Lesson Proper for Week 7

MANAGING THE SALES TRAINING PROCESS

SALES TRAINING - is expensive and sales managers / HR should take special care to ensure that
time and money are wisely spent.
The sales training process consists of three phases.
1. Assess Sales Training Needs
2. Methods used for Assessing Training Needs
3. Popular Sales Training Needs

ASSESS SALES TRAINING NEEDS

PURPOSE: To understand the specific goals of training for individual salespeople.
SPECIFIC GOALS:
 Improving product knowledge
  Selling techniques, or relationship building
What is need assessment?
 “A needs assessment is simply a systematic process of asking questions, comparing
answers, and making informed decisions about what to do next to improve human or
organizational performance.”
 NeedsAssessment.org
ROLE OF SALES TRAINING: - to prevent problems on a proactive basis.
Capability gaps - arise when the sales force does not have the required knowledge, skills, or
capabilities to become successful on the job.
REMEMBER!
Sales training exists to overcome deficiencies and to make salespeople continuously successful.
Sales managers / HR should access the training needs for both:
1. Newly hired sales trainees
- may need training in sales techniques.
2. Experienced (regular or existing) salespeople
- could need training in negotiating skills.
METHODS USED FOR ASSESSING TRAINING NEEDS
(a) sales manager’s observation
(b) sales force survey
(c) customer survey
(d) performance testing
(e) job description
(f) sales force audit
SALES MANAGER’S OBSERVATION
 Field sales managers spend a lot of time in the field working with the salespeople.
 These first level sales managers observe the need for particular sales training, based on
specific shortcoming (or deficiency) of the salesperson.
SALES FORCE SURVEY
 To identify the training needs of the salespeople, it is important to conduct sales force survey,
as an independent activity or combined.

CUSTOMER SURVEY
  Some companies, where personal selling is the key element of their sales and marketing
strategy, customer survey to identify sales training needs is very much recommended.
 The customer survey also helps to understand customer expectations, the company
salespeople’s competencies, as compared to that of other salespeople in the same industry.

PERFORMANCE TESTING
 Some companies test knowledge and skills of salespeople by conducting performance
testing of salespersons on a regular basis.
 Sales trainers / HR evaluate the performance of salespersons on presentation skills, product
knowledge, and customer relationship management and so on to determine training needs.
JOB DESCRIPTION
 Job description statement would be useful not only for recruitment and selection, but also for
sales training and evaluation of sales force.
 It is, therefore, a logical tool to be used in assessing the training needs.
SALES FORCE AUDIT
 As a part of marketing audit or sales audit, some companies use sales force audit for
assessing training needs of salespeople.
 Generally conducted once a year, the sales force audit asks questions on the training
programs about its adequacy, contribution, and version.

POPULAR SALES TRAINING NEEDS

(a)product knowledge
(b)customer knowledge
(c)competitive knowledge
(d)sales techniques
(e)company knowledge
PRODUCT KNOWLEDGE
 Usually product knowledge is the commonly covered topic sales training programs.
 It includes advantages, benefits, applications, and limitations.
 If the product or service is technically complex, more time is spent in giving the detailed
knowledge.
 When the company develops a new product or carries out a major modification of the
existing product, training on new product is needed even for experienced salespeople.
CUSTOMER KNOWLEDGE
 The sales training may include relevant information about the company’s customer, such as
type of customers (like household consumers, government customers, and institutional
customers), knowledge of customer’s businesses, customer needs, buying motives, buying
orientations and procedures, and so on.
 For international or foreign customers, the training programs should include cultural
differences and business practices followed in foreign countries.

COMPETITIVE KNOWLEDGE
  Knowledge of competitors’ products or services in terms of strengths, weaknesses,
strategies, and tactics as well as prices, discounts, payment terms are very important for
salespeople to plan sales strategy.
 Competitors’ knowledge would help a salesperson during a sales presentation, overcoming
customer objections, negotiation, and finally closing the sale.

