Sales Force

Management

job analysis
Its the detailed examination of the job.
Job analysis job tasks
job duties
job responsibilities

Benefits of job analysis

1. Human resource planning
2. Recruitment
3. Selection
4. Placement
5. Training
6. Counseling
7. Employee safety
8. Performance appraisal
9. Job design and redesign
10. Job evaluation.

Process of job analysis

a.
b.
c.
d.

e.

Organizational analysis.(to find

relation b/w job & org objectives)
Selection of position to be
analyzed.
Collection of job analysis data.
Preparation of job description.
(describe content of job like functions
, duties, operations , responsibilities)
Preparation of job specification.
(personal attribute like- traits, skills,

Job Analysis and

Selection Criteria
Conduct a job analysis to determine
what activities, tasks, responsibilities
and environmental influences are
involved
Write a job description that details the
findings of the job analysis
Develop a statement of job
qualifications describing the personal
traits and abilities needed to perform
in the job

Who Conducts the Analysis

and Prepares the
Description?
Current occupants of the job
Sales managers who supervise people in
the job
Current staff should be observed and
interviewed to determine what they
actually do
Use the job description creation process as
a means of reaching consensus on job
content, activities and training needs.

Content of the Job

Description
Nature of the product(s) or service(s)
being sold
Types of customers
Specific tasks and responsibilities
Relationship between the sales
position and other positions within the
organization
Mental and physical demands of the
job
Environmental pressures and
constraints

JOB DESCRIPTION
FACTORS
Selling Requirements:
Degree of
Responsibility
New account vs. established
and Authority:
account
Negotiations of pricing
Selling through distributors
Entertaining customers
Career Paths:
Level of buying authority
Compensation plan
Physical activity required
Promotion timing
Weekends away from home
Relocation
Non-selling Tasks:
Reports to management
Customer service and training
Sales promotion

JOB DESCRIPTION
FACTORS
Performance Expectations:
Performance
Expectations:
Activity level requirements
Travel and entertainment
Written proposals
Earnings potential
Individual vs. team selling
Promotion leaders
One time vs. systems selling
Minimum sales volume or
Type of prospects and customers profits
One-on-one selling vs. groups
Travel--how much and what kind
Program or concept selling
Technical knowledge
Educational seminars
Collecting receivables
Marketing plans

Characteristics of Salespeople
who Fail
Instability of residence
Failure in business within the past two
years
Unexplained gaps in the persons
employment record
Recent divorce or marital problems
Excessive personal indebtedness; for
example, bills could not be paid within
two years from earnings on the job

RECRUITMENT
Its the process of locating and encouraging
potential applicants to apply for existing job
openings.
Challenges :
Poor image
Unattractive job
Limited budgetary support
Restrictive policies of govt.

Sources of recruitment
Internal sources lies inside the
org.
(eg : retired employee)

External sources lies outside the

org.
(eg: students from colleges)

Methods of recruitment

Internal method

1. Promotion n transfer
2. Job posting
3. Employee referrals ( it takes one to
know one)

External method

1. Campus recruitment
2. Advertisement ( newspaper ads
,TV/radio ads)
3. Private employee search firms
4. Gate hiring ( blue collar employees)

Factors affecting recruitment

Objectives of recruitment
Support the organization ability to acquire, retain and develop
the best talent and skills.
Determine present and future manpower requirements of the
organization.
Obtain the number and quality of employees that can be
selected in order to help the organization to achieve its goals
and objectives
Create a pool of candidates so that the management can select
the right candidate for the right job from this pool

Attract and encourage more and more candidates

to
apply in the organization

Increase the pool of candidates at minimum cost.

Acts as a link between the employers and the job

seekers

Infuse fresh blood at all levels of the organization

Meet the organization's legal and social obligations

regarding the composition of its workforce.

selection
Its the process of picking individuals who have
relevant qualifications to fill jobs in an org.
Process of selection
Reception
screening interview
app blank
Selection test
selection
interview
medical examination
reference
checks
hiring decision.

Selection test
Types of tests :
1.

