Training, Motivating and

Leading the Salesforce

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Training, Motivating and Leading the
Salesforce
At the end of this module, the learning outcomes are:
• Understand the need for sales training.
• Learn the various components of sales training.
• Understand the various motivational techniques used to motivate
sales personnel.
• To understand the various components of Salesforce compensation.
• To analyze the various skills used in leading the salesforce.

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Training, Motivating and Leading the
Salesforce
Suggested Readings:
• Sales and Distribution Management by Havaldar and Cavale, 2nd
edition, Chapter 6.

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Training, Motivating and Leading the
Salesforce
Need for Sales Training
• Changing customer expectations.
• Continuous product innovations.
• Duration can vary from one day to few months.

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Training, Motivating and Leading the
Salesforce
Training needs
• Consists of
• Assessing sales training needs
• Designing and executing sales training programs
• Evaluating and reinforcing sales training programs

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Training, Motivating and Leading the
Salesforce
Assessing sales training needs
Methods
• First level sales managers’ observation
• Survey of salesforce and field sales managers
• Customer survey
• Performance testing of salespersons
• Job description statements
• Salesforce audit (as a part of marketing audit)

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Training, Motivating and Leading the
Salesforce
Common sales training needs
• Company knowledge
• Product knowledge
• Customer knowledge
• Competitive knowledge
• Selling skills

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Training, Motivating and Leading the
Salesforce
Designing and executing sales training programs
Five decisions sales managers have to take
ACMEE stands for
• A: Aim
• C: Content
• M: Methods
• E:Execution
• E: Evaluation

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Training, Motivating and Leading the
Salesforce
Designing and executing sales training programs
• ACMEE approach
• First three relate to design aspects
• Last two relate to execution and evaluation.

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Training, Motivating and Leading the
Salesforce
ACMEE approach
Aim
• Increase sales, profits, or both
• Increase sales productivity
• Improve customer relations
• Prepare new salespeople for assignment to territories

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Training, Motivating and Leading the
Salesforce
Content
• What should be the content
• Can be
• Company knowledge
• Product knowledge
• Customer knowledge
• Competitor knowledge
• Selling skills / sales techniques
• New product knowledge
• Introduce change in sales organisation
• Negotiating skills

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Training, Motivating and Leading the
Salesforce
Methods
Five categories
• Class room / Conference training
• Behavioral learning / Simulations
• Online training
• Absorption training
• On-the-job training

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Training, Motivating and Leading the
Salesforce
Class room / Conference training
Lecture
• Used when more information is presented in a short time to a large number of
participants
• May lead to boredom due to less active participation
Demonstration
• Used for giving product knowledge
Group discussion
• Useful when participants include experienced and inexperienced salespersons
• A panel discussion consists of a small group of people who discuss a specific
topic
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Training, Motivating and Leading the
Salesforce
Behavioral Learning/Simulations
Role playing
• Useful method for teaching sales technique / process
• Typically, one trainee plays the role of a salesperson and another trainee acts as a buyer
Case studies
• Beneficial for understanding consumer behaviour, and building problem solving abilities
• Case teaching includes open discussion, group discussion and presentation
Business games
• Helpful in learning impact of decision making
• Generates enthusiasm and competitive spirit

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Training, Motivating and Leading the
Salesforce
Online training
• Increasingly being used.
It includes
• electronic performance support systems (EPSS),
• interactive multimedia training,
• distance learning
• Less cost
• Useful for getting basic knowledge like products and customers

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Training, Motivating and Leading the
Salesforce
Online training
• Electronic performance support system (EPSS) makes information
available immediately, in a personalised manner
• Interactive multimedia training is used for retraining salespeople who
can repeat or skip material as desired
• Distance learning is a personal training method, which is interactive

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Training, Motivating and Leading the
Salesforce
On-the-job training
Most frequently used.
• Involves
• Mentoring
• Job rotation

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Training, Motivating and Leading the
Salesforce
Absorption training
supplying
• audio cassettes,
• product manuals,
• books,
• articles,
• and CD-ROMs to salespeople,
• who read (or absorb) these materials
Aim is to reinforce other training methods.

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Training, Motivating and Leading the
Salesforce
Studies have shown:
• In addition to the topic and audience, selection of appropriate
method depends on active / passive learning
• People generally remember
• 10% of what they read.
• 20% of what they hear.
• 30% of what they see.
• 50% of what they hear and see.
• 70% of what they say, and
• 90% of what they say as they do a thing

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Training, Motivating and Leading the
Salesforce
Organizational decisions for sales training
Areas requiring management attention are:
• Who will be the trainees?
• Who will conduct the training?
• When should the training take place?
• How long should the training be?
• Where should the training be done?
• What will be the budgeted expenditure for the training?

