Download Forming Sales Teams for Multilevel Selling

© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
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CHAPTER 16
Managing Within Your Company
Some questions answered in this chapter are:
•
•
•
•
•
•
Which areas of the company work with salespeople to satisfy
customer needs?
How do salespeople coordinate the efforts of various functional
areas of the company?
How do salespeople work with sales managers and sales
executives?
How do company policies, such as compensation plans, influence
salespeople?
How do salespeople work within the company to resolve ethical
issues?
What is the organizational structure, and how does it influence
salesperson activities?
16-2
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
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“By building close internal
relationships with other sales
representatives within my company,
it not only benefits my sales, it also
benefits the customers.”
~Amy Boynton
Cardinal Health
16-3
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
McGraw-Hill/Irwin
Building Internal Partnerships
• The importance of internal
partnerships
– The ability to work with groups inside
the company can directly affect the
sales rep’s pocketbook
• The role of sales
– Salespeople also sell their customers’
needs to their companies
• Selling internally
– Salespeople must often rely on
personnel in other areas of the firm to
do their respective jobs properly
16-4
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
McGraw-Hill/Irwin
Seven Principles of Selling Internally
1.
2.
3.
4.
5.
6.
7.
Understand that it’s your problem.
Appeal to a higher objective.
Probe to find out and understand the personal
and professional needs of the internal customer.
Use arguments for support that adequately
address internal customers’ needs as well as
your own.
Do not spend time or energy resenting the
internal customers’ inability to accept or
understand your sense of urgency.
Never personalize any issues.
Be prepared to negotiate.
16-5
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Company Areas Important to Salespeople
• Manufacturing
– Concerned with low production cost
• Administration
– Processes orders and makes sure salespeople get paid
for them
• Shipping
– Need for expedited or special-handling deliveries
• Customer service
– Great source of information
• Marketing
– Responsible for generating leads
• Sales
16-6
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Partners in the Sales Organization
• Sales management
– The sales executive
•
•
•
•
Size and organization of the sales force
Forecasting
Expense budgets
Control and quota setting
16-7
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Partners in the Sales Organization
(continued)
– Types of quotas
• Sales quota
• Revenue quota
• Profit quotas/gross
margin quotas
• Activity quotas
16-8
Quota
Represents a
quantitative
minimum level of
acceptable
performance for a
specific period.
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
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Compensation and Evaluation
• Salary
– Regular payment regardless of performance
• Incentive pay
– Pay tied to some level of performance
• Commission
– Incentive pay for an individual sale
• Bonus
– Incentive pay for overall performance in one or
more areas
• Straight salary method
16-9
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Compensation and Evaluation
(continued)
• Straight commission
– Pays a certain amount per sale and includes a
base and a rate but not a salary
• Commission base
– The item from which commission is determined
• Draw
– Money paid to a salesperson against future
commissions
• Combination plans
– Provide salary and commission
16-10
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How Different Types of
Compensation Plans Pay
16-11
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An Example of a
Draw Compensation Plan
16-12
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Partners in the Sales Organization
(continued)
• Field sales managers
– Evaluating performance
– Training
– Behavioral Observation Scale:
16-13
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Managing Ethics in Sales
• Ethics and the sales
executive
– Open door policies
– Review boards
• Ethics and the field sales
manager
• Responding to unethical
requests
16-14
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Strategies for Handling Unethical
Requests from a Manager
• Leave the organization or ask for a
transfer.
• Negotiate an alternative course of action.
• Blow the whistle, internally or externally.
• Threaten to blow the whistle.
• Appeal to a higher authority.
• Agree to the demand but fail to carry it out.
• Refuse to comply with the request.
• Ignore the request.
16-15
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Salespeople as Partners
• Geographic salespeople
• Account salespeople
– Key accounts
– National account managers (NAMs)
– Strategic account managers (SAMs)
– House account
16-16
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SAMs in the Sales Force
16-17
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Salespeople as Partners (continued)
• Product specialists
– Salespeople specializing by types of
products
• Inside versus outside
– Field sales people
– Outside salespeople
– Field support rep
– Customer service rep
16-18
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Inside/Outside Sales Team
16-19
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Team Selling Organization
16-20
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
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Forming Sales Teams for
Multilevel Selling
16-21
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
McGraw-Hill/Irwin
Summary
• Successful salespeople manage resources and
build internal partnerships.
• Salespeople have a responsibility to carry the
voice of the customer to other areas of the
organization.
• Salespeople work with a sales executive and a
field sales manager.
• The four basic methods of compensation are:
straight salary, straight commission, bonus, and a
combination plan.
• Sales executives are responsible for creating a
culture that supports ethical activities.
• Partnerships must be built with the sales force,
too.
16-22
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.