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Sales Management: Shaping Future Sales Leaders

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.9-1Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

Training and Developing the Sales Force

Chapter 9


Learning Objectives

Identify factors that help determine what types of training are needed by sales personnel

Summarize the inputs needed to design and deliver an effective sales training program

Explain why it’s important to assess the effectiveness of a firm’s sales training and what’s involved in the assessment

Distinguish the elements that contribute to effective and ineffective training programs

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.9-3

How Important Is Sales Training?

Trained reps are more knowledgeable about products and services

Understand markets in which they operate and the selling process

Able to better understand customers and deliver better service

Achieve higher sales and incomes Greater job satisfaction because they’re successful


Training Ratings of “Best Manufacturing Companies to Sell For”


Training Ratings of “Best Service Companies to Sell For”

2008 Training Updates: Selling Power’s Best Companies to Sell For

Training ratings

Manufacturing: Microsoft is the only company receiving a score of 17 16’s were received by Hoffmann-

La Roche, Shaw Industries, Tellabs, Xerox, IBM, and Hormel Foods

Service: ABF Freight System, Roadway, IKON Office Solutions–all received a score of 16


Source: “Best Companies to Sell For,” Selling Power, Nov./Dec. 2008, 28(9), 17-20.


The Training Process: 4-Stage Training Cycle


Determine Objectives

Assessment of Training Needs at Different Levels


Identifying Knowledge, Skills, and Abilities (KSAs)

Sources of Training Needs Information

Sources: Based on Erffmeyer, Robert C.; Russ, Randall K. and Joseph F. Hair, Jr. (1991). “Needs Assessment and Evaluation in Sales-Training Programs,” Journal of Personal Selling & Sale Management (11) 1, pp. 18–30; and Honeycutt, Earl D., Jr. (1996). “Conducting a Sales Training Audit,” Industrial Marketing Management 25, pp. 105–113).


Determine Who Needs Training

Training needs may vary depending upon rep’s experience level and the needs of the markets

Training needs may be identified from: Quantifiable performance appraisal data Customer satisfaction or CRM data Training needs surveys taken by sales managers and

reps

After identifying needs, create training and development plan for reps Plan should include courses rep should take at career

milestones, training from outside vendors, job rotations exposure, etc.

S o u th A tla n tic O c e a n S o u th P a c if ic O c e a n

N o rth P a c if ic O c e a n

N o rth A tla n tic O c e a n

In d ia n O c e a n

A rc tic O c e a n A rc tic O c e a n A rc tic O c e a n

N o rth P a c if ic O c e a n

U n ite d S ta te s o f A m e ric a

U .S .A .

C a n a d a

M e x ic o

B ra z il

U . S . A .

F re n c h P o ly n e s ia (F r.)

A rg e n tin a U ru g u a y

P a ra g u a y

C h ile

B o liv ia

P e ru

E c u a d o r

C o lo m b ia

Ve n e z u e la F re n c h G u ia n a (F r.)

S u rin a m e G u y a n a

T h e B a h am a s

C u b a D o m in ica n R e p u b lic

P a n a m a C o s ta R ic a

N ica ra g u a

H o n d u ra s G u a te m a la

E l S a lv a d o r

Trin id a d a n d To b ag o

Ja m . H a iti P u e rto R ic o (U S )

G re e n la n d (D e n .)

Ic e la n d

M a d a g a sc a r

S o u th A fr ic a L e so th o

S w a z ila n d

M o z a m b iq u e

Ta n z a n ia

B o tsw a n a N a m ib ia Z im b a b w e

A n g o la

Z a ire

Z a m b ia

M a la w i

B u ru n d i

K e n y a R w a n d a

U g a n d a

C o n g o

G a b o n

S o m a lia

E th io p ia

S u d a n

D jib o u ti

B e liz e

E g y p t L ib y a

C h a d

N ig e r

A lg e r ia

M a li

Tu n is ia

N ig e ria

C a m e ro o n C . A . R .

