06.IngramSM8Ch61.pptx

Continual Development of the Sales Force: Sales Training

Chapter 6: Continual Development of the Salesforce: Sales Training

Ingram

LaForge

Avila

Schwepker Jr.

Williams

Sales Management: Analysis and Decision Making

1

Learning Objectives

Understand the role of sales training in salesforce socialization.

Explain the importance of sales training and the sales manager’s role in sales training.

Describe the sales training process as a series of six interrelated steps.

Discuss six methods for assessing sales training needs and identify typical sales training needs.

Chapter 6: Continual Development of the Salesforce: Sales Training

Ingram

LaForge

Avila

Schwepker Jr.

Williams

Sales Management: Analysis and Decision Making

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Learning Objectives

Name some typical objectives of sales training programs, and explain how setting objectives for sales training is beneficial to sales managers.

Identify the key issues in evaluating sales training alternatives.

Identify key ethical and legal issues in sales training.

Chapter 6: Continual Development of the Salesforce: Sales Training

Ingram

LaForge

Avila

Schwepker Jr.

Williams

Sales Management: Analysis and Decision Making

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Sales Training as a Crucial Investment

Most organizations see a link between sales training and salesperson productivity

U.S. companies spend billions annually on training

Research indicates sales training provides a positive ROI

The need for sales training is continual

Chapter 6: Continual Development of the Salesforce: Sales Training

Ingram

LaForge

Avila

Schwepker Jr.

Williams

Sales Management: Analysis and Decision Making

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Chapter 6: Continual Development of the Salesforce: Sales Training

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LaForge

Avila

Schwepker Jr.

Williams

Sales Management: Analysis and Decision Making

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Role of Sales Training in Sales Force Socialization

Sales training helps socialize the new hires, providing them with a positive:

Role Definition — An understanding of what tasks are to be performed, what the priorities of the tasks are, and how time should be allocated among the tasks.

Initiation to Task — The degree to which a sales trainee feels competent and accepted as a working partner

Chapter 6: Continual Development of the Salesforce: Sales Training

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LaForge

Avila

Schwepker Jr.

Williams

Sales Management: Analysis and Decision Making

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Managing the Sales Training Process

Chapter 6: Continual Development of the Salesforce: Sales Training

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Assess Sales Training Needs

Set Training Objectives

Evaluate Training Alternatives

Design Sales Training Program

Perform Sales Training

Conduct Follow-Up and Evaluation

Assess Training Needs: Methods

Which of these methods would you chose to assess training needs? Why?

Chapter 6: Continual Development of the Salesforce: Sales Training

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Sales Management: Analysis and Decision Making

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Sales Force Audit

Performance Testing

Observation

Salesforce Survey

Customer Survey

Job analysis

An appraisal of all salesforce activities and the environment in which the salesforce operates.

Evaluation of particular tasks or skills of the salesforce.

Sales managers assess training needs while observing salespeople in the field.

Salespeople are queried as to what types of training they need.

Customers are queried about how salesforce is performing.

An investigation of the tasks, duties, and responsibilities of the sales job.

Typical Sales Training Needs

Sales Techniques: Salespeople have an ongoing need to learn “how to sell,” including questioning, listening, developing trust, and managing relationships.

Product Knowledge: Salespeople must know their product’s benefits, applications, competitive strengths, and limitations

Chapter 6: Continual Development of the Salesforce: Sales Training

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LaForge

Avila

Schwepker Jr.

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Sales Management: Analysis and Decision Making

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Typical Sales Training Needs

Customer Knowledge: Salespeople should know their customer needs, buying motives, buying procedures, and personalities.

Competitive Knowledge: Salespeople must know competitive offerings in terms of strengths and weaknesses.

Chapter 6: Continual Development of the Salesforce: Sales Training

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Typical Sales Training Needs

Time & Territory Management: Salespeople should learn to maximum work efficiency.

Self-Management: Salespeople should continuously work on improving their decision-making and professional behavior.

Chapter 6: Continual Development of the Salesforce: Sales Training

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Competencies of Successful Salespeople

Aligning customer/supplier strategic objectives

Listening beyond product needs

Understanding the financial impact of decisions

Orchestrating organizational resources

Chapter 6: Continual Development of the Salesforce: Sales Training

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Competencies of Successful Salespeople

Consultative problem solving

Establishing a vision of a committed customer/supplier relationship

Engaging in self-appraisal and continuous learning

Chapter 6: Continual Development of the Salesforce: Sales Training

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Sales Training for Different Types of Buyers

Chapter 6: Continual Development of the Salesforce: Sales Training

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Sales Management: Analysis and Decision Making

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Hard Bargainer

Negotiation strategies

Sales Job Facilitator

Importance of quid pro quo

Advantages of having a satisfied customer base

Straight Shooter

Selling the “substance” not just the “sizzle.”

