book

Sales Force Management, 13th Edition

Name: Sales Force Management, 13th Edition
ISBN: 9781000317510

by Mark W. Johnston, Greg W. Marshall

December 2020

Intermediate to advanced

498 pages

18h 11m

English

Routledge

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Cover
Title Page
Copyright Page
Dedication
Brief Contents
Table of Contents
About the Authors
Preface
Chapter 1: Introduction to Sales Management in the Twenty-First Century
Learning ObjectivesSales Management in the Twenty-First CenturyInnovation Fuels Success in Selling TodaySales Effectiveness Is Enhanced through TechnologyLeadership Is a Key Component in Sales Management SuccessSales Management Is a Global EndeavorEthics Underlies All Selling and Sales Management ActivitiesWhat Is Involved in Sales ManagementSelling ProcessSales Management ProcessEnvironmental Factors Impact Success in SellingExternal EnvironmentEconomic EnvironmentGlobal Legal and Political EnvironmentTechnological EnvironmentSocial and Cultural Environment: EthicsNatural EnvironmentInternal (Organizational) EnvironmentGoals, Objectives, and CultureHuman ResourcesFinancial ResourcesProduction and Supply Chain CapabilitiesService CapabilitiesResearch and Development (R&D) and Technological CapabilitiesSummary
Part One: Formulation of a Sales Program

