UNIT 3 DR SAAD BIN AZHAR
CONTENTS
Sales Force Recruitment
Selection Process
Distinction between Recruitment and Selection
Design, Execution and Evaluation of Sales Force Training
Motivation and Compenation of sales personnel
Design and Management of Sales Territories and Quotas
SALES FORCE
RECRUITMENT
SALES FORCE RECRUITMENT
Recruitment is a process of finding out candidates, who are
encouraged to apply. It is a positive process in which a company
attracts a pool of talented people.
Generally, the various sources of recruitment are classified into two
categories- Internal External
i) Internal Sources Sources Sources
Promotions Competitors
ii) External Sources Transfers Non-Competing
Internal companies
Advertising Educational
Retired Institutes
Managers Advertisements
Recall from Employment
long leave Agencies
SELECTION PROCESS OF A
SALESMAN
1. Screening of Resumes or CV’s
2. Application Blank
3. Personal Interview
4. Psychological Tests
5. Reference Check
6. Medical Examination
7. Final Interview and Appointment
8. Socialisation
DISTINCTION BETWEEN
RECRUITMENT AND
SELECTION BASIS RECRUITMENT SELECTION
1. Meaning Its an activity of It’s a process of picking
establishing contact up more competent and
between employers and suitable process.
applicants.
[Link] It encourages large It attempts at rejecting
number of candidates for unsuitable candidates.
a job.
3. Hurdles The candidates have not Many hurdles have to be
to cross over many crossed.
hurdles.
4. Nature It is a positive process as It is a negative process as
more and more more and more
candidates are candidates are rejected
encouraged to apply. than selected.
5. Sequence It proceeds selection. It follows recruitment.
SALES FORCE
TRAINING
OBJECTIVES AND
IMPORTANCE OF SALES
FORCE TRAINING
OBJECTIVES IMPORTANCE
To supplement knowledge, skill Improving communication skills
of the sales force.
Learning sales methodology
To increase efficiency
Overcoming objections
To reduces sales force turnover
Developing administrative skills
To improve morale
Product knowledge
To improve customer
relationships Customer service skills
To improve communication
DESIGNING SALES TRAINING
PROGRAMME
The steps involved in designing a sales training programme are
popularly called ‘ACMEE’ where,
A- Aim EXECUTION
AIM CONTENT METHOD (who, when,
C- Content (why?) (what?) (how?) where,
what?)
M- Method
E- Execution
E- Evaluation EVALUATION
SALES TRAINING METHODS
ON THR JOB METHODS OFF THE JOB METHODS
1. Mentoring 1. Lecture Method
2. Sales Manual 2. Conference
3. Job Rotation 3. Demonstration
4. Under study 4. Case studies
5. Role play
6. Online training
EVALUATION OF TRAINING
EFFECTIVENESS
In evaluation, the company must decide the outcomes to be
measured. Eg-
1. Reaction
2. Learning
3. Behavior
4. Result
MOTIVATION AND
COMPENSATION OF
SALES PERSONNEL
OBJECTIVES OF A
COMPENSATION PLAN
THE COMPANY’S THE SALESPERSON’S
VIEWPOINT VIEWPOINT
The company wants to attract, retain & The salespersons wants the
motivate competent salespeople. compensation plan to provide a
The compensation plan should offer regular income every month that is
incentives to control severe critical fixed and secured against any
activities of salesforce. problems or emergencies.
Most companies want to keep their The compensation plan should be
salespeople’s expenses at the same level
as those of competitors.
simple for salespeople to understand
easily.
A good compensation plan should be
flexible to adapt new products, volatile The compensation plan should
markets, and differing territory sales ensure fair or just payments to all
potential. sales people.
DESIGNING AN EFFECTIVE
SALES COMPENSATION PLAN
STEP I : Examine job descriptions
STEP II : Set up specific objectives
STEP III : Decide levels of pay/ compensation
STEP IV : Develop the compensation mix
STEP V : Decide indirect payment plan
STEP VI : Pretest, administer and evaluate the plan
DIMENSION OF SALES
MOTIVATION
IMPORTANCE OF
MOTIVATION
1. Unique nature of the sales job
2. Individuality of salespeople
3. Diversity in company goals
4. Changes in marketing environment
MOTIVATIONAL THEORIES
AND TOOLS
MOTIVATIONAL THEORIES MOTIVATIONAL TOOLS
1. MASLOW’S NEED HEIRARCHY 1. Compensation
THEORY
2. Merchandise gifts
2. HERZBERG’S DUAL FACTOR
THEORY 3. Sales contests
3. VROOM’S EXPECTANCY 4. Promotion
THEORY 5. Recognition and Honor
4. CHURCHILL, FORD AND awards
WALKER MODEL OF SALES 6. Sales conventions and
FORCE MOTIVATION conferences
SALES QUOTAS AND
TERRITORIES
PURPOSE OF SALES QUOTA
1. Providing Goals and Incentives
2. Controlling Salespersons Activities
3. Evaluating Performance
4. Controlling the Selling Expenses
5. Making Effective Compensation Plan
TYPES OF SALES QUOTAS
1. Sales volume quota
2. Financial quotas
3. Activity quotas
4. Combination quotas
PROCEDURE FOR SETTING
SALES QUOTA
1. Quotas based on sales potential
2. Quotas based on past sales alone
3. Quotas based on executive judgement
4. Quotas based on total market estimates
5. Quotas related only to compensation plan
6. Quotas related to only to compensation plan
BENEFITS OF ESTABLISHING
SALES TERRITORIES
Adequate customer coverage
Increase sales potential
Decrease cost of sale
Gain competitive advantage
Improve sales force satisfaction
Raising morale
Helps evaluation of sales force
FACTORS AFFECTING
ESTABLISHMENT OF SALES
TERRITORIES
1. Size of market
2. Demand for the product or service
3. Nature and degree of competition
4. Market or sales potential
5. Methods of distribution
HOW TO ESTABLISH A SALES
TERRITORY
1. Select a control unit for territorial boundaries
2. Determining location and potential of customers
3. Deciding basic territories
4. Assigning sales person to the territory
5. Formulate territorial coverage plan
6. Reviewing and revising sales territory
SALES TERRITORY SHAPES
1. Circle Shape – it is more appropriate where the
concentration of customers is more or less the same
throughout the territory.
2. Clover Leaf Shaped – It is desirable for company’s
marketing industrial goods. It is suitable when customers
are located randomly.
3. Wedge Shaped or Straight Line – it is suitable when
the sales person is based in town with dense population
of customers and has to visit the satellite towns also for
small customers.
4. Suitable Station Sales person – the sales person
should be located or based at a place in his/her territory
with the highest concentration of customers.