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SALES AND
DISTRIBUTION
MANAGEMENT
Swarit Yadav
PGDM (IIM Raipur)
Bakhresa FMCG (South Africa)
Relationship Manager (HDFC Bank)
MD- Shyam Hospital
Faculty(MBA)- GLA University, Mathura
Swarit Yadav
Training
 The sales training process
 Identifying who should be trained and what are
their needs
 Designing and executing a training program
 Evaluation and reinforcement of a training
program
Training
 Identifying who
should be trained
 Newly hired
 Existing salesperson
 Intermediary sales
representatives
 Sales mangers
 Identifying training
needs
 Methods
 Sales managers'
observation
 Sales force survey
 Customer survey
 Performance testing
 Job description
 Sales force audit
 Popular sales training
needs
 Product knowledge
 Customer knowledge
 Competitive knowledge
 Selling skills
 Company knowledge
Training
 Designing and
executing a sales
training program
 Aims(why?)
 Content(What?)
 Methods(How?)
 Execution(Who,when,
where,what?)
 Evaluation
 Designing the sales
training program
 Aims/objectives of
sales training(why is
sales training
needed?)
 Content of training
program(what should
be the content of
sales training?)
 Initial training for new
sales trainees
 Continuing training
program for existing
emplyees
 Time and territory
management
 Ethical and legal issues
in selling
Training(sales training methods)
Training(selecting sales training methods)
 Lecture
 Demonstration
 Group discussion
 Role playing
 Case studies
 Simulation games
 Sensitivity analysis
 films
 Distance
learning/online
 Demonstration
 EPSS
 Interactive multimedia
 Audio
cassettes/podcasts
 CDs, books, manuals
 On the job
 Job rotation
Group training methods Individual training methods
Training
 Who will be trainees?
 New and existing
salespeople
 Intermediaries
 Sales managers
 Who will conduct the
training?
 Line sales personnel
 Staff trainers
 Outside training
specialists
 When should the
training take place?
 Where should the
training be done?
 Centralized training
 Decentralized training
 What would be the
budget expenditure?
 What are the
instructional materials
to be used?
 Manuals
 Company publications
Training
Motivating
 Difficulty
 Changes in marketing
environment
 Conflicting company
objectives
 Unusual nature of
sales job
 Separate motivational
package
 Relevance of
motivational theories
to salespeople
 Maslow’s hierarchy of
needs theory
 Hertzberg’s two-factor
theory
 Vroom’s expectancy
theory
 Churchill, ford and
walker model of sales
force motivation
Motivation(Maslow’s hierarchy of
needs)
 Self actualization
 Self fulfillment
 Self development
 Esteem needs
 Fulfilled through
status
 Recognition
 Reputation
 Prestige
 Social needs
 Fulfilled through
acceptance
 Belonging, love,
friendship
 Safety needs
 Fulfilled through
safety
 Job security
 Income security
 Physiological needs
 Fulfilled through food
 Shelter, clothing,
water
Motivation(hertzberg’s two factor theory)
 Hygiene factor
 Working
environment
 Security
 Type of supervision
 Interpersonal
relationship
 Salary, fringe
benefits
 Company policies
 Will bring
motivational level to
point zero
 Motivation factor
 Recognition
 Responsibility
 Achievement
 Challenge
 Opportunity for
growth
 Interest value of the
work
 Incentives and
commisions
Motivation(Vroom’s expectancy
theory)
 3 factors are
important
 Expectancy
 Instrumentality
 Valence
 Expectancy
 Person’s perception
of the relationship
b/w effort and
performance
 Instrumentality
 Person’s perception
of the relationship
b/w performance
and reward
 Valence
 Value placed on a
particular reward by
a salesperson
Motivation(Churchill,ford and
walker model of sales motivation
Motivation
• Effort
• Apptitude
Performance Rewards Satisfaction
Motivation
 Financial compensation
plan
 Salary
 Commission
 Performance bonus
 Fringe benefits
 Combination
 Sales contest
 Team compensation
 Global compensation
issues
 Promotional opportunities
 Sense of accomplishment
 Personal growth
opportunities
 Recognition
 Job security
 Sales meetings
 Sales training programs
 Effective supervision
 Praise and encouragement
Financial reward/tools Non-financial rewards/tools
Compensating
 Types of
compensation plan
 Straight salary
 Straight commission
 Combination of
salary, commission,
and/or bonus
 Straight salary plan
 Secure income
 Increased loyalty to
company
 Willing to do non
selling activities
 Little financial
incentive to sales
people
 Not good for new
companies or
declining companies
Compensating
 Straight commission
plan
 Commission base
 Sales volume
 Profitability based
commission plan
 Commission rate
 Rate paid per unit
 % of sales or gross
profit
 Commission start
 Straight commission
with salesperson
paying travelling,
fooding and lodging
 And the vice-versa
 Commission payout
 After the customer
billed for order
 50% at customer
billing and 100% at
order delivery
Compensating
 Combination plan
 Salary plus
commission plan
 Salary plus bonus
plan
 Salary plus
commission plus
bonus plan
 Salary plus
commission plan
 Fixed salary
 Variable commission
 Increased sales but
good customer
service
 Salary plus bonus
plan
 More than 60 percent
fixed
 Short term and long
term objectives for
bonus
 Salary plus
commission plus
bonus plan
Evaluation of sales force
Evaluation(Sales by branches)
Evaluation(sales analysis by product
lines)
Evaluation(sales analysis by
customer classification)