B e n in

To g o G h an a

B u rk in a F a so B a rb a d o s

D o m in ica

C ô te D ’Iv o ire

L ib e r ia

S ie rra L e o n e

G u in e a G u in e a -B iss a u

S e n e g a l T h e G a m b ia

M a u rita n ia

W este rn S ah ara (M o r.)

M o ro c c o

F in la n d N o rw a y

S w e d e n E sto n ia L a tv ia

L ith u a n ia

P o lan d

R o m a n ia

B u lg a r ia

T u rk e y G re e c e

C z ec h .

H u n g .

I ta ly A lb a n ia

P o rtu g a l

F ra n c e

S p a in

A u s . S w itz .

U n ite d K in g d o m

Ire la n d

D e n .

G e rm an y N e th .

B e l.

C y p .

Ye m e n

O m a n S a u d i A ra b ia U . A . E .

Q a ta r

I ra n I ra q

S y ria

Jo rd a n

Isra e l L eb . C h in a

M o n g o lia

R u ssia

A fg h a n is ta n

P a k is tan

In d ia

S ri L an k a M a ld iv e s

N e p a l B h u .

M y a n m a r (B u rm a ) B a n g .

A n d a m a n Is la n d s (In d ia )

T h a ila n d

In d o n e s ia

M a la y s ia

B ru n e i

P h ilip p in e s

Taiw a n

C a m b o d ia

V ie tn a m

L ao s

A u stra lia

P a p u a N ew G u in e a

N e w Z ea la n d

F iji

N e w C a led o n ia

S o lo m o n Is la n d s

K ir ib a ti

M a rsh a ll Is lan d s F e d e ra te d S ta te s o f M ic ro n es ia

G u am (U S A )

Ja p a n

N . K o re a

S . K o rea

K u ril Is la n d s

W ra n g e l Is la n d

A leu tian Is lan d s (U S A )

N e w S ib e r ia n Is la n d s

S e v e rn a y a Z e m ly a

N o v a y a Z e m ly a

F ra n z Jo se f L a n d S v a lb a rd (N o r.)

Ja n M a y en (N o r.) B a n k s Is lan d

Vic to r ia Is la n d B a ff in Is la n d

E lle sm e re Is lan d

Is lan d o f N e w fo u n d lan d

A n ta rc tic a

Î le s C ro ze t (F ra n ce )

Tas m an ia

S o u th G e o rg ia (a d m . b y U K , c la im e d b y A rg e n tin a )

F a lk la n d Is la n d s (Is la s M a lv in a s) (a d m . b y U K , c la im e d b y A rg e n tin a )

K u w a it C a n ary Is la n d s (S p .)

S a o To m e & P rin c ip e

S in g a p o re E q . G u in e a

F a ro e Is . (D en .)

K a z a k h s ta n

B e la ru s

U k ra in e

M o ld o v a

G e o rg ia A rm e n ia A z e rb a ijan

Tu rk m e n is ta n

U z b e k is ta n K y rg y z sta n

Yu g o .

M a c.

S lo v. C ro .

B o s .

S lo v a k .

E ritre a

Taj ik is ta n

H aw a iian Is lan d s

G a lap ag o s Is la n d s (E cu a d o r)

M a u ritiu s

S e y c h e lle s

6 0 °


Global Sales Management: Challenges of Training a Global Sales Force

Tailor sales training just as you tailor product and promotions to each country Think globally, act locally

What’s important? Solidifying relationship between buyer and seller Social interaction Job titles and level of interaction

Global training missteps Projector / power outage in India US VP critical of Taiwanese partner Local and outside reps treated unequally in Cairo

