Exam 3

Initiation to Task
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Terms in this set (62)
Job AnalysisDeveloped for recruiting and selection Indicates training needs for new salespeopleWhat are some training needs that may be identified from an assessment method?Sales Techniques Product Knowledge Customer Knowledge Competitive KnowledgeWhen the sales manager is evaluating sales training alternatives, what are 3 key questions to be answered?Who will conduct the training? Where will the training be conducted? Which methods and media will be used?When deciding who will conduct the training, which is the most common source for trainers and why is it used more often?Internal is the most common Company employees are aware of the job so specific terms and situations can be covered Not generic training packages Sales managers can conduct trainings Easier to control the content and coordinate activities4 methods for delivering sales trainingClassroom/Conference Training On-the-job Training Behavioral Simulations Absorption TrainingClassroom/Conference TrainingLectures, Demonstrations, Discussions Product basics, new products, company orientationsOn-the-job TrainingActual work circumstances with mentor (sales manager) Mentoring advising by showing how to do thingsBehavioral SimulationsGames that simulate circumstances Rep runs a business using the product to gain better understanding of features/benefits Role playingAbsorption TrainingMaintain library of training materials that are distributed for use when salespeople travel, or at homeTwo options for where training may be conductedDecentralized CentralizedDecentralizedSales people can continue working their jobs expenses are less District or regional officesCentralizedExposure to company culture, fewer distractions, consistent delivery of training Corporate HeadquartersWhat is the responsibility of the sales manager when training is underwayMonitor progress of the trainees Ensure adequate presentation of the training topics Keep trainees motivated to learnSales LeadershipThe ability to influence others to achieve common goals for the collective good of the sales organization and companySales ManagementActivities related to planning, implementing, and controlling the sales functionSales SupervisionActivities related to working with sales subordinates on a day-to-day basisTransactional Leadership StyleUses rewards and punishments to obtain desiredTransformational Leadership StyleInspiring salespeople to perform Articulate a vision, show them how, high expectations, supports them, coaches them, positive orientationTransactional ProsRewards those motivated by self-interest to follow instructions Provides unambiguous structure for organizations requiring repetitive tasks Achieves short-term goals quickly Rewards and penalties are clearly defined for workersTransactional ConsRewards on a practical level only, such as money or perks Creativity is limited since the goals and objectives are already set Does not reward personal initiativeTransformational ProsExcellent at communicating new ideas Good at balancing short-term vision and long-term goals Experience building strong coalitions and establishing mutual trust They have integrity and empathy for othersTransformational ConsIneffective in initial stage or ad-hoc situations Require an existing structure to fix Bad fit in bureaucratic structuresLeader-Member Exchange Model (LMX)Focuses on salesperson - sales manager dyad Leadership style tailored to the individual Within the dyad there is an exchange of information Trust is key- positive relationship wit job satisfaction, satisfaction with the manager, and performance Negative relationship with role conflictWhat are the five bases of powerExpert Referent Legitimate Reward CoerciveExpert Power"I respect her knowledge and good judgement because she is well-trained and experienced"Referent Power"I like him personally and regard him as a friend"Legitimate Power"She has a legitimate right, considering her position as sales manager, to expect that her suggestions will be followed"Reward Power"He is in a good position to recommend promotions or permit special privileges for me"Coercive Power"She can apply pressure to enforce her suggestions if they are not carried out fully and properly"Which sources of power are usually the best to use?Coercive Power (actions may encourage turnover) Reward Power (Value of rewards change among salespeople)Influence Strategies and power bases drawn uponThreats (coercive power) Promises (reward power) Persuasion (expert or referent power) Relationships (referent or legitimate power) ManipulationLead and Opportunity CoachingCoaching focuses on understanding the customer, their business challenges and goals, your company's value proposition, the customer's buying center members and planned sales call objectivesFunnel or Pipeline CoachingCoaching focuses on forecasting opportunities, moving opportunities through the pipeline, looking at the number of opportunities and their time horizons, and prioritizing opportunitiesSkills and Behaviors CoachingCoaching focuses on aligning the sales conversation with the customer's path, uncovering customer needs, communicating, and demonstrating value to the customer, and sales call skill such as rapport building, communications, use of visuals, closing, etc.Account CoachingCoaching focuses on understanding of accounts (e.g., their customers and markets) through research and analysis, threats and opportunities facing current accounts, and developing strategic opportunities within accountsTerritory CoachingCoaching focuses on identifying appropriate industries, verticals and customer segments, identifying important buyer roles within these, and planning how to improve and evaluate presence in these industries, verticals and segmentsRecencyTiming is important Have the coaching session close to the time of the activity (e.g., sales call) Learning is facilitated when it is immediately appliedRepetitionRepeat yourself Coach after every sales call to reinforce learningTips for having an effective sales meetingsShare the meeting agenda ahead of time ("sell" the value of the meeting) Send out material to preview Keep the meeting as short as possible Avoid covering too many issues Provide an educational component to help improve salesperson skills Provide "next steps" for anything decided upon at the meetingWays to encourage ethical behaviorsBuilding trust-based relationships with salespeople Addressing ethics during the socialization process Adopt a code of ethics Punish unethical behaviorsMoral ManagementManagement activity conforms to a standard of ethical or moral behavior, seeks profitability within the confines of legal obedience and ethical standardsAmoral ManagementDecisions lie outside the sphere to which moral judgements apply, seeks profitability Other goals are not consideredImmoral MangementSeeks profitability and organizational success at any price Selfish Management cares only about its or the company's gainGuidelines for motivating and rewarding salespeopleRecruit and select salespeople whose personal motives match the requirements and rewards of the job Attempt to incorporate the individual needs of salespeople into motivational programs Provide adequate job information and ensure proper skill development for the salesforce Use job design as a motivational tool The job itself can be motivating when they enjoy it Concentrate on building self-esteem of salespeople Take a proactive approach to seeking out motivational problems and sources of frustration in the salesforceIntensityThe amount of mental and physical effort put forth by the salesperson, time spend on goals as compared to other activitiesPersistenceThe extent to which goal-directed effort is put forth over time, how many times salesperson has tried/failedDirectionThe extent to which an individual determines and chooses efforts focused on a particular goal, meet quotas, locate prospects, sell new productsCharacteristics of an effective salesforce reward systemAcceptable ratio of costs and salesforce output (e.g., sales volume) Salesforce must deliver value equal to or greater than costs of doing so System should encourage activities consistent with the firm's overall, marketing, and salesforce objectives and strategies System should attract and retain competent salespeople, thereby enhancing long-term customer relationships Reward salespeople performance based on measurable criteria that are easy to comprehend Allow adjustments that facilitate administration of the reward system A clearly stated, reasonable flexible planCompensation RewardsThose given in return for acceptable performance or effort They can include non-financial compensationNon-Compensation RewardsThose beneficial factors related to the work situation and well-being of each salespersonLarger proportion of total amount of salaryWhen customer service and other non-sales objectives are deemed more important This gives management more control over rewarding the sales force's relationship selling activities When the product has been pre-sold through advertising and the salesperson is largely an order takerLarger proportion of total amount on incentive payWhen the firm's main emphasis is on short-term sales (increasing sales volume, profitability, or new customers) When selling skill is the main key to success