SALES MANAGEMENT
 

DUTIES AND RESPONSIBILITIES

1. Knowledge of: firm's long and short-run goals and objectives, production process, consumer behavior, competitors

2. Functional skills: market forecast, design of sales organization, recruiting and selecting salesperson, training, budgeting, compensation, territory and quota design, sales analysis, developing sales approach, customer service, order processing, credit and collection, promotion

3. Administrative ability: planning, organizing, coordination, motivating, evaluation and control, communication

4. Leadership ability
 

 RECRUITING AND SELECTING

1. Job Requirements: job specifications and classification; use of product and market matrix to write job specifications

2. Selection criteria: education, experience, characteristics; knock-out factors

3. Recruiting: sources, interview, test, and reference
 

SIZE OF SALES FORCE
 
1. Workload Method:  
Type & Number Call Frequency Call/yr. Time/call Hour/yr.
Large           150 1 week 48 1 hour   7,200
Medium size 220 1/2 week 24 1/2 hour   2,640
Small           510 1 month 12 1/4 hour   1,530
11,370
  2. Sales Value method: N = S/P (1 + t)  
SALES MANAGEMENT- TRAINING (ACMIE)
 
1. AIM: new salesperson, continuing training, middlemen....

2. Contents: product knowledge -company and competitors', market, sales techniques, company operating procedures..

3. Method: lecture, on-the-job training, demonstration, roles play, missionary salesman.....

4. Implementation: Who, where, time and scheduling,  place, teaching aids and facilities and equipment....

5. Evaluation

6. Cost estimate

COMPENSATION

1. Plan: Job and position evaluation; use industry norm method as a starting point

2. Compensation methods: commission, salary, bonus, psychic and combination of all these methods.

3. Compensation objectives: Fairness, based on productivity, motivation and incentive, income level and annual increase,
    industry parity, encourage team work, provide evaluation standards, clarity and written.

4. Compensation methods

5. Traveling and entertaining expenses

            Traveling, lodging, food and entertainment expenses

 

TERRITORY DESIGN

1.  Select a basic geographical unit: state, city, area code..
2.  Determine the demand potential of each basic unit and the number of customers
3.  Divide the area into equal demand potential territory
4.  Adjust for the number of customers, competition, territory size, productivity of salesperson, and workload.
 

QUOTAS DESIGN

1.  Consider market potential, competition and workload
2.  Type of quotas and evaluation: sales, new account....
 

Quota Type Quota Actual Percent Weight Score
Sales (new product, by types.....) $75,000 $67,500 90% 3 270
New Account 20 15 75 2 150
Account Call frequency 550 550 100 1 100
Promotion/display 150 135 90 1 90
Expenses/profit 6% 8% 75 2 150
Overall score:  760/9=84.4 9 760
 
 
SALES ANALYSIS
A measurement of productivity used as a basis for strategy formulation and salesperson evaluation; measurement of productivity in concept and by profitability in practice.

Approach:

Standards for Comparison: Problems and adjustments

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