Straightforward techniques for handling objections

Listening skills and handling objections

Competitive product knowledge

How customers can assist salespeople

Sales Training for Different Types of Buyers

Chapter 6: Continual Development of the Salesforce: Sales Training

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Sales Management: Analysis and Decision Making

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Socializer

Policies regarding socializing and giving gifts to customers

Persuaders

Importance of qualifying prospects

Considerate

Importance of obtaining market information from customers

Ethical and legal implication of transacting business

Techniques for qualifying prospects

Importance of quid pro quo

Managing the Sales Training Process

Chapter 6: Continual Development of the Salesforce: Sales Training

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LaForge

Avila

Schwepker Jr.

Williams

Sales Management: Analysis and Decision Making

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Assess Sales Training Needs

Set Training Objectives

Evaluate Training Alternatives

Design Sales Training Program

Perform Sales Training

Conduct Follow-Up and Evaluation

Set Training Objectives

Increase sales or profits

Create positive attitudes and improve salesforce morale

Assist in sales force socialization

Reduce role conflict and ambiguity

Chapter 6: Continual Development of the Salesforce: Sales Training

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Set Training Objectives

Introduce new products, markets, and promotional programs

Develop salespeople for future management positions

Ensure awareness of ethical and legal responsibilities

Teach administrative procedures (e.g., expense accounts, call reports)

Chapter 6: Continual Development of the Salesforce: Sales Training

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LaForge

Avila

Schwepker Jr.

Williams

Sales Management: Analysis and Decision Making

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Set Training Objectives

Ensure competence in the use of sales and sales support tools, such as CRM technology

Minimize sales force turnover rate

Prepare new salespeople for assignment to a sales territory

Improve teamwork & cooperative efforts

Chapter 6: Continual Development of the Salesforce: Sales Training

Ingram

LaForge

Avila

Schwepker Jr.

Williams

Sales Management: Analysis and Decision Making

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Managing the Sales Training Process

Chapter 6: Continual Development of the Salesforce: Sales Training

Ingram

LaForge

Avila

Schwepker Jr.

Williams

Sales Management: Analysis and Decision Making

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Assess Sales Training Needs

Set Training Objectives

Evaluate Training Alternatives

Design Sales Training Program

Perform Sales Training

Conduct Follow-Up and Evaluation

Evaluate Training Alternatives

Selecting Sales Trainers

Internal

External

Selecting Sales Training Locations

Decentralized (e.g., district or regional offices)

Centralized (e.g., corporate headquarter)

Chapter 6: Continual Development of the Salesforce: Sales Training

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Schwepker Jr.

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Evaluate Training Alternatives

Selecting Sales Training Methods

Classroom/Conference Training

On-the-job Training (OJT)

Mentoring

Job rotation

Behavioral Simulations

Absorption Training

Chapter 6: Continual Development of the Salesforce: Sales Training

Ingram

LaForge

Avila

Schwepker Jr.

Williams

Sales Management: Analysis and Decision Making

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Evaluate Training Alternatives

Selecting Sales Training Media

Internet

Computer-Based (e.g., DVD & CD-ROM)

Video Conferencing

Satellite Television

Paper-Based

Chapter 6: Continual Development of the Salesforce: Sales Training

Ingram

LaForge

Avila

Schwepker Jr.

Williams

Sales Management: Analysis and Decision Making

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Managing the Sales Training Process

Chapter 6: Continual Development of the Salesforce: Sales Training

Ingram

LaForge

Avila

Schwepker Jr.

Williams

Sales Management: Analysis and Decision Making

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Assess Sales Training Needs

Set Training Objectives

Evaluate Training Alternatives

Design Sales Training Program

Perform Sales Training

Conduct Follow-Up and Evaluation

Design the Sales Training Program

Finalize the Training Program

Schedule Training Sessions

Make Necessary Travel Arrangements

Make Necessary Accommodation Arrangements

Chapter 6: Continual Development of the Salesforce: Sales Training

Ingram

LaForge

Avila

Schwepker Jr.

Williams

Sales Management: Analysis and Decision Making

25

9

Managing the Sales Training Process

Chapter 6: Continual Development of the Salesforce: Sales Training

Ingram

LaForge

Avila

Schwepker Jr.

