SalesForce Management Exam 2

Referent

Influence gained by persuasion

Reward

Is evident when a leader can give or take away a reward.

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

Initiation to Task

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

Motivation

The force within us that activates our behavior. -Intensity -Direction -Persistence

Coercive

This is felt when a leader creates the perception of a threat

Job Security

a sense of being a desired employee that comes from consistent exceptional performance

Opportunity for Personal Growth

access to programs that allow for personal development (ex: tuition reimbursement, leadership development seminars)

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

Direct Costs (separable)

costs that are incurred with a single unit of sales operations and can be allocated in their entirety (salary, travel)

Indirect costs (common)

costs that cannot be related easily to only one specific product or market segment

What is the Primary metric?

dollars and units

outcome based perspective

focuses on objective measures of results with little monitoring or directing of salesperson behavior by sales managers

Behavior Approach

identify behaviors associated with effective leadership

Contingency Approach

leadership style is contingent upon situation

Types of Sales Force Rewards

recognition job security promotion sense of accomplishment pay personal growth opportunities

Opportunity for Promotion

the ability to move up in an organization along one or more career paths

Motivation Intensity

the amount of mental and physical effort put forth by the salesperson

Motivation Direction

the extent to which an individual determines and chooses efforts focused on a particular goal

Motivation Persistence

the extent to which the goal-directed effort is put forth over time

Recognition

the informal or formal acknowledgement of a desired accomplishment

sense of accomplishment

the internal sense of satisfaction from successful performance Sales management should facilitate salespeople's ability to feel this a sense of accomplishment

Compensation Rewards

those given in return for acceptable performance or effort. they can include non financial compensation

Expert Power

when a leader has significant domain knowledge/ skills

Purposes of Salesperson Performance Evaluations

1. To ensure that compensation and other reward disbursements are consistent with actual salesperson performance. 2. To identify salespeople that might be promoted. 3. To identify salespeople whose employment should be terminated and to supply evidence to support the need for termination. 4. To determine the specific training and counseling needs of individual salespeople and the overall salesforce. 5. To provide information for effective human resource planning. 6. To identify criteria that can be used to recruit and select salespeople in the future. 7. To advise salespeople of work expectations. 8. To motivate salespeople. 9. To help salespeople set career goals. 10. To relate salesperson performance to sales organization goals. 11. To enhance communications between salesperson and sales manager. 12. To improve salesperson performance.

Sales Organization Audit

A comprehensive, systematic, diagnostic, and prescriptive tool Assesses a firm's sales management process Provides direction for improved performance and prescription for needed changes Should be performed regularly should be conducted by someone from outside the sales organization

Managing the Sales Training Process

- Assess sales training needs - set training objectives - evaluate training alternatives - design sales training program - perform sales training - conduct follow-up and evaluation

Nonfinancial Compensation

- Opportunity for Promotion -Sense of Accomplishment -Opportunity for Personal Growth -Recognition -Job Security

Common mistakes salespeople make

- ineffective listening/ questioning - failure to build rapport/ trust - poor prospecting - lack of preplanning - over controlling the sales call - failure to respond to customers needs - failure to close

Straight Salary Advantages

- salaries are simple to administer -planned earnings are easy to project - salaries can provide control over salespeople's activities, and reassignments are less of a problem -salaries are useful when substantial development work is required

Straight Commission Advantages

- strong incentive to perform - income is linked directly to desired results - straight commission plans offer cost-control benefits

Leadership Skills

-Anticipation -Seeking Feedback -Diagnostic Skills -Selection and Matching -Communication

3 methods used for allocating Indirect Costs

-Equally -As a percentage of sales -as a percentage of direct costs

Leadership Model for Sales Management

-Situation (Time constraints, nature of tasks, History and norms) -Needs (Salespeople, other people) -Leadership Skills (Anticipation, Diagnostic, Selection, Communication) -Power (Salespeople, other people) -Power (Sales Manager) -Goals and Objectives (Individual, organizational)

Straight Commission Disadvantages

-Straight commission plans contribute little to company loyalty -Problems may also arise if commissions are not limited by an earnings cap

Straight Salary Disadvantages

-salaries offer little incentive for better performance -salary compression could cause perceptions of inequity among experienced salespeople -salaries represent fixed overhead

Salesperson performance evaluation approaches

1) Most evaluate on an annual basis 2) Most combine input and output criteria which are evaluated using quantitative and qualitative measures 3) When used, performance standards or quotas are set in collaboration with salespeople 4) Many assign weights to different objectives and incorporate territory data 5) Most use multiple sources of information 6) Most are conducted by the field sales manager who supervises the salesperson 7) Most provide a written copy of the review and personal discussion

Guidelines for Motivating and Rewarding Salespeople

1. Recruit and select salespeople whose personal motives match the requirements and rewards of the job

Legitimate

Comes when a leader has a legitimately held position of authority

Sales Expenses

Controls used in the sales expense reimbursement process include: 1. A definition of which expenses are reimbursable 2. The establishment of expense budget 3. The use of allowance for certain expenditures 4. Documentation of expenses to be reimbursed

Customer Survey

Customers are queried about how salesforce is performing.

Five sources of Power

Expert Referent Legitimate Reward Coercive

Cost Allocation

For the purpose of conducted a Marketing Cost Analysis executives must regroup expenses into various classifications, this causes problems which fall into two categories: -A decision must be made on the categories -Many expenses cut across several categories

Trait Approach

Identify traits of an effective leader

Non-Compensation Rewards

Those beneficial factors related to the work situation and well-being of each salesperson

Communication Skills: Influence Strategies

Threats (Coercive power) Promises (reward power) Persuasion (expert or referent power) Relationships (referent or legitimate power) Manipulation

Situational Factors

Trait Approach Behavior Approach Contingency Approach

When should we count an order as a sale?

When an order is placed When an order is shipped When payment is received

Intrinsic motivation

When doing the job is inherently motivating

Extrinsic Motivation

When rewards such as pay and formal recognition act as motivators