Mutli-level marketing is practised in India by companies like Medicare, Avon Beauty Products, Tupperware and Oriflame. Perhaps the most critical leadership function is encouraging salespeople to live the mission — providing a rationale for the sales job over and above financial rewards. Motivation is the act of stimulating someone or oneself to get a desired course of action, to push the right button to get a desired action- a compliment, a pay rise, a smile, a promise of promotion, praise, public recognition of merits and so on. One More Time: How do you Motivate Employees? To gain commitment to targets, individual salespersons should be consulted. Marketing plans are long-term and strategic. Some FMCG firms now spend more heavily on direct selling relationship management to wholesalers/retailers than on advertising to consumers! There may be joining fees. In practice, salespeople sell limited range of products to limited type of customers. Software applications allow salespeople/sales managers to track/manage sales pipelines, decide where additional resources are appropriate. We shall also have stable sales force. Other devices/applications — Salesforce(dot)com — enable advertising coordination, best-practice/knowledge sharing, delivery of well- designed sales literature/working models, scheduling reseller/customer/sales force training/meetings, technical support, trade show participation. Outsourced agents, brokers, reps earn commissions; hence, the firm may exercise little control over time allocations, effort. Oriflame wants to strengthen its network in Tier I and Tier II towns. Giving them adequate information regarding company plans and policies and changes in those policies, iv. Pipeline analysis tracks success as customers traverse these stages to actual sale. The sales management job is to make salespeople successful. iv. A plan of remuneration must provide stability of earnings for salesmen, managerial control over salesmen’s activities, incentive to obtain more volume and it must have built in flexibility to adjust itself with the changing economic conditions. When will I have access to the lectures and assignments? There is no haggling with distributors. Management of system to handle uncertain environment. Deciding firm commitment to the SKA program, overall resource allocation, number of strategic accounts, revenue/profit targets, types of firm/SKA relationships. Various combinations of three financial rewards: a. Suppose there is a company which has experienced an increase in sales turnover with an increase in the number of salespeople. To access graded assignments and to earn a Certificate, you will need to purchase the Certificate experience, during or after your audit. 3,300 crore industry today in India. In addition, other promotional methods apart from personal selling may affect the sales. It is a customer relationship management platform. At best they should be used to screen out applicant from further consideration and not as the basis for acceptance or final selection. (i) Spelling out the aims of the sales training, (iii) Identifying needs of individual salesman, (iv) Deciding about the nature and type of training required, (vii) Developing the instructional material and training aids, (ix) Evaluating the effectiveness of the training. Over a decade the firms have a single goal of earning profit and making sales. It puts people off. Good sales managers break the selling task into discrete easy-to-learn steps that follow a strategic sequence: Know the desired results from each sales call at each stage in the buying process. Anticipate, address customer objections. Task 4 addresses sales organization design; firm choices should reflect strategic realities. Correspondence and reports should not involve excessive clerical work. LOC (liquid organic cleaners) costs Rs. The sales pipeline (SP) comprises stages in the selling process; customers move from prospects (potential customers) to buyers. Persuasion is demonstrated through giving explanations for policy and reasons or the needs for action. Securing applications on the basis of job description and job specification. Tasks 4,5,6 focus on implementing sales strategy — ensuring the sales force delivers the planned levels/ types of selling effort. Compensation should be such that neither employees nor employer feels exploited. Actually sales force management does much more than serving as the muscle behind marketing management. Sales engineers act as advisors and design consultants in industrial marketing. The performance of one set of activities represents one sales personnel unit. Sales volume potential of a growth-oriented company is a function of the effectiveness and number of salespersons it has got. Developing marketing strategies for each of one’s products using the marketing mix variables of price, product, distribution, and promotion, xii. These are the devices of group motivation. Sales Force Management Developing your sales force starts with an assessment of strengths and weaknesses Assess Your Strengths and Weaknesses Action Selling builds Sales Teams that consistently win business. ii. Thus, a sale of Rs. At a minimum, good forecasts are important for financial budgeting, production planning. Reciprocity — if you give, people give back. Just as buyer behaviour is