Williams

Sales Management: Analysis and Decision Making

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5

Assess Sales Training Needs

Set Training Objectives

Evaluate Training Alternatives

Design Sales Training Program

Perform Sales Training

Conduct Follow-Up and Evaluation

Perform Sales Training

Sales Manager’s Primary Responsibility during training:

Monitor progress of the trainees

Ensure adequate presentation of the training topics.

Chapter 6: Continual Development of the Salesforce: Sales Training

Ingram

LaForge

Avila

Schwepker Jr.

Williams

Sales Management: Analysis and Decision Making

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Perform Sales Training

As the training is being conducted, the sales manager’s primary responsibility is to monitor progress of the trainees and to ensure adequate presentation of the training topics.

Problems:

Poor Attendance

Poor Attention

Poor Presentation

As a team, select once of these problems and discuss how you would

address.

Chapter 6: Continual Development of the Salesforce: Sales Training

Ingram

LaForge

Avila

Schwepker Jr.

Williams

Sales Management: Analysis and Decision Making

28

9

Managing the Sales Training Process

Chapter 6: Continual Development of the Salesforce: Sales Training

Ingram

LaForge

Avila

Schwepker Jr.

Williams

Sales Management: Analysis and Decision Making

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5

Assess Sales Training Needs

Set Training Objectives

Evaluate Training Alternatives

Design Sales Training Program

Perform Sales Training

Conduct Follow-Up and Evaluation

Conduct Follow-Up and Evaluation

Difficult to measure effectiveness of sales training.

Reasonable attempt must be made to assess whether current training expenditures are worthwhile and whether future modification is warranted.

Chapter 6: Continual Development of the Salesforce: Sales Training

Ingram

LaForge

Avila

Schwepker Jr.

Williams

Sales Management: Analysis and Decision Making

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Conduct Follow-Up and Evaluation

Reaction Measures

Learning Measures

Behavior Measures

Results Measures

As a team, discuss which of these measures are most important.

Chapter 6: Continual Development of the Salesforce: Sales Training

Ingram

LaForge

Avila

Schwepker Jr.

Williams

Sales Management: Analysis and Decision Making

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Methods for Reinforcing New Sales Skills Acquired During Training

Sharing sales methods and languages with the sales team

Coaching by the sales manager

Follow-up training classes

Clear statement of management expectations

Incentive compensation for new sales behaviors

Technology reinforcement and support

Coaching by outside specialists

Participation in a community Web site based on the training

Chapter 6: Continual Development of the Salesforce: Sales Training

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Schwepker Jr.

Williams

Sales Management: Analysis and Decision Making

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Ethically Troubling Situations

Making statements to an existing purchaser that exaggerate the seriousness of his or her problem to obtain a bigger order or other concessions.

Soliciting low-priority or low-volume business that the salesperson’s firm will not deliver or service in an economic slowdown or periods of resource shortages.

Allowing personalities – liking one purchaser and disliking another – to affect price, delivery, and other decisions regarding the terms of sale.

Seeking information from purchasers on competitor’s quotations for the purpose of submitting another quotation.

Having less competitive prices or other terms for buyers who use your firm as the sole source of supply than for firms for which you are one of two or more suppliers.

Chapter 6: Continual Development of the Salesforce: Sales Training

Ingram

LaForge

Avila

Schwepker Jr.

Williams

Sales Management: Analysis and Decision Making

33

Ethically Troubling Situations

Giving physical gifts such as free sales promotion prizes or “purchase-volume incentive bonuses” to a purchaser.

Providing free trips, free luncheons or dinners, or other free entertainment to a purchaser.

Using the firm’s economic power to obtain premium prices or other concessions from buyers.

Gaining information about competitors by asking purchasers.

Giving preferential treatment to purchasers whom higher levels of the firm’s own management prefer or recommend.

Attempting to reach and influence other departments directly rather than going through the purchasing department when such avoidance of the purchasing department increases the likelihood of a sale.

Chapter 6: Continual Development of the Salesforce: Sales Training

Ingram

LaForge

Avila

Schwepker Jr.

Williams

Sales Management: Analysis and Decision Making

34

Legal Reminders for Salespeople

Use factual data

Thoroughly educate customers

Don’t overstep authority

Be careful when communicating with competitors

Don’t engage in “bait and switch”

Don’t try to force the customer to buy only from your organization

Don’t engage in discrimination

Don’t tamper with a competitor’s product

Do not disparage a competitor’s product

Avoid promises that will be difficult or impossible to honor

Chapter 6: Continual Development of the Salesforce: Sales Training

Ingram

LaForge

Avila

Schwepker Jr.

Williams

Sales Management: Analysis and Decision Making

35

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