SALES TECHNIQUES (OR SELLING SKILLS)

 Many salespeople are not competent in sales techniques and hence, they need training on
“how to sell”.
 There are many common shortcomings (like ineffective questioning and listening skills,
giving benefits before understanding the customer needs) which can be removed by a good
training program.
COMPANY KNOWLEDGE
 New sales trainees should be told about the company’s vision, mission, values, objectives,
organization structure, policies and procedures.
 The general policies may include personnel policies like canteen policies and leave policies.
 It is also necessary for the trainees to understand the history and any other relevant
background information that helps to develop a sense of pride about the company.
Lesson Proper for Week 8
MOTIVATING THE SALESFORCE
“How do I motivate my salespeople?” is one of the most common questions asked by managers.
WHAT IS MOTIVATION?
 Motivation is originally derived from the Latin word “movere”, which means “to move”.
 The desire to spend effort to fulfill a need is motivation.
 In the sales job, motivation is the effort the salesperson makes to complete various activities
of the job.
Motivation includes three dimensions:
 Intensity - refers to the amount of physical and mental effort the salesperson spends on a
given task.
 Persistence - describes how long the salesperson continues to put forth effort.
 Direction - suggests the salesperson’s choice of direction of effort among various tasks.
RELEVANCE OF MOTIVATIONAL THEORIES TO SALESPEOPLE
 Maslow’s Hierarchy Of Needs Theory
 Hertzberg’s Dual-factor Theory
 Acquired Needs Theory
 Expectancy Theory
MASLOW’S HIERARCHY OF NEEDS THEORY
 This theory has a relevance to Salesforce motivation.
 Different salespersons will have different needs, and therefore, what may act as a motivator
for one salesperson may not be effective with another.
 A sales manager can take suitable managerial actions only after an accurate assessment of
the needs of individual salespersons.
HERTZBERG’S DUAL-FACTOR THEORY
 A theory of motivation developed by Frederick Hertzberg is called dual-factor theory, in which
sources of dissatisfaction and satisfaction are grouped into two groups: Hygiene factors and
Motivation factors.
 Examples of hygiene factors are working conditions, security, supervision, interpersonal
relationships, salary, and company policies.
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2. My courses
3. 123 - PMM414
4. Week 8 : MOTIVATING THE SALESFORCE
5. Lesson Proper for Week 8

Lesson Proper for Week 8

MOTIVATING THE SALESFORCE
“How do I motivate my salespeople?” is one of the most common questions asked by managers.
WHAT IS MOTIVATION?
 Motivation is originally derived from the Latin word “movere”, which means “to move”.
 The desire to spend effort to fulfill a need is motivation.
 In the sales job, motivation is the effort the salesperson makes to complete various activities
of the job.
Motivation includes three dimensions:
 Intensity - refers to the amount of physical and mental effort the salesperson spends on a
given task.
 Persistence - describes how long the salesperson continues to put forth effort.
 Direction - suggests the salesperson’s choice of direction of effort among various tasks.
RELEVANCE OF MOTIVATIONAL THEORIES TO SALESPEOPLE
 Maslow’s Hierarchy Of Needs Theory
 Hertzberg’s Dual-factor Theory
 Acquired Needs Theory
 Expectancy Theory
MASLOW’S HIERARCHY OF NEEDS THEORY
 This theory has a relevance to Salesforce motivation.
 Different salespersons will have different needs, and therefore, what may act as a motivator
for one salesperson may not be effective with another.
 A sales manager can take suitable managerial actions only after an accurate assessment of
the needs of individual salespersons.
HERTZBERG’S DUAL-FACTOR THEORY
 A theory of motivation developed by Frederick Hertzberg is called dual-factor theory, in which
sources of dissatisfaction and satisfaction are grouped into two groups: Hygiene factors and
Motivation factors.
 Examples of hygiene factors are working conditions, security, supervision, interpersonal
relationships, salary, and company policies.
ACQUIRED NEEDS THEORY
Acquired needs theory was developed as a result of a research made by David McClelland and his
associates.

Three fundamental needs:

 Need for achievement – This refers to the desire to do something better or more efficiently, to
solve problems, or to master complex tasks.
 Need for Affiliation – This refers to the desire to establish and maintain friendly and warm
relations with others.
 Need for power – This refers to the desire to control others, to influence their behavior, or to
be responsible for others.
EXPECTANCY THEORY
  One of the process theories refer to expectancy theory that was developed by Victor Vroom.
 This theory sees people as choosing a course of action according to what they anticipate will
give them the greatest rewards.

