Managing Sales Force

Dr.S.John Mano Raj

The Sales Management Recruitment Process Recruitment Performance Performance

and and Selection Selection Evaluation Evaluation

Assimilation Assimilation

Supervision Supervision

Training Training

CompenCompensation sation

Motivation Motivation
Dr.S.John Mano Raj

 Recruitment and Selection

One of the sales managers greatest challenges Careful selection is important for two reasons:
Substantial costs involved Mistakes are costly and detrimental to customer relations and sales-force performance

Dr.S.John Mano Raj

Issues
Deciding on no. of sales force Deciding on Kind of sales force

Dr.S.John Mano Raj

Traits of Top Sales Performers

Strong, healthy self esteem Sense of urgency and competitiveness Persuasive Assertive Sociable Willing to take risks Understand complex concepts Creative in developing solutions Possess empathy
Dr.S.John Mano Raj

Job Summary
Locations : Kolkata, Visakhapatnam Experience : 5 - 15 years Key Skills : Sales, Marketing, Development, Channel sales, Dealer Management, Pesticides, Seeds, Soluble Fertilisers Function Sales/ Business Development Role Sales Exec/ Sales Representative Channel Sales Manager Area/ Territory Sales Manager
Dr.S.John Mano Raj

Job Description:
Achieve sales target for entire agri-inputs basket including crop care chemicals, seeds, and soluble fertilizers. Conduct market research on competitor performance and activities as a plug-in to planning and operational efficiency Nurture and develop relationships with the distribution network (Dealers and Distributors) to ensure adequate market penetration Monitor extension activities within the territory Engage in customer relationship management & monitoring and resolving complaints Ensure profitability of the territory by focusing on rotation of working capital, ensuring low bills receivables Developing and monitoring budgets for operational functioning Liaison with local authorities, agricultural universities

Dr.S.John Mano Raj

Head-Sales & Marketing, Pune:

Company Profile: a large, rapidly expanding, leading, agri-inputs organisation - leaders in their field. The positions are based in various cities in Maharashtra. Our clients offer excellent salary & career growth prospects.

Job Profile: reporting to the CEO, providing strategic direction to the business, will head the Sales, Brand & Marketing function, will be involved in achieving sales targets, managing client/dealer operations/training, maintaining relationships with financial institutions, lead a large All-India team Candidate Profile: Master degree in Agri Science/MBA in Agri Science with 15-25 years relevant experience

Dr.S.John Mano Raj

GM Sales & Marketing - Agro (20+ yrs)

Job Description Head of Sales & Marketing for Cotton Crop. Compensation : Best in the Industry Desired Candidate Profile - B.Sc/M.Sc (Agri) with MBA having minimum 20 years experience in Cotton seed business out of which 5 to 8 years as national level player. - Exposure in Channel Management, good knowledge on Cotton Crop Marketing, a team player and motivator. Company Profile Penta HR recruiting for a market leader in the Seed Industry, especially Cotton Crop(RCH 2 Bt etc).Company is having national presence with excellent infrastructure for Research and farming ,with a talented team in all domains. An organization for ample career growth.
Dr.S.John Mano Raj

Top Accountabilities:
- Deliver sales profit growth , by leading a sales team of Regional Business Managers, Area Sales Area Sales Managers - Own & drive Sales Strategy and execution plans to deliver value share gains and financial leverage - Work with Sales Operations & Customer Marketing team to ensure efficient and effective implementation of Brand & Trade activities - Nurture Customer relationships & implement category growth plans - Understand customer dynamics & needs - Nurture relationships among key customers across functions (supply, Finance, consumer Marketing & customer marketing)

Dr.S.John Mano Raj

Top Accountabilities:.
Leverage shopper and customer insights into tangible customer/trade plans and category developing results - Build customer knowledge in business - Capability Development - Develop the capability of team & self - Recruit, retain, motivate and manage performance of sales talent - Work with Sales Operations team to build required capabilities in the team, including delivering capability training modules - Build a high performing climate by creating the right environment - Contribute commercial insight and leadership - Provide competitor intelligence. - Turn commercial opportunities into reality.
Dr.S.John Mano Raj

 Training
Principal methods used are on-the-job training, individual instruction, in-house classes, and external seminars Popular training techniques include instructional videotapes/DVDs, lectures, role-playing exercises, etc.
Dr.S.John Mano Raj

Training the Sales Force

Company policies Company policies and practice and practice Selling techniques Selling techniques

Training Training includes... includes...

Product knowledge Product knowledge Industry and customer Industry and customer characteristics characteristics Nonselling duties Nonselling duties
Dr.S.John Mano Raj

A-C-M-E-E

Dr.S.John Mano Raj

 Motivation
both psychological and financial encouragement Psychological encouragement includes appeals to emotional needs, recognition, and peer acceptance Financial encouragement includes

monetary rewards and fringe benefits and sales contest awards

Dr.S.John Mano Raj

Compensating the Sales Force

Commission Commission

Combination Combination Plans Plans

Salary Salary

Dr.S.John Mano Raj

Compensating the Sales Force

Straight Commission
The salesperson is paid some percentage when a sale is made.

Straight Salary

The salesperson receives a salary regardless of sales productivity.

Dr.S.John Mano Raj

Supervising and Controlling Sales Force

Managing Sales expenses Sales Quota Sales Territories Performance Evaluation

Dr.S.John Mano Raj

 How salespeople and sales managers spend their time

Dr.S.John Mano Raj

Sales Forecasting

Dr.S.John Mano Raj

Sales Forecasting
Sales forecasting, according to Cundiff and Still, is an estimate of sales during a specified future period which is tied to a proposed marketing plan and which assumes a particular set of uncontrollable and competitive forces.

