STAFFING THE SALES FORCE

Size of Sales force :

1.
2.
3.
4.
5.
6.

Potential Customers & their sales potential

Decide time per call & call frequency
Calculate the total workload
Decide total work time available
Divide work time in various activities
Calculate total number of sales force

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STAFFING THE SALES FORCE

Sales Potential / Breakdown Method :

N = S/P X (1 + T)
where N = No. of Salesperson needed
S = Annual Sales forecast
P = Average Estimated Productivity
T = Annual sales force turnover (%)

Incremental Method :
Based on Marginal Analysis Theory
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STAFFING THE SALES FORCE

Sales force staffing Process (Steps) :

1.
2.
3.
4.
5.

Planning the recruitment & Selection Process

Receiving sufficient no. of applications
Selecting most suitable applicants
Hiring selected candidates
Socialisation and Assimilation

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STAFFING THE SALES FORCE

1.
2.
3.

Planning the recruitment & Selection Process

Establish responsibility
Decide the number of Sales People needed
Outline type of Sales person needed

1.
2.
3.

Job Analysis
Job Description
Job qualification / specification

Receiving Applications
Identify sources of Sales recruits
Evaluate the sources of recruits
Contacting candidates through selected source
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STAFFING THE SALES FORCE

Typical Sources
Internal Sources
1.
2.
3.

1.
2.
3.

Current Employee Referral

Current Employees
Promotions and Transfers
External Sources
Advertisements
4. Employment Agency
Internet
5. Other Companies
Educational Institute
6. Job fairs
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STAFFING THE SALES FORCE

Selecting Sales Person
1.
2.
3.
4.
5.
6.
7.
8.

Screening resumes
Application form
Initial Interview
Intensive Interview
Testing (for junior positions)
Reference check
Physical Examination
Selection Decision
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STAFFING THE SALES FORCE

Hiring Sales Person
1. Company makes the job offer
2. Acceptance of Job Offer by applicant

Socialisation and Assimilation

1. Process through which new recruit learns about
values of organisation
2. Helps increase job satisfaction
3. Reduces turnover of people
4. Gives positive image of company
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Sem-3

Sales Management

TRAINING THE SALES FORCE

Sales Training Process
1.
2.
3.
4.

Assess training needs

Design / Identify the sales training program
Execute the Sales training program
Evaluation and Reinforcement of Sales
Training Program

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TRAINING THE SALES FORCE

Methods used for assessing needs
1.
2.
3.
4.
5.
6.

Sales Managers Observation

Sales force Survey
Customer Survey
Performance Testing
Job Description
Sales force Audit

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TRAINING THE SALES FORCE

Designing of Sales Training Program
1.
2.
3.
4.
5.

Aim (Why ?)
Content (What ?)
Methods (How ?)
Execution (Who, When, Where, What ?)
Evaluation

Aim

Contents

Methods

Execution

Evaluation

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1. Aim / Objectives of Sales Training

Increase Sales Productivity

Increase Sales, Profit or both
Lower sales force turnover rate
Improve customer relations
Introduce new products, markets and
promotional programs
Create positive attitudes and improve morale
Improve teamwork & co-operative efforts
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2. Contents of Sales Training

Company Knowledge
Product Knowledge
Sales technique
Customer Knowledge
Competitive Knowledge
Relationship Building
Sales Technique would include CRM,
Negotiation Skills. Presentation Skills etc
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3. Method of Sales Training
(a)

(b)

Class room training

Lecture
Demonstration
Group Discussions
Behavioral Training
Role play
Case studies
Simulation games
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3. Method of Sales Training
(c)

(d)

On the Job training

Mentoring
Job rotation
On Line Training
Electronic performance support system
Interactive multimedia training
Distance Learning

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3. Method of Sales Training
(e)

Self Study
Audio Cassettes
Manuals
Books
CD ROM

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4. Execution of Sales Training
It involves 5 important decisions
Who will be trained ?
Who will conduct the training ?
When should the training take place ?
Where should the training be done ?
What will be the budgeted expenditure for
training ?

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4. Execution of Sales Training
Who will be trained
New sales people
Existing sales people
Intermediaries
Sales Managers
Who will conduct the training ?
Line sales manager
Staff trainers
Outside training specialists
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4. Execution of Sales Training
When should the training take place ?
New sales people before they get in market
Existing sales people during lean period
Intermediaries during lean period
Sales Managers during lean period
Where should the training be done ?
Centralised training
Decentralised training
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5. Evaluation of Sales Training
Evaluation can be done in 4 major categories
Reactions
Learning
Behaviour
Results
Reinforce Sales Training
Refresher training
Coaching by senior sales people
Web-based or On line reinforce method
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Sales Management

MOTIVATING THE SALES FORCE

Motivating the Sales Person
Motivation (defn) :
The desire to spend efforts to fulfill a need
Motivation includes 3 dimensions
Intensity it is the amount of physical & mental
effort spends on a specific task
Persistence describes how long the
salesperson continues to put forth effort
Direction suggests the sales persons choice
of direction of effort among various tasks
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MOTIVATING THE SALES FORCE

Importance of Motivation

10 15% of Salespeople are self motivated

These are ambitious and self starters

Sales Managers find the task of motivating

salespeople difficult & important because:

Changes in Marketing environment

Conflicting company objectives
Unique nature of sales job
Separate motivational package
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Sales Management

MOTIVATING THE SALES FORCE

Motivation Theories for Salespeople
1.

Maslows Hierarchy of Need Theory

Physiological Needs food, shelter, clothing
Safety Needs Job / Income security
Social Needs friendship, belongingness
Esteem Needs status, recognition, reputation
Self actualisation self fulfillment, self
development

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MOTIVATING THE SALES FORCE

Motivation Theories for Salespeople
2. Hertzbergs dual factor theory
Hygiene factors working conditions, security,
supervision, interpersonal relationships, salary,
company policies etc
Motivational factors recognition, responsibility,
achievement, challenge, opportunities for
growth, etc

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MOTIVATING THE SALES FORCE

Motivation Theories for Salespeople
3. Vrooms expectancy theory of motivation
Expectancy It refers to perception of
relationship between efforts and performance
Instrumentality It refers to perception of
relationship between performance and reward
Valence The concept describes the value
placed on a particular reward by a salesperson

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MOTIVATING THE SALES FORCE

Motivation Theories for Salespeople
4. Churchill, Ford & Walker theory of motivation
It suggests higher sales persons motivation,
greater the efforts, leading to superior
performance.
This increased performance will lead to greater
rewards, which will lead to higher job
satisfaction.
Increased satisfaction will make motivation still
higher.
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MOTIVATING THE SALES FORCE

Motivational Tools
1. Financial Rewards / Compensation :
Financial Compensation
Salary
Commission
Bonus payment
Fringe benefits
Combination of above
Sales Contest
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MOTIVATING THE SALES FORCE

Motivational Tools
2.

Non - Financial Rewards / Compensation :

Promotion
Sense of accomplishment
Recognition
Job security
Sales training program
Job enrichment
Sales Meetings
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Sales Management