Ssm lecture-10 & 11 (training & development of the sales force)
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The document discusses the importance of sales training and outlines the typical process for developing a sales training program. It notes that sales training is a major investment for many companies, with over 35% of firms providing over 6 days of training annually. The sales training cycle generally involves four stages - identifying training needs, designing the program, delivering the training, and assessing the results. It provides details on analyzing needs at the organizational, task, and individual levels and determining who requires training. The document also discusses developing training content and selecting delivery methods.
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Ssm lecture-10 & 11 (training & development of the sales force)
- 1. 07/06/10 1 By : Prof. Amit Kumar
- 2. 07/06/10 2 “A student pursuing management education from IILM- Graduate School of Management, for example may find himself or herself placed in a firm as a Sales Manager. Our goal is to prepare the student for the exciting challenges related to leading sales organizations in today’s hyper-competitive global economy”. IILM-GSM Importance of this course Selling & Sales Management
- 3. 07/06/10 IILM-GSM Selling & Sales Management
- 4. 07/06/10 Contents • How Important is Sales Training? • Challenges in Sales Training • Role of Trainer • The Training Process – Training Need Assessment Phase – Designing & Developing the Sales Training Program – Training Delivery Method – Access the Training Efforts IILM-GSM Selling & Sales Management Training & Development of Sales Force
- 5. 07/06/10 How Important is Sales Training? Have you ever dealt with a salesperson who was not knowledgeable about the product or services he or she was selling and you were extremely interested in it? It probably was not a reassuring experience. IILM-GSM Selling & Sales Management Training & Development of Sales Force
- 6. 07/06/10 How Important is Sales Training? Organizations that utilize sales training do so because they see a number of benefits from this investment: • Their sales representatives are more knowledgeable about the firm’s Products and Services • more knowledgeable about the market in which they operate • more knowledgeable about the selling process IILM-GSM Selling & Sales Management Training & Development of Sales Force
- 7. 07/06/10 How Important is Sales Training? The following statistics show: (US Data) • Nationwide, across all industries, nearly $60 billion is spent annually on formal training efforts. • Compared with other area of training, sales training receives the most funding. • Over 35% of firms report that their salespeople receive over 6 days of training every year. • Nearly half (47%) of sales executives ranked ‘enhancing sales training’ as the most important area in which their firm planned to make operational improvements. IILM-GSM Selling & Sales Management Training & Development of Sales Force
- 8. 07/06/10 How Important is Sales Training? When you think of it, would you want to have a relationship with a company that doesn’t make an investment in the ongoing training of its sales personnel? IILM-GSM Selling & Sales Management Training & Development of Sales Force
- 9. 07/06/10 Challenges in Sales Training Will the training program be effective in solving a problem? Will the investment in it be justified? Will it produce the desired or intended results? IILM-GSM Selling & Sales Management Training & Development of Sales Force
- 10. 07/06/10 Role of the Trainer The success of the training program depends on the ability, skill, and motivation of the sales trainer. IILM-GSM Selling & Sales Management Training & Development of Sales Force
- 11. 07/06/10 The Training Process • The sales training program will be different for each firm depending upon its size, resources and the markets in which it operates. • Regardless of an organization’s size or the resources it has, the process sales managers should follow to develop effective sales training programs for the personnel is the same. • Generally, a four stage sales training cycle from planning to delivery. IILM-GSM Selling & Sales Management Training & Development of Sales Force
- 12. 07/06/10 The Sales Training Cycle IILM-GSM Selling & Sales Management Training & Development of Sales Force Identify the Firm’s Training Needs • Determine the objectives of the training and the areas in which salespeople need training • Determine who needs training Access the Training Efforts • Determine the training’s value to the individual salesperson • Determine the training’s value to the organization Develop the Training Program • Determine the content to include in the program • Develop the objectives • Determine the program’s staffing needs • Develop the delivery method Deliver the Training • Schedule the training • Facilitate the transfer of learning
- 13. 07/06/10 The Sales Training Cycle Identify the Firm’s Training Needs 1. Determine the objectives of the training 2. Determine who needs training IILM-GSM Selling & Sales Management Training & Development of Sales Force
- 14. 07/06/10 The Sales Training Cycle Identify the Firm’s Training Needs 1. Determine the objectives of the training • Most experts recommend that sales managers consider three levels of information during the training planning stage- – Information from the organizational level – The task level – The individual level IILM-GSM Selling & Sales Management Training & Development of Sales Force
- 15. 07/06/10 The Sales Training Cycle Identify the Firm’s Training Needs 1. Determine the objectives of the training IILM-GSM Selling & Sales Management Training & Development of Sales Force Development of Firm’s Sales Training Programs Organizational Analysis: How does the training program align with the firm’s goals? Task Analysis: How does the training program help salespeople Develop the KSAs they needed? Individual Analysis: How does the training program match Salespeople’s needs for training?