Motivation is a product of the following factors:

 VALENCE – how much one wants a reward. This concept describes the value placed on a
particular reward by a salesperson, for an instance, if the reward is recognition given to the
salesperson by the sales manager, it may not carry much value to the person. For some
other person’s recognition has a great value.
 EXPECTANCY – This concept refers to the person’s perception of the relationship between
effort and performance. It points out to what extent a person expects (or hopes) that
increased efforts will lead to superior performance.
 INSTRUMENTALITY – one’s estimate that performance will result in receiving the reward.
COMPENSATING THE SALESFORCE
 Financial compensation or pay was given the highest value by salespeople as a tool for
motivation.
 It is, therefore, a widely used method or tool for motivating salespeople.
Financial incentives take the form of any or a combination of the following:
 Time Rates
 Payment by Results
 Performance Related Pay
 Profit Related Pay
 Skill Based Pay
Time Rates
 This monetary reward uses the number of hours worked as means of determining rewards.
Payment By Results
 This scheme links pays the quality of the individual’s output.

Performance Related Pay

 This scheme considers results or output plus actual behavior in the job.
  Most often, rewards consist of bonus as a percentage of basic salary, with quality of
performance determining the magnitude of the percentage increase.

Profit Related Pay

 This is an organization wide scheme where pay is linked to company profits.
 Profit related pay takes the form of direct cash outlay, or allocation of stock options.

Skill Based Pay

 Also known as competency based or knowledge based pay, this is a pay that sets pay levels
on the basis of how many skills employees have, or how many jobs they can do.
Lesson Proper for Week 9
Distribution Management and Marketing Mix

Place
 Part of the Marketing Mix
 One Major aspect of marketing management process
This aspect of the marketing function provides the following:
Place Utility
making your product available to the customer at the retail shop
Time Utility
making your product available (at the retail counter)
Possession Utility
when the customer goes to the retail shop to buy, he can pay for it and take home
Definition of Distribution Management
 The management of all activities which facilitates movement and co-ordination of supply and
demand in the creation of time and place utility in goods.
 The art and sciences determining requirements, acquiring, distributing, and maintaining in
operationally ready condition for their lives.
 Broad range of activities concerned with the efficient movement of finished products from the
end of the production line to the customer.
 It also includes the movement of raw materials from the source of supply to the beginning of
the production line.
Intermediaries or channel members are normally expected to perform the following
functions:
 To accumulate the right kind of goods, aggregating and sorting to meet consumer needs at
the point of purchase.
 To believe in routine and simplified transactions and work with a large number of products.
 To provide information both to the sellers and the buyers to help them manage their business
better.
 To buy a large variety of goods and can compare costs and prices and make the right
recommendations to their customers.
 To be aware of the environment in which they operate and hence isolate the companies from
the direct impact of these local conditions.
 To reduce the number of touch points.

Discrepancies and Distribution Channels

Spatial Discrepancy
 Temporal Discrepancy
 Need to break the bulk
 Need to provide assortment
Discrepancies and Distribution Channels
 Spatial Discrepancy it occurs due to the ‘space’ or distance between the production point of
the product or service and its consumption points.
 Temporal Discrepancy this refers to the time difference between the production point and
the time at which the product may get bought or consumed.
 Need for breaking the Bulk to minimize the production cost.
Lesson Proper for Week 10
RETAILING
WHAT IS RETAILING ?
 According to English Dictionary, “Retail” is derived from the term “Retailer” which seems to
be a French word meaning “to break the bulk” The term retailer also implies that he deals
directly with the end user or consumer.
SOME OF THE OTHER CHARACTERISTICS OF RETAIL TRADE ARE:
 The order sizes tend to be small but many
 The retailer caters to a wide variety of customers and hence has to keep a large assortment
of goods.
 A lot of buying in the retail outlet could be on impulse and hence managing inventory is
critical.
 The retailer’s strengths are in ensuring availability and visibility of the product he sells – true
for the corner grocer or the supermarket.
Definition of Retailing
Any business entity selling products and services to consumers is “RETAILING”. The goods may
sold in shop, in person by malls, on the internet. Telephone or vending machines.
Retailing includes all the activities involved in selling or renting consumer product and services
directly to ultimate consumers for their personal or home consumption.
HOW DO CONSUMERS DECIDE WHICH RETAILER TO BUY FROM? A CONSUMER SELECTS
A RETAILER BASED ON THE FOLLOWING FACTORS:
1. Price (value offered, credit, special discounts)
2. Location ( Convenience, parking , safety, stores nearby)
3. Product Selection (width and depth assortment, brands, quality)
4. Special Services (home delivery, special orders, gift wrap)
5. Helpful Salespeople (polite, knowledgeable, fast)
6. Fairness in dealings ( honesty, return privileges)
WHAT DOES THE RETAILER DO TO ENSURE STICKINESS IN HIS CONSUMERS?

