Force Management

Recruitment

It is the process of finding out candidates, who are encouraged to apply. Selection is the process of choosing some out of many candidates.

Therefore, we can say that selection is recruitment, but recruitment is not selection.

Selection is the process of rejection of unfits.

Recruitment precedes the selection process.

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SelectionThe process of selecting differs from one place to another. Each firm has its own method of selecting people. The qualities expected must match with the job description and the person should be qualified enough too. The steps followed for selection is the same in all the places. Application BlankScreeningReferencePersonal InterviewTestMedical examinationFinal interview

Application Blank: information about the background of the applicant.Screening: Evaluating a large number of subjects to identify those with a particular set of attributes or characterstics.

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TrainingTraining is the continuation of selection. After selection, the sales manager will have two options.

Send him to the work field directlySend him for training program

It is always advisable to train a person before sending him to the workfloor.Training means the process of perfecting the salesmen for their work. It is the organized procedure through which knowledge as well as skill, for a particular purpose, is acquired.

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Training MethodsThere are five training methods. 1. Class Room / Conference Training

2. Behavioral Learning / Simulations

3. Online Training

4. Absorption / Self learning Training

5. On-The-Job Training

SupervisingDirecting the sales force

Identify customer targets and set call norms

Develop prospect targets

Ensure efficient use of time and assets

MotivationMostly believed that the higher the salespersons motivation, the greater the effort and the resulting performance, rewards, and satisfaction-and thus further motivation.

Sales managers must be able to convince salespeople that they can sell more by working harder or by begun trained to work smarter

Sales managers must be able to convince salespeople that the rewards for better performance are worth the extra effort.

MotivationIn this stage organization identify the attributes that motivates the sales executive to perform well.

There are two types of incentives given by the organizations

They are

FINANCIALNON-FINANCIALINCENTIVES

Types of Incentives

FINANCIAL INCENTIVES * Salary package * Flexible expenses * Fringe benefitsetc

NON-FINANCIAL BENEFITS * Promotion * Recognition * Awards

Fringe benefits:Compensation in addition to direct wages or salaries, such as company car, house allowance, medical insurance, paid holidays, pension schemes, subsidized meals. Some fringe benefits are regarded part of a taxable income.

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EvaluatingTo know whether the sales executives are achieving the quotas set for them i.e sales plans, the reports of their performances are compared against the set standards.

On the basis of the information, the conclusions are drawn and accordingly incentives are announced.

If required the sales executives are motivated and trained.

CompensationCOMPENSATION is made in three ways.

Direct salaryDirect CommissionCombined plans

Compensation

Direct salary: In this method sales executives are given fixed salary per month.Direct commission: In this case the executives will be working on commission basisEg : Life insurance agents.Combined Plans: It is a mixture of straight salary and straight commission plans. In this method the sales executives are paid their regular salary plus their commission on the sales they make. Eg. BMTC pays their conductors a fixed salary + 2% Commission on the sale of tickets.

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