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SALES PERSON-SELECTIONPROCESS,COMPENSATION PLAN,TRAINING AND DEVELOPMENT
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Slection ProcessJo b A n a ly sis
M a n p o w er Pla n n in g
Jo b D e scrip tio n
Jo b S p e cifica tio n
R e cru itm e n t
S cre e n in g
S e le ctio n
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Job Analysis
It specifies the task involved inparticular job and factors which
affect job performanceTypeObjective of jobReporting relationshipRoleEnvironmentCompany rules and regulation
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Job Description
It gives the detail description of mainduties, task, responsibilities, nature
of position and principalaccountabilities
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Manpower Planning
The main aim of manpower planning isto determine existing and future
.staffing levels It has both
quantitative dimension and.qualitative requirements
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Job Specification
The main purpose of job specificationis to fit the most appropriate to the
.required job It is the purpose of job
specification to list the desirablequalities and attributes that a
.person should have to do the job
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ome o echaracteristics needed for
Sales personConfidence
Intelligence
Product knowledge
Competitors
Market knowledge
Customer knowledge
Communication skills
Company
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Recruitment
Internal applicants
Recommended by existing employees
Advertisements
Employment agencies
Educational institutions
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Screening
Pool of candidates through evaluation.
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Selection
Application forms
References
Interviews
Physical or Medical
Psychometric and other tests
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CompensatingSalespeople
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n Acceptable ratio of costs to sales force outputAcceptable ratio of costs to sales force output, ,in volume profit or other objectives, ,in volume profit or other objectives
n Encourage activities consistent with firm sEncourage activities consistent with firm s, ,overall marketing and sales force objectives, ,overall marketing and sales force objectives
and strategiesand strategiesn ,Attract and retain competent salespeople,Attract and retain competent salespeople
-thereby enhancing long term customer-thereby enhancing long term customerrelationshipsrelationships
n Be clear and be flexible enough to allowBe clear and be flexible enough to allowadjustments that facilitate administrationadjustments that facilitate administration
Goals of a Sales ForceGoals of a Sales ForceReward SystemReward System
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Compensating Salespeople
ComponentsComponents NeedsNeedsSALARY Motivate effort on non-selling activities
Adjust for differences in territory potentialReward experience and competence
COMMISSIONS Motivate a high level of selling effortEncourage sales successINCENTIVE
PAYMENTS
Direct effort toward strategic objectivesProvide additional rewards for top (Bonus) performersEncourage sales success
SALESCONTESTS
Stimulate additional effort targeted at specific short-termobjectives
PERSONALBENEFITS
Satisfy salespeoples security needsMatch competitive offers
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Fairness
Flexibility
Leads to achievement ofcompany objectives
Act as an incentive &
motivation Easy to understand
Easy to administer
CHARACTERISTICS OFCOMPENSATION PLAN
t
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ypes o ompensat onPlans
1.Financial Benefits
2.Non Financial Benefits
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Financial Benefits
Straight salary
Straight commission
Combination( Salary plus
bonus & Salary pluscommission)
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Compensating SalespeopleCompensating Salespeople
Compensation PlanCompensation Plan AdvantageAdvantage DisadvantageDisadvantage
Salary Reduced turnoverSimpleEasy to administerGood when difficult todetermine who made the
saleGood when service isrequiredPromotes long-termgoalsGood during drastic
business swingsEasier to transfersalespeople
No motivationFavors unproductivesales peopleHigh costs when salesare low
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Compensating SalespeopleCompensating Salespeople
Compensation PlanCompensation Plan AdvantageAdvantage DisadvantageDisadvantage
Commissions MotivationalRelates directly to
performanceUnlimited income
(assuming no cap)Good for savingmoney onunproductivesalespeople
Perceived fair
No loyaltyLittle securityShort range viewHigh turnover
Management hasless control
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Advantages of Frequent vs.Infrequent Incentive Payments
Frequent Payment AdvantagesFrequent Payment Advantages(Monthly/Quarterly)(Monthly/Quarterly)
Infrequent Payment AdvantagesInfrequent Payment Advantages(Semiannually/Annually)(Semiannually/Annually)
Salespeople receive frequent feedbackand rewards when selling cycle is short.Rewards are close in time proximity to the
successes that provided the reward.Strong link between successful behaviorand reward motivation increased.
