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Chapter 10

Managing the Personal

Selling Function
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Chapter Questions
• What is the role of personal selling in business
marketing?
• What is the selling process followed by an
industrial sales person?
• What are various types of sales organisations?
• How the salesforce is managed and deployed?
• How the major, national, or key accounts are
managed?
• What are the ethical issues in personal selling?
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Role of Personal Selling in BM

Major roles are:

1)Part of problem – solving ability of the company

2)Part of the communication mix.

3) Building a long-term relationship with key

customers.
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The Selling Process

Transactional salesperson follows the process:
• Prospecting and qualifying
• Pre-approach or Pre-call planning
• Approach
• Presentation and demonstration
• Overcoming objections
• Trial close / closing the sale
• Follow-up and service
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Types of Sales Organisations

• Geographic organisation
• Product organisation
• Market oriented organisation
• Combination organisation
Major selection criteria
(1)Size and resource of the firm
(2)Nature of product and market
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Management of Sales Force

Management / administration of sales force
includes:
 Recruitment and selection of salespersons
 Training the salespeople
 Supervision and motivation of sales force
 Compensation of salesforce
 Evaluation and control of salespersons
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Recruitment of the Sales Force

After planning the needed number and type of
salespeople, recruitment starts by:
• Identifying prospective candidates, using
internal and external sources.
• Evaluating and selecting effective sources of
recruitment.
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Selection of the Sales Force

Tools or steps in selection process:
• Screening resumes
• Application blank
• Initial interview
• Intensive interview
• Testing
• Reference check
• Physical examination
Each company decides selection criteria-
e.g. knowledgeable, high energy, reliable, helpful.
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Training the Salespeople

The training process has three phases:
Assess Sales Design and Evaluation and
Training Needs Execute Sales Reinforcement of
Training Sales Training
Programme Programme

•Assess training needs of (1) newly hired sales

trainees, and (2) experienced / existing salespeople.
•Design and execute sales training programme
using ‘ACMEE Method’: Aims, Content, Methods,
Execution, Evaluation.
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Designing & Executing Sales Training Programme
Aims / Objectives (Vary from company to company)
Examples
• Prepare new sales trainees
• Increase sales, profits, or both
• Increase sales productivity

Content of training programme

1) Initial training for new sales trainees (Broader)
• Company, product, customer, competitor knowledge
• Selling skills or sales techniques.
2) Continuing training for existing salespeople (specific)
• Depending on training needs
• Examples: New product, negotiating skills.
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Sales Training Methods

Grouped into five categories:
• Class room / conference training: Lectures, group
discussion.
• Behavioral learning: Case studies, role-playing
• Online training : Distance learning, interactive multimedia.
• Absorption training: CD-ROM, audio cassettes, manuals,
books.
• On the job training: Mentoring, job rotation.
Execution of Sales Training programme
First, make decisions on :
1. Who will be the trainees and trainers?
2. When and where the training take place?
3. What would be the budgeted expenditure?
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Execution / Implementation of Sales Training
Programme
• Arranging internal / external trainers
• Arranging conference hall, teaching aids, travel,
etc.
• Prepare time table, communication, etc.
Evaluation of Sales Training Programme
• Sales performance against targets before and after
training
• Written tests before and after the training
• Trainees evaluate training programme
Reinforcement training methods
• Web – based or online training
• Refresher training and retraining
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Supervision of Sales Force
• Supervision is directing and controlling daily activities of
salespeople:
Responsibilities of sales supervisor /manager:
• Communicating & implementing sales policies &
strategies
• Counseling on deficiencies of salespeople
• Setting goals or targets
• Creating a favourable work environment & relationship.
• Training and development of sales persons.
Methods used for supervising salespeople
Direct : Phone, e-mail, sales meeting, personal contact,
coaching.
Indirect: Sales report, sales analysis, expense report,
compensation plan.
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Motivation of Sales Force
• Motivation is the effort salesperson makes to complete
activities of the job.
• Categories of motivational methods / tools : Financial &
Nonfinancial
Financial tools / methods:
(1)salary, (2) commission, (3) bonus, (4) fringe benefits, (5)
combination, (6) sales contests
Non- financial tools / methods:
(2)Promotion, (2) sense of accomplishment, (3) personal growth
opportunities, (4) recognition, (5) job security, (6) training, (7)
sales meetings, (8) job enrichment, (9) supervision
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Compensation of Sales Force

Purpose : Attract and motivate salespeople.
Methods / plans of salesforce compensation:
• Straight salary
• straight commission
• combination
• Salary plus commission
• Salary plus bonus
• Salary plus commission plus bonus
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Evaluate and Control of Sales Force
Performance
Purposes :
• To decide payment increment, promotion, training needs
• To find strengths and weaknesses
Procedure
• Set policies on performance evaluation and control
• Decide bases of (or criteria for) performance evaluation
• Establish performance standards / goals / targets.
• Compare actual performance with the standards.
• Review performance evaluation with salespersons
• Decide sales management actions.
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Deployment of Sales Force

It includes the following
• Setting - up sales territories
• Determining size of the sales force
• Allocating salespeople to territories
Setting – up or Designing Sales Territories
Steps involved are :
• Select a control unit
• Find location and potential of customers
• Use build – up method to decide basic territories
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Determining Size of the Sales Force

Three alternative methods available

1)Workload method

2)Sales potential or Break down method

3)Incremental method
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Allocating Salespeople to Territories

Criteria / factors considered for allocation:
1)Relative abilities of salespeople
• Based on product & market knowledge, past
performance, selling and communication skills.
• link salespeople abilities to territory potentials.
2) Effectiveness of salesperson in a territory
• Relate salesperson’s social & cultural
characteristics with those of territory customers.
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Management of Major / Key / National Accounts
• Major, national, or key accounts are high sales and profit
potential customers.
• Difference between major and national accounts:

Large Major National

Account Account
Sales and
Profit Potential of Transaction- Minor
customers al Account Account
Small

Simple Complex
Complexity of Customers
• Complexity of national account due to geographically
dispersed customers’ operating units.
• Major accounts are simple to serve as customers’ operating
unit is at one place.
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Managing Key Accounts

Objective: Become a preferred or sole supplier.
Strategy / Tasks:
• Team selling – headed by a senior manager.
• Relationship marketing-long term, mutually
beneficial.
• Support from top management and other
functional executives.
• Provide superior value, after identifying key
account’s needs.
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Ethical Issues in Personal Selling

Ethical situations involving salespeople:
• Relations with the company
• Relations with customer –main issues:
• Gifts
• Misrepresentation
• Business entertainment
Ethical guidelines
• Develop and enforce a code of ethics