- 16. 07/06/10 The Sales Training Cycle Identify the Firm’s Training Needs 1. Determine the objectives of the training • At Org level, information should reflect from the firm’s mission statement, strategy as well as firm marketing and sales objectives. • Task level, focus is on identifying level of knowledge, skills and abilities (KSAs) are needed for a firm’s sales jobs. Jobs descriptions are a good place from which to acquire these information. Task level information can be generated from sales manager’s observations, input from the customers. • Individual level information is available from salesperson performance reports. IILM-GSM Selling & Sales Management Training & Development of Sales Force
- 17. 07/06/10 The Sales Training Cycle Identify the Firm’s Training Needs 1. Determine the objectives of the training IILM-GSM Selling & Sales Management Training & Development of Sales Force Input from Sales Manager Job Incumbents Upper Management Training Personnel Customers Performance measures Sales Volumes Service Levels Customer Complaints Turnover Rates No of Sales Calls Profitability Others Org. objectives Sales training goals Observation of salesperson skills Commercially available sales training program Determining Sales Training Needs
- 18. 07/06/10 Training Needs Identification of specific problems Anticipating impending and future problems Management requests Interviewing and observing the personnel on the job Performance appraisal Questionnaire survey Checklist Attitude survey Interpersonal skill test IILM-GSM Selling & Sales Management Training & Development of Sales Force
- 19. 07/06/10 The Sales Training Cycle Identify the Firm’s Training Needs 2. Determine who needs sales training • Not all the salesperson need the same sales training program. • Sometimes groups of sales representatives who need training can be easily identified, such as newly hired or newly promoted representatives. New hired are also likely to begin on-job-training (OJT) or ‘ride along’ with experienced sales personnel. • Also, when a company or competitors, launches a new product or service, enter a new market, or adopts a new technology. IILM-GSM Selling & Sales Management Training & Development of Sales Force
- 20. 07/06/10 The Sales Training Cycle IILM-GSM Selling & Sales Management Training & Development of Sales Force Identify the Firm’s Training Needs • Determine the objectives of the training and the areas in which salespeople need training • Determine who needs training Access the Training Efforts • Determine the training’s value to the individual salesperson • Determine the training’s value to the organization Develop the Training Program • Determine the content to include in the program • Develop the objectives • Determine the program’s staffing needs • Develop the delivery method Deliver the Training • Schedule the training • Facilitate the transfer of learning
- 21. 07/06/10 The Sales Training Cycle Designing and Developing the Sales Training Program 1. What content is needed? 2. Staffing the training program 3. Selecting the training delivery method IILM-GSM Selling & Sales Management Training & Development of Sales Force
- 22. 07/06/10 The Sales Training Cycle Designing and Developing the Sales Training Program 1. What content is needed? • Although it was not identified in this survey, ethics training is becoming more common. Additionally, some org. will include instruction on networking and time management. IILM-GSM Selling & Sales Management Training & Development of Sales Force 0% 20% 40% 60% 80% 100% Managerial Skills Organizational Techniques Communication Skills Computer Skills Sales Skills Product Knowledge
- 23. 07/06/10 The Sales Training Cycle Designing and Developing the Sales Training Program 1. What content is needed? IILM-GSM Selling & Sales Management Training & Development of Sales Force Can You Teach Sales Ethics?