Sources: Ramusson, Erika (1999). “A Whole New World of Training,” Sales and Marketing Management (151) October 10: 80; Rivera, Ray J., and Andrew Paradise (2006). 2006 State of the Industry in Leading Enterprises: ASTD’s Annual Review of Trends in Workplace Learning and Performance . Alexandria, VA: The American Society for Training and Development; and Sergio, Roman, and Salvador Ruiz (2003). “A Comparative Analysis of Sales Training in Europe: Implications for International Sales Negotiations,” International Marketing Review (20): 3, 304–328. 1. Honeycutt, Earl D., John B. Ford, and Antonis C. Simintiras (2003). Sales Management: A Global Perspective (2003). London: Routledge. 2. Honeycutt, Earl D., John B. Ford, and Lew Kurtzman (1996). “Potential Problems and Solutions When Hiring and Training a Worldwide Sales Team,” Journal of Business and Industrial Marketing 11:1 (Winter), 42–53.


Self-Assessment Library

Go to http://www.prenhall.com/sal/ Access code came with your book

Click the following Assessments

II. Working With OthersA. Communication Styles

1. What’s My Face-to-Face Communication Style?

Discussion Question

Describe the concept of a KSA and how it can be used in sales training

What are some KSAs you might expect from a new salesperson who has been in their job for 6 months?


What Content Is Needed?


Topics Commonly Covered

Content Will Vary Based on Target Group

Programs for new hires

Company orientation

Product and market information

Selling processes

Technology skills

Programs for more experienced reps

Advanced sales skills

Communication and presentation skills

Technology skills



Ethics in Sales Management: Can You Teach Sales Ethics?

Ethics training should involve a review of company’s code of conduct

Focus on specific business ethics dilemmas Selling out-of-date products Sending gifts to customers, value and timing of gift giving Presenting false or misleading info and/or selling unproven

solutions Exaggerating extent of support your firm can offer customers Filing inaccurate expense reports

Can it pass the 60 Minutes test?

Sources: Ferrell, O. C., J. Fraedrich, and Linda Ferrell (2002). Business Ethics: Ethical Decision-making and Cases. Boston: Houghton Mifflin Company, p. 444; Gilbert, Jennifer (2003). “A Matter of Trust,” Sales and Marketing Management (155) 3, 30–36; and Weber, John A. (2007). “Business Ethics Training: Insights from Learning Theory,” Journal of Business Ethics (70) 61–85.


On-the-Job Training

Exposes new reps to practices, products, and customers immediately New hire will learn to model the behavior of the more

experienced rep

Refresher courses for more experienced reps cover advanced sales skills How to work with larger or more complicated customers

or advanced products and services


Integrating Technology

Keys to successful sales technology training include

Ensuring that reps see benefits of technology so they will accept and use it

Thoroughly training reps to use technology both in the field and out

Providing adequate tech support and follow-up training


Professional Development Activities

Professional speaking

Account management

Team selling

Negotiating contracts

Category management

Other advanced training conducted as part of an industry-wide seminar

Summer institutes or graduate courses offered by colleges, universities, and professional associations


Categories of Intellectual Behavior Important for Learning

Cognitive Behaviors

Affective Behaviors

Psychomotor Behaviors


Bloom’s Categories for Developing Effective Training Objectives


Staffing the Training Program: Internal vs. External

Generally, internal trainer will have more credibility Exception: new technology, training offered by

developer

Dedicated sales training team within the firm?

Large number of people needing immediate training?

Outside technology partner to facilitate delivery?


Staffing the Training Program: Time

How frequently is the training needed? Recurring program offered at regular intervals, it may

warrant in-house development

Is the program needed on a regular basis or is it only needed once?

Can it be rolled out gradually or is it needed immediately?

How involved do sales managers need to be?


Staffing the Training Program: Costs

How does outsourced training compare price-wise to internal training?

If internal, will there be extra costs for researching content or creating materials

Additional staffing costs required?

Travel to training site?


Selecting Delivery Method

Web/ConferenceCalls

Presenter delivers info remotely to trainees’ individual computers

On-Demand(Self-Paced)

Access similar information online when and where needed

Instructor-Led Face-to-face training

Webcast /Webinar

One-way flow of communication Two-way flow of communication including feedback

Podcasting Delivering info to rep’s iPod™ or similar device

Wikis Web sites individual reps can put up on short notice

and post to


Frequency of Training Methods Used

Discussion Question

Question: Which sales training format is preferred? Blended (in-person and online) or in-person?

