Lowering the cost of turnovers and absenteeism. Lowering training time and costs.

. Lowering the cost of non performance Increasing customer satisfaction by having same salesperson call.

the

IN MANY INDUSTRIES A GOOD SALES FORCE

IS A COMPETITIVE ADVANTAGE

MAJOR STEPS IN SALES PERSONNEL SELECTION PROCESS

1. Application

6. Physical Examination

2. Initial Interview

Yes

Decision

No

5. Reference Checks

3. In-depth Interviews

4. Testing

The job application form - An orderly, convenient method Process of collecting necessary information for determining an applicants minimum qualifications. It avoids professional resumes and focuses on data required for your company

When reviewing an application form, the sales manager should look for - the minimum job requirements, all dates accounted for, number of jobs and length of time spent on each job, reason given for leaving jobs, pattern of growth.

 Interviews

need to be standardized as much as possible if recruitment happens across many interview panels. For doing that interview panels go through a briefing session before the recruitment drive. is best to have a few questions structured and leave the remaining unstructured and have the interviewer fill in his /her feedback in a structured document interview looks at the fitment of the person for the specific job description w.r.t skills, knowledge and talent.

It

Typical

Non verbal cues such as body movements, gestures, firmness of handshake, eye contact and physical appearance are important -however the interpretation of these are normally non standard

1. 2. 3. 4. 5. 6. 7. 8. 9.

Effective communicator Ability to listen Ability to ask questions Ability to solve problems Well organized Positive Self image Well mannered and courteous Naturally persuasive Person of Integrity

Test subjects that are often used for selecting sales personnel include (Aptitude, Knowledge, Personality, Intelligence)
Aptitude tests. Intelligence tests. Interest tests. Knowledge tests.

Personality tests.

 References are the names of persons from whom information can be obtained on an applicants ability and character.

Almost all companies require their prospective employees to undergo physical examinations. As a general rule, if the applicant gets this far in the process, he or she has the job unless health problems are discovered.

Costs to consider include both actual and potential costs: 1. Actual costs. a. Recruiting and assessment costs. b. Induction and orientation costs. c. Training costs.

Costs to consider include both actual and potential cost:

continued

2. Potential costs.
a. Costs associated with hiring a person who subsequently fails. b. Costs associated with rejecting a person who would have been successful on the job.

THE SOCIALIZATION OF SALES PERSONNEL

Socialization is the process by which salespeople learn the sales culture and behaviors appropriate for their roles in the organization.

PURPOSES OF SALES TRAINING

Orienting new salespeople to the job. Improving knowledge in areas such as product, company, competitors, or selling skills. Positively influencing attitudes in such areas as job satisfaction.

Lowering selling costs.

Increasing sales in a particular product or customer category.

Increasing customer satisfaction.

SALES TRAINING PROCESS

Planning Phase

Organizing Phase

Staffing Phase

Directing Phase

Evaluation Phase

PHASE ONE: PLANNING FOR SALES TRAINING

The first step when developing or maintaining an ongoing sales training program is assessing needs. Needs assessment entails: Determining the training needs of the sales force; and Setting objectives for satisfying those needs.

1. Identify the requirements of the position.

2. Determine the difference between performance objectives and results.

3. Determine why a difference exists.

4. Plan /redesign the training program

 Questionnaires. Interviews. Tests given during meetings for diagnostic purposes. Direct observation in the field. Analyses of sales, profits, and activity reports.

Other ways to assess training needs:

Failure analysis determines the reasons low-performing salespeople fail to achieve their sales goals.

Success analysis is used to identify factors that appear to make salespeople successful. Exit interviews determine attitudes toward the job.

PHASE TWO: ORGANIZING FOR SALES TRAINING

Training objectives to be accomplished.

Number of trainees.
Trainers experience. Each salespersons understanding of the subject matter.

PHASE TWO: ORGANIZING FOR SALES TRAINING

continued

Each trainees ability to learn and past experience. Training materials available. The costs per trainee of each method.

Extent of pre session assignments.

ON THE JOB TRAINING The best and most frequently used training takes place on the job. Class room training has its place but on the job training is important in sales skills

WHEN DOES TRAINING OCCUR? Training begins the first day of work. It continues throughout the career. Sales meetings serve as an important training opportunity.

PHASE THREE: STAFFING FOR SALES TRAINING

WHO IS INVOLVED IN TRAINING? Corporate staff trainers. Sales force personnel. Outside training specialists.

PHASE FOUR: DIRECTING THE SALES TRAINING EFFORT

TRAINING CULTURE -how much do you believe in formal training how much budgets do you commit SALES CULTURE is the set of key values, ideas, beliefs, attitudes, customs, and other capabilities and habits shared or acquired as a sales group member.

PHASE FIVE: SALES TRAINING EVALUATION

STEPS IN THE EVALUATION
1. Determine what should be measured. 2. Determine the information collection method. 3. Determine the measurement methods.

4. Analyze the data, determine the results, and draw conclusions for making recommendations.

Salespersons reaction Knowledge acquisition Behavioral change Organizational outcomes

Initial ST Follow-up or Refresher Training by the manufacturer to the distributors sales force. Training by the manufacturer to the customers

Motivation refers to the arousal, intensity, direction, and persistence of effort directed toward job tasks over a period of time.

