UU-MBA-SEM-III- Sales and Distribution Management-48-125

Download as pdf or txt
Download as pdf or txt
You are on page 1of 78

Sales and Distribution Management

UNIT - 2 THE SALES FORCE

STRUCTURE
2.0 Objectives
2.1 Introduction
2.2 Size of the sales force
2.3 Sales organization based on
2.3.1 Customer
2.3.2 Geography
2.3.3 Product and combinations and current trends
2.4 Sales training programmes and motivating the sales force
2.4.1 Sales force compensation
2.4.2 Sales force incentives
2.4.3 Sales force evaluation
2.5 Controlling the sales effort
2.5.1 Sales quota
2.5.2 Sales territories
2.5.3 Sales audit
2.6 Let Us Sum Up
2.7 Key Words
2.8 Some Useful Books
2.9 Answer to check your progress
2.10 Terminal Questions

2.0 OBJECTIVES

After learning this unit, learners will be able to:

 State the meaning of sales force.


 Define sales force.
 Enumerate the objectives of sales force.
 Differentiate between sales force and sales force management.
 The dependence of sales force on customer, geography, product
and combinations and current trends.

48
Sales and Distribution Management

 Controlling the sales effort viz., sales quota, sales territories and
sales audit.

2.1 INTRODUCTION

The sales force is the employee force of an organization that is responsible


for selling the products and services. The primary functions which are
included in the sales force definition are the interaction with the
customer.
They are responsible for communicating the details, information to the
customers and gathering information in the form of feedback from the
customer. Hence, the sales force is an important aspect of marketing
management, customer relationship management.
Sales Force Management
Sales force management is subdivided into part of marketing management.
As marketing part involves the designing and creating of marketing
strategies. Whereas, it is the responsibility of sales force management to
implement those strategies. Moreover, sales management is of
the elements of the marketing process.
Because they implemented strategies they are called muscles of marketing
management.
Sales force management involves personal selling, customer relationship
management. Because of these reasons, sales force management is a
customer-oriented department. And, one of the basic aspects which are
described in of sales force is personal selling.
The success of a business depends upon the performance of its
salesperson. Moreover how they build a relationship with their customers.
Objectives Of Sales Force
Sales force definition explains what are the reasons and objectives of a
sales force. Sales managers are not only responsible for personal selling
activity. But also they are responsible for managing a large and often
diverse set of salespeople. Plus, they are also responsible for managing
sales efforts within and outside companies.

49
Sales and Distribution Management

Here are the objectives of any salesforce which are desired by the sales
management:

Fig : 2.1 Objectives of Sales Force


Organization Growth
A very basic and primary objective of any organization is growing. As
every organization is working to grow and improve performance. So, it
becomes a primary objective for the basic operation department i:e sales
management to contribute to organizational growth.
Note: Organization’s growth is directly proportionate to the market share
and sales volume.
With continuous growth in sales and improvement in marketing
strategies organization tends to increase its market share, which results in
the rapid growth of an organization.
Compliment Marketing Activities
As we discussed in the sales force definition, they are the muscles of
marketing management. So, sales need to compliment the marketing
strategies and planning.
For example: when marketing teams design strategies for sale or market
test or brand promotion, they will only be successful when the sales force
will implement those strategies correctly.

50
Sales and Distribution Management

Moreover, complimenting marketing strategies includes implementing


and getting feedback from customers as well.
Revenue Generation
Another important and necessary objective of salesforce is to create more
revenue for an organization. With constant growth and increase volume of
sales, the proportion of revenue also starts to increase.
And the most important and basic purpose of the sales force is creating or
generating revenue for the organization
Market Leadership
Higher profits, revenue, sales are the results of how much an organization
can achieve the market share. So, it’s important for a sales team to achieve
and capture the maximum market share or to become the market leader to
maximize their sales, revenue and growth.
For example, Jio has maximized its profits, revenue by becoming the
market leaders in the telecom industry. As a result, they have maximum
market share, revenue, growth.
Motivate the Sales Force
Another important job which counts in the sale force definition is that the
employees or the force require to have motivated people. To so, sales
managers requires keeping incentives, awards rewards, seminars, training.
All these help in motivating the employees, so they can give their best
performance.
Note: Number of incentives and rewards given mostly in the sales
department.
Also, it is one of the HR-related roles of sales manager which they have to
perform.
Increase in Sales Volume
A very basic and primary objective of a sales team is to increase the
volume of organization sales. As, when the sales increase with the market
share increases, with this revenue increases and there is an increase in the
organization’s growth.
Sustained Profits
With increasing profits, sales and market share organization target to
achieve stability in the organization’ growth. According to the sales force

51
Sales and Distribution Management

definition sales management strives to increase sales and reducing costs,


this ensures good profits for the organization.
Converting Prospects to Customers
Converting a prospect into a customer requires planning and creativity.
The process, techniques and strategies are created and accomplished by
the sales force management.
Converting the prospects increases the market share and there way toward
market leadership. As a result, the organization achieves high sales,
revenue and growth.
These were the objectives of the sales force that the organization set for
the sales department to achieve the organization’s vision and mission. The
objectives of the sales force predefine in sales force definition.
Sales Force Process
The process of communication between salesperson and customer seems
simple and small. But, in reality, the process of selling and working of
sales managers have more comprehensive and rich work.
Any type of selling either personal or online requires a lot of planning,
preparation, and analyzing before and after the sales has been done. As the
sales force definition describes the requirement a salesperson is
knowledgeable about the product and the product hierarchy of the
organization.
Here is the entire process of which followed in sales management:

Fig: 2.2 Sales Force Process

52
Sales and Distribution Management

1. Pre-Sale Preparation
Before making sales every sales manager needs to gather information
regarding the product and about the customer’s problems as well. Since
customers face problems regarding the use of the product or purpose or
details or features of the product.
So, a sales force needs to know about the product and they have to prepare
and find solutions for customers problem. According, to sales force
definitions sales-person, must prepare themselves regarding company,
product, market, customers, environment, competitors.
Organization prepare provide sales and leadership training programs to
develop skills for problem-solving and understanding customers’
demands.
2. Prospecting
After preparing themselves about the surroundings, products etc, now
salesperson needs to find the prospects. Prospects refer to potential
customers. Prospects are the people, who are unwilling, not have the
ability, unsatisfied, not knowledgeable about the product to buy.
As, the sales force definition describes salesforce find the potential
customers from current customers, other sales-people, online actives,
location targeting. Afterwards, the salesforce prepares the list of prospects
who have the willingness, power, and motivation to buy the product. So,
the salesperson can approach them for sale.
3. Pre-Approach
Once the salesperson has selected their prospects, now it’s time to prepare
them for the sale. Sale preparation includes finding the customers
problems, needs and wants. Afterwards, the salesperson finds solutions to
customer problems.
Last, they prepare their presentation in such a way that it provides a
solution and make a sale to the customer.
4. Approach & Sales Presentation
In the next step as the sale force definition describes the salesperson who
contacts the customer. Contacting can be in form of face to face, phone,
interview, and the salesperson. The approach consists of two major parts.
Obtaining an interview, and the first contact.

53
Sales and Distribution Management

Once the salesman has sought and found potential customers and he has
matched their wants with his product, he is ready to formally present that
product to the customer.
The presentation can be:
1. Oral
2. Visual
3. Verbal
A good presentation must be:
1. Clear
2. Complete
3. Confident
4. No demining of Competition
5. Post-Sale Activities
As the sales force definition describes the customer’s problems and
solution. Post-sale activities include analyzing performance.
Analyzing what wrong and what good has been done on how to improve
the sales force process to improve sales management and the organization
revenue.
Another thing which counts in the post-sales activity is customer relation,
post-sales services. To build strong relationships with the customer, it is
important to provide post-sale service, ask them about their experience. It
not only builds strong relationships with customers but also makes future
sales with the customer easier.
Post sale Activity Must include:
1. Post-sale services
2. Feedback
3. Asking for any other requirement
Sales Force Planning In Sales Management
Definition describes the sales managers have to plan their every step in
sales management. Sales force planning incudes the objectives, barriers
etc. to how to create a call of action.
Careful sales force planning gives a much clear vision to the organization
and a proper roadmap for the sales department to follow.

54
Sales and Distribution Management

Here are the steps which sales force planning follows while doing:

Fig : 2.3 Sales Force Planning


Evaluate the Current Situation
A very first step an organization has to is to evaluate their current position.
Evaluating their current position in the market or environment, helps them
to understand what are the important and requirements for the organization
in the current position.
For example, if an organization is having a great position, a good market
share and have the ability to invest in further projects. The organization
can plan or set the objective in the next step of expanding according to
horizontal marketing.
Define Your Objective
As we discussed earlier in the sales force definition it is important to lay
down the objective for the salesforce to achieve. The objective is not only
referred to as department objectives. These are ay down considering the
organizational needs and requirements. Plus the objectives in sales force
planning are mostly inspired by the mission and vision of an organization.
Knowing the Barriers
After knowing where the organization is heading towards, a manager
should also analyze the barriers which can be proved as road blockers or
disturbed the sales force planning. As we discussed in the sales force
definition customers have issues with products.

55
Sales and Distribution Management

Similarly, a sales force faces barriers like competitions products, customer


services, market environment etc.
SWOT Analysis
After the organization has understands the barriers which can cause the
problems externally now, the organization should also know about the
internal position of an organization as well.
For example: In our earlier example organization was desired to expand
its operation. For that purpose, the organization conduct a SWOT analysis
to identify the threats and opportune within the Sales Management of the
organization.
Create Your Sales Call Strategy
Creating a sales strategy refers to creating a plan to implement marketing
strategies. As sales management are the muscles of the marketing
management described in the sales force definition. So, in a sales force,
the planning call designs a strategy in such a way that complements the
marketing management strategies and plans.
Identify Needs
Once the sales team finalizes their strategy, then its time to identify the
requirements which need to be present for the implementation of the
strategy. Generally, the needs for implementing the sales force plan are
related to:
1. Recruitment
2. Training
3. Technology
4. Funds
Requirements could also include a list of accounts. The important thing is
to identify needs upfront.
Outline an Action Plan
Outlining the action plan which in the sales force definition explains
including items such as finalizing pricing with your company before you
make the sale. It is more like a to-do list that is done by the sales
professionals to make a sale.
Let’s assume an organization has set the target of increasing the sales
volume by 40%. And the marketing department set the marketing strategy

56
Sales and Distribution Management

as well to increase sales volume. Afterwards, sales management creates


the call strategy- increase in sales of each salesperson by 7%. So, the action
plan will be the individual plan which each employee creates to achieve
their specific target.
Here were the steps which are included in sales force planning. It
describes the sales force definition, meaning and its application in an
organization.
Sales Force Example
Sales force example are some real-life examples of some industry which
operates with big salesforce team in an organization. Here are a few sales
force examples of some industry to give a clearer idea of sales force
definition.

 Examples of consumer sales forces include automobile


salespersons.
 Sales staffs found in a variety of retail stores.
 Salesforce of the Telecom industry focused on telephonic sales
 Another example of telephonic sales is insurance industry agents.
 The largest sales force are employed in industrial goods industries.

These were the few sales force examples of industries that helps to connect
the theoretical knowledge of sales force definition to a real-life example.

2.2 SIZE OF THE SALES FORCE

In most companies, the sales force is the most critical part of the business;
thus determining the sales force size is critical in planning for sales
governance. Although the corporate sales team is one of the most valued
assets of the company, it can also be expensive to maintain. Increasing the
size of the sales force may increase sales volume but at a higher cost to the
company. It is therefore necessary to determine the optimal sales force
size. The size of the sales force will also affect territory design.

57
Sales and Distribution Management

The three most commonly used methods to determine sales force size
are as follows:
Breakdown Method
This is the simplest method among the three. In this method, each member
of the corporate sales team is assumed to possess the same level of
productivity. In order to determine the size of the sales force needed, the
total sales figure forecasted for the company is divided by the sales likely
to be generated by each individual.
However, this method fails to account for differences in the ability of
salespeople and the difference in potential of each market or territory. It
treats the sales force as a function of the sales volume, and does not take
profitability into account.
Workload Method
The workload method is also known as the buildup method. In this
method, the total workload (i.e., the number of hours required to serve the
entire market) is estimated. This is divided by the selling time available
per salesperson to forecast the size of the sales force. This method is
commonly used since it is easy to understand and to recognize the effort
required to serve different categories of customers.
However, this method also has some shortcomings. It assumes that all
accounts in the same category require the same effort. Other differentiating
factors such as cost of servicing, gross margins, etc. are not considered
after the accounts are categorized. It also assumes that sales persons are
equally efficient, which is generally not true. One way to overcome this
shortcoming is to adjust the sales force size, determined in the last step,
for efficiency. The sales force can be classified into different categories
based on their efficiency and the actual number of sales persons required
can then be calculated with this adjusted number.
Incremental Method
The incremental method is the most precise method to calculate the sales
force size. The underlying concept is to compare the marginal profit
contribution with the incremental cost for each sales person. The optimal
sales force size as per the incremental method is when the marginal profit
becomes equal to the marginal cost and the total profit is maximized.

