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Module-1 -Season
INTRODUCTION TO SALES MANAGEMENT
sales management. He ran the National Cash Registry. He asked his best
sales people to demonstrate their sales techniques to other salespeople. The
best sales approach was printed in a sales primer and distributed to all the
other sales people to follow. – Its the beginning of canned sales approach.
Mr. Patterson assigned to his people exclusive territories and quotas in
order to stretch their effort. He arranged meetings. He also sent regular sales
information on techniques of selling. Thomas j. waterson was trained by
Mr. patterson who later founded the IBM.
Modern sales Management:
Today the process of sales management has undergone numerous
changes in terms of strategy, practice and technological adoption to achieve
the desired goal. A sales person has become the information provider. The
real sales activity is now in retaining customers rather than just closing the
sale. This relationship approach has changed the scope of sales management
and research has found that is costs five time more to register a new
customer than to sell a product or service to an existing customer.
The Domain of Sales Management:
The domain of sales management has become multidisciplinary in
which sales manager have to manage a diverse workforce and complex
technologies. Sales manager have to perform duties such as recruiting,
selecting, training , motivating, forecasting, controlling and administering
people. They have to manage and satisfy multiple stakeholders such as
customers, suppliers, sales representatives and top management with the
objective of increasing sales and profitability.
Personal Selling:
Personal selling involves prospecting, formulating prospect definition,
searching out potential customers, qualifying, determining requirement ,
relating and converting them.
Evolution of Personal selling strategies:
- The personal selling strategies have evolved over period of last 150
years. with the beginning of peddlers in the 19th century adopting
persuasion strategy to make sales.
- As competiton grew and buyers had a choice to opt for a particular
player, it became important for the salespeople to understand the need
of the customers, which called for the modification of products, prices
and other related services—Negotiation starategies became more
important than mere persuasion
- IN 1970s when salespeople called on the business and industrial
buyers, they were told to treat the customers not just as account but as
clients.Consultative selling required a seller to think like the buyer
- In the late 1980s and early 1990s, a lot of emphasis was put on the
mgt of territories and accounts as profit centres or as a business. He
must understand the production and marketing systems of a buyer.
The sales people were trained to practice business management
strategies at this phase
- The domestic and international competition, rising costs and recession
forced attention on the need to reduce cost of producing and
marketing goods. This was facilitated by a close working relationship
between the sales people and customers. This called the partnership
pahse in the evolution of personal selling.
Types of personal selling:
The approach is linked to customer choice, behaviour & risk involved
1. Industrial selling- selling to reseller
2. Selling to business users ;IBM sells Intel premium to campaq, HCL
3. Institutional selling : Xerox , Johnson and Johnson - providing
support to buyer business
4. Retail selling
5. selling to Government
6. Services selling
Types of Selling:
- Order taker sales people ( meeting already committed customer)eg;
inside order taker, Delivery sales people, outside order taker
Technology
Customer Relationshi
Orientation p selling
Emerging
Trends
in Sales
Manageme
nt
Global and
ethical Diversity
issues
New selling
Methods
Customer Orientation:
The most important is the customer orientation in Indian organization.
Structures, systems, and process are designed around customers to give them
high value products and services, deliver more satisfaction to customers and
retain customers for a longer period. It calls for new method of sales
techniques.
New selling Methods:
The traditional selling process of individual salesperson calling on
individual buyer is fast disappering in many industries. It is observed that in
the late 1980s and 1990s many organization started using non-traditional
selling such as telemarketing, team selling, web based e-selling technique.
In the industrial sector, software companies have turned to cross-
functional selling for the sale of enterprise wide solutions A cross functional
selling team comprises of people across all the functions such as sales,
marketing, finance, operations and human resource so that a holistic picture
of customer’s problem can be snapped and solutions can be developed for
them.
A company such as priceline.com in the USA uses a web based sales
model and practices reverse auctioning as a successful method of selling.
Relationship selling:
This non personal form of intermediation is found in many sectors. The
basic objective of reorienting the selling strategies is to build relationship
with customers. This has changed the selling process from transactional
selling to relationship selling. The long term association between buyers and
sellers become the focus of business with the customers.
Ex:1. HCL technologies has full time employees at the client’s place for
solving any problems relating to computer hardware.
Ex:2 GE and other leading players have opened back office operations in
India to attend customer complaints.
EX:3 Jet Airways programe on Extra Miles for the frequently flying
customers.
