1. 1 Copyright © 2000 by Harcourt, Inc. All rights reserved. (1) 7 Continual Development of the Salesforce: Sales Training Module 7 Continual Development of the Salesforce: Sales Training

2. 1 Copyright © 2000 by Harcourt, Inc. All rights reserved. (2) 7 Sales Training As a Crucial Investment General Need for Sales Training –Due in part to: Inadequacies of current training programs New salespeople join the salesforce –Need is continual

3. 1 Copyright © 2000 by Harcourt, Inc. All rights reserved. (3) 7 Sales Training As a Crucial Investment General Need for Sales Training Company Size and Sales Training –Larger firms have a tendency to have formalized sales training programs Smaller firms may try to hire salespeople away from the larger firms Product/Service Complexity and Sales Training –Service organizations are developing sales training programs

4. 1 Copyright © 2000 by Harcourt, Inc. All rights reserved. (4) 7 Sales Training As a Crucial Investment General Need for Sales Training Company Size and Sales Training Level of Competitiveness and Sales Training –Highly competitive markets require better trained salespeople

5. 1 Copyright © 2000 by Harcourt, Inc. All rights reserved. (5) 7 Time and Money Investments in Sales Training Time and Money Investments in Sales Training (Exhibit 7.1) Training Period for New Hires Cost per Ongoing Training Cost per (Months) Salesperson (Hours per Year) Salesperson Company Size Under $5 million 4.4 $5,500 30.1 $3,752 $5-$24.9 million 4.2 $8,141 36.1 $3,947 $25-$99.9 million 3.7 $8,091 37.0 $3,904 $100-$249.9 million 1.7 $7,400 25.2 $5,365 Over $250 million 3.6 $7,000 38.0 $4,824 Training Period for New Hires Cost per Ongoing Training Cost per (Months) Salesperson (Hours per Year) Salesperson Type of Sales Consumer Products 3.4 $5,354 35.8 $4,039 Consumer Services 4.2 $4,537 33.9 $3,623 Industrial Products 4.8 $9,894 31.6 $5,149 Industrial Services 4.8 $9,061 30.8 $4,867 Office Products 3.8 $6,269 41.8 $4,261 Office Services 3.2 $6,200 33.3 $3,470

6. 1 Copyright © 2000 by Harcourt, Inc. All rights reserved. (6) 7 (Figure 6.1) A Proposed Model of Salesforce Socialization Realism Job Satisfaction Initiation to Task Job Involvement/ Commitment Congruence Resolution of Conflicting Demands at Work PerformanceRole Definition Task Specific Self -Esteem Recruiting/Selection Objectives Training Objectives Salesperson Outcomes Job Outcomes

7. 1 Copyright © 2000 by Harcourt, Inc. All rights reserved. (7) 7 (Figure 6.1) A Proposed Model of Salesforce Socialization Realism Job Satisfaction Job Involvement/ Commitment Congruence Resolution of Conflicting Demands at Work PerformanceRole Definition Task Specific Self -Esteem Recruiting/Selection Objectives Training Objectives Salesperson Outcomes Job Outcomes Initiation to Task - the degree to which a sales trainee feels competent and accepted as a working partner

8. 1 Copyright © 2000 by Harcourt, Inc. All rights reserved. (8) 7 Initiation to Task (Figure 6.1) A Proposed Model of Salesforce Socialization Realism Job Satisfaction Job Involvement/ Commitment Congruence Resolution of Conflicting Demands at Work PerformanceRole Definition Task Specific Self -Esteem Recruiting/Selection Objectives Training Objectives Salesperson Outcomes Job Outcomes Role Definition - an understanding of tasks to be performed, their priorities, and how time should be allocated

9. 1 Copyright © 2000 by Harcourt, Inc. All rights reserved. (9) 7 Managing the Sales Training Process Managing the Sales Training Process (Figure 7.1) Assess Sales Training Needs

10. 1 Copyright © 2000 by Harcourt, Inc. All rights reserved. (10) 7 Managing the Sales Training Process Managing the Sales Training Process Needs Assessment Compares the specific performance-related skills, attitudes, perceptions, and behaviors required for success to salesforce readiness Why is it better to be proactive than reactive in doing a needs assessment?

11. 1 Copyright © 2000 by Harcourt, Inc. All rights reserved. (11) 7 Managing the Sales Training Process Managing the Sales Training Process Methods of Needs Assessment Salesforce Audit –"a systematic, diagnostic, prescriptive tool which can be employed on a periodic basis to identify and address sales department problems and to prevent or reduce the impact of future problems" –Is the training program adequate in light of objectives and resources? –Does the training program need revision? –Is there an ongoing training program for senior salespeople? –Does the training program contribute in a positive manner to the socialization of sales trainees?

