TOPIC 8 SALES MANAGEMENT SALES TRAINING TOPIC 8 SALES MANAGEMENT

AIM: IDENTIFY SPECIFIC TRAINING NEEDS OF SP OBJECTIVES: 8.1. determine specific training need for a sales force 8.2. discuss the topics to include in a training program 8.3. describe the advantages of centralised & decentralised training 8.4. understand the use of line, staff & outside trainers 8.5. recognise the value of alternative training methods & media 8.6. describe the different methods for evaluating training results

Why train salespeople Increased productivity Reduced turnover Improved customer relations Better morale Improved time and territory efficiency

Planning for Sales Training Involves 3 related processes: Assessing sales training needs Setting objectives Setting a training budget

1.Assessing Training Needs A process for determining where problems & opportunities exist & where training can best address the issues Includes are review of the following: - mgt objs-strategic programs often focus on products, customers, & customer relationships. - sales force observation & survey –to identify shortcomings & build future training.

- customer info. – sending questionnaires to customers (which co does the best job, what do you expect from SP, etc.) -Co records – computer sophistication assists co’s in analyzing training needs cross-tabulation assists in identifying which SP needs which type of training. (CT-involves examining performance by certain sales criteria as years of experience or geographic areas)

Average order size/SP New customers/SP Total customers/SP Experience < 2 years 392 21 86 3-5 years 593 29 145 6-10 years 565 5 152 > 10 years 470 8 139 Region NW 528 6 140 SE 520 161 Mid west 512 18 107 SW 421 26 111 West 544 131

Results suggest that there may be a problem with both new & senior SP. New SP have lowest order size & no. of customers which may suggest training is needed. Senior SP with over 10 years experience appear to have problem with prospecting for new customers. Southwest has the lowest average order size & total customers per SP. Can design specific training programs for each group of SP.

2. Setting Objectives After assessing training needs of SP, specific training objs should be established. Should be specific & measurable Written obj’s are helpful Lack of mgt commitment is usually the reason for failure of sales training.

3. Setting A Training Budget New SP – companies send millions in training new SP. Retraining veteran SP – need to learn is never ending. Products change, mkt shift, territories are reorganized. Thus SP need additional training to help adjust to new environmental situations.

Developing The Training Program A number of critical decisions to the success of the individual training program must be addressed: What topics to cover Where to conduct the training What training methods to use Who should do the training

What Topics to Cover: Depends on product to be sold Purpose of training Background of those trained Product knowledge – many think that training is basically to improve selling skills. Selling – new SP must know sales process works to be effective & productive. Selling approaches differ from co. to co.

Experts posses 2 types of knowledge: declarative knowledge (permits them to recognize a selling situation requiring a somewhat unique selling process) & procedural knowledge (consists of the process of behaviors that are necessary to achieve a successful conclusion in a particular sales situation). Improving Teamwork – cross functional sales teams. Group of specialists, each contribute different skills. Requires new set of skills to work together.

Customer & Market Info – training time also given to customer info Customer & Market Info – training time also given to customer info. & general background on the mkt for the good & services produced by the firm. Allows SP to learn how to offer innovative solutions to customers. Company Orientation – SP are boundary spanner between co & its customers. SP must be well versed in co’s history, org, & policy plus build core workplace competencies & understand corporate citizenship. Other Topics – SP will need to idenify customers on the internet. Time & territory mgt, handling price objections, legal & ethical issues.

Where To Train Centralised vs Decentralised training – CT – all SP are brought to one central location. Adv. Quality (specialists trainer, custom designed material) & consistency of training is enhanced. Communication & coordination is enhanced. Disadv. Very costly & time consuming. Some use broadcasting now. DT – done in field or regional sales offices. Learning process closer to customers. Reduces traveling cost. Sales mgrs are busy & may be able to take time out to train.

Better to use a combination of the two approaches. Field Training – (on the job training –OJT) most widely used. Idea is that every time SP calls customers they should learn from the experience. Quality of training may differ some people are better trainers than others.

Training Media Role playing – quite effective to reinforce lectures. SP may be too stressed in the role play & may not focus too much on learning. CD-ROMs & audiotapes – portable & easily stored. CD can be interactive. Internet – cost of e-learning is high

Who Should Train Staff specialists Outside specialists Line executives (sales mgrs) (discuss advantages & disadvantages of using each of the above).

Evaluating Sales Training Very costly hence, very important to see if training is paying off. Training mgrs have relied on instinct to determine if training was successful Appraisal of trainees after training Sales & profits measures Mgrs must follow up

Additional Sales Training Issues SP development involves helping people develop goals, habits beyond those necessary for the present jobs. Sales mgrs should: Help SP gain a realistic understanding of the process & chances of getting promoted Give people opportunity Let veteran SP know they are successful Be alert for SP with skills & desire for mgt or other advancements.