Module 2: (9hours)

Management of Sales Territory & Sales Quota: Sales territory, meaning, size,
designing, sales quota, procedure for sales quota. Types of sales quota, Methods of setting
quota. Recruitment and selection of sales force, Training of sales force.

MODULE-02
Management of Sales Territory & Sales Quota

SALES TERRITORY:

A sales territory is defined as a group of present and potential customers assigned to an

individual salesperson, a group of salesperson, a branch, a dealer, a distributor, or
a marketing organization at a given period of time. Territories are defined on the basis
of geographical boundaries in many organizations.

Sales management is defined as a group of present and potential customers assigned to an

individual sales person, a group of sales person, a branch, a dealer, a distributor or a
marketing organization at a given period of time.

A geographical area consisting of group of present and potential customers.

- Assigned to
• an individual salesperson,
• a group of salesperson,
• a branch,
• a dealer,
• a distributor or,
• a marketing organization.
- At a given period of time.
- Basic unit of sales planning and control.

SIZE OF SALES TERRITORY

There are various factors influence the size of a sales territory. Density of the population,
population spread within the territory, nature and demand of the product, mode of physical
distribution, the selling process and transport and communication facilities.
If the product is a consumer durable with a longer shelf life, the company may prefer to
have a larger territory compared to smaller territories for the perishable commodities.
Territories can be established on the basis of the nature of the product, namely consumer,
industrial and durable and non-durable.

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 REASONS FOR ESTABLISHING TERRITORIES
The main motive of establishing sales territories is to simplify the planning and controlling
of the selling function.
Following are some reasons for establishing sales territories −
1. To obtain thorough coverage of the market
According to the division of sales territory, the activities are assigned to salesperson.
This helps in market coverage, rather than the salesperson selling the product
according to his ambition. It helps the sales manager to monitor and take updates
accordingly from different sales managers.
2. To establish the salesperson’s job and responsibilities
It’s very important to establish jobs and responsibilities for salespersons. Sales
territories help in doing so because the task is assigned to the salesperson and he is
responsible and answerable for the same.
Once the task is assigned, frequent checks are done to monitor the calls; it helps to
determine the work of each salesperson. If the sales manager finds the workload for a
particular person is more, the work is divided and reassigned equally. This creates
motivation and interest to work.
3. To evaluate sales performance
In an organization, the sales territory is compared from the previous years to current to
find out the difference, i.e., the increase or decrease in sales volumes. It helps to work
on the difference accordingly. This is done with the help of sales territory as the
activities are assigned in a proper manner and gathering of data and evaluation
becomes easy.
The comparison to evaluate sales performance is done on the following basis −
 Individual to District
 District to Regional
 Regional to Entire Sales Force
By this comparison, we can evaluate and determine where the sales force is
contributing for high volume of sales.
4. To improve customer relations
As we know, salespersons have to spend most of their time on road to sell the products
but if the sales territory is designed in a proper way, the salesperson can spend more
time with the customers (present and potential). This helps in building rapport and
understanding the needs better.
Sales of a company can increase when a customer receives regular calls and the
salesman has to visit the customers on the basis of calls. The salesman and the
customer get time to understand each other and resolve their issues regarding demand
and supply. This also helps in increasing the brand value of the company.
5. To reduce sales expenses
Once the geographical areas are decided, the company gets a proper picture as to the
areas that can be assigned to the salespersons. He/she needs to cover that area so that
there is no duplication of work by sending two salespersons in the same area.
The selling cost of the company gets reduced and leads to increase in profits. There is
also an advantage to the salesperson for few travels and overnight trips.

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 6. To improve control of the sales force
The performance of a salesperson can be measured on the basis of calls made to
customers, the routes taken and the schedules. In this case, the salesperson cannot deny
if the results are not positive.
The salesperson has to work on the same routes, schedule and everything is
predetermined. This results in better control of the sales force.
7. To coordinate selling with other marketing functions
If the sales territory is designed properly, it helps the management to perform other
marketing functions as well. It is easy to perform an analysis on the basis territory as
compared to the entire market.
The research done by the management on marketing on territory basis can be used to
set sales quotas, expenses and budgets. The results can be satisfactory if the
salesperson helps in advertising, distribution and promotion when the work is assigned
on territory basis instead of the market as a whole.
ADAVANTGES OF SALES TERRITORIES:
1. Better market coverage:
2. Effective utilization of sales force
3. Efficient distribution of workload among sales people
4. Enhances employees morale
5. Evaluate the performance of salespeople
6. Control over the direct and indirect cost of the sales function
FACTORS AFFECTING SALES TERRITORY:
The allocation or division of sales territories among the salesmen is based upon several
considerations or factors, such as the nature of the product, the potential demand for the
product in the area, the extent of competition present in the area, transport and
communication facilities available, channels of distribution, types of customers, the
capacity of the salesmen, the types of customer services to be provided, the sales expenses
ratio, etc. Each of these factors are explained in detail.
1. Nature of the product
First, the nature of the product is of utmost importance. There are certain consumer items
which have constant demand in the market. They are high turnover goods and they need
little selling efforts. Thus, for such products a large territory can be assigned. For
luxurious, bulky and durable articles, which need concentrated selling efforts small sales
territory can be assigned.
2. Demand for product
While allocating sales territories to salesmen, the demand for a particular product should
also be taken into account. If the demand for a particular product is constant and frequent,
then the whole sales filed can be divided into small sales territories. However, in case of
low demand and infrequent purchase of articles, the size of the sales territory should be
large.
3. Transport facilities
The marketing of a particular product depends to a large extent on the availability of
transport facilities. If the transport facilities like road, railway and air links etc., are
satisfactory, then large sales territories can be allotted to salesmen. However, areas having

