Varag|rg lre 3a|es Force Varag|rg lre 3a|es Force Varag|rg lre 3a|es Force Varag|rg lre 3a|es

Force
Chapter 01 Chapter 01 Chapter 01 Chapter 01
Chapter 012
8a|es Representat|ve 8a|es Representat|ve
W .:rry d|st|ng:|shed s|x sa|es pos|t|ons
0e||verer : whose major task |s the de||very of prod:.t (m||k, f:e|, o||, bread}
0rder taker : who a.t predom|nant|y as an |ns|de order taker (the
sa|esperson stand|ng beh|nd the .o:nter} or o:ts|de order taker (the soap
sa|es person .a|||ng on the s:permarket manager}
|ss|onary : who |s expe.ted or perm|tted to take an order b:t whose major
task |s to b:||d goodw||| or to ed:.ate the a.t:a| or potent|a| :ser (the
med|.a| "deta||er" represent|ng an eth|.a| pharma.e:t|.a| .ompan|es}
Te.hn|.|an : w|th a h|gh |eve| of te.hn|.a| know|edge (the eng|neer|ng
sa|esperson who |s pr|mar||y a .ons:|tant to the .||ent .ompan|es}
0emand .reator : who re||es on .reat|ve methods for se|||ng tang|b|e
prod:.ts (va.::m .|eaners, refr|gerators, s|d|ng, en.y.|oped|as} or
|ntang|b|es (|ns:ran.e, advert|s|ng serv|.es, or ed:.at|on}
8o|:t|on vendor : whose expert|se |s |n the so|v|ng of a .:stomer's prob|em,
often w|th a system of the .ompany's prod:.ts and serv|.es (.omp:ter and
.omm:n|.at|on system}
0es|gn|ng The 8a|es For.e 0es|gn|ng The 8a|es For.e
Chapter 014
Designing the
sales force
Designing the
sales force
Sales force
objectives
Sales force
objectives
Sales force
strategy
Sales force
strategy
Sales force
structure
Sales force
structure
Sales force
size
Sales force
size
Sales force
compensation
Sales force
compensation
Figure Figure 20.1 20.1
Chapter 015
8a|es For.e 0bje.t|ves and 8trategy 8a|es For.e 0bje.t|ves and 8trategy
W ompan|es m:st def|ne the spe.|f|. obje.t|ves they expe.t the|r
sa|es for.e to a.h|eve
The o|d |dea : "se||, se||, and se||"
Later, the |dea : sho:|d know how to d|agnose a .:stomer's
prob|em and propose a so|:t|on
8a|espeop|e don't try sell a specific product initially
W They show a .:stomer-prospe.t how the|r .ompany .an
he|p the .:stomer |mprove |ts prof|tab|||ty
W They seek to jo|n the|r .ompany w|th the .:stomer's
.ompany as "partners for prof|t"
Chapter 016
8a|es For.e 0bje.t|ves and 8trategy 8a|es For.e 0bje.t|ves and 8trategy
W 8a|espeop|e w||| have one or more of the fo||ow|ng spe.|f|. tasks to perform :
Prospe.t|ng : 8ear.h|ng for prospe.ts, or |eads
Target|ng : 0e.|d|ng how to a||o.ate the|r t|me among prospe.t and
.:stomers
omm:n|.at|ng : omm:n|.at|ng |nformat|on abo:t the .ompany's
prod:.ts and serv|.es
8e|||ng : Approa.h|ng, present|ng, answer|ng obje.t|ons, and .|os|ng sa|es
8erv|.|ng : Prov|d|ng var|o:s serv|.es to the .:stomers-.ons:|t|ng on
prob|ems, render|ng te.hn|.a| ass|stan.e, arrang|ng f|nan.|ng, exped|t|ng
de||very
|nformat|on gather|ng : ond:.t|ng market resear.h and do|ng |nte|||gen.e
work
A||o.at|ons : 0e.|d|ng wh|.h .:stomers w||| get s.ar.e prod:.t d:r|ng
prod:.t shortages
Chapter 017
8a|es For.e 0bje.t|ves and 8trategy 8a|es For.e 0bje.t|ves and 8trategy