Payments at bonus time are larger andhave greater impact.Performance is more stable because
short-term sales variations are smoothedover the longer time horizon.Incentives are not paid till end of year smoother cash flow.
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NONFINANCIALCOMPENSATION
Opportunity for promotionSense of accomplishment
Opportunity for personal growthRecognitionJob securitySales expenses
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Selecting Benefits
Salespeople expect cars
Insurance and travel are very
common Some plans offer a choice of
alternatives
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Dimensions of SalespersonPerformance Evaluation
BehavioralBehavioral
ProfessionalDevelopment
ProfessionalDevelopment
Resultsesults
ProfitabilityProfitability
SalespersonPerformanceSalespersonPerformance
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SALES FORCE COMPETENCIES
Sales Person: Training& Development Teachers openTeachers open
the door.the door.
You enterYou enter
by yourself.by yourself.
Chinese ProverbChinese Proverb
S S G OC SS
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SALES TRAINING PROCESS
-Follow Up Training
Planning forPlanning for
SalesSalesTrainingTraining
Developing theDeveloping theTraining ProgramTraining Program
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OBJECTIVES
Increase sales or profits
Create positive attitudes/improve morale
Improved customer relations
Reduce role conflict and ambiguity
(turnover)
Improve efficiencies (time and territory)
Introduce new products, markets, or
programs
hy Train Salespeople?hy Train Salespeople?
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Judgment of: Top
Management
SalesManagement Training
Department
Interview With: Salespeople
Customers
%8%8%3%3
%0%0
%9%9%5%5
*ETERMINING TRAINING NEEDS*ETERMINING TRAINING NEEDS
* .Percent of firms indicating they often use these assessments to determine training needs* .Percent of firms indicating they often use these assessments to determine training needs
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Performance Measures: Sales Volume
Customer Service
Other Measures: Observation of
Salespeople Attitude Surveys
%6%6%1%1
%8%8%8%8
*ETERMINING TRAINING NEEDS*ETERMINING TRAINING NEEDS
* .Percent of firms indicating they often use these assessments to determine training needs* .Percent of firms indicating they often use these assessments to determine training needs
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1.Interviewed key members or management tofind out what changes are needed inperformance of the sales force.
2.Sent an anonymous questionnaire to
customers and prospects asking: What do you expect of a salesperson in this industry?
How do salespeople disappoint you?
Which company in this industry does the best selling job?
In what ways are its salespersons better?
3.Sent a confidential questionnaire to eachsalesperson asking: What information do most of our salespersons need?
What information do you want to learn better? What skills do most of our sales ersons need to im rove?
TEPS IN PERFORMING A TRAINING ANALYSISTEPS IN PERFORMING A TRAINING ANALYSIS
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4.Did field audits (making sales calls)with 20% of the sales force?
5.Interviewed sales supervisors.
6.Discussed and agreed on trainingpriorities with management.
7.Determined trainable topics frominformation gathered in Steps 1-5.
TEPS IN PERFORMING ATEPS IN PERFORMING ARAINING ANALYSISRAINING ANALYSIS
A C t d T i i P i d
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Average Cost and Training Periodfor Sales Trainees
ConsumeronsumerIndustrialndustrial
Serviceervice
ConsumeronsumerIndustriandustria
lServiceervice
,5 3545 354,9 8939 893
,9 0609 060
.40 Months40 Months.8080Monthsonths.8080Monthsonths
Average Cost of Training for Veteran
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Average Cost of Training for VeteranSalespeople
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
- - -Under $5 $5 $25 $25 $100 $100 $250 Over $250 Million Million Million Million Million
ompany Sizeompany Size
,3 752 ,3 947 ,3 902
,5 365,4 824
ALL ATIN TRAININ
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ALL ATIN TRAININTIME
AverageProduct knowledge 35%
Market/Industry Information 15Company Orientation 10Selling Techniques 30Other topics 10
Total 100%
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80% of a new field salespersons training
should be focused on developing customer
profiles, digging out account survey data,
and building working relationshipsin thefield.
15% of time can then be invested in
learningabout how your product or service
is used by existing customers. The field is
the place to gain productknowledge, not
from an engineer or home office instructor.
