Designing and Administrating Sales Force

The face of any organization is the sales force. Companies spend a considerable amount of time and money on
sales force rather than on any other promotional activity. However, sales force is expensive and companies are
looking forward to managing them in an efficient and effective manner.

Designing of the Sales Force

Sales force is linking between companies and customer. Therefore, companies have to be careful in designing and
structuring sales force.

1. The first step is setting out an objective for sales force. Earlier companies had a single objective increasing sale
making it objective also for sales people. Sales people are asked to perform a search for prospective clients or
lead. Sales people are asked to balance time between a prospective customer and current customer. Effective
communication of product and services is essential to close the deal. Sales people also play an important role in
after sales service and can make a difference for the company. Sales people are eyes and ears of the company in
the market gathering information about competition and customer changing demands.

2. The second step is use sales people strategically. Sales people have to combine efforts with other team
members to achieve the objective. Sales people should be aware how to analyse market data been provided and
convert them into marketing strategies.

3. The third step is deciding the structure of the sales force. The structure of the sales is dependent on the
strategy followed by the company. Common sales force structures are as follows:

Territorial structure is used where every sales representative is assigned specific geographical area. This structure
is preferred for building relationships with locals.

• Product structure is used for complex and un-related product portfolio. Here the sales people are directly
associated with research and development of the products.

• Market structure is used if the companies are operating different industry or market segments. Every sales
force specializes in a definite market and helps push a product efficiently across the given market.
However, the disadvantage would arise if customers are located over a wide geographical area.

• Complex structure is used when companies are in business of selling complex product to different
customer across a large geographical area. Here sales force structure is a combination of other structures
discussed.

Once the structure is designed companies need to decide with respect to the size of the sales force. The size of
the sales force is dependent on the market size and number of customers.

4. The next step is to design compensation for the sales force. Compensation plays a big motivational factor for
sales people. Companies follow a structure of a fixed amount plus a variable amount depending of success
achieved in the market. Allowances play an important factor in the salary owing to continuous travel and market
visits.

Managing Sales Force Integral part for success of marketing strategy is management of the sales force. The
management of sales consists of following:-

1. Recruitment is at the centre of an effective sales force. One approach in the selection is asking a customer
what characteristics they look for in a sales representative. Companies develop selection procedure where
behavioral and management skills are tested.
 2. Training is essential to remain ahead of the competition. Sales force needs training before entering the
market as well as training at different stage of the product life cycle.

3. Supervision on sales force is decided on the profile of product portfolio. A general supervision is
maintained with respect to sales people dealing with potential clients. Another supervision is related to
efficient time management from preparation of client call to closing of the deal.

4. Motivation is a key aspect for management of the sales force. Here compensation plays an important in
driving up the motivational level. Compensation can be assigned based on sales quota. Other motivational
tools are social gathering and family outing.

5. Evaluation is essential to management of a sales force. Sales reports sent by the sales force serve a good
starting point of evaluation.

6. Art of negotiation and relationship marketing these two are the important aspects of successful sales
representative and long term benefit for the company.

5. Training Sales Personnel

Sales organizations have their own option over the variety of methods and tools of training used for the sales
force, depending on its needs and resource constraints. These salesmen training methods may be divided into two
individual training methods and group training methods.

Salesmen Training: Individual Methods

Individual sales training methods are micro level training from the angle of each salesman. It is highly personalized
which involves direct interaction between the trainer and the trainee. This method is most suitable where sales-
force to be trained is limited and needs individual intensive attention. There are two such methods namely - on
the job training and programmed instruction method.

1. On the job training

In this method, the salesman is given the opportunity of observing and performing the selling job of a typical
salesman. Keen observation and active participation are two important aspects of learning the job. The trainer
observes the performance of the trainee. The trainer corrects him in case of need. This method is also known as
field training method.

2. Programmed instruction method

In programmed instruction method, the total subject-matter of training is broken down into chunks called
'Frames' the numbered instructional units. Each frame contains specific points, questions. problems and solutions.
The trainee is expected to learn through these frames by solving the problems and then verifying them with
solutions. He repeats the frame till he gets correct solutions to his problems.