Evaluation(different type of sales
analysis)

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Sales management 9

  • 2. PGDM (IIM Raipur) Bakhresa FMCG (South Africa) Relationship Manager (HDFC Bank) MD- Shyam Hospital Faculty(MBA)- GLA University, Mathura Swarit Yadav
  • 3. Training  The sales training process  Identifying who should be trained and what are their needs  Designing and executing a training program  Evaluation and reinforcement of a training program
  • 4. Training  Identifying who should be trained  Newly hired  Existing salesperson  Intermediary sales representatives  Sales mangers  Identifying training needs  Methods  Sales managers' observation  Sales force survey  Customer survey  Performance testing  Job description  Sales force audit  Popular sales training needs  Product knowledge  Customer knowledge  Competitive knowledge  Selling skills  Company knowledge
  • 5. Training  Designing and executing a sales training program  Aims(why?)  Content(What?)  Methods(How?)  Execution(Who,when, where,what?)  Evaluation  Designing the sales training program  Aims/objectives of sales training(why is sales training needed?)  Content of training program(what should be the content of sales training?)  Initial training for new sales trainees  Continuing training program for existing emplyees  Time and territory management  Ethical and legal issues in selling
  • 7. Training(selecting sales training methods)  Lecture  Demonstration  Group discussion  Role playing  Case studies  Simulation games  Sensitivity analysis  films  Distance learning/online  Demonstration  EPSS  Interactive multimedia  Audio cassettes/podcasts  CDs, books, manuals  On the job  Job rotation Group training methods Individual training methods
  • 8. Training  Who will be trainees?  New and existing salespeople  Intermediaries  Sales managers  Who will conduct the training?  Line sales personnel  Staff trainers  Outside training specialists  When should the training take place?  Where should the training be done?  Centralized training  Decentralized training  What would be the budget expenditure?  What are the instructional materials to be used?  Manuals  Company publications
  • 10. Motivating  Difficulty  Changes in marketing environment  Conflicting company objectives  Unusual nature of sales job  Separate motivational package  Relevance of motivational theories to salespeople  Maslow’s hierarchy of needs theory  Hertzberg’s two-factor theory  Vroom’s expectancy theory  Churchill, ford and walker model of sales force motivation
  • 11. Motivation(Maslow’s hierarchy of needs)  Self actualization  Self fulfillment  Self development  Esteem needs  Fulfilled through status  Recognition  Reputation  Prestige  Social needs  Fulfilled through acceptance  Belonging, love, friendship  Safety needs  Fulfilled through safety  Job security  Income security  Physiological needs  Fulfilled through food  Shelter, clothing, water
  • 12. Motivation(hertzberg’s two factor theory)  Hygiene factor  Working environment  Security  Type of supervision  Interpersonal relationship  Salary, fringe benefits  Company policies  Will bring motivational level to point zero  Motivation factor  Recognition  Responsibility  Achievement  Challenge  Opportunity for growth  Interest value of the work  Incentives and commisions
  • 13. Motivation(Vroom’s expectancy theory)  3 factors are important  Expectancy  Instrumentality  Valence  Expectancy  Person’s perception of the relationship b/w effort and performance  Instrumentality  Person’s perception of the relationship b/w performance and reward  Valence  Value placed on a particular reward by a salesperson
  • 14. Motivation(Churchill,ford and walker model of sales motivation Motivation • Effort • Apptitude Performance Rewards Satisfaction
  • 15. Motivation  Financial compensation plan  Salary  Commission  Performance bonus  Fringe benefits  Combination  Sales contest  Team compensation  Global compensation issues  Promotional opportunities  Sense of accomplishment  Personal growth opportunities  Recognition  Job security  Sales meetings  Sales training programs  Effective supervision  Praise and encouragement Financial reward/tools Non-financial rewards/tools
  • 16. Compensating  Types of compensation plan  Straight salary  Straight commission  Combination of salary, commission, and/or bonus  Straight salary plan  Secure income  Increased loyalty to company  Willing to do non selling activities  Little financial incentive to sales people  Not good for new companies or declining companies
  • 17. Compensating  Straight commission plan  Commission base  Sales volume  Profitability based commission plan  Commission rate  Rate paid per unit  % of sales or gross profit  Commission start  Straight commission with salesperson paying travelling, fooding and lodging  And the vice-versa  Commission payout  After the customer billed for order  50% at customer billing and 100% at order delivery
  • 18. Compensating  Combination plan  Salary plus commission plan  Salary plus bonus plan  Salary plus commission plus bonus plan  Salary plus commission plan  Fixed salary  Variable commission  Increased sales but good customer service  Salary plus bonus plan  More than 60 percent fixed  Short term and long term objectives for bonus  Salary plus commission plus bonus plan
  • 23. Evaluation(different type of sales analysis)