Management of a Sales Force

Title
Contents
Part 1 INTRODUCTION TO SALES FORCE MANAGEMENT
	1 The Field of Sales Force Management
		Scope and Focus of This Book
		The Nature of Personal Selling
			Personal Selling and the Marketing Mix
			Relationship Marketing and the Role of Personal Selling
			The Nature of Sales Jobs
			How Sales Jobs Differ from Other Jobs
			New Dimensions of Personal Selling: The Professional Salesperson
		The Nature of Sales Management
			Role and Skills of a Sales Manager
			Administration—A Distinct Skill
			Levels of Sales Management Positions
			How Sales Managers’ Jobs Differ from Other Management Jobs
		Importance of Personal Selling and Sales Management
			In Our Economy
			In an Individual Organization
			To You, the Student
		Sales Force Management Challenges in the 21st Century
		SUMMARY
		KEY TERMS
		QUESTIONS AND PROBLEMS
		EXPERIENTIAL EXERCISES
		INTERNET EXERCISES
		REFERENCES
	2 Strategic Sales Force Management
		The Marketing System
			External Environment
			Internal Variables
		The Marketing Concept and Marketing Management
			Evolution of Marketing Management
			Evolution of Selling in the United States
			Relationship Marketing
			Integrating Marketing and Sales Functions
			Integrating Production and Sales
		Strategic Planning
			Objectives
			Strategies
			Tactics
		Strategic Planning at the Company, Marketing, and Sales Force Levels
			Strategic Planning for the Total Company
			Strategic Marketing Planning
			Sales Force Strategy
		Strategic Trends
			Internet Selling
			Multiple Sales Channels
			Multiple Relationship Strategies
			Marketing Management’s Social Responsibility
		SUMMARY
		KEY TERMS
		QUESTIONS AND PROBLEMS
		EXPERIENTIAL EXERCISES
		INTERNET EXERCISES
		REFERENCES
	3 The Personal Selling Process
		Prospecting
			Identifying Leads
			Qualifying Leads
		Preapproach: Planning the Sale
			Customer Research
			Planning the Sales Presentation
		The Approach
		Need Assessment
		The Presentation
			Product Demonstrations
			Prepared Sales Presentations
			Developing Effective Presentations
		Meeting Objections
			Price or Value Objections
			Product/Service Objections
			Procrastinating Objections
			Hidden Objections
		Gaining Commitment
		Follow-Up
		SUMMARY
		KEY TERMS
		QUESTIONS AND PROBLEMS
		EXPERIENTIAL EXERCISES
		INTERNET EXERCISES
		REFERENCES
Part 2 ORGANIZING, STAFFING, AND TRAINING A SALES FORCE
	4 Sales Force Organization
		Nature of Sales Organizations
		Sales Force Organization and Strategic Planning
		Characteristics of a Good Organization
			Role of an Informal Organization
		Basic Types of Organizations
		Specialization within a Sales Department
			Geographic Specialization
			Product Specialization
			Market Specialization
			Combination of Organizational Bases
		Additional Strategic Organizational Alternatives
			Strategic Account Management
			Buying Centers and Team Selling
			Independent Sales Organizations
			E-Commerce and Telemarketing
		Organizing for International Sales
			Home-Country Intermediaries
			Foreign-Country Intermediaries
			Company Sales Force Operating Abroad
		SUMMARY
		KEY TERMS
		QUESTIONS AND PROBLEMS
		EXPERIENTIAL EXERCISES
		INTERNET EXERCISE
		REFERENCES
	5 Profiling and Recruiting Salespeople
		Sales Force Selection and Strategic Planning
		Importance of a Good Selection Program
		The Law and Sales Force Selection
		Scope of Sales Force Staffing Process
			The Planning Phase
			The Recruiting Phase
			The Selection Phase
			The Hiring and Assimilation Phases
		Establishing Responsibility for Recruiting, Selection, and Assimilation
		Determining the Number of People Needed
		Developing a Profile of the Type of People Needed
			Job Analysis
			Job Description
			Qualifications Needed to Fill the Job
			Methods of Determining Qualifications
		Recruiting and Its Importance
			Need for Many Recruits
			Finding and Maintaining Good Recruiting Sources
		Sources for Recruiting Sales Representatives
			Referrals
			Current Employees
			Other Companies: Competitors, Customers, Noncompetitors
			The Internet
			Educational Institutions
			Advertisements
			Employment Agencies
			Part-Time Workers
		Diversity
			Minority Groups