Prof. Manjunatha S Department of MBA, SVIT

 poor transport facilities should be divided into very small sales territories. If the company
provides vehicles such as a car or motor cycle for the salesmen, then larger sales territories
can be assigned.
4. Competition and Frequency of Contact
Competition cuts the size of the territories and increases the frequency of contact. In other
words, the salesman has to meet dealers and customers very frequently in highly
competitive areas. On the other hand, limited competition or near monopoly
situation lengthens the frequency of contacts between the salesmen and the
dealer/customer. In such situations, the salesmen can be assigned larger sales territories.
5. Population
The density of population in a particular area determines the size of the territories. In other
words, if particular area of a territory is thickly populated, there arises the need to divide
the sales field into small sales territories. On the other hand, if the area is thinly populated,
then larger sales territories can be allocated to salesmen.
6. Distribution System
Very often the distribution system of a particular organization determines the size of its
sales territories. In case the company sells through middlemen like wholesalers, dealers,
retailers etc., larger sales territories can be allocated to salesmen. On the other hand, if the
product is sold directly to consumers or very few middlemen are used, then small sales
territories can be assigned to salesmen.
7. Advertising and Sales Promotion Activities
Companies which have widespread advertising and other sales promotion activities, can
assign small sales territories to each salesmen in view of the demand for the product
created by advertisements. This enables them to sell extensively in territories allotted. On
the other hand, low advertised products need large sales territories for each salesman.
8. Ability and Experience of Salesman
The size of the sales territory also depends on the ability and experience of the sales force.
Experienced and talented salesmen are able to sell more and, therefore, they can easily be
allotted large sales territories. New and inexperienced salesmen are usually allocated small
sales territories as their ability to sell is limited. A salesman is expected to produce
maximum sales turnover from his area with the minimum amount of time and effort. The
commonly used division are states, districts, cities and trading areas.
The allocation of sales territories is often followed by the planning of the route which a
salesman should follow within his sales territory. The planning of the route involves the
determination of places to be visited (including exploration of new markets), the number
of customers to be contacted and the number of calls to be made every day by the
salesman
Disadvantages of sales territory:
1. May not prove good in regions where personal relationship is required rather than
professional approach.
2. Organizations with vast geographic area and large customer distribution, with a
lower density in any specific block, firms using telemarketing and internet marketing as
tools, do not plan territories on the basis of geographic division.
3. Small firms, particularly firms with single salesperson do not establish sales territory.

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 4. Highly sophisticated and technically complex products are sold through sales teams
systematic effort.
5. Organizations sell products like insurance, fixed deposits and other investment products
through personal acquaintances of sales people.
6. Sales people may be more motivated if they are not restricted.
7. Long term and new product forecasting are not possible.

DESIGNING THE SALES TERRITORY(7/10 marks imp)

The buildup method consists of designing sales territories by assessing the

attractiveness of current and prospective customers. In this method, current and
prospective customers are identified and their sales requirements analyzed individually.
1. Select the basic geographic control units:
 The starting point in territorial planning is the selection of a basic
geographical control unit.
 The most commonly used control units are districts, pin code numbers,
trading areas, cities, and states. Sales territories are put together as
consolidations of basic geographical control units.
 Management should strive for as small a control unit as possible. Thereare
two reasons for selecting a small control unit. One reason is to realize an
important benefit of using territories, precise geographical identification of

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 sales potential. If the control unit is too large, areas with low sales potential
are hidden by inclusion with areas having high sales.
2. Decide on the criteria for allocation:
Establishing the sales territory helps in planning and controlling
the sales operations. A well designed sales territory helps to increase sales volume
and market coverage and provide better services to customers. Once the sales
territory is allocated to the salesperson, he is responsible for making things happen.
 Territory balance : .-- effect on morale
It’s also important to balance your territories by region, especially when
considering your team’s morale. Consider this scenario: half your team is
working a high paced urban area and the remaining portion of your team is
working the slow moving rural areas. When you go to measure rep
performance, the rural half of your team probably won’t rate very well
based on the nature of the region they’re covering. They would probably
not be very happy. You want your reps working a mixture of both urban
and rural areas so you can measure and reward your reps based on their
talent and performance, not just on the volume of sales possible for the
region they are working.
 Customer balance - distribute commission.
If you’re all about building networks and teams and excel at getting others
to participate in the process, you’ll do best when you’re paid based on
territory wide sales versus individual sales, Flagg says.

Remember that a sales territory is only as rich as the customers it contains.

“You have to know who your target market is and if they’re located in that
territory,” says business coach Tom Maier of Action Coach in Shelton,
Connecticut.

A protected territory keeps others in the company from poaching your

customers, but prevents you from following customers who move out of
your territory or selling to customers’ out-of-territory branches.
 Potential balance - share business growth.
Properly divided sales territories can make a world of difference for your
team and your business. Whether you’re starting from scratch or looking to
redesign or expand your existing territory management strategy, there are
plenty of benefits to having a comprehensive sales territory plan.
Creating a balanced sales territory plan helps ensure you’re targeting the
right customers at the right times and assigning the right accounts to the
right reps. This also allows you to reduce your sales costs and improve
productivity – which hopefully leads to even more sales.

Prof. Manjunatha S Department of MBA, SVIT

  Size balance - reduce transportation costs.
Once the geographical areas are decided, the company gets a proper picture as to
the areas that can be assigned to the salespersons. He/she needs to cover that area
so that there is no duplication of work by sending two salespersons in the same
area. The selling cost of the company gets reduced and leads to increase in profits.

3. Decide on the starting point:

 Sales persons home
 Large customer : cut transportation cost
 Big city: convenient for service
4. Combine control units adjacent to starting point
Once planning and control units have been selected and opportunity evaluated, initial
territories can be designed. The objective is to group the planning and control units into
territories that are as equal as possible in opportunity. This step may take several
iterations, as there are probably a number of feasible territory designs. It is also unlikely
that any design will achieve complete equality of opportunity. The best approach is to
design several territory arrangements and evaluate each alternative. Each alternative must
be feasible in that planning and control units grouped together are contiguous. This can be
some task when done manually but is much more efficient when computer modeling
approaches are used.

5. Compare territories on allocation criteria and conduct workload analysis

Once the task is assigned, frequent checks are done to monitor the calls; it helps to
determine the work of each salesperson. If the sales manager finds the workload for a
particular person is more, the work is divided and reassigned equally. This creates
motivation and interest to work.
The preceding step produces territories of nearly equal opportunity. It may, however, take
more work to realize this opportunity in some territories than in others. Therefore, the
workload of each territory should be evaluated by

 the number of sales calls required to cover the accounts in the territory,

 the amount of travel time in the territory,

 the total number of accounts, and

 any other factors that measure the amount of work required by a salesperson assigned
to the territory.

6. Assign salesforce to new territories

Once territories have been designed, salespeople must be assigned to them. Salespeople are
not equal in abilities and will perform differently with different types of accounts or
prospects.
Many sales organizations still perform this process manually using maps, grease pencils,
and calculators.

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 There are, however, several software programs that automate the process.
Most of these programs make it easy to design potential territories, print maps, and
compare opportunity and workload. Then, changes can be made easily and new maps and
comparisons produced quickly. This allows sales managers to evaluate many possible
territory designs and to assess the impact of territory design changes easily. Examples of
available software include Sales Territory Configurator ([Link]),
Tactician([Link]), and TerrAlign ([Link]).