Answer: Blended

Even though the combination in-person and online course may actually require more time commitment, research indicates sales personnel prefer it because they can control when they receive it and the pace they move through the material


Source: Sales Performance International


Role-Playing and Avatars

Role-playing exercises Requires rep to present information to a “client” (usually a

sales trainer or another sales trainee) Overcome sales challenges in real time

Avatars: computer representations of humans Provides consistent experience

with a coach who does not tire Available any time of the day

or night Can be used to train reps

individually or in groups Can be repeated until mastery

is achieved


Scheduling the Training

Location Travel, lodging costs Lost selling time

Psychological “readiness” of the trainees Timing of the training in the sales cycle Time to complete pretraining assignments


Facilitate Learning Transfer

Training and field conditions similar1

Provide opportunities to practice2

Variety of situations to apply new material3

Identify important features of the task4

Opportunity to practice in the field5


Assessing the Results

Only 28% of sales trainers have a definitive method for measuring the value of their sales training

Reaction

Learning

Behaviors

Results


Learning

Measuring the amount of information participants mastered during the program

Doesn’t necessarily reflect if material can be applied productively back in the field

Reaction

Trainee feedback, training staff comments, supervisory feedback

Most frequently used method Don’t show if anything was really learned and

applied

Value to Individual


Value to Organization

Behaviors

Identifies to what degree trainees applied training principles and techniques to their jobs (learning transfer)

Research shows this level of evaluation has only a few shortcomings and is particularly useful

Results

Whether or not an organization achieved objectives it sought by conducting training

More sales, fewer complaints, higher svc rating? Difficult to tell if results are because of training or

other factors Utility analysis: looking at economic impact the

training had by examining cost-benefit trade-offs of training program

Discussion Question

What are some reasons that organizations have a difficult time evaluating the effectiveness of training?

Which measures do you feel are the best to use?



Completing the Sales Training Cycle

Compare training results with initial objectives

Objectives met, program is considered a success Often program will go forward with only minor

modifications and updates

Objectives not met Majority did not systematically set specific objectives for

their training programs Without objectives to guide development of training,

properly implementing and evaluating will be difficult

Award-Winning Sales Training Programs

Companies that have received awards for their training programs share several characteristics; the programs Include a front-end analysis of the performance, skills,

and knowledge gaps of a firm’s employees using both internal and external metrics, such as customer satisfaction

Conduct analyses, surveys, and interviews of clients, customers, internal business leaders, and employees to identify the learning needs and desired outcomes at the corporate, business-unit, and individual levels

Link a corporation’s strategic objectives to the individual objectives of its employees


Award-Winning Sales Training Programs (continued)

Incorporate learning objectives in employee performance evaluations and promotional decisions

Use career management systems to align the competencies of the firm’s employees with its functions, track the degree of employee learning, support performance reviews, and enhance productivity

Hold managers accountable for complying with the individual development plans of their employees

Use corporate universities to provide a variety of learning models in creative and dedicated learning environments


Best Practices for Sales Trainers

Needs Assessment Is the training tied to the organization’s mission and vision? Can you understand the true nature of the problem/issue at hand, and

what is needed to correct the problem? Is training the appropriate solution, or can the problem be corrected by

other solutions, such as changing the firm’s procedures, developing job aids, or modifying jobs?

Have you determined the learning objectives that will result in the desired changes?

Have you identified the knowledge and skills that will produce the desired new behaviors?

Can you determine the cost/budget constraints and develop suggested solutions within these constraints?

Can you identify the learning styles and needs of participants and incorporate them into the program’s design?


Best Practices for Sales Trainers (continued)

Content Development

Does the program incorporate adult learning principles into all aspects of the training?

Does the content emphasize the essentials, not every possible detail?

