Managing the Sales Force

Unit 2
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Job analysis:
Is the primary tool in personnel management
where in manager tries to gather, synthesize
and implement the information available
regarding the workforce in the concern.
Required so as to put right man on right job.

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The information collected under job
analysis is-
Nature of jobs required in a concern.
Nature/ size of organizational structure.
Type of people required to fit that structure.
The relationship of the job with other jobs in the concern.
Kind of qualifications and academic background required
for jobs.
Provision of physical condition to support the activities of
the concern. For example- separate cabins for managers,
special cabins for the supervisors, healthy condition for
workers, and adequate store room for store keeper.
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Two outcomes of job analysis
Job description
Job specification

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Two outcomes of job analysis
Job description
Is an organized factual statement of job contents in the
form of duties and responsibilities of a specific job.
It constitutes all those facts which are related to a job
such as :
Title/ Designation of job and location in the concern.
The nature of duties and operations to be performed in that job.
The nature of authority- responsibility relationships.
Necessary qualifications that are required for job.
Relationship of that job with other jobs in a concern.
The provision of physical and working condition or the work environment
required in performance of that job.

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Two outcomes of job analysis
Job specification
Is a statement which tells us minimum acceptable
human qualities which helps to perform a job.
Helps in hiring an appropriate person for an appropriate
position. The contents are :
Job title and designation
Educational qualifications for that title
Physical and other related attributes
Physique and mental health
Special attributes and abilities
Maturity and dependability
Relationship of that job with other jobs in a concern.
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RECRUITMENT AND
SELECTION OF
SALES PERSONNEL

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Recruitment is the process
of attracting a large number
of potential applicants to
apply for the job that has to
be filled up

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SOURCES FOR
RECRUITMENT
INTERNAL
EXTERNAL
RECRUITMENT
INTERNAL SOURCES OF RECRUITMENT
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EMPLOYEE REFERRALS
RECOMMENDATIONS
INTERNAL TRANSFERS
INTERNAL PROMOTIONS



EXTERNAL SOURCES
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CONSULTANTS / EMPLOYMENT AGENCIES
ADVERTISEMENTS
COMPETITOR EMPLOYEES / RELATED
INDUSTRY EMPLOYEES
COLLEGES



SELECTION
A selection system is a set of
successful screens. At any of the
screens an applicant may be
drooped from further
considerations
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Criteria used to select Sales Personnel
Requirement in Sales Personnel
Mental Aptitude Dimensions Personality Dimensions
Mental alertness
Business terms &
memory recall aptitude
Communication skills
Numerical ability
Mechanical interest
Honesty & character
strength
Sociability
Cynicism
High energy levels
Dominance
Competitiveness
Emotional maturity
Work habits
Work motivation 13
Sales Personnel Selection Process
Screening the candidates
Selection test
Background check
Interview
Letters of recommendation
Physical examination
Making the employment
offer
Personality tests
Honesty tests
Psychometric tests
Group discussions
Patterned interview
Stress interview
Group interview
Product interview
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Structured/ unstructured
interview
Telephonic interview
Aptitude tests
(Numerical / Logical)
SALES TRAINING
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NEWLY HIRED
EXPERIENCED/
EXISTING
Initial sales training
Follow-up or refresher training
Sales Training Program
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Designing the
training program
Implementing the
training program
Evaluating the
training program
Sales Training Program
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Designing the
training program
Implementing the
training program
Evaluating the
training program
Determine objectives of the
training program
Review sales activities of the
organization
Discuss who should be
trained
Identify training needs
Determine how much
training is required
Sales Training Program
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Designing the
training program
Implementing the
training program
Evaluating the
training program
Selecting the right trainer
Timing of training
Place of training
Sales Training Program
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Designing the
training program
Implementing the
training program
Evaluating the
training program
Salespersons reaction
Knowledge acquisition
Behavioral change/
transfer of learning
Organizational
outcomes
A
AIM/ OBJECTIVES
C
CONTENT
M
METHODS
E
EXECUTION
E
EVALUATION
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ACMEE
MODEL
SALES FORECASTING
AND BUDGETS
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Sales Forecasting
is not

Sales forecast
Predicts how many people will want to buy
a product or service from a company in a
specific period

Uses
Used to make big decisions for businesses,
including
What product lines are developed,
How much to spend on production,
How to promote products and services and
How to fulfill demand.
Limitations
Are merely predictions, and can change based on
a company's actions or the condition of the
market as a whole.
Too low or too high forecast creates problems for
a business.
Mistakes in forecasting happen because not all of
the variables that influence the company were
taken into consideration.
Purpose of Sales Forecasting
Cash Flow-
How much of a product or service to buy or
invest in-
Enhance cash flow within a company


Patterns and Trends-
Sales performance from the previous year-
Understand your customers' needs and
accommodate for them