SALES QUOTA
Sales quotas are the targets that salespeople try to achieve within a specific period of time,
which contributes towards achieving the organizational goal regarding sales
[Link] quotas are sales goals or targets set by a company for its marketing / sales
units for a time period.
Any kind of sales figures given to any particular person or region or distributor is called
Sales Quota. It can be measured either in terms money or the stock of goods sold. It is
particularly an amount of target sales that is assessed on daily or monthly basis. To assess
the performance of an individual sales person, his/her ability is looked to meet the given
target.
According to Philp kotler
“A sales quota is the sales goal set for a product line, company division or sales
representative. It is primarily a managerial device for defining and stimulating sales
effort.’
Objectives of Sales Quotas
 To use quotas as performance standards or performance goals
 To control performance
 To motivate people by linking quotas to compensation plans
 To identify strengths and weaknesses of the company
 To indicate strong or weak spots in the selling structure
 To furnish goals and incentives for the sales force
 To Control salespeople activities
 To evaluate productivity of salespeople
 To improve effectiveness of compensation plans
 To control selling expense
 To evaluate sales contest results.

PROCEDURE FOR SETTING QUOTA

A successful procedure for setting quotas in organizations is a process built on one-to-one

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 discussion between the sales managers with each salesperson serving a territory. This
procedure is the most democratic way of handling the targets and motivating subordinates
to achieve the organizational goal. They are
 Scheduled planning
 Conferencing with each salesperson
 Arriving at a summarized written quota statement

Scheduled planning:
It involves planning for goal setting meetings with individual salespeople and
particualry with new recruits. These schedules are necessary to explain systems and
reasons benefits and incentives for each salespersons and goals for the organization.
The salespeople should be allowed to ask questions and get clarification for their
doubts.
Conferencing with each salesperson
Here the sales manager allows the salesperson to discuss. The discussion revolves
around
4key areas:
1. Territory: Territories can be defined on the basis of geography, sales potential,
history, or a combination of factors. If the demand for a particular product is constant
and frequent, then the whole sales filed can be divided into small sales territories. However,
in case of low demand and infrequent purchase of articles, the size of the sales territory
should be large.

2. Account: Account represents an individual customer account, organization or

partner involved with business. As part of standard functionality [Link]
provides Account objects in Sales force which stores all account details related your
business like Customers and Competitors. ,
3. Call management : It is strategy where actual converting calls into customer.
Plan the sales call around the people that you're actually calling on. Determine what
they do, how they make the company money. Set up your expectations and an
agenda to explore the goals for the meeting
4. Self management.: The Sales Rep is accountable and responsible for information
and communication. If your business brings in any revenue at all, a sales
management strategy is an absolute must.
The purpose is to create win win situation for both the organization and the employee.
Arriving at a summarized written quota statement
The next task is to prepare written summary of the goals agreed [Link] written goals
become a document of understanding for all purposes. It provides clear cut goals and

Prof. Manjunatha S Department of MBA, SVIT

 responsibilities for the year ahead.
Types of sales quota
(1) Sales volume quota:
It is the most commonly used method as it provides an important standard of
appraising the performance of individual salespeople, intermediaries and the
branch. Sales volume quotas communicate the organizations expectations in
terms of what amount of sales for/in what period. This kind of quota can be set
for geographical territories, different product lines, different marketing
intermediaries, or more than one of these combinations.
The annual quota is set for the year and then broken down into specific time
periods. In many cases, these specific time periods may vary depending upon the
seasonality of the business, consumer attitude towards buying and the geographic
location of the customer. Organizations make sales forecasts on the basis of the
sales divisions, regions, branches, districts and individual sales territories
The sales volume quota is of three kinds:
a) Monetary sales volume quota: The sales volume is set in monetary terms and not in
terms of units of the product. The monetary quota is set for each sales unit
separately.
b) Unit sales volume quota: Here quota is set in terms of volume. It is used in two
situations;
When the prices of the products are expected to fluctuate considerably during the
quota period, And when the companies with a narrow product line sell at a price
that fluctuates little during the quota period. It helps the company to achieve
c) Points sales volume quota. Some organizations use sales volume quota
expressed in ‘points’ into which money or unit sales or both can be converted as
desired by the sales manager. A multi-product firm may fix a point volume quota
where sale of one unit will bring a certain point. Eg: if a salesperson is given a
quota of 1000 points……..
(2) Sales budget quota: These kinds of quotas are set for various units of the
organization in order to control the expenses (expenses quota), gross margins and
net profits (profit quota).
 The objective not only to make desired sales volume but also make profits.
Expenses quota ensures that the salespeople limit their expenses in alignment with
the volume and control the cost to acquire customers.
 Many companies set upper limits on items of expenses like lodging, meals and
entertainment and expect the salespeople to manage within the budget. Profit
quota can be set on Gross margins and Net profits. Organizations emphasize net
profits more than sales volume.

Prof. Manjunatha S Department of MBA, SVIT

  The rationale behind this type of quota is that the sales personnel operate more
efficiently to reduce the expenses and increase the sales resulting in increased
margins and profits.
 The manufacturing department provides the sales manager with information
regarding the cost of goods sold, which includes the cost of manufacturing the
product. By subtracting the cost of goods sold and the direct selling expenses from
the sales volume, one can determine the net profit quota. Here the sales person
does not decide the price and has no control over the manufacturing cost..
(3) Sales activity quota: The sales person is not always involved in sales realization;
for example a retail salesperson has a job of providing information only. In
addition to direct sales activity, the salesperson is expected to do some non selling
activity and the quota can be set as a mix of these activities. Eg: Insurance selling,
Medical Reps. Activity quota can be set on total sales calls, particular classes or
set of customers, calls on prospects, number of new accounts, product
demonstration, etc. Activities quota set objectives for job related studies.
(4) Combination quota: Quota where two or more activities are combined together
such as number of customer, percentage of reduction in sales expenses, number of
orders per customer. The most common combination is the sales volume and
activity quota. It is used to control the sales force performance on the basis of
selling and non selling activities.
METHODS OF SETTING SALES QUOTA
1) Quotas based on sales forecasts and Potentials: The most common methods for
setting quotas is the use of sales forests plus market and territory potentials. Here,
the company makes a total volume or unit sales forecast for the company, product
lines and individual products. Each of these forecasts can be done on a geographic
[Link] method includes the following.
Quotas Derived from Territorial Sales Potentials: Under this method, the quota is
derived from the sales potentials present in a territory. A sales volume quota sums
up the effort that a particular selling unit should expend. Sales potential, by
definition, represents the maximum sales opportunities’ open to the same selling
unit. Many management derives sales volume quotas from sales potentials.

