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MKT 383 Exam 3Chapter 10- Sales Training Programs1. Identify three key issues in sales training2. Understand the objectives of sales training3.Discuss the development of sales training programs4.Understand the key topics covered in sales training programs5.Discuss common methods for conducting sales training6.Discuss key issues in evaluating sales training programsChapter 11- Compensation and Incentives1.Discuss the advantages and disadvantages of straight salary, straight commission, and combo plans2.Understand the nature of sales contests3.Understand the nature of salesperson expense accounts4.Discuss issues related to deciding on appropriate (1) mix and (2) level of compensationChapter 13- Evaluating Salesperson Performance1.Common Difficulties in accurately evaluating performanceIdentify several objective measures of salesperson performance (input and output)Key issues related to subjective measures of salesperson performanceMKT 383 Exam 3Chapter 10- Sales Training Programs1. Identify three key issues in sales training1. Who should get trained and when?a. New sales recruits, should be ongoingb. Sales training for experienced salespeople: new product, tech, skill, etc2. What should the training emphasizea. Product and company knowledge, selling skills, etc.3. How should the training be structureda. Formal, web, in-house or consultants, local/national/regional2. 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 performanceo 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 o Sales force turnover can lead to customer problems since customer prefer continuity 3.Discuss the development of sales training programs 1. Credibility and Buy-In a. Most important! Linked to evaluation 2. Analyze Training needsa. Observing, surveys to customersb. Who needs training and what the content of program should be 3. Determine Sales Training Objectivesa. SMART goals (Specific, measurable, attainable, relevant, time-bound)4. Design and Implement program a. Format and who will design it—most companies outsource5. Evaluating Programa. Many factors effect sales **b. Collect as much data before training startsc. Difficult to evaluate in field 4.Understand the key topics covered in sales training programs1. Product Knowledge- most frequently covered2. Market/ Industry Orientation- trends & forecasting, knowledge about existing customers3. Company Orientation- personnel policies, price adjustments, credit terms, online manuals4. Time and Territory Management- Focus on most important customersa. 80-20 rule: 20% company’s customer account for 80% of the business- choose customers wisely and focus on them5.Discuss common methods for conducting sales training1. On-the-joba. Four-legged/ ride-alongs: sales manager and rep make calls togetherb. Job rotation- assigns trainee to different departments 2. Classrooma. Interactive, saves the executive time because he can come to one session,3. Role-Playinga. Develop skills, whether knowledge can be applied, critiqueb. Most trainees can identify their own strengths and weaknesses6.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 increaseo Correlation does not equal causation - Research must be carefully designed 1. Did participants respond favorably to sales training programs?a. Questionnaires, cannot reveal behavioral results2. Did participants learn concepts or skills?a. Before and after tests3. 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 goalsChapter 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 plans1. Straight salary a. Good for hiring/ training new sales repsb. New product or new territoryc. 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 savedDisadvantages- Little incentive- Requires close supervision - During sale declines, selling expenses remain the same (high)- Security oriented sales people rather than achievement oriented2. Straight Commissiona. Highly aggressive selling teamb. 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- Selling expenses relate directly to revenueDisadvantages- 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 Plansa. Most popularb. Sales rep and manager security/ control2.Understand the nature of sales contests- Short term incentive programs to motivate sales force to accomplish objectives- Financial and nonfinancial rewards1. Salespeople compete with themselves by trying to attain individual quotas2. All members compete with each other3. Sales force is organized into teams - Reasonable chance of winning- One/ few winners- Promotion and Follow-Througho Announce contests enthusiastically at big sales meetingso Must follow-up to maintain interest and give feedback on progresso Winners should be recognized publically and awarded promptly - Pitfalls:o Borrowing sales from before or after to increase contest volumeso Cause people to think more

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MSU MKT 383 - Exam 3

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