Sales Management Principles

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What are the stages in the recruitment and selection process?

Recruitment, Selection

Which of the following qualities are important for salespeople? (Select all that apply)

Technical skills

Determination (correct)

Communication skills (correct)

Personality (correct)

Maslow’s Hierarchy of Needs is related to ______.

motivation

Herzberg's theory includes hygiene factors and motivating factors.

True Signup and view all the answers

What are some methods of selection aids?

Psychological tests, role playing, personality tests, interviews Signup and view all the answers

Which type of salespeople are described as aiming to maximize their earnings?

Money oriented Signup and view all the answers

What are the different types of salesforce organization structure?

Geographical, Product specialization, Industry-based Signup and view all the answers

Training programs for sales managers are important for ______.

development Signup and view all the answers

What is a likely result of a sales manager having high performance goals?

Higher levels of motivation in the sales team Signup and view all the answers

Which of the following best defines motivating factors in Herzberg’s theory?

Recognition and achievement Signup and view all the answers

How can companies source recruitment effectively?

From both internal and external sources Signup and view all the answers

What role does personality testing play in the selection process?

Evaluates the candidate’s suitability for the sales role Signup and view all the answers

What is the focus of Vroom’s Expectancy Theory in sales management?

Linking effort and performance to desirable outcomes Signup and view all the answers

What is the primary characteristic of 'Creatures of habit' salespeople?

They maintain a standard of living by earning a predetermined amount. Signup and view all the answers

Which type of sales structure focuses on specific product lines?

Product Specialization Structure Signup and view all the answers

What characteristic is associated with effective salespeople?

High levels of determination and integrity Signup and view all the answers

Which of the following best describes the attractiveness of a job to a salesperson, according to Maslow’s hierarchy?

Opportunities for achievement and recognition Signup and view all the answers

What defines 'Goal orientated' salespeople?

They seek recognition as achievers and are sales quota oriented. Signup and view all the answers

Which selection aid is likely to assess candidates' practical skills in real-life scenarios?

Role-playing exercises Signup and view all the answers

What is a common financial incentive method used to motivate salespeople?

Sales contests Signup and view all the answers

Which compensation type sacrifices family relationships and leisure time for financial gain?

Money orientated Signup and view all the answers

What is a key component of a successful motivation strategy for salespeople?

Clear and attainable performance rewards Signup and view all the answers

Which of the following best describes 'Trade-off-ers' salespeople?

They maintain a strict work-life ratio not influenced by higher earnings. Signup and view all the answers

In a sales organization, what is an industry-based structure primarily focused on?

Unique characteristics of industries covered Signup and view all the answers

Study Notes

Recruitment and Selection

Salespeople recruitment is a costly process
There is variability in the effectiveness of salespeople
Other determinants of success also contribute to the effectiveness of salespeople

Stages in Recruitment and Selection Process

This process includes several stages
These stages may include, but are not limited to: Identifying the need for the sale, preparing the recruitment and selection plan, conducting the interviews, analyzing data and making hiring decisions

Some Important Qualities of Sales People

Salespeople need to possess various essential qualities
These include: communication skills, personality, determination, intelligence, motivation, product knowledge, empathy, initiative, confidence, self-discipline, experience, and adaptability

Sources of Recruitment

This process involves looking for talent in a variety of places
Some of these sources include internal promotions, recruitment agencies, educational establishments, competitors, other industries, and unemployed individuals

Selection Aids

Several tools are used for the selection process
These tools include: psychological tests, role playing, personality tests, and interviews

Motivation - Maslow’s Hierarchy of Needs

This theory explores the hierarchy of human needs
It proposes a five-tier model of human needs that include: physiological, safety, love/belonging, esteem, and self-actualisation

Motivation - Herzberg’s 2 Factor Theory

This theory divides motivational factors into two categories: hygiene factors and motivating factors
Hygiene factors relate to the workplace environment and include physical working conditions, pay, security, salary, and interpersonal relationships
Motivating factors are intrinsic to the work and include nature of work, achievement, recognition, and responsibility

Motivation - Vroom’s Expectancy Theory

This theory explains employee motivation based on three key factors: expectancy, instrumentality, and valence
It suggests that an individual's motivation is determined by the perceived probability that their effort will lead to a desired outcome

Motivation - Likert’s Sales Management Theory

This theory emphasizes the influence of sales managers on the behaviour of their sales teams
High-performing sales teams usually have sales managers who themselves have high performance goals, implying a strong correlation

Motivation – The Churchill, Ford and Walker Model of Salesforce Motivation

This model highlights two key components of sales force motivation: convincing salespeople that increased effort translates to increased sales and convincing salespeople that the rewards for better performance are worthwhile

Motivation in Practice

Motivation can be implemented through various methods
Some practical examples include: offering financial incentives, creating a commission-based compensation structure, setting sales targets and quotas, conducting meetings between managers and salespeople, facilitating promotions, and organizing sales contests

Training - Benefits

Training salesforces can bring several benefits
These benefits can include: motivating salespeople to perform better, increasing sales, lowering overall selling costs, reducing turnover, and fostering salespeople's personal and professional growth

Components of Training Program

Effective training programmes require a comprehensive approach
These programmes often consist of multiple components including the identification of training objectives, the development of appropriate training materials, the selection of suitable training methods, the provision of training evaluation, and the subsequent follow-up actions

Methods of Training Sales Manager

Sales managers can be trained through various methods
These methods include: on-the-job training, role-playing, case studies, simulations, and classroom training

Topics Covered in Training Programmes for Managers

These trainings often cover essential aspects of sales management
Some common topics include: sales management theory, planning and goal setting, managing the sales process and pipeline, coaching and mentoring techniques, time management and delegation, and customer relationship management

Types of Salesforce Organization Structure

Several organizational structures are used to manage sales teams
Common structures include: geographical structure, product specialization structure, industry-based structure, and account-size structure

Geographical Structure

This structure divides sales teams based on geographical regions
This geographical division enables focused coverage of specific markets and territories

Product Specialization Structure

This structure focuses on organizing sales teams based on product lines or categories
It can be used to create specialized knowledge and expertise around individual products

Industry-Based Structure

This structure aligns sales teams based on specific industries or customer segments
This approach allows salespeople to develop industry expertise and build relationships with businesses within those sectors

Account-Size Structure

This structure classifies sales teams by account size
It allows for specialized management and service for different account sizes

Types of Salespeople based on Compensation

Salespeople can be categorized based on their compensation motivations
These include: creatures of habit, satisfiers, trade-off-ers, goal orientated, and money orientated individuals
The motivational frameworks that govern these individual groups vary significantly

Types of Compensation Plans

Compensation plans are crucial for motivating and incentivising sales teams
Different compensation plans are adopted by companies and can be tailored to suit individual needs and business goals
Some common compensation plans include: salary-based plans, commission-based plans, combination plans that involve both salary and commission, and bonus plans that are based on achieving specific performance goals or exceeding sales targets

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

Test your knowledge on the fundamentals of sales management, including recruitment, selection processes, and salesforce organization structures. Explore essential qualities for salespeople and critical theories like Maslow’s Hierarchy of Needs. This quiz is perfect for students of sales management or professionals looking to refresh their knowledge.