58
Sales and Distribution Management

Beyond the optimal sales force size, the profit reduces on addition of an
extra sales person. Therefore, sales people need to be added as long as the
incremental profit exceeds the incremental cost of adding sales people.
The main shortcoming associated with this approach is that it is difficult
to estimate the additional profit generated by the addition of one
salesperson and is therefore difficult to develop.
Thus sales force needs to be properly organized, motivated and
compensated in order to have the right size to do the workload, alignment
to cover all needs, and keeping them happy and selling. At the end of the
day, they are the ones who get the customer to give up their money for the
company’s product or service.
Check your progress - 1
a. In ___________ method, each member of the corporate sales team is
assumed to possess the same level of productivity.
b. The ___________ method is also known as the buildup method.

2.3 SALES ORGANISATION BASED ON

The sales organization is an organizational unit within logistics that


structures the company according to its sales requirements.
Use
Modern sales organisation is not only profit-oriented but also customer-
oriented.

1. Analysis of markets thoroughly, including product and market


research.
2. Adoption of a selfishly sound but defensible sales policy.
3. Accurate market or sales forecasting and planning the sales
campaign, based on relevant data.
4. Deciding about prices and terms of sales and pricing policies.
5. Packaging for the consumer wants a container which will satisfy
his desire for attractive appearance, keeping qualities, utility, and
correct price and many other factors.
6. Branding the product.

59
Sales and Distribution Management

7. Deciding the channels of distribution.


8. Selection, training and control of salesman and fixing their
remuneration.
9. Allocation of territory and quota setting.
10. Sales programmers and sales promotion activities.

A sales organization is responsible for the sale and distribution of goods


and services.
It represents the selling unit as a legal entity. It is responsible for product
guarantees and other rights to recourse, for example. Regional subdividing
of the market can also be carried out with the help of sales organizations.
Each business transaction is processed within a sales organization.
The sales organization must be specified in all sales documents. It is
therefore available for all basic functions of SD (such as pricing,
availability, and so on).
Structure
A sales organization can be subdivided into several distribution chains
which determine the responsibility for a distribution channel.
Several divisions can be assigned to a sales organization which is
responsible for the materials or services provided.
A sales area determines which distribution channel can be used to sell the
products from one division in a sales organization.
Integration
Each sales organization is assigned exactly one company code for which
you enter all accounting details of the sales organization.
A distribution chain can be active for several plants and the plants can be
assigned to different company codes. If the sales organization and plant
are assigned to different company codes, an internal billing document is
sent between the company codes before the sales transactions are entered
for accounting purposes.
Types of sales organisations and their structure
The grouping of activities into positions and the charting of relationships
of positions causes the organisation to take on structural form. When sales
department is set up in an organisation it follows one of these general
structures – line, line and staff, functional and committee.
60
Sales and Distribution Management

1. The line sales organisation

 This is the oldest type used in smaller firms and in firms where
there is a small selling force. This limitation restricts them to
narrow product line in limited geographical area.
 All executives have line authority and each subordinate is
responsible only to one higher-up.
 They have fixed responsibilities and sales personnel reports
directly to the chief executive.
 Lines of authority and responsibility are clear and logical, and it is
difficult for individuals to shift or evade responsibilities.
 Not appropriate when there is a large sales staff.

2. The line and staff sales organisation

 Found in large and medium sized firms selling diversified product


lines over a wide geographical area.
 Provides the top sales executive with a group of specialists and
experts in dealer and distributor relations, sales analysis, sales
organisation, sales personnel, sales planning, sales promotion,
sales training, sales service, traffic and warehousing.
 Staff sales executives do not have authorities to issue orders or
directives.
 Staff recommendations are submitted to the top sales executives
and after approval transmit necessary instructions to the line
organisation.
 Gives time to the staff executives time to study problems before
recommendations.

3. Functional Sales organisation

 Based upon the concept that each individual in an organisation,


executive and employee should have as few distinct duties as
possible.
 Sales people receive instructions from several executives but on
different aspects of their work.

61
Sales and Distribution Management

 All specialists have line authority and they have a function


authority.
 There is great improved performance.
 Not feasible for small and medium sized firms.

4. Committee sales organisation

 The executive group plans policy formulation while


implementation of plans and policies is done by individual
executives.
 Many firms have a sales training committee.
 Before policies are made and action is taken, important problems
are deliberated by committee members and are measured against
varied viewpoints.
 Structure of sales organization

2.3.1 geography
An advantage of this form of organization is its simplicity. Each sales
person is assigned a territory over which to have sole responsibility for
sales achievement.
Their close geographical proximity to customers encourages the
development of personal friendships which aids sales effectiveness. Also,
compared with other organizational forms, for example, product or market
specialization, travelling expenses are likely to be lower.
A potential weakness of the geographical structure is that the sales person
is required to sell the full range of the company’s products. They may be
very different technically and sell into a number of diverse markets.
In such a situation it may be unreasonable to expect the sales person to
have the required depth of technical knowledge for each product and be
conversant with the full range of potential applications within each market.
This expertise can only be developed if the sales person is given a more
specialized role.
2.3.2 products and combinations and current trends
One method of specialization is along product lines.
Conditions that are conducive to this form of organization where the
company sells a wide range of technically complex and diverse products

62
Sales and Distribution Management

and key members of the decision-making unit of the buying organisations


are different for each product group.
If the company’s product sell essentially to the same customers problems
of route duplication (and hence higher travel costs) and customer
annoyance can arise.
Inappropriate use of this method can lead to a customer being called upon
by different sales persons representing the same company on the same day.
2.3.3 customer
The problem of the same customer being served by product divisions of
the same supplier, the complexity of buyer behavior which requires not
only input from the sales function but also other functional groups (such
as engineering, finance, logistics and marketing), centralization of
purchasing, and immerse value of some customers have led many
suppliers to rethink how they organize their sales-force.
Companies are increasingly organizing around customers and shifting
resources from product or regional divisions to customer-focused business
units.
Another method of specialization is by the type of market served. Often
industrial selling is defined by the industry type.
Thus, although the range of products sold is essentially the same, it might
be sensible for a computer firm to allocate its sales persons on the basis of
the industry served, example, banking, manufacturing companies and
retailers, given that different industry groups have widely varying needs,
problems and potential applications.
Specialization by market served allows sales people to gain greater
insights into these factors for their particular industry, as well as to monitor
changes and trends within that industry that might affect demand for their
products. The cost of increased customer knowledge is increased travel
expenses compared to geographically determined territories.
Check your progress - 2
a. The _________ organization is an organizational unit within logistics
that structures the company according to its sales requirements.
b. A __________ chain can be active for several plants and the plants can
be assigned to different company codes.

63
Sales and Distribution Management

2.4 SALES TRAINING PROGRAMMES AND


MOTIVATING THE SALES FORCE

Sales training defined


Sales training is the process of improving seller skills, knowledge, and
attributes to drive seller behavioral change and maximize sales success.
Effective sales training should be viewed, designed, and executed as a
change management initiative.
Sales training has reached an inflection point. Typical sales training—
tailor a program, deliver training—is failing to meet the needs of modern
learners and organizations.
Companies are spending billions of dollars a year, yet 85% to 90% of sales
training fails.
The fact is significant amounts of time, money, and effort are wasted on
corporate training every year. Much of it fails to change habits, enhance
skills, or create significant ROI. Think about the training you’ve invested
in over the years. How effective has it truly been?
Here are some statistics on the shocking failure of traditional training:

 70% of the information B2B sales reps learn is forgotten within a


week of training (Gartner)
 90% of new skills learned from corporate training are lost within a
year (Human Performance)
 An estimated 90% of training expenditures don't result in improved
performance (International Journal of Training and Development)
 Only 21% to 25% of executives report their company's training
effectively prepares employees to drive business performance
(McKinsey)
 33% of leaders say their organization's learning strategy and
business goals are aligned to a high extent, and only 16% are
aligned to a very high extent (CTDO Magazine)
 Only 38% of managers believe training programs meet their
learners' needs (ATD)

64
Sales and Distribution Management

Yet, at the same time, it turns out that Top Performers are
significantly more likely to receive effective sales training.

Sales Training Effectiveness

Source: RAIN Group Center for Sales Research,


The Top-Performing Sales Manager.

Source: RAIN Group Center for Sales Research,


The Top-Performing Seller.

 71% of Top-Performing Sellers report receiving extremely or very


effective sales training

65
Sales and Distribution Management

 60% of Top-Performing Sales Managers report receiving


extremely or very effective sales training
Which begs the question: How can you ensure your sales team gets
effective sales training?

For today’s sales training to be effective, we’ve found it needs to go


beyond traditional training. It must be:

1. Crafted to drive business results (this includes first defining the


specific results you want to drive)
2. Built for adult learners and delivered in specific ways so it’s
retained and applied
3. Designed so it supports sellers with ongoing coaching and enables
organizations to realize results over the long-term

Today’s sales training participants are dominated by Millennials and Gen


Xers, with plenty of Gen Zers and Boomers in the mix. But, across
generations, what we’re seeing is that modern learners don’t want to sit
for hours being lectured to—whether the training is onsite or virtual.
Further, sellers and sales managers have a low tolerance for training that’s
not directly applicable to their needs, which means they’ll disengage when
training misses the mark.
Instead, modern learners want training that is:

 Immediately accessible and mobile


 An experience, not a presentation
 Collaborative between the learners, not just experts
 Personalized to their situation and circumstances
 Easily applied to their specific role

For today’s sales training to be effective, it must meet sellers and sales
managers where they are.
Your guide to sales training
1. What are the different types of sales training?
2. What are the benefits of sales training?
3. Measures of sales training success
4. Who are sales training for?

66
Sales and Distribution Management

5. What are the skills you can learn with sales training?
6. Best sales training topics to build skills
7. How to build an effective sales training program?
8. Sales training ideas to keep your training fresh
9. Sales training techniques for new trainers.
10 Why does sales training fail?
11. What to look for when hiring a sales trainer?
The most effective sales training focuses on true behavior change. Skills
need to be learned, absorbed, and applied on the job. When done right,
training can help organizations achieve their growth goals, such as
increasing win rates, growing strategic accounts, improving sales cycle
time, building pipeline, increasing average deal size, and more.
The global market for sales training is approximately $4.6 billion, yet
most sales training fails to deliver lasting results.
This is because most companies don't define and approach sales training
properly. Often, training is treated as a 1- or 2-day program with no follow-
up. Sellers are left to their own devices, expected to retain the information
from training and recognize where to apply it.
When you consider that 70% of B2B sales reps forget the information they
learn within a week of training, it's no wonder most sales training doesn't
produce the desired results over the long term.
To deliver effective sales training, redefine what sales training is. Focus
on changing sellers' behavior to drive sales results and support the effort
as an ongoing change management initiative.
What Are the Different Types of Sales Training?

67
Sales and Distribution Management

Fig: 2.4 Types of sales training

68
Sales and Distribution Management

1. Sales Training Programs


Training programs are designed to develop the selling and sales
management competencies of sellers and sales managers. The most
effective sales training programs are more than one-hit-wonders: they
provide the ongoing support teams need to create lasting behavior change.
The best programs also align with the organization’s key business metrics
to ensure goals are met and measurable improvement is achieved.
Sales training programs are available in a variety of areas ranging from
consultative selling and prospecting to negotiating, strategic and key
account management, sales management, and personal productivity.
2. Sales Coaching
One of the best ways to make sure training sticks and is applied in actual
selling situations is through sales coaching. Coaching can help sellers
improve skills, win specific sales opportunities, grow accounts, achieve
sales goals, and accomplish action plans.
But too often this critical component is skipped, frequently after a
significant investment in training has already been made. Everyone—
individual sellers, entire sales teams, and organizations—pays the price.
As our research shows, sellers are 63% more likely to be a Top
Performer when they have:

 An effective sales manager


 Regular ongoing sales coaching
 Effective sales training

Take any one of these away and the likelihood of achieving top sales
performance declines.
Meanwhile, an effective sales coaching process helps individual sellers
and entire sales teams to build skills, reinforces what they learn, and holds
them accountable to achieve goals and plans.
3. Sales Consulting
Your leadership team likely has plenty of ideas about what could be done
to improve sales. But with competing priorities around people, structure,
process, compensation, management, and training, it’s difficult to know
where to begin and what to prioritize.

