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Sales training

Sales training






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    Sales training Sales training Presentation Transcript

    • Sales Training: Objectives,Techniques, and Evaluation Management of the Modern Sales Force Marketing 6228
    • Training InvestmentMark W. Johnston and Gary W. Marshall, Sales Force Management,McGraw Hill, 2006
    • Sales Training Issues Who should be trained? What should be the primary emphasis in the training program? How should the training process be structured? – on-the-job training and experience? – formal and more consistent centralized program? – web-based? – instructor-based?
    • Sales Training Objectives Increase productivity Improve morale Lower turnover Improve customer relations Improve selling skills
    • Obstacles to Introducing Training Top management not dedicated to sales training Lack of buy-in from frontline sales managers and salespeople Salespeople’s lack of understanding of what training is supposed to accomplish Salespeople’s lack of understanding regarding application of training to everyday tasks
    • Well-Designed Training Program Analyzes sales force needs Sets specific, realistic, and measurable training objectives Allows for adequate development and timely, effective implementation Subjects itself to evaluation and review – What do we want to measure? – When do we want to measure? – How do we do it? What measuring tools are available? Modifies to achieve greater effectiveness
    • Well-DesignedTrainingProgramMark W. Johnston and Gary W.Marshall, Sales Force Management,McGraw Hill, 2006
    • Recent Shifts in Training New Sales Recruits  Companies with less than $5 million in annual sales are spending more on sales training per new hire - $5,500 worth of training per salesperson.  Training in smaller companies has increased from 3.3 months to 4.4 months.  Smaller companies are placing more emphasis on training than several years ago.  Companies are spending time and money on training experienced salespeople  Companies with more than $5 million in annual sales, are spending less money on trainingSource: Christen P. Heide, Dartnell’s 30th Sales ForceCompensation Survey: (Chicago: Dartnell Corp., 1999)
    • Training Costs and DurationMark W. Johnston and Gary W. Marshall, Sales Force Management,McGraw Hill, 2006
    • Recent Shifts in Training Experienced Sales Personnel  Experienced sales reps are given, on average, 32.5 hours of ongoing training per year at a cost of $4,032 per rep  Continuing increasing amounts of training reflects a commitment to provide ongoing learning opportunities for senior salespeople  Companies are spending an increasing amount of time on product training and less on training in selling skillsSource: Christen P. Heide, Dartnell’s 30th Sales ForceCompensation Survey: (Chicago: Dartnell Corp., 1999)
    • Training Costs and Duration
    • Sales Training Topics Product or service knowledge Market/Industry orientation Company orientation Selling skills Time and territory management Legal and ethical issues Technology Specialized topics
    • Product Knowledge Enables a salesperson to provide prospects and customers with the critical information for rational decision-making Involves – Knowing how the product is made – How the product is commonly used, and – How it should not be used. Customers often want to know how competitive products compare on – price – construction – performance – compatibility with each other Companies that produce technical products spend a greater amount of time on product knowledge
    • Market/Industry Orientation Topics How a particular industry fits into the overall economy Knowledge of the industry and the economy Economic fluctuations that affect buying behavior and require adaptive selling techniques Customers buying policies, patterns and preferences in light of competition Customers customers and what satisfies them Needs of both wholesalers and retailers
    • Company Orientation Topics Company polices that affect their selling activities How to handle customer requests for price adjustments, product modifications, faster delivery and different credit terms Sales manuals that cover product line information and company polices A well-prepared sales manual gives a sales representative quick answers to a customers questions
    • Time and Territory Management Salestrainees need to learn to manage time and territories 80/20 rule applies: – 20% of the customers account for – 80% of the business and – Require a direct proportion of time and attention
    • Legal/Ethical Issues Federal law dictates corporate action or avoidance of action in areas of marketing, sales and pricing Sales personnel need to understand the federal, state and local laws that constrain their selling activities Statements made by salespeople carry both legal and ethical implications Lapses in ethical conduct often lead to legal problems
    • Technology Notebook computers – Presentations – connecting to company intranet or extranet – delivering documentation quickly and accurately Home offices eliminate the need to go to another office Salesperson can be almost totally self-sufficient with – high-speed network connection – computer – printer – cell phone Effective computer use affords sales personnel more face-to-face customer contact time
    • Specialized Training Topics Overcoming price objections Holdingthe line on price Working the trade show Problem solving
    • Training Methods - HowMark W. Johnston and Gary W. Marshall, Sales Force Management,McGraw Hill, 2006
    • Training Methods - WhereMark W. Johnston and Gary W. Marshall, Sales Force Management,McGraw Hill, 2006
    • Keys for Effective OJT Teaming - Bringing together people with different skills to address issues. Meetings - Setting aside times when employees at different levels and positions can get together and share thoughts on various topics. Customer interaction - Including customer feedback as part of the learning process. Mentoring - Providing an informal mechanism for new salespeople to interact and learn from more experienced ones. Peer-to-peer communication - Creating opportunities for salespeople to interact together for mutual learning.Source: The Education Development Center (www.edc.org)
    • Classroom Training Trainee receives standard briefings in – product knowledge – company polices – customer and market characteristics – selling skills Formal training sessions avoid wasting executive time Classroom sessions permit use of audiovisual materials and technical resources Interaction between sales trainees builds camaraderie
    • Measuring the Costs and Benefits Salestraining consumes substantial time, budget and support resources Relationship between sales training and revenue is difficult to measure
    • Broad Benefits Improved morale Lower turnover Higher customer satisfaction Management’s commitment to quality and continuous improvement Measuring changes in skills, reactions and learning assists both new and experienced sales personnel
    • Training EvaluationMark W. Johnston and Gary W. Marshall, Sales Force Management,McGraw Hill, 2006
    • Training EvaluationMark W. Johnston and Gary W. Marshall, Sales Force Management,McGraw Hill, 2006
    • Key Terms sales training analysis on-the-job training (OJT) role-playing electronic training methods sales training costs