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