69
Sales and Distribution Management

An experienced sales consulting partner can offer expert insight and


analysis to help organizations identify opportunities for the greatest
revenue growth potential. Moreover, they can provide a roadmap with
specific next steps and a complete sequence of actions to ensure
organizations achieve their potential.
4. Licensing
A license that gives your entire sales team access to an innovative and
comprehensive sales curriculum can help you get the greatest results from
your training investment.
For example, at RAIN Group, we offer clients the opportunity to embed
our complete educational system into their sales organization. The RAIN
Group Total Access license gives your team access to our complete suite
of sales training programs, online learning, performance support tools,
learning journeys, and other resources.
5. Train the Trainer
One of the most important factors for a successful training initiative
depends on the quality of facilitation. Success hinges on the trainer’s
ability not only to fully engage participants, but also gain their confidence
and be seen as an expert guide.
A train the trainer process allows organizations to have their own
facilitators trained to deliver sales training programs. RAIN Group’s Train
the Trainer process, for example, can certify an organization’s trainers to
implement our sales methodology for their sales team. This gives the
organization more flexibility and control over program delivery, while in-
house trainers receive the coaching, support, and certification to deliver
sales training that drives change and achieves goals.
6. Reinforcement
For all types of sales training, bespoke reinforcement is necessary to
ensure sellers retain and apply new skills.
Reinforcement can be delivered in a variety of ways, such as:

 Assignments
 Coaching
 Gamification

70
Sales and Distribution Management

 Micro-learning
 AI tools

Whatever the method, reinforcement should be designed to create new


habits and help sellers integrate skills into their selling processes. In
addition, for reinforcement to be effective, results should be rigorously
tracked. Ongoing monitoring and follow-up gives structure to training
reinforcement and allows you to benchmark your team's progress toward
achieving goals.
The impact of reinforcement can't be understated—77% of learning is
forgotten within 6 days if not reinforced.
What Are the Benefits of Sales Training?
When done right, sales training changes sellers’ behavior and improves
business results.
In fact, our research shows highly effective sales training is correlated with
three key metrics: win rate, sales goal attainment, and premium pricing:

 Respondents with extremely/very effective sales training report


average win rates that are 7 to 11 points higher than those with less
effective training
 76% of respondents with extremely effective sales training met
their sales goal compared to only 31% of those with the least
effective training
 91% of respondents with extremely effective sales training
achieved premium pricing compared to just 43% of those with the
least
 effective training

71
Sales and Distribution Management

Training Effectiveness Training Effectiveness


& Sales Goal Status & Premium Pricing

The best sales training can result in both strategic and financial benefits
for the organization:

 Increase win rate on proposed business


 Increase average size of sale
 Achieve premium pricing
 Improve sales margins
 Grow existing accounts
 Win more business with new accounts
 Build a culture of sales achievement
 Increase effectiveness of sales leadership and management
 And so on

But to achieve these outcomes, organizations must approach training with


their business goals in mind, and work with their training provider or
internal training and enablement teams to determine how best to achieve
those goals.
The actual outcomes should be specific to the organization, but below are
examples of some common benefits organizations can achieve from
effective sales training initiatives. Use a framework like this one to reflect
on the current state of your sales training and how can you achieve a new
reality with an effective sales training initiative.

72
Sales and Distribution Management

Effective Sales Training Benefits

What’s the current state of your organization’s sales training?

Current State east New Reality

Current training initiatives Effective training is delivered by a


fail to change the status training partner, driving change and
quo and achieve results delivering results.

Effective sales training minimizes time of


out of field by using an approach that
Sellers spend too much combines in-person and virtual instructor-
time out of the field at an led training, along with additional
excessive travel cost to modalities.
attend ineffective training

A competency-based approach to training


Training doesn’t develop includes certification and is easily tailored
your sellers’ skillset. to your organization’s and sellers’ needs.

Training is boring and Training is engaging and easily tailored to


generic. be directly relevant to selling situations.

Sales conversation training raises the bar


Sellers struggle with sales on sales conversation success. Sellers can
conversations across the inspire buyers, tell stories, and sell ideas
board and struggle to in a compelling way. Across the board,
provide maximum value sellers build, communicate, and sell value
to buyers. consistently.

Effective sales management and coaching


Sales managers do not training helps managers maximize their
inspire top performance sales team’s motivation, focus, and
from their sellers. results. Managers regularly coach sellers

73
Sales and Distribution Management

to drive significant wins and consistent


account growth.

Training consists of a Effective sales training ensures a durable


jumbled mix of methods method is embedded in the organization
or confusing programs. and results are achieved.

These are just a few examples. Ask yourself, "What’s the current state of
our organization’s sales training?" Then, consider what the new reality
would look like with an effective sales training initiative. An experienced
sales consultant is a valuable resource here—they can help you do this
analysis and develop the blueprint that will get you to your desired results.
Measures of Sales Training Success
Your sales training provider should work with you to identify what your
sales training goals are and how these goals will be achieved, as well as
work with you to determine how success will be measured. If your current
provider isn’t doing this, it may be time to search for a new one.
Key performance indicators (KPIs), identified at the outset of a training
initiative, and are used as measures of success. Common examples of
KPIs, which will vary based on your objectives, may include any of the
following:
Lead Measures

1. Weighted average pipeline size


2. Pipeline growth
3. Sales activity (e.g., outbound activity, meetings)
4. Sales productivity (e.g., time spent selling)
5. Sales method and process adoption
6. Deal reviews (Win Labs) conducted
7. Sales skill progress/certification
8. Satisfaction with training
9. Seller engagement
10. Seller action plan clarity

74
Sales and Distribution Management

Lag Measures
1. Win rate on proposed sales
2. Average sale/order value
3. Time to productivity
4. Percent attainment of sales goal
5. Discounting/profitability of sales
6. Average account revenue
7. Average revenue per seller
8. Repeat business rate/churn
9. Length of sales cycle
10. Sales force turnover rate
Discover additional sales metrics that may be relevant for your business in
our Essential List of Sales Metrics.
Who Is Sales Training For?
Sales training isn’t just for sellers. Where capability gaps exist, skills must
be developed for all sales professionals and sales managers in an
organization.
1. Sales Professionals
With titles such as sales rep, inside sales, field sales, business development
rep (BDR), account manager, account or sales executive, customer service
rep (CSR), seller-doer, professional or business service provider, and
more—these sales professionals are responsible for some or all aspects of
working with buyers in the sales cycle.
This means, depending on the role, they need to develop and maintain a
high level of capabilities in a variety of areas. This could include sales
conversations, advanced consultative selling, winning major sales,
strategic and key account management, sales prospecting, sales
negotiating, virtual selling, and personal productivity. Learn more. >>
2. Sales Managers
Managing a sales team is one of the more challenging, and more important,
roles in any company. Your sales managers will make or break your sales
team.
The manager’s impact is especially strong among newer sellers.
According to our research, newer sellers are 240% more likely to be a Top

75
Sales and Distribution Management

Performer when they have an effective manager. And those sales managers
are 46% more likely to be effective when they themselves have received
effective training.

240% 71% 46%


Sellers with less than Top Performers are Top-Performing Sales
5 years' experience 71% more likely to Managers are 46%
are 240% more likely have a manager who more likely to receive
to be a Top- excels at motivating extremely/very
Performing Seller for high productivity effective training.
when they have an and performance.
effective sales
manager.
Source: The Top-Performing Sales Manager Benchmark Report,
RAIN Group Center for Sales Research
Too many managers, however, don’t get the support they need to be
successful in the role. This frequently includes high performing sellers
who find themselves promoted to manager and are expected to
immediately excel at managing in the same way they did selling. Yet, the
two roles require different skill sets.
Sales managers must excel in a variety of areas, such as knowing how to
lead successful team and one-on-one meetings, coaching sellers to build
skills and motivating them to consistently achieve sales targets,
forecasting, and interviewing and hiring sellers who will become top
performers.
Providing an effective sales management training program gives sales
leaders the knowledge, skills, and tools they need to motivate sellers, hold
them accountable, and coach them to top performance.
What Are the Skills You Can Learn with Sales Training?
Sales training can be focused on specific selling topics or skills
development. Sales training programs are available that cover the
spectrum of the sales process, ranging from finding new clients and
winning sales opportunities to growing accounts and managing sellers.
Sales training topics that are core to driving the greatest success and
improvements in sales competencies include:
76
Sales and Distribution Management

1. The Power of Consultative Selling


Consultative selling is a sales approach centered around understanding
buyer needs and positioning offers as solutions to problems. Though the
utility of consultative selling has changed over time, it's fundamental to
uncovering needs, building relationships, and crafting solutions. Modern
consultative selling takes this idea a step further by inspiring buyers with
new ideas and changing their thinking and agendas in critical areas. This
method of advanced consultative selling is known as insight selling.
2. Filling the Pipeline with Qualified Buyers
Sales prospecting training gives sellers a roadmap to improve their
outreach and connect with buyers early and often so they maintain an
active pipeline of buyers. Training includes topics such as how to create
prospecting campaigns, craft offers, breakthrough to buyers, and set
meetings.
3. The Keys of Sales Negotiation
Negotiation is critical for sellers to keep margins, customer profitability,
and satisfaction high. Training aims to coach sellers to focus on value over
price and create value on both sides. It also addresses common negotiation
tactics used by buyers and how to overcome them.
4. Winning More Opportunities
Strong selling isn’t done in a vacuum—it’s the result of a comprehensive
sales strategy. Opportunity management training helps teams establish a
systematic and repeatable process for creating winning strategies. It also
encourages sales teams to approach each sale from a customer-centric
point of view.
5. Growing Strategic and Key Accounts
Selling to existing accounts is one of the biggest untapped opportunities
for revenue growth. Strategic and key account management training helps
sellers systematically review and grow their most important accounts.
6. Succeeding with Virtual Selling
With the unprecedented level of virtual interaction happening in the world
today, sellers face more challenges now than ever before. Modern sales
teams need to be prepared for both in-person and virtual selling to

77
Sales and Distribution Management

succeed. Virtual selling training helps sellers adapt and thrive in this new
sales environment.
7. Improved Sales Productivity and Accountability
Mismanaged time doesn’t just derail focus and productivity—it affects
your sales results. Keeping your sellers motivated is essential to seeing
consistent success. Most sales training misses this key element: a sales-
focused productivity program that empowers sellers to get more done in
the time they have.
8. Sales Management
The skills that make a successful seller are very different than those that
make a successful sales manager. In fact, managing a sales team is one of
the most difficult jobs in any organization. Sales management
training helps managers unlock their team’s potential and drive results.
9. Sales Coaching
There is perhaps no greater leverage point—and perhaps no greater
typically untapped leverage point—to increase sales performance than
sales coaching. Yet, 66% of organizations don’t believe their managers
have the skills needed to manage and coach their sellers. Sales coaching
training gives sales managers the tools they need to motivate their sellers
to become more proactive and successful.
Best Sales Training Topics to Build Skills
Which topics should your sales training cover? It depends on the team’s
current capabilities and areas that need to be strengthened.
Below are just a few of the top areas where sellers often fall short.
Consider adding one or more these topics to your sales training initiatives.
1. Leading a Thorough Needs Discovery
You might think your sellers have this core capability covered, but think
again. Only 26% of buyers say sellers lead a thorough needs discovery.
Training on leading an effective needs discovery process helps sellers craft
solutions that deliver value to the buyer. (See the power of consultative
selling above.)
2. Overcoming Objections
How sellers respond to buyer objections will determine the course of the
sale. Consultative sales training helps sellers practice appropriate

78
Sales and Distribution Management

responses to the four types of objections. When they’re prepared, sellers


are more likely to overcome objections and move the sale forward to a
successful outcome.
3. Qualifying the Sale
Sellers frequently have to make tough decisions about which sales
opportunities deserve their time and attention and which they need to move
on from. Having a process to rapidly qualify a sale allows sellers to
separate the opportunities that warrant further pursuit from those that
don’t.
4. Winning Sales Opportunities
The #1 skill of Top-Performing Sales Organizations is the ability to drive
and win sales opportunities. Training that teaches sellers to use a
repeatable process—with the help of a sales opportunity planner—equips
sellers to generate ideas that win sales.
5. Making a Powerful Impact and ROI Case
Sellers can close more sales when they’re able to quantify the impact of
their solution and make a strong business case to buyers. This is an area
where most sales teams can improve.
6. Growing Strategic and Key Accounts
Top Performers in Strategic Account Management are 80% more likely to
have a mature process for strategic account management, including strong
processes to build account plans, identify value, and hold teams
accountable.
7. Dealing with Common Buyer Negotiation Tactics
Sellers need to know how to respond to common negotiation tactics buyers
use. Training can help sellers recognize the different types of buyer tactics
and practice an effective response.
8. Maximizing Motivation and Productivity
Motivation and personal effectiveness are hallmarks of top performers.
Indeed, our research found Top-Performing Sellers are more likely to be
highly rated across nine major productivity areas compared to other
sellers. Productivity training helps sellers and sales managers use their
time effectively and maximize motivation so they achieve the best results.

