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18-5. Sales Force Management Questions and Answers 100% Solved
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18-5. Sales Force Management
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18-5. Sales Force Managementsales force - answer- directly responsible for generating sales revenue
- without adequate sales revenue, bizs cannot survive
- a firm's reputation is often determined by the ethical conduct of its sales force
positive ethical climate - answer linked with decreasing role stress and turnover
intention and improved job attitudes and job performance in sales
negative ethical climate - answer triggers higher-performing salespeople to leave a
company at a higher rate than those in a company perceived to be ethical
success of a company's sales force depends on: - answer- adequate compensation
- room for advancement
- sufficient training
- management support
8 general areas of sales management - answer- establishing sales force objectives
- determining sales force size
- recruiting and selecting salespeople
- training sales personnel
- compensating salespeople
- motivating salespeople
- managing sales territories
- controlling/evaluating sales force performance
Establishing Sales Force Objectives - answer- sales objectives tell salespeople what
they are expected to accomplish during a specified time period
- give the sales force direction and purpose and serve as standards for evaluating and
controlling the performance of sales personnel
- should be stated in precise, measurable terms
- specify the time period and geo areas involved
- must be achievable
- usually developed for both total sales force and individual salespeople
objectives for the entire force: - answer- stated in terms of sales volume, market share,
or profit
- sales volume objectives refer to dollar or unit sales
- market share: usually call for an increase in the proportion of the firm's sales relative to
the total number of products sold by all bizs in that industry
- profit: stated in terms of dollar amounts or ROI
, objectives for individual salespeople: - answer- state din terms of dollar or unit sales
volume
- other bases include average order size, average number of calls per time period, and
ratio of orders to call
Determing sales force size - answer- sales force size influences the company's ability to
generate sales and profits
- affects the compensation methods used, salespeople's morale, and overall salesforce
management
- must be adjusted periodically bc a firm's marketing plans change along with markets
and forces in the marketing envirionment
danger in cutting size to increase profits: - answerthe sales org may lose strength and
resiliency, preventing it from rebounding when growth occurs or better market
conditions prevail
methods to determine optimal sales force - answer- determining how many sales calls
per year are necessary for the org to serve customers effectively and then divide this
total by the average number of sales calls a salesperson makes annually
- based on marginal analysis
- additional people are added to the salesforce until the cost of additional salesperson =
the additional sales generated by that person
optimal sales force equation - answertotal sales calls per year / average number of
sales calls a salesperson makes annually
Recruiting and Selecting Salespeople - answer- can help assure successful
organizational performance
- the costs of hiring and training a salesperson increases as product knowledge, service
requirements, and technical skills are required
- recruiting errors are expensive
- sales manager establishes a set of qualifications before beginning to recruit
- recruitment should not be sporadic
- selection process should ensure that new sales personnel are available where/when
needed
recruiting - answerdeveloping a list of qualified applicants for sales positions
qualifications set before recruitment: - answer- there is no set of generally accepted
characteristics
- good salespeople exhibit: optimism, flexibility, self-motivation, good time management,
empathy, and the ability to network and maintain long-term customer relationships
- there is a connection bw high sales performance, motivational leadership, and
employees who are coachable and highly competitive
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