Sales force training

The term training may change (e.g. It is currently referred to as learning,coaching,facilitating,etc.)but the concept remains the same people continually need help in mastering new skills, applying new knowledge and adjusting their attitudes. Building a sales training programme requires five major decisions-aims, content, method ,execution and evaluation. These are referred as the A-C-M-EE decisions. Aims of training Defining the specific and general aims of a training programmeis the first step in training .general aims are translated into specific aims phrased in operational terms. These can be defined in two ways: 1)Identify initial training needs. 2)continuing sales training programmes. Identifying Initial Training Needs: it can be identified by the analysis of three main factorsJob specification: The qualifications needed to perform the job are detailed in job specification. The set of job specifications needs scrutinizing for clues to the points on which new personnel are most likely to need training. Trainees background and experience: The gap between the qualifications in the job specifications and those a trainee already has represents the nature and amount of training needed. Sales-related marketing policies : it is also necessary to determine initial sales training needs because the differences in products markets and their selling practices and policies determines the differences in training programmes. For example selling of highly technical goods involves training with lot of product information while selling of non-technical goods involves only initial sales training programmes. Identifying continuing sales training programmes: the identification of continuing sales training needs means to identify training needs of experienced sales personnel which are felt due o changes in market,product,marketing policies ,procedures and even in the sales personnel itself.

Contents of Training
It varies from company to company because of differences in products ,markets, company policies, trainees, ability and experience and organization size.it comprises of mainly four areas: product data, sales technique, markets and company information. Product data: product training depends on the nature of the product-If the product is highly technical then they will devote more than half of their programme to product training. If product is non technical, then minimal amount of product training is required. Sales technique: there are two views in this context. Some sales managers believe that if an individual has an attractive personality, good appearance, voice and reasonable intelligence and knows the product, he will sell it easily .but the predominant view is that new sales personnel need basic instruction inhow to sell. This view is reflected in most of the companies. Markets:slaes person needs to know who the customers are, their particular location and particular products in which they are interested. They should also know about their buying habits, motives and their financial condition. Company information: the company should essentially inform the sales person about the companys pricing policy ,product services ,spare parts and repairs ,credit extension and customer relations.

Methods of training 1) The lecture: lecture is the method of learning through instructions form
trainer to trainee. Trainees mainly watch and listen, although some versions of lecturing permit question. Advantages: 1 It is more economical as compare to other methods.

2 It is the only method to cover the desired training content if initial sales training is brief. 3 it is the only practical way to handle instruction when the training group is too large.

Disadvantages 1 teaching is emphasized more than learning. 2 only one-way communications between trainer and trainee prevails.

2)Personal conference: it is an unstructured and informal method .it

varies with the personalities of the trainer and the trainee and the topics discussed. The trainer and trainee jointly analyses problems such as effective use of selling time, route planning and call scheduling and also handling unusual selling problems.

3)Demonstration : sales managers plan and carry out a real selling call on a customer or prospect with the salesman they are training present as silent observers. The method is most appropriately used for training new salesmen . 4) Role playing : role playing can be defined as a method of human interaction which involves realistic behavior in an imaginary situation. Merit of the role playing method are: 1. Learning by doing is emphasized 2.Human sensitivity and interactions are stressed 3.The knowledge of result is immediate 4.Trainee interest and involvement tent to be high.

5.Trainees learn to accept criticism from others and the group soon recognizes that sound suggestions benefit everyone. 6.Role players practice intr4ospection through participating in the appraisal of their won performances.

5)Case discussion (Learning by doing) :the case is a set of data (real or fictional,written or oral).miniature description and summary of such data present issue and problems calling for solutions or action 6) gaming simulation: this method is somewhat similar to role playing with unique feature that it uses highly structured and contrived situations based on reality and players receive information feedback. Advantages: A . participants learns easily because they involves themselves in game play. b. players develop skills in identifying key factors influencing decisions. c. games have built- in information feedback features. Limitation:
a.

Some minimum amount of time is required for playing , usually , three to four hours, which is not sufficient to provide desired learning experience.

b. Since the game deigns are based on ordinary decision making process their rules often prevent play on unusual or novel approaches. c. Poorly designed games may actually hinder instead of helping.

7) on the job training : In this the salesmen are coached and instructed by skilled co- workers or by supervisors or by the special training instructor. They learn the job by personal observation and practice as well as occasionally handling it. 8) programmed learning: programmed instruction involves a sequence of steps which are often set through the panel of an electronic computer as a guide in the performance of desired operation or services of operation. It involves breaking down information into meaningful units and then arranging these in a proper way to form a logical and sequential learning programme or package for use with the machine. But programmed instruction have not been widely adopted for sales training due to their high cost of operation and other constraints. 9) correspondence courses: companies with highly technical products and small but widely deployed sales forces use corresponded courses to acquaint experienced sales people with new product development and application. It is most appropriate as an interim training method when trainees are scattered geographically but are assembled periodically for lectures, seminars, role playing and other instructions. Evalution of training programmes: This is the but not the least step of the training programme. Evalution involues the comparing of the training programme aim with the result and measuring its impact on the sales person.