Does the program provide participants with the materials they need without overwhelming them?



Technological Proficiency

Is the instructor up to date in the use of most current technology?

Is the instructor able to utilize the technology that best fits the learning situation, rather than using technology for the sake of appearances?

Can the instructor bring the course material “alive” via an effective presentation regardless of the technology used?



Personal Professional Development

Does the instructor have an interest in participants’ personal growth and learning?

Evaluation

Does the instructor seek feedback to improve the program?

Does the program include an evaluation process to capture information on the training’s effectiveness, learning retention by participants, and the use of learning related to the firm’s day-to-day business practices?



Role Play: Home Fire Lights (HFL)

Home improvement company offering upscale outdoor living spaces

Sales training mgr took hands on approach Creative sales lab where trainees could work with new products

and design patio layouts “Selling involves relationships, and the best way to train for that

is in person, period!” All new hires had 2 weeks of training at HQ Follow-up training 6 months later Yearly new product update course

HFL HQ is 110 miles from nearest metro area

Sales training mgr resigned, reviewing plan for future


Role Play (continued): Assignment

Break into groups of 2 or 3 1 person is assistant sales trainer, has worked closely with

sales training mgr for 3 yrs, believes training program is one of best in country

1 person is a rep chosen by all sales mgrs % of training costs expensed to each sales mgr’s budget Many believe time out of field is cutting sales and profitability

Outline the direction HFL’s new sales training program should take Weigh pros and cons of different methods available Outline suggestions for new program Share results with class If you have 3 people, 2 need to convince president of approach


Sales Manager’s Workshop: Promedia

You are district sales mgr for Promedia One major responsibility is to make sure all reps are trained and able to

sell complete portfolio of software

Your boss emails concern about lack of field support for Financial Project Tracking software

Reps fired up about software at first, received training Newsletter for about 3 months, nothing for 18 months

Harder to sell than anticipated Complexity, high cost, competition

Reps would appreciate additional training, but they don’t want the training program – they want to know how to overcome specific issues related to selling the product

Conduct opportunity analysis to identify where in the sales cycle reps need extra training


Caselet 9.1: Justifying Cost of Sales Training

Chippewa Mowers mfgs and sells reel mowers

Expanding markets and customer base

Owner believes reps should be in front of customer, not in front of computer

Reps need to keep up with competition, produce nice presentations and proposals

Reps have difficulty with new CRM software

Owner: “Joe, show me what I got for my sales training investment”


Caselet 9.1 (continued): Questions

1. How should Joe evaluate whether or not his sales training was effective?

2. What approaches should Joe consider when evaluating the effectiveness of his training programs? Discuss the merits of each.

3. What ethical considerations are involved with this decision?


Caselet 9.2: Transcontinental Imaging Company (TIC)

TIC has 1500 reps worldwide

Regional rep Bob feels training isn’t meeting his needs

Training is via Internet, lectures, infrequent seminars Professional Development—Building sales skills Work Group Training—Understanding the business unit

you work in Systems and Software Training—Understanding the

tools to perform your job Compliance Training—Focusing on ethics


Caselet 9.2 (continued): Transcontinental Imaging Company (TIC)

Bob has had 3 sales managers in past year, feels neglected Each manager handles 40-50 reps

Has trouble penetrating new accounts Pay is based on commission

Requested training during reviews, but nothing’s happened Called corporate sales training supervisor, Claire

Boston, who told him to read some books and work with his direct supervisor

Bob decides to resign


Caselet 9.2 (continued): Questions

1. What potential areas of weakness can you identify in TIC’s approach to sales training?

2. Do you believe that TIC’s sales training is appropriate for its type of business and the number of salespeople it has?

3. Did Bob Sullivan do the right thing in resigning? What other steps could he have taken to improve his current situation?

4. In this case, who should take responsibility for a salesperson who needs help to perform at a higher level? What do you think of Claire Boston’s advice to Bob? What would you have said?

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