Salesmen Training: Group Methods

1. Induction and orientation training

When a newly appointed employee reports for work, he must be assisted to get acquainted and adjusted with
work environment. Thus, it is necessary to give him a friendly welcome when he joins the organization, to get him
introduced to the organization and to help him to get a general idea about the rules and regulations, working
conditions, etc.

2. On-the-job training
This is considered to be the most effective method of training salesmen. Under this method, the salesperson is
trained on the job at his place of work. One of the easiest ways is to give him on-the-job coaching. This enables
him to get training under the same working conditions and with the same process, materials and equipment that
he will be using for the job execution. The responsibility of training may be given to his immediate supervisor who
knows exactly what he should learn.

3. Off-the-job training
When the job is complicated and requires much technical information or when on-the-job experience has to be
supplemented by further knowledge and experience, the employees are required to attend training courses in
institutions outside the organization.

Training in a class-room is preferable as the atmosphere is congenial and there would be no fear of interruption of
work. In the classroom, actual working conditions may be reproduced to enable the trainees to acquire actual-job
experience.

Another increasingly popular technique of training is simulation experience. The widely used 'case study' method
is a means of simulating experience in the classroom. Similarly, there may be group discussions, brainstorming
sessions, and seminars on various problems relating to the job.

4. Organization of Lectures
Under this method, lectures by experts on various aspects of selling are organized by the firm for the benefit of
the salesmen (to make the salesmen know the principles of selling). The salesmen attending the lectures take
down notes of the lectures. They also take part in the group discussions, seminars and written tests that follow
the lectures.

The main advantages of this method are that salesmen get exhaustive information about the products, markets,
techniques of selling, etc., and it is an ideal method of imparting factual information. However, this method
suffers from a serious defect. That is, lectures provide the salesmen only theoretical knowledge of salesmanship.
They do not provide practical training to the salesmen.

5. Conducting of Sales Conferences and Seminars

Under this method, the salesmen are invited to attend the sales conferences at periodical intervals. In such
conferences, selling techniques, selling policies of the firm, complaints received from the customers, competition
faced by the firm, company's advertising programme, difficulties faced by the salesmen, etc., are discussed.

Merits of conducting sales conferences and seminars -

The chief merits of this method are given below:

1. It helps the salesmen to think logically and take balanced decisions.
2. It facilitates exchange of ideas and experiences among the participants. This exchange helps to broaden
the knowledge of the salesmen.
3. Salesmen are able to get much information about the latest techniques of selling.
4. It brings administrative staff and sales staff together. This contributes to cordial relationship between the
staff of the two departments.
5. It helps to find out solutions by group discussions, for problems for which solutions could not be found out
by each individual salesman.

However, this method also suffers from certain limitations. It is a slow and time-consuming method, besides being
very expensive.

6. Supplying Sales Manuals

Under this method, sales manuals are prepared and distributed to the salesmen for their guidance. A sales
manual is a book prepared by experts to meet the specific needs of the salesmen. Sales manuals contain detailed
information, such as the history of the firm, description of the job, product specifications, their prices, sales
policies of the firm, selling techniques, etc.
The chief advantages of this method is that the sales manuals serve as ready reference material for the salesmen
at work. However, the preparation of sales manual will involve much expenditure.

7. Arranging Correspondence Training

Under this method, postal tuition to the salesmen working in different sales territories is given. The training office
of the firm prepares lessons on principles and techniques of selling and sends the lessons to the salesmen by post.
The salesmen study these lessons thoroughly. Doubts if any, are referred to the training office by the salesmen by
post and clarifications for the doubts raised are received from the training office by post.

8. Sending the Salesmen to institutions Offering Courses on Salesmanship

Under this method, the firm sends the salesmen to institutions which conduct special courses on salesmanship.
The tuition fees and other incidental expenses of the salesmen attending such courses are borne by the firm. This
method is, no doubt, useful. But it is practicable only in countries like the U.S.A., the U.K. etc., where there are a
large number of institutions offering specialized courses on salesmanship.

In countries like India where there are not many specialized institutions offering such courses, this method may
not be suitable.

9. Arranging for Apprenticeship

Under this method, a newly appointed salesman is made to work as an apprentice under a senior salesman to
learn the art of selling. The newly appointed salesman works under the senior salesman, observes his work and
learns the art of salesmanship. This method helps the salesman to observe and learn the work. But the serious
drawback of this method is that some seniors may not teach all the tricks of the trade to the apprentice.