79
Sales and Distribution Management

9. Building Pipeline with Sales Prospecting


The best sales prospectors set 2.7x more meetings, meet their sales goals,
and achieve higher win rates. Training here gives sellers the tools,
techniques, and repeatable processes that allow them to build strong
pipelines.
10. Train the Trainer: A Combined Sales Training Approach
One way to improve the effectiveness of sales training for organizations
with internal learning and development resources is to train and certify
your in-house sales trainers and facilitators to deliver a world-class sales
methodology.
For example, in RAIN Group’s Train the Trainer process, trainers not only
learn a world-class sales methodology, but also earn the certification to
deliver that training to the organization’s teams. Certification ensures
trainers are proficient in training outcomes, preparation, delivery
approach, and management.
Train the Trainer process includes four key elements:
1. Setup and Kickoff: Trainers are provided self-study lessons, video
walkthroughs, best practices, run sheets, facilitator notes, and other
resources to set the table for success.
2. Study and Prepare: Trainers study learning modules, previous
training deliveries, and other resources, while working with a master
facilitator to prepare for their own delivery.
3. Observe and Certify: Trainers are certified after successfully
delivering an internal session which is review, scored, and debriefed by
a master facilitator.
4. Support and Elevate: Trainers receive coaching on facilitation, which
includes pre- and post- review sessions and an ongoing partnership to
improve quality over time.

80
Sales and Distribution Management

How to Build an Effective Sales Training Program


The best sales training is built on three pillars: Craft, Deliver, and
Enable. We call this the Execution Assurance Framework.
Execution Assurance Framework
Craft
During the craft phase, think first about the business results and metrics
you’re seeking to drive and then develop a change strategy to achieve
them. Define and agree on the measures by which the success of the
initiative will be assessed. Next, develop a communication plan that
clearly articulates expectations for all parties. Many transformation
initiatives fail because the communication of expectations was not clear
and not frequently shared.
Prior to delivery, the training must be perfectly aligned with the
organization’s world—your customers and selling environment must be
deeply understood. Barriers to achieving top performance should be
identified.

81
Sales and Distribution Management

Finally, the training curriculum and programs should then be specifically


tailored to drive the desired change.
When it comes to crafting sales training, consider the following questions,
among others:

 Which sales metrics are more likely to drive success?


 What are your organizational goals?
 What sales roles will be undergoing training?
 What results are you looking to achieve with training?
 What sales training topics are most relevant for your organization?
 Who will carry out the training?
 How will training be reinforced?
 How will you monitor progress and results?
 What is the desired timeline for training?
 How will leadership be involved in training and reinforcement?
 Are your sales managers willing and able to coach sellers?
 What are your expectations for sellers undergoing training?
 How will you keep training interactive and engaging?
 How will the training tie into existing selling activities?
 How is the training relevant for your industry?

Deliver
Sales training delivery should be:

 Modular: Focused, standalone units (modules) of instruction that


can be organized into curricula specific to learners’ and the
organization’s needs
 Multi-modal: Available in a variety of modalities, such as
instructor-led (onsite and virtual), train the trainer, and licensing,
and formats, such as micro-learning, video, and so on
 Purpose-built for the modern learner: Practical, interactive, and
impactful

In other words, sellers need training they can put to use immediately to
achieve results. This means the training needs to ensure the development,
adoption, and implementation of new skills.

82
Sales and Distribution Management

For example, pre-work in advance of training sessions may include some


combination of micro-learning, short videos, and interactive exercises.
This would be followed by classroom sessions delivered virtually or in
person, and which focus on practice, application, and coaching feedback.
Don’t think lectures; think hands-on learning.
To learn more about our approach to training, watch the video below.
Enable
A leader-led transformation—change management—is enabled through
manager training and a coach-the-coach process.
Sales leaders are equipped with the skills and tools to motivate, focus, and
ensure their sellers implement the new approach. A regular, ongoing
rhythm of action-oriented coaching allows sales managers to provide
direct feedback to sellers, reinforces the skills and knowledge learned
during training, and holds sellers accountable to execute at high levels.
Reinforcement such as coaching, spaced repetition, ongoing access to a
training library and tools, emailed scenarios to reinforce content or skills,
and embedded technology combine to boost sales training effectiveness.

Sales teams build confidence week by week. Progress is monitored with


ongoing measurement and reporting on metrics.
The result of this approach is that the training gets adopted, change
happens, and business results get delivered—execution is assured.
6 Sales Training Ideas to Keep Your Training Fresh
Move your sellers out of their comfort zone and into the learning zone by
offering impactful training they’ll actually retain and use on the job.

83
Sales and Distribution Management

Here’s a sampling of ideas you can incorporate into your training to keep
it fresh and impactful.
1. Assess Sales Skills in a Self-Assessment
Allow sellers to take a sales skills self-assessment—it gives them the
opportunity to honestly assess their selling capabilities. Which skills can
be strengthened? Which are important to the seller’s success? To be
effective, be sure to assess on capabilities key to being a top-performing
seller.
2. Build a Goal and Action Plan
Keep sellers on track and focused on the activities that'll allow them to
achieve their goals by encouraging them to create their own goal and
action plans. Our five-step goal-setting worksheet can be used by sellers
to build their plan during the training session and as a point of follow up
with subsequent coaching and one-on-one meetings.
3. Use a Sales Conversation Planner
Have sellers use a sales conversation planner to prepare for important
buyer conversations. A completed conversation planner prepares sellers to
get the best possible outcomes from their sales conversations with buyers.
4. Practice a Proposal Presentation
Sellers record themselves doing a practice delivery of a proposal and then
get feedback from colleagues or a coach. Sellers gain perspective on the
strengths and weaknesses of the presentation. They can also test out
different openings, closings, or any presentation component before trying
it in front of actual buyers.
5. Practice a Simulated Sales Negotiation
An online simulated sales negotiation, like the one RAIN Group offers,
gives sellers the opportunity to practice their negotiation skills based on
real negotiation scenarios. This prepares sellers to negotiate and interact
with actual buyers so they achieve the best outcomes.
6. Complete a Prospecting Meeting Calculator
Give sellers a prospecting meeting calculator to determine how many new
meetings they need to set on average, and each week, to meet their revenue
goals. Walk through examples specific to your business so sellers can see

84
Sales and Distribution Management

how improving their pipeline and conversion rates can have a bit impact
on results.
Sales Training Techniques for New Trainers
The sales training techniques you incorporate into training can help sellers
(and their managers) absorb new information and develop skills.
Here are just a few examples.

 Deliver focused blocks of training modules: Too much training


is theoretical, meandering, and impractical. Sellers have a low
tolerance for irrelevant, unfocused training. Instead, deliver
modular blocks of learning, focused on a specific area, and tailored
to your team’s selling situations.
 Create customized content: Avoid generic training content.
Instead, customize case studies, examples, tools, playbooks, and
job aids to make the training directly applicable to the sellers’
industry, company, offerings, and selling situations.
 Create engaging assignments: Role playing scenarios,
demonstrations, practice proposal presentations—assignments
such as these and others can drive post-training reinforcement, as
well as provide opportunities for coaching.
 Use accountability partners: Have sellers pair up with a partner
with whom they’ll share their priorities and do progress check-ins
on a weekly basis. Research has shown that being accountable to
someone other than ourselves increases the chances of success.

Learn more about these and other sales training techniques.


Why Does Sales Training Fail?
Sales training is a multibillion-dollar business. In the U.S. alone, it is
estimated to be more than $5 billion (according to Dave Stein in Sales
Training: The 120-Day Curse from ES Research Group). Yet, also
according to Stein, between 85% and 90% of sales training has no lasting
impact after 120 days. If we do the math, that amounts to somewhere north
of $4.25 billion of unproductive training.

85
Sales and Distribution Management

When sales training is ineffective—and much of it is, as highlighted


earlier—you’re not going to see your desired results because ineffective
training won’t drive behavior change in sellers.
Trainers and facilitators may share knowledge, but it means little if your
sellers don't retain what they’ve learned and apply those skills in actual
selling situations.
If sales training lacks accountability, isn’t tailored for the cohort, or isn’t
retained, it won’t be effective. Fortunately, each of these issues can be
resolved.
1. Lack of accountability
If sellers aren’t held accountable to follow through on their goals and
action plans, it’s less likely to happen. Instead, enable and empower sales
managers to provide the coaching and support required to keep their teams
accountable.
Without leadership buy-in, sellers revert to old habits and are less likely to
integrate learning into their ongoing selling activities.
Driving accountability also means adopting an evaluation process.
Implemented in the right way, sales performance evaluation analytics can
be the source of significant competitive advantage. In fact, 67% more best-
in-class companies have sales analytics than laggards, according to
Aberdeen Group's Reaching Sales Quotas More Consistently.
Evaluation also allows for continual improvement well beyond training.
When organizations monitor progress, they give themselves the ability to
measure the effects of sales training, remove ineffective strategies, and roll
out better ones. Plus, the insights gained from evaluation improve any
future training, decreasing learning curves and even improving your seller
onboarding process.
2. Lack of tailored training
Adult learners have little patience for generic training that’s not tailored to
their market, industry, customers, solutions, role, and specific selling
situations. Instead, spend the time and resources to customize training so
it’s relevant to sellers and helps them address selling challenges. Irrelevant
training won’t get adopted and won’t generate results.

86
Sales and Distribution Management

3. Lack of retention
Go beyond knowledge transfer. Instead, show sellers how to apply what
they’re learning to their actual selling situations. Application exercises, a
regular ongoing schedule of coaching, repetition of training content...these
are all ways to boost retention and ensure training is actually applied.
What to Look for When Hiring a Sales Trainer
By this point, you likely realize the heavy lift that sales leaders, learning
and development, and sales enablement professionals face as they embark
on selecting a sales trainer or sales training provider to deliver effective
sales training that gets results.
Here are 13 factors to consider and evaluate when you’re hiring a sales
training provider.
1. Transformational Experience
The best and most effective sales training is approached as a change
management initiative. Training is crafted, delivered, and designed to
enable sellers and the organization to get results. For true behavior change
to take hold, sellers need to go through a transformational experience. This
means the training provider must understand how adults learn, how people
work (and work together), and how behaviors change.
2. Coaching
Coaching and support from first-line sales managers is critical for driving
behavioral change. When applying new skills, sellers need to know exactly
what to do, have support for when they're not in their comfort zone, need
feedback to calibrate their behaviors, and need to be held accountable for
taking action and being productive.
It’s worth noting that sales coaching and sales management differ.
Coaching is a proactive process meant to reinforce training, and not every
sales leader or manager has that experience. In these cases, specialized
sales coaching training can enable managers to take ownership of the skill
development of their teams.
Does the sales training provider offer a coaching process that enables sales
managers to support their sales teams?

87
Sales and Distribution Management

3. Leadership Support
Conversely, sellers also need support on the day-to-day side of executing
ideas learned in training. Leadership should be committed to working with
the training provider and the sales training program to help execute
training, as well as monitor its application.
You need a work culture that drives and supports top sales performance,
and leadership that prioritizes sales success.
Are you confident the sales training provider can garner buy-in and
support from your leadership?
4. Motivation
Without motivation, you won't change sellers' behaviors. It’s why
motivation is one of the key coaching roles played by sales managers. In
fact, our research finds that Top-Performing Sales Managers are 71% more
likely to be effective at motivating sellers for high productivity and
performance. Yes, sales motivation goes beyond compensation.
Does the training provider explicitly build this critical success factor into
their training?
5. Value
When sellers create value and are valuable to buyers, they win. All sales
training must connect to the value you can bring forth to your buyers. For
the most successful sales training, and to achieve—and maintain—top
performance, value must be the core focus.
How will this training help your sellers drive more customer value?
6. Proven Results and Case Studies
Sales training companies have a mixed record of implementation and
client service.
Does the training provider have demonstrated experience and results in
changing seller behavior and making training stick long term?
7. Industry Expertise
Sales trainers lacking experience in the sellers’ industry lose credibility
with learners. Without industry experience, trainers will be hard pressed
to keep sellers engaged and involved with the training. Make sure the
training provider understands your industry deeply—it's challenges,
business model, current issues and changes, and selling environment.