Cont.

Dr.S.John Mano Raj

Purpose of sales forecasting Steps in Sales Forecasting 1. 2. Defining the objectives to be achieved. Dividing various products into homogeneous groups.

3. Analysing the importance of various factors to be studied for sales forecasting. 4. 5. 6. 7. 8. Selecting the method. Collecting and analysing the related information. Drawing conclusions from the analysis made. Implementing the decisions taken. Reviewing and revising the sales forecasting from time to time.
Dr.S.John Mano Raj
Cont.

Four different types of forecasts : 1. Market Potential 2. Market Forecast 3. Sales Potential 4. Sales Forecast

Dr.S.John Mano Raj

Best Possible Results

Expected Results for given strategy

Industry Level

Market Potential

Market Forecast

Firm Level

Sales Potential

Sales Forecast

Dr.S.John Mano Raj

Sales Quota
Individual sales target figure assigned to each sales unit such a sales person, dealer, distributor, region, or territory, as a required minimum for a specified period ( month, quarter, year). Sales quotas may be expressed either in dollar figures ( monetary terms) or in number of goods or services sold (volume terms).
Dr.S.John Mano Raj

WHY ARE QUOTAS IMPORTANT?

Quotas provide performance targets.

Quotas provide standards. Quotas provide control. Quotas provide change of direction. Quotas are motivational.
Dr.S.John Mano Raj

METHODS FOR SETTING SALES QUOTAS

Quotas based on forecasts and potentials.

Quotas based on forecasts only. Quotas based on past experience. Quotas based on executive judgments. Quotas salespeople set. Quotas related to compensation. Dr.S.John Mano Raj

LEVELS OF ORGANIZATIONAL SALES PLANNING

LEVEL

PURPOSE: WHAT IS PLANNED

WHO (USUALLY) IS INVOLVED

1. Marketing

Organizational goals Upper management and (increase in market share sales and marketing or penetration, increase in executives customers, increase in sales) Priorities (which regions, Regional and district sales markets, and products to managers (which input emphasize) from sales reps) Budget allotment (for promotion, advertising, new employees, sales incentives, and so on) District managers and sales representatives

2. Regional plan

3. District plan

4. Territorial plan

Goals for number of new Sales representatives customers and for increased business with old customers in each region and territory
Dr.S.John Mano Raj

A GOOD OBJECTIVE AND QUOTA PLAN IS SMART Specific Measurable Attainable Realistic
Dr.S.John Mano Raj

SETTING OBJECTIVES AND QUOTAS IS A TWO-WAY PROCESS BETWEEN MANAGER AND SALESPERSON

M O Q

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t u a l l y S e t M e a s u r e j e c t i v e s a n d P e r f o r m a o t a s

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P P R u b l i c i z e e r f o r m a n e s u l t s
Dr.S.John Mano Raj

v a l u a e r f o r m

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Performance Evaluation
Both quantitative and qualitative factors should serve as bases for performance evaluation.

Quantitative bases are specific and objective. Qualitative factors are limited by the subjective judgement of the evaluators.

Dr.S.John Mano Raj

Evaluating the Sales Force : Quantitative

Output Measures
Sales revenue achieved Profits generated Percentage gross margin achieved Sales per potential account Sales per active account Sales revenue as a percentage of sales potential Number of orders Sales to new customers Number of new customers.
Dr.S.John Mano Raj

Evaluating the Sales Force : Quantitative Input Measures

Number of calls made Calls per potential account Calls per active account Number of quotations Number of calls on prospects

Dr.S.John Mano Raj

Evaluating the Sales Force : Quantitative

Combining output and input
1. 2. Strike rate = Number of orders / No. of quotations Call Effectiveness : Sales revenue per call ratio Profit per call ratio Order per call ratio 1. Average order value = Sales revenue / No.of orders 2. Prospecting Success ratio = No. of new customers / No. of prospects visited 5. Average profit contribution = Profit generated / No. of orders
Dr.S.John Mano Raj

Evaluating the Sales Force : Qualitative

Sales skill Opening the sale Identifying customer needs Quality of Sales presentation Use of visuals Ability to overcome objections Ability to close the sales.
Dr.S.John Mano Raj

Evaluating the Sales Force : Qualitative

Customer relationship Self organisation Product knowledge Cooperation and attitude.

Dr.S.John Mano Raj

Evaluation Matrix
Quantitative Measured results
Good Bad

Qualitative Measured Results

Praise Reward Promise

Limited praise Guide Train

Good Bad

Limited Praise Advise Educate

Discuss Train Punish Remove

Dr.S.John Mano Raj

ABC Company introduced a new fertilizer has appointed five sales persons to promote their product in to five different territories. The sales record and the market data of five sales persons belonging to their territory for the year 2010 11 is furnished below.
Name Sales (Rs.000s) Gross Live Margin Account (Rs.000s) s 101 191 121 132 65 222 333 235 181 296 Calls Made No. of Customers called upon 441 432 402 211 421 No. of Territory potential potential accoun (Rs.000s) ts 503 524 711 483 462 34,620 36,360 62,100 43,800 38,620

A B C D E

298 589 391 440 240

1472 1463 1321 1152 1396

Questions Evaluate the performance of each salesperson What further information is needed? What action would you take? Raj Dr.S.John Mano