Chapter 21 Managing The Sales Force by PowerPoint by Milton M. Pressley University of New Orleans 21-1 Copyright 2003 Prentice-Hall, Inc. Sales Representative Robert McMurrys sales representative types:
Deliverer Order taker Missionary Technician Demand creator Solution vendor 21-2 Copyright 2003 Prentice-Hall, Inc. Designing the Sales Force Sales-Force Objectives and Strategy Common tasks for salespeople Prospecting
Targeting Communicating Selling Information gathering Allocating Figure 21.1: Designing a Sales Force 21-3 Copyright 2003 Prentice-Hall, Inc. Table 21.1: Sales-Force Structures Territorial: Each sales representative is assigned an exclusive territory. This sales structure results in a clear definition of responsibilities. It increases the reps incentive to cultivate local business and personal ties. Travel expenses are relatively low because each rep travels within a small area. Territory size: Territories can be designed to provide equal sales potential
or equal workload. Territories of equal potential provide each rep with the same income opportunities and provide the company with a means to evaluate performance. Territories can also be designed to equalize the sales workload so that each rep can cover the territory adequately. Territory shape: Territories are formed by combining smaller units, such as counties or states, until they add up to a territory of a given potential or workload. Companies can use computer programs to design territories that optimize such criteria as compactness, equalization of workload or sales potential, and minimal travel time. See text for complete table 21-4 Copyright 2003 Prentice-Hall, Inc. Designing the Sales Force Sales-Force Size Workload approach: Customers are grouped into size classes Desirable call frequencies are established for each class
The number of accounts in each size class is multiplied by the corresponding call frequency The average number of calls a sales representative can make per year is determined The total number of sales representatives needed is determined 21-5 Copyright 2003 Prentice-Hall, Inc. Designing the Sales Force Sales-Force Compensation Four Components: Fixed amount Variable amount Expense allowances Benefits 21-6 Copyright 2003 Prentice-Hall, Inc.
Managing the Sales Force Time-and-duty analysis Preparation Travel Food and breaks Waiting Selling Administration 21-7 Copyright 2003 Prentice-Hall, Inc. Managing the Sales Force Sales Quotas Supplementary Motivators Sales meetings Sales contests Evaluating Sales Representatives Sources of Information
Formal Evaluation 21-8 Copyright 2003 Prentice-Hall, Inc. Table 21.2: Form for Evaluating Sales Representatives Performance Territory: Midland Sales Representative: John Smith 1999 1. Net sales product A 2000 $251,300 $253,200 2001 2002
$270,000 $263,100 2. Net sales product B 423,200 439,200 553,900 561,900 3. Net sales total 674,500 692,400
823,900 825,000 4. Percent of quota product A 95.6 92.0 88.0 84.7 5. Percent of quota product B 120.4 122.3
134.9 130.8 6. Gross profits product A $50,260 $50,640 $54,000 $52,620 7. Gross profits product B 42,320 43,920
55,390 56,190 8. Gross profits total 92,580 94,560 109,390 108,810 See text for complete table 21-9 Copyright 2003 Prentice-Hall, Inc. Figure 21.4: Major Steps in
Effective Selling 21-10 Copyright 2003 Prentice-Hall, Inc. Figure 21.5: The Zone Agreement 21-11 Copyright 2003 Prentice-Hall, Inc. Principles of Personal Selling Relationship Marketing 21-12 Copyright 2003 Prentice-Hall, Inc.
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