The document discusses sales force management. It covers several topics in 3 sentences or less each: introduction to sales and its reputation; types of sales organizations and sizes; objectives of a sales force like prospecting and selling; strategies for reps to work with customers; common structures like territorial and product based; determining size based on workload and call frequency; recruitment, selection, training, supervision, motivation, evaluation, and compensation of sales forces.
The marketing environment represents a mix between the internal and external forces which surround an organization and have an impact upon it, especially their ability to build and maintain successful relationships with target customers.
The marketing environment consists of the micro and macro environment.
Macro environmental factors include social, economic, political and legal influences, together with demography and technological forces. These are sometimes referred to as the PESTLE factors and are discussed in more detail in PESTLE analysis. The organization cannot control these forces, it can only prepare for changes taking place.
Micro environment refers to the forces closely influencing the company and directly affect the organization’s relationships. The factors include the company and its current employees, its suppliers, marketing intermediaries, competitors, customers and the general public. These forces can sometimes be controlled or influenced and are explained in more detail in Porter’s 5 Forces.
Porter’s 5 Forces model is an excellent tool to analyze the structure of the competitive environment. Two important forces are the bargaining power of customers and the bargaining power of suppliers.
Supplier power is represented by their ability to determine the terms and price of supply and will increase if there are fewer suppliers than buyers, if the organization is not a key customer for the supplier, or if their industry is not attractive for suppliers.
Buyer power refers to the pressure that customers exert on companies to obtain high quality products and services at lower prices. Buyer power increases when there are few buyers and many sellers in the field, or when products are not significantly differentiated and can be easily substituted. For the seller, buyers’ demands represent costs. This means that the stronger the buyer is, the less profit available for the seller, which is why many companies try to develop strategies that reduce the power of buyers.
The PESTLE Analysis is a framework used to scan the organization’s external macro environment. The letters stand for Political, Economic Socio-cultural, Technological, Legal and Environmental.
Sales Management is the process of current exchanges of goods - and thus sales management forms an integral part of Marketing Management. A significantly broader meaning is assigned to sales management as it also encompasses managing the sales functions and the sales force.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit:
http://www.welingkaronline.org/distance-learning/online-mba.html
This Slideshare is the sole Property of the Welingkar School of Distance Learning – Reproduction of this material , without prior consent, either wholly or partially will be treated as a violation of copyright.
The marketing environment represents a mix between the internal and external forces which surround an organization and have an impact upon it, especially their ability to build and maintain successful relationships with target customers.
The marketing environment consists of the micro and macro environment.
Macro environmental factors include social, economic, political and legal influences, together with demography and technological forces. These are sometimes referred to as the PESTLE factors and are discussed in more detail in PESTLE analysis. The organization cannot control these forces, it can only prepare for changes taking place.
Micro environment refers to the forces closely influencing the company and directly affect the organization’s relationships. The factors include the company and its current employees, its suppliers, marketing intermediaries, competitors, customers and the general public. These forces can sometimes be controlled or influenced and are explained in more detail in Porter’s 5 Forces.
Porter’s 5 Forces model is an excellent tool to analyze the structure of the competitive environment. Two important forces are the bargaining power of customers and the bargaining power of suppliers.
Supplier power is represented by their ability to determine the terms and price of supply and will increase if there are fewer suppliers than buyers, if the organization is not a key customer for the supplier, or if their industry is not attractive for suppliers.
Buyer power refers to the pressure that customers exert on companies to obtain high quality products and services at lower prices. Buyer power increases when there are few buyers and many sellers in the field, or when products are not significantly differentiated and can be easily substituted. For the seller, buyers’ demands represent costs. This means that the stronger the buyer is, the less profit available for the seller, which is why many companies try to develop strategies that reduce the power of buyers.
The PESTLE Analysis is a framework used to scan the organization’s external macro environment. The letters stand for Political, Economic Socio-cultural, Technological, Legal and Environmental.
Sales Management is the process of current exchanges of goods - and thus sales management forms an integral part of Marketing Management. A significantly broader meaning is assigned to sales management as it also encompasses managing the sales functions and the sales force.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit:
http://www.welingkaronline.org/distance-learning/online-mba.html
This Slideshare is the sole Property of the Welingkar School of Distance Learning – Reproduction of this material , without prior consent, either wholly or partially will be treated as a violation of copyright.
What Your Sales Reps Won't Tell You: SFPC 2014TinderBox
Keeping up with sales effectiveness trends is critical for a successful sales organization. Sales technology investment is on the rise, sales teams are going mobile, and competition is as steep as ever. The fight for better visibility into your team’s pipeline is real. Learning from your prospects--not just your reps--makes the difference between winning and losing. Join David Kerr, COO of TinderBox, in this workshop to learn from recent sales effectiveness research initiatives, evaluate upcoming technology trends, and discover how more informed sales teams are staying ahead of the curve.
How to increase sales force productivityLouis Ekome
This presentation contains tips on how productivity of the sales force can be improved in a business organization. Business organizations and managers often think about how they can get more out of their sales force. I hope you will find this useful if you are in that category
Sales & Distribution Management- nature, recruitment and seelction, training and compensation of sales people, sales cost and sales meetings,
Channel flows, sales territories, role of logistics
Investing in a sales training program is the amongst best investments to make your business grow exponentially. Here are the 9 valuable tips for sales coaching that you must know.
https://www.yatharthmarketing.com/valuable-tips-for-sales-coaching/
Ten Slides in Ten Minutes - Thinking about Sales OperationsBill Graham CP.APMP
Without a central (and consolidated) Sales Operations function a sales organisation is heading for disaster. This slide deck presents a few thought on the elements of the Sales Operations function
1. Presented to: Ms. Saman Izhar
Presented by: Syed Ahmed Hussain
SALES FORCE
MANAGEMENT
2. Introduction
Although selling is an extremely important function in most organizations it
does have something of a bad reputation.