Chapter 2: The Process of Selling and Buying
Learning ObjectivesDrivers of Change in Selling and Sales ManagementOverview of Selling as a CareerWhy Sales Jobs Are So RewardingKey Success Factors in SellingSelling ActivitiesTypes of Selling JobsSelling in Business-to-Consumer versus Business-to-Business MarketsClassifying Types of B2B Sales JobsStages in the Selling ProcessProspecting for CustomersOpening the RelationshipQualifying the ProspectPresenting the Sales MessageClosing the SaleServicing the AccountParticipants in the Organizational Buying Process—The Buying CenterSelling Centers and Buying CentersOrganizational Buying Decision StagesStage One: Anticipation or Recognition of a Problem or NeedStage Two: Determination and Description of the Characteristics and Quantity of the Needed Item(s)Stage Three: Search for and Qualification of Potential SuppliersStage Four: Acquisition of Proposals or BidsStage Five: Evaluation of Offerings and Selection of SuppliersStage Six: Selection of an Order RoutineStage Seven: Performance Evaluation and FeedbackThe Nature of Organizational Buying SituationsSummary
Chapter 3: Linking Strategies and the Sales Role in the Era of CRM and Data Analytics
Learning ObjectivesWhat Is Customer Relationship Management?From Mass Marketing to One-to-One MarketingCRM Process CycleToward a Relationship-Based EnterpriseCRM-Driven Data Analytics for Sales Manager Decision MakingThe Importance of Market OrientationHow Market Orientation Affects PerformanceInternal Partnering to Create a Market OrientationThe Process of Strategy DevelopmentCompany Mission and GoalsSBU StrategyThe Importance of Integrating Sales with Other Business FunctionsPersonal Selling’s Role in Marketing StrategyRole of the RelationshipPersonal Selling in the Relationship EraExploration StageExpansion StageCommitment StagePersonal Selling’s Role in the Marketing Communication MixAdvantages and Disadvantages of Selling in Marketing CommunicationCompany Resources, Goals, and Marketing StrategyCharacteristics of the Target MarketProduct CharacteristicsDistribution PracticesPricing PoliciesComputerized Ordering and Customer AlliancesImproving Customer Satisfaction and Loyalty through FeedbackMajor Account TeamsSummary
Chapter 4: Organizing the Sales Effort
Learning ObjectivesThe Increasing Importance of Sales Organization DecisionsPurposes of Sales OrganizationDivision and Specialization of LaborStability and Continuity of Organizational PerformanceCoordination and IntegrationHorizontal Structure of the Sales ForceDeciding on a Company Sales Force or Independent AgentsGeographic OrganizationProduct OrganizationOrganization by Customer Type or MarketsOrganization by Selling FunctionThe Role of TelemarketingOrganizing to Service Key AccountsTeam SellingMultilevel SellingCo-marketing AlliancesLogistical Alliances and Computerized OrderingVertical Structure of the Sales OrganizationSelling ResponsibilitiesSales-Related FunctionsThe Impact of New TechnologiesStaff Support and OutsourcingAdditional Sales Organizational IssuesSummary
Chapter 5: The Strategic Role of Information in Sales Management
Learning ObjectivesUsing Information in Managerial Decision Making and PlanningIntroduction to Market Opportunity AnalysisMethods of Sales ForecastingSubjective Methods of ForecastingObjective Methods of ForecastingChoosing a Forecasting MethodDeveloping Territory EstimatesPurposes and Characteristics of Sales QuotasPurposes of QuotasCharacteristics of a Good QuotaSetting QuotasTypes of QuotasQuota LevelDetermining Sales Force SizeBreakdown MethodWorkload MethodIncremental MethodDesigning Sales TerritoriesStages in Sales Territory DesignSales Analysis for Managerial Decision MakingType of Evaluation SystemSources of Information for Sales AnalysisType of Aggregation of Information to Be Used in Sales AnalysisIllustration of a Hierarchical Sales AnalysisSummary
Part Two: Implementation of the Sales Program
Chapter 6: Salesperson Performance: Behavior, Role Perceptions, and Satisfaction
Learning ObjectivesUnderstanding Salesperson Performance—Why Is It Important for Sales Management?The ModelThe Role Perceptions ComponentThe Aptitude ComponentThe Skill-Level ComponentThe Motivation ComponentThe Personal, Organizational, and Environmental Variables ComponentRewardsSatisfactionThe Salesperson’s Role PerceptionsStages in Developing the Salesperson’s RoleStage 1: Role Partners Communicate ExpectationsStage 2: Salespeople Develop PerceptionsStage 3: Salespeople Convert Perceptions into BehaviorsThe Salesperson’s Role Is VulnerableBoundary PositionLarge Role SetInnovative RoleRole Conflict and AmbiguityCommon Expectations and Key Areas of Conflict and AmbiguityConsequences of Conflict and AmbiguityManaging Conflict and Ambiguity in a SalespersonRole AccuracyNature of Role AccuracySummary
Chapter 7: Salesperson Performance: Motivating the Sales Force