Intelligence test (learning ability n making

judgments)
2. Aptitude test
(clerical, mathematical skills)
3. Personality test (motivation , self confidence)
- Projective test (how candidate solves prob
based
on their own motives ,attitude ,values)
8.
- Preference test .
4. Achievement test (does he knows what he
claims)
5. Lie detector test
6. Integrity test (employees honesty)

7. Simulation test
8. Assessment Centrea. the in basket
b. the leader less group
discussion
c. business games
d. individual presentation
e. structured interview

Selection interview
Types of interviews :
1. Non directive interview ( unstructured
format)
2. Directive interview (predetermined
questions)
3. Situational interview
4. Behavioral interview ( work incidents in
past)
5. Stress interview
6. Panel interview

Interview process
Preparation
Reception
Information exchange
Termination
Evaluation

Training sales Personnel

Process :
Assess
sales
training
needs

Design &
execute
sales
training
programme

Evaluation &
reinforcement
of sales training
programme

Assessing training needs

Capability gaps arise when the sales
force does not have the required
KSAs & capabilities to become
successful on job.
Methods used to asses training
needs :
Sales managers observation
Sales force survey
Customer survey
Performance testing
Job description

Sales training needs:

Product knowledge
Customer knowledge
Competitive knowledge
Sales technique
Company knowledge

Designing sales training

programme

Aim
(Why?
)

Conten
t
(what?)

Methods
(how?)

Execution
(who,
when,
where
,what?)

Evaluati
on

Contents of sales training :

company knowledge
Product knowledge
Customer knowledge
Competitor knowledge
Selling skills or sales techniques

Sales training methods :

Decisions for sales training

Who will be the trainees?
- new and existing sales people
- intermediaries
- sales manager
Who will conduct the training?
- line sales personnel
- staff trainers
- outside training specialists

 When should the training take place?

Where should the training be done?
- centralized training
- decentralized training
What will be the budgeted
expenditure for the training?

Evaluation :
The company must decidewhat outcomes will be measured
How these outcomes will be
measured
when to measure these outcomes
These outcomes fall into 4 categories :
Reactions
Learning
Behavior
Results

MOTIVATIN
G SALES
FORCE

 Originally derived from the Latin

word movere which means to
move.
3 dimensions:
Intensity(amount of physical &
mental effort)
Persistence(how long the salesperson
continues to put forth effort)
Direction(salespersons choice of
direction of effort among various
tasks)

Importance of motivation

Changes in marketing environment

Conflicting company objectives
Unique nature of sales job
Separate motivational package

Relevance of motivational
theories to salesperson
Maslows hierarchy of needs theory.
Hertzbergs dual factor theory.
Vrooms expectancy theory.

Churchill ,Ford &Walker model of

sales force motivation

Motivation

effort

performance
reward

satisfaction

Selecting an effective mix of

motivational tools
Financial rewards/compensation
Financial compensation plan
- salary
- commission
- bonus payment
- fringe benefits
- combination
Sales contest

Non financial
rewards/compensation
Promotion
Sense of accomplishment
Personal growth opportunities
Recognition
Job security
Sales meeting & conventions
Sales training programmes
Job enrichment
Supervision

Guidelines for motivating

salespeople
Difference between cant do and
wont do
Include individual needs into
motivational programmes
Pleateaued salepeople
Proactive approach

Sales Force
Compensati
on

Structure of sales force

compensation
Financial
- direct (salary, bonus
,commission)
- indirect (fringe benefitsretirement
plans , leave travel assistance)
Non financial

Objectives of a
compensation plan
The companys viewpoint
- to control salespeople activities
- to be competitive yet economical
- to be flexible
The salespersons viewpoint
- to have regular & incentive income
- to have a simple plan
- to have a fair payment plan

Designing an effective
sales compensation plan
Examine job description
Set up specific objectives
Decide level of pay/compensation
Develop the compensation mix
Decide the indirect payment plan
Pretest , administer and evaluate the
plan

Basic type of compensation plan Straight salary

Straight commission
- commission base
- commission rate
- commission start
- commission payout
Combination of salary ,commission ,bonus
- salary + commission plan
- salary + bonus plan
- salary + bonus + commission
plan
- commission + bonus plan

Evaluating & controlling

the performance of
salespeople
Purpose :
a. To determine how these sales people
have performed
b. Identifying the cause of unsatisfactory
performance
c. To decide the increment in pay & basic
incentives
d. To identify the salesperson who may
be promoted

Procedure :

STEP 1 Setting policies

Frequency of evaluation
Who conducts evaluation
MBO
Sources of information

STEP 2 Basis of performance

evaluation
Outcome/result based viewpoint
Behavior /activity based viewpoint
Both outcome & behavior based viewpoint

STEP 3 Establish performance

standards
STEP 4 compare actual
performance with
standard
Graphic rating method
Ranking
Behaviorally anchored rating scales
(BARS)
MBO
Descriptive statement
STEP 5 review performance

Guidelines :
a. Performance criteria should be
discussed
b. Salesperson should be asked to
review hs own performance
c. The sales manager should present
his views on the salespersons
review
d. Mutual agreement on the
performance must be established
e. If serious disagreement of opinion
occur , the sales manager should

STEP 6 decides sales mgmt action

& control
identify the problem areas
Find causes
Decide sales mgmt actions

Ethical and Legal

issues in Sales
Management

Ethics and personal

selling
Ethics are the principle governing
the behavior of an individual or a
group. These principles establish
appropriate behavior, indicating
what is right and wrong.