			Women
		Recruiting Evaluation
		SUMMARY
		KEY TERMS
		QUESTIONS AND PROBLEMS
		EXPERIENTIAL EXERCISES
		INTERNET EXERCISE
		REFERENCES
	6 Selecting and Hiring Salespeople
		Selection Tools and Strategic Planning
		Legal Considerations
		Application Blanks
			Reasons for Using Application Blanks
			Information Asked For on Application Blanks
		Personal Interviews
			Nature and Purpose
			Reliability of Personal Interviews as Predictors of Success
			Improving the Validity of Interviews
			Interview Structure
			Interview Focus
			Timing and Method of the Interview
		Psychological Testing
			Legal Aspects of Testing
			A Framework for Testing
			Problems in Testing
		References and Other Outside Sources
			Background Checks
			Legal Considerations
		Assessment Centers
		The Job Offer Decision
			Ranking the Recruits
			Communicating with Applicants
		The Hiring Phase
			Extending the Offer
		Socialization and Assimilation
			Preentry Socialization
			Assimilation of New Hires
		Meeting Social and Psychological Needs
		SUMMARY
		KEY TERMS
		QUESTIONS AND PROBLEMS
		EXPERIENTIAL EXERCISES
		INTERNET EXERCISES
		REFERENCES
	7 Developing, Delivering, and Reinforcing a Sales Training Program
		The Value of Sales Training
		Sales Training and Strategic Planning
		Training Assessment
			What Are the Training Program Objectives?
			Who Should Be Trained?
			What Are the Training Needs of the Individual Rep?
			How Much Training Is Needed?
		Program Design
			Who Should Do the Training?
			When Should the Training Take Place?
			Where Should the Training Take Place?
			What Should the Content of the Training Be?
			What Teaching Methods Should Be Used?
		Reinforcement
		Training Evaluation
		SUMMARY
		KEY TERMS
		QUESTIONS AND PROBLEMS
		EXPERIENTIAL EXERCISES
		INTERNET EXERCISE
		REFERENCES
Part 3 DIRECTING SALES FORCE OPERATIONS
	8 Motivating a Sales Force
		Motivation—What Is It?
			Dimensions of Sales Motivation
			Motivation and Strategic Planning
		Importance of Motivation
			Unique Nature of the Sales Job
			Individuality of Salespeople
			Diversity in Company Goals
			Changes in Market Environment
		Behavioral Concepts in Motivation
			Understanding Individual Needs
			Hierarchy of Needs Theory
			Dual-Factor Theory
			Expectancy Theory
			Role Theory
			Salesperson Characteristics
		Selecting Effective Combinations of Motivational Tools
		Financial Rewards
			Compensation
			Other Financial Rewards
			Sales Contests
		Nonfinancial Rewards
			Job Enrichment and Support
			Recognition and Honor Awards
			Promotions
			Encouragement and Praise
			Corporate Culture
		Sales Meetings
			Purposes of Sales Meetings
			Planning for Sales Meetings
		Challenges and Changes in Sales Force Motivation
			Plateaued Salespeople
			Sales Force Segmentation
		Motivation and Performance
		SUMMARY
		KEY TERMS
		QUESTIONS AND PROBLEMS
		EXPERIENTIAL EXERCISES
		INTERNET EXERCISES
		REFERENCES
	9 Sales Force Compensation
		Sales Force Compensation and Strategic Planning
		Objectives of a Compensation Plan
			The Company’s Perspective
			The Salesperson’s Perspective
		Designing a Sales Compensation Plan
			Some Useful Generalizations
			Review Job Descriptions
			Identify Specific Objectives
		Establishing the Level of Compensation
		Developing the Method of Compensation
			Basic Types of Compensation Plans
			Straight Salary Plans
			Straight Commission Plans
			Combination Plans
			Linking the Method to the Objective
		Indirect Monetary Compensation
		Final Steps in Development of the Plan
			Pretest the Plan
			Introduce the Plan to the Sales Force
			Install the Plan, Monitor It Continuously, and Evaluate It Periodically
		SUMMARY
		KEY TERMS
		QUESTIONS AND PROBLEMS
		EXPERIENTIAL EXERCISES
		INTERNET EXERCISES
		REFERENCES
	10 Sales Force Quotas and Expenses
		Sales Quotas
			Relation to Sales Potential
			Sales Quotas and Strategic Management
		Purposes of Sales Quotas
			To Indicate Strong or Weak Spots in the Selling Structure
			To Furnish Goals and Incentives for the Sales Force
			To Control Salespeople’s Activities
			To Evaluate Productivity of Salespeople
			To Improve Effectiveness of Compensation Plans
			To Control Selling Expenses
