SALES FORCE

MANAGEMENT
UNIT 4
Sales Force Mgt
• ‘Ideas are worth nothing unless executed.’ – Steve Jobs
• That is why sales force management should be your priority.
Sales Force Management
• SFM is the development of a sales force that includes coordination of
sales operations, as well as the training and application of sales
methods that result in achieving sales goals and objectives.

• Sales Force - A company's sales force comprises employees who

engage, convince, and sell the products or services to the customers.
Importance of SFM
• Better Sales operations
• Better understanding of market
• Defined sales strategy
Key benefits of SFM
• Generating leads
• Sales forecasting
• Order Management
• Conflict resolution
Objectives of Sales Force Management
• Serving existing customers
• Developing new customers
• Increasing market share and profit
• Enhancing customer satisfaction
• Designing sales force strategy
Functions of SFM
• Recruitment
• Training & Supervision
• Motivation & Incentives
• Evaluation
• Personality & behavioural elements
Process of Sales Force Mgt
• 1) Designing sales force objective and strategy
2) Sales force size
3) Recruitment and selection
4) Training and motivation
5) Compensating
6) Supervising
7) Evaluation and control of sales people
Sales Manager
• A sales manager is the person who is responsible for leading an
organization’s sales team.
Duties of Sales Manager
• Meeting sales goals
• Evaluating performance
• Creating incentives
• Creating sales strategy
• Maintaining staffing
• Coaching sales team
• Problem solving
Skills of a sales manager
• Communication
• Presentation ability
• Data analysis
• Leadership
• Creating budget
Recruitment
Internal Sources
- Company Sales Personnel
- Company executives
- Internal transfers

External Sources
- Walk ins
- Employment agencies
- Employee of customers
- Sales force of other companies
- Educational institutions
Selection
• Receiving applications from Salesperson
• Scrutinizing Applications of Salespersons
• Written test for Salespersons
• Interview of Salesperson
• Checking references of Salespersons
• Medical examination for Salespersons
• Appointment of Salespersons
Sales Training process
• Sales training is a process of providing the sales force with specific
skills for performing their task better and helping them to correct
deficiencies in their sales performance.
Sales training process
• Identifying training needs
• Setting sales training objectives
• Deciding on training methods
• Designing training programs
• Career Cycle
• Evaluating training Effectiveness
Career cycle
Benefits of training
• Increased revenue
• Increased productivity
• Strengthening the organization
• Improve employees and customer satisfaction
• Improve team communication skills
• Inspire creativity
Motivating Sales force
• Recognition & Praise
• Fair pay-packet
• Good working conditions
• Opportunity for advancement
• Good supervision & leadership
• Opportunity for self expression
• Social acceptance
• Job Security
• Desire to excel
• Pride in selling
SALES TERRITORY
• Sales territory is a designated geographical area or a group of
customers which are assigned to a sales team or individuals in order
to achieve allocated sales objectives and targets. This is where the
sales teams would be spending their sales efforts. This sales territory
is responsibility and accountability of that particular sales team. The
sales team ensures that the sales in that area increase and meets
sales targets every year.

• The idea behind the creation of sales territories is to match the sales
opportunities with the selling effort
• Conceptually, a territory may represent:
• (a) A particular geographical area mostly.
• (b) A group of customer accounts or prospects, e.g., hospitals and
institutions.
• (c) A market.
• (d) An industry
Objectives of Sales Territories
• 1. To facilitate effective sales planning.
• 2. To cover and manage the entire market.
• 3. To assign salesmen’s responsibility for a particular territory.
• 4. For a better evaluation of performance of the salesmen.
• 5. To reduce the selling costs.
• 6. To facilitate coordination in marketing functions.
• 7. Development of fair competition among all sales persons.
• 8. To improve the customer relations.
• 9. To appoint salesmen matching with the territory and customers.
• 10. Independent work area for each salesman.
• 11. To compete effectively with competing institutions.
Sales territories are established to achieve the following goals:
(i) To cover the market properly.
(ii) To deploy the salespeople effectively.
(iii) To service the customer grouping efficiently.
(iv) To evaluate the sales representatives.
(v) To facilitate higher productivity in selling and marketing effort.
(vi) To control selling expenses.
(vii) To coordinate personal selling and advertising.
Sales Territory Planning and
Management

1. Research the geographical area

2. Divide the area on the basis of population, accessibility, potential etc.
3. Study the consumer behaviour of the territory
4. Assess the revenue potential from the respective territories
5. Analyze the hurdles that may be present in the territories
6. Define the products suitable for the territory
7. Probe further to find out specific needs and wants of the people within the territory
8. Prepare a plan for each territory with quotas and tasks to be accomplished
9. Appoint sales people or sales team for each territory
10. Monitor and track the performance of each territory
11. Review sales people performance for each territory, and
12. Avoid overlapping territory because it causes conflict among the sales people.
Factors which Determine the Size of a Sales Territory:

• (i) Prospect density or the number of prospects in the specified area.

• (ii) The extent of ground to be serviced.
• (iii) Possible volume of sales,
• (iv) Frequency of visits necessary.
• (v) Intensity of selling effort required during each call.
• (vi) Ease with which one can travel within the territory and the mode of transport
available.
• (vii) The inventory turnover at the retail level.
• (viii) Whether it is easy to sell the product or difficult. As a rule, the smaller the territory,
the better it is for travelling, and the greater the depth of selling effort. Salespeople,
however, would like to have as large a territory as possible. But smaller territories are
serviced intensively.
Defining a Sales Territory
• Define markets and groups
• Evaluate competition
• Define sales objective
• Execute and improve
Sales Territory Planning Approach
• There are two basic approaches:
• 1. Market Build-up Approach
• 2. Workload Approach.
• The need for establishing sales territories includes:
• 1. To provide proper market coverage.
• 2. To control selling expenses.
• 3. To assist evaluating performance sales personnel.
• 4. To contribute to sales force morale, and
• 5. To help in the coordination of personnel selling and advertising
efforts.
• https://
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