Ethics and personal

relationship
Ethical principles are particularly important in
personal selling. Most businesses try to
develop
long-term,
mutually
beneficial
relationships with their customers.
Salespeople are the official representatives of
their companies, responsible for developing
and maintaining these relationships.

 Legal principles guide market exchange

relationships. The issues governing
buying and selling in these relationships
are typically straightforward. The terms
and conditions are well defined and can
easily be written into traditional
contract.

 Strategic partnerships. The parties in these

relationships cannot accurately asses the
potential benefits.
Manipulation- eliminates or reduces the buyers
choice unfairly.
Persuasion-one is trying to influence the buyers
decision, not force it.

Factor Affecting Ethical

Behavior of Salespeople
Social norms

Personal goals
Customer goals

Ethical behavior

Company goals
Company policies
laws

Personal code of
ethics

Values of significant
to others

Personal, Company, and Customer Needs

CONFLICTING OBJECTIVES

Company
Objectives

Salesperson
Objectives

Customer
Objectives

Increase profits

Increase
compensation

Increase profits

Increase sales

Receive
recognition

Solve problems, satisfy

needs.

Reduce sales
cost

Satisfy customers

Reduce costs

Build long term

Customer
relationships

Build long term

Customer
relationships

Build relationships
with suppliers

Avoid legal
trouble

Maintain personal
code of ethics

Avoid legal trouble

 Research shows that a positive

ethical climate is related to job
satisfaction, commitment to the
organization, and intention to
stay among salespeople.

Company policies
To maintain good relationships with
their
companies
and
customers,
salespeople need to have a clear sense
of right and wrong so that their
companies and customers can depend
on them when questionable situations
arise.

Ethics policy for

Motorola salespeople
Improper use of company funds and
assets. The funds and assets of Motorola
may not be used for influential gifts,
illegal payments of any kind or political
contributions whether legal or illegal.
The funds and assets of Motorola must
be properly and accurately recorded on
the books and records of Motorola.

 Customer supplier/government relationships

Motorola will respect the confidence of its
customers, Motorola will respect the laws, customs
and traditions of each country in which it operates
but, in so doing, will not engage in any act or
course of conduct that may violate us laws or
business ethics. employees of Motorola shall not
accept payments gifts, gratuities or favors from
customers or suppliers.

 Conflict of interest
A Motorola employee shall not be a

supplier or a competitor of Motorola or

be employed by a competitor, supplier,
or a customer of Motorola. Shall not
have a relationship with any other
business enterprise that might affect
employees independence of judgment
in transaction bet. Motorola and other
business enterprise

Laws
Laws dictates which activities
society has deemed to be clearly
wrong, the activities for which
the
salespeople
and
their
companies will be punished.

Personal
ethics

code

of

Salespeople should abide by their own codes of

ethics, they are tempted to avoid difficult ethical
choices by developing "logical reasons for
unethical conduct.
3 choices when a manager asks to engage in
activity you consider unethical.
1) Ignore your personal values and do what your
company asks you to do.
2) Take a stand and tell your employer what you
think.
3) Refuse to compromise your principles.

SELLING ETHICS AND

RELATIONSHIP
The core principle at work in considering
ethics in professional selling is the principle
of fairness. The buyer has the right to make
the purchase decision with equal and fair
access to the information needed to make
the decisions. Further, all competitors should
a fair access to the sales opportunity.

RELATIONSHIPS WITH
CUSTOMERS
Areas of ethical concern involving
customers include using deception;
offering
gifts,
bribes
and
entertainment; divulging confidential
information and rights to privacy and
backdoor selling.

Deception
Deliberately presenting inaccurate
information, or lying, to a customer is
illegal. However misleading customers by
telling half-truths or withholding
important information is a matter of
ethics.
Bribes, gifts and entertainment
Bribes are payments made to buyers to
influence their purchase decisions.
Kickbacks are payments made to buyers
based on the amount of orders placed.

