Discuss Sales Force Management Decisions.

Sales Force management is the planning, analysis, implementation of the plan and evaluation of the sales force functions in the target market.

The major steps involve –
1) Designing sales force objective and strategy
2) Sales force size
3) Recruitment and selection
4) Training and motivation
5) Compensating
6) Supervising
7) Evaluation and control of sales people

1) Designing sales force structure and strategy – The objectives give foundation to the individual objectives of the salesmen. The objectives layout details on what the organisations focus will be. It can be focussing on new customers, new product, existing customers or existing products. Not only should the management focus on sales targets, but also market performance, customer relations and service, supporting the marketing functions. The objectives give platform for measuring the performance of the sales function and the salespeople. Today the sales people are not just responsible for generating sales but are the “account managers” who are a single point of contact for an existing customer with the organisation. For example, an insurance agent maintains a long term relationship with a client educating about the insurance policy, collecting payments, resolving any issues, etc.

2) Sales force size – the size of the sales force is determined based on the market attractiveness, competition, budget allotted to sales function and other environmental factors. It becomes difficult to analyse these elements in the form of data to arrive at an exact size of the sales force but it definitely gives direction in arriving at a certain figure. Basis these influences, the management can make changes to the salespeople deployed.

3) Recruitment and selection – For a successful sales function it is imperative to have good salespeople. A perfect sales person can increase the customer base and profits for the organisation. The human resource department seeks applications via company’s website, print ads, contacting recruitment agencies, etc. The selection process mostly focuses on the enthusiasm and self-confidence of the applicant. The person should have a pleasing personality and should be always ready to get into a conversation. The customers trust a person who is knowledgeable, helpful and appears trustworthy.

4) Training, Supervision and motivation – It is important that the salespeople are given ample training not only on the product but also on how the organisation functions. Once a salesperson associates himself/ herself with the organisation there is self-drive in the efforts. They need to identify with the organisation. The training should be effective to ensure the salesman is knowledgeable about the company’s product and the competition in the market. They need to be well versed in making sales pitch, handling customer’s queries and their key performance metrics.

The management has to direct and motivate the sales force to give it right direction. An efficiently managed salesforce successfully meets its responsibilities and tasks. The management needs to create a comfortable working environment and there should be flow of effective communication among the management, salesperson and the customers. Sharing complete company policies and procedures with the salespeople, and training of the salespeople should be done when necessary.

Mostly financial rewards are considered the best rewards to keep the sales people motivated. The organisation has to decide which factor keeps the sales person motivated. These could be financial rewards, recognition or a promotion.

5) Compensating – To ensure right sales people get selected there should be an appropriate compensation plan. Compensation involves elements like (1) fixed salary, (2) variable components like commission, rewards, bonus, etc., (3) expenses incurred in the field, and (4) fringe benefits (health benefits, company vehicle, club membership, etc.). The weightage to each of these elements should be assigned so as to give fair compensation as well as keep the salespeople motivated. It should justify the efforts and results given by the salesman and his/ her team.

6) Evaluation and control of sales people – The management has to evaluate and control the entire sales function as well as individual salespeople. For the sales function as a whole the management has to work on the training as well as proper allocation of resources to the assigned territories. If the results are not been met, an analysis needs to be done to ensure the correct strategy is being followed. For individual salesperson’s evaluation, the organisation should maintain a database on the performance of individual salesperson as well as the team. The performance is measured according to a set performance standard determined by the management. The management should always analyse if the performance of an individual salesperson is correctly aligned with the compensation given. Else the organisation stands a risk of losing a quality salesperson to a competitor with a better compensation criteria. The communication should always be open between the management and the sales people for proper exchange of feedback and solutions.