How can u motivate employees

Humour corner Talking stick Man overboard awards

Personal characteristics of SFP

Competitor Achiever Ego-driven Service oriented

Exploration

Establishment

Maintenance

Disengagement

Finding an appropriate occupational field

Successfully establishing a career in a certain occupation

Holding on what has been achieved, reassessing career with possible redirection
40 50

Completing ones career

20

30

60

Age in Years

THE SEVEN COMPONENTS OF THE SALES MOTIVATIONAL MIX AND EXAMPLES OF EACH MOTIVATIONAL METHOD

1.

2.

3.

4.

Sales culture Ceremonies Stories Symbols Language Basic compensation Salary Commissions Fringe benefits Special financial incentives Bonuses Contests Trips Nonfinancial rewards Opportunity for promotion

5.

6.

7.

Challenging work assignments Recognition Sales Training Initial Ongoing Sales meetings Leadership Style Personal contacts Performance evaluation Method Performance Activity Publicity

EXAMPLES OF CULTURAL VALUES AND BELIEFS AND THEIR IMPLEMENTATION WITHIN THE SALES FORCE

CULTURE
Shared Values Reward for performance Customer service at any cost Employees are part of family Attain sales targets Shared Beliefs Customer orientation We like this company We are a team The company cares about us Quality work life We are professionals

IMPLEMENTING CULTURE
Shared Ceremonies Annual awards for meritorious customer service Monthly meetings to acknowledge people who attain 100% of sales targets Shared Stories Sales managers who make salespeople successful; help with personal problems Heroic efforts to please customers by legendary salespeople Shared Symbols and Slogans "Build bridges" to be in touch with customers. "We don't stand on rank" (equality of family.) Open offices for easy communication Special plaques for customer service and sales leaders

An individual will tend to reduce the level of effort if one of these situations is encountered:
1. Sales performance did not increase.
2. No important rewards were given for meeting the quota. 3. The rewards given for meeting were not worth the extra work. quota

4. Treatment was not fair because one persons rewards were the same as anothers who worked harder.

Job Satisfaction and Work Attitudes

Job satisfaction refers to feelings toward the job. Job dissatisfaction, aggregated across many individuals, creates a sales force that is more likely to exhibit: 1. Higher turnover. 2. Higher absenteeism. 3. Lower corporate citizenship.

4. More grievances and lawsuits.

5. Stealing, sabotage, and vandalism. 6. Poorer mental and physical health.

Maslows Hierarchy of Needs Theory Herzbergs Two-Factor Theory Goal Setting Theory Expectancy Theory Job Design Theories

MATCH PEOPLES MOTIVES WITH INCENTIVES THEY VALUE

Incentives are aspects of the environment that appeal to the salespersons motives and have enough worth to motivate purposeful behavior to obtain them.

Incentives that motivate people to do their best are high motivators. Examples of high motivators: Rewards for successes Recognition for achievement Job advancement Freedom to manage oneself Training and sales meetings Leadership Performance evaluation Incentive compensation plans

A motivated sales force is essential for sales performance. A good well structured and balanced compensation plan is required to attract and retain a quality sales force and keep it motivated.

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Attract quality sales people Improve the productivity Optimize the sales effort Reduce sales expenses Retain quality manpower Reduce attrition

An effective compensation plan (characteristics): Fairness to all Provide incentive and motivation Directs the sales force toward activities that are consistent with overall marketing objectives. Connects efforts, performance and rewards Helps to attract and retain competent sales persons. Helps to stimulate sales persons to put in their best efforts Has two components, one as an assured income another as an additional income for superior performance. Is simple to understand and administer.

Designing the compensation plan involves following steps:

Consider Job analysis, job evaluation and overall compensation structure of the company Consider Industry practice ( What competitors offer?) Decide compensation level after discussions. Decide compensation mix: Financial Non financial Decide on weightage of different elements in the mix. Implement , evaluate / review and improve.

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Types of compensation plans:

Straight salary

Straight commission

Salary plus group commission.

Salary plus commission

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Straight salary plan: Advantages

Simple and easy to design and administer. Gives a sense of security. Is suitable when the company adopts a pull strategy. the product/ territory is new efforts and actual sales are loosely correlated. Negotiation and purchase cycle is long (Eg: technical projects)

Disadvantages
Is not a stimulant to increase sales Cost of fixed salary is to be incurred even if the sales is poor.

Straight commission plan: Merits

Incentive to perform better. Commission is a variable cost and is linked with volume/ profits. It is suitable when: Company has adopted a push strategy. Not much of non-selling activities are involved. Market is highly competitive and sales effort is directly linked with sales results.

Demerits
Often difficult to design and administer. May be ineffective when there are many new salesmen. May lead to unhealthy rivalry/ jealousy among salesmen. May lead to unhappiness when market is down due to external reasons. Income of salesmen can be unstable. Overaggressive salesmanship might dissatisfy customers.
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Promotions Recognition Programmes Fringe Benefits Expense Accounts phone bills, travel expense
All by co. All by employee Partially

Perks Gardner, driver, club membership, educational opportunities Sales Contests