Quotas Derived from Total Market Estimates In some companies, management has
neither statistics on nor sales force estimates of territorial’s sales potentials. These
companies use to down planning and forecasting to obtain the sales estimate for the
whole company. To derive sales quota, the sales manager may either 1. breakdown
the total company sales estimate, using various indexes of relative sales
opportunities in each territory, and then make adjustments, or convert he company
sales estimate into a companywide sales quota and then breakdown the company
volume quota, by using an index of relative sales opportunities in each territory.

Prof. Manjunatha S Department of MBA, SVIT

 2) Quotas based on forecast:
The prior procedure is common for large national companies. Some firms,
however, do not have the necessary information, data, money, and people to
determine sales potentials for individual sales territories. This is especially, true of
companies that sell in small geographic areas. Some firms set quotas in relation to
their sales forecasts or total market estimates. They then usually establish quotas
based on past sales in a geographic area without regard for sales potentials. If a
sales region sold 25% of the firm’s past year’s sales, its quota would be 25% of the
forecasted sales for the next year

3) Quotas based on past sales or experience:

Some companies do not make sales forecasts for total sales volume, product lines,
or individuals products. They take the past years’ sales for each geographic unit,
add an arbitrary percentage, and use the results as their sales volume quotas. A few
companies set quotas from an average of sales for several years. This average is
prefered since it covers the sale trend and the effects of exceptionally good or bad
years.
4) Quotas based on executive judgment:

Whatever method a company uses for setting sales quotas, executive judgement should
be a part of the process. Yet it is generally not recommended as the only method for
deciding quotas. Executive judgement is useful for setting quotas when little
information [Link] may be impractical to determine the sales potential for a newly
opened sales territory, for example, or impossible to estimate the acceptance of a
new product. Frequently, managers have to rely on their judgement to make future
predictions.
5) Quotas based on salesperson judgment: It is not a common method. It is used
especially in companies expanding into new geographic areas or setting up a sales force.
In these conditions, it is difficult to project sales. No past sales exist on which to base
future estimates. Hence, companies usually ask their own salespeople to set quotas for one
or two years. Most companies fo allows their salesmen to give input on the sales quota
setting process. Sales peoples input, views, ideas are combined with historical data and
forecasting data to provide the final quota. It is also assumed that having sales personnel
set them. But many salesmen are not interested in setting their own quotas.
Some may remain reluctant to achieve what they regard as too much. Other may
overestimate their capabilities and set unrealistic high quotas. These very high or
low quotas may cause dissatisfaction and low sales force morale.

6) Quotas based on compensation

Companies sometimes base sales volume quotas solely upon the projected amounts
of compensation that management believes sales personnel should receive. Sales
quota also serves a basis for the promotion of salespeople within a company. Quotas
represent the bottom line for a salesman.

Prof. Manjunatha S Department of MBA, SVIT

 For promotion, salespeople are usually judged on their attaining quotas over time.

It is also very common to earn extra compensation by reaching sales volume quotas
for total sales, existing products, and new products.

For example, a salesperson may be paid a salary plus a bonus of 1 to 15 per cent on
all sales over quota.

Recruitment and Selection of salesforce

Recruitment
It is the planned process whereby the scientific principles of management is utilized for
finding out and filling up the positions in the right territory with the right people.
The section and recruitment of efficient people is always a competitive advantage for an
organization.
Importance of recruitment and selection of salespeople:

 Sales people stand for the corporate image.

 Sales people is related to the survival and development of an enterprise .
 Ensures high quality of sales people.

Sources of recruitment
An important decision to be made at this stage is regarding the source of recruitment. The
sources of recruitment are divided into two types

Internal sources of Recruitment

 Lateral and upward moves: A lateral move in reference to employment is
defined as a move to a different job with essentially the same title, pay and role
either within your current place of employment or with a new company. ... Some
people find that a lateral move away from a bad situation opens the door to new
opportunities for promotion. In a lateral move, an employee moves to an
equivalent role in an organization. The new position usually has a similar salary
range and a job title and is at the same level.
Career advancement refers to the upward progression of one's career. An
individual can advance by moving from an entry-level job to a management
position within the same field, for instance, or from one occupation to another.

 Interns and cooperative students:

Internships are usually for one semester or over the summer and can be paid or
unpaid depending on the employer.
Cooperative education is a structured method of combining classroom-based

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 education with practical work experience. A cooperative education experience,
commonly known as a "co-op," provides academic credit for structured job
experience. Cooperative education is taking on new importance in helping young
people to make the school-to-work transition, service learning, and experiential
learning initiatives. Generally, co-ops last for more than one semester. Students
might take classes in the fall and then work for the company during the spring
semester.
 Employee referral programmes/ Company executive Recommendation by the
sales manager, president and other company executives are frequently an important
sources of recruitment
 Internal transfers It is another internal sources of recruitment in which the
organization recruit people through the transfer of other department

External sources of recruitment

1. Sales force of competitive company : Organization recruit sales people from our
competitive organization sales forces.
2. Placement agencies: It is the third party agencies and organization contact them for
recruiting the sales forces
3. Sales executive club: Many sale executive club operate placement service
4. Educational institutions and campus recruitments: Through campus recruitment
organization full fill our employees needs.
5. Field Trips: An interviewing team makes trips to towns and cities which are known to
contain the kinds of employees required. Arrival dates and the time and venue of
interview are advertised in advance.
6. Other industry sources:
7. Advertising: Senior posts are largely filled by this method. First, there are some
companies which do not do their own advertising. On the other hand they send their
requisitions to certain specialised agencies which advertise positions in leading
newspapers without divulging the name of the client company. The applications
received from the candidates by the agencies are duplicated and mailed to the clients.
Second, there are some companies which although do their own advertising but give
only box numbers. Box number advertisements generally do not draw good candidates
who feel that it is not worthwhile to apply without knowing employer’s name. Third,
there are some companies which divulge their names in their advertisements.
8. Walk-ins: a walk in interview strategy is used to conduct interviews when
the recruiting firm is wanting to hire in huge numbers. Or are so desperate for good
people that they are ready to scan anyone who can 'walk-in'. The number of rounds of
an interview generally remain the same.