88
Sales and Distribution Management

What experience does the sales training provider have in your industry?
8. Research-Based Training
By its nature, sales isn’t static—to be successful sellers must be responsive
to their buyers’ current environment and adapt to market changes as
needed. It’s not enough for trainers to simply roll out a dated playbook to
deliver sales training content.
Sales training providers that conduct their own research can share relevant
insights and strategies for succeeding with buyers based on current, and
anticipated, conditions.
What research backs the training providers’ sales methods?
9. Variety of Delivery Methods
According to research from Gartner, sellers forget 70% of the information
they learn within a week of training; 87% forget it within a month. But
when sellers are introduced to information over time using multimedia,
80% of the information is retained and learning improves.
Does your provider deliver training exclusively through one channel? For
example, in-person classroom sessions alone? If so, sellers are less likely
to retain what they learn. Look for a provider that delivers multi-modal
training to boost retention and application.
Typical training modalities include:

 Instructor-led training (onsite and virtual)


 E-learning (online, asynchronous)
 Mobile and email
 Video and micro learning
 Simulations
 Gamification
 Coaching

10. Breadth and Flexibility of Offerings


Sellers have a variety of skill development needs based on their roles, gaps
in existing capabilities, and the organization’s needs.
11. Customized Training
It’s no secret that sales training that’s tailored to an organization’s
industry, market, offerings, and selling situations will be more than

89
Sales and Distribution Management

engaging to sellers. When knowledge and insights are directly relevant to


their real-life selling experiences, sellers will be more likely to retain and
use what they learn. Customized examples, templates, planners, and so on
will prove useful in the course of their work. Skills learned will be adopted
and used because they actually help sellers get results.
12. Sales Enablement Technology
Does the training provider offer a robust sales enablement platform that’s:

 Easy to use
 Optimized for sellers
 Provides easy-to-access resources for sellers (e.g., tools, templates,
planners, checklists)
 Offers practice and reinforcement
 Reporting

13. Global Capabilities


Sales organizations span the globe. Is the training provider experienced
and equipped to meet the challenges of crafting, delivering, and enabling
sales training across the globe with attention to language, culture, and
more?
Sales Training That Drives Results
Are you ready to meet your sellers and sales managers where they are?
Ready to provide your sales team with effective sales training that boosts
performance?
Then go beyond traditional sales training. Instead, provide training that's
crafted to drive business results, built so it's retained and applied, and
designed to support sellers and enable organizations to realize long-term
results.
Motivating the sales force
Every no brings me closer to a yes. --Mark Cuban; Self-made billionaire,
Mark Cuban is known for telling it how it is. One of his most famous
motivational sales quotes, “Every no brings me closer to a yes.” Rings true
to anyone in sales. But let’s face it. Sales reps hear NO more often than
not and sometimes it’s hard to stay motivated. So when reps aren’t
motivated, several options arise and among them are: leaving their job or

90
Sales and Distribution Management

getting asked to leave. Leading us to one of the most difficult tasks sales
managers and sales executives have to face, employee retention. The
average sales rep turnover is 34% according to Trish and Matt Bertuzzi of
The Bridge Group, who conducted a survey of 342 software as a service
(SaaS) companies. Another alarming statistic is that one in ten companies
have sales rep turnover rates above 55%. These numbers are troubling not
only to sales managers but also to the entire company, since it costs a lot
to replace employees. Statistics on the cost of employee turnover greatly
vary. Add in the cost of missed sales and this ends up being even higher.
These numbers demand for a better sales management processes.
A Carrot Isn’t Good Enough: How to Motivate Your Sales Team
The heart of the problem is motivation. If teams stay motivated during
good and bad times, sales have a way of balancing themselves out. So in
an effort to motivate employees, managers devise incentive programs like
trips, gift cards, and cash rewards. Of course the opposite may also happen,
like imposing consequences such as docked pay or being given a smaller
sales area for not meeting quotas.
But there’s a problem with these traditional sales motivation strategies:
they don’t work.
The answer to the question ‘how to motivate people’ lies in training sales
leadership to understand the social science behind motivation. Motivation
strategies tied to external rewards or penalties are not the answer for
forward-thinking businesses. “Traditional management is fine if you want
compliance,” explains business analyst and best-selling author, Dan Pink.
“Twentieth century motivators do work but only in a narrow band of
circumstances.” The “narrow band of circumstances” Pink refers to are
basic straightforward tasks that require little flexibility, critical thinking,
or problem solving abilities. Unfortunately, most sales situations don’t fall
into the narrow band; today’s sales situations require being able to apply
critical thinking, business and sales acumen, and product knowledge to a
wide range of situations. Luckily, these are skills that can be taught.
Twenty-first century sales require twenty-first century skills and
motivation. However, businesses still try to motivate with extrinsic
rewards (money, prizes, cash) when the focus should be on intrinsic

91
Sales and Distribution Management

rewards. Pink points to numerous studies over the past 40 years which
show that rewards tied to behavior, or contingent motivators, actually
decrease performance.
Compensation Plans Matter
Before further explaining intrinsic rewards and how to motivate your team,
let’s make it clear that compensation plans matter. And they matter a lot.
Pink advocates paying employees enough so that they don’t worry about
money because ultimately, what will help your team stay motivated isn’t
the carrot. It comes from within.
When people are allowed to focus on tasks in a way that matters to them,
the outcomes are greater than within the traditional reward system. Pink
explains what social science says regarding how to motivate people:
intrinsic motivators.
Autonomy. Mastery. Purpose.
Human beings have an innate inner drive to be autonomous, self-
determined, and connected to one another. And when that drive is
liberated, people achieve more and live richer lives. -- Daniel Pink
Pink asserts businesses have largely ignored the past 40 years of social
science research on how to motivate people. Learning the value of intrinsic
motivators “is one of the most robust findings of social science and also
one of the most ignored,” emphasizes Pink. “The solution is not to do more
of the wrong things...to entice with a sweeter carrot or threaten with a
sharper stick.”
The question of how to motivate people—especially how to motivate
salespeople—has long been a puzzle. The way to motivate people,
explains Pink is to use intrinsic motivation. Intrinsic motivation is not just
a new buzzword. Pink cites study after study to prove people need more to
be motivated than simple rewards. The three key elements advocated by
Pink are autonomy, mastery, and purpose. Pink explains these three traits
are the new principles of motivation.
Autonomy
When businesses give their employees more flexibility to set their own
priorities, schedules, goals, and work habits, teams feel a greater sense of
ownership and therefore motivation. Examples of autonomy in the

92
Sales and Distribution Management

workplace include the ability to telecommute, the freedom for sales reps
to set their own hours as long as the work gets done, or offering unlimited
vacation days as long as quotas are met.
While autonomy over schedule may be more difficult in a call centre or
customer service setting where hours need to be covered, there are other
areas where autonomy can be integrated. Allowing sales or customer
service reps to set their own goals and choose their own metrics are
examples of intrinsic sales motivation techniques.
Mastery
The second tenet of sales motivation Pink advocates. People don’t want to
be robots. They want to feel achievement. They want to succeed.
Oftentimes, however, they don’t know how. It’s not that companies don’t
spend lavish amounts on training their salespeople in sales training
seminars, explains Jason Jordan in his book Cracking the Sales
Management Code.
The problem of mastery comes when sales managers are not equipped with
the skills to help their sales teams set and meet the right goals. ”With
extremely rare exception,” teaches Jordan, “the best sales managers we’ve
encountered are unconsciously competent scientists. They hold formal
meetings with formal agendas on formal schedules. They set rigorous
expectations for their salespeople and track progress against those goals
with equal rigor. They manage by analysis rather than anecdote and by
measurement rather than gut. They are continuous-improvement experts
with action plans galore.”
A great sales manager, who actually teaches sales teams rather than simply
inspects them, can motivate their team to master the skills needed to
achieve.
Purpose
The last key to motivating people is purpose. Largely, says Pink, people
will achieve more when they serve a purpose larger than themselves. As a
company, seek to define a purpose bigger than achieving profit. For
example, aim to deliver the best product or service for your customer.
Embrace values such as excellence, service, and teamwork. A sense of
purpose becomes even more clear when companies team up with charities.

93
Sales and Distribution Management

Creating a business environment of cooperation is another way to achieve


purpose. Gamification can add to a culture striving for a larger purpose.
Some companies have used their CRM dashboards to track personal goals
for department-wide or company-wide contests, solidifying relationships
in the company. When gamification is used to help charity, sales incentive
programs take on a purpose higher than increasing the bottom line. Eighty-
five percent of reps attain their quota and 51 percent of new reps make
their goals when gamification is part of the culture, according to Aberdeen
Group’s statistics. Without gamification, the percentage of reps and new
hires that reached their quotas are 78 percent and 42 percent respectively.
Inspirational Sales Quotes Are a Good Jump-Start
The more we overcome our reluctance and take action, the more we realise
just how often things can go well for us.--Caterina Rando
You probably have your favourite motivational sales quotes. Daily quotes
can remind sales reps why they set goals, this helps in staying motivated
and reaching company targets. The way to stay motivated in the sales
process, however, is to teach sales reps to be engaged in reaching their
own goals. (There’s that autonomy again.)
While it’s a good idea to use motivational sales quotes and to have a sales
quote of the day to inspire your team, motivating sales teams also requires
informed goal setting. The compensation and the passion isn’t enough
unless your sales team has the tools to improve their skills.
Goal Setting is a Skill
Obstacles are things a person sees when he takes his eyes off his goal. --
E. Joseph Cossman
Any sales training ideas should include training in goal setting. Effective
goal setting is a skill and skills require practice. Done right, setting goals
increases motivation and achievement of more goals. Motivated people set
objectives and these targets actually increase motivation. This self-
reflexive idea is a huge insight into the study of how to motivate your team
of salespeople. Just as confidence breeds more confidence and success
breeds more success, achieving goals means achieving more goals.

94
Sales and Distribution Management

The trick is to teach sales reps to jump into the cycle. But be careful to set
the right kind of objectives. Sales leadership is key in helping teams set
the right kind of goals.
Goals should focus on behaviour you can control. For instance, you can
control the number of calls your outbound marketing team makes. If you
know that 100 calls produce 5 number of sales, when you increase the
number of calls to 200, you can double your qualified leads. Through
customised CRM dashboards, sales teams can track their personal progress
towards their goals.
A Harvard study showed that going through a goal-setting intervention
actually increased results by 30 percent. Imagine if every sales rep on your
team improved by 30 percent! That’s a powerful lesson in the need to learn
goal-setting skills.
Every goal-setter knows that goals should be specific, time limited,
achievable, and measurable. What most goal-setters don’t realise is that
goals can have unintended negative consequences. Jason Jordan explains
that choosing the wrong metrics and wrong goals “creates a culture of
inspection” and if goals—especially the wrong goals—are focused on too
intently, an atmosphere of “compliance and anxiety” results. A setting
where goals, sales metrics, and KPIs are used without skill creates a
culture without the autonomy, mastery, and purpose which are crucial to
motivation.
The lesson: let your sales team choose their goals (autonomy), train the
sales managers to coach--—not inspect—their progress (mastery), help the
entire organization become excellent at serving the customer or
community (purpose).
In the end it pays to be motivated
Intrinsic motivators—the motivations that come from within—are THE
motivators. Unfortunately business practice doesn’t often mirror the
research. “There is a mismatch between what social science knows and
what business does,” argues Pink. Money is important to salespeople, but
if your company wants to do well, money or any other carrot shouldn’t be
the motivator.

95
Sales and Distribution Management

In setting goals and using CRM dashboard metrics to monitor objectives,


businesses need to avoid creating a culture of anxiety and inspection over
the metrics. Skilled sales leaders will understand how to train their sales
force to set effective goals and achieve great things.
People are motivated by autonomy, mastery, and purpose. And when
people are put in a situation where they have some control over their
circumstances, they have the chance to excel at their tasks, where they find
a larger, unifying purpose, causing sales to flourish.
2.4.1 Sales Force Compensation
Sales compensation refers to the payment a salesperson receives for their
work, which commonly includes a base salary, commission, and additional
monetary incentives to motivate a sales representative.
Things to consider:
Sales compensation should be well-planned to drive the sales team’s
performance to success. This is why when speaking about sales
compensation, one commonly means working out a clever sales
compensation plan that would:
 Be aligned with sales roles. A sales compensation plan should be
specific to the various roles and responsibilities of members within
the sales team.
 Fit a company’s culture. A sales compensation plan should reflect
your company’s unique set of assets. In particular, it’s necessary to
understand how competitive your plan is in comparison to other
businesses within your industry and how it is different for top and
underperforming sales reps.
 Be clear and motivating. Your sales compensation plan should be
simple enough to help your sales teams understand your company’s
goals and the benefits they would get from it. Besides, it should
presuppose rewarding them for the behaviors that result in
business growth in general.
Sales compensation plan examples
There are many examples, or models, of a sales compensation plan.
We will consider five models applied by companies worldwide:

96
Sales and Distribution Management

1. Salary-based compensation plan model


The main advantage of this plan is that it makes it easy to calculate the
compensation and predict hiring requirements. Besides, it relieves sales
reps of stress associated with not meeting the goals.
Among its main disadvantages is the fact that without commission, sales
teams may not be motivated enough to close many deals. As a result, a
company risks losing its top-performing salespeople who will be interested
in receiving commissions for their extra efforts. That is why this model is
not common among sales teams now.