- 24. The Sales Training Cycle Designing and Developing the Sales Training Program 1. What content is needed? • Selling out-of-date products • Sending gifts to customers • The value and time of the gift giving • Presenting false and misleading information about the products and selling unproven solutions • Exaggerating the extent of support firm can offer • Filling inaccurate expense reports IILM-GSM Selling & Sales Management Training & Development of Sales Force Training should focus on business ethics such as:
- 25. 07/06/10 The Sales Training Cycle Designing and Developing the Sales Training Program 2. Staffing the training program • Once decisions about the content and desired outcomes of a proposed program have been determined, a number of questions about staffing of the program need to be addressed. • These includes: – Internal versus External Resources – Time Pressures and – Cost Considerations IILM-GSM Selling & Sales Management Training & Development of Sales Force
- 26. 07/06/10 The Sales Training Cycle Designing and Developing the Sales Training Program 3. Selecting the training delivery method • Historically, it was face-to-face or instruction-led training. Sometimes results in heavy doses on one way communication. • Today, the use of technology-based delivery methods nearly tripled between 2001 and 2006. It might involve sending trainees printed materials and/or audio and videotapes to watch. • Today, many companies allow their new sales representatives to access similar information online when and where they need to. This is referred to as on-demand (self-paced) training. IILM-GSM Selling & Sales Management Training & Development of Sales Force
- 27. 07/06/10 The Sales Training Cycle Designing and Developing the Sales Training Program 3. Selecting the training delivery method • Instructor-led conference calls are another alternatives. So are Web conferences. It allows a presenter to deliver information remotely to trainees’ individual computers. • A web cast is a one-way flow of communication. It is suitable for quick, world-wide training needs. • A webinar typically is designed for a smaller audience. It incorporates a two-way flow of communication including feedback from the receivers either via phone lines and/or text messaging. IILM-GSM Selling & Sales Management Training & Development of Sales Force
- 28. 07/06/10 The Sales Training Cycle Designing and Developing the Sales Training Program 3. Selecting the training delivery method • A webinar typically is designed for a smaller audience. It incorporates a two-way flow of communication including feedback from the receivers either via phone lines and/or text messaging. Canon USA used webinar to train its large network of dealers to use new document management software complementing Canon’s copier products. Dealers quickly received the training they needed at a low cost. IILM-GSM Selling & Sales Management Training & Development of Sales Force
- 29. 07/06/10 The Sales Training Cycle Designing and Developing the Sales Training Program 3. Selecting the training delivery method • Recently two other technology-based delivery options have become available to the sales training scene: podcasting and use of wikis. • Podcasting involves delivering information to a salesperson’s iPod or other similar device. • Wikis are a quick-response training vehicle. A wiki allows all people who have access to the site to post material on it. Wiki participants act as instructors when they post information about how they were able to successfully sell to the firm’s customers. IILM-GSM Selling & Sales Management Training & Development of Sales Force
- 30. 07/06/10 Training Methods contd.. Visual support Participative Conferences Seminars Discussions Role play Case study Workshops Transaction analysis IILM-GSM Selling & Sales Management Training & Development of Sales Force
- 31. 07/06/10 Types of Training Cross-functional training Team training Creativity training Literacy training IILM-GSM Selling & Sales Management Training & Development of Sales Force
- 32. 07/06/10 Types of Training Cross-functional Training IILM-GSM Selling & Sales Management Training & Development of Sales Force A method of job enrichment where employees are trained to perform activities and duties in functional areas other than their assigned job responsibilities. Job rotation is one of the methods in which salespeople in a territory are either rotated through other territories or given additional responsibilities. In Ranbaxy Pharmaceuticals, salespeople are sometimes given corporate responsibilities in between field responsibilities, so that they understand the versatility and nature of the sales job from a different perspective.
