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16-1. Planning, Staffing, and Training Successful Salespeople Chapter 16 Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin.

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Presentation on theme: "16-1. Planning, Staffing, and Training Successful Salespeople Chapter 16 Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin."— Presentation transcript:

1 16-1

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

3 Chapter 16 16-3

4 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? Chapter 16 16-4

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

6 16-6 The Tree of Business Life: Management The Golden Rule 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 I T C Ethical Service Builds T r u e Relationships T TT TTTT TTTT

7 16-7 Joy in work Harmony in relationships Patience with people Kind to people Morally ethical Faithful to your word Fairness in relationships Caring for people Self-control in emotions Sales Leader Personal Characteristics Needed for Managing Today’s Salespeople

8 16-8 Transition From Salesperson to Sales Manager  What changes occur?  Perspectives change  Goals change  Responsibilities change  Satisfaction changes  Job skill requirements change  Relationships change

9 16-9 Transition From Salesperson to Sales Manager, cont…  The experience of being promoted  Seven phases that new managers go through: 1.Immobilization 1.The person feels overwhelmed 2.Minimizing or denial of change 1.Allows time to regroup and fully comprehend the change 3.Depression 1.Awareness of the magnitude of the changes that must be made: habit’s, customs and relationships 4.Acceptance of reality 1.Feelings of optimism return and let’s go of the past 2.Let’s go of how they operated as a “line employee” to a “Manager”; It’s no longer “I” but “Us”; “They” is now “you” 5.Testing 1.A time of trying out new behaviors and ways of coping with the new situation 6.Searching for meanings 1.A shift of concern to try to understand how and why things are different now 7.Internalization 1.The final phase the person incorporates the new meanings into his/her behavior

10 16-10 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  Be willing to learn, change, adapt and seek help (you go become a know-it-all because you have the title)  Realistic expectations  You will face situations that are unfamiliar  Learning new job responsibilities  It is a lot of hard work, listening – to gain loyalty and support of direct supports  Need to make the initial adjustments  Remember – new managers have just made the change not the subordinates – New managers need to make the initial adjustments

11 16-11 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

12 16-12 Exhibit 16-2: The District Sales Manager Links Salespeople to the Company

13 16-13 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

14 16-14 Current Base Salary’s Per Salary.Com Data as of April 2006: Sales Representative in the US 25th%ile $44,196 - Median $51,474 -75th%ile $61,814 Sales Manager 25th%ile $86,614 - Median $96,089 - 75th%ile $114,781 Director of Sales and Marketing 25th%ile $114,235 - Median $127,854 - 75th%ile $143,718 Chief Sales Executive 25th%ile $161,378 - Median $202,092 - 75th%ile $260,428

15 16-15 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

16 16-16 Sales Management Functions  Planning  Staffing  Training  Directing  Evaluating

17 16-17 Exhibit 16-3: The Basic Sales Management Functions

18 16-18 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

19 16-19 Exhibit 16-5: Typical Operating Costs for the Sales Force

20 16-20 Exhibit 16-6: Multiple Factors Determine the Design of the Sales Force

21 16-21 Exhibit 16-7: Activities Involved in Managing the Human Resources of a Sales Force

22 16-22 Staffing: Having the Right People to Sell  Staffing  First Element – People Planning  Sales force size  Type of people  Job analysis  Job descriptions  Job specifications

23 16-23 Staffing: Having the Right People to Sell, cont…  Job specifications for successful salespeople  Education  Personality  Experience  Physical attributes

24 16-24 Exhibit 16-8: Selected Characteristics of Successful Salespeople―Which are Most Important?

25 16-25 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

26 16-26 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

27 16-27 Exhibit 16-10: Major Steps in Sales Personnel Selection Process Not all companies take every step

28 16-28 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

29 16-29  Interview follow-up  The second interview  Job offers  No job offer Staffing: Having the Right People to Sell, cont…

30 16-30 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

31 16-31 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

32 16-32 Exhibit 16-13: Basic Sources of Sales Training

33 16-33 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

34 16-34 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


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