- --T R A IN IN GR A IN IN G
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Only 5% of a new field salespersons time,
then, should be spent on developing selling
skills.
Again, the place to do this is face-to-face withreal customers: setting and testing real precall objectives
asking for real opportunities to do business.
Understanding what has to be done to build
selling skills can be mastered in 15 minutes.
Doing it takes years of actual, not
simulated practice.
- --T R A IN IN GR A IN IN G
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e d ia U se d in S a le s Tra in in ge d ia U se d in S a le s Tra in in g%7%7lassroom withlassroom withInstructornstructor
/orkbooks Manualsorkbooks Manuals
ole Playsole Plays
-D ROMD ROM
AudiocassettesudiocassettesInternetnternet
%4%4
%4%4
%2%2
%9%9
%4%4
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TRAINING
Level ofLevel ofEvaluation:Evaluation:
What toWhat toMeasure:Measure:
How toHow toMeasure:Measure:
When toWhen toMeasure:Measure:
Reactions:Reactions:
Are traineesAre traineessatisfied?satisfied?
PerceptionsPerceptionsof trainingof trainingCourseCourseevaluationevaluationInstructorInstructorevaluationevaluation
SurveySurveyInterviewInterview
At theAt thecompletion ofcompletion oftrainingtraining
Learning:Learning:Did the trainingDid the traininghave its intendedhave its intendedeffect?effect?
Knowledge ofKnowledge ofcourse contentcourse content
ExamsExamsSelf-assessmentSelf-assessmentInterviewInterview
At theAt thecompletion ofcompletion oftraining and attraining and atpoints in thepoints in thefuturefuture
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Level ofLevel ofEvaluation:Evaluation:
What toWhat toMeasure:Measure:
How toHow toMeasure:Measure:
When toWhen toMeasure:Measure:
Behavior:Behavior:
Are theAre thesalespeople onsalespeople onthe job usingthe job usingtheir knowledgetheir knowledgeand skills on theand skills on thejob?job?
SkillsSkills
Job performanceJob performanceAbsenteeismAbsenteeismTurnoverTurnover
PerformancePerformance
indicatorsindicatorsObservationObservationManagerialManagerialassessmentassessmentSelf-assessmentSelf-assessment
Over the firstOver the first
year afteryear aftertrainingtraining
TRAINING
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Level ofLevel ofEvaluation:Evaluation:
What toWhat toMeasure:Measure:
How toHow toMeasure:Measure:
When toWhen toMeasure:Measure:
Results:Results:
What effectWhat effectdoes trainingdoes traininghave on thehave on thecompany?company?
Job satisfactionJob satisfaction
CustomerCustomersatisfactionsatisfactionSalesSalesProfitsProfitsROIROI
SurveySurvey
ExperimentsExperimentsManagerialManagerialassessmentassessment
A year after theA year after the
trainingtraining
TRAINING
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Reactions: Trainees
Supervisors
Learning: Performance Pre-vs. Post-
Training
Behaviors: Supervisors
Appraisal
CustomerAppraisal
Results: Bottom Line
* ercent of firms indicating they often use these evaluations to measure trainingercent of firms indicating they often use these evaluations to measure training.esults.esults
*VALUATING TRAINING EFFECTIVENESS*VALUATING TRAINING EFFECTIVENESS
%6%6%8%8
%3%3%1%1
%4%4%1%1
%0%0
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ales Training Evaluationales Training EvaluationPracticesracticesMeasureeasure riteria Typeriteria Type mportancemportanceRankank
Trainee FeedbackTrainee Feedback ReactionReaction 11
Supervisory AppraisalSupervisory Appraisal BehaviorBehavior 22
-Self Appraisal-Self Appraisal BehaviorBehavior 33
-Bottom Line Measures-Bottom Line Measures ResultsResults 44
Customer AppraisalCustomer Appraisal BehaviorBehavior 55
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Treat all employees as potential careeremployees.
Require regular re-training.
Spend time and money generously.
Salespeople and sales managers musttake the lead in developing what goes
into the program. In times of crisis, increase, rather than
decrease, the training program.
UILDING A SALES TRAININGUILDING A SALES TRAININGPROGRAMROGRAM
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