managing the sales force- unit 2

8/12/2019 Managing the Sales Force- Unit 2

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Managing the Sales ForceUnit 2

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Job analysis:

Is the primary tool in personnel management

where in manager tries to gather, synthesize

and implement the information available

regarding the workforce in the concern.

Required so as to put right man on right job.

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The information collected under job

analysis is-

Nature of jobs required in a concern.

Nature/ size of organizational structure.

Type of people required to fit that structure.

The relationship of the job with other jobs in the concern.

Kind of qualifications and academic background required

for jobs.

Provision of physical condition to support the activities ofthe concern. For example- separate cabins for managers,

special cabins for the supervisors, healthy condition for

workers, and adequate store room for store keeper.4


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Two outcomes of job analysis

Job description

Job specification

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Job description

Is an organized factual statement of job contents in the

form of duties and responsibilities of a specific job.

It constitutes all those facts which are related to a job

such as : Title/ Designation of job and location in the concern.

The nature of duties and operations to be performed in that job.

The nature of authority- responsibility relationships.

Necessary qualifications that are required for job.

Relationship of that job with other jobs in a concern.

The provision of physical and working condition or the work environment

required in performance of that job. 6


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Job specification

Is a statement which tells us minimum acceptable

human qualities which helps to perform a job.

Helps in hiring an appropriate person for an appropriate

position. The contents are : Job title and designation

Educational qualifications for that title

Physical and other related attributes

Physique and mental health

Special attributes and abilities

Maturity and dependability

Relationship of that job with other jobs in a concern. 7


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RECRUITMENT AND

SELECTION OFSALES PERSONNEL

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Recruitment is the process

of attracting a large number

of potential applicants to

apply for the job that has to

be filled up

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SOURCES FOR

RECRUITMENT

INTERNAL

EXTERNAL

RECRUITMENT


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INTERNAL SOURCES OF RECRUITMENT

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EMPLOYEE REFERRALS

RECOMMENDATIONS

INTERNAL TRANSFERS

INTERNAL PROMOTIONS


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EXTERNAL SOURCES

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CONSULTANTS / EMPLOYMENT AGENCIES

ADVERTISEMENTS

COMPETITOR EMPLOYEES / RELATED

INDUSTRY EMPLOYEES

COLLEGES


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SELECTION

A selection system is a set of

successful screens. At any of the

screens an applicant may be

drooped from further

considerations

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Criteria used to select Sales Personnel

Requirement in Sales Personnel

Mental Aptitude Dimensions Personality Dimensions

Mental alertness

Business terms &

memory recall aptitude Communication skills

Numerical ability

Mechanical interest

Honesty & character

strength

Sociability Cynicism

High energy levels

Dominance

Competitiveness

Emotional maturity

Work habits

Work motivation 13


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Sales Personnel Selection Process

Screening the candidates

Selection test

Background check

Interview

Letters of recommendation

Physical examination

Making the employment

offer

Personality tests

Honesty tests

Psychometric tests

Group discussions

Patterned interview

Stress interviewGroup interview

Product interview

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Structured/ unstructured

interview

Telephonic interview

Aptitude tests

(Numerical / Logical)


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SALES TRAINING

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NEWLY HIRED EXPERIENCED/EXISTING

Initial sales training Follow-up or refresher training


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Sales Training Program

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Designing the

training program

Implementing the

training program

Evaluating the

training program


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Designing the

training program

Implementing the

training program

Evaluating the

training program

Determine objectives of the

training program

Review sales activities of the

organization

Discuss who should be

trained Identify training needs

Determine how much

training is required


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Designing the

training program

Implementing the

training program

Evaluating the

training program

Selecting the right trainer

Timing of training

Place of training


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Designing the

training program

Implementing the

training program

Evaluating the

training program

Salespersons reaction

Knowledge acquisition

Behavioral change/

transfer of learning

Organizational

outcomes


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A

AIM/ OBJECTIVES

C

CONTENT

M

METHODS

E

EXECUTION

E

EVALUATION 20

ACMEE

MODEL


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SALES FORECASTING

AND BUDGETS

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Sales Forecasting is not


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Sales forecast

Predicts how many people will want to buy

a product or service from a company in a

specific period


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Uses

Used to make big decisions for businesses,

including

What product lines are developed,

How much to spend on production,

How to promote products and services and

How to fulfill demand.


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Limitations

Are merely predictions, and can change based on

a company's actions or the condition of the

market as a whole.

Too low or too high forecast creates problems fora business.

Mistakes in forecasting happen because not all of

the variables that influence the company were

taken into consideration.