Prof. Manjunatha S Department of MBA, SVIT

 9. Networking : As a recruitment strategy, networking enables you to get your message
out about your company, culture and opportunities beyond the posting process. It can
cultivate interest and increase the candidate pool. Invest the time to keep your
connections alive and to expand them
10. Web sources: Today, there are more tools than ever to help people connect online,
including employers and potential employees .Like: LinkedIn, BLR, TalentHQBLOG

Hiring process
There are three stages
� Manpower planning (examine labour turn over, positive equipment analysis, hiring
objective, deciding number of people required for particular time)
� Recruitment stage (identifying best source for generating pool of candidates)
� Selection (screening, interview)

HIRING PROCESS

STEP1 STEP3
Planning for Recruitment & Selection:
Selection Evaluation and Hiring
•Job Analysis
STEP 2 Screening Resumes and
•Job Qualifications
•Job Description Recruitment: Applications
•Recruitment and Selection Locating Prospective Initial Interview
Objectives Candidates Intensive Interview
•Recruitment and Selection
Strategy Internal Sources Testing
External Sources Assessment Centers
Background Investigation
Physical Examination
Selection Decision/Job Offer

1. PLANNING FOR RECRUITMENT AND SELECTION

 Job Analysis
 To effectively recruit and select salespeople, sales managers must have a complete
understanding of the job for which candidates are sought. Because most sales managers
have served as salespeople in their companies before entering management, it is
reasonable to think that they would have a good understanding of the sales jobs for

Prof. Manjunatha S Department of MBA, SVIT

 which they recruit.
 However, some have lost touch with changing conditions in the field and thus have an
Obsolete view of the current sales task to be accomplished. To ensure an understanding
of the sales job, the sales manager may need to conduct, confirm, or update a job
analysis, which entails an investigation of the tasks, duties, and responsibilities of the
job.
 For example, will the selling tasks include responsibilities for opening new accounts as
well as maintaining existing accounts? Will the salesperson be responsible for
collecting accounts receivable or completing administrative reports? The job analysis
defines the expected behavior of salespeople, indicating which areas of
performance will be crucial for success. In most larger companies, the job analysis
is completed by human resource managers or other corporate managers, but even
then, the sales manager may have input into the job analysis.

 Job Qualifications
 The job analysis indicates what the salespeople are supposed to do on the job, whereas
job qualifications refer to the aptitude, skills, knowledge, personal traits, and
willingness to accept occupational conditions necessary to perform the job. For
example, when hiring document solutions representatives, Xerox looks for candidates
who are college educated; have three years of major account experience; have strong
selling and account management skills; have the ability to meet and exceed
performance objectives; have excellent communication, tele prospecting, customer
service, and presentation skills; and are personal-computer literate with proficienc in
MS Office Suite.
 Common sales job qualifications address sales experience, educational level,
willingness to travel, willingness to relocate, interpersonal skills, communication
skills, problem-solving skills, relationship management skills, self-motivation, and
ability to work independently. Consistent with our earlier discussion of the diversity
of personal selling jobs, there is a corresponding variance in job qualifications for
different sales jobs. Therefore, each sales manager should record the pertinent job
qualifications for each job in the salesforce.
 A generic list of job qualifications for all the salespeople in the organization may not be
feasible. For a given sales job within the same company, the qualifications may vary in
different selling situations.
 For example, a multinational company whose salespeople sell the same products to the
same types of customers may require different qualifications in different countries.
Qualifications considered unimportant, and even discriminatory, in hiring salespeople
in the United States, such as social class and religious and ethnic background, are
important in hiring overseas.
 In general, when sending salespeople on international assignments, it is helpful if they

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 are patient, flexible, confident, persistent, motivated, and tolerant of new ways of doing
things; have a desire to work abroad; and have a sense of humor.

 Job Description

 Based on the job analysis and job qualifications, a written summary of the job, the job
description, is completed by the sales manager or, in many cases, the human resource
manager. Job descriptions for salespeople could contain any or all of the following
elements:
1. Job title (e.g., sales trainee, senior sales representative)
2. Duties, tasks, and responsibilities of the salesperson
3. Administrative relationships indicating to whom the salesperson reports
4. Types of products to be sold
5. Customer types
6. Significant job-related demands, such as mental stress, physical strength or stamina
requirements, or environmental pressures to be encountered

 Job descriptions are an essential document in sales management. Their use in

recruitment and selection is only one of their multiple functions. They are used to
clarify duties and thereby reduce role ambiguity in the sales force, to familiarize
potential employees with the sales job, to set objectives for salespeople, and eventually,
to aid in evaluating performance.

 Recruitment and Selection Objectives

To be fully operational, recruitment and selection objectives should be specifically
stated for a given period. The following general objectives of recruitment and selection
could be converted to specific operational objectives in a given firm:
 Meet the company’s legal and social responsibilities regarding composition of them
Sales force.
 Reduce the number of under qualified or overqualified applicants.
 Increase the number of qualified applicants at a specified cost.
 Evaluate the effectiveness of recruiting sources and evaluation techniques.
 By setting specific objectives for recruitment and selection, sales managers can channel
 Resources into priority areas and improve organizational and sales force effectiveness.
 Recruitment and Selection Strategy
After objectives have been set, a recruitment and selection strategy can be developed.
Formulating this strategy requires the sales manager to consider the scope and timing of
recruitment and selection activities as follows:

Prof. Manjunatha S Department of MBA, SVIT

  When will the recruitment and selection be done?
 How will the job be portrayed?
 How will efforts with intermediaries, such as employment agencies and college
place-ment centers, be optimized?
 What type of salespeople will be hired when developing an international salesforce?
 How much time will be allowed for a candidate to accept or reject an offer?
 What are the most likely sources for qualified applicants?
Recruitment and selection are perpetual activities in some sales organizations but in
others are conducted only when a vacancy occurs. Most sales organizations could
benefit
by ongoing recruitment to facilitate selection when the need arises. Some recruit
seasonally. For example, large companies often concentrate their efforts to coincide
with
spring graduation dates on college campuses.

2. RECRUITMENT:

LOCATING PROSPECTIVE CANDIDATES

Internal Sources

External Sources

3. SELECTION &EVALUATION AND HIRING

The third step in the recruitment and selection model .As part of the selection process,
various tools are used to evaluate the job candidate in terms of job qualifications and to
provide a relative ranking compared with other candidates. In this section, commonly
used evaluation tools are presented and some of the key issues in salesforce selection
are discussed.
 Screening Resumes and Applications:
 The pool of prospective salespeople generated in the recruiting phase often must be
drastically reduced before engaging in time-consuming expensive evaluation
procedures such as personal interviews. Initially, sales recruits may be screened based
on a review of a resume or an application form.
 In analyzing resumes, sales managers check job qualifications (e.g., education or sales
experience requirements), the degree of career progress by the applicant, and the
frequency of job change. Depending on the format and extensiveness of the resume, it
may be possible to examine salary history and requirements, travel or relocation
restrictions ,and reasons for past job changes. Also, valuable clues about the recruit may
be gathered from the appearance and completeness of the resume.

