1. 17 Selling Today Management of the Sales Force CHAPTER 10th Edition
Manning and Reece 17
Management of the Sales Force

2. 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

3. 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

4. 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

5. 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

6. Basic Leadership Styles
FIGURE
17.1

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

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

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

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

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

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

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

14. Cydcor: An Outsourced Sales Force

15. Cydcor Case Studies
See the Website

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

17. 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

18. 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

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

20. 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

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

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

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

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

25. Icelandic’s Incentive

26. 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

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

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

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

30. 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

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