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Purpose of Sales Forecasting

Cash Flow-

How much of a product or service to buy or

invest in-

Enhance cash flow within a company


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Patterns and Trends-

Sales performance from the previous year-

Understand your customers' needs and

accommodate for them


Series

Series

Series


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Value

Excellent method for determining the value

of the business-

Estimate profits



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Employment and

Investment

Helps with decisions on staffing

Helps considering investments or

expansions in the production

capacity of the business



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Anticipating Problems

Helps develop a contingency plan

Helps spend time developing business

rather than dealing with unexpected issues



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Factors influencing sales forecasting

Business Environment- population growth, level

of income, etc

Conditions within the industry- industrial unrest,

rigid government rules and regulations, raw

materials

Internal Conditions of the Business Enterprise-

price policy, promotion policy, distribution

channel, etc


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Socio Economic Conditions- national

income, standard of living, etc

Factors Affecting Export Trade- import and

export policy of the government, etc

Factors influencing sales forecasting


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Steps in sales Forecasting

Forecasting of General Economic Conditions

Forecast of Industry Sales

Preparing Forecast of Company Sales


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Methods of Sales Forecasting

Jury of Executive/ Expert Opinion-

Invite the opinions of executives and

consultants


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Delphi Technique- Similar to the expert opinion method

opinion of the experts in sought independently

experts are kept informed about the general

opinion of the group, so that they can modify

their own positions, if they wish.

This continues until a consensus is reached


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Delphi Technique-


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Poll of Sales Force Opinion Method-

Estimates the buyers intentions from

experienced personnel in the sales force


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Advantages-

Utilizing the specialized knowledge of the

people in closet touch with market conditions

Because the salespeople help to develop the

forecast, they have greater confidence

Easy to breakdown according to products,territories, customers, middlemen, etc.


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Limitations-

This method can be used only when the firm

has competent high-caliber sales personnel.

Not generally trained to do forecasting , and

influenced by current business conditions in

the territories, salespersons tend to be overlyoptimistic or overly pessimistic


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Salespeople are often not aware of broad

changes taking place in the economy and of

trends in business conditions outside their

own territories


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Projection of past sales-

Trend Method

Time Series Method

Exponential smoothing


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Trend Method-

Provides a rough trend of the forecast on the

basis of past experience

Forecast may be made by adding a set

percentage to last years sales, or to a moving

average of the sales figures for several past

years


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Time Series Method

This method is used for long periods


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Time Series Method

This method is used for long periods

duly taking into account long term trends,

cyclical changes, seasonal variations and

irregular fluctuations


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Exponential smoothing-

This is a type of moving average that

represents a weighted sum of all past numbers

in a time series, with the heaviest weight

placed on the most recent data.


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Exponential smoothing-

This is a type of moving average that

represents a weighted sum of all past numbers

in a time series, with the heaviest weight

placed on the most recent data.

Next years sales= a (this years sales) + (1 a)

(this years forecast)


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Survey of customers buying plans-

What more sensible way to forecast than to ask

customers about their future buying plans?

Limitation-

Respondents do not always have well

formulated buying plans, and even if they do,

they are not always willing to relate them.


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Regression analysis-

Association between company sales and

other variables

Equation to explain sales fluctuations in

terms of related and presumably casual

variables


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Three major steps in forecasting sales through

regression analysis:

Identify variables casually related to company

sales

Determine or estimate the values of thesevariables related to sales

(Zandu Balm- Rainy/ Winter season/ Munni

Badnam Hui)

Derive the sales forecast from these estimates


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Econometric model building and

simulation-

Attractive for companies marketing durable

goods Derive equation or system of equations to

represent a set of relationships among sales

and different demand- determining

independent variables


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S= R + N

S= total sales

R= replacement demand

N= new owner demand


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Sales Budget

Budget-

A budget is a tool, a financial plan that is

used to plan for profits by anticipating

revenues and expenditure.


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Sales budget-

The sales budget the blueprint for making

profitable sales

It is a projection of what a given sales program

means in terms of sales volume, sellingexpenses, and net profits


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Purposes of the Sales Budget-

Planning

Coordination

Control

Planning


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Planning-

Determines how the marketing and sales

objectives will be met

Co-ordination-

Helps maintaining a desired relationship between

expenditure and revenues

Evaluation-

Tool to evaluate the sales departments

performance

ESTIMATING BUDGETED SELLING


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ESTIMATING BUDGETED SELLING

EXPENES

Sales department budget is the cost, running

the marketing function in the budgetary period

Components-

Selling expenses

Advertising Expenses

Administrative expenses


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Types of Budget


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Types of Budget

Sales budget- projection of revenue computed

from forecast unit sales and average prices

Selling expenses budget- approved amount that

the department will spend to obtain the revenues

projected in the sales budget.

Profit budget- merged sales budget and theselling expense budget to determine gross profit


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Basis of Selling Expense Budgets

Affordable method

Percentage of sales method

Competitive parity method

Objective and task method

Bidding system

Return on investment (ROI)

Sales Budgeting Procedures


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Sales Budgeting Procedures

managing the sales force- unit 2

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