If we come across in practice levels 29 or 37, it is because the dropout rate is very high. The answer indicates the number of salespeople needed. Sales engineers act as advisors and design consultants in industrial marketing. Actually sales force management does much more than serving as the muscle behind marketing management. To keep a positive atmosphere and motivation levels high, the sales force needs to be rewarded from time to time. Good salesmen are not born. It also facilitates managerial control. Most salespeople use e-mail, laptop/tablet computers, smartphones; they have standardized slide shows/interactive web-based demos for presentations. Although in some organisation some of the above mentioned duties are assigned to the personnel manager but in most cases it is the sales manager who is responsible for successful performance of these functions. At best they should be used to screen out applicant from further consideration and not as the basis for acceptance or final selection. Above the salespeople, there are sales supervisors who devote much time and energies to manage the sales-force. Grahaak Sales Force Management app is the example that can make your work easier. Designing a Process to Explain Benefits/ Values: Selling is a process for facilitating customer buying. Psychological tests are of the four major types; Intelligence tests, Aptitude tests, Interest tests and personally tests. A company takes into account its competitive setting, because this influences all its sales-related policies; which in turn affects the formulation of strategies. Report a Violation. Rigorous pipeline analysis leads to better sales forecasts. We do not pretend this is easy. As they move up, added pressures cause them to relate their efforts among growing set of responsibilities. Sales management is hence described as the muscle behind the marketing management. The authors have strengthened the focus on managing the modern tools of selling, such as customer relationship management (CRM), social … Sales management originally referred exclusively to … All sales managers, junior and senior, should lead from the front, spending time in the field with salespeople — coaching, inspecting, observing, teaching, selling. vii. The tools can vary from simple contact management software to advanced Customer Relationship Management, or CRM, software. Managing a sales person who is suitable for the job is less challenging then managing someone who does not fit into the job. This is accomplished through practice under an experienced trainer. vi. After selection, the selected persons undergo initial training and throughout their careers with the company – receive continuing training through diverse training systems. Customer satisfaction — specific metrics focusing on customer experience. Training is necessary to secure effective and efficient sales. Marketing and sales must be on the same team, each performing its own critical functions. Many firms recognize high performers annually with member­ship in a Presidents Club, including a trip (with spouse) to an exciting destination. It will reduce cost of training as well as selling costs. Sales job description must be sharply drawn to estimate the correct sales productivity. If morale is high output is also high. It, therefore, calls for a different selling approach or specialized services. Selling goods or services which assure the highest gross profit and. Lack of motivation will lead to ill thinking and it will become difficult to manage the sales force. ii. Understanding where brands should be in the future, and providing an empirical basis to write marketing plans regularly to help get there. The review helps the sales person to understand what has been achieved and what needs to be achieved. Knowledge is exhibited in guiding and counseling the salesmen in their activities and work with certain customers. Difficulty in integration with other management information systems. Examples- Procurement — price; engineers — product design; manufacturing — production efficiency. Sales Force Management, 10e remains the most definitive text in the field today. Managers need to learn the art of motivation and keep their sales team highly motivated. Some sales forces are huge. Case notes are part of a service provider’s daily operations and Case Management is designed to streamline the process. are supplementary devices to motivate sales people to maximum efficiency. In this latest edition of Sales Force Management, Mark Johnston and Greg Marshall continue to build on the tradition of excellence established by Churchill, Ford, … In practice, this calculation provides a ballpark esti­mate for sales force size. c. Sales Commission- Variable compensation based on sales (or profits). In practice, we may encounter monopolistic competition which is most common, or oligopolistic competition where there are, a number of competitors. The net profit contribution of each additional salesperson is calculated. A salesperson here serves as an advisor. A person shares the incentive commission with other recruits. As the market gets exhausted soon beyond certain levels, this cannot be called a sustainable business. Top down — senior sales managers