FUNCTIONS OF RETAILING INCLUDE:

o Performing marketing functions that enable them to make available a wide variety of
products to the consumers.
o Helping create time, place and possession utility.
o Adding form utility such as when a clothing retailer alters a trouser to fit a consumer.
o A retailer’s services also help create an image for the products he sells.
o A retailer add value to products through:
 The services they offer such as credit, delivery, extended store hours.
 The personnel they hire who help identify and solve customer problems.
 The store’s location, perhaps near other stores or in a bazaar to facilitate
comparison shopping.
A retail firm can be classified according to:
1. Form of ownership sole ownership, partnership, corporation, consumer co-operatives.
2. Operational structure independent, chain, franchise.
3. Service and price orientation full service, limited service normal margin, discounter, off-
price.
4. Merchandise offering general, mass or specialty, merchandise depth refers to the number
of brands, model or styles carried for each products category.
5. Where the sale takes place in the store or non-store.


 Lesson Proper for Week 14

 Analysis, Application, and Exploration for Week 14

 Generalization for Week 14

 Evaluation for Week 14

 Assignment for Week 14

CollapseWeek 15 : INTERNATIONAL SALES AND DISTRIBUTION MANAGEMENT

 Preliminary Activity for Week 15

  Lesson Proper for Week 15

 Analysis, Application, and Exploration for Week 15

 Generalization for Week 15

 Evaluation for Week 15

 Assignment for Week 15

CollapseWeek 16 : SELLING IN INTERNATIONAL MARKETS

 Preliminary Activity for Week 16

 Lesson Proper for Week 16

 Analysis, Application, and Exploration for Week 16

 Generalization for Week 16

 Evaluation for Week 16

 Assignment for Week 16

CollapseWEEK 17 : 5 BENEFITS OF CUSTOMER RELATIONSHIP MANAGEMENT FOR

DISTRIBUTION

 Preliminary Activity for Week 17

 Lesson Proper for Week 17

 Analysis, Application, and Exploration for Week 17

 Generalization for Week 17

 Evaluation for Week 17

 Assignment for Week 17

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4. Week 11 : TYPE OF RETAILERS
5. Lesson Proper for Week 11
Lesson Proper for Week 11
Some of the kinds of retailers are:
Specialty store
Narrow product line with deep assortment – apparel, furniture, books.
Department store
Several product line in different departments – shoppers stop, big bazaar.
Supermarket
Large, low-cost. Low margin. High volume self service operation with a wide offering.
Convenience store
Small stores located in residential areas, open long hours all days of the week – limited variety of
fast moving products like groceries and foods.
Discount store
These retail outlets buy in bulk from producers on low negotiated prices and can offer discounts of
up to 20% on the listed consumer price to the consumer.
Voluntary chain retailer co-ops
Wholesaler sponsored group of independent retailers independent retailers with central buying
operations and common promotion.
Consumer co-ops
Co-operative societies of group of consumers operating their own stores – farmers, industrial
workers and so on.
Franchise organization
Contractual arrangement between the producer and retailers – selling the producer’s products
exclusively.
Chain store
Retail stores could be in multiple locations but easily recognizable by the store design,
brandname/logo, common merchandizing plan and the same customer service and promotional
strategies.
High street (western term)
Store located in busy shopping areas. These necessarily have to be a small (not more than 2000 sq
ft.) limited assortment of merchandise, no parking facilities.
Destination (western term)
These stores have to attract the customer with large size, good bargain, ample parking space and
wide variety to choose from but located in a particular part of the city which takes some effort to
reach.
Family store
Is defined as an apparel store which caters to the entire family.
Specialty Store
Deals with a large variety of a limited range of goods. Bata shops and Titan showrooms are good
example. They could be company owned or franchised.
Emporium (used by government or export firms)
Usually promoted for selling a particular category of products. Thisis very similarto a specialty store.
Most state governments operate these to promote their handicrafts.
Superstore
Is considered as bigger than a supermarket but operating on a single floor. Experts say that a
