sales force management.pptx
TRANSCRIPT
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Sales force management
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Objectives
• Demonstrate an understandingof ways in which a sales force ismanaged.
• Summarize and shareinformation with the class.
• Analyse a case
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Sales force Management
Sales force management involves:
• Strategic level - Designing the
sales force.• Oerational level ! Managing the
day to day activities of the
sales team.
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Designing theSalesforce
". Setting the sales objectives andstrategyo
Prospectingo Targeting
o Communicating
o Selling
o Servicing
o Information gathering
o Allocating
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Sales Strategy
Sales reresentatives wor# with customers inseveral ways:
Sales reresentative to buyer
Sales reresentative to buyer grou Sales team to buyer grou
$onference selling
Seminar selling ! educational seminar for
customers
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%mloyment tye
Direct sales force
&ull time or art time
'nside sales ersonnel or (eld sales ersonnel
$ontractual sales force )usually aid on commissionbasis*
manufacturer+s res
sales agents bro#ers
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Sales force structure
,erritorial - based on geograhy e.g. arish region
Advantages: shorter travel strong
relationshis eualization of wor# load
/roduct lines ! used where a variety of roducts Mar#et ! based on an industry
$omle0: wide variety of roducts many tyes ofcustomers broad geograhical area.
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Sales force size and comensation
,he 1or#load aroach to determining the size of the sales force sizeinvolves:
". 2rouing of customers according to annual sales volumes.
3. %stablishing for each class the desirable call freuencies
)no of calls on an account er year*
4. $alculating the total wor#load for the country in sales calls er year
5 no of accounts in each class 0 corresonding call
freuency
6. Determine average calls a sales reresentative can ma#e er
year.
7. 8o of sales res 5 total annual calls 9 average
annual calls er sales re.
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Four components of sales force compensation
&i0ed amount ! salary rovided for stability
ariable amount ! commissions bonus or ro(tsharing rovided to encourage or reward greatere;ort.
%0ense allowance ! rovided to cover e0ensese.g. travel accommodation dining
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$omensation lans
Straight salary: rovides secure income more
willing to erform non-selling activities less
incentive to overstoc# customers administrativelysimler.
Straight commission ! higher saleserformance more motivation less suervisioncontrol selling costs.
Combination - of both straight salary andcommission.
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Oerational Management of theSales force
=ecruiting and selecting
,raining
Suervising
Motivating
%valuating
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=ecruiting and Selecting Sta;
,he cost of recruitment is high.An e0erienced sales team is moreroductive
>ualities of an e;ective saleserson
• %mathy• Articulate• $on(dence• /assion9Drive
= iti d
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=ecruiting andselecting
,raining
Suervising
Motivating
%valuating
,raining
,raining is reuired to rovidesales reresentatives with thes#ills they reuire.
,raining rogrammes usuallyinclude the following:•
$omany #nowledge and ride• /roduct #nowledge? $ometitor and their roduct#nowledge? /resentation s#ills
? /olicies and administrative
= iti d
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=ecruiting andselecting
,raining
Suervising
Motivating
%valuating
Suervising of sales teamincludes:
• Assigning sales reresentatives• Setting norms or standards
such as: -@ow many calls to ma#e -1ho to call -@ow much time to send with
rosects• %stablishing targets• Develoing wor# lans• Monitoring sta; erformance
=ecruiting and
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=ecruiting andselecting
,raining
Suervising
Motivating
%valuating
Motivating sales sta; includes:
• Sales can be frustrating andtedious.
• @igher motivation leads to
higher e;ort higherroductivity and higherrewards.
• Sales managers have to
convince their sales team toma#e greater e;orts in order toget greater rewards.
• Strategies: bonus commission
rewards recognition
=ecruiting and
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=ecruiting andselecting
,raining
Suervising
Motivating
%valuating
%valuating the sales sta;
Sources of information• sales reorts• ersonal observation• customer letters• comlaints• customer surveys• conversations with other sales
reresentatives
Methods of evaluating• =eorting• /erformance analysis using sales
statistics• /erformance araisals against
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1hat is a case
A descrition of a scenario involvinga business. 't usually e0lain theactivities underta#en by the
organization and the level of successof these activities in relations to thedesired goals.
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1hat is case analysis
%0amining all the information relating tothe course and erforming the following:
- Summarizing and synthesizing the
information.
- Analysing the situation
- 'dentifying the roblem and evaluating
the otions
- =ecommending a solution
S i l i
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Stes in analysing acase
Situational analysis
'denti(cation of the roblem
Analysis of alternatives
Ma#ing recommendations and justifyingyour course of action