MKT 383 Exam 3 Chapter 10 Sales Training Programs Identify three key issues in sales training 1 1 Who should get trained and when a New sales recruits should be ongoing b Sales training for experienced salespeople new product tech skill etc 2 What should the training emphasize a Product and company knowledge selling skills etc 3 How should the training be structured a Formal web in house or consultants local national regional 2 Understand the objectives of sales training Improve sales person knowledge and selling skills o Reduce time it takes for new sales members to achieve satisfactory levels of performance o Time and territory management Improve sales force morale and lower turnover o Less role ambiguity o Not hype but enhance ability to succeed o Results should lower turnover in sales force turnover is costly Improve customer relations continuity o Sales force turnover can lead to customer problems since customer prefer 3 Discuss the development of sales training programs 1 Credibility and Buy In 2 Analyze Training needs a Most important Linked to evaluation a Observing surveys to customers b Who needs training and what the content of program should be 3 Determine Sales Training Objectives a SMART goals Specific measurable attainable relevant time bound 4 Design and Implement program a Format and who will design it most companies outsource 5 Evaluating Program a Many factors effect sales b Collect as much data before training starts c Difficult to evaluate in field 4 Understand the key topics covered in sales training programs 1 Product Knowledge most frequently covered 2 Market Industry Orientation trends forecasting knowledge about existing 3 Company Orientation personnel policies price adjustments credit terms online customers manuals 4 Time and Territory Management Focus on most important customers a 80 20 rule 20 company s customer account for 80 of the business choose customers wisely and focus on them 5 Discuss common methods for conducting sales training 1 On the job 2 Classroom a 3 Role Playing a Four legged ride alongs sales manager and rep make calls together b Job rotation assigns trainee to different departments Interactive saves the executive time because he can come to one session a Develop skills whether knowledge can be applied critique b Most trainees can identify their own strengths and weaknesses 6 Discuss key issues in evaluating sales training programs Cannot quantify the relationship between sales training and various training objects Hard to say what caused sales to increase o Correlation does not equal causation Research must be carefully designed 1 Did participants respond favorably to sales training programs a Questionnaires cannot reveal behavioral results 2 Did participants learn concepts or skills a Before and after tests 3 Did participants change their on the job behavior 4 What business result occurred a Company records In reality we would want to take multiple measures of sales training effectiveness especially if we want sales training credibility and our program has multiple goals Chapter 11 Compensation and Incentives Salary fixed sum of money paid at regular intervals Commission a payment based on short term results Bonus a payment made at management s discretion for achieving or surpassing some preset level of performance Quota the minimum requirement for a sales person to earn a bonus Benefits medical disability life insurance retirement plan Non Financial Incentives opportunities for promotion or various types of recognition for performance 1 Discuss the advantages and disadvantages of straight salary straight commission and combo plans 1 Straight salary a Good for hiring training new sales reps b New product or new territory c Performing non selling activities education research team selling Advantages Max income security even in rough times Manager has more control over sales reps Easier to compute time is saved Disadvantages Little incentive Requires close supervision During sale declines selling expenses remain the same high Security oriented sales people rather than achievement oriented 2 Straight Commission a Highly aggressive selling team b Non selling tasks are minimized c When company cannot monitor sales force activities Advantages Max incentive link between performance and compensation Can increase decrease commission according to which product manager wants to sell Disadvantages Selling expenses relate directly to revenue Little financial security Little control of sales managers inadequate service not many relationships When business conditions are poor sales force turnover rates are high Selling costs are less predictable 3 Combination Plans a Most popular b Sales rep and manager security control 2 Understand the nature of sales contests Short term incentive programs to motivate sales force to accomplish objectives Financial and nonfinancial rewards 1 Salespeople compete with themselves by trying to attain individual quotas 2 All members compete with each other 3 Sales force is organized into teams Reasonable chance of winning One few winners Promotion and Follow Through o Announce contests enthusiastically at big sales meetings o Must follow up to maintain interest and give feedback on progress o Winners should be recognized publically and awarded promptly Pitfalls o Borrowing sales from before or after to increase contest volumes o Cause people to think more short term o Creates animosity or jealousy 3 Understand the nature of salesperson expense accounts Travel lodging meal entertaining customers Annual field expenses to approach 25 000 or more Reimbursement contingent with salesperson submitting receipts 4 Discuss issues related to deciding on appropriate 1 mix and 2 level of compensation Sales people desire different things Determine sales people current preferences for various rewards The amount of compensation needed to attract retain and motivate salespeople who can mange the firm s customer relationship Look at industry figures Benchmarking comparing business across companies o Will pay average or above average but not below Paying sales people too much o Increases costs and reduces profit o Difficult to promote Paying sales people too little o High turnover problems o Convenient way to hold down selling costs Chapter 13 Evaluating Salesperson Performance 1 Common Difficulties in accurately evaluating performance Dialougue between salesperson and manager 1 Common use of percent to quota as performance measure o