Fig: 2.5 Salary-Based Compensation Plan model


2. Commission-based compensation model
A commission-only plan presupposes paying sales reps based on their
performance only. So, if they don’t close a deal, they get a zero. This
model isn’t risky since the company pays per closed deals only. It also
motivates sales representatives to work harder and get more money.
On the other hand, this sales-compensation plan makes it difficult to
foresee your expenses and plan your budget correspondingly.

97
Sales and Distribution Management

Fig : 2.6 Commission-based compensation plan model


3. Salary+commission-based compensation model
This is the most common plan that allows sales reps to get a fixed income
and stimulates them to sell. Besides, this model is beneficial for a
company, which can budget the base salary and employ a motivated
competitive sales team.
As a rule, the percentage of commission in this plan is lower because of
the fixed salary. The pay mix (the ratio of fixed pay to variable pay)
usually depends on the industry and sales roles.
There can be:

 More aggressive ratio: roles with more influence on purchasing


decisions.
 Mid aggressive ratio: managers with wider sets of
responsibilities.
 Less aggressive ratio: reps with longer sales cycles and strategic
or consultative roles.

98
Sales and Distribution Management

Fig: 2.7 Salary+commission-based compensation model


4. Salary +bonus compensation model
This plan can be used if you know that your sales reps tend to meet the
pre-set goals. You may foresee your expenses by paying your salespeople
a base amount and a predictable bonus per the particular number of sales.
For instance, if you know that 3 out of 5 sales representatives always hit
quota and get $40,000, you may annually budget $120,000 for bonuses.
Nevertheless, this model still makes it hard to motivate your salespeople
to over perform.

Fig: 2.8 Salary +bonus compensation model


5. Straight-line commission model
This sales compensation plan presupposes rewarding salespeople based on
how much or little they sell. For example, if a total commission is $1,000
and a sales rep reaches 90% of their quota, they get 90% of the
commission, which is $900.

99
Sales and Distribution Management

Being quite easy to calculate, this model may be not motivating enough.
Say, if a person is okay with 80% of the quota, they will not be driven for
selling more.

Fig: 2.9 Straight-line commission model


How to create a sales compensation plan
To ensure you have a right sales-compensation plan at hand, you should
take the following steps:
Set your sales compensation plan objectives
Determining your goals is a key step for any strategy. Setting your sales
compensation plan priorities will help you decide how to reward your
salespeople in a way that works best for your company.
Consider some examples of objectives you may set for your sales
compensation plan:
 Grow revenue
 Increase the percentage of repeat customers
 Increase the customer lifetime value
 Lower expenses
 Boost sales for specific products, and so on
Determine your sales compensation model
Now that you have defined your goals, you should choose the type of
compensation plan you will use for your sales team, which will depend on:
 The type of your company and its product
 Your sales cycle
 Your budget
 Your sales team size
 Analysis of sales compensation plans your competitors use

100
Sales and Distribution Management

 Your salespeople’s expectations


Choose when and how you will provide compensation
If your plan presupposes a commission, determine when your salespeople
will get compensated: when a customer signs a contract, when they send
you their first payment, or every time a customer pays. Besides, you should
choose a payroll software option to carry out your sales compensation
plan.
Set quotas
Determine what you expect of your sales reps so that they will know how
they can earn compensation. Remember that quotas must be reasonable,
feasible, and yet reflecting the business goals.
As it is, only 24.3% of salespeople exceed their quota, which means the
number of top performers is usually lower than the rest of your sales team.
Thus, it’s advisable to target average performers while setting quotas to
drive their movement several points upwards.
Review your sales compensation plan
Any business strategy can’t be actionable forever. The same goes for your
sales compensation plan. As your sales team grows, and company
objectives become more ambitious, it should undergo corresponding
changes. However, remember that these changes must always be aligned
with your sales reps’ expectations: they should feel motivated and
rewarded.
Wrapping up
Sales compensation is an important factor in motivating your sales team.
This is why choosing a sales compensation model that would be both
targeted to your sales reps’ expectations and aligned with your company’s
goals is a number one priority if you are pursuing sales growth. What your
business will need to do next is to review its plan as long as you change
your sales goals or direction.
2.4.2 sales incentives
A sales incentive is a reward that employers offer to their sales
professionals for successfully selling a specific amount of products, dollar
amount or service hours. Sales incentives can be monetary, or they can be
physical rewards, experience-based rewards or other types of incentives

101
Sales and Distribution Management

that reflect employee interests and motivations. These added motivators


are rewards meant to provide recognition for exceeding expectations,
meeting objectives and adding to the overall success of an organization.
There are several reasons why introducing sales incentives is
important for teams:

 Increased team productivity: A reward system for continuously


meeting or exceeding team sales goals or expectations can be
highly effective for increasing productivity. As sales teams work
towards these goals, they'll also develop new and valuable skills.
 Higher levels of engagement: Motivating employees through
incentives can also increase your team's engagement in their work.
For instance, setting team objectives that result in recognition and
rewards for the entire sales team can boost engagement for
collaboration, strategizing and implementing sales techniques.
 Higher job satisfaction: Incentives that recognize team effort and
success will naturally lead to your team's overall satisfaction with
their jobs. This job satisfaction also leads to greater productivity
and performance because employees will value their work as they
know their managers recognize their contributions.
 Increased team morale: When teams improve their collaboration
efforts, increase their productivity and feel recognized for their
work, they can be more likely to have an upbeat and positive
attitude in the workplace. This boost in team morale is highly
crucial for completing meaningful work, meeting objectives and
adding value to the entire organization.

Aside from monetary compensation, there are a variety of different


offerings you can include in a sales incentive plan. From team outings
to personal days off, consider the following examples of great sales
incentive ideas:
Entertainment
An outdoor activity or special entertainment event can be a great incentive.
The following ideas provide ways for your team to get outside and engage
in something they enjoy:

102
Sales and Distribution Management

 Tickets to festivals or concerts


 Tickets to theme parks
 Tickets for a sporting event
 Outdoor excursions, such as a boating trip or a camping trip
 Outing to a museum or art gallery
 Outing to a comedy club

Tangible prizes
Physical rewards are another excellent incentive, especially if the reward
is something that your team can use every day. Consider items that
improve their workflow or personal items that they can enjoy at home:

 Technology gadgets like earbuds, tablets, watches or other tech


accessories
 Coffee makers or small appliances
 Noise-canceling headphones
 Office equipment like standing desks or new monitors

Development rewards
Professional development and continuous learning are equally important
motivators. For instance, offering your team the chance to participate in a
course or development seminar gives them the opportunity to develop new
skills and work together to improve sales outcomes for the company and
themselves.
The following ideas are great incentive perks to consider in a sales
incentive plan:

 Professional development training


 Free online courses
 Classes for a team hobby or interest
 Gym or fitness discounts
 Public speaking seminars
 Language classes
 Sales development courses

103
Sales and Distribution Management

Monetary incentives
Monetary rewards are an effective sales incentive. A great way to
incorporate monetary rewards is to provide an equal reward for the whole
team, that way all team members receive recognition.
Here are a few monetary incentive ideas:

 Gift cards
 Bonus checks
 Cash rewards

Experience-based rewards
Exploration and experience are excellent sales incentive ideas because
they provide employees the opportunity to create memories and enjoy
meaningful activities.
Consider ideas like:

 Extra days off of work


 Discounted airfare for vacation
 Team retreat or spa day
 Hotel expenses for a weekend getaway

Food and beverage ideas


Food and beverage ideas are also effective incentives. Think about rewards
that get your team excited about going out to dinner, receiving a
subscription box in the mail or attending a team food or drink event.
Here are several incentives that use food and beverage ideas:

 Restaurant gift cards


 One-month subscription to meal and snack deliveries
 Food gift baskets
 Wine tasting events
 Team night out
 Beverage club membership

Tips for a successful sales incentive plan


When integrating a sales incentive program, it's important to develop a
rewards system that is meaningful to the team as a whole, each individual

104
Sales and Distribution Management

on the team and to the organization's goals. Consider the following tips for
an effective and successful sales incentive plan:
Find out what motivates the team
Figuring out what motivates your team can help you design a plan that can
interest them. You can create a simple survey to find out what the majority
of your team members enjoy, what they're interested in and what motivates
them. Find similar interests and motivators that your team has in common,
and then discuss these ideas with your team. You'll likely receive valuable
feedback on what your team would like to see as an incentive, and this is
important because it will set you up for providing something truly
meaningful as recognition for your team's accomplishments.
Set achievable team goals
It can help to ensure the objectives you set for your sales team are
reasonable. You can use individual objectives to create an overall average
for the entire team. For example, a car sales manager might set individual
objectives of selling a dollar amount while the team could share the total
of these individual goals. Here, the team works toward a collective goal
while further improving their individual skills that support the
achievement of these goals. Consider reviewing average sales per
employee to determine what might be an acceptable goal to meet and
exceed.
Determine the metrics of the plan
Consider setting measurable criteria that tell you when your team meets
objectives. For instance, this can be a daily amount in sales, a weekly quota
of products sold or another metric that you can easily measure to evaluate
achievement and performance. Additionally, the metrics you implement
might be most effective if they are simple and not overly complex so you
can easily and quickly measure performance and progress.
Combine monetary and non-monetary incentives
It's also important to alternate between incentive ideas, especially with
teams who have diverse interests and motivators. Try a different incentive
each month or quarter so your team has a way to enjoy a range of
incentives. For example, you can offer a team cash bonus for the first
quarter, a weekend getaway for the second quarter, tickets to a sporting

105
Sales and Distribution Management

event during the third quarter and another monetary reward in the fourth
quarter.
2.4.3 Sales Force Evaluation
Salesforce evaluation is the comparison of salesforce objectives with
results. A model of the evaluation process is shown in Figure 17.1. It
begins with the setting of salesforce objectives which may be financial,
such as sales revenues, profits and expenses; market-orientated, such as
market share; or customer-based such as customer satisfaction and service
levels. Then, the sales strategy must be decided to show how the objectives
are to be achieved. Next, performance standards should be set for the
overall company, regions, products, salespeople and accounts. Results are
then measured and compared with performance standards. Reasons for
differences are assessed and action taken to improve performance.

Fig: 2.10 Evaluation process


The purpose of Evaluation
The prime reason for evaluation is to attempt to attain company objectives.
By measuring actual performance against objectives, shortfalls can be
identified and appropriate action taken to improve performance. However,
evaluation has other benefits. Evaluation can help improve an individual’s
motivation and skills. Motivation is affected since an evaluation
programmed will identify what is expected and what is considered good
performance. Second, it provides the opportunity for the recognition of
above-average standards of work performance, which improves
confidence and motivation. Skills are affected since carefully constructed

106
Sales and Distribution Management

evaluation allows areas of weakness to be identified and effort to be


directed to the improvement of skills in those areas.
Thus, evaluation is an important ingredient in an effective training
programmed. Further, evaluation may show weaknesses, perhaps in not
devoting enough attention to selling certain product lines, which span most
or all of the sales team. This information may lead to the development of
a compensation plan designed to encourage salespeople to sell those
products by means of higher commission rates.
Evaluation provides information that affects key decision areas within the
sales management function. Training, compensation, motivation and
objective setting are dependent on the information derived from
evaluation, as illustrated in Figure 17.2. It is important, then, that sales
management develops a system of information collection which allows
fair and accurate evaluation to occur.
The level and type of control exercised over international salesforces will
depend upon the culture of the company and its host nations. The boxed
case discussion highlights some important points.

Attainment and setting of


objectives

Compensation Sales force Training


evaluation

Motivation

Fig : 2.11 Sales force evaluation


Setting standards of performance
Evaluation implies the setting of standards of performance along certain
lines that are believed to be important for sales success. The control
process is based upon the collection of information on performance so that

107
Sales and Distribution Management

actual results can be compared against those standards. For the sales team
as a whole, the sales budget will be the standard against which actual
performance will be evaluated. This measure will be used to evaluate sales
management as well as individual salespeople. For each salesperson, their
sales quota will be a prime standard of sales success. Standards provide a
method of fairly assessing and comparing individual salespeople. Simply
comparing levels of sales achieved by individual salespeople is unlikely to
be fair since territories often have differing levels of sales potential and
varying degrees of workload.
Gathering information
The individual salesperson will provide much of the information upon
which evaluation will take place. They will provide head office with data
relating to sales achieved by product/brand and customer, a daily or
weekly report of the names of customers called on and problems and
opportunities revealed, together with expense claims.
Such information will be supplemented by sales management during field
visits. These are important in providing more qualitative information on
how the salesperson performs in front of customers, as well as giving
indications of general attitudes, work habits and degree of organizational
ability, all of which supplement the more quantitative information
provided by the salesperson.
Market research projects can also provide information on the sales team
from customers themselves. A specific project, or a more general one
which focuses on the full range of customer–seller relationships, e.g.
delivery, product reliability, etc., can provide information on salespeople’s
performance. A market research study commissioned by Perkins Engines
found that salespeople with technical backgrounds were basing their sales
presentation on features which were not properly understood by their
audience.1 This led Perkins Engines to retrain their salesforce so that their
sales presentation focused upon a simple presentation of features and the
customer benefits which arose from those features.
Finally, company records provide a rich source of information for
evaluation. Records of past sales levels, calls achieved, expense levels, etc.