			To Evaluate Sales Contest Results
		Types of Quotas
			Sales Volume Quotas
			Profit Quotas
			Expense Quotas
			Activity Quotas and Customer Satisfaction
			Combination Quotas
		Bases for Setting a Sales Volume Quota
			Quotas Based on Sales Potential
			Adjustments to Potential-Based Quotas
			Quotas Based on Factors other than Potential
		Administration of Sales Quotas
			Typical Administrative Weaknesses
			Gaining Sales Force Acceptance of a Quota Plan
		Sales Force Expenses
		Sales Force Expenses and Strategic Planning
		Internal Revenue Service Regulations
		Legitimate Travel and Business Expenses
		Characteristics of a Sound Expense Plan
			No Net Gain or Loss for the Reps
			Equitable Treatment of the Reps
			No Curtailment of Beneficial Activities
			Minimal Detail and Administrative Expense
			Clarity
			Company Control of Expenses and Elimination of Padding
		Methods of Controlling Expenses
			Salespeople Pay Own Expenses
			Unlimited-Payment Plans
			Limited-Payment Plans
			Combination Plans
		Control of Sales Force Transportation
			Ownership or Leasing of Automobiles
			Reimbursement Plans for Employee-Owned Cars
		Other Methods of Expense Control
			Training and Enforcement
			Credit Cards
			The Expense Bank Account
			Change in Nature of Entertainment
			Internet Selling and Telemarketing
			Careful Travel Planning
		SUMMARY
		KEY TERMS
		QUESTIONS AND PROBLEMS
		EXPERIENTIAL EXERCISES
		INTERNET EXERCISES
		REFERENCES
	11 Leadership of a Sales Force
		Leadership Characteristics and Skills
			Personal Characteristics
			Managerial Skills
		Leadership Style
			Transactional Leadership
			Transformational Leadership
		Situational Leadership
		Leadership and Strategic Planning
		Tools and Techniques of Leadership
			Personal Contact
			Sales Reports
			Telecommunications
			Printed Aids
			Meetings
			Indirect Supervisory Aids
		Outcomes of Effective Leadership
			Well-Trained Salespeople
			Trust among Salespeople
			Citizenship Behaviors
			Better Performance
			Sales Force Morale
		Problems Encountered in Leadership
			Poor Performance
			Substance Abuse
			Expense Accounts
			Unethical Behavior
			Sexual Harassment
		SUMMARY
		KEY TERMS
		QUESTIONS AND PROBLEMS
		EXPERIENTIAL EXERCISES
		INTERNET EXERCISES
		REFERENCES
Part 4 SALES PLANNING
	12 Forecasting Sales and Developing Budgets
		Sales Forecasting and Strategic and Operational Planning
		Explanation of Basic Terms
			Market Potential and Sales Potential
			Sales Forecast
		Estimating Market and Sales Potentials
			Customer Analysis
			Market-Factor Derivation
			Surveys of Buyer Intentions
			Test Markets
		Territory Potentials
		Sales Forecasting
			Difficulty of Sales Forecasting
			Sales Forecasting Periods
			Factors Influencing the Sales Forecast
		Sales Forecasting Methods
			Executive Opinion
			Sales Force Composite
			Moving Average Technique
			Exponential Smoothing Models
			Regression Analysis
			“Must Do” Forecasts
			Capacity-Based Forecasts
		Some Guiding Principles for Forecasting
			Fit the Method to the Product/Market
			Use More than One Method
			Minimize the Number of Market Factors
			Recognize the Limitations of Forecasting
			Use the Minimum/Maximum Technique
			Understand Mathematics and Statistics
		Review the Forecasting Process
		Developing Budgets
		Purposes of Budgeting
			Planning
			Coordination
			Evaluation
		Determining the Sales Budget
			Budgeting by the Percentage-of-Sales Method
			Budgeting by the Object-and-Task Method
		Budgets for Sales Department Activities
			The Sales Budget
			The Selling-Expense Budget
			The Administrative Budget
		The Budgeting Process for the Firm
		Budget Periods
		SUMMARY
		KEY TERMS
		QUESTIONS AND PROBLEMS
		EXPERIENTIAL EXERCISES
		INTERNET EXERCISE
		REFERENCES
	13 Sales Territories
		Nature and Benefits of Territories
		Designing Territories
			Determine Basic Control Unit for Territorial Boundaries
			Determine Location and Potential of Customers
			Determine Basic Territories
		Using Computers in Territory Design
		Assigning Salespeople to Territories
		Revising Sales Territories
			Indications of Need for Adjustment
			Why Are So Many Sales Territories Unbalanced?