W ompan|es m:st dep|oy sa|es for.e starteg|.a||y
They .a|| on the r|ght .:stomers at the r|ght t|me and |n the r|ght way
W 8a|es representat|ves work w|th .:stomers |n severa| ways :
8a|es representat|ve to b:yer : d|s.:sses |ss:es w|th prospe.t or
.:stomer |n person or over the phone
8a|es representat|ve to b:yer gro:p : gets to know as many members of
the b:yer gro:p as poss|b|e
8a|es team to b:yer gro:p : a .ompany sa|es team works .|ose|y w|th the
members of the .:stomer's b:y|ng gro:p
onferen.e se|||ng : br|ngs .ompany reso:r.e peop|e to d|s.:ss a major
prob|em or opport:n|ty
8em|nar se|||ng : a .ompany team .ond:.ts an ed:.at|ona| sem|nar for
the .:stomer .ompany abo:t state-of-the-art deve|opment
Chapter 018
8a|es For.e 0bje.t|ves and 8trategy 8a|es For.e 0bje.t|ves and 8trategy
W Today's sa|es representat|ve a.t as " a..o:nt managers"
Arrange fr:|tf:| .onta.t between var|o:s peop|e |n the b:y|ng and se|||ng
organ|zat|ons
W To ma|nta|n a market fo.:s, sa|espeop|e sho:|d know how :
Ana|yze sa|es data
eas:re market potent|a|
Cather market |nte|||gen.e
0eve|op market|ng strateg|es and p|ans
W 8a|es for.es w||| be more effe.t|ve |n the |ong r:n |f they
:nderstand 2arketing as we|| as se|||ng
Chapter 019
8a|es For.e 8tr:.t:re 8a|es For.e 8tr:.t:re
W The sa|es for.e strategy has |mp||.at|ons for the sa|es
for.e str:.t:re
W |f the .ompany se||s one prod:.t ||ne to one end-:s|ng
|nd:stry w|th .:stomers |n many |o.at|ons
terr|tor|a| sa|es for.e str:.t:re
W |f the .ompany se|| many prod:.ts to many types of
.:stomers prod:.t or market sa|es for.e str:.t:re
Chapter 0110
8a|es For.e 8tr:.t:re 8a|es For.e 8tr:.t:re
W Terr|tor|a| :
Ea.h sa|es representat|ve |s ass|gned an ex.|:s|ve terr|tory
W |ear def|n|t|on respons|b|||t|es
W |n.rease |n.ent|ve to .:|t|vate |o.a| b:s|ness and
persona| t|es
W Trave| expenses are re|at|ve|y sma||
Chapter 0111
8a|es For.e 8tr:.t:re 8a|es For.e 8tr:.t:re
W Terr|tory s|ze
0es|gned to prov|de e|ther eq:a| sa|es potent|a| or eq:a|
work-|oad
W Eq:a| potent|a| prov|de :
The same income opportunities
Evaluate perIormance
Vary widely in size (because customer density varies)
W Eq:a| work-|oad :
Each sales rep can cover his or her territory adequately
Chapter 0112
8a|es For.e 8tr:.t:re 8a|es For.e 8tr:.t:re
W Terr|tory shape
Formed by .omb|n|ng sma||er :n|ts (.o:ntr|es , states}
0es|gn m:st take |nto
W A..o:nt the |o.at|on of nat:ra| barr|ers
W The .ompat|b|||ty of adja.ent areas
W The adeq:a.y of transportat|on
an |nf|:en.e
W The .ost and ease of .overage
W The sa|es rep's job sat|sfa.t|on
Chapter 0113
8a|es For.e 8tr:.t:re 8a|es For.e 8tr:.t:re
W Prod:.t
The |mportan.e of sa|es reps' know|ng the|r prod:.ts
Together w|th the deve|opment of prod:.t d|v|s|ons and
prod:.t management,
has |ed many .ompan|es to str:.t:re the|r sa|es for.es a|ong
prod:.t ||nes
Prod:.t spe.|a||zat|on |s part|.:|ar|y :sef:| for prod:.t ||nes
that are te.hn|.a||y .omp|ex, h|gh|y :nre|ated, or very
n:mero:s.
