book

Sales Force Management, 14th Edition

Name: Sales Force Management, 14th Edition
ISBN: 9781040301319

by Mark W. Johnston, Greg W. Marshall, Jessica L. Ogilvie

March 2025

Intermediate to advanced

500 pages

18h 42m

English

Routledge

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Cover Page
Half-Title Page
Title Page
Copyright Page
Dedication Page
Brief Contents
Detailed Contents
About the Authors
Preface
Chapter 1 Introduction to Sales Management and