Buyers typically are sensitive about

receiving
expensive
gifts.
Some
guidelines for gift giving are as follows:
Check you motives for giving the gift.
Make sure the customer views the gift as a
symbol of appreciation and respect with no
strings attached.
Make sure the gifts does not violate the
customers or your firms policies.
The safest gifts are inexpensive business
items imprinted with the salesperson
company name or logo

LEGAL ISSUES

UNIFORM COMMERCIAL
CODE
UNIFORM COMMERCIAL CODE (UCC)
is the legal guide to commercial practice
in the united states. The UCC defines a
number of terms related to salespeople.
AGENCY
a person who acts in place of his or her
company is an agent. Authorized agents
of a company have the authority to legally
obligate their firm in a business
transaction.

 SALE
The UCC defines a sale as the
transfer of title to goods by the seller
to the buyer for a
consideration
known as price. a sale differs from a
contract to sell. Any time a
salesperson makes an offer and
receives an unqualified acceptance,
a contract exists. A sale is made
when the contract is completed and
title passes from the buyer.

 The UCC also distinguishes between an

offer and invitation to negotiate. A sales
presentation
is usually considered an
invitation to negotiate. An offer takes
place when the salesperson quotes
specific terms.
Salespeople are agents when they have
the authority to make offers. However,
most salespeople are not agents because
they have the power only to solicit written
offers from buyers. These written offers
called orders, become contracts when
they are signed by an authorized
representative salesperson company.

 TITLE AND RISK OF LOSS

If the terms of the c contract specify
free on board (FOB) destination, the
seller has the title until the goods are
received at the destination.
The UCC also defines when titles
transfer for goods shipped cash on
delivery (COD) and for goods sold on
consignment.
ORAL VERSUS WRITTEN AGREEMETS
In most cases oral agreements
betwenn a salesperson and a customer
are just as binding as written
agreements.

 Obligations and performance

When the salesperson and the customer
agree on the terms of a contract, both
firms must perform according to the
firms of good faith.

Warranties
A warranty is an assurance by the seller
that the products will perform as
presented sometimes a warranty is
called a guarantee.
The UCC distinguishes bet. two types of
warranties, expressed and implied. An
expressed warranty is an oral or a
written statement by the seller. An
implied warranty is not actually sated

ILLEGAL BUSINESS
PRACTICES
Business defamation occurs when
a salesperson makes unfair or untrue
statements to customers about a
competitor, its products, or its
salespeople.

 Reciprocity
Is a special relationship in which
two companies agree to buy
products from each other.
Reciprocity is illegal if one
company
forces
another
company to join the agreement.
Reciprocity is legal only when
both parties consent to the
agreement willingly.

 Tying agreements
A buyer is required to purchase one product
in order to get another product.

Conspiracy and collusion

An agreement between competitors before
customers are contacted is a conspiracy
whereas collusion refers to competitors
working together while the customer is
making a purchase decision.

Restrictions on resellers
It was illegal for companies
minimum
price
below
distributors or retailers could
products, this practice is
price maintenance

to establish a
which
their
not resell their
called resale

 Spiff stands for special promotion

incentive a fund, and dates back a time
when there was more selling by retail
salespeople.

Price Discrimination
price discrimination as a seller giving
unsatisfied special prices , discounts or
services to some customers and not to
others.

Privacy laws
Limit the amount of information that a firm
can obtain about consumer specify how
that information can be used or shared.

International ethical and

legal issues
Lubrication involves small sums or gifts,
typically made to low ranking managers or
government or officials, in countries where
these payments are not illegal. The
lubrication payments are made to get the
official or manager to do the job more
rapidly.
Subordination involves paying larger sums
of money to higher ranking officials to get
them do something that is illegal or to
ignore an illegal.

RESOLVING CULTURAL
DIFFERENCES

CULTURAL RELATIVISM is the

view that no cultures ethics are
superior.
EHICAL IMPRIALISM is the
view that ethical standards in
ones home country should be
applied to ones behavior across
the world.

Ethical
Ethical and
and Legal
Legal Issues
Issues in
in Personal
Personal
Selling
Selling
Strict codes of ethics for sales people.
Sales managers must take responsibility
for the proper behavior of their
salespeople, and they must lead by
example.
Salespeople should be honest in their
dealings with customers and be informed
of relevant laws governing their business
situation.

Unethical
Unethical Sales
Sales Behaviors
Behaviors
Include:
Include:

Exaggerating features and benefits

Lies about availability
Lies about competition
Sells something people dont need
Giving false answers to questions
Falsifying product testimonials
Passing blame for their own mistakes
Pose as market researcher when doing phone
sales
Misrepresent warranties & guarantees
Make nonbinding oral promises
Bending company rules
Selling dangerous or hazardous products