108
Sales and Distribution Management

can provide bases for comparison and indications of trends that can be
used both for evaluation and objective setting.
Check your progress - 3
a. _______ training is the process of improving seller skills, knowledge,
and attributes to drive seller behavioral change and maximize sales
success.
b. ___________ can help sellers improve skills, win specific sales
opportunities, grow accounts, achieve sales goals, and accomplish action
plans.

2.5 CONTORLLING THE SALES EFFORT

Many companies have an accountability system that keeps employees


aware of the responsibilities and expectations of their position, especially
organizations involved in business and sales. Sales control is an important
part of running a business, as it helps managers and employees fulfill their
responsibilities and goals to promote the success of the organization. If
you're interested in pursuing a career in business or sales, learning about
sales control may help you complete your job duties more effectively.
In this article, we discuss what sales control is, why it's an important part
of running a business and how to control sales, then list some common
sales control methods and provide helpful tips.
What Is Sales Control?
Sales control refers to the operations that managers undergo to keep track
of and make predictions about the sales and performance of their company.
Managers exercise sales control when they analyze past sales processes,
revise policies and strategies intended to increase sales, create and
optimize sales and budget plans and set up sales information systems.
A sales information system provides employees with important
information regarding the past, present and future of a company's sales,
which the manager can use to create a sales control system, allowing them
to more readily identify, amend or maintain sales operations within the
organization.

109
Sales and Distribution Management

Sales control can look different across various organizations, as there is no


singular method for enforcing controls on a sales department. It's
important for managers to strike a balance when developing their sales
control systems, as employees may be more or less receptive to different
tactics. For example, a system that requires constant reports, meetings and
self-evaluations may become tiresome for employees and make them less
motivated in their work. Conversely, little to no guidance or support from
management can be just as, or even more detrimental, which is why a
reasonable and sales control system is an optimal choice.
Why is sales control important?
Sales control is an important concept because it allows businesses to work
efficiently while ensuring they always stay within their financial means.
Sales control systems make it easier for managers to keep track of sales
and progress, especially if they involve some sort of regular reporting or
tracking of employee work. For companies to meet their monthly,
quarterly or annual sales targets, it's crucial that employees are working
under a streamlined, easy-to-follow and reasonable accountability system
that motivates them to stay productive and achieve sales success. Sales
control also encourages full transparency within corporations.
When employees have the requirement of turning over all of their sales
information to management, there's less chance of errors, either intentional
or not, that the company might otherwise have to dedicate time and funds
to correcting. Sales control systems often emphasize the role of the
consumer, which can also contribute to the success of a venture. By
encouraging representatives to put the needs of the customer first, they're
building a reputation for the company that prioritizes the customer over
the corporation, which can have long-lasting positive impacts on the
company's revenue and standing in its industry.
How to control sales
Sales control can look different across industries, but the foundations of
all sales control systems are the same. Here are five steps you can follow
when trying to implement a sales control system into a company's internal
structure:

110
Sales and Distribution Management

1. Meet with executives


The first step when integrating sales control into a business is to meet with
corporate executives to make sure you consider their targets and vision
when creating your system. If you're in a management position, consider
reaching out to some of your superiors and introduce them to your
preliminary sales control ideas. Ask them what they want to see the
company achieve within the reasonable future and how they think
employees can achieve those goals. Meeting with executives is a way to
ensure your superiors are on board with the sales control methodology.
2. Get employee feedback
The next step is to gather feedback from employees regarding a
prospective sales control system. Consider creating an online survey or
questionnaire where employees can provide their thoughts and attitudes
toward such a system being part of their daily work operations. Here are
some examples of questions you can ask employees to gain a better
understanding of their feelings toward a sales control system and the
standards it would include:

 What do you think is a reasonable sales number for an average


week/month/quarter/year?
 How can management better encourage you to succeed in sales?
 Do you think customer feedback is an accurate metric of your
customer service skills?
 On a scale from one to 10, how much would you appreciate a
rewards system for individuals with the highest sales?
 Do you find one-on-one meetings with management beneficial?

3. Set performance goals


Once you've acquired feedback from sales representatives, the next step
when developing a sales control system is to set performance goals for
employees. When creating performance targets, try considering the
feedback from both executives and salespeople at the company to ensure
that most people feel satisfied with the new system. Set goals that are
reasonable but provide an adequate challenge to your sales department,
motivating them to meet and exceed their initial targets.

111
Sales and Distribution Management

When creating targets, it's important that you can accurately measure and
compare performance in terms of productivity, efficiency, sales, and
customer service.
4. Create evaluation guidelines
After you've set your performance standards, the next step is to create a
set of evaluation guidelines that you can use when measuring employee
performance. When creating a sales control system, it's important that you
have a set of standards to compare employee performance to. Create a
schedule that specifically outlines when employees should meet specific
targets or when management plans to evaluate them. This makes for a
more trusting and transparent evaluation system where employees feel
prepared and in control of their performance.
5. Monitor performance
The final step when integrating a sales control system into a business is to
use the guidelines and structure of the system to monitor employee
performance and contribute positively to the company's revenue. The goal
of sales control is, of course, to improve the financial success of an
organization and keep them on track to meet their sales and revenue goals.
Use the sales control system to motivate employees to work harder and
more efficiently by offering incentives, such as prizes, discounts, bonuses
or time off. Report to corporate frequently to keep them updated on the
system's progress.
Methods for controlling sales
Here are some of the primary methods managers use to control sales
within a company:
Assign individual sales quotas
One common method of sales control is to assign individual sales quotas
to all members of the sales department. This allows for managers to take
circumstances, such as experience and seniority, into account when
deciding on a sales target for each employee. For example, an entry-
level sales representative for a tech brand most likely won't have the same
number of sales in a week as a senior-level salesperson at the same
company. Management can adjust individual sales quotas over time,
allowing employees to improve and increase their work quantity.

112
Sales and Distribution Management

Meet with the sales department regularly


Another common method of sales control is to meet with employees on a
regular basis to discuss their questions and concerns with the company and
their positions. This allows for managers to get an in-depth, first-person
account of how the sales department feels in terms of corporate support,
industry standards and workplace dynamics. Management can also benefit
from regularly meeting with the sales department by getting a better
understanding of who their employees are and what motivates them to
succeed. They can use these insights when planning future sales control
tactics or incentives.
Perform observations consistently
Observations can also provide management with helpful insight as to how
effective their sales control system is or not. Members of management can
dedicate specific times or days to observing employees as they speak to
clients and interact with one another. There are plenty of conclusions
management can come to by observing their sales representatives on the
job. They can determine the level of work ethic, efficiency, morale and
overall company culture within that specific department and use these
insights when developing sales control methods in the future.
Assign sales territories
Another way to promote sales control is to assign sales territories to
employees. A sales territory is a designated location where a salesperson
can find and make deals with clients, but others with different territories
cannot penetrate that specific location's market. By assigning different
sales territories, managers can decrease inter-colleague competition and
target new areas where they may not have as much competition, opening
up brand new markets for the company to generate revenue in. For
example, it's easier to succeed when only five salespeople focus on a
metropolitan area as opposed to the entire team working wherever they
want.
Sales control tips
Here are some tips you can follow to help integrate sales control into
your own work environment:

113
Sales and Distribution Management

 Keep in contact with employees and executives alike to ensure that


everyone taking part in the sales process feels satisfied and has the
motivation to excel in their positions.
 Give employees space and freedom to work without constantly
feeling like management is watching them.
 Incorporate incentives into your sales control system to encourage
employees to exceed their targets and receive rewards for their
hard work.
 Be clear when defining performance standards so that everyone
understands exactly what's expected of them in their work role.
 Foster an environment where employees feel comfortable
approaching management with their questions and concerns to
keep the company operating as smoothly as possible.

2.5.1 sales quotas


A sales quota is the financial goal that individual sellers and teams must
reach by the end of a specific period, usually one month or one quarter.
Quotas are set by sales leaders and quota attainment generally results in a
performance bonus for the salesperson.
Sales Quotas vs. Sales Goals
Are sales quotas and sales goals the same thing? Not quite. Sales quotas
are often part of a series of actions set to help salespeople achieve a certain
goal.
For example, if a company sets a goal to increase revenue by 25% in 2021,
the sales leadership would identify how many sales they need to close in
2021 to meet that revenue goal.
Then, they would calculate how many deals their salespeople need to close
per quarter to contribute to that goal. The financial value of those deals
would be the salesperson’s quota.
Sales Quota vs. Sales Target
Another sales metric that gets mistaken for the sales quota is the sales
target. Sales targets differ from sales quotas in that targets are usually
defined for a team rather than an individual. Sales targets outline how
many products or service packages your team needs to sell to reach

114
Sales and Distribution Management

revenue goals for a specific period of time. Sales targets help salespeople
break down their sales goals and sales quotas into attainable parts.
Sales Quota Agreement
Once sales quotas are set and sales goals and targets are accounted for,
sales reps receive a sales quota agreement outlining each of these items.
The purpose of a sales quota agreement is to provide transparency about
what is required to meet quota and how that quota will be calculated
throughout the selling period. Sales quota agreements keep salespeople
accountable for hitting goals and keep managers accountable for
rewarding performance accurately.
Types of Sales Quotas

1. Activity Quota
2. Volume Quota
3. Profit Quota
4. Combination Quota
5. Forecast Quota
6. Revenue Sales Quota

There are many ways to measure quota. Smaller companies selling a single
product with a static price often set quotas around how many units (i.e., 28
pairs of skates) a salesperson must sell every month.
Larger companies selling multi-tiered products or services might have a
more nuanced quota structure where a salesperson is held to the overall
value of the deals they need to close (i.e., $4,500/month).
But quota structure doesn't end there. Here are the five most common types
of quotas and examples of each one.
1. Activity Quota
An activity quota requires salespeople — usually BDRs or SDRs — to
complete a set number of activities during a period of time, usually one
month or quarter. Activities usually include phone calls, follow-up emails,
scheduling meetings, and leading demos.
This type of quota is usually assigned to BDRs or SDRs who are part of a
larger selling team and aren’t responsible for closing actual business. An

115
Sales and Distribution Management

activity quota ensures they’re contributing to the sales organization and


providing valuable help to the reps they support.
Activity Sales Quota Example
Sales rep Jonathan has a quota of 45 phone calls per month, 84 follow-up
emails, and 12 demos each month. These activities are tracked in his
CRM and his sales manager can easily see how he's tracking to meet his
quota.
2. Volume Quota
Sales reps with volume-based quotas are goaled on the number of units
they sell or the total revenue they generate during a specific time period.
They're incentivized to sell as many units as they can.
Volume Sales Quota Example
Jonathan, with JVN Skates, has a quota to sell 75 pairs of skates each
month. He must sell at least 75 pairs to meet his quota. He likely receives
a commission on each pair of skates he sells and receives a bonus when he
reaches his quota.
3. Profit Quota
This type of quota is based on the gross profit or margin of a dedicated
sales team, product/service grouping, or salesperson.
If you’re held to a gross margin quota, your number would be calculated
by subtracting the cost of goods you sell from the overall revenue. A gross
profit quota is calculated by subtracting selling expenses and the cost of
goods sold from the final revenue number.
Profit Sales Quota Example
Jonathan sells skates to professional skaters. He sells fewer skates at a
higher cost than his sales colleague Antoni, who sells a larger volume of
cheaper skates to recreational skating rinks. Jonathan and Antoni would
both have profit quotas of different amounts.
4. Combination Quota
Some salespeople may have more than one quota. A combination quota
might include an activity quota and a profit quota. A combination strategy
gives reps a roadmap to success and provides smaller milestones to make
their quota more easily attainable.
Combination Sales Quota Example