This has mainly come about from the kind of hard selling associated with
door-to-door selling.
This image is quite far removed from the majority of selling that takes place
especially in the business-to-business sector.
Much of a salesperson’s time is not actually taken up by selling but with a
variety of other tasks that they have to undertake in order to achieve the sale.
3. Sales organization
Sales force organization refers to the type and size of the sales force.
The type determines the degree of controllability while the size has profit
implications. If the sales force is large the organization has to decide
about the kind of specialization and co-ordination to use.
4. Sales Force Management
Efforts put forth to attain a company’s sales objectives.
Sales management can involve any of the following activities:
(1) formulation of sales strategy through development of account
management policies, sales force compensation policies, sales revenue
forecasts, and sales plan.
(2) implementation of sales strategy through selecting, training, motivating,
and supporting the sales force, setting sales revenue targets.
(3) sales force management through development and implementation of
sales performance, monitoring, and evaluation methods, and analysis of
associated behavioral patterns and costs
5. Sales Force Objectives
A Sales Force will have one or more of the following tasks.
Prospecting – search for leads
Targeting – allocation of time between prospects and customers
Communicating – info about company and products
Selling – Approach, presentation, answering objections, closing sales
Servicing – consulting, technical, financing, etc.
Info gathering – market research
Allocating – scarce products to customers.
6. Sales Force Strategy
Ways sales reps work with customers to maintain company
competitive edge:
Rep to buyer – discuss issues with a prospect or customer
Rep to buyer group – rep gets to know as many members of buyer group as possible
Sales team to buyer group –
Conference selling – company sales rep and resource group to customer to talk big
problems or opportunities
Selling Seminar – Company team to group of buyers/customers
Once company has strategy can go with direct sales force or contractual force. Direct
sales force is standard sales force with office and field reps, while contractual reps are
purely commission sales forces.
7. Sales Force Structure
Territorial – each rep gets own piece of land to work equally divided by
workload or potential – result is no customer confusion as to who the
rep is
Product –Sales force sells along product lines
Customer – Sales force sells along Customer/Industry lines
Complex – combination of both
8. Sales Force Size
Depends upon the number of customers you want to reach then:
Group customers into classes by annual sales volume
Establish desired call frequency-The number of calls to be made per
year on each account in a size class
Classes size time freq. = workload
Determine number of calls a rep can make a year
Workload divided by rep calls per year = number of reps needed
10. Recruitment
It is the process of finding out candidates, who are encouraged to apply.
Selection is the process of choosing some out of many candidates.
Therefore, we can say that selection is recruitment, but recruitment is not
selection.
Selection is the process of rejection of unfits.
Recruitment precedes the selection process.
11. Selection
The process of selecting differs from one place to another. Each firm has it’s
own method of selecting people. The qualities expected must match with the
job description and the person should be qualified enough too. The steps
followed for selection is the same in all the places.
Application Blank
Screening
Reference
Personal Interview
Test
Medical examination
Final interview
12. Training
Training is the continuation of selection. After selection, the sales manager
will have two options.
Send him to the work field directly
Send him for training program
It is always advisable to train a person before sending him to the work
floor.
Training means the process of perfecting the salesmen for their work.
It is the organized procedure through which knowledge as well as skill,
for a particular purpose, is acquired.
13. Training Methods
There are five training methods.
1. Class Room / Conference Training
2. Behavioral Learning / Simulations
3. Online Training
4. Absorption / Self learning Training
5. On-The-Job Training
14. Supervising
Directing the sales force
Identify customer targets and set call norms
Develop prospect targets
Ensure efficient use of time and assets
15. Motivation
Mostly believed that the higher the salesperson’s motivation, the greater
the effort and the resulting performance, rewards, and satisfaction-and
thus further motivation.
Sales managers must be able to convince salespeople that they can sell
more by working harder or by begun trained to work smarter
Sales managers must be able to convince salespeople that the rewards
for better performance are worth the extra effort.
16. Motivation
In this stage organization identify the attributes that motivates the sales
executive to perform well.
There are two types of incentives given by the organizations
They are
FINANCIAL NON-FINANCIAL
INCENTIVES
18. Evaluating
To know whether the sales executives are achieving the quotas set for them
i.e sales plans, the reports of their performances are compared against the set
standards.
On the basis of the information, the conclusions are drawn and accordingly
incentives are announced.
If required the sales executives are motivated and trained.
20. Compensation
Direct salary:
In this method sales executives are given fixed salary per month.
Direct commission:
In this case the executives will be working on commission basis…Eg : Life
insurance agents.
Combined Plans:
It is a mixture of straight salary and straight commission plans. In this
method the sales executives are paid their regular salary plus their commission
on the sales they make.
Eg. BMTC pays their conductors a fixed salary + 2% Commission on the sale
of tickets.
Application Blank: information about the background of the applicant.
Screening: Evaluating a large number of subjects to identify those with a particular set of attributes or characterstics.
Fringe benefits:Compensation in addition to direct wages or salaries, such as company car, house allowance, medical insurance, paid holidays, pension schemes, subsidized meals. Some fringe benefits are regarded part of a taxable income.