Sales Force Management:

Recruitment & Selection of Sales

Personnel
Salesforce Estimation
• Workload Method
• Breakdown Method
• Incremental Method
Recruitment ( chap 11 )
• Importance of recruitment

• Determining specific requirement of sales

personnel
• Mental Aptitude Dimensions
• Personality Dimensions
Requirements in Sales Personnel :
Mental Dimensions

• Mental Alertness
• Communication Skills
• Numerical Ability
• Mechanical Interest
• Inquisitiveness
• Recall Aptitude
Requirements in Sales Personnel :
Personality Dimensions
• Sociability
• Enthusiasm
• Dominance
• Competitiveness
• Emotional Maturity
• Honesty/ Character Strength
• Cynicism
• Work Habits
• Work Motivation
• Factors affecting Recruitment & Selection
procedure of company

• Pre- Recruiting Reservoir

• Volunteer walk-ins
• Chance encounters
• Centres of influence, developed by sales executives
Recruitment: Sourcing the candidates
• Internal Sources
• Salespersons
• Executives
• Internal Transfers (Rerecruiting)

• External Sources
• Response to advertisement
• Direct unsolicited applications
• Employment Agencies/ Job websites
• Salespersons making call on the company
• Sales force of competing/non-competing companies
• Customers of the company
• Intermediaries of the company
• Educational Institutes
• Job Fairs
Selection Process
 Screening the candidate (resume)
 Formal Application Form
 Selection Test :
Personality Test
Honesty Test
Job Knowledge Test
Psychometric Test
Proficiency Test
Cognitive Ability Test
Interest Test
Test of Ability ( Mental Ability Test, Aptitude Test)
 Interview
Patterned (Structured) Interview
Unstructured Interview
Non Directive Interview
Interaction (Stress) Interview
Rating Scales
 References (Back ground Check)
 Credit Checks
 Letters of Recommendation
 Physical Examination
 Making Employment Offer
Sales Training ( pg. 200 )
• Benefits of sales training

• Types of sales training

• Initial sales training
• Follow-up (Refresher) training
• Training to distributor sales force
• Training to customers
Building Sales Training Program
• Five Decisions
( A-C-M-E-E ); Aim, Content, Method, Execution, Evaluation

(1) Defining training aims

training objectives; review sales activities; identify training needs;
identify extent of training

(2) Decide Training Content

Initial training (Product; Sales technique; markets; company
information)
Continuing training
(3) Selecting Training Method
Group Methods : Lecture; Role Playing; Gaming; Case Discussion;
Impromptu Discussion
Individual Methods : Personal Conference; Programmed Learning;
On-the- job training; Correspondence Courses

(4) Execution of Training

Who is to be trained?
Who is to train? (Sales Executives, Personnel department
executives, Sales trainer from training
department; outside experts)
When will training take place?
Where will training take place?
( Centralized training; decentralized training; Third Party
training; Training Tours; On-site training; training thro’
postal material; satellite-delivered training; On-line job
training)

Instructional Material & Training Aids

(5) Evaluating Training Program

Kirkpatrick’s four stage model

 Sales person Reaction

 Knowledge Execution
 Behavioural Change
 Organizational outcomes
Sales Meetings
• (A-C-M-E-E) of sales meetings

• National Sales meetings

• Regional Sales meetings

• Local Sales meetings

• Remote control & Traveling sales meetings

• Close circuit TV/ Telephone/ at home/ traveling
sales meeting
Motivating the Sales force
Concept of Motivation
• A goal directed behavior

• A function of need, drive & goal

Why Sales persons require additional
Motivation?
(1) Nature of sales job

(2) Sales person’s boundary position & role conflicts

conflict of identification
advocacy conflict
conflict in role as customer & company advocate & own
interests

(3) Tendency towards Apathy

(4) Absence of team spirit in sales department

• Need Gratification & Motivation
Motivational Theories
• Meslow’s needs hierarchy theory
• Hertzberg two factor theory
• Goal setting theory
• Expectancy theory
• Job design theories
• Achievement motivation theory
Motivation & Productivity of Sales
Performance in achieving targets serves as indicator of
productivity

Sales productivity = sales revenue/ sales expenses

Motivating the sales personnel as
different stages of their career

• Exploration stage

• Establishment stage

• Maintenance stage

• Disengagement stage
• Motivation & Interdependence

• Motivation & Leadership

• Motivation & Communication

• Interpersonal contact
• Written communication
Compensating Sales force (chap 13)
• Objectives of compensation plan

• Characteristics of compensation plan

• Fairness
• Flexibility
• Leads to achievement of company objectives
• Act as an incentive & motivation
• Easy to understand
• Easy to administer
Designing Compensation Plans
• Define sales job

• Determine specific objectives

• Consider company’s general compensation structure

• Consider compensation pattern in industry

• Determine compensation level

• Provide for the various compensation elements

• Determine special company needs

• Consult present sales force

Designing Compensation Plans
• Determine method of payment
• Salary
• Commission
• Bonus
• ESO
• Special prizes
• Drawing account
• Special cash incentive
• Non cash incentives
• Fringe Benefits : Social security, Retirement benefits, Insurance &
Medical, Organization dues, Holidays, Other
benefits etc.
• Sales force expenses

• Reduce plan to writing & Pretest it

• Revise the plan

• Implement plan and provide for follow –up

Types of Compensation Plans
• Straight Salary Plan

• Straight Commission plan

• Combination salary plan

Sales Contests
• Objectives of sales contests

• Planning Sales contest

• Contest Format ( Direct / Novelty)
• Contest Prizes
• No. of Prizes & how to award
• Duration of sales contest
• Promotion of contest

• Evaluation of sales contests

• Short & long term effect
• Design
• Fairness
• Impact on sales force morale
Sales force Expenses
• Expense Plan

• Reimbursement of sales expenses

• Sales person pay all expenses
• Company pays all expenses
• Company partially pays expenses
• Flat expense account
• Flexible expense account
• Honour System
• Expense quota
Performance Appraisal
• Procedure
– Establish policies for performance evaluation and
control
– Decide bases for salesforce performance evaluation
– Establish performance standards
– Compare actual performance with standards
– Review performance evaluation with salesforce
– Decide sales management action and control