Chapter 0114
8a|es For.e 8tr:.t:re 8a|es For.e 8tr:.t:re
W arket
ompan|es often spe.|a||ze the|r sa|es for.es a|ong |nd:stry
or .:stomer ||nes.
W omp|ex
when a .ompany se||s a d|verse prod:.t ||ne to many types
of .:stomers over a broad geograph|.a| area
W |t often .omb|nes severa| str:.t:res, w|th sa|es for.es
spe.|a||zed by terr|tory-prod:.t, terr|tory-market, prod:.t-
market, and so on.
W A sa|es representat|ve m|ght then report to one or more
||ne and staff managers.
Chapter 0115
8a|es For.e 8|ze and ompensat|on 8a|es For.e 8|ze and ompensat|on
W The .ompany .|ar|f|es |ts strategy and str:.t:re = .ons|der sa|es for.e
s|ze
W The .ompany estab||shes the n:mber of .:stomers |t wants to rea.h =
orkload approach to estab||sh sa|es for.e s|ze
W Fo||ow|ng 5 steps :
1. Cro:p .:stomers |nto s|ze .|asses by ann:a| sa|es vo|:me
2. Estab||sh .a|| freq:en.|es, the n:mber of .a||s to be made per year on ea.h
a..o:nt |n a s|ze .|ass
3. :|t|p|y the n:mber of a..o:nts |n ea.h s|ze .|ass by the .a|| freq:en.y to
arr|ve at the tota| year|y sa|es .a|| work|oad;
4. 0eterm|ne the average n:mber of .a||s a sa|es rep .an make per year
5. 0|v|de the tota| ann:a| .a||s (.a|.:|ated |n step 3} req:|red by the average
ann:a| .a||s made by a rep (.a|.:|ated |n step 4} to see how many reps are
needed.
Chapter 0116
8a|es For.e 8|ze and ompensat|on 8a|es For.e 8|ze and ompensat|on
W The .ompany m:st next determ|ne the fo:r .omponents of
sa|es for.e .ompensat|on :
F|xed amo:nt
Var|ab|e amo:nt
Expense a||owan.es
enef|ts
W 70 7 tota| |n.ome sa|es reps |s f|xed and 30 7 other e|ements
W 3 bas|. types of f|xed and var|ab|e .ompensat|on p|ans :
8tra|ght sa|ary
8tra|ght .omm|ss|on
omb|nat|on sa|ary and .omm|ss|on.
W / :se e|ther and f|rms :se .omb|nat|on
Chapter 0117
8a|es For.e 8|ze and ompensat|on 8a|es For.e 8|ze and ompensat|on
W 8tra|ght-sa|ary p|ans :
Prov|de sa|es reps w|th a se.:re |n.ome
ake them more w||||ng to perform nonse|||ng a.t|v|t|es
C|ve them |ess |n.ent|ve to oversto.k .:stomers.
From the .ompany's perspe.t|ve they prov|de adm|n|strat|ve s|mp||.|ty
and |ower t:rnover
W 8tra|ght-.omm|ss|on p|ans :
Attra.t h|gher sa|es performers
Prov|de more mot|vat|on
Req:|re |ess s:perv|s|on
ontro| se|||ng .osts.
W omb|nat|on p|ans offer the benef|ts of both p|ans :
wh||e red:.|ng the|r d|sadvantages.
Chapter 0118
8a|es For.e 8|ze and ompensat|on 8a|es For.e 8|ze and ompensat|on
W The f|xed amo:nt : a sa|ary, |s |ntended to sat|sfy the sa|es
reps' need for |n.ome stab|||ty.