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Training, Motivating and Leading the
Salesforce
Evaluating and reinforcing sales training programs
• Not easy to measure.
• Change in behaviors
• Short-term and long-term
Broadly four categories
• Reactions
• Learning
• Behavior
• Results

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 Evaluation of Sales Training
Programme
• It is done to improve training design and implementation, and to find if expenditure was
worthwhile
Framework for sales training evaluation:
Outcomes to measure What to measure How to measure When to measure
• Reactions / • Training objective • Questionnaires • After the training
Perceptions of • Was training •interviews
participants worthwhile?
• Learning – • Knowledge, skills, • Tests • After training
knowledge, skills, attitudes • Interviews • Before & after –
attitudes learnt training
• Behavioural change • Trainees’ change of • Self-assessment by • After training, over a
behaviour trainees period of one year
• Observation by
supervisors /
customers
• Results – • Sales, Profits • Company data • After training,
Performance; Benefits • Customer • Management Quarterly, Yearly
more than cost? satisfaction judgement
• Market survey
Training, Motivating and Leading the
Salesforce
Motivating the Salesforce
• is the effort the salesperson makes to complete various activities of
the sales job.
• 10-15 percent salespeople are self-motivated.
• Majority of salespeople are not adequately motivated.

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Training, Motivating and Leading the
Salesforce
Challenges in motivating salesforce
• Changes in marketing environment.
• Conflicting company objectives.
• Unique nature of the sales job.
• Separate motivational package.

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Training, Motivating and Leading the
Salesforce
Implications for Sales managers
• Have to choose a mix of motivational tools.
• should know each salesperson and understand his / her specific needs
• For designing or selecting a mix of motivational tools, a compromise
between differing needs of customers, salespeople, and the company
management becomes necessary

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Training, Motivating and Leading the
Salesforce
Motivational tools
• Financial
• Non-financial
Both tools are used to satisfy the varying needs of sales personnel.

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Training, Motivating and Leading the
Salesforce
Financial
• Salary
• Commission/Incentive
• Bonus
• Fringe benefit
• Combination
• Sales contests

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Training, Motivating and Leading the
Salesforce
Non-financial
• Promotion
• Sense of accomplishment
• Personal growth opportunities
• Recognition
• Job security
• Sales meetings
• Sales training programmes
• Job enrichment
• Supervision
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Training, Motivating and Leading the
Salesforce
Factors influencing motivation of sale personnel
• Difference between can’t do and won’t do.
• Understanding individual needs into motivational programs.
• Handling Plateaued salespeople
• Proactive approach

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Training, Motivating and Leading the
Salesforce
Compensating the Sales personnel
• A good compensation plan should consider objectives from the company’s and
salespeople’s viewpoint
• Objectives of compensation plan from the company’s viewpoint
• To attract, retain, and motivate competent salespeople
• To control salespeople’s activities
• To be competitive, yet economical: It is difficult to balance these two objectives
• To be flexible to adapt to new products, changing markets, and differing territory
sales potentials

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Training, Motivating and Leading the
Salesforce
Objectives of Compensation Plan from Salesperson’s Viewpoint
• To have both regular and incentive income
• Regular income by fixed salary to take care of living expenses
• Incentive income for above average performance
• To have a simple plan, for easy understanding
• This is in conflict with the objective of flexibility
• To have a fair payment plan
• Fair or just payment to all salespeople is ensured by selecting measurable and
controllable factors
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Training, Motivating and Leading the
Salesforce
Designing an Effective Sales Compensation Plan
Consists of following steps:
• Examine job descriptions
• Set up specific objectives for salespeople
• Decide levels of pay / compensation
• Develop the compensation mix
• Decide indirect payment plan or fringe benefits
• Pretest, administer, and evaluate the plan

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Training, Motivating and Leading the Salesforce

Develop the compensation mix

• Widely used elements of compensation mix are: (1) salaries, (2)
commissions, (3) bonuses, (4) fringe benefits (or perquisites)
• Expense allowances or reimbursements like travel, lodging, etc are
not included.

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Training, Motivating and Leading the
Salesforce
Basic types of compensation plans are:

• Straight salary
• Straight commission
• Combination of salary, commission, and / or bonus

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Training, Motivating and Leading the
Salesforce
Leading the Salesforce
• Leadership is the ability to influence people to achievement of
objectives
• Leadership is necessary for a sales manager’s effectiveness
• Leadership plays a critical roe in achievement of targets.
• Supervision is directing of the day-to-day activities of the salespeople.

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Training, Motivating and Leading the
Salesforce
Leadership styles
• Transactional leadership
• Transformational leadership
• Situational leadership

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Training, Motivating and Leading the
Salesforce
Supervising salespeople
• Directing day-to-day activities of salespeople.
Two methods
• Direct supervisory methods
• Indirect supervisory methods

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Training, Motivating and Leading the
Salesforce
Direct supervisory methods
• Telecommunications
• Sales meetings
• Personal contacts
• Coaching

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Training, Motivating and Leading the
Salesforce
Indirect supervisory methods
• Sales reports
• Compensation plan
• Sales analysis
• Expense accounts/reports

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