work with regional/district sales managers to decompose overall firm sales objectives into individual control units — sales regions, districts, territories. Sales Force Management (SFM) is a sub-system of marketing management. Others, who are above the level of sales supervisors spend less time on managing sales persons activities, but are concerned with their effectiveness. Using criteria to choose salespeople from the recruitment pool. Sales Force Management and Salespersons 7. Compensation plans are designed to provide appropriate levels and methods of compensation. Above all proper selection can have higher efficiency in selling. Marketing tends to have a long-term, more strategic view; sales must deliver short-term revenues. Sales force is too large, perhaps at D. Sales managers should decide what criteria would support/reject each hypothesis, then select one or more sales districts/regions for trial — increase/ decrease sales force size — and similar districts/ regions as controls. Some salespeople achieve in lesser time what others achieve taking far longer. In internet multi-level marketing, the originator does. 4,200 for Amway and an annual fee of Rs. For most of the sales executives, effective performance by sales personnel is the utmost responsibility. It is expanding. Sales volume potential of a growth-oriented company is a function of the effectiveness and number of salespersons it has got. iv. Example- An FMCG Sales person recruited for an automobile sales position is a misfit. The sales response to a particular selling effort function needs to be established to apply this method. Sales management has dual responsibility, generating sales volume and developing sales man power. Perhaps the most critical leadership function is encouraging salespeople to live the mission — providing a rationale for the sales job over and above financial rewards. Sales Force Management – Managing the Sales, Sales Force Have Traditionally Been Organized Into Four Types As Mentioned Below, Sales Manager: Tasks and Responsibilities of a Sales Manager, Sales Force Management: Definition, Objectives, Process, Strategies, Activities, Roles and Other Details, Sales Force Management – Definition of SFM, Sales Force Management – Objectives of SFM, Sales Force Management – Identifiable Processes Involved with SFM, Sales Force Management – 6 Sales Force Management Tasks for an Effective Selling Effort, Sales Force Management – Activities of SFM, Sales Force Management – Sales Force Management and Salespersons, Sales Force Management – Role of Marketing in SFM, Sales Force Management – Managing the Sales Force: Features and Managerial Decisions. Sales knowledge training can he imparted through lectures, sales training conferences, plant visits, individual study and correspondence between sales managers and their people. Sales managers in modern organization are required to be customer-oriented and profit-directed and perform several tasks besides setting and achieving personal selling goals of the firm. Sales attitude training tries to strengthen sales man’s positive attitude toward his company, product and sales manager and to transform his negative attitude into positive ones. It should be fair to both the company and its sales force, and competitive with compensation plans in the industry area. 3. It uses the personal desire to excel. The effective management of the sales people is a major task of sales management. The current Indian market for direct selling products is around US $600 million. i. Anticipate, address customer objections. We can choose any combination of product-customer group as our market. Thus, a paint manufacturer may have different salespersons for domestic paints, industrial paints and marine paints. v. Price realization — extent to which the firm achieves planned price levels. Traveling salesmen are allocated definite sales territories and they have to fulfill certain sales quotas also. Sales-force management work starts with job analysis; viz. The overall size of the salesforce affects the number of calls made and the frequency with which they are made. The extent of this variation is a matter of selling skills. Awards must be tempting and substantial. ii. The contest should have normally a period of one to three months. Sale Force Management is the primary link between the Product offered by the Company and the end consumer that will buy the product. Sales force management, Breakout question, chap 11. Counseling and coaching sales people to remove the defects and weaknesses in their performance, iii. In 1886, he founded a perfume company and employed women to sell them directly. A sales territory is a particular grouping of customer and prospects assigned to a sales person. Sales Force Management, 9e remains the most definitive text in the field today. Managing headcount is typically a crucial HR function; sales managers often wage difficult internal battles to optimize sales force size. Concerned with SKA program placement, reporting structure, interfaces with other functions. Opportunity management- if the sales force management process is correctly implemented, sales opportunity will be created, iv. Reward systems are powerful motivators