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CHAPTER17ManagementoftheSalesForce1LearningObjectivesDescribehowleadershipskillscanbeappliedtosalesmanagementListanddiscussthequalitiesofaneffectivesalesmanagerDiscussrecruitmentandselectionofsalespeopleDescribeeffectiveorientationandtrainingpractices2LearningObjectivesExplaineffectivesalesforcemotivationpracticesDevelopanunderstandingofselectedcompensationplansListanddiscusscriteriaforevaluatingsalesperformance3LeadershipTheprocessofinspiring,influencing,andguidingemployeestoparticipateinacommoneffortInvolvesaseriesofskillsthatcanbeacquiredthroughstudyandpracticePeoplewhorisetothepositionofsalesmanagermustunderstandthedifferencebetweenleadershipandmanagement4SalesManagementTheprocessofplanning,implementing,andcontrollingthepersonalsellingfunctionThesalesmanagerplans,recruits,trains,budgets,developscompensationplans,andassessessalesforceproductivitySuccessfulsupervisorymanagementpersonnelhavecertainbehaviorsincommon5EffectiveLeadersDemonstratethefollowing:StructureConsiderationSituationalleadershipTestofcharacterCoachingforpeak

performanceSamuelPalmisano,CEOofIBM6BasicLeadershipStylesFIGURE17.27StructureEvidenceincludes:RegularplanningExpectationsclearlycommunicatedPrompt,firmdecisionsRegularperformanceappraisals8ConsiderationEvidenceincludes:RegularandeffectivecommunicationEachsalespersontreatedasindividualRewardgoodperformanceoften9SituationalLeadershipLeader’sstyleshouldmatchsituationDevelopstrongethicsandcharacterJaimeBarauh,DistrictSalesManager,McKessonPharmaceutical10PeakPerformanceCoachingHelpsalespeoplerecognizeneedtoimproveHelpdeveloptheircommitmenttoimproveDocumentproblemsandexploresolutionsBrianTracy’ssalestrainingprogramhastrainedmorethan1,000,000salespeople.Completionoftheprogramresultsinadesignationof“CertifiedSalesProfessional.〞Seethe

Website11RecruitmentandSelectionDeterminejobrequirementsSearchforapplicantsSelectbest-qualified

applicant12DetermineJobRequirementsNeworestablishedterritoryNeworwell-establishedproductWorkindependentlyorcloselywithmanagerLikelihoodoftravel,transfer,promotion13SearchingforApplicantsWithincompanyCollegesanduniversitiesTradeandnewspaperadvertisingEmploymentagencies/listingsInternetservices/searches14TheValueoftheBestSalespeopleCo-CEOsJanaMachinandJuliaChavezsay,“Havingthebestsalespeopleisimportant.〞Inthepastyear,75ofthese“bestofclass〞haveblazedtheirwayintochainslikeTarget,ToysRUs,Wal-Martandothers.15SelectingApplicantsSelectioncriteria:Interest,enthusiasm,highmotivationIntegrityKnowledgeofbusiness,market,consumersCustomerorientation/relationshipsPsychologicaltests(usedinconjunction)16OrientationandTrainingProvidethoroughorientationbeforepersonbeginsworkInitiatetrainingprogramtohelppersonachievesuccess...tasks,execution,roleSizeoffirmshould

notdictatescope

oftraining17AFrameworkforTrainingSalespeopleFIGURE17.3Source:H.F.(Herf)MacKenzie,SalesManagementinCanada.(Toronto:PrenticeHall,2021),p.22918SellingPowerSellingPowermagazinehassomeofthebesthiringandtrainingproductsavailabletoassistsalesmanagers.Seethe

Website19SalesTrainingProgramKnowledgeofproductline,territory,businesstrends,firm’smarketingstrategyAttitudestowardthecompany,products,customersSkills:applyingsellingprinciplesandpractices20SalesForceMotivationInternalmotivationIntrinsicrewards:achievement,challenge,advancement,growth,enjoymentofworkOftenhavelong-termpositiveimpacts21SalesForceMotivationExternalmotivationActionstakenbyfirmtorewardsalesperformanceSalescontests,

incentiveplans,

cashbonuses22EffectiveExternalRewardsDesignprogramsthatfocusonseveralimportantaspectsofthesalesperson’sjobEvaluateincentive

programsoftenAvoidunrealisticgoals23CompensationPlansCompensationpracticesvaryUsuallycombinationof:Directcompensation:salaryandcommissionsIndirectcompensation:pension,insuranceplans,vacations24Icelandic’sIncentiveIcelandic?offersaveryattractiveincentiveprogramtoitsdistributionrepresentatives.Seethe

Website25FiveCompensationPlansStraightcommissionCommissionplanwithguaranteedsalaryordrawprovisionCommissionswithdraworsalaryplusbonusFixedsalaryplusbonusStraightsalary26StrategicCompensationPlanningSpecificproductmovementPercentagesalesincreaseEstablishnewaccountsIncreasesalesactivity27CompensationPlanGuidelinesDefinemarketingobjectives—plancomplementsobjectivesFieldtestcompensationplanExplainplantosalesstaffChangeplanasconditionswarrant28AssessingProductivity:QuantitativeCriteriaSalesvolumeindollarsSalescomparedwithlastyearVolumebyproductorlineNumberofnewaccountsAmountofnewaccountsalesNetprofitoneachaccountNumberofcustomercallsmade29AssessingProductivity:QualitativeCriteriaAttitudeProductknowledgeCommunicationskillsPersonalexperienceCustomergoodwillgeneratedSellingskillsInitiativeTeamcollaboration30PromotingSalespeopleChally’sresearchsuggeststhedecisiontopromotesalespeopleintosalesmanagementshouldnotbetakenlightly.Seethe

Website31

KeyConcept

DiscussionQuestions

DescribehowleadershipskillscanbeappliedtosalesmanagementListanddiscussthequalitiesofaneffectivesalesmanagerDiscussrecruitmentandselectionofsalespeop

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