superstore is more than 5000 sq ft. and stocks a wide variety of food and other items. It may also
have a have a chemist, bakery or florist on its premises.
Shopping Mall
These are growing rapidly in India. These are number of different retailstores organized in one
premises which is severalstories high and with ample parking facilities.It may even include
entertainment and food stalls. Independentretailers pay for the space in the malls which are usually
over 200,000 sq ft.
Hypermarket
Is considered more than 200,000 sq ft. but one retailer brand. It stocks almost everything including
groceries, food, nonfood, textiles, garments, footwear, and stationery.
Every day low price (EDLP)
These are discounted stores in the Western countries who announce low prices every day on some
select merchandised.
Category killer (Western term)
This is a specialty store with a large assortment at very low prices. They offer the best price regular
in the market and hence are a threat to all other retailers. This again is not a regular feature of Indian
markets.
Factory outlet
Most of the garment and footwear manufacturers have these outlets. They would be selling either
regular goods or in many cases ‘seconds’ or ‘export materials. These used to be earlier in the factory
premises but can now be seen across cities.
Warehouse
This store is temporary and is run by individual parties for a limited period ‘sale’. They normally
engage a huge space like a marriage hall to conduct this sale.
Single price denomination
All items in the store are priced at one or two attractive, low prices.
Stop-Over Store
This is a store within another like grocery and food stores seen in petrol stations.
Kiosks
Is a small independent unit which can be located in busy place like airports, and busstations and
normally sellssoft drinks, cigarettes, and beverages and is open on three sides to handle the rush of
customers. There could also be kiosks to just give information.One is reminded of the ‘may I help
you kiosks you see In majorrailway stations.
Vending Machines
Dispensed fixed quantities of products for fixed prices. Selfoperated by the consumer – beverages,
condoms, magazines, chocolates.
Independent Store
Owned by a single person or one or two partners. All the hundreds of retail store in India come under
this category whether they are grocers, chemists or ration shops.
Franchise
The store brand is common but operated by many persons on behalf of the main retailer.
Hawkers
Visit residential localities with their merchandise and sell house to house with almost fresh tocks
every day
THE ROLE OF THE RETAILER
The Retailer is able to provide the service to the customers by the following:
1.MERCHANDIZING 
 The definition of merchandizing is a set of activities involved in acquiring goods and services
and making them available at the places, times and prices and the quality that enable a
retailer to reach his goals. 
 It focuses on acquiring the goods and storing them so that any consumer can access them at
a time, place and quantity convenient to him.
2.CUSTOMER SERVICE OR SERVICE 
 The basic function or retailer is to provide the goods most likely to be bought by his
prospective customers at a place and time when the customer wants them. 
 He should ensure that his goods are of a good quality and affordable by the customers
Some of the factors affecting the customers service are:
 The location of store and its working hours.
 The assortment of the goods.
 The prices at which the goods are made available.
 Help and assistance within the store support the selection of the goods by the customer.
 The store may even provide services like accepting orders on phone, home delivery, a credit,
and transport to the stores, and so on.
3. PLANNING THE RETAIL FORMAT 
 The format denotes the kind of store it is.
 The format is again to choice of the retailer based on his long term strategy.
 Once the format is decided, it is quite difficult to change as the customers then start
recognizing the store by its format.
 The format gives the image to the store.
4. CUSTOMER COMMUNICATION
 Communication refers to the manner in which the retailer makes himself known to his
prospective customers.
 this communication, initially may take the form of press advertisements., hand bills, and the
like. Communication basically is used by the retailer to:
o Announce the opening of the retailer store
o Tell customers about the promotions running
o Inform the customers about any additional facilities introduced in he store.