Technology
Organisations are adopting technology and integrating their business
across departments. Technology is having an impact in two ways: in terms
of selling function as a whole, and also in terms of the performance of the
selling function by an individual sales person. New technology has made it
possible to automate the salesforce.Orgnaisations have integrated their
requirements with vendors and vendors have adopted systems which are
compatible to the enterprise-wide solutions of their customers.
Ex: Maruthi has a sales automation process whereby all the dealer networks
are linked to its production process at the Gurgaon plant and the production
of different types of cars are linked to the demand patterns in the market
place.
EX: Companies such as Archies and Hallmark use data derived from bar
codes scanned at the check-out counters of retailers to supply information to
their sales people.
Globalisation:
The global legislations such as GATT and WTO and the emergence of
legislation on environment make it binding for a salesforce to look at the the
emergine issues in the business world and take corrective action for the
business success. The growth in consumption in the emerging markets such
as India, china and Malaysia demands special attention to be given
structure, approach and nature of sales force and selling techniques.
Maintaing a certain level of ethical norm is a part of responsible
commercial success. There are ample cases of bribery and cheating in the
world of sales in Indian Market and organisation are being blamed and
ridiculed for the misconduct of business.
Ex: Modi Xerox as a company was found bribing people for selling its
office equipements and photocopiers in the Indian Market.
Qualities:-
Responsibilities:-
Organization principles:-
M. D
Fin/legal
Rector & Executive
Director
head of director &
education head of
Commercial new media
National Manager
sales
National
manager Accounts Sales mgr
executive
Sales Prdt
Executive Executive
Mgr mkt
Ad Mgr Sales mgr Research
National
Sales
manager
Regional
sales Mgr Regional Regional
sales Mgr sales Mgr
District
sales Mgr
District
sales Mgr District sales
Mgr
Sales staff
City wise
Sales staff
City wise Sales staff
City wise
M.D
AEd Export
ROCD RCD Engines
D
R& FIN
A/C HR
D
President
mktg
RODC- rotary compressor divisor
RCD- reciprocating comp division
AED- automotiveVPequipment division.
Sales
5. Organization Design by Customer:-
President
Mktg Mgr
Mktg Mgr Internationa
India olllllllllllllll
lll
GM GM
Customer International
Care
Step1. Classify the present & potential customer according to sales potential;
Total Customers- 500
Sales Potential Method: - Assumption; what the avg rep achieve in term
of annual sales volume.
N=s/p*(1+T) N= no of sales people needed
S= annual sales forecast for the comp
P= estimated sales productivity of the avg sales person.
T= estimated % of annual sales force turnover.
N=$10,000,000/500,000*1.20=24.
Sales Forecasting
Meaning:
A sales forecasting is an estimate of sales in dollars, or physical
units in a future period under a particular marketing programme and
an assumed set of economic factors outside the unit for which forecast is
made.
Purpose:
-viewed as a central part of strategic planning
- starting point for sales, marketing planning, production, scheduling,
cash flow projection, financial planning, capital investment, procurement,
inventory management, Human resource planning and budgeting
- improves efficiency and effectiveness of the managers reserve
allocation process.
Sales Forecasting Techniques:
Generally, there are two approaches to sales forecasting
a) Break Down approach b) Build up approach
b) Build up approach
Simply asks individual what they expect to sell in the coming period
or surveys customers about what they expect to buy and then sum
their responses for a total forecast
s1: Expert panelist are asked to make their forecast anonymously and
then send them to group coordinators.
s2: Coordinators analyze the forecast and sends each member an average
forecasts. (Opinions, beliefs, expectations can be re- evaluate and
changed but without the dominant influence of any one participant).
s3: Each expert is asked to submit another forecast again revise feed back
from the coordinators. This process continues until a near consensus is
reached.
Counting Method:
Step1: Consider the set of actual data. To remove the seasonal fluctuation
from the data to make them comparable to normal sales figures, multiply
these historical sales figures by seasonal index.
-Sales increased from 98 to 150 between the 2nd and 3rd quarter of 2003,
indicating a rising sales trend of 52 units per quarter. A simple line extension
forecast for 4th quarter would add 52 units to 150 for a sales forecast of 202
units.
-But the following table shows that there was no significant increase in sales
once the seasonal pattern of sales is removed:
Since actual sales for 3rd period of 2003 were 150(1st table) our forecast
missed only by 3.3%. If the sales data had not been deseasonalised the
forecast for the 3rd quarter would have been off 5.3% (142-150)/150 =
-5.3%.