		Territorial Coverage—Managing a Sales Rep’s Time
			Routing the Sales Force
			Time Management and Computer Support Systems
		SUMMARY
		KEY TERMS
		QUESTIONS AND PROBLEMS
		EXPERIENTIAL EXERCISES
		INTERNET EXERCISES
		REFERENCES
Part 5 EVALUATING SALES PERFORMANCE
	14 Analysis of Sales Volume
		Strategic Relationship between Planning and Evaluation
			Relation of Performance Evaluation to Sales Control
		Introduction to Sales Force Performance Evaluation
			A Marketing Audit: A Total Evaluation Program
			A Sales Management Audit
			The Evaluation Process
			Components of Performance Evaluation
		Performance Evaluation and Misdirected Marketing Effort
			Nature of Misdirected Marketing Effort: The 80–20 Principle
			Reasons for Misdirected Effort
			The Need for Detailed Data
		Bases for Analyzing Sales Volume
			Total Sales Volume
			Sales by Territories
			Sales by Products
			Sales by Customer Classifications
			The Insufficiency of Sales Volume Analysis
		Sales Force Automation and Performance Evaluation
		SUMMARY
		KEY TERMS
		QUESTIONS AND PROBLEMS
		EXPERIENTIAL EXERCISES
		INTERNET EXERCISES
		REFERENCES
	15 Marketing Cost and Profitability Analysis
		Nature and Scope of Marketing Cost Analysis
			Marketing Cost Analysis and the Accounting System
			Marketing Cost Analysis Compared with Production Cost Accounting
		Types of Marketing Cost Analysis
			Analysis of Ledger Expenses
			Analysis of Activity Expenses
			Analysis of Activity Costs by Market Segments
		Problems in Marketing Cost Analysis
			Allocating Costs
			The Contribution-Margin versus Full-Cost Controversy
		Use of Findings from Profitability Analysis
			Territorial Decisions
			Products
			Customer/Size of Order
		Return on Investment—An Evaluation Tool
			Use of Return on Assets Managed to Evaluate Field Sales Managers
		SUMMARY
		KEY TERMS
		QUESTIONS AND PROBLEMS
		EXPERIENTIAL EXERCISES
		INTERNET EXERCISE
		REFERENCES
	16 Evaluating a Salesperson’s Performance
		Nature and Importance of Performance Evaluation
			Concept of Evaluation and Development
			Concept of Evaluation and Direction
			Importance of Performance Evaluation
			Difficulties Involved in Evaluating Performance
			Importance of a Good Job Description
		Program for Evaluating Performance
			Step 1. Establish Some Basic Policies
			Step 2. Select Bases for Evaluation
			Step 3. Set Performance Standards
			Step 4. Compare Performance Standards
			Step 5. Discuss the Evaluation with the Salesperson
		Using Evaluation Data: An Example
			Joe’s Sales Performance
			Gus’s Sales Performance
			Paula’s Sales Performance
			The Sales Manager’s Decisions
		SUMMARY
		KEY TERMS
		QUESTIONS AND PROBLEMS
		EXPERIENTIAL EXERCISES
		INTERNET EXERCISES
		REFERENCES
	17 Ethical and Legal Responsibilities of Sales Managers
		Business Ethics and Sales Management
			The Legal–Ethical Confusion
			The Pressure to Compromise Personal Ethics
			The Problem of Determining Ethical Standards
			Ethical Situations Facing Salespeople and Sales Executives
			Establish an Ethical Climate
		Public Regulation and Sales Managers
			Price Discrimination
			Unfair Competition
			Green River Ordinances
			Cooling-Off Laws
			Current Problems
		SUMMARY
		KEY TERMS
		QUESTIONS AND PROBLEMS
		EXPERIENTIAL EXERCISES
		INTERNET EXERCISES
		REFERENCES
A P P E N D I X A INTEGRATED CASES
A P P E N D I X B CAREERS IN SALES MANAGEMENT
	The Challenge
	Career Paths in Sales Management
	The Rewards of a Sales Management Job
	What It Takes to Be a Successful Sales Manager
	Your Strategic Career Plan
	Final Word
	Reference
I N D E X E S NAME INDEX
COMPANY INDEX
SUBJECT INDEX