12. 1 Copyright © 2000 by Harcourt, Inc. All rights reserved. (12) 7 Managing the Sales Training Process Managing the Sales Training Process Methods of Needs Assessment Salesforce Audit Performance Testing –Specifies the evaluation of particular tasks or skills of the salesforce

13. 1 Copyright © 2000 by Harcourt, Inc. All rights reserved. (13) 7 Managing the Sales Training Process Managing the Sales Training Process Methods of Needs Assessment Observation Sales Force Surveys Customer Survey Job Analysis Salesforce Audit Performance Testing

14. 1 Copyright © 2000 by Harcourt, Inc. All rights reserved. (14) 7 Managing the Sales Training Process Managing the Sales Training Process Typical Sales Training Needs Sales Techniques - "how to sell" –Common mistakes identified by research can be prevented by proper training

15. 1 Copyright © 2000 by Harcourt, Inc. All rights reserved. (15) 7 Managing the Sales Training Process Managing the Sales Training Process Typical Sales Training Needs Sales Techniques Product Knowledge –Benefits, applications, competitive strengths, and limitations of the product

16. 1 Copyright © 2000 by Harcourt, Inc. All rights reserved. (16) 7 Managing the Sales Training Process Managing the Sales Training Process Typical Sales Training Needs Sales Techniques Product Knowledge Customer Knowledge (Ex. 7.2- Sales Training for Different Types of Buyers)

17. 1 Copyright © 2000 by Harcourt, Inc. All rights reserved. (17) 7 Managing the Sales Training Process Managing the Sales Training Process Typical Sales Training Needs Competitive Knowledge Time and Territory Management (TTM) –Why is TTM more important in declining, stagnant, or highly competitive industries? Sales Techniques Product Knowledge Customer Knowledge

18. 1 Copyright © 2000 by Harcourt, Inc. All rights reserved. (18) 7 Managing the Sales Training Process Managing the Sales Training Process (Figure 7.1) Assess Sales Training Needs Set Training Objectives

19. 1 Copyright © 2000 by Harcourt, Inc. All rights reserved. (19) 7 Managing the Sales Training Process Managing the Sales Training Process Set Training Objectives Increase sales or profits. Create positive attitudes and improve morale. Assist in salesforce socialization. Reduce role conflict and role ambiguity. Introduce new products, markets, and promotional programs. Provide sales support tool training. General training objectives include: Develop sales people for future management positions. Ensure awareness of ethical and legal responsibilities. Teach administrative procedures. Minimize salesforce turnover. Improve teamwork and cooperative efforts.

20. 1 Copyright © 2000 by Harcourt, Inc. All rights reserved. (20) 7 Managing the Sales Training Process Managing the Sales Training Process (Figure 7.1) Assess Sales Training Needs Set Training Objectives Evaluate Training Alterna- tives

21. 1 Copyright © 2000 by Harcourt, Inc. All rights reserved. (21) 7 Managing the Sales Training Process Managing the Sales Training Process Evaluate Training Alternatives Selecting Sales Trainers –Companies generally rely on their own personnel. –Large companies use a sales trainer, while small companies rely on the sales manager.

22. 1 Copyright © 2000 by Harcourt, Inc. All rights reserved. (22) 7 Selecting Sales Trainers Evaluating Sales Training Locations –The majority of training is conducted in the organization’s home, regional, or field sales offices. –Central training facilities. –Video broadcasting and teleconferencing. Managing the Sales Training Process Managing the Sales Training Process Evaluate Training Alternatives

23. 1 Copyright © 2000 by Harcourt, Inc. All rights reserved. (23) 7 Selecting Sales Trainers Evaluating Sales Training Locations Selecting Sales Training Methods –Classroom/Conference Training –On-the-Job Training (OJT) Mentor Job Rotation –Behavioral Simulations Computer Simulations Role Playing –Absorption Training Audiocassettes for use while driving Managing the Sales Training Process Managing the Sales Training Process Evaluate Training Alternatives

24. 1 Copyright © 2000 by Harcourt, Inc. All rights reserved. (24) 7 Selecting Sales Trainers Evaluating Sales Training Locations Selecting Sales Training Methods Selecting Sales Training Media –Communications and Computer Technology Sales Pro Online, Inc. Managing the Sales Training Process Managing the Sales Training Process Evaluate Training Alternatives

25. 1 Copyright © 2000 by Harcourt, Inc. All rights reserved. (25) 7 Managing the Sales Training Process Managing the Sales Training Process (Figure 7.1) Assess Sales Training Needs Set Training Objectives Evaluate Training Alterna- tives Design Sales Training Program Perform Sales Training Conduct Follow-up and Evaluation

26. 1 Copyright © 2000 by Harcourt, Inc. All rights reserved. (26) 7 Ethical and Legal Issues Should be Included in Training Ethical and Legal Issues Should be Included in Training (Exhibits 7.6, 7.7)