Actual (missing) is 3.3% [(155 – 150)/150] = 0.33%
Instead of relying on just one period to predict sales, time series frequently
use several periods of historical sales.
F t+1 = St + St – 1 ………. St – n + 1
N
Where: Ft + 1 = forecast for the next period
St = Sales in the current period
St – 1 = Sales in the previous period
n = number of period in the moving average
Ft + 1 = α St + (1 – α) Ft
It attempts to find the factors that affect sales and to determine the
nature of that relationship. The correlation –regression is one type of
causal method.
Correlation-regression analyses:
Correlation: variables are studied simultaneously to see whether they are
interrelated, or move together in some way. This technique tries to find
correlations without implying cause and effect.
Regression: attempts to predict how one variable such as sales is affected
by change in another variable, such as advertising expenditures .Both
correlation and regression analyses usually start with the graph of paired
data values, or a scatter diagram.
Simple Regression:
Year x Sales xy X2
(units)Y
1 43 43 1
2 52 104 4
3 73 219 9
4 71 284 16
Y=a+bX
b=n∑XY-∑X∑Y/
Module-2
Selling skills are the most important requirement for the sales people
as to meet Organization goal, increase organization image and to
retain existing customers. Selling skills helps sales people to establish
and maintain long term relationship with customers.
Innovators
-Adventurous and have high risk capital are the overnight buyers.
-mostly buy on impulse and consider non functional reasons for
making a choice
laggards
Risk avertors
(1, 9) (9, 9)
(5,5)
gives to the customer are the two dimensions used for developing the matrix
of selling styles. Typically a salesperson,who only pushes his product
without considering the buyer needs has more concern for sale. On the
otherhand, a salesperson who always responds to customer’s needs and
present his product as the optimum solution to the customer’s problem has
higher concern for the customer.
(1, 9) People oriented – I am the customer friend; I want to understand him
& respond to is feelings and interest so that he’ll like me. It’s the personal
bind that leads him to purchase.
(9, 9) Problem solving oriented – I consult with customer so as to inform
myself of all the needs in his situation that my products can satisfy we work
towards a secured decision on his part, which yield him the benefits he
experts from it
(5, 5) sales technique oriented – I’ve tried an effective routine for getting a
customer to buy. It motivates there a blended personality and products
emphasis.
(1, 1) Takes it us leave if – I plane the product before the customer and it
sells itself as and when it can.
(9, 1) Push the product oriented – I take changes of the customer and hard
sell him, pilling on all the pressure if takes to make him buy.
SELLING SITUATION:
A typical selling situation explains what kind of customers a
salesperson is going to face and what kind of sales approach will help him
in closing a sale in that situation. When a person makes a sales call to an
individual customer for an insurance product or a mobile connection, he a
faces a situation where the customer either explains his status and intention
of buying or addresses his needs to the salesperson.
- In organizational buying the customer represents a group interest such as
the purchase department of an organisation, and buying pattern is based on
the basis of set parameters.
- In service and solutions selling, the customer does not come with a
specific parameters, and during the sales presentation the customer may
unravel his problems, identify his interests, and develop his criteria of
choice.
-In a retail selling situation, the customer walks into the counter with an
intention to buy a product, whereas in cold calling and door to door selling,
the salesperson looks for potential customer.
-In the case of pharmaceutical selling the sales person makes a sales
presentation to a doctor who is not the original customer but customer’s
decision making largely depends on what the doctor prescribes.
- In creative selling, the salesperson tries to sell an abstract thought to the
customer, eg., an advertising campaign presentation.
Maintenance selling:
Maintenance selling involves the art of servicing the existing accounts,
securing promotional cooperation, counting inventory and taking
replenishment orders and delivering the products. In the IT sector, these
salespeople are posted at the client site and are responsible for solving the
client’s problems.
Developmental Selling:
Salespeople engaged in developmental selling are called business
development sales executives as they try to contact the potential customers
and build business for the firm. They are the real salespeople who try to do
prospecting from the leads either available in the organisation or collected
by them, and then take the prospect through the whole process of selling to
realize a sale.
Theories of selling
AIDAS
Right set of circumstance - seller oriented
Buying formula theory of selling – buyer oriented
Behavior equation theory – buyers decision process
AIDAS
Securing attention – have a good start, proper attire, show genuine
smile.
