17 Selling Today Management of the Sales Force CHAPTER 10th Edition Manning and Reece 17 Management of the Sales Force

Learning Objectives Describe the functions of a sales manager List and discuss the qualities of an effective sales manager Discuss recruitment and selection of salespeople Describe effective orientation, training, and motivation practices Develop an understanding of selected compensation plans List and discuss criteria for evaluating sales performance

Leadership The process of inspiring, influencing, and guiding employees to participate in a common effort Involves a series of skills that can be acquired through study and practice People who rise to the position of sales manager must understand the difference between leadership and management

Sales Management The process of planning, implementing, and controlling the personal selling function The sales manager plans, recruits, trains, budgets, develops compensation plans, and assesses sales force productivity Successful supervisory management personnel have certain behaviors in common

Lindsay Levin, Chairman of Whites Limited Effective Leaders Demonstrate the following: Structure Consideration Situational leadership Test of character Coaching for peak performance Samuel Palmisano, CEO of IBM Lindsay Levin, Chairman of Whites Limited

Basic Leadership Styles FIGURE 17.1

Structure Evidence includes: Regular planning Expectations clearly communicated Prompt, firm decisions Regular performance appraisals

Consideration Evidence includes: Regular and effective communication Each salesperson treated as individual Reward good performance often

Situational Leadership Leader’s style should match situation Develop strong ethics and character For more on Situational Leadership, see: 12manage.com

Peak Performance Coaching Help salespeople recognize need to improve Help develop their commitment to improve Document problems and explore solutions

Recruitment and Selection Determine job requirements Search for applicants Select best-qualified applicant

Determine Job Requirements New or established territory New or well-established product Work independently or closely with manager Likelihood of travel, transfer, promotion

Searching for Applicants Within company Colleges and universities Trade and consumer advertising Employment agencies/listings Internet services/searches

Cydcor: An Outsourced Sales Force

Cydcor Case Studies See the Website

Selecting Applicants Selection criteria: Interest, enthusiasm, high motivation Integrity Knowledge of business, market, consumers Customer orientation/relationships Psychological tests (used in conjunction)

Interview Application What would you tell an interviewer about . . . Yourself? Your knowledge of the sales process? Greatest strengths and weaknesses? Most boring job/how you handled it? What was your biggest contribution at your last job? Why should he/she hire you? See Selling in Action

Orientation and Training Provide thorough orientation before person begins work Initiate training program to help person achieve success . . .tasks, execution, role Size of firm should not dictate scope of training

Selling Power See their hiring/training products at: sellingpower.com

Dimensions of Formal Training Program Knowledge of product line, territory, business trends, firm’s marketing strategy Attitudes toward the company, products, customers Skills: applying selling principles and practices

Sales Force Motivation Internal motivation Intrinsic rewards: achievement, challenge, advancement, growth, enjoyment of work Often have long-term positive impacts

Sales Force Motivation External motivation Actions taken by firm to reward sales performance Sales contests, incentive plans, cash bonuses

Effective External Rewards Design programs that focus on several important aspects of the salesperson’s job Evaluate incentive programs often Avoid unrealistic goals

Compensation Plans Compensation practices vary Usually combination of: Direct compensation: salary and commissions Indirect compensation: pension, insurance plans, vacations

Icelandic’s Incentive

Five Compensation Plans Straight commission Commission plan with guaranteed salary or draw provision Commissions with draw or salary plus bonus Fixed salary plus bonus Straight salary

Discussion Questions What are the pros and cons of commission-based compensation? What are the pros and cons of salary-based compensation?

Award/Incentive Plan Bases Specific product movement Percentage sales increase New accounts established Increased activity

Compensation Plan Guidelines Define marketing objectives—plan complements objectives Field test compensation plan Explain plan to sales staff Change plan as conditions warrant

Assessing Productivity: Quantitative Criteria Sales volume in dollars Sales compared with last year Volume by product or line Number of new accounts Amount of new account sales Net profit on each account Number of customer calls made

Assessing Productivity: Qualitative Criteria Attitude Product knowledge Communication skills Personal experience Customer goodwill generated Selling skills Initiative Team collaboration