Prof. Manjunatha S Department of MBA, SVIT

  New technology makes it possible to screen resumes electronically. Screening software
helps select the best applicants by screening for certain words or phrases, thus
eliminating the need to examine every single resume received.
 Using companies such as Taleo([Link] and [Link]
([Link] businesses also can define e-mail questionnaires that are mailed
out to determine candidates’ experience andskills. Returned responses are automatically
tracked and profiled prior to being enteredinto the firm’s HR database. This process is
considered by some to offer improved identification matching over many keyword
search screening alternatives. Caution, however, should be exercised when using
screening software. If the screening criteria are not carefully chosen, groups of people
from various protected categories may be eliminated.
 A job application form can be designed to gather all pertinent information and exclude
unnecessary information. There are three additional advantages of application forms as
selection tool. First, the application form can be designed to meet anti discriminatory
legal requirements, whereas resumes often contain such information. For example, if
some applicants note age, sex, race, color, religion, or national origin on their resumes
and others do not, a legal question as to whether this information was used in the
selection process might arise.
 A second advantage of application forms is that the comparison of multiple candidate is
facilitated because the information on each candidate is presented in the same sequence.
This is not the case with personalized resumes.
 Finally, job applications are usually filled out in handwriting, so the sales manager can
observe the attention to detail and neatness of the [Link] some sales jobs, these
factors may be important for success.
 Interviews
 Interviews of assorted types are an integral part of the selection process. Because
interpersonal communications and relationships are a fundamental part of sales jobs, it
is only natural for sales managers to weigh interview .
 Results heavily in the selection process. Although sales managers agree that interviews
are important in selecting salespeople, there is less agreement on how structured the
interviews should be and how they should be conducted. For example, some sales
managers favor unstructured interviews, which encourage the candidates to talk freely
about themselves. Others favor a more structured approach in which particular answers
are sought, in a particular sequence, from each candidate.
 Initial Interviews
 Interviews are usually designed to get an in-depth look at the candidate. In some cases,
however, they merely serve as a screening mechanism to support or replace a review of
resumes or application forms. These initial interviews are typified by the on-campus
interviews conducted by most sales recruiters. They are brief, lasting less than an hour.

Prof. Manjunatha S Department of MBA, SVIT

  The recruiter clarifies questions about job qualifications and makes a preliminary
judgment about whether a match exists between the applicant and the company. Such
interviews may also be conducted one-on-one over the telephone or through
teleconferencing videoconferencing if there is a need to involve multiple parties. A
promising time-saving technique for initially interviewing candidates involves them
responding to a series of questions on the Internet or over the telephone. Gallup, Inc.,
helps firms identify recurring patterns of thoughts, feelings, and behaviors exhibited by
top performers. Gallup’s Selection Research
 Instrument System then helps to identify new employees who exhibit success factors
similar to the organization’s top performers. Assessment results are then delivered
online to managers responsible for making hiring decisions. These interviews alleviate
some of the costs involved in conducting a personal interview. Computer-assisted
interviewing is an emerging device that also can be used for screening candidates.
 For example, Nike used it to hire 250 retail salespeople for its Nike town outlet in Las
Vegas. After seeing an ad in the newspaper and responding to eight questions over the
phone, applicants who were not screened out were invited to the store for a computer-
assisted interview, followed by a personal interview. As part of the computer interview,
applicants viewed a video showing three scenarios for helpinga customer and were
asked to pick the best one. The computer flagged applicants’ strengths, weaknesses, and
areas that needed further probing. Although Nike used onsite computer-assisted
interviewing, the Internet now provides another venue for this option, allowing greater
flexibility for both employers and prospective employees. During this phase of
selection, sales managers should be careful to give the candidatean accurate picture of
the job and not oversell it. Candidates who are totally “sold” on the job during the first
interview only to be rejected later suffer unnecessary trauma.

 Intensive Interviews

 One or more intensive interviews may be conducted to get an in-depth look at the
candidate. Often, this involves multiple sequential interviews by several executives or
several managers at the company’s facilities.
 The interview process at Federated Insurance, for example, involves eight interviews.
Another variation on the theme, used less often, is to interview several job candidates
simultaneously in a group setting. When a candidate is to be interviewed in succession
by several managers, planning and coordination are required to achieve more depth and
to avoid redundancy. Otherwise, each interviewer might concentrate on the more
interesting dimensions of a candidate and some important areas may be neglected.
Some evidence suggests that structured interviews are more accurate at predicting a
candidate’s success than unstructured interviews.
 Given the emphasis placed today on developing enduring customer relationships, it is
important to hire salespeople who value honesty and integrity, characteristics necessary

Prof. Manjunatha S Department of MBA, SVIT

 for developing such relationships.

 Testing
 Sales managers must not let bias interfere with the hiring decision. To overcome the
pitfalls of subjectivity and a potential lack of critical analysis of job candidates, many
firms use tests as part of the selection process.
 Selection tests may be designed to measure intelligence, aptitudes, personality, and
other interpersonal factors. Those who have had success with tests suggest they are
useful for identifying candidates’ strengths and weaknesses, as well as for revealing
candidates who possess key personality traits associated with successful salespeople.
Sales managers may use commercial testing services in selecting salespeople.
 For example, Wonderlic Inc., ([Link] offers a computer-scored test
called the Comprehensive Personality Profile that assesses personality from a job
compatibility perspective. This extensively validated test can be used to analyze
candidates’ strengths and weaknesses related to a position in sales, and may be
administered by paper, personal computer, telephone, or online. Companies such as GM
Parts, for instance, test job candidates’ sales skills utilizing online assessment and
testing services
 Povided by the HR Chally Group ([Link] Tests may also be used to
assess a candidate’s honesty and integrity. Standardized tests
Assessment Centers
 An assessment center offers a set of well-defined procedures for using techniques such
as group discussion, business game simulations, presentations, and role-playing
exercises for the purpose of employee selection or development.
 The participant’s performance is evaluated by a group of assessors, usually members of
management within the firm. An assessment center approach was used by one life
insurance firm to select salespeople based on exercises simulating various sales skills,
such as prospecting, time management, and sales presentation skills.
 Results of the study indicated that this program was superior to traditional methods of
selecting salespeople in the insurance industry in terms of predicting which salespeople
would survive and which would drop out within six months of being hired.

