Sales Management

Vinit Khandelwal

Recruitment and Selection Process

• Forecast People• Job Analysis• Job Description• Job Qualification• Recruitment• Communication

Definition

• Process– Formulation of Sales Strategy– Implementation– Sales Force Management

Recruitment and Selection Process

• Number• Job Description• Sources• Application form• Interviewing• Offer

Forecast People

• Plans• Current Strength• Promotions n Transfers• Quits n Retirements

Job Analysis

• Duties and Responsibilities• Activities• Behaviour

of Sales Person

Preparation of Job Description

• Product/Service Nature• Customer Type• Frequency to contact• Duties and Responsibilities• Reporting Pattern• Intellectual and Physical Demands• Location and area• Compensation

Job QualificationSkills needed to perform a particular job

Job Qualification for Sales Person (MAASHEEPI)– Memory– Alertness– Achievement Oriented– Self Confidence– Hard Working– Energy Level - High– Emotional Maturity– Perseverance– Intelligence

Recruitment

• Number– Need– Positions/(% Application Selected * % accepted)– Eg, 2 / (0.1 * 0.8) = 25

• By whom?• Sources– Inside– Recruitment Agencies– Competitors– Educational Institutes

Communication

• Press– National– Regional

• Trade Journals• Agencies• Radio• Educational Institutes/Universities

Application Form• Personal

– Name– Age– Address– Gender– Marital Status– Date of Birth

• Educational– School– Higher Education– Qualification– Specialized Training– Membership of Professional Bodies

• Employment History– Companies– Dates and Duration– Position & Responsibilities

• Interests and Other Activities– Sports– Hobies– Membership of Clubs

Interview

• Tests– Personality– Intelligence– Ability– Aptitude– Emotional Intelligence

• Interview– Probes– Silence– Neutral Questions

Types of Interviews

• Structured• Semi-Structured• Group• Panel• Stress• Field

Job Offer

• Formal Letter• Deadline acceptance• Salary Description• Additional Facilities Description• Training Schedule / Probation Period• Performance Review Timeline

Maslow’s Hierarchy of Needs

Herzberg’s Dual Factor Theory

Vroom’s Expectancy TheoryEffort• Increased call rate, longer working days

Performance• Increased Sales, increase in no of active accounts,

higher sales call ratio

Reward• Higher Pay, sense of accomplishment, respect,

promotion

Value of Reward

Expectancy

Instrumentality

Valence

Expectancy – Instrumentality - Valence

• Expectancy– A person’s Perceived relationship between Effort

and Performance• Instrumentality– A person’s Perceived relationship between

Performance and Reward• Valence– Value placed upon a reward by a person

A Salesperson can feel inequity

• Monetary rewards• Workload• Promotion• Degree of recognition• Supervisory behaviour• Targets• Tasks

Motivation

• Monetary Incentives• Quota• Meetings• Contests• Employee Promotion

Training

• Performance Improvement – Definite– Fast

• Increased Output per Employee• Reduced Recruitment and Selection Cost• Improved Customer Relationship

Definition (SACK)

The effort an employer puts forth to provide salespeople job-related

• Skills• Attitudes• Culture• Knowledge

that should result in improved performance in the selling environments

Why Train?

• Decreased Sales – Increase• Customer Relationship Enhancement• Reduce Cost• Morale Boosting• Time and Effort Efficiency• New Sales Personnel• Knowledge• Feedback

Training Program (PACTMANS)

• Aim Where to reach• Needs What is missing• Contents What to add• Method How• Trainer Who• Schedule When• Place Where• Aids Using what material

2. Training Needs

• Job Specifications• Trainees’ background and experience• Marketing Policies related to Sales• Continuing Training Needs Identification• Performance Measure• Sales Volume• Objectives of Organization• Observation of Skills

