Chapter 10

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Sales Training: Objectives,

Techniques, and Evaluation

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 Learning Objectives
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• Identify the key issues in sales training.
• Understand the objectives of sales training.
• Discuss the development of sales training programs.
• Understand the training of new sales recruits and experienced salespeople.
• Define the topics covered in a sales training program.
• Understand the various methods for conducting sales training.
• Discuss how to measure the costs and benefits of sales training.
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 Key Terms
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sales training analysis
on-the-job training (OJT)
role-playing
electronic training methods
sales training costs

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 Key Terms
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• Sales training analysis (pg. 309)
– A review and analysis of the training needs of the sales force designed to answer

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three basic questions: (1) Where in the organization is training needed? (2) What
should be the content of the training program?, (3) Who needs the training?
• On-the-job training (OJT) (pg. 321)
– It is a carefully planned process in which the new recruit learns by doing and includes
coaching and feedback from management and/or experienced salespeople.
• Role playing (pg. 322)
– Individuals (sales trainees or experienced salespeople) perform in front of others and
then critiqued by management or other more experienced salespeople.
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Electronic training methods (pg. 322)
– A variety of techniques and methodologies using electronic delivery systems. Most
often these include the Internet (online training) to deliver information and provide
feedback to salespeople.
• Sales training costs (pg. 323)
– Costs associated with the development, delivery, and evaluation of sales training
efforts inside the company. 4
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 Sales Training Issues
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• Who should be trained?
• What should be the primary emphasis in the training program?
• How should the training process be structured?
– on-the-job training and experience?
– formal and more consistent centralized program?
– web-based?
– instructor-based?
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 Sales Training Objectives
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Increase productivity
Improve morale
Lower turnover
Improve customer relations
Improve selling skills
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 Obstacles to Introducing Training
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Top management not dedicated to sales training

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Lack of buy-in from frontline sales managers and salespeople
Salespeople’s lack of understanding of what training is supposed to
accomplish
Salespeople’s lack of understanding regarding application of training to
everyday tasks
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 Well-Designed Training Program
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• Analyzes sales force needs
• Sets specific, realistic, and measurable training objectives
• Allows for adequate development and timely, effective implementation
• Subjects itself to evaluation and review
– What do we want to measure?
– When do we want to measure?
– How do we do it? What measuring tools are available?
• Modifies to achieve greater effectiveness
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Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved.
 Recent Shifts in Training New
Sales Recruits
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• Companies with less than $5 million in annual sales are spending more on sales
training per new hire - $5,500 worth of training per salesperson.
• Training in smaller companies has increased from 3.3 months to 4.4 months.
• Smaller companies are placing more emphasis on training than several years
ago.
• Companies are spending time and money on training experienced salespeople
• Companies with more than $5 million in annual sales, are spending less money
on training

Source: Christen P. Heide, Dartnell’s 30th Sales Force Compensation Survey: (Chicago:
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Dartnell Corp., 1999)
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 Recent Shifts in Training
Experienced Sales Personnel
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• Experienced sales reps are given, on average, 32.5 hours of ongoing training
per year at a cost of $4,032 per rep
• Continuing increasing amounts of training reflects a commitment to provide
ongoing learning opportunities for senior salespeople
• Companies are spending an increasing amount of time on product training and
less on training in selling skills

Source: Christen P. Heide, Dartnell’s 30th Sales Force Compensation Survey: (Chicago:
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Dartnell Corp., 1999)
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 Sales Training Topics
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• Product or service knowledge
• Market/Industry orientation
• Company orientation
• Selling skills
• Time and territory management
• Legal and ethical issues
• Technology
• Specialized topics
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 Product Knowledge
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• Enables a salesperson to provide prospects and customers with the critical information for
rational decision-making
• Involves
– Knowing how the product is made
– How the product is commonly used, and
– How it should not be used.
• Customers often want to know how competitive products compare on
– price
– construction
– performance
– compatibility with each other
• Companies that produce technical products spend a greater amount of time on product
knowledge
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 Market/Industry Orientation Topics

