Sales & Distribution Management Presentation

Training & Motivating The Sales Force

By

Group 2
Chitranshu Shukla
Kushagra Kaushal
Shrestha Raychaudhuri
Vivek Kumar

Group II- SDM Presentation:Training &

December 7, 2017 1
Motivating The Sales force
Contents
Part I: Training
Values of Sales Training (Person 1)
Sales Training Process- (Person1)
Indentifying Training Needs- (Person1)
Designing & Executing Sales Training Program-
(Person2)

Evaluation of Sales Training Program-(Person1)

Group II- SDM Presentation:Training &

December 7, 2017 2
Motivating The Sales force
 Part II: Motivation
What is motivation? (Person3)
Importance of Motivation (Person3)
Relevance of Motivational Theories to
Salespeople (Person3)
Selecting Effective Mix of Motivational Tools
(Person4)

Guidelines for Motivating Sales People (Person4)

Group II- SDM Presentation:Training &
December 7, 2017 3
Motivating The Sales force
 Value of Sales Training
Sales manager have recognized that sales training
is important for success of salespeople, It leads to
Selling effectiveness
Improved customer relations
Higher retention of salespeople

sales manager invests time towards planning and

implementation of training program.

Group II- SDM Presentation:Training &

December 7, 2017 4
Motivating The Sales force
 Time invested in sales training

Types of sales Training period for new Continuing training for

salesperson per experienced salesperson
year(Months) (hours per year)
Consumer products 3.4 35.8

Consumer services 3.3 33.9

Industrial products 4.8 31.6

Office products 3.8 41.8

Industrial services 4.8 30.8

Office services 3.2 33.3

Group II- SDM Presentation:Training &

December 7, 2017 5
Motivating The Sales force
 Sales Training Process
Identifying who should be trained

Newly hired salesperson

Generally varies from 2-6 months

Existing salesperson
refresher courses training mostly depends on
objectives and needs, trade off b/w gains from
training and lost sales.
Group II- SDM Presentation:Training &
December 7, 2017 6
Motivating The Sales force
 Intermediaries Sales Representatives
Companies train sales representative of
intermediaries such as dealers, distributors in order
to reduce customer complaints and equipment
downtime.
Identifying training needs
to understand specific objectives of training for
individual salesperson, such as improving product
knowledge, selling techniques or relationship
building.
Group II- SDM Presentation:Training &
December 7, 2017 7
Motivating The Sales force
 Methods used to identify Training Needs

Sales Manager Observation

Sales force survey
Customer survey
Performance testing
Job Description
Sales force audit

Group II- SDM Presentation:Training &

December 7, 2017 8
Motivating The Sales force
 Popular sales training needs
Product Knowledge
Customer Knowledge
Competitive Knowledge
Selling Skills
Company Knowledge

Group II- SDM Presentation:Training &

December 7, 2017 9
Motivating The Sales force
 Evaluation of sales training Program
Reactions
Learning
Behavior
Results

Group II- SDM Presentation:Training &

December 7, 2017 10
Motivating The Sales force
Designing & Executing Sales Training
Program
Five Steps/decisions includes designing &
executing a STP.
1. Aims ( Why?)
2. Content (What?)
3. Methods (How?)
4. Execution (Who, When , Where , What?)
5. Evaluation

These decisions summed up to popularly known as ACMEE

Group II- SDM Presentation:Training &
December 7, 2017 11
Motivating The Sales force
1.Aim /Objectives:
Orienting new sales person
Increasing productivity, sales, profit etc.
Improve customer relations
Introduce new product to market etc etc.

Benefits of setting Objectives/Aims:

Describe the expectation of sales training
Get budget support from top mgmt.
Help in measuring effectiveness of training
Effective communication tool

Group II- SDM Presentation:Training &

December 7, 2017 12
Motivating The Sales force
2. Content
Initial training of new sales trainees
Knowledge of company, customer, competitor,
Product & Application, selling process & skills &
other which may be negotiating skills, ethical & legal
issues.
Continuing training program for existing or
experienced sales persons
Specific depending upon the training needs &
objectives. e.g New product launch, change in sales
organization structure.
Group II- SDM Presentation:Training &
December 7, 2017 13
Motivating The Sales force
3. Methods of sales Training
Grouped into five categories:
I. Class Room/ Conference Training
II. Behavioral learning /Simulations
III. Online Learning
IV. Absorption Training
V. On-the-Job Training (OJT)

Selection of different methods depends upon how well

topics & audience are combined.

Group II- SDM Presentation:Training &

December 7, 2017 14
Motivating The Sales force
 Classroom/Conference Behavioral learning
Lectures Role playing
Demonstrations Case Studies
Group Discussions Simulation /Games

On-the Job Training Online Training

Sales
Mentoring Distance Learning
Training
Job Rotation EPSS
Methods
Interactive
Multimedia Training

Absorption Training
Audio Cassettes
CDs, Films , Videos
Books, Manuals

Group II- SDM Presentation:Training &

December 7, 2017 15
Motivating The Sales force
Selecting an Appropriate Method

Group II- SDM Presentation:Training &

December 7, 2017 16
Motivating The Sales force
 Group Training Method Individual Training Method

Lecture Distance Learning

Demonstration Demonstration

Group Discussion EPSS

Role Playing Interactive Multimedia

Case Studies Audio Cassettes

Simulation Games CDs, Books, Manuals

Sensitivity Analysis On-The-Job

Films Job Rotation

Group II- SDM Presentation:Training &

December 7, 2017 17
Motivating The Sales force
4. Execution of Training (Who, When, Where What?)

Who will be the trainees?