- 33. 07/06/10 Types of Training Team Training IILM-GSM Selling & Sales Management Training & Development of Sales Force In B2B selling and high technology product selling, sales teams function in place of individual salespersons. Companies like, Hughes Telecom, Infosys, and Satyam train salespeople by taking them outdoors and inculcating team skills and spirit through experiential learning. Outdoor training program also increase communication skills and improve the motivation function of salespeople. Compaq & IBM India, take salespeople to team training program and adventure games like white water rafting, bridge building in high mountains, and escape exercises in backwaters as part of the team training.
- 34. 07/06/10 Types of Training Creativity Training IILM-GSM Selling & Sales Management Training & Development of Sales Force A popular approach of creativity training is brainstorming. Here, the sales trainee is given the opportunity to generate ideas without fear of judgment. Bajaj Auto Limited took participants to a school where managers were asked to present their problems to students. The students were then invited to solve these business problems. It was found that students solved the problems presented to them without any prejudice. The managers discovered this process of ‘unwinding’ at the program and enjoyed the sessions in which the 16-year-old students solved complex business problems.
- 35. 07/06/10 Types of Training Creativity Training IILM-GSM Selling & Sales Management Training & Development of Sales Force The next round of training covered logical reasoning and the managers participated in the process of rationalization of the solutions offered by the students. • Du Pont, uses the creative techniques to test why new product innovations work in the laboratory and not on the shop floor. • Pepsico India with its brand of potato chips saved huge costs by creative training.
- 36. 07/06/10 Types of Training Literacy Training IILM-GSM Selling & Sales Management Training & Development of Sales Force Literacy, in the sales context, means the mastery over basic and functional skills. Basic means salesperson’s basic selling skills. Functional means area of specialization. Companies like, GE, AMEX, Infosys and Patni Computers sponsor candidates for undertaking interactive on-site learning programs conducted by leading business schools in the country for junior level managers with a minimum work experience of 3-years.
Editor's Notes
- To arm or prepare in advance of a conflict The part of the arm between the wrist and the elbow.
- Cause to feel less worried or afraid..kahne ka matlab ..boubts rah hi gaya..not cleared the doubts Keno RO is a good example to mentioned here….how much is the purification capacity….how much is the warranty period for the filters….and also how the system works..he is not able to answers these..and I was shocked..
- Give example of abn amro…my experience of 1 week training at dubai Seling process means how to look for prospecting…how to approach….presentation…handle objections…close and do follow ups etc
- Come up with example in the class..one from your side ..2 from class side All IT company gives ..2-3 months of training like infosys , wipro, TCS ALL Insurance companies gives 15 days training..how to become an insurance advisor and clear a advisory test at the beginning All retail firms like Bharti WalMart and Others gives 45 days training at the staring in order to provide overall operaional knowledge
- Prior to joinibg a BPO or call center..they provide 2-3 weeks of initial training regrading how to communicate with customers, how to solve their problems…how to sell new products etc…. If there is a problem in closing the sales..then might be training required in order to solve this problems..
- In some companies..the company staff gives the initial sales training.
- In org level, sales managers evaluates the org structure, culture, mission, business climate and log and short term goals. After that task level, which examines the sales job to be performed at different levels in the sales org…we have seen order creator, order taker…different role and resonposibility associated with different sales position. Task level focus on all the functions and jobs in the sales dept.