Background Investigation
 Job candidates who have favorably emerged from resume and application screening,
interviewing, testing, and perhaps an assessment center may next become the subject of
a background investigation. This may be as perfunctory as a reference check or
comprehensive if the situation warrants it. For instance, Federated Insurance checks
[Link] applicant’s driver’s record and credit history, and conducts 10 reference
checks. In conducting background investigations, it is advisable to request job-related
information only and to obtain a written release from the candidate before. Proceeding

Prof. Manjunatha S Department of MBA, SVIT

 with the investigation. If a reference check is conducted, two points should be kept in
mind.
 First, persons listed as references are biased in favor of the job applicant. As one sales
manager puts it, “Even the losers have three good references—so I don’t bother
checking them.
 ” Second, persons serving as references may not be candid or may not provide the
desired information. This reluctance may stem from a personal concern (i.e., Will I lose
a friend or be sued if I tell the truth?) or from a company policy limiting the discussion
of past employees. Despite these and other limitations, a reference check can help
verify the true identity of a person and possibly confirm his or her employment history.
Learning that an applicant or employee lied on the application form can also be used as
a defense in a hiring or firing discrimination suit. With personal misrepresentation and
resume fraud being very real possibilities, a reference check is recommended.
Physical Examination
 Requiring the job candidate to pass a physical examination is often a formal condition
of employment. In many instances, the insurance carrier of the employing firm requires
a physical examination of all incoming employees.
 The objective is to discover any physical problem that may inhibit job performance. In
recent years, drug and communicable disease testing has made this phase of selection
controversial. Although the courts will undoubtedly have a major role in determining
the legality of testing in these areas in the future, the current rules ,at least in the case of
drug testing of potential employees, are fairly simple.
 A company can test for drug use if the applicant is informed of the test before taking it,
if the results are kept confidential, and if the need for drug testing is reasonably related
to potential job [Link] a drug testing program is in place, all applicants should be
required to be tested.
Selection Decision and Job Offer
 When making the selection decision, the sales manager must evaluate candidates’
qualifications
 Relative to characteristics considered most important for the job. A decision Must be
made about whether a candidate’s strength in one characteristic can compensate for a
weakness in another characteristic, whether a characteristic is so important aweakness
in it cannot be tolerated, or whether the candidate must meet certain minimum levels to
be successful.
 At times, the sales manager may face a dilemma, similar to that found in “An Ethical
Dilemma.” After evaluating the available candidates, the sales manager may be ready to
offer job to one or more candidates. Some candidates may be “put on hold” until the top
candidates have made their decisions. Another possibility is that the sales manager may
decide to extend the search and begin the recruitment and selection process all over
again. In communicating with those offered jobs, it is now appropriate for the sales

Prof. Manjunatha S Department of MBA, SVIT

 manager to “sell” the prospective salesperson on joining the firm.
 In reality, top salespeople e hard to find, and the competition for them is intense.
Therefore, a sales manager should enthusiastically pursue the candidate once the offer
is extended. As always, an accurate portrayal of the job is a must.
 In addition to standard enticements, such as salary, performance bonuses, company car,
and fringe benefits, certain extra incentives are sometimes offered to prospective
salespeople. Bonuses for relocation are one type of incentive, especially with today’s
sentiment for less mobile lifestyles. Another is the market bonus paid on hiring o
salespeople having highly sought-after skills and qualifications. This one-time payment
recognizesan existing imbalance in supply and demand in a given labor market.
 Using a market bonus could be a reasonable alternativeif the supply-demandimbalance
is thought to be temporary because the bonus is a one-time payment and not a
permanentaddition to base compensation. For instance, IBM once offered somehigh-
tech sales reps who were in high demand as much as $50,000 to join its organization.
The offer of employment should be written but can be initially extended in verbal form.
Any final contingencies, such as passing a physical examination, should be detailed in
the offer letter. Candidates not receiving a job offer should be notified in a prompt,
courteous manner. A specific reason for not hiring a candidate need not be given. A
simple statement that an individual who better suits the needs of the company has been
hiredis sufficient.

TRAINING THE SALESFORCE

Training is a process of learning sequence of programmed behaviour. It is application of
knowledge. It attempts to improve employees performance on the current job ofr prepare them
for intended job.
According to Edward B. Flippo, “Training is the act of increasing the knowledge and skill of
an employee for doing a particular job.”
IMPORTANCE OF SALES TRAINING
 Profitability
 Reduces turnover of sales people
 Improves relation
 Healthy work environment
 Organisation climate
 Organisation culture
 Team spirit
 Productivity

Prof. Manjunatha S Department of MBA, SVIT

 Development of skills of employees
 Development of sales force
 Optimum utilization of sales force
LIMITATIONS OF SALES TRAINING
• Difficulty in retaining the trained employee
• Training is a slow process
• Difficulty in organizing training programme
• Time consuming
• Salesmanship is a matter of personality
• Expensive
• Shortage of efficient trainers

Sales training is a process of providing the salesforce with specific skills for performing their
task better and helping and helping them to correct deficiencies in their sales performance.
When a new product is introduced into the market, the market situation undergoes a change
with the entry of a new competitor or a new technology. In this case, the new product either
moves across the life cycle or salespeople are asked to perform the job in a new way. The
salesforce needs to be trained to meet these new kinds of situation. Training provides the
necessary skill to the salespeople to perform a job better and correct any lacunae in the
salesforce while executing their job responsibilities.

THE TRAINING PROCESS

A sales manager has to design a training programme that will help in improving the skill and
efficiency levels of the salesforce. For the purpose of the optimum benefit to the organization,
the sales training programme should be designed by following a scientifically planned and
designed process.
The training process consists of three phases namely,
1. The training need assessment(TNA) and development, : It helps to plan the budget
of the company, areas where training is needed and also highlights the occasions where
training might not be appropriate. The purpose of training needs is to determine
whether there is a gap between what is required for effective performance and present
level of performance of sales people. Training needs arises at three levels:
 Organisational level: TNA at the organizational level is a macro level analysis that
helps identify areas where the employees of the organization lack necessary
knowledge or skills and provides need-based training. TNA at the organizational
level can clearly define measurable outcomes for a training and thus improve the