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• How a particular industry fits into the overall economy
• Knowledge of the industry and the economy
• Economic fluctuations that affect buying behavior and require adaptive selling
techniques
• Customers' buying policies, patterns and preferences in light of competition
• Customers' customers and what satisfies them
• Needs of both wholesalers and retailers

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 Company Orientation Topics
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• Company polices that affect their selling activities
• How to handle customer requests for price adjustments, product modifications,
faster delivery and different credit terms
• Sales manuals that cover product line information and company polices
• A well-prepared sales manual gives a sales representative quick answers to a
customer's questions

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 Time and Territory Management
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• Sales trainees need to learn to manage time and territories
• 80/20 rule applies:
– 20% of the customers account for
– 80% of the business and
– Require a direct proportion of time and attention

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 Legal/Ethical Issues
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• Federal law dictates corporate action or avoidance of action in areas of
marketing, sales and pricing
• Sales personnel need to understand the federal, state and local laws that
constrain their selling activities
• Statements made by salespeople carry both legal and ethical implications
• Lapses in ethical conduct often lead to legal problems

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 Technology
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• Notebook computers
– Presentations
– connecting to company intranet or extranet
– delivering documentation quickly and accurately
• Home offices eliminate the need to go to another office
• Salesperson can be almost totally self-sufficient with
– high-speed network connection
– computer
– printer
– cell phone
• Effective computer use affords sales personnel more face-to-face customer contact time 21
 Specialized Training Topics
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Overcoming price objections
Holding the line on price
Working the trade show
Problem solving

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 Keys for Effective OJT
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1. Teaming - Bringing together people with different skills to address issues.
2. Meetings - Setting aside times when employees at different levels and positions can get
together and share thoughts on various topics.
3. Customer interaction - Including customer feedback as part of the learning process.
4. Mentoring - Providing an informal mechanism for new salespeople to interact and learn
from more experienced ones.
5. Peer-to-peer communication - Creating opportunities for salespeople to interact together
for mutual learning.

Source: The Education Development Center (www.edc.org) 25

 Classroom Training
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• Trainee receives standard briefings in
– product knowledge
– company polices
– customer and market characteristics
– selling skills
• Formal training sessions avoid wasting executive time
• Classroom sessions permit use of audiovisual materials and technical resources
• Interaction between sales trainees builds camaraderie

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 Measuring the Costs and
Benefits
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• Sales training consumes substantial time, budget and support
resources
• Relationship between sales training and revenue is difficult to measure

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 Broad Benefits
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• Improved morale
• Lower turnover
• Higher customer satisfaction
• Management’s commitment to quality and continuous improvement
• Measuring changes in skills, reactions and learning assists both new
and experienced sales personnel

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 Summary
• Sales training is a varied and ongoing activity
that is time-consuming and expensive.
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• Most sales managers feel that sales training is
such an important activity that they require it for

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everybody regardless of their experience.

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• Some common objectives of sales training are to
teach selling skills, increase productivity, improve

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morale, low turnover, improve customer
relations, and improve time and territory
management.
• Industry differences account not only for
variations in length but also for variations in
program content. Company policies, the nature of
selling job, and the types of products and
services offered also contribute to differences in
time spent and on topics covered.
• Product knowledge receives the most attention,31
followed by selling techniques, market/industry
 Summary
• Because of various environmental change, the
content and method of sales training has
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phone and laptop computer. They are as likely to
receive training via Internet and CD-ROM as they

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are by another person.

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• Sales training is very expensive and generally
considered beneficial. Accurate measurement of

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the benefits is difficult. It is hard to isolate the
effect produced solely by sales training from
those that might have been produced by other
factors, such as changes in the economy or the
nature of competition. Sales training provides
managers with the opportunity to convey their
expectations to the sales force. A well-designed
training program shows the sales force how to
sell.
• Sales managers can communicate high 32

performance expectations through training and