- Look at the org level..what is the need of sales training like Dell mission statement at org level is Delivering the best customer experience in markets we serve So it is necessary to have formal trainibg program at the beging while joining a Dell cooperation as a customer care executivce …at task levels (task level analysis can be done using the job descriptions of the company) and individual level what is the need of training program..individual related information comes from individual performnace report
- Dell mission statements.. Delivering the best customer experience in markets we serve Level of knowledge..like sales strategy, style, different approach and knowledge regarding the products Skills important for selling jobs are problem solving, decsion making, communication, negotiation and conflict mgt skills Abilities to handle customer objections..ability to conduct presentation..ability to approcah to customer with strong opening statements…ability to do right prospecting etc..ability to manage different tasks at the same time
- Imcumbents.. holding an indicated position, role, office, etc., currently: the incumbent officers of the club. 2. obligatory (often fol. by on or upon): a duty incumbent ..kind of job description
- Enter a new market we have leraned break even analysis and found which one is more suitable..company slaes force or sales agent..if it is CSF then further a sales training is required…..
- My younger brother is a senior doctor at Aiims…..and once he went to one shop in order to purchase a dinner sets…he saw the name of the drugs company logo on the total sets…he talked to the shopowner and said that ..it is not for selling at the shop ..it has to be distributed to the doctors free of cost or as a gift by the medical representative..finally the shop owner said…sir, that’s the reason we are selling it at 50% of the price.
- Instructor led training---In this, salesforece travel to the central site to receive training like thise in Bharti WalMart..got 35 days training at Jaipur. Or vice versa…
- Web cast is used by …..generally banking companies….regarding the market knowledge changing every time
- Cross-functional: A method of job enrichment where employees are trained to perform activities and duties in functional areas other than their assigned job responsibilities. Job rotation is one of the methods in which salespeople in a territory are either rotated through other territories or given additional responsibilities. In Ranbaxy Pharmaceuticals, salespeople are sometimes given corporate responsibilities in between field responsibilities, so that they understand the versatility and nature of the sales job from a different perspective. Team Training: In B2B selling and high technology product selling, sales teams function in place of individual salespersons. Companies like, Hughes Telecom, Infosys, and Satyam train salespeople by taking them outdoors and inculcating team skills and spirit through experiential learning. Outdoor training program also increase communication skills and improve the motivation function of salespeople. Typical sales organizations, like Compaq and IBM India, take salespeople to team training program and adventure games like white water rafting, bridge building in high mountains, and escape exercises in backwaters as part of the team training. Creativity Training: A popular approach of creativity training is brainstorming. Here, the sales trainee is given the opportunity to generate ideas without fear of judgment. For example, one of the creativity training programs for the sales managers of Bajaj Auto Limited took participants to a school where managers were asked to present their problems to students. The students were then invited to solve these business problems. It was found that students solved the problems presented to them without any prejudice. The managers discovered this process of ‘unwinding’ at the program and enjoyed the sessions in which the 10-year-old students solved complex business problems. The next round of training covered logical reasoning and the managers participated in the process of rationalization of the solutions offered by the students. Du Pont, uses the creative techniques to test why new product innovations work in the laboratory and not on the shop floor. Pepsico India with its brand of potato chips saved huge costs by creative training. Literacy Training: Literacy, in the sales context, means the mastery over basic and functional skills. Basic means salesperson’s basic selling skills. Functional means area of specialization. Companies like, GE, AMEX, Infosys and Patni Computers sponsor candidates for undertaking interactive on-site learning programs conducted by leading business schools in the country for junior level managers with a minimum work experience of three years.
