Sales Force Management: Recruitment, Selection, and Supervision
Sales Force Acquisition: Analyzing Workforce Needs
Effective sales force acquisition begins with a thorough analysis of the company’s workforce needs. This involves understanding the business requirements and defining the roles and responsibilities of each position.
Job Description and Job Specification
A clear and concise job description outlines the objectives, expected results, relationships, and duties of a specific role. The job specification, on the other hand, details the necessary qualifications, skills, experience, and abilities required for the position. Both documents should be in writing to avoid misunderstandings.
Evaluating Work Performance
When evaluating work performance, it’s crucial to consider three key aspects:
- Attitudes
- Skills
- Knowledge
Recruitment and Selection of Sales Professionals
A successful sales force starts with the recruitment and selection of top-notch sales professionals. A well-defined recruitment system should include the following functions:
- Continuous receipt of résumés
- Capturing information from successful salespeople
- Contacting potential candidate sources
- Maintaining an updated applicant database
- Ensuring a flow of qualified applicants
Recruitment Tasks
The recruitment process typically involves:
- Preparing a written job description
- Recruiting a sufficient number of applicants
- Selecting the most suitable candidate(s)
Personnel Selection Tools
Several tools can be used in personnel selection, including:
- Employment application forms
- Interviews
- Reference checks
- Credit reports
- Skills and psychological tests
- Medical examinations
Sales Territory Definition and Distribution
A sales territory can be defined as a group of existing and potential customers with similar characteristics. Effective territory distribution ensures balanced workloads and equal sales opportunities for all representatives.
Characteristics of a Sales Territory
- Easy determination of sales potential
- Minimized travel time and transportation costs
- Equal sales opportunities compared to competitors
- Balanced workloads
Sales Territory Distribution Methods
Several methods can be used for sales territory distribution:
- Geographic areas: Dividing a territory into smaller areas and assigning each to a salesperson or team.
- By products: Assigning salespeople to specific product lines, especially for companies with specialized products.
- By clients: Creating sales teams tailored to the specific characteristics and needs of different customer segments.
Sales Planning and Customer Loyalty
An effective sales plan involves understanding the customer, developing a business plan, assessing opportunities, closing the sale, and providing ongoing support. Building customer loyalty is crucial for long-term success and involves fostering a strong relationship based on trust and satisfaction.
Benefits of Defined Territories
- Comprehensive customer understanding
- Clear understanding of customer needs
- Strengthened relationships and trust
Sales Quotas and Management
A sales quota represents a portion of the company’s total sales target assigned to a specific salesperson, team, or territory. Effective quotas should be achievable, objective, easy to understand, flexible, and equitable.
Purposes of Sales Quotas
- Providing targets and incentives
- Evaluating performance
- Controlling sales activities
- Identifying strengths and weaknesses
- Improving compensation plan effectiveness
- Controlling sales expenses
- Enhancing sales contests
Types of Sales Quotas
- Sales quotas
- Turnover in pesos
- Sales volume in units
- Turnover in points
Sales Management and Leadership
Sales management is a continuous process of managing resources to achieve sales objectives efficiently. It involves planning, organization, execution, coordination, and control.
Levels of Sales Management
- Senior Management: Responsible for overall objective fulfillment.
- Middle Management: Heads of departments, primarily focused on organizational functions.
- Operative Department: Managers who assign tasks and supervise workers.
Leadership Styles
Different leadership styles include:
- Autocratic
- Paternalistic
- Laissez-faire
- Democratic
- Bureaucratic
- Institutional
Delegation of Functions
Delegation involves entrusting authority and responsibility to team members for decision-making and task execution. It empowers employees, encourages participation, and allows managers to focus on strategic decisions.
Communication in Sales Management
Effective communication is essential for successful sales management. It involves transmitting information between individuals or groups and plays a crucial role in achieving organizational goals.
Elements of Communication
- Sender
- Message
- Receiver
Organizational Communication
Organizational communication can be defined as:
- A social process
- A discipline
- A set of techniques and activities
- Internal communication
- External communication
The Role of the Supervisor
The supervisor acts as a link between management and salespeople, interpreting control data, providing guidance, and ensuring that sales activities align with company objectives. Effective supervisors possess strong leadership skills, integrity, and empathy.