Purpose of Sales Forecasting
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2
3
4
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Category 1 Category 2 Category 3 Category 4
Series 1
Series 2
Series 3
Value
Excellent method for determining the value
of the business-
Estimate profits
Purpose of Sales Forecasting
Employment and
Investment
Helps with decisions on staffing
Helps considering investments or
expansions in the production
capacity of the business
Purpose of Sales Forecasting
Anticipating Problems
Helps develop a contingency plan
Helps spend time developing business
rather than dealing with unexpected issues
Purpose of Sales Forecasting
Factors influencing sales forecasting

Business Environment- population growth, level
of income, etc
Conditions within the industry- industrial unrest,
rigid government rules and regulations, raw
materials
Internal Conditions of the Business Enterprise-
price policy, promotion policy, distribution
channel, etc
Socio Economic Conditions- national
income, standard of living, etc
Factors Affecting Export Trade- import and
export policy of the government, etc

Factors influencing sales forecasting

Steps in sales Forecasting
Forecasting of General Economic Conditions
Forecast of Industry Sales
Preparing Forecast of Company Sales
Methods of Sales Forecasting
Jury of Executive/ Expert Opinion-
Invite the opinions of executives and
consultants

Delphi Technique-
Similar to the expert opinion method
opinion of the experts in sought independently
experts are kept informed about the general
opinion of the group, so that they can modify
their own positions, if they wish.
This continues until a consensus is reached
Delphi Technique-
Poll of Sales Force Opinion Method-
Estimates the buyers intentions from
experienced personnel in the sales force
Advantages-
Utilizing the specialized knowledge of the
people in closet touch with market conditions
Because the salespeople help to develop the
forecast, they have greater confidence
Easy to breakdown according to products,
territories, customers, middlemen, etc.

Limitations-
This method can be used only when the firm
has competent high-caliber sales personnel.
Not generally trained to do forecasting , and
influenced by current business conditions in
the territories, salespersons tend to be overly
optimistic or overly pessimistic

Salespeople are often not aware of broad
changes taking place in the economy and of
trends in business conditions outside their
own territories

Projection of past sales-
Trend Method
Time Series Method
Exponential smoothing


Trend Method-
Provides a rough trend of the forecast on the
basis of past experience

Trend Method-
Provides a rough trend of the forecast on the
basis of past experience
Forecast may be made by adding a set
percentage to last years sales, or to a moving
average of the sales figures for several past
years

Time Series Method
This method is used for long periods
Time Series Method
This method is used for long periods
duly taking into account long term trends,
cyclical changes, seasonal variations and
irregular fluctuations
Exponential smoothing-
This is a type of moving average that
represents a weighted sum of all past numbers
in a time series, with the heaviest weight
placed on the most recent data.
Exponential smoothing-
This is a type of moving average that
represents a weighted sum of all past numbers
in a time series, with the heaviest weight
placed on the most recent data.
Next years sales= a (this years sales) + (1 a)
(this years forecast)
Survey of customers buying plans-
What more sensible way to forecast than to ask
customers about their future buying plans?
Limitation-
Respondents do not always have well
formulated buying plans, and even if they do,
they are not always willing to relate them.

Regression analysis-
Association between company sales and
other variables
Equation to explain sales fluctuations in
terms of related and presumably casual
variables
Three major steps in forecasting sales through
regression analysis:
Identify variables casually related to company
sales
Determine or estimate the values of these
variables related to sales
(Zandu Balm- Rainy/ Winter season/ Munni
Badnam Hui)
Derive the sales forecast from these estimates

Econometric model building and
simulation-
Attractive for companies marketing durable
goods
Derive equation or system of equations to
represent a set of relationships among sales
and different demand- determining
independent variables
S= R + N
S= total sales
R= replacement demand
N= new owner demand


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Sales Budget
Budget-
A budget is a tool, a financial plan that is
used to plan for profits by anticipating
revenues and expenditure.

Sales budget-
The sales budget the blueprint for making
profitable sales

It is a projection of what a given sales program
means in terms of sales volume, selling
expenses, and net profits
Purposes of the Sales Budget-
Planning
Coordination
Control

Planning-
Determines how the marketing and sales
objectives will be met
Co-ordination-
Helps maintaining a desired relationship between
expenditure and revenues
Evaluation-
Tool to evaluate the sales departments
performance
ESTIMATING BUDGETED SELLING
EXPENES
Sales department budget is the cost, running
the marketing function in the budgetary period
Components-
Selling expenses
Advertising Expenses
Administrative expenses

Types of Budget
Sales budget- projection of revenue computed
from forecast unit sales and average prices
Selling expenses budget- approved amount that
the department will spend to obtain the revenues
projected in the sales budget.
Profit budget- merged sales budget and the
selling expense budget to determine gross profit
Basis of Selling Expense Budgets
Affordable method
Percentage of sales method
Competitive parity method
Objective and task method
Bidding system
Return on investment (ROI)
Sales Budgeting Procedures