- Cross-functional: A method of job enrichment where employees are trained to perform activities and duties in functional areas other than their assigned job responsibilities. Job rotation is one of the methods in which salespeople in a territory are either rotated through other territories or given additional responsibilities. In Ranbaxy Pharmaceuticals, salespeople are sometimes given corporate responsibilities in between field responsibilities, so that they understand the versatility and nature of the sales job from a different perspective. Team Training: In B2B selling and high technology product selling, sales teams function in place of individual salespersons. Companies like, Hughes Telecom, Infosys, and Satyam train salespeople by taking them outdoors and inculcating team skills and spirit through experiential learning. Outdoor training program also increase communication skills and improve the motivation function of salespeople. Typical sales organizations, like Compaq and IBM India, take salespeople to team training program and adventure games like white water rafting, bridge building in high mountains, and escape exercises in backwaters as part of the team training. Creativity Training: A popular approach of creativity training is brainstorming. Here, the sales trainee is given the opportunity to generate ideas without fear of judgment. For example, one of the creativity training programs for the sales managers of Bajaj Auto Limited took participants to a school where managers were asked to present their problems to students. The students were then invited to solve these business problems. It was found that students solved the problems presented to them without any prejudice. The managers discovered this process of ‘unwinding’ at the program and enjoyed the sessions in which the 10-year-old students solved complex business problems. The next round of training covered logical reasoning and the managers participated in the process of rationalization of the solutions offered by the students. Du Pont, uses the creative techniques to test why new product innovations work in the laboratory and not on the shop floor. Pepsico India with its brand of potato chips saved huge costs by creative training. Literacy Training: Literacy, in the sales context, means the mastery over basic and functional skills. Basic means salesperson’s basic selling skills. Functional means area of specialization. Companies like, GE, AMEX, Infosys and Patni Computers sponsor candidates for undertaking interactive on-site learning programs conducted by leading business schools in the country for junior level managers with a minimum work experience of three years.
- We went last month for 3 days faculty retreat program…it was a team training of 60-70 teaching staffs of the organization like IILM.
- Without Prejudice…meaning no pakshpat, fair behavior…students are not linked with any company or org so they can give fair solution Pride and prejudice..novel Jane Austen…Movie on Ashwariya Rai Story is like that..once a hero in the novel…disrespected the heroline of the novel alizabeth..said…she is not beautiful…man showed pride. After this heroine started showing prejudice..she started showing unfair treatnment with the hero. Same time another person Backhom..alizabeth attracted towars him…she stareted liking backhom character..attitude etc But at the end of the novel, backhom became a vilion of the novel and the real hero showed a positve action and lastly they married.
- Cross-functional: A method of job enrichment where employees are trained to perform activities and duties in functional areas other than their assigned job responsibilities. Job rotation is one of the methods in which salespeople in a territory are either rotated through other territories or given additional responsibilities. In Ranbaxy Pharmaceuticals, salespeople are sometimes given corporate responsibilities in between field responsibilities, so that they understand the versatility and nature of the sales job from a different perspective. Team Training: In B2B selling and high technology product selling, sales teams function in place of individual salespersons. Companies like, Hughes Telecom, Infosys, and Satyam train salespeople by taking them outdoors and inculcating team skills and spirit through experiential learning. Outdoor training program also increase communication skills and improve the motivation function of salespeople. Typical sales organizations, like Compaq and IBM India, take salespeople to team training program and adventure games like white water rafting, bridge building in high mountains, and escape exercises in backwaters as part of the team training. Creativity Training: A popular approach of creativity training is brainstorming. Here, the sales trainee is given the opportunity to generate ideas without fear of judgment. For example, one of the creativity training programs for the sales managers of Bajaj Auto Limited took participants to a school where managers were asked to present their problems to students. The students were then invited to solve these business problems. It was found that students solved the problems presented to them without any prejudice. The managers discovered this process of ‘unwinding’ at the program and enjoyed the sessions in which the 10-year-old students solved complex business problems. The next round of training covered logical reasoning and the managers participated in the process of rationalization of the solutions offered by the students. Du Pont, uses the creative techniques to test why new product innovations work in the laboratory and not on the shop floor. Pepsico India with its brand of potato chips saved huge costs by creative training. Literacy Training: Literacy, in the sales context, means the mastery over basic and functional skills. Basic means salesperson’s basic selling skills. Functional means area of specialization. Companies like, GE, AMEX, Infosys and Patni Computers sponsor candidates for undertaking interactive on-site learning programs conducted by leading business schools in the country for junior level managers with a minimum work experience of three years.