Download kotler17exs-Managing the Sales Force

Chapter 17
Managing the
Sales Force
PowerPoint by Karen E. James
Louisiana State University - Shreveport
©2003 Prentice Hall, Inc.
To accompany A Framework for Marketing Management, 2nd Edition
Slide 0 in Chapter 17
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.
©2003 Prentice Hall, Inc.
To accompany A Framework for Marketing Management, 2nd Edition
Slide 1 in Chapter 17
Designing the Sales Force
Types of Sales Representatives
 Deliverer
 Technician
 Order taker
 Demand creator
 Missionary
 Solution vendor
©2003 Prentice Hall, Inc.
To accompany A Framework for Marketing Management, 2nd Edition
Slide 2 in Chapter 17
Designing the Sales Force
Steps in Process
 Objectives and
strategy
 Objectives
– Sales volume and
profitability
– Customer
satisfaction
 Structure
 Strategy
 Sales force size
 Type of sales force
 Compensation
©2003 Prentice Hall, Inc.
– Account manager
– Direct (company) or
contractual
To accompany A Framework for Marketing Management, 2nd Edition
Slide 3 in Chapter 17
Designing the Sales Force
Steps in Process
 Objectives and
strategy
 Structure
 Sales force size
 Compensation
©2003 Prentice Hall, Inc.
 Types of sales
force structures:
– Territorial
– Product
– Market
– Complex
 Key accounts
To accompany A Framework for Marketing Management, 2nd Edition
Slide 4 in Chapter 17
Designing the Sales Force
Steps in Process
 Objectives and
strategy
 Structure
 Sales force size
 Compensation
©2003 Prentice Hall, Inc.
 Workload approach:
– Group customers by
volume
– Establish call
frequencies
– Calculate total yearly
sales call workload
– Calculate average
number of calls/year
– Calculate number of
sales representatives
To accompany A Framework for Marketing Management, 2nd Edition
Slide 5 in Chapter 17
Designing the Sales Force
Steps in Process
 Objectives and
strategy
 Structure
 Sales force size
 Compensation
©2003 Prentice Hall, Inc.
 Four components of
compensation:
–
–
–
–
Fixed amount
Variable amount
Expense allowances
Benefits
 Compensation plans
– Straight salary
– Straight commission
– Combination
To accompany A Framework for Marketing Management, 2nd Edition
Slide 6 in Chapter 17
Managing the Sales Force
Steps in Sales Force Management
 Recruitment
and selection
 Training
©2003 Prentice Hall, Inc.
 Supervising
 Motivating
 Evaluating
To accompany A Framework for Marketing Management, 2nd Edition
Slide 7 in Chapter 17
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
©2003 Prentice Hall, Inc.
To accompany A Framework for Marketing Management, 2nd Edition
Slide 8 in Chapter 17
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
©2003 Prentice Hall, Inc.
To accompany A Framework for Marketing Management, 2nd Edition
Slide 9 in Chapter 17
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
©2003 Prentice Hall, Inc.
To accompany A Framework for Marketing Management, 2nd Edition
Slide 10 in Chapter 17
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
©2003 Prentice Hall, Inc.
To accompany A Framework for Marketing Management, 2nd Edition
Slide 11 in Chapter 17
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
 Performance
comparisons
 Knowledge assessments
©2003 Prentice Hall, Inc.
To accompany A Framework for Marketing Management, 2nd Edition
Slide 12 in Chapter 17
Personal Selling Principles
Major Aspects
 Sales
professionalism
 Negotiation
 Relationship
marketing
©2003 Prentice Hall, Inc.
 Sales-oriented
approach
– Stresses high
pressure techniques
 Customer-oriented
approach
– Stresses customer
problem solving
 Steps in industrial
selling process
To accompany A Framework for Marketing Management, 2nd Edition
Slide 13 in Chapter 17
Personal Selling Principles
Steps in Industrial Selling Process
 Prospecting and
qualifying
 Overcoming
objections
 Preapproach
 Closing
 Approach
 Follow-up and
maintenance
(servicing)
 Presentation and
demonstration
©2003 Prentice Hall, Inc.
To accompany A Framework for Marketing Management, 2nd Edition
Slide 14 in Chapter 17
Personal Selling Principles
Major Aspects
 Reps need skills for
effective negotiation
 Sales
professionalism
 Negotiation is useful
when certain factors
characterize the sale
 Negotiation
 Negotiation strategy
 Relationship
marketing
©2003 Prentice Hall, Inc.
– Principled
– BATNA
To accompany A Framework for Marketing Management, 2nd Edition
Slide 15 in Chapter 17
Personal Selling Principles
Major Aspects
 Sales
professionalism
 Negotiation
 Relationship
marketing
©2003 Prentice Hall, Inc.
 Building long-term
suppler-customer
relationships has
grown in importance
 Companies are
shifting focus away
from transaction
marketing to
relationship
marketing
To accompany A Framework for Marketing Management, 2nd Edition
Slide 16 in Chapter 17