New & Existing Sales persons, Intermediaries, Sales Managers.
Who will conduct training?
Line Sales Person, Staff Trainers, Outside Training Specialists.
When should the training take place?
Where should the training be done?
Centralized Training, Decentralized Training

Group II- SDM Presentation:Training &

December 7, 2017 18
Motivating The Sales force
 What Would be the budgeted expenditure?
What are the Instructional Material to be
used?
Manuals, Company Publications.
What are the Training Aids required?

Group II- SDM Presentation:Training &

December 7, 2017 19
Motivating The Sales force
 MOTIVATING THE SALESPEOPLE
Intrinsically motivated
Extrinsically motivated

Group II- SDM Presentation:Training &

December 7, 2017 20
Motivating The Sales force
 DIMENSIONS OF MOTIVATION

INTENSITYY

DIRECTION OUTCOME

PERSISTENCE

Group II- SDM Presentation:Training &

December 7, 2017 21
Motivating The Sales force
 IMPORTANCE OF MOTIVATION
Changes in marketing environment
Conflicting company objectives
Unusual nature of sales job
Separate motivational package

Group II- SDM Presentation:Training &

December 7, 2017 22
Motivating The Sales force
 MOTIVATIONAL THEORIES
Maslows hierarchy of needs
Hertzberbs dual-factor theory
Vrooms expectancy theory
Churchill, Ford & Walker model

Group II- SDM Presentation:Training &

December 7, 2017 23
Motivating The Sales force
 MASLOWS HIERARCHY OF NEEDS

Group II- SDM Presentation:Training &

December 7, 2017 24
Motivating The Sales force
 HERTZBERBS DUAL-FACTOR THEORY

Group II- SDM Presentation:Training &

December 7, 2017 25
Motivating The Sales force
 VROOMS EXPECTANCY THEORY

Group II- SDM Presentation:Training &

December 7, 2017 26
Motivating The Sales force
 CHURCHILL, FORD & WALKER MODEL

Group II- SDM Presentation:Training &

December 7, 2017 27
Motivating The Sales force
 Selecting an Effective Mix of
Motivational Tools:
Different things motivate different people.
Meeting the needs of customers, salespeople,
and the company management.
Set up of a competitive climate through
recognition of good work.

Group II- SDM Presentation:Training &

December 7, 2017 28
Motivating The Sales force
 Types of Motivational Tools

Financial Rewards/Tools Non-Financial Reward/Tools

Financial Compensation Plan Promotional Opportunity
--Salary Sense of Accomplishment
--Commission Personal Growth Opportunity
--Performance Bonus Recognition
--Fringe Benefits Job Security
--Combination Sales Meetings
Sales Contests Job Enrichment
Team Compensation Effective Supervision
Global Compensation issues Sales Training Program

Group II- SDM Presentation:Training &

December 7, 2017 29
Motivating The Sales force
 Financial Rewards
Financial Compensation Plan
a) Current spendable income (such as salary, commission and bonus)
b) Deferred income (like retirement pension pay, pf or gratuity
payment)
c) Fringe Benefits
A study found that sales people prefer salary raise and commission or
incentive over any other type of motivational reward.

Sales Contest: Short-term selling campaign offering incentive like

prize or awards, effective tool if properly design.
a) Each sales person has an equal opportunity to win.
b) Basis of awards be for improvement over current performance
c) Select open-ended contest, in which unlimited no. of sales people
can win. Prizes can be cash, merchandise or travel.

Group II- SDM Presentation:Training &

December 7, 2017 30
Motivating The Sales force
 Continued..
Team Compensation (Important in B2B)
-Difficult to determine individual performance.
-Reward both individual and team performance.
-Team members of a selling team should evaluate their fellow member.
Global Compensation Issues
-Cultural factors have strong influence
Southeast Asia- Straight salaries.
Japan- Bonus or commission based on entire sales force performance.
US- compensation is influenced more by variable element.

Group II- SDM Presentation:Training &

December 7, 2017 31
Motivating The Sales force
 Non-Financial Rewards
Promotion
-Provides higher responsibility and authority.
-Ranked high among younger and better educated sales person.
Sense of Accomplishment
-Comes out from the salesperson`s mind.
-Look to maximize positive feedback for each member of your team.
-more powerful with a little explanation to show you understand their
work.
Personal Growth Opportunities
-policies by which employee attend seminars and workshops on topics
of their choice.

Group II- SDM Presentation:Training &

December 7, 2017 32
Motivating The Sales force
 Continued..
Recognition
-Most Sales person take pleasure in getting public recognition of
their successful achievement.
-LIC has a formal reward program called crorepati agent.
Sales Meeting
-Provide a break, a chance to meet with seniors & peers.
-important tool for communication and education.
Job Enrichment
-Gives more responsibility, variety of tasks, and growth
opportunity.
-It gives more decision-making, planning and controlling power.

Group II- SDM Presentation:Training &

December 7, 2017 33
Motivating The Sales force
 Guideline for Motivating Salespeople
Differences between Can`t Do and Won`t Do
-Motivational problem (i.e., won`t do)
-Ability problem (i.e., can`t do)
Sales people must have the ability to perform as well as the motivation
to do the sales job.
Include Individual Needs into Motivational
Programs
-One motivational program may not work for all.
-Practically not possible to design program for each sales person.

Group II- SDM Presentation:Training &

December 7, 2017 34
Motivating The Sales force
 Plateaus Salespeople
-performed well in the past, but not performing up to the
expectation at present.
-Good relationship with few major customer.
-main reason: less chance of promotion, lack of interest,
perception of unfair treatment.
Proactive Approach and Good
Communication
-listen carefully to salespeople, response promptly.
-provide freedom to talk business and personal problems.
Group II- SDM Presentation:Training &
December 7, 2017 35
Motivating The Sales force