SALES FORCE MANAGEMENT

Unit -II

Sales Force Management

It is the specialized type of personal management

It is also referred as account administrators or territory managers .

Qualified and trained job applicant Away from their family .

Activities involved in sales force management

Job jJob

analysis

Selection

Training & Supervision Job specification

Job Evaluation Job

description

Performance Evaluation

Compensation & Motivational Programs

Recruitment

Economics of effective sales force management

Five calls per day If it raised to six calls then the sales can be

increased Instead of recruiting one more sales men the

number of calls can be increased to each sales men.

Fixed expenses and variable expensesFixed expenses(Travelling , sales

equipments ,travelling )Variable expenses (Commission ,

expenses ,training ,motivation )

Rate of sales personnel turnover

Number of groups in sales department is called as Number of separation

The rate of sales turnover measures the quality of sales force management

Rate of sales personnel turnover = Number of separations

*100 Average total sales force

Most sales people leave the company who is having an experience less than 3 years

The age difference should be analyzed in sales force management

Causes of turnover of sales personnel

Caused by actions controllable by the company

(i) Poor recruiting(ii) Improper selection and assignment (iii) Training deficiencies (iv) Inadequate supervision and motivation(v) Breakdown in communications(vi) Unsatisfactory performance ,customer

complaints (vii) Discharged for cause (alcoholism,

dishonest)(viii) Cutbacks in personnel

(ix) Transfer to another department (x) Promotion to a higher positions

Caused by actions not controllable by the company

(i) Retirement(ii) Death(iii) Illness or physical disability(iv) Personal and marital difficulties(v) Dislike for the job – travel , type of work (vi) Military duty(vii) Better position elsewhere

Involvement of sales executives in sales force management

Need for the proper settingThe low and sales force management

Job Analysis

Sales job analysis(i) To whom the person report (ii) What product does the person sell(iii) Where do the person gather

Job Description

Sales job description1. Assemble factual information about the job2. Analyze the information gathered3. Write the job description

Preparation of Sales job specification.1. The duties and responsibilities of job

specification 2. Sales 3. Service4. Territory management5. Sales promotion 6. Executive 7. Goodwill

Recruiting sales personnel

Fielding the sales personnel needed to service the company’s customers and prospects is a key responsibility of sales executives .

Initial sales training is required to bring new sales personnel up to expected productivity levels

Organization for recruiting and selection Varies from company to company Company size , executive’s personalities and

departmental structure all influence the organization used

Centralized Decentralized

Prerecruiting reservoirWhen new personnel will be

needed ,many companies have a Prerecruiting reservoir

1. Volunteer walk ins 2. Center of influence

Source if sales force recruits

Recruiting source evaluationSources within the company1.Company sales personnel(recommendation of Sales persons)2. Company executives(recommendation of the

sales manager, top executives)3. Internal Transfers

Sources outside the company

Direct unsolicited applicationsEmployment agenciesSales people making calls on the companyEmployees of customersSales executives clubSales force of noncompeting companiesSales force of competing companies Educational institutionsOlder person

The Recruiting Effort

Differs company to company Differs in methods and steps Depend on the size and style of the Recruits

Personal Recruiting

College RecruitingRecruiting direct to consumers sales personalRecruiting consultantsIndirect Recruiting (adv in news papers)Recruiting Brochures

Selection

Preliminary interview& pre interview screening

Formal applicationInterviews RejectionReferences & credit checksTestingPhysical Examination Employment offer

Preliminary interview& pre interview screening

Formal applicationObjective scoring of personal history itemsInterviewsWho should do the interviewing?How many interviews?Interviewing the spouse

Interviewing Techniques 1. Patterned Interview(outline with questions)2. Non directive interviews (speak freely his

experience )3. Interaction (stress) interview

References1. Present or former employers2. Former customers3. Reputable citizens (repeatedly applying )4. Mutual acquaintances

Credit Checks Psychological testsValidation of tests 1. Direct Validity2. Inverse validity3. No validity4. Equal validity for two different groups 5. Differential validity for two different groups

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Types of tests1. Tests of ability2. Tests of habitual characteristics3. Interest tests4. Achievement tests