Learning ObjectivesThe Psychological Process of MotivationMajor Components of the ModelExpectancies—Perceived Links between Effort and PerformanceInstrumentalities—Perceived Links between Performance and RewardsValences for RewardsCan the Motivation Model Predict Salesperson Effort and Performance?The Impact of a Salesperson’s Personal Characteristics on MotivationSatisfactionDemographic CharacteristicsJob ExperiencePsychological TraitsPerformance AttributionsManagement ImplicationsCareer Stages and Salesperson MotivationCareer StagesThe Problem of the Plateaued SalespersonThe Impact of Environmental Conditions on MotivationThe Impact of Organizational Variables on MotivationSupervisory Variables and LeadershipIncentive and Compensation PoliciesSummary
Chapter 8: Personal Characteristics and Sales Aptitude: Criteria for Selecting Salespeople
Learning ObjectivesAre Good Salespeople Born or Made? The Determinants of Successful Sales PerformanceA Review of Past ResearchThe Costs of Inappropriate Selection StandardsCharacteristics of Successful SalespeopleCharacteristics Sales Managers Look ForResearch Concerning the Personal Characteristics of Successful SalespeopleOverview of FindingsJob-Specific Determinants of Good Sales PerformanceSelling Different Types of Products and ServicesDifferent Types of Sales JobsImplications for Sales ManagementSummary
Chapter 9: Sales Force Recruitment and Selection
Learning ObjectivesRecruitment and Selection IssuesWho Is Responsible for Recruiting and Selecting Salespeople?Job Analysis and Determination of Selection CriteriaWho Conducts the Analysis and Prepares the Description?Content of the Job DescriptionDetermining Job Qualifications and Selection CriteriaMethods for Deciding on Selection CriteriaRecruiting ApplicantsExternal SourcesSelection ProceduresApplication BlanksPersonal InterviewsPhysical ExaminationsTestsConcerns about the Use of TestsGuidelines for the Appropriate Use of TestsEqual Employment Opportunity Requirements in Selecting SalespeopleRequirements for TestsRequirements for Interviews and Application BlanksSummary
Chapter 10: Sales Training: Objectives, Techniques, and Evaluation
Learning ObjectivesIssues in Sales TrainingObjectives of Sales TrainingIncrease ProductivityImprove MoraleLower TurnoverImprove Customer RelationsImprove Selling SkillsThe Development of Sales Training ProgramsCreating Credibility in Sales TrainingTraining New Sales RecruitsTraining Experienced Sales PersonnelSales Training TopicsProduct KnowledgeMarket/Industry OrientationCompany OrientationTime and Territory ManagementLegal/Ethical IssuesTechnologySpecialized Training TopicsSales Training MethodsOn-the-Job TrainingClassroom TrainingElectronic Training MethodsMeasuring the Costs and Benefits of Sales TrainingSales Training CostsMeasurement CriteriaMeasuring Broad BenefitsMeasuring Specific BenefitsRecent Trends in Sales Training EvaluationSummary
Chapter 11: Salesperson Compensation and Incentives
Learning ObjectivesOverview of Compensation and IncentivesStraight Salary, Straight Commission, and Combination PlansStraight SalaryStraight CommissionCombination PlansSteps to Executing the Compensation PlanSales ContestsContest ObjectivesContest ThemesProbability of WinningTypes of Contest RewardsContest Promotion and Follow-throughCriticism of Sales ContestsNonfinancial RewardsRecognition ProgramsExpense AccountsDirect Reimbursement PlansLimited Reimbursement PlansNo Reimbursement PlansMaking Compensation and Incentive Programs WorkAssessing the Relationship Selling ObjectivesDetermining Which Aspects of Job Performance to RewardDeciding on the Most Appropriate Mix and Level of CompensationDangers of Paying Salespeople Too MuchDangers of Paying Salespeople Too LittleChanging the Compensation PlanSummary
Part Three: Evaluation and Control of the Sales Program
Chapter 12: Cost Analysis
Learning ObjectivesCost Analysis DevelopmentFull Cost versus Contribution MarginABC AccountingProcedureThe Process IllustratedDirect SellingAdvertisingWarehousing and ShippingOrder ProcessingTransportationPromise and ProblemsReturn of Assets ManagedSummary
Chapter 13: Evaluating Salesperson Performance
Learning ObjectivesPerformance versus EffectivenessObjective MeasuresOutput MeasuresInput MeasuresRatio MeasuresSummary of Objective MeasuresSubjective MeasuresForms Used for Subjective MeasurementAvoiding Errors in Performance EvaluationUsing a BARS System360-Degree Feedback in Performance EvaluationSummary
Endnotes
Index

Content preview from Sales Force Management, 13th Edition

CHAPTER 11 Salesperson Compensation and Incentives

LEARNING OBJECTIVES

This chapter provides an overview of key issues related to compensating salespeople. The key issues to understand involve the types of compensation available (especially incentive forms of compensation), and when each might be most effectively offered.

After reading this chapter, you should be able to:

Discuss the advantages and limitations of straight salary, straight commission, and combination plans.
Explain how and why a bonus component to compensation might be used as an incentive.
Understand the effective use of sales contests, as well as the potential pitfalls of their use.
Identify key nonfinancial rewards, and how and why they might be important.
Recognize key ...

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Sales Force Management, 13th Edition

by Mark W. Johnston, Greg W. Marshall

CHAPTER 11

Salesperson Compensation and Incentives

LEARNING OBJECTIVES

Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.