Inducing action – some use tricks to close . Some ask straight forward
d yes or no answer question- better straight forward
2. Cues – weak stimuli that determine when the buyer would respond
SELLING SKILLS:
The prominent myth is that the successful sales persons are born; but
the evidence shows that the skills can be acquired through scientific way of
learning. The following are the skills required for a successful sales person:
I)Communication skill:
In order to be successful, a salesperson should
- possess good knowledge in vocabulary
- able to intelligently express
- able to understand non-verbal cues of customer.
The entire business of modern day sales rests on building a good
relationship with customers. The relationship becomes long term when it is
built on mutual trust. The following five elements of mutual trust revolve
around the communication.
1. Truth of words communicated by the salesperson
2. Predicability of action
3. competency(ability/knowledge/resource)
4. Intent or empathy
5. Likeability( It is an emotional issue and difficult to clearly define, but
can be understood as a perception of commonality of both the parties)
communication process: The communication is established by
exchange of ideas through a medium. The communication
process may be disturbed by noise and other psychological
barriers. (pre-occupation with certain messages, self focus, self
–defensiveness, experiential, superiority, egocentrism, selective
attention)
Managing Body Language:
• Personal appearance: The first impact of customer or
potential is created by the personal appearance(dress,
hairstyle, and overall appearance)of the sales person.
Even before the salesperson speaks the first word, the
potential customer starts making perceptual inferences
about the salesperson and visualizes the way he is going
to talk and do the sales presentation.
Levels of Listening:
Models of conflict:
Dollard and Miller model: apporoach-approach; approach-avoidance;
and avoidance-avoidance( attractiveness of options of parties)
Rummel’s model: differentiates between conflict structures, conflict
situations and manifest conflicts.
Components of Conflicts:
Perceived Increased
conflict Conflict group
handling performance
intentions
Competing
Antecedent Collaboration Decreased
conditions Compromising Group
Communication Avoiding performance
Personal accomadating
variables
structure
Felt conflict
when many variable factors bear not only on price but also on quality
and service
when business risks involved cannot be accurately predicted
when a longer period of time is required to produce the items
purchasd
when production is interrupted frequently because of numerous
change orders.
Bargaining is appropriate whenever the five definitional conditions are met
and a zone of agreement exists.
which is the minimum he will accept.Any final contract value say, x which
is below s represents a price that is worse than not reaching at an agreement
at all. For any x>s, the seller receives a surplus. The seller desires as large a
surplus as possible while maintaining a good relation with the buyer.
Simillarly, the buyer has a reservation price b, which is the maximum he
will pay. Any x that is above b represents a price that is worse than no
agreement. For any x<b, the buyer receives a surplus. If the sellers
reservation price is below the buyers price, that is s<b, then a zone of
agreement exist and bargaining will determine where x will fall within the
zone.
The purpose of negotiation is to produce better results than what one
would have got without negotiating. This result is known as best alternative
to a negotiated agreement(BATNA). BATNA is the standard of comparision
that can protect a salesperson from accepting unfavourable terms and
rejecting favourable terms. It is the standard against which the proposed
agreement should be measured. Recognising of BATNA early in the
business negotiation process helps the sales manager to be successful and
gain more than the BATNA.
V. PROBLEM SOLVING SKILLS:
Besides the negotiation skills, one also needs problem solving skills
for effective selling. The relational and consultative selling approach states
that a salesperson should not be a mere order taker; he should rather act as a
problem-solver and consultant to the customer. These roles are more
significant for high-tech selling and business to business selling. The
objective is to pick up the best solution for the customer and organizational
problem so that the salesperson becomes an engine for growth of the
enterprise rather than only a person in charge of transfer of ownership of
products and services.
1. Define the problem(did it arise at the level of the sales
rep)
2. Explore the problem(identify all the available
information)
3. identify the present and desired state
4. use Dunkers Diagram-which helps to obtain solutions
that satisfy the criteria set up by the stating the desired
state and present state.
5. statement restatement technique- look at the fuzzy or
unclear problem situation and write a statement
regarding the challenge to be addressed.
SELLING PROCESS:
Selling follows a sequence or a process. The process vary from one situation
to other situation.
