Personnel mgt.

in selling
 Sales force mgt.
• Determining job objectives
• Duties and responsibilities
• Performance criteria
• Reporting relationships
 Activities in sales force mgt.
• Job analysis
• Job description (How it is to be done)
• Job specifications (Qualifications required to do that
job)
• Recruitment
• Selection
• Training and supervision
• Performance evaluation
• Compensation and motivational programs
 Economics of effective sales force mgt.
• Fixed and variable expenses
• Fixed: Salary, travelling and advertising expenses
used to assist the sales force
• Variable: Sales commission, training, motivating,
supervising and controlling
• Per unit variable expenses are lower for productive
sales person than for unproductive sales person
Total expenses per unit of product sold vary inversely with
the productivity of the sales person
 Rate of sales personnel turnover
• It is a measure of the quality of sales force mgt.
• This is the ratio of separation per 100
salespeople
• If a company has 250 sales persons and 20 leave
during the year, the rate of turnover is ___ %.
• No. of SPs leaving the company x 100
Total sales force in the company
• Higher the turnover rate, more the expenses of
the company
• Following are the expenses:
– Cost of recruitment and selection
– Ratio of selling expenses to sales is high in case of a
new recruit
– Lost business
– Decline in customer goodwill, etc.
• But if an ineffective SP leaves a company earlier,
its better
• Also, the age of the SPs should be spread over a
wide range.
 Causes of turnover of sales personnel
Controllable actions by company Non-controllable actions by
company
Poor recruiting Retirement
Improper selection and assignment Death
Training deficiencies Illness or physical disability
Inadequate supervision and Personal and marital difficulties
motivation
Breakdown in communication Dislike for the job
Unsatisfactory performance – Better opportunities elsewhere
customer complaints, etc.
Discharged for a cause like
dishonesty, alcoholism, etc.
Cutbacks in personnel
Transfer to another dept.
Promotion to a higher position
 Sales job analysis
• It is the critical first step in modern sales force
mgt.
• It is a systematic collection and study of
information on particular sales job
– To whom does the SP report?
– Who reports to this SP?
– What products does this SP sell?
– What reports should he make and submit to
whom?
– What are the duties and responsibilities of the SP
 Outcome of job analysis
• Detailed picture of the roles that the SP plays
in an organization:
– Trade selling
– Missionary selling
– Technical selling
– New business development
– Combination of two or more of the above
 Sales job description
• A statement covering:
– Reporting relationship of a particular job to other
jobs
– The job objectives
– Duties and responsibilities
– Job performance criteria
– Compensation system
 Sales job specifications
• Determine the qualifications required to perform the
stated job, duties and responsibilities
• Decide which qualification the new recruit should
possess and which can be imparted through training
• Trade-offs between recruiting SPs with less
qualification and imparting training or recruiting SPs
with more qualification and giving less training
• Deciding upon the personality traits: empathy,
interpersonal skills, integrity, maturity, enthusiasm,
etc.