for sales ­people. Specialization is one of the most important design variables. It should be simple, easy to understand and expensive to administer. Assigning executives for achieving sales objectives, iii. The scheme works only up to certain levels. A plan facilitates the actions of the sales people and allows for corrections or modifications if needed. Sales managers in modern organization are required to be customer-oriented and profit-directed and perform several tasks besides setting and achieving personal selling goals of the firm. Under democratic managerial style we have consultative direction involving continuous communication and cooperation between the sales manager and his salesmen. He should know his men not only as individual but also as groups. Before publishing your articles on this site, please read the following pages: 1. Strategy of selling ultimately is tested against interactions of the salespeople with the customers; which lead to the realization of the selling objectives. Weeding out poorly performing salespeople; filling vacancies. Market specialization is chosen for non-technical products having several markets or customer-group, but each with a unique set of problems. Recruitment deals with securing as many qualified people as possible so that some of them can be selected to fill the vacancies. In India, two dozen life insur­ance firms employ more than 20 lakh agents to sell their products; GE, IBM, Pfizer each employ tens of thousands of salespeople around the world. Expenses (traveling, loading and boarding). A standardized process is undesirable, but sales managers should guide sales people’s approaches via well-designed training programs, coaching, and counseling. Sales force management systems are information systems that help automate some sales and sales force management functions. Control and evaluation or assessment of sales performance. Learn when to accept rejection, move to another customer; learn how to better qualify prospects. The firm may choose among several sales perfor­mance measures. Three interrelated variables for organizational design: i. Desired degree of centralization/decentralization. It translates the marketing plan into performance. To modify an employee-based sales force takes time — onboarding salespeople, equip­ment. These two equal if salespeople were to perform all the activities listed in the job description. These efforts result in orders in future. It is already banned in China and a ban is under consideration in the UK. Task 4 addresses sales organization design; firm choices should reflect strategic realities. As sales executives move to and although middle management levels, they retain concern for management of sales-force. The latest entrant is Amway India Enterprises. Selling task varies from customer to customer, and market to market. b. Bonus- Paid for achieving sales quota — typically target sales revenues (sometimes profit). v. Profit sharing or bonus e.g., 10 percent of original salary, permitting salesmen to participate in the corporate prosperity. It is also much easier to secure good competitive service on a localised basis. Bonus commissions are handsome, going up to 21 per cent of sale value. Sales objectives turned into specific performance requirements are sales quotas. These applications have many tools for better analyzing customer data, securing insight. We have to consider the number of sales personnel unit required and the number of salespersons required to perform them. It has to incur expenses on training. Sales­person activities also evolve based on customer life cycle, other variables. Non-financial incentives fulfill egoistic and higher level psychological wants of human beings. (iii) Salesperson’s reports, personal contact and personal supervision can help and inspire salesmen. Setting targets and objectives based on inputs, ii. If so, how? Sales Force Management David Jobberis an internationally recognised marketing academic and is Professor of Marketing at the University of Bradford School of Management. Sales Force Management (SFM) is a sub-system of marketing management. The commonly used control units are states, districts, cities and trading areas. An ideal plan of remuneration to salesmen will be: i. Incentive plan links compensation with sales secured. Salespeople must be thoroughly acquainted with the selling techniques they can use, and management has a responsibility in doing so. We do not pretend this is easy. Geographical expansion and slowing down of the growth rate, we reverse the above and calculate manpower required by determining the sales forecast first, and then dividing it by sales productivity of an individual salesman. In B2B marketing, the field sales force has always been critical; salespeople typically introduce products/services directly to end users. Students will learn about job design and recruitment processes, tools of recruitment, the role of training in sales force development, and motivating salespeople to perform the tasks critical to an organization's success. Evaluate sales and sales management strategies in relation to current legal and ethical standards of practice. 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