“The selling process is defined as a process by which a salesperson
identifies and locates the prospects, separate the prospects from suspects,
approaches them and makes sales presentation, handles their objection
and closes a sale.
a b c
a)Identify the attributes and features the prospect expect; find out the
urgency for the need for the product, ability, credit payment, authority to
buy, and dept involoved in buying.
b)Collect data through surveys, queries and trade association, magazines.
c)ranks the prospects according to the need indicators, accesability indicator
and sale person fit indicator.
- Use MAD (Money –Authority-Desire) principle to qualify prospect.
Methods of Prospecting:
1. Cold canvassing – door to door sales call
2. Endless chain customer Referral( from cutomer to his friends and his
relatives to their friends and relatives)
3. Prospect pool( collected from telephone directory , mailing list )
4. Centres of influence( Business, political and religion)
5. Observation –For Key Telephone System ie. EPABX, executives
observes costruction site to find out the potential customer
6. Non-competing salesforce,7. Friends, 8. Directories 9.
Telemarketing.10 Trade shows and demos.
4. Pre approach before selling:
The sales executive has to devise strategy to match the customer data
with the product attributes. Different personality elements indicate
different selling strategies ( Whether a customer is price sensitive, --
propensity to bargain, )
During the product introductory stage the customers demand
more information whereas the product which is in the last stage require
price concession, credit payment.
Selling process explains, helps in developing selling strategy,
estabilising call norms and objectives, and to decide about the
differential advantage offered to the customers.
4 steps involved in this process:
1. Determination of call objectives( sales call in the first instance or to
get permission to make a demo)
2.Devlopment of customer profile
3. Determination of customer benefit
4. Determination of sales presentation
5. Approach to the customer:
6. Sales Presentation:
During sales presentation, the salesperson features presentation with
customer benefit. The salesperson has to keep in mind the level of interest
and time available. In a typical presentation, the salesperson presents the
product, customer accepts or objects and demand explanation or stays
indifferent, doubts potential of the product, and sometimes gives no clear
reaction.
A sales person can follow the AIDAS approach to sales
presentation( AIDAS discussed in the theories of selling part).
Methods of sales presentation:
Generally, the presentation can be classified as oral or written. The
following are the further classification.
a)canned presentation: ( prepared by company, there is a little scope for
modification, new sales people can follow this method)
b)Organised presentation: Developed on the basis of information collected
from field research. It helps in maintaining company marketing plan due to
adherence of company guidline ( allows flexibility and it encourages
participation)
c) tailored presentation. –Emphasis buyer demands and designed to specific
customer.
A sales proposal should convey 5 proposals:
1. Tangibility ( proposal should enhance salesperson message)2.
Assurance( should build trust) 3. Responsiveness( The proposal should
invite purchase responsiveness)4.Reliabilty 5. Emphathy.
MODULE -3
Introduction:--
Definitions:\
David , Still &cundiff—grouping of customers & prospects assigned to an
individual salesperson.
A well planned territorial design for example, helps in matching the selling
efforts with the sales opportunities in that market.
Many Indian firms take into account 3 key factors while deciding on
the size of the territory.
1.The customer base compreses of current customer, potential
customers’size and geographic size interms of square kilometers or square
miles to be covered by the salespeople.
2. Market Potential
3. Topographical data
There are 3 types of territory shapes that affects sales expenses and
coverage and time:
Circle- Salesperson located at centre- Maruthi, Hyundai follows this(urban
Market)
Wedge- radiates from densely populated to smaller rural area(both urban and
rural)
Clover Leaf –when accounts are distributed randomly
Hopscotch – sales person starts at the fartherst point from the office and
makes call on the way back to office
-Compare territories (customer per square mile and support detail outlets per
square mile)
Many times, small and large territories in a particular geographic spread
may have an equal potential on customer size. In such cases there is a need
to allocate control units on the basis of traveling and call norms in order to
reach customers. Adjustment is made keeping in view the sales potential,
customer size, market growth rate and sales expenses involved in the market
coverage.
Workload analysis consist of how much of selling effort is require to
meet the sales objectives for a given region.( Refer sales organisation
chapter for workload analysis)
High Low
High opportunity/sales organization Good opportunity- Forms overcome
have different advantage company disadvantage
Strategy:- commit high level of Strategy:- Improve the position and
research to take advantage tarde advertising of opportunity
Stable opportunity Little opportunity
Strategy:- Allocate model of research Strategy:-Either commit a minimum
to retain current advantage level or conduct abandoning account
together
Strong Weak
Revision of territory:-
Sales manager may need to revise territories at time to cope with
challenges.
