Planning, Staffing, and Training Successful Salespeople 16 Chapter Planning, Staffing, and Training Successful Salespeople McGraw-Hill/Irwin Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved.

16 16-3 Chapter

16 Main Topics Chapter The Tree of Business Life: Management 16-4 Chapter Main Topics The Tree of Business Life: Management Transition from Salesperson to Sales Manager Technology Is Needed in the Job Being a First-Line Sales Manager Is a Challenging Job What Is the Salary for Management?

16 Main Topics Chapter Overview of the Job Sales Management Functions 16-5 Chapter Main Topics Overview of the Job Sales Management Functions Sales Force Planning Staffing: Having the Right People to Sell Training the Sales Force

The Tree of Business Life: Management Guided by The Golden Rule: Recognize that the characteristics needed to be a sales manager are the same as those needed to be a salesperson Remember that just as there is a Golden Rule of sales, there is also a Golden Rule of sales management As a sales manager, treat others as you would like to be treated T T Ethical Service T T T T T T T T Builds T r u e Relationships T C I

Personal Characteristics Needed for Managing Today’s Salespeople Joy in work Caring for people Harmony in relationships Self-control in emotions Patience with people Sales Leader Fairness in relationships Kind to people Faithful to your word Morally ethical

Transition From Salesperson to Sales Manager What changes occur? Perspectives change Goals change Responsibilities change Satisfaction changes Job skill requirements change Relationships change

Transition From Salesperson to Sales Manager, cont… The experience of being promoted Seven phases Immobilization Minimizing or denial of change Depression Acceptance of reality Testing Searching for meanings Internalization

Transition From Salesperson to Sales Manager, cont… Problems experienced by new managers Lack of preparation for the job The key to making a successful transition Learning attitude Realistic expectations Learning new job responsibilities Need to make the initial adjustments

Technology Is Needed in the Job You need technology to be an effective manager in the 21st century The computer is a powerful leadership tool

Being a First-Line Manager Is a Challenging Job District sales manager is link between the salespeople and the manager’s immediate boss A manager must be effective in managing salespeople and influencing the boss

Exhibit 16-2: The District Sales Manager Links Salespeople to the Company

What Is the Salary for Management? Salary is usually related to: Annual sales volume of units managed Number of salespeople supervised Length of experience in sales Annual sales volume of the firm Salary is just one part of compensation The higher the sales position, the greater the benefits offered

Overview of the Job A sales manager’s main goal is to achieve the levels of sales, volume, profits, and sales growth desired by higher levels of management The factor underlying success in achieving the goal is the ability to influence the behavior of all parties involved

Sales Management Functions Planning Staffing Training Directing Evaluating

Exhibit 16-3: The Basic Sales Management Functions

Sales Force Planning Sales forecasting – uses of sales forecasts The sales manager’s budget – methods of developing sales force budgets Organizing the sales force Organizational design Organizational structure

Exhibit 16-5: Operating Costs for the Sales Force

Exhibit 16-6: Multiple Factors Determine the Design of the Sales Force

Exhibit 16-7: Activities Involved in Managing the Human Resources of a Sales Force

Staffing: Having the Right People to Sell First Element – People Planning Sales force size Type of people Job analysis Job descriptions Job specifications

Staffing: Having the Right People to Sell, cont… Job specifications for successful salespeople Education Personality Experience Physical attributes

Exhibit 16-8: Selected Characteristics of Successful Salespeople―Which are Most Important?

Staffing: Having the Right People to Sell, cont… Second Element – Employment planning Legal framework for employment Equal Employment Opportunity Commission (EEOC) Americans with Disabilities Act (ADA) Diversity of the sales force Diversity of buyers The multicultural sales organization

Exhibit 16-9: The Sales Force is Becoming Diverse

Staffing: Having the Right People to Sell, cont… Recruitment – finding the right people Selection – choose the best available! Application Initial interview In-depth interviews Testing Reference checks Physical examination

Exhibit 16-10: Major Steps in Sales Personnel Selection Process Not all companies take every step

Staffing: Having the Right People to Sell, cont… A sales manager’s view of the recruit Is sales the right job for the applicant? What recruiters look for The application letter The resume The interview Applicant: create a performance portfolio

Staffing: Having the Right People to Sell, cont… Interview follow-up The second interview Job offers No job offer

Training the Sales Force Sales training Purposes of training Training methods: Discussion Role playing On-the-job training Where does training take place? Centralized training programs Decentralized training

Training the Sales Force, cont… When does training occur? Who is involved in training? Corporate staff trainers Sales force personnel Outside training specialists Combination of training sources

Exhibit 16-13: Basic Sources of Sales Training

Summary of Major Selling Issues A salesperson who is promoted to sales manager becomes involved in sales planning, staffing, training, directing, and evaluating sales force activities Today, firms structure their organizations to best serve their customers Sales managers are frequently involved in forecasting their firm’s sales

Summary of Major Selling Issues, cont… The contemporary sales manager is knowledgeable in personnel practices involving the recruiting and hiring of salespeople Government laws need to be considered Once hiring is done, the sales manager becomes involved in training salespeople The sales manager is a salesperson first but is also something of a jack-of-all trades