There is no direct method of measuring the iompact of training but certain method could provide indications whether the results are positive or not. These are: 1. Market share percentage. 2. Written tests. 3. Observers which work with sales personnel. It is true that the training program mes effectiveness is widely dependent on trainers.

CASE STUDY: ABC computers Limited faced the problem of turnover of IT employees . the company was not exactly recognize what the problem behind this although the company provide proper base salary, bonus, incentive, but the turnover has not slowed down . the company also want to promote the requirement and reteintion of good employees but it is not possible due to high turnover rate.

Q: what measure do you suggest to bring down turnover rate? A: this situation is related with intrinsic compensation , Firstly what is intrinsic compensation: intrinsic compensation represent employees psychological states that result for performing their job. Here , we can saw that company provide proper extrinsic benefit like; salary , bonus, incentives, but here the problem related with the psychological states of the employees which is related with the career development and mental support. We can bring down the turnover rate with the help of following factors. 1. skill variety 2. task identity 3. task significance 4. autonomy 5. feedback it means , the company identify the skill of every individual . the company must know about knowledge and specialized area of every individual according to that company assign the task to their employees, so they fulfill the task in effective and efficient way , if the company provide the work according to their interest area, then they perform in their best way because the dont have any type of mental pressure. The company should also provide some amount of the freedom according to their task and responsibility, and companys main focus is on

feedback system whether the employees are satisfied with the companies norms and policies or not. Some other methods which are adopted by the company to reduce the turnover rate: 1. by career development training programme 2. by job satisfaction with the help of proper working condition, 3. by role analysis exercise 4. by formulating of public policy 5. by establishing assessment center for career planning 6. by different reorganization programme 7. by consider morale values

Compensation The literal meaning of compensation is to counter balance.

In sales and distribution management compensation means the company wants to increase sales and profits at a minimum cost where as the salesperson is interested in maximum his earnings. An effective compensation plan take care of both the parties. Therefore, a compensation plan must attract , retain and motivate capable sales personal and also work within the companys budget. According to the motivational theories , money has limited potential as a motivator. Nevertheless, sales force needs to be compensated to keep its moral high and to contributes its maximum. A sales compensation plan, properly designed, has three motivational roles: 1 Providing a living wage 2 Adjust pay level to performance 3. Provide a mechanism for demonstrating the congruency between attaining companys goal and individual goal.

Requirements of a good sales compensation plan:

1. It provides a living wage in the form of secured income. 2. The plan fits with the rest of the motivational programme. 3. The plan adjusts pay to changes in performance. 4. It is economical to administer. 5. It helps in attaining the objective of the sales organization.

Designing a compensation package: Step 1:Defining a sales job

Reexamining the nature of sales job

Analysis sales department objective Checkout for sales volume objective The impact of sales related marketing policies are determined

Step 2: consider the companys general compensation structure

Most companies use job evaluation systems to determine the relative value of individual jobs. its purpose is to arrive at fair compensation relationships among jobs. There are four job evaluation methods: Non quantitative methods: Simple ranking Classification or grading

Quantitative methods: Point system Factor comparison

Step 3: consider the compensation patterns in community and industry

Because compensation levels for sales personal are related to external supply and demand factors, it is important to consider the prevailing compensation patterns in the community and industries.

Step 4: Determining compensation level

Management must determine the amount of compensation a sales person should receive on the average. The compensation level might be set through individual bargaining or an arbitrary judgment basis.

Step5: Provide for the various compensation elements

A sales compensation plan has as many as four basic elements:

1. A fixed element, either a salary or a drawing account to provide some stability of income. 2. A variable element (for example ,a commission ,bonus, or profit sharing arrangements) to serve as an incentive. 3.An element covering the fringe or plus factor such as paid vacations, sickness benefits etc. 4. An element providing for reimbursement of expenses or payment of expenses allowances.

Step 6: Consult the present sales force

Management should encourage sales personal to articulates their likes and dislikes about the current plan and to suggested changes in it. Criticism and suggestion are appraised relative to the plan s under consideration.

Step 7: Reduce tentative plan to writing and pre test it

For clarification and to eliminate inconsistencies the tentative plans put in writing. Then it is pretested. Pre tests of compensation plans are always mathematical and usually computerized. with the help of this we can know about the business fluctuations that the business condition is average, good and poor.

Step 8: Revise the plan

The plan is then revised to eliminate trouble spots or deficiencies. If alterations are extensive, the revised plan goes through further pre test and perhaps another pilot test. BUT IF CHANGES HAVE BEEN ONLY MINOR, FURTHER TESTING IS NOT NECESSARY.

Step9: Implement the plan and provide follow up At the time the new plan is implemented , it is explained to the sales personal. Management should convince them of its basic fairness and logic. All sales personal should receive copies of the new plan. Provision for follow up are made. Periodic checks provide evidence of the plans accomplishment and they uncover weakness needing corrections.