W The var|ab|e amo:nt : wh|.h m|ght be .omm|ss|ons, a bon:s
or prof|t shar|ng |s |ntended to st|m:|ate and reward greater
effort}
W Expense a||owan.es : enab|e sa|es reps to meet the
expenses |nvo|ved |n trave|, |odg|ng, d|n|ng, and enterta|n|ng
W enef|ts : s:.h as pa|d va.at|ons, s|.kness or a..|dent
benef|ts, pens|ons, and ||fe |ns:ran.e, are |ntended to
prov|de se.:r|ty and job sat|sfa.t|on.
anag|ng The 8a|es For.e anag|ng The 8a|es For.e
Chapter 0120
anaging the
sales force
anaging the
sales force
Recruiting and
selecting sales
representatives
Recruiting and
selecting sales
representatives
Training
Sales
representative
Training
Sales
representative
Figure Figure 20.2 20.2
Supervising
Sales
representative
Supervising
Sales
representative
otivating
Sales
representative
otivating
Sales
representative
Evaluating
Sales
representative
Evaluating
Sales
representative
Chapter 0121
Re.r:|t|ng and 8e|e.t|ng 8a|es Representat|ve Re.r:|t|ng and 8e|e.t|ng 8a|es Representat|ve
W A s:..essf:| sa|es for.e |s the se|e.t|on of effe.t|ve representat|ves
W 0ne s:rvey revea|ed that the top 27 per.ent of the sa|es for.e bro:ght |n over 52
per.ent of the sa|es
W ost .:stomers want honest, re||ab|e, know|edgeab|e, and he|pf:| reps
W har|es Carf|e|d .on.|:ded that s:per sa|es performers :
Exh|b|t r|sk tak|ng
Powerf:| sense of m|ss|on
Prob|em-so|v|ng bent
are for the .:stomer
aref:| p|ann|ng
W ayer and Creenberg noted that the effe.t|ve sa|esperson has :
Empathy
The ab|||ty to fee| as the .:stomer does
Ego dr|ve
8trong persona| need to make the sa|e.
Chapter 0122
Tra|n|ng 8a|es Representat|ve Tra|n|ng 8a|es Representat|ve
W Today's .:stomers expe.t sa|espeop|e :
to have deep prod:.t know|edge
offer |deas to |mprove .:stomer operat|ons
be eff|.|ent and re||ab|e
W ompan|es :se tra|n|ng to he|p sa|es reps :
Know and |dent|fy w|th the .ompany
Learn abo:t the .ompany's prod:.ts
Know .:stomers' and .ompet|tors' .hara.ter|st|.s
ake effe.t|ve sa|es presentat|ons
Understand sa|es pro.ed:res and respons|b|||t|es.
Chapter 0123
8:perv|s|ng 8a|es Representat|ve 8:perv|s|ng 8a|es Representat|ve
W 8a|es representat|ves need more than a terr|tory, a
.ompensat|on pa.kage proper s:perv|s|on
W 8:..essf:| f|rms have pro.ed:res to a|d |n eva|:at|ng
the sa|es for.e:
Norms for .:stomer .a||s
Norms for prospe.t .a||s
Us|ng sa|es t|me eff|.|ent|y
W Too|s |n.|:de .onf|g:rat|on software, t|me-and-d:ty
ana|ys|s, greater emphas|s on phone and |nternet :sage,
greater re||an.e on |ns|de sa|es for.e
Chapter 0124
8:perv|s|ng 8a|es Representat|ve 8:perv|s|ng 8a|es Representat|ve
W T|me-and-d:ty ana|ys|s
how spend yo:r t|me and how m|ght |n.rease yo:r prod:.t|v|ty
W |n genera|, sa|es reps spend t|me |n
Preparat|on (gett|ng |nformat|on and p|ann|ng .a|| strategy}
Trave| (50 per.ent of tota| t|me}
Food and breaks
wa|t|ng (to see b:yers}
8e|||ng (t|me spent w|th the b:yer}
Adm|n|strat|on (wr|t|ng reports, b||||ng, attend|ng sa|es meet|ngs and et.}
Chapter 0125
8:perv|s|ng 8a|es Representat|ve 8:perv|s|ng 8a|es Representat|ve
W 3 types to |n.reased the s|ze and respons|b|||t|es of the|r |ns|de
sa|es for.e :
Te.hn|.a| s:pport peop|e : prov|de te.hn|.a| |nformat|on and answers to
.:stomers' q:est|ons
8a|es ass|stants : prov|de .|er|.a| ba.k:p for the o:ts|de reps
W .onf|rm|ng appo|ntments
W .arry|ng o:t .red|t .he.ks
W fo||ow|ng :p on de||ver|es
W answer|ng .:stomers' q:est|ons
Te|emarketers : :se the phone
W f|nd new |eads
W q:a||fy and se|| to them
W rea.t|vate former a..o:nts
W g|ve more attent|on to neg|e.ted a..o:nts.