important in the buying process, exactly in the same manner, employee behaviour is important in management of people. We can prepare a much more comprehensive grid. Concerned with SKA program placement, reporting structure, interfaces with other functions. Many firms have a policy of recruiting salespeople internally; they may create career paths in related departments — sales support, customer service. Effective sales force management is key to successful sales. This is accomplished through practice under an experienced trainer. It will become very difficult to manage the sales person in such a situation. Identifying the best customers in place, v. Doing marketing research to develop profiles (demographic, psychographic, and behavioral) of core customers, vi. Trained sales force can exercise effective self-control and self-supervision. A salesperson’s role in securing orders also affect the type of salespersons required. Develop procedures, including market research, to elicit/identify customer needs. At present video tape, closed circuits for broadcasts are used for training salesmen. Sales management is an integral system of marketing management. They penalize repeated mistakes, but celebrate/reward learning from honest mistakes. Remuneration and Expenses (Compensation): Perhaps the major motivating factor in selling is compensation given to the sales people. The answer indicates the number of salespeople needed. Before joining the faculty at the School of Management, he worked in sales and marketing for the TI Group and was Senior Lecturer in Marketing at Huddersfield University. Here, we have to divide the total workload by the workload an individual salesman can possibly handle. Process 4. A sales territory is a particular grouping of customer and prospects assigned to a sales person. The person earns commissions on what he sells plus what the pyramid under him sells. Weeding out poorly performing salespeople; filling vacancies. Sales management originally referred exclusively to … The firm may choose among several sales perfor­mance measures. Multiplying number of customers (III) by selling time per category (IV) gives the required annual selling time per category (IV). Winning/losing an SKA is a significant organizational event. Role of Marketing 8. He should know his men not only as individual but also as groups. Morale is the mental readiness of the sales force to cooperate with the management in the accomplishment of objectives. Additional financial compensation such as pension plan, provident fund, life insurance protection etc. Sales-related marketing policies provide a framework within which the salesforce performs. Plagiarism Prevention 4. Customer Expectations Met- Customer- Satisfied with purchase, installation moves forward. Product specialization is necessary for complex, technical products. Promotions, more interesting job possibilities are highly motivating for some salespeople. As they move up, added pressures cause them to relate their efforts among growing set of responsibilities. There are targets that need to be achieved in a fixed time period, customers need to be satisfied, reports need to be prepared, market intelligence is to be gathered and many more activities need to be done by the sales people. In 1886, he founded a perfume company and employed women to sell them directly. Sales-force management work starts with job analysis; viz. 1. Till we add 15th salesperson, we get additional net profit contribution of Rs. 3. Sales knowledge training can he imparted through lectures, sales training conferences, plant visits, individual study and correspondence between sales managers and their people. Multilevel marketing has a two-dimensional approach – personalised selling of products with minimum promotional expenses and creation of a staunchly loyal salesforce. It is under investigation in the US. The major steps involve – 1) Designing sales force objective and strategy 2) Sales force size 3) Recruitment and selection 4) Training and motivation 5) Compensating 6) Supervising 7) Evaluation and control of […] Thus, a paint manufacturer may have different salespersons for domestic paints, industrial paints and marine paints. The chain continues, and the business spreads. Selling task varies from customer to customer, and market to market. Psychological tests are of the four major types; Intelligence tests, Aptitude tests, Interest tests and personally tests. 7,400 crore in 2017-18, excluding the insurance business. Consistency — people fulfill commitments (especially public, written). Salespeople must be thoroughly acquainted with the selling techniques they can use, and management has a responsibility in doing so. Sometimes customers are clear about needs; other times, individual decision-makers/ influencers have different perspectives. Selling concentrates is their core competency. Virtual meeting applications — GoToMeeting, Skype, Google Hangouts — reduce travel time by allowing remote face-to-face sales meetings. Social media can help isolate response patterns, provide salespeople with useful clues. Most good sales management systems allow managers to customize dashboards to track metrics on direct sales activity — calls per day, calls per account, time at new accounts. Selling goods or services which assure the highest gross profit and. Of course, it is assumed that economic needs of salesmen are duly satisfied by economic incentives. iii. Tasks 1,2,3 address developing sales strategy. Another important objective of supervision is control. Disclaimer 9. Well-set sales objectives specify how much, by when the sales force must meet performance targets. Sales compensation plan has four elements: iii. The company has now 10 salespeople on its pay roll and wants to consider whether it can add new hands. 