116
Sales and Distribution Management

Jonathan's quota includes several activity quotas and a profit quota. He


must make 50 calls every month, lead 15 skate demos, and close $2,500
worth of business adjusted for selling expenses and the cost of the skates.
5. Forecast Quota
Forecast quotas are generally assigned to specific sales territories or teams.
A forecast quota is calculated based on the historical performance of a
region and the revenue goal it must hit.
Forecast Sales Quota Example
Let's say Jonathan is the pacific northwest territory rep for JVN Skates and
traditionally closes $7,500 in sales during Q4. If his goal is to increase Q4
revenue by 25% this year, his quota would be $9,400 for the quarter.
If Bobby, the rep who's responsible for the southwest sales region,
historically closes approximately $4,500 in Q4 revenue, he might have an
adjusted quota based on his unique market.
6. Revenue Sales Quota
A simple way to set sales quotas is to use revenue as the goal. That means
each salesperson will be responsible for bringing in a specific amount of
revenue each month or quarter. While this is a pretty simple sales quota,
you can customize this to fit the needs of your business and your sales
team. For example, you could incentive reps to sell certain products by
breaking the larger revenue quota down into smaller sections.
Revenue Sales Quota Example
Jonathan is responsible for meeting a revenue sales quota of $2,500 per
month. Based on historical data, he knows that he needs to sell about 75
$33 skates to meet quota. However, if his sales manager breaks the revenue
goal down by product, Jonathan can have more flexibility by selling fewer,
more expensive skates or targeting low-hanging fruit by selling a larger
number of less expensive ones.
A salesperson’s quota is often directly tied to their compensation plan,
including commission and bonuses.
2.5.2 sales territories
A sales territory is the customer group or geographical area for which an
individual salesperson or a sales team holds responsibility. Territories can
be defined on the basis of geography, sales potential, history, or a

117
Sales and Distribution Management

combination of factors. Companies strive to balance their territories


because this can reduce costs and increase sales. Sales territory can be
varied by salesperson or sales team depending on the product they sell or
the company that they work for, with companies needing to account for
their products price, frequency of sales, and costs in order to determine
sales territory to sell their product in.
Purpose
The purpose of a sales force coverage or (sales territory management)
metric is to create balanced sales territories. There are a number of ways
to analyze territories "Most commonly, territories are compared on the
basis of their potential or size. This is an important exercise. If territories
differ sharply or slip out of balance, sales personnel may be given too
much or too little work. This can lead to under- or over-servicing of
customers."
"When sales personnel are stretched too thin, the result can be an under-
servicing of customers. This can cost a firm business because over-taxed
salespeople engage in sub-optimal levels of activity in a number of areas.
They seek out too few leads, identify too few prospects, and spend too
little time with current customers. Those customers, in turn, may take their
business to alternate providers."
"Over-servicing, by contrast, may raise costs and prices and therefore
indirectly reduce sales. Over-servicing in some territories may also lead to
under-servicing in others."
"Unbalanced territories also raise the problem of unfair distribution of
sales potential among members of a sales force. This may result in
distorted compensation and cause talented salespeople to leave a company,
seeking superior balance and compensation."
"Achieving an appropriate balance among territories is an important factor
in maintaining satisfaction among customers, salespeople, and the
company as a whole."
"Sales potential forecast" can be used to determine sales targets and to help
identify territories worthy of an allocation of limited resources. A sales
potential forecast is a forecast of the number of prospects and their buying
power. It does not assess the likelihood of converting "potential" accounts.

118
Sales and Distribution Management

Sales potential can be represented in a number of ways. Of these, the most


basic is population, i.e., the number of potential accounts in a territory. In
a survey of nearly 200 senior marketing managers, 62 percent responded
that they found the "sales potential forecast" metric very useful.
Construction
"In defining or redefining territories, companies strive to balance
workloads, balance sales potential, develop compact territories, and
minimize disruptions during the redesigns. These goals can have different
effects on different stakeholders. . . . Before designing new territories, a
sales force manager should evaluate the workloads of all members of the
sales team."
The workload for a territory can be calculated as follows:
Workload (#) = [Current accounts (#) * Average time to service an active
account (#)] + [Prospects (#) * Time spent trying to convert a prospect into
an active account (#)]
The sales potential in a territory can be determined as follows:
Sales potential ($) = Number of possible accounts (#) x Buying power ($)
"Buying power is a dollar figure based on such factors as average income
levels, number of businesses in a territory, average sales of those
businesses, and population demographics. Buying power indices are
generally specific to individual industries," but on a whole, definitions of
buying power tend to be more an art than a science.
"In addition to workload and sales potential, a third key metric is needed
to compare territories. This is size or, more specifically, travel time. In this
context, travel time is more useful than size because it more accurately
represents the factor that size implies – that is, the amount of time needed
to reach customers and potential customers."
"As a manager’s goal is to balance workload and potential among sales
personnel, it can be beneficial to calculate combined metrics – such as
sales potential travel time – in order to make comparisons between
territories."
"Sales potential can be represented in a number of ways. Of these, the most
basic is population – the number of potential accounts in a territory. . . .
Estimating the size of a territory might involve simply calculating the

119
Sales and Distribution Management

geographic area that it covers. It is likely, however, that average travel


time will also be important. Depending on the quality of roads, density of
traffic, or distance between businesses, one may find that territories of
equal area entail very different travel time requirements.
In evaluating such distinctions, sales force records of the time needed to
travel from call to call can be useful. Specialized computer software
programs are available for these purposes."
"Redefining territories is a famously difficult process. To perform it well,
in addition to the metrics cited earlier, disruption of customer relationships
and feelings of ownership among sales personnel must also be
considered."
2.5.3 sales audit
A sales audit is an analysis of a company's sales tactics and history. Sales
audits help companies consider their current state so they can make better
sales and business strategies. This process includes both sales and
marketing teams and can help professionals understand the company's
strengths and weaknesses. Typically, auditors perform this procedure,
though it's possible for sales or marketing managers to complete an
internal sales audit.
Sales audits provide an overview of a company's sales tactics, tools,
efforts, inventory and objectives. Understanding these aspects can help
sales professionals reconsider their methods to adopt more efficient and
effective practices. This can help managers within the sales department
make more realistic sales goals and boost company profits.
Who conducts sales audits?
Sales auditors often conduct sales audits. These professionals can be
internal employees of the company for which they're conducting the audit
or work on a consultant basis. Sales auditors use their expertise to suggest
ways for the company to improve its practices. To conduct the audit, sale
audits may review financial documents, interview employees, observe
sales operations and discover existing sales goals. This information helps
them complete a thorough audit and accurate representation of the
company's current sales process.

120
Sales and Distribution Management

How to conduct a sales audit


Follow these steps to learn how to conduct a sales audit:
1. Examine the company's sales practices
Identify the sales practices a company uses, including their sales process,
which is a series of steps they guide a customer through in order to
encourage a purchase. To determine if the sales process is effective, it's
helpful to collect data about leads and sales the company makes currently
with the process. If the company's sales team is meeting sales goals, the
sales process is likely effective. If the sales team isn't meeting the sales
they project with the sales process, you can analyze further to find any
weaknesses or inefficiencies within the stages of the sales process.
2. Take an inventory of marketing and sales tools
Sales tools help automate routine tasks that the sales team may perform,
such as measuring the number of leads that a landing page helps to acquire.
It's helpful to make an inventory of all the marketing and sales tools the
company is using because this helps assess where you can optimize the
sales process. For example, if the sales team is manually scheduling social
media posts rather than using a tool to manage the schedule of their posts,
this may be an area for optimization.
Taking an inventory may also help identify overlap, where tools are being
used to perform the same tasks. Choosing the more efficient tool to
perform these tasks can preserve the marketing and sales budget.
3. Evaluate the quality of the company's current sales leads
A sales lead is a consumer who shows an interest in a company or its
products. Nurturing these leads helps the sales team to make sales. When
you evaluate the quality of the company's current sales leads, consider
factors such as target audience, a form of engagement and customer
history. Ideally, a sales lead matches the target audience demographics
closely and engages with the company by signing up for a mailing list or
requesting more information .
A lead that exhibits these behaviors may be more likely to make a purchase
from the company than another lead that doesn't match the target audience
and engages only through social media posts. When evaluating sales leads,
it's also important to examine how the marketing and sales teams handle

121
Sales and Distribution Management

leads and how they interact with consumers. You may advise practices that
build trust and relationships with consumers to increase sales and the
effectiveness of the company sales process.
4. Study sales reports and data
Studying sales reports and data helps gain a better understanding of how
this data influences sales decisions. Determine how the sales team uses the
sales reports to make decisions and guide future sales content. The data
may show how the sales and marketing teams measure success and how
they use the data to repeat success.
If it appears the data isn't useful to the team, you may consider changing
the metrics to measure success and gather sales information.
Here are common metrics to use for sales reporting:

 Number of sales
 Customer acquisition
 Return on investment
 Average revenue per customer
 Customer retention
 Lead generation

5. Consider sales efficacy and customer service


During a sales audit, it's necessary to examine the collaboration between
the sales team and other departments within the company to ensure that
employees are working toward the same goals. The relationships between
sales representatives and customers are also important to examine to
ensure that the company is providing excellent customer service. Good
relationships with customers contribute to higher rates of retention and an
increase in sales. Maintaining customer relationships can also help
develop personalized content and products for customers.
6. Create a report
Create a report of all of your findings from the audit. This provides
documentation for the sales and marketing managers to assess their team
and process and helps develop strategies to improve sales for the company.
The report may include your own suggestions for how to optimize the sales
process, improve the quality of leads and increase efficiency on the sales

122
Sales and Distribution Management

team. Try to remain objective in your reporting and provide a detailed list
of the sales data and discoveries you make during the audit.
Tips for conducting a sales audit
Consider these tips to help you in conducting a sales audit:

 Ask for feedback. Asking the sales team for feedback on what
they think works well within the process and what might need
improvement can help you focus the audit and provide helpful
suggestions.
 Set measurable goals. Before you begin your audit, set
measurable goals regarding the audit's impact. This can help you
monitor the progress of the audit and allow you to work toward
specific results.
 Stay organized. Use tools, such as spreadsheets, to help you
organize the information you find during the audit. It's also helpful
to organize your resources so you can reference them later in the
process.
 Consider competition sales processes. Identifying the sales
processes of competitors can help you compare the effectiveness
of the company's sales practices and set specific goals for the audit.

Check your progress - 4


a. _________ refers to the operations that managers undergo to keep track
of and make predictions about the sales and performance of their company.
b. A __________ is a designated location where a salesperson can find and
make deals with clients, but others with different territories cannot
penetrate that specific location's market.

2.6 LET US SUM UP

 The sales force is the employee force of an organization that is


responsible for selling the products and services.
 Sales force management involves personal selling, customer
relationship management.

123
Sales and Distribution Management

 sales force needs to be properly organized, motivated and


compensated in order to have the right size to do the workload,
alignment to cover all needs, and keeping them happy and selling.

 The line sales organization is the oldest type used in smaller firms
and in firms where there is a small selling force. This limitation
restricts them to narrow product line in limited geographical area.

 An advantage of geography form of organization is its simplicity.


Each sales person is assigned a territory over which to have sole
responsibility for sales achievement.
Managing a sales team is one of the more challenging, and more
important, roles in any company.

2.7 KEY WORDS

 Sales compensation refers to the payment a salesperson receives


for their work, which commonly includes a base salary,
commission, and additional monetary incentives to motivate a
sales representative.
 A sales incentive is a reward that employers offer to their sales
professionals for successfully selling a specific amount of
products, dollar amount or service hours.
 Salesforce evaluation is the comparison of salesforce objectives
with results.
 A sales territory is a designated location where a salesperson can
find and make deals with clients, but others with different
territories cannot penetrate that specific location's market.
 Sales audits provide an overview of a company's sales tactics,
tools, efforts, inventory and objectives.

124
Sales and Distribution Management

2.8 SOME USEFUL BOOKS

1.Charles Futrell, Sales Management, Pearson Education Books


2. Eugene M. Johnson, David L. Kurtz & Eberhard E. Scheuing, Sales
Management; Mcgraw Hill.
3. Anderson, R. Professional Sales Management, Englewood Cliffs, New
Jersey, Prentice Hall of India, 1992.
4. Anderson, R. Professional Personal Selling, Englewood Cliffs, New
Jersey, Prentice Hall Inc.

2.9 ANSWERS TO CHECK YOUR PROGRESS

Refer 2.2 for Answer to check your progress- 1 Q. 1


a. breakdown method
Refer 2.2 for Answer to check your progress- 1 Q. 2
b. workload
Refer 2.3 for Answer to check your progress- 2 Q. 1
a. sales
Refer 2.3 for Answer to check your progress- 2 Q. 2
b. distribution
Refer 2.4 for Answer to check your progress- 3 Q. 1
a. Sales
Refer 2.4 for Answer to check your progress- 3 Q. 2
b. Coaching
Refer 2.5 for Answer to check your progress- 4 Q. 1
a. sales control
Refer 2.5 for Answer to check your progress- 4 Q. 2
b. Sales territory

2.10 TERMINAL QUESTIONS

1. What is sales training? Explain the methods involved.


2. Describe sales compensation.

125

You might also like