Chapter 0126
ot|vat|ng 8a|es Representat|ve ot|vat|ng 8a|es Representat|ve
W 8ome amb|t|o:s sa|es representat|ves are se|f-starters
W ost peop|e ,moreover, req:|re |n.ent|ves, s:.h as f|nan.|a| ga|n
or so.|a| re.ogn|t|on, to operate at f:|| .apa.|ty
Creater effort w||| |ead to greater performan.e
Creater performan.e w||| |ead to greater rewards
Creater rewards w||| |ead to greater sat|sfa.t|on
Creater sat|sfa.t|on w||| re|nfor.e mot|vat|on
W That sa|es managers m:st be ab|e to .onv|n.e sa|espeop|e that :
They .an se|| more by work|ng harder or by be|ng tra|ned to work smarter
The rewards for better performan.e are worth the extra effort
Chapter 0127
ot|vat|ng 8a|es Representat|ve ot|vat|ng 8a|es Representat|ve
W ost va|:ed rewards
Pay, promot|on, persona| growth, sense of a..omp||shment
W Least va|:ed rewards
L|k|ng and respe.t, se.:r|ty, re.ogn|t|on
W 8a|es q:otas as mot|vat|on too|s
W 8:pp|ementary mot|vators
Chapter 0128
Eva|:at|ng 8a|es Representat|ve Eva|:at|ng 8a|es Representat|ve
W The feed-forward aspe.ts of sa|es s:perv|s|on- how management
.omm:n|.ates what sa|es reps sho:|d be do|ng and mot|vates them to do |t
8o:r.e of |nformat|on
Forma| eva|:at|on
W 8o:r.es of |nformat|on
8a|es reports
Persona| observat|on
:stomer |etters and .omp|a|nts
:stomer s:rveys
onversat|ons w|th other sa|es representat|ves
any ompan|es req:|re the|r representat|ves to deve|op an ann:a|
terr|tory market|ng p|an
W Program for deve|op|ng new a..o:nts and |n.reas|ng b:s|ness from
ex|st|ng a..o:nts
W Th|s report .asts sa|es reps |nto the ro|e of market managers and
prof|t .enters
Chapter 0129
Eva|:at|ng 8a|es Representat|ve Eva|:at|ng 8a|es Representat|ve
W 8a|es reps wr|te :p .omp|eted a.t|v|t|es :
a|| reports
Expense reports
New-b:s|ness reports
Lost-b:s|ness reports
Reports on |o.a| b:s|ness and e.onom|. .ond|t|ons
W 8a|es managers .an extra.t key |nd|.ators of sa|es performan.e :
Average n:mber of sa|es .a||s per rep per day
Average sa|es .a|| t|me per .onta.t
Average reven:e per sa|es .a||
Average .ost per sa|es .a||
Enterta|nment .ost per sa|es .a||
Per.entage of orders per h:ndred sa|es .a||s
N:mber of new .:stomers per per|od
N:mber of |ost .:stomers per per|od
8a|es for.e .ost as a per.entage of tota| sa|es
Chapter 0130
Forma| eva|:at|on
W Performan.e .ompar|sons
W Know|edge assessments
Chapter 0131