Prof. Manjunatha S Department of MBA, SVIT

 chances of success of the training program.
 Operational/task level : Task analysis assesses the knowledge and skills required for
specific job tasks and correlates these requirements to the workforce’s actual
knowledge and skills. Training needs analysis determines what kind
of training needs to be given to employees to achieve a specified level of
proficiency.
 Individual level: At the individual or personal level, TNA checks how each
employee performs in his/her job role. The difference between the expected
performance and the actual performance helps you arrive at the training need.
2. Training design : The training programme can be undertaken only when clear
training objectives has been produced. The training objective clears what goal has to be
achieved by the end of training programme. The key areas of training design are:
Trainer ,trainee ,training climate, training strategies, training topics, learning style
3. Training Implentation: Training implementation can be segregated into : i. Practical
administrative arrangements ii. Carrying out of the training. To put training program
into effect according to definite plan or procedure is called training implementation.
4. Training Evaluation : The process of examining a training programme is called
training evaluation. Training evaluation ensures that whether trainees are able to
implement their learning in their respective work places or to the regular work routines.
This is last stage in the training process where the effectiveness of the training
programme is assessed. The effectiveness of a training programme is measured either in
monetary or non- monetary terms. The criterion by which the assessment is done
reflects the needs for which the programme was designed. For example, a training
programme is designed to improve selling skills and can be measured by analyzing the
increase in the all conversion ratio of a salesperson. The training programme is also
designed to increase the sales performance of salesperson in the territory where they are
working.
TYPES OF TRAINING
 Cross-functional training : Cross-functional training aims to form a team of individuals
with various functional expertise and make them work toward similar goals. Usually, it
involves employees from different departments of an organization such as human resources,
marketing, finance, operations, etc
 Team training: Team training can be defined as training in which teams are used to
increase individual procedural knowledge and proficiency in doing a job (taskwork),
individual procedural knowledge and proficiency in functioning as part of
a team (teamwork), and overall team performance.

 Creativity training : Creativity training can be defined as instruction to develop an

individual's capability to generate novel and potentially useful solutions to (often complex

Prof. Manjunatha S Department of MBA, SVIT

 and ill-defined) problems (Scott, Leritz & Mumford, 2004a). ...
 Literacy training: Literacy Training Service” is a program designed to train students to
become teacher literacy and numeracy skills to school children, out of school youth, and
other segments of society in need of their need. Literacy is crucial to the success of
individuals in both their career aspirations and their quality of life.

Training Methods

The various methods of sales training can be classified into two groups:
1. Group Training Methods
2. Individual Training Methods.

Group Training Methods : Group Training is training and employment arrangement where an
organisation, known as a Group Training Organisation or GTO, employs apprentices and
trainees under an Apprenticeship / Traineeship Training Contract and places them with host
employers.
a. Lecture Method:
An expert speaks to trainee-salesmen in a group about the various aspects of selling. This is a
class-room training. Visual aids, demonstration and overhead projectors may be used for
imparting effective training.
The executive or management development is a long-term educational process utilising a
systematic and organised procedure by which executives learn theoretical and conceptual (i.e.,
problems identification and solving skill) knowledge.
Lecture method is known as on-the-job method in which an expert or a superior manager
imparts job knowledge to subordinates.
(b) Audio-Visual Method:
In order to supplement the lecture method, training programmes include the use of visual aids,
such as films, making them more interesting.
(c) Discussion Method / Case Study Method:
In this method of executive development, the trainees may be given a problem to discuss which
is more or less related to the principles already taught. The trainees are encouraged to apply
knowledge for the solution of realistic problems.
An actual case is given as a problem to be solved by the group. The members in the group are
asked to understand the problem and draw a conclusion.
(d) Conference Method:
Sales conferences and sales meetings are organised time to time and thoughts of various
persons are pooled in the conference. Such conferences have motivating effects for the
participants.
(e) Role Playing Method:
The sales trainees are made to act out roles in contrived problems. The trainer explains the
situation of the problem and assigns the role of salesman and customers of different characters
to the sales trainees. Each one has to act the assigned role. The Trainer watches the role played

Prof. Manjunatha S Department of MBA, SVIT

by each and discusses their weakness and strong points. A few may be selected to act the play,
while others may watch it.
Thus, the sales trainees have chance to see and understand the ideas in different situation. Role
playing techniques are used for human relations and leadership training. A conflict situation is
artificially created to allow trainees to take up different parts of play. Through this techniques,
they learn human relations skills through practice.
(f) Sensitivity Training:
Sensitivity training or T group training is an experience in interpersonal relationships in which
results in change in feeling and attitudes towards oneself and others.
(g) Brain Storming Method:
Under this method, persons assemble together and the manager starts discussions. The trainees
have to understand the problems and find solutions. The solutions are analysed by the manager.
2. Individual Training:
a) On-the-Job Training: Under this method, a new salesman is placed under an experienced
salesman who explain the sales techniques. He also takes the trainee along with him on his
rounds and gives him chances to observe the dealings with customers. In course of time, the
sales trainee becomes a trained and independent salesman.
b) Sales Manual: It contains details of the firm and products, job description, sales policies
etc. It contains problems with suggestive solution. A copy of the Manual is given to each
salesman to go through and understand the ideas.
c) Induction Course: A new recruit is given induction training for knowing about the
company, people, products, customers and competitors etc. Apart from above, a salesman
can also be sent to specialized educational institutions and the cost is borne by the firm. It is
important to note that even the trained or experienced salesman need periodic training
called refresher training or follow up training.
d) Job Rotation Training: This method is used to provide knowledge to the trainees in respect
of functions of different departments; such as, research department, accounts, advertising,
purchase, packaging and public relations, etc. Job rotation training is organized on the basis
of a well-planned training programme. This type of training develops the practical
knowledge of the trainees on different aspects of sales.
e) Personal Discussion: In this method of training, salesmen contact with his Sales Managers
and Senior Managers from time to time and discuss with them the individual problems. The
Managers give good advices and suggestions, on the basis of their experience in the field.
The guidance relating to marketing their effectiveness, route planning, call scheduling,
management of sales timings, and other matters related to sales are given by the Manages
to the sales trainees.
f) Correspondence Courses: When the sales trainees are appointed to work at distant place
from the headquarters, and their respective sales territories, it becomes difficult for them to
assemble at the headquarters or at a place fixed for training. In such cases, training is
imparted through correspondence. The training materials are printed and circulated to the
sales trainee at different places where they are [Link] trainees read the materials
carefully and learn to adopt or follow the guidance and instructions received through the
study materials, in practice. If they find any problem in understanding the contents of such
training materials, clarifications are sought through correspondence.

Prof. Manjunatha S Department of MBA, SVIT

Important question:

1. Meaning :

a) Sales Territory
b) Sales Quota

2. Procedures of Sales quota

3. Types of Sales quota
4. Methods of Sales quota
5. Hiring process
6. Different types of Training and process of training

Prof. Manjunatha S Department of MBA, SVIT