Reason—
-Revision is needed if a territory is over estimated.
-Where the territory is too small for a good salesperson
- overlapping territories
-Environmental changes
Effects of Revision—“built mut”—damage morale
--Compensation adjustment
--guarantee previous level income
\
SALES QUOTAS
Meaning :
Sales quotas are the targets that salespeople try to achieve within a
specific period of time, which contributes towards achieving the
organisational goal regarding sales forecasts.
Importance:--
--divise in strategic planning
--Standard to specify derived level of performance
--guided by time element/controlling tool
--lead organization towards management by exception
(Mgt focuses on highly performance oriented people)
--guiding the behavior of people.
Evaluating performance
Controlling the Salespersons activities
Calling minimum no. of amounts per day
Calling on new accounts
Giving minimum no of demos
Uncovering strengths of weaknesses in selling structure
If sales fall in a particular territory the cause must be determined
Improving the compensation plan’s Effectiveness
Controlling the selling Expenses
Types of quotas:--
c> Point Sales volume: -- Combine dollar or sales unit sales both into
unit points. For e.g. $100 might equal one point, $200 equal to 2 pts
—Companys use this approach because they have problems trying to
implement either a dollar or unit volume quota. It helps in
maintaining balance.
2.Financial Quotas:--
2> Expense quota:- designed to make sales people aware of the costs
involved in this selling efforts.eg Salespeople may be allowed to
spend 5% of their sales fore expenses.
Recruitment,
Importance of recruiting
Customer, Cost, EEO, Qualified applicants.
Who does recruiting?
What interviewer can and can not ask.
Sex, Marital status, Children, Physical data, Medical history,
Criminal record, military status, Age, House.
Involves choosing the candidates who best meet the qualification and
have the greater aptitude for the job.
Steps:
1. Application form
APPLICATION FORM:-
Information about address, position applied for, physical condition,
educational background, work experience, participation in social
organization.
TESTS;-
Intelligence test ( measure the raw intelligence and trainability)
Knowledge test (the tests are designed to measure what applicant
knows about product service).
Sales aptitude test (person’s innate and acquired social services).
Vocational interest / personality test.
Polygraph test (measure blood pressure respiration, heart beat and
skin response).
Attitude and life style.
A sales mgr weigh how much the current problem will cost vis-à-vis
the cost of eliminating through the training programme.
Orgl Level
Analysis Sales mgr evaluates the orgn struc,
culture, mission,
Business Climate/goals- It provides
strategic info on the
resource commitment to support the
programme.
Task Analysis
Focusses on all the function & jobs in
the sales dept &
determine which are of them which
need attention.
Individual Level
Analysis
Assess the performance of sales staff
& determine all
those people who need training.
The programme can occur not only in key sales areas but also in soft areas
such as team working behavior, interpersonal communications &conformity
to sales group norm.
- Location:
- On the job/ off the job
- Inside orgn/outside orgn
- Trained Expert or co. people.
- Types of Training
(c ) Team Training:
TRAINING METHODS:
(2) Conferences:
Highly structured device for conveying message on a large
scale and often to an audience of 100 people.
(3) Seminar:
It is a conference on a smaller scale with in corporate a greater
degree of participation from the members.
(4) Discussion:
Common method useful for the presentation of ideas and plan
particularly when issues related to sale have to be clarified or
expanded & the views of different sales groups are ascertained.
(8) Workshops:
- Method of designing training around identified work problem in
order to find the solutions in the training programme
Objectives:
Obtain contribution from all individuals who are affected & to
optimize the resources available to solve the problem.
Objectives:
- Increase the awareness of our own behavior and to understand
how it is received & interpreted by other.
- Develops sensitivity to the behavior exhibited by other and
enables the trainee to diagnose the causes of that behavior.
Evaluation Phase:
Effectiveness is measured either in monetary or non-monetary
terms.
MODULE 4
(1) Financial ability of the firm- to pay the employees (current &
future) as a continuous bans
(2) Pull model- company emphasis as heavy advertising and hence
(sales person plays the role of order giver)- ( put less effort)
salary will be less
(3) When the size of mkt is very limited, sales person has to put lot
of effort- so he ll demand more salary.
(4) Nature of product- Industrial product- more effort required-
high performance
(b)Recognition Program:
In GE capital , the sales people who excel are
awarded fo their outstanding contribution.
