N6 Sales Management

Sales Management Downloaded from hlayiso.com N6

Module 1: Organisation of the sales force NATURE AND EXTENT OF SALES MANAGEMENT Personal sales and the management thereof are important components of marketing. The sales management function in particular has become a major component of the organisation that approaches the market place according to the integrated marketing principle. Downloaded from hlayiso.com www.futuremanagers.com

Module 1: Organisation of the sales force (continued) PRINCIPLES OF ORGANISATION For the optimum arrangement of resources to achieve company objectives. In order to achieve this, principles of organisation should be applied: • A hierarchy of authority/command; • Unity of command; • Span of control; and • Whether the firm should centralisefrom Downloaded or decentralise hlayiso.comits sales organisation. www.futuremanagers.com

Module 1: Organisation of the sales force (continued) TYPES OF SPECIALISATION A sales manager can choose to specialise according to the following: • Geographic organisation; • Product or service; • Type of client; • Function; and • Matrix organisation. Downloaded from hlayiso.com www.futuremanagers.com

Module 2: Recruiting and screening of the sales force CONCEPTS IN SALES STAFF RECRUITMENT AND SCREENING • Recruiting involves identifying potential salespeople and attracting them to the company. • Screening is the process whereby unqualified and undesirable applicants are eliminated until only qualified candidates remain. • Selection is the process whereby a particular person chosen from the previous group Downloaded of qualified candidates. from hlayiso.com www.futuremanagers.com

Module 2: Recruiting and screening of the sales force (continued) RECRUITING SOURCES Recruiting the right person is an essential task for a sales manager. There are a variety of different sources from which candidates can be found to recruit: • Internally from the staff; • Clients from other associates; • Individuals from competitor companies; • Individuals fromDownloaded non-competitor companies. from hlayiso.com www.futuremanagers.com

Module 2: Recruiting and screening of the sales force (continued) THE SELECTION PROCESS 1. Application forms handed in and evaluation of CVs 2. Personal interviews: initial phone screening, face to face interview 3. Reference checks 4. Psychological/psychometric testing 5. Selection 6. Formal job offer and appointmentfrom hlayiso.com Downloaded 7. Assimilation/induction in organisation www.futuremanagers.com

Module 2: Recruiting and screening of the sales force (continued) SELECTION A good sales selection programme contributes towards the following advantages: • It reinforces the abilities of a good sales manager. • It increases the chance of hiring the best long-term sales staff. • It improves the sales staff’s selling performance. • It can reduce selling costs. Downloaded from hlayiso.com • It eases managerial tasks such as training, supervision and motivation. www.futuremanagers.com

Module 2: Recruiting and screening of the sales force (continued) ASSIMILATION OF THE NEW SALES FORCE IN THE ORGANISATION Assimilation, which is also known as induction, involves the formal introduction of the recruit to the company’s staff, operations, goals and policies as well as to the particulars and compensation of the sales task. Downloaded from hlayiso.com www.futuremanagers.com

Module 3: Training of the sales force DETERMINATION OF TRAINING NEEDS The main aims of a training audit (assessment of what the firm’s sales staff need) are to find out the: • Knowledge, skills and attitudes salespeople currently have; • Knowledge, skills and attitudes salespeople should have; and • Required content of a training programme that will bridge the gap between the above two. Downloaded from hlayiso.com www.futuremanagers.com

Module 3: Training of the sales force (continued) OBJECTIVES OF TRAINING The broad objective of sales training is to establish the best possible sales system with which the firm can achieve its different goals maximally. Downloaded from hlayiso.com www.futuremanagers.com

Module 3: Training of the sales force (continued) LOCATION OF A TRAINING PROGRAMME Some of the most important factors that determine whether the location for training of the firm should be centralised, decentralised are: The size of a company, its financial strength, the nature of its product/service and the contents of its training programme. Downloaded from hlayiso.com www.futuremanagers.com

Module 3: Training of the sales force (continued) THE CONTENTS OF A SALES TRAINING PROGRAMME A good sales training programme should at least contain and convey complete knowledge of: • The product/service; • The company; • The market; and • The selling process. Downloaded from hlayiso.com www.futuremanagers.com

Module 3: Training of the sales force (continued) MOTIVATION OF THE SALES FORCE Motivation is the psychological force that activates goal-orientated behaviour. Motivation is grounded in various needs that we aim to satisfy, such as: • Physiological needs; • Safety and security; • Social needs; • Esteem and status; and Downloaded from hlayiso.com • Self-actualisation needs. www.futuremanagers.com

Module 3: Training of the sales force (continued) SUPERVISION OF THE SALES FORCE Supervision can be defined as the process whereby a sales manager with the necessary authority and appropriate leadership style influences and controls the behaviour of a salesperson towards the attainment of specific goals. Downloaded from hlayiso.com www.futuremanagers.com

Module 4: Sales force compensation OBJECTIVES OF A COMPENSATION PLAN FROM A COMPANY’S POINT OF VIEW • To assist the company in meeting its sales objectives; • To attract and maintain a competent sales force; • To control the sales force’s activities and motivate the sales force; • To ensure the proper treatment of customers; • To be economical and stay competitive; Downloaded from and hlayiso.com • To be flexible and maintain stability. www.futuremanagers.com

Module 4: Sales force compensation OBJECTIVES OF A COMPENSATION PLAN FROM A SALEPERSON’S POINT OF VIEW • To earn a regular income; • To earn a fair income; • To be rewarded for superior performance; and • To be able to improve one’s status. Downloaded from hlayiso.com www.futuremanagers.com

Module 4: Sales force compensation (continued) METHODS OF COMPENSATION There are a number of ways in which a sales force can be compensated nowadays. Compensation can take the form of: • Salary only (straight salary); • Commission only (straight commission); and • A bonus. Downloaded from hlayiso.com www.futuremanagers.com

Module 5: Evaluation of sales performance ANALYSIS OF SALES VOLUME Sales volume is the combined sales of all the products in all the sales territories for all the clients of a company. The following bases can be used to analyse sales volume data: • Total sales figures; • Market share; and • Sales accordingDownloaded to territory; product fromor type of client. hlayiso.com www.futuremanagers.com

Module 5: Evaluation of sales performance (continued) ANALYSIS OF MARKETING COSTS Marketing costs analysis can be defined as the collection of marketing cost items in meaningful cost categories, the comparison of these cost categories with budget s and criteria such as profit margins, and the evaluation and interpretation of these comparisons. Downloaded from hlayiso.com www.futuremanagers.com

Module 5: Evaluation of sales performance (continued) ANALYSIS OF INDIVIDUAL SALES PERFORMANCE A sales manager wants to know how productive and effective each member of his/her sales staff really is. The evaluation of the individual salesperson’s performance is therefore a critical but also potentially sensitive issue. Downloaded from hlayiso.com www.futuremanagers.com

Module 5: Evaluation of sales performance (continued) THE SALES BUDGET The sales budget is a detailed and accurate plan for the future, expressed in financial or physical quantities, and is used to exercise control over selling activities for a specified period. Downloaded from hlayiso.com www.futuremanagers.com