Selling & Sales

Management
 Target Market

Product Place Promotion Price

Personal Mass Sales

Selling Selling Promotion

Number and
Selection and Compensation Personal
kind of
training and motivation selling
salespersons
procedure approach techniques
needed
Exhibit 15-1
15-3
 Basic Sales Tasks

?????? Order-Getting
Order-Getting

??????
?????? Order-Taking
Order-Taking

??????
?????? Supporting
Supporting

15-4
Basic sales tasks (cont’d)

 Supporting salespeople
 Missionary salespeople
 Technical specialists
Sales Force Structure

 Geographic structure

 Product structure

 Customer/market structure
 major accounts sales force
Sales Force Structure
(cont’d)
 Selling function
 developing new accounts
 servicing existing accounts
 telemarketing
Recruiting & Selecting
Sales Representatives
 Costs
 training costs
 lost sales from choosing the wrong person

 Characteristics of successful sales people

 empathy
 ego drive
Recruiting & Selecting
Sales Representatives
 Job description –starting place for
recruitment
 Should address subjects such as:
 establishing new accounts vs. servicing existing
accounts
 developing long-term relationships vs. short-term
demand
 specific tasks to be performed
Training Sales
Representatives

 Training programs should address:

 Company policies and procedures
 Product information
 Customer information
 Selling techniques
Compensation Plans

 Compensation plans
 Straight commission
 Straight salary
 Salary plus commission
 Draw against commission
 Bonus plan
Compensation Plans
(cont’d)

Total Comp.
Executive $108,572
Top performer $125,844
Mid-level $ 88,734
Low-level $ 57,571
Average Rep $ 84,004

Source: Sales & Marketing Management, May 2001, p. 47

Compensation Plans
(cont’d)

Industry Total Sales Rep

Compensation

Computer Software & Services $115,680

Diversified/Prof. Services $ 87,678

Manufacturing $ 74,139

Telecommunications $115,576

Source: Sales & Marketing Management, May 2001, p. 49

Compensation Plans
(cont’d)

Company size in Avg. Sales

annual revenue Rep. Comp.

$1 - $10 million $ 82,632

$10 - $50 million $ 78,980
$50 - $250 million $ 90,777
$250 million - $1 billion $ 89,458
$1 – $10 billion $ 83,708

Source: Sales & Marketing Management, May 2001, p. 49

Compensation Plans
(cont’d)

Industry Total Sales Executive

Compensation
Computer Hardware &
Electronics $129,527
Computer Software & Services $137,410
Consumer Products/Retail $ 96,711
Diversified/Prof. Services $ 99,750
Manufacturing $ 99,866
Media $ 86,885
Telecommunications $118,085

Source: Sales & Marketing Management, May 2001, p. 48

Compensation Plans
(cont’d)

Company size in Avg. Sales

annual revenue Exec. Comp.
< $1 million $ 85,802
$1 - $10 million $ 98,587
$10 - $50 million $ 117,500
$50 - $250 million $ 113,211
$250 million - $1 billion $ 117,923
$1 – $10 billion $ 121,880
> $10 billion $ 113,448
Source: Sales & Marketing Management, May 2001, p. 48
Compensation Plans
(cont’d)
 Selecting compensation plans

 Control
 over selling activities
 over nonselling activities

 Incentive
Compensation Plans
(cont’d)
 Selecting compensation plans (cont’d)
 Sales objectives
 establishing new accounts vs. servicing existing
accounts
 developing long-term relationships vs. short-term
demand
 Total selling costs
 Flexibility in selling costs
Compensation Plans
(cont’d)
 Selecting compensation plans (cont’d)

 Simplicity
 Differences in products
 profitability
 promotion required
Compensation Plans
(cont’d)
 Selecting compensation plans (cont’d)

 Differences in territory potential

 Differences in professional development of
the salesperson
 Territory potential approach vs. workload
approach to territory management
Compensation Plans
(cont’d)
 Selecting compensation plans (cont’d)

 Ability to attract and retain employees

 Competitors’ compensation plans

Motivating Sales Forces

 Compensation plan
 Opportunities for advancement
 Organizational climate
 Sales quotas
 high-quota school of thought
 low-quota school of thought
 Other incentives
 sales contests & meetings
Evaluating Performance

 Bases for evaluation:

 % of quota

 Salesperson to salesperson comparisons

 Current-to-past sales comparisons

Evaluating Performance
(cont’d)
 Bases for evaluation (cont’d):
 Qualitative appraisal
 attitudes
 presentation ability
 sales skills
 dress
 promptness
 etc.