3. Training Content• Product Details

– Application– Drawbacks– Competitors– Substitutes

• Sales Techniques• Market Segments

– Demographical– Geographical– Psychological

• Company Details– History– Unions– Competitors– Image– Policies– Compensation

4. Methods (LCD COCRG)

1. Lecture2. Case Study3. Demonstration4. Conferences5. On the Job Training6. Correspondence Courses7. Role Playing8. Group Discussions

5. Trainer – Who?

• Top Sales Executive• Managers– Assistant Sales Manager– District Sales Manager

• Directors– Personnel Director– Sales Training Director

• Outside Experts

Evaluation

• Performance Against Standards• Before and After• Written Test• Rating on Role Playing• On the job observation

Key to Successful Selling

• Ask• Share Product Information• Compare• Show Evidence• Acknowledge Customer’s Viewpoint• Comfort Customer

KnowledgeProduct

1. Product Development History2. Product Performance3. Maintenance and Service Contracts4. Price5. Delivery6. Quality7. Cost-Benefit Analysis

Competition8. Attitude towards Competition9. SWOT

KnowledgeCompany

1. Culture2. Structure3. Support for Product4. Image5. SWOT

Customer6. Behavior7. Response8. Interest

Buyer’s Behavior

• Needs• Motives– Rational

• Quality• Price• Design

– Emotional• Brand Preference

• Social factors• Cultural factors• Personal factors

Buyer’s Decision Making Process

• Need Recognition• Information Search• Evaluation of Alternatives• Purchase Decision• Post Purchase Behavior– Satisfaction– Dissatisfaction

Personal Selling Process

1. Opening2. Need/Problem Identification3. Presentation/Demonstration4. Dealing with Objectives5. Negotiations6. Closing7. Follow Up

Presentation/Demonstration

• Objectives– Aware– Persuade– Remind

Important Points for Demonstration

• Customize• Balance Verbal and Visual• One Idea at a time• Need to Desire to buy Conversion• Purchasing Benefits – display• Involve prospect• Ask to check understanding• Summarize imp points• Re-emphasize purchase benefits• Ask for Order/Further communication

QUOTAS

Types (PEAS C)• Profit– Gross Sales – COGS– Net Sales – (COGS + Direct Expenses)

• Expense eg, 4% of sales• Activity No of activities to be done• Sales Volume eg, 1000 units in a month

• Combination

How Quotas are Set

• Forecast• Forecast and Potential• Past Experience• Judgment• Compensation equivalent

Administer Quota System

• Set Quota - Accurate, Fair & Attainable • Acceptance by Salesperson• Control

Purposes of Compensation

• Connect individual with Organisation• Influence work behavior • Organisational choice• Influence satisfaction.• Feedback on performance• Reinforcement

Sales Force CompensationPay dissatisfaction may lead to

1. Poor performance2. Absenteeism3. Grievances4. Job dissatisfaction5. Increased Atteration6. Psychological withdrawal7. Stress anxiety8. Poor mental health

Compensation Types• Straight Salary

Advantages– Sense of Security– Simple to administer– Projection of Compensation Expense is possibleDisadvantages– Lacks Motivation– Fixed Expense, Cannot reduce in bad timesWhen to use?– More like delivery– Pre-sales and post-sales services major part– Team oriented Sales efforts

Compensation Types• Straight Commission

Types– Amount per sales– %age of Sales amount– Level Changing amountAdvantages– Motivation– Sense of Achievement– Selling cost in proportion to salesDisadvantages– Uncertainty of Sales– Salesperson pressurize customer for sales– Reluctances in transfersWhen to use?– Low Expense affordability– High Convincing Job

Compensation Types• Combination

Design– Able to live on Salary alone– Top performer: 25%-50% of salary– Commission (as per sales)

or Bonus (as per sales and time)– Set lower and upper Limit– Consider profitability

CRM Cycle

• Customer Need and Acquisition• Customer Development through

Personalization and Customization • Customer Equity through cross selling and up

selling