35,000. Sales territories enable sales organisation to manage personal selling efforts more economically. A larger sales volume target requires more effective and large-sized salesforce that covers the territory intensively. Make territory design adjustments to optimize sales potential, salesperson workload. This can increase relation between company and customers. ii. Controlling sales personnel requires analysis of selling records and evaluations of sales performance. If contests are widely used, they can remove many disadvantages. Sales Force Management, 9e remains the most definitive text in the field today. The decision on size of sales-force determines the magnitude of these activities. Human relations are of first importance in the sales department. 30 of sales. iv. © 2020 Coursera Inc. All rights reserved. A salesperson is expected to product maximum sales turnover from his area with the minimum amount of time and efforts. With 10 people down line, one can continue up to level 4. Supervision, direction and control involve: i. Salespersons are suitably placed in the organisation, matching the job and the person. Most salespeople use e-mail, laptop/tablet computers, smartphones; they have standardized slide shows/interactive web-based demos for presentations. As the market gets exhausted soon beyond certain levels, this cannot be called a sustainable business. The sales response to a particular selling effort function needs to be established to apply this method. An organisation first decides what type of salespeople it requires and then how many of them are necessary so as to meet the sales and profit objectives. It can be diluted 164 times; the cost works out to Rs. Example- An FMCG Sales person recruited for an automobile sales position is a misfit. iii. It is projected to grow at 12.5 per cent to touch Rs. It has more than 1 lakh active distributors. He may represent more than one unit or less than it, depending upon his effectiveness. When the Sales person is assigned to work in the field, other personnel functions start to operate. Promotional strategy also influences the type of salespersons needed. This free online course on sales force will be a useful resource for sales executives who wish to improve their knowledge on how sales marketing plans create great sales performance. We then discuss strategic/key account management. (b) Straight commission plan – Where only selling commission is paid on every unit sold. We have to consider the number of sales personnel unit required and the number of salespersons required to perform them. Market share — performance versus competitors. Marketing and sales often have different perspectives. Different methods of compensation and incentives are: (a) Straight salary plan – Sales men are paid a fixed salary. If you don't see the audit option: What will I get if I subscribe to this Specialization? Sales managers in modern organization are required to be customer- oriented and profit-directed and perform several tasks besides setting and achieving personal selling goals of the firm. The proposition here is that net profits rise up when additional sales hands are recruited provided that the additional sales revenue exceeds the additional cost of employing the new hand. The training is necessary because of the changing market conditions, culture of the new organization etc. It is Sales Management that translates the marketing plan into marketing performance. The morale of salesforce is much better when salesmen are assigned to specific sales territories. The management can show its concern for its people, and thereby motivate them by regular and routine supervision. Beyond 200 incentive points a month, there is an additional commission by way of incentive. Long run success of the firm in generating sales volume hinges upon the development of sales man power. They are compensated for their want of pocket expenses at fair rates. Market specialization is chosen for non-technical products having several markets or customer-group, but each with a unique set of problems. Job evaluation assures base rate for jobs assuming economic security. Identify- Customer- Interested in IBM as supplier. The first two pages are available for everyone to see, but only faculty. Some trial territories are geo­graphically larger than others. In addition to sales-force management responsibilities, they participate increasingly in long-term planning and forecasting, structuring of product line, setting prices, planning promotional programmes, managing marketing channels, and physical distribution. Vacations, electronic gadgets, family outings etc 100 per cent upon personal strategy! Avon also allows women to sell a diversity of products to multiple segments must employ multiple sales approaches individual. 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