Chapter 5

Sales Force Management

Dr Pinaki Ranjan Bhattacharyya

 Sales Force Management

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.

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 Sales Force Management

Kinds of Salesman

• Creative - Create demand for the product. Role is

Educating, Training, Demonstrating,
Merchandising the beneficial aspects of a
product

• Service - Specialised in selling intangible products

• Detail - Does not deal directly but with some other

agency, which is instrumental in selling the
product

• Manufacturer’s - Directly appointed and paid by the mfr, to

supplement the selling activities of whole-
salers and retailers, to have correct
information about the market

• Wholesalers - To push max goods to retailers located at

different places, to increase the sales volume

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 Sales Force Management

Kinds of Salesman

• Retailer’s - (i) Indoor / Counter Salesman

(ii) Outdoor / Goes Outside to
deliver “goods” to customers

• Speciality - Main job is to sell speciality items,

goods which are highly priced ,
durable in nature

• Staple - Speciality Goods which are common

in use in course of time become
“ STAPLE” – sold in bulk,

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 Sales Force Management

Designing the Sales Force

Steps in Process
• Objectives
– Sales volume and
• Objectives and Strategy
profitability
• Structure – Customer satisfaction
• Sales force size • Strategy
• Compensation – Account manager
• Type of sales force
– Direct (company) or
contractual

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 Sales Force Management

Designing the Sales Force

Steps in Process • Types of sales force

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

• Key accounts

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 Designing the Sales Force

Steps in Process • Workload approach:

– Group customers by volume
• Objectives and strategy – Establish call frequencies
• Structure – Calculate total yearly sales

• Sales force size call workload

• Compensation – Calculate average number of

calls/year
– Calculate number of sales
representatives

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 Designing the Sales Force

• Four components of compensation:

Steps in Process
– Fixed amount

– Variable amount
• Objectives and strategy
– Expense allowances
• Structure
– Benefits
• Sales force size
• Compensation plans
• Compensation
– Straight salary

– Straight commission

– Combination

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 Sales Force Management

Managing the Sales Force

Steps in Sales Force Management

• Recruitment and selection

• Training
• Supervising
• Motivating
• Evaluating

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 Sales Force Management

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

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 Sales Force Management

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

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 Sales Force Management

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 configuration software, time-and-duty

analysis, greater emphasis on phone and Internet
usage, greater reliance on inside sales force

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 Sales Force Management

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

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 Sales Force Management

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

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