These programmes can be designed to encoprise
the individual/ team performance
(c ) Fringe Benefits:
These are employment benefits, life insurance,
stock options, profit sharing, gratuity, PF, pension
provision
Infosys’s & Wipro give stock option
d) Expense Accounts:- reimburse expenses of the field sales force
e) Perks: include the provisions for a car, driver, gardner, club
membership. Status perks(job title,parking space); Financial
perks(conveyance, car,insurance); personal growth
perks(education, sending sales people for training.
Module-4
MOTIVATION
Performance(P)=Ability * Motivation
-Motivation takes place in the context of work culture.
-A manager should posses adequate knowledge about the work environment,
reward policies and level of interpersonal communication, across the
organization while deciding on motivating people. The management need
good communication and listening skills so that he can discover and
understand people need and internal drives.
Nature of motivation:
- motivation is a complex phenomenon that combines the individual
needs, motives, drives, tension, comforts and expectations
- it has a system of orientation goal of individual is shaped by forces
within the individual and its interaction with surroundings.
- Individuals sets feed back from the environment which either reinforces
behavior from processing certain goals.
Process of motivation:
Motive
Goal
Motives:-
Largely subjective and represents the mental picture of the person by
explaining the rationale of human behavior.
Behavior:-
Comprises a series of activities that a person does by being motivated to
achieve individual and organizational goal.
Goals:-
The goals chosen by individuals depends on various individuals depends on
factors like the cultural norms and values, the sales persons inherited
capabilities, influence of personal learning and experience .
Motives- are the drives for the behavioral action of the person
Theories of motivation:
Content theories (explain the structure of the needs and motives and how
individuals priorities the needs .
Content theories-
1. need hierarchy theory
Abraham maslow- propanded and look into the hierarchy structure
of the different types of needs of an individual over a period of time.
Esteem need
Social need
Security need
Physiological
need
Physiological need: this is the basic needs and they have the greatest
strengths among all the needs of the individuals (food, water, shelter). They
are identified with bodies and are relatively independent of each other.
Safety need: related to physical and physiological safety from external
threat- arise out of physical danger
Social and affiliation need: describes the individuals desire for company and
companionship of other peoples
Esteem needs: sense of self work, personal recognition and satisfaction of
these needs produces self confidence prestige, power.
Self Actualization: desire to grow more and more that is become everything
that one is capable of becoming. It is the need that urges individuals to
optimize their potential.
Herzbergs 2 factors
Neutral state of motivation, High state of motivation, satisfaction
satisfaction and performance and performance
Extrinsic – content - hygiene Intrinsic – contexts – motivators –
satisfaction
•corporate policy and • achievement
administration • recognition
•rel. with superiors • work
•wc, salary • responsibility
•rel. with personnel • advancement
•personal life • growth
•rel. with subordinates
•security supervision
Theory- X (Assumption)
Theory y-
Conclusions:-
Process Theory-
Expectancy Theory
They analyzed work situations (work course worker the way do act )
- hen initiate changes to eliminate changes troublesome areas
- specific goals are then set with workers participation
- feed back
- reward
- if performance expected ways are found to help people
personal characteristics
1) program objective
Appraisal Criteria
Methods
2)Trait based :
-criteria related to the traits and the behavior of the sales fore.
- the most commonly used traits for the purpose are reliability energy and
loyalty.
3)outcome based :
4) behavior based:
- related to selling criteria and for this the sales manager records how
frequently behaviors listed in a checklist of ratings have occurred.
The score and weight are predefined and the sales manager is forced
to give a score or weight act of the assigned weights.
-rates sales people as a series of adjectives.
8)call reports:
-explain the unusual events and incidents that occur in the field as
reported by a sales manager and sales people including .
-this includes events like the launch of a major price war by the
competitor and the entry of new competitor.
Name total calls made total sales arg sale per content total cust satisfac index
1.john
2.deepak
3.rakesh
4.sufrat
Rating error:
-occur when a sales manager inflate/deflate the sub’s performance rating.
-either *
-receiving effect- the most recent performance has effect or the current
performance.
-central tendency error—
Hallo effect error – associating certain people into some category as good or
bad as the basis of some characteristics.
Actual performance:
Evaluate the salespersons actual performance against either industry
std (or) stds set by the organization.
-many sales people by to collect actual data over a set of territories and
calculate the avg performance of all the territories and then to compare each
salespersons with the average of the performance of all the sales.