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Chapter 17

Managing the 
Sales Force
Objectives

 Review the types of decisions firms


face in designing a sales force.
 Learn how companies recruit, select,
train, supervise, motivate, and evaluate
a sales force.
 Understand how salespeople improve
their selling, negotiation, and
relationship-building skills.
Designing the Sales Force

Types of Sales Representatives

 Deliverer  Technician
 Order taker  Demand creator
 Missionary  Solution vendor
Designing the Sales Force

Steps in Process  Objectives


– Sales volume and
profitability
 Objectives and – Customer
strategy satisfaction
 Strategy
 Structure
– Account manager
 Sales force size  Type of sales force
 Compensation – Direct (company) or
contractual
Designing the Sales Force

Steps in Process  Types of sales


force structures:
 Objectives and – Territorial
strategy – Product
 Structure – Market
 Sales force size – Complex

 Compensation  Key accounts


Designing the Sales Force

Steps in Process  Workload approach:


– Group customers by
volume
 Objectives and – Establish call
strategy frequencies
– Calculate total yearly
 Structure sales call workload
 Sales force size – Calculate average
number of calls/year
 Compensation – Calculate number of
sales representatives
Designing the Sales Force

Steps in Process  Four components of


compensation:
– Fixed amount
 Objectives and – Variable amount
strategy – Expense allowances
 Structure – Benefits
 Compensation plans
 Sales force size
– Straight salary
 Compensation – Straight commission
– Combination
Managing the Sales Force

Steps in Sales Force Management


 Recruitment  Supervising
and selection  Motivating
 Training
 Evaluating
Managing the Sales Force

 Recruiting begins with the


development of selection criteria
– Customer desired traits
– Traits common to successful sales
representatives
 Selection criteria are publicized
 Various selection procedures are
used to evaluate candidates
Managing the Sales Force

 Training topics include:


– Company background, products
– Customer characteristics
– Competitors’ products
– Sales presentation techniques
– Procedures and responsibilities
 Training time needed and training
method used vary with task complexity
Managing the Sales Force

 Successful firms have procedures to


aid in evaluating the sales force:
– Norms for customer calls
– Norms for prospect calls
– Using sales time efficiently
Tools include configurator software,
time-and-duty analysis, greater
emphasis on phone and Internet usage,
greater reliance on inside sales force
Managing the Sales Force

 Motivating the Sales Force


– Most valued rewards
Pay, promotion, personal growth, sense
of accomplishment
– Least valued rewards
Liking and respect, security, recognition
– Sales quotas as motivation tools
– Supplementary motivators
Managing the Sales Force

 Evaluating the Sales Force


– Sources of information
Sales or call reports, personal
observation, customer letters and
complaints, customer surveys, other
representatives
– Formal evaluation
Performancecomparisons
Knowledge assessments
Personal Selling Principles

 Sales-oriented
Major Aspects
approach
– Stresses high
 Sales pressure techniques
professionalism  Customer-oriented
approach
 Negotiation – Stresses customer
problem solving
 Relationship  Steps in industrial
marketing selling process
Personal Selling Principles

Steps in Industrial Selling Process


 Prospecting and  Overcoming
qualifying objections
 Preapproach  Closing
 Approach  Follow-up and
 Presentation and maintenance
demonstration (servicing)
Personal Selling Principles

Major Aspects  Reps need skills for


effective negotiation
 Negotiation is useful
 Sales
when certain factors
professionalism characterize the sale
 Negotiation  Negotiation strategy
 Relationship – Principled
marketing – BATNA
Personal Selling Principles

 Building long-term
Major Aspects
suppler-customer
relationships has
 Sales grown in importance
professionalism  Companies are
shifting focus away
 Negotiation from transaction
marketing to
 Relationship relationship
marketing marketing