10. Arranging for Field Training

Under this method, the salesmen undergoing training accompany the trainer (i.e., an experienced senior
salesman) who actually approaches the prospects with catalogues, products, etc. The trainee salesmen observe
the various steps of the sales talk made by the trainer.

The trainer, after the conclusion of his sales with the prospects, explains to the trainee salesmen the various
stages in his sales talk and the selling points he emphasized during the sales talk. After this, the trainee salesmen
are asked to approach the prospects and do the job of sales talk, while the trainer observes the whole process.

This gives practical training to the salesmen. However, it is a time-consuming process besides being costly.

11. Provision of Visual Training

Under this method, through visual training aids, training is given to the salesmen. Visual, audio-visual and audio
aids, such as slides, etc., are used to demonstrate the steps involved in the selling process to the salesmen.
Pictures depicting the various stages of the work of a successful salesman are shown to others during certain
hours once or twice a week. Tape recorders, record players, etc., are used to record the talks of the salesmen so
as to make them improve their style of speaking.

Advantages
Visual aids have the following advantages:
1. Topics which cannot be made clear by explanation can be made very clear through visual aids.
2. Visual aids create more interest in the trainees.
3. They give some sort of practical knowledge to the trainees.

12. Brainstorming
Under this method, five or seven trainee-salesmen are grouped under the chairmanship of an experienced
salesman. The chairman gives problems to the trainees and the trainees try to find out the solutions to such
problems and write the same on notebooks. Either the chairman or the top executives examine the answers and
give instructions wherever necessary.

13. Case Discussion Method

The case discussion method is very effective because individual cases and problems are discussed between
seminar executives and salesmen. Before discussing the actual cases, some hypothetical cases are framed and
discussed at a higher level. The discussion is designed to involve all the salesmen with a view to finding suitable
solutions. Sales trainees should identify the problems and choose specific solutions from among the different
alternatives available to them.

Sales Force Motivation

Sales is one of the toughest jobs out there simply because of the number of rejections involved to reach a sales
target. You have to go against your better nature to make a sale.

You need guts to pick up the phone, not knowing what your potential customer might answer.

You need guts to approach someone whom you do not know, just to pitch your product.

And you need persistence to keep doing it time and time again, so that you become an excellent sales person.

Sales Motivation
On an average, only a few prospects out of hundred actually become clients. But because there are sales targets
for your sales staff, they have to keep approaching new customers so that they can achieve sales targets. Because
of this unsure and hectic life of sales, where performance is completely measurable against results, your sales
staff requires sales motivation from time to time.

There are various ways to provide sales motivation to your staff. One core method used for motivation of any kind
is "Recognition, Rewards and remuneration". This can loosely stand for

 Recognition-Growing people in your organization

 Rewards - Rewarding them for their work and
 Remuneration - Offering incentives or salary hikes to appreciate them.

This article deals mainly with the objectives of sales motivation. There are numerous reasons that you will want
your staff motivated for sales. Sales motivation is not required only when the salesman is going through a slump.
Sales motivation is required at all times, and it becomes the culture of an organization to keep sales force
motivated.

Without further ado, let us check out the Objectives of sales motivation and why sales motivation is important.

Objectives of Sales Motivation

1) To keep the spirits up

Due to the reasons mentioned above (cold calls, target pressure) a sales person might become demotivated and
disinterested much easier than any other employee in the organization. As a result, sales motivation is required
maximum in the sales department so that the sales staff has a positive spirit towards sales.

For example - If your sales employee is informed that he will be getting 3 months’ salary at once on over-achieving
a sales target, he will always have his spirits up because he has received hope from the company in the form of
remuneration or money he will be paid. This hope keeps his spirits up. Similarly, winning an award or any other
type of action can result in sales motivation of your employees, keeping the spirits high.

2) For the growth of the company and to achieve targets

This is a no brainer. If your sales force is positive towards the target they are asked to achieve, your organization
will get better revenues from sales. More the revenues from sales, more is the bottom-line of the company and
more can be the future investments in better products or services.
There are many firms which have produced good products but have lost market share due to poor sales. Thus,
motivating your sales force is important for the growth of the company and there is actual profit when you are
investing in incentives for the sales force.

3) To show importance of sales in the organization

A reason for sales guys to be demotivated is that they don't know whether they are in the right position in their
life. However, if you communicate to your sales employees, of their importance in the organization and how they
are helping this whole big machinery to move forward, the result will be a higher motivation of sales staff. This
ultimately helps the company move forward.

4) To make them brave.

As I said above, it is not easy to keep meeting new customers and to keep pitching in front of people you have
never met before. In fact, over a period of time, the fear of rejection can paralyse sales people and they might
start resisting the sales process altogether. A little sales motivation in the form of the three R's, can go a long way
in making the salesperson face their fears again and to be brave in front of stiff sales targets.

5) To improve co-ordination within the team

A sales person might be frustrated or ignored when he is demotivated or when he is not achieving his sales
targets. In a high-performance situation like sales, poor performance can affect an individual for the worse and
make him inferior to his high performing team.

Providing sales motivation and backing to the sales person (that such things do happen) can increase his
confidence. When the whole team is motivated, the bonding and co-ordination between the team rises and they
help each other out, thereby helping your organization in the long run.

6) To develop their skills

Sales motivation can help sales person to improve their skills so that they perform better for the organization.
These skills may be various such as their soft skills, their computer skills, their product knowledge, their grooming
or whatnot. In essence, if the sales person wants to perform better, and he is motivated to do that, he will
automatically improve his own skills.

7) To reach more customers and cover more territory

We always demand MORE from the sales person. We want more sales, we want more territory to be covered, we
want more dealers, we want more distributors etc. This naturally puts the sales person under too much pressure.

Although pressure is negative in nature, sales motivation can be positive. Providing a bit of monetary incentives
will motivate the sales person to reach more customers and possibly convert them. At the same time, such an
approach will also help the company to cover more territory and perform better in new and old regions.

8) To introduce a new product in the market

Sales motivation in the form of incentives is most needed when the going is tough. Whenever a company enters a
new territory or brings a new product in the market, then the sales staff has to work very hard in convincing their
customers or their channel into buying the product. At such times, sales motivation is important and should be in
the form of remuneration as well as recognition. This motivates the sales staff to perform better and capture
more market share for the new product or market.

9) To maintain a sales pipeline

A motivated sales person is more likely to perform for a long period of time. This happens because the sales
person is reaching his targets and he can plan for the future. This is exactly what you want from a sales person.
Because of the fundamental of sales pipeline, we know that a sales person will always have a list of client which
are hot, normal or cold prospects.
However, it is the job of the sales person to find more and more prospects so that he can segment them and
target the hot prospects regularly. To maintain such a sales pipeline requires that the executives be motivated
regularly. Furthermore, by ensuring the maintenance of a strong sales pipeline, even the company will move
forward very fast. Aggression and results are two common factors of a successful sales department. If you channel
this aggression into building sales pipelines, you are sure to get better results.

10) To retain employees and reduce attrition

Demotivated people try to change their working environment and the best way to do so is to leave the company
and start fresh somewhere else. The total number of employees leaving the organization over a period of time is
known as employee attrition. If a company has a high attrition rate, it means their sales staff is not motivated
enough to stay back longer with the company.

On the other hand, a low attrition rate means that there is enough sales motivation in the staff and that they like
staying within the company. The objective of sales motivation is to reduce the attrition rate of the company and
to ensure that the sales staff stays longer with the company.

When attrition happens, you have to recruit new employees in the company. These new employees come with an
associated cost because they have to be trained about the products and services ground up. Furthermore, they
will take time to settle in the organization and to start performing in terms of achieving sales figures. This results
in a lot of opportunity loss for the company. Hence, we can say that sales motivation is important because it
reduces the attrition in a company which is especially needed in the sales department where pressure is high.

11) To perform in non-season

Lastly, sales motivation in the form of remuneration or recognition is needed when the sales people have to
perform in non-season. There are many brands which are seasonal. For example - Ice cream and Cola sales drop
drastically during the rainy season or during winters. At such time, the sales people have to be motivated to keep
performing.

In fact, during non-seasons the motivation needs to be in form of rewards and recognition. Monetary motivation
does not help much at such times because even the sales people know that the targets are unlikely to be achieved
or are going to be very hard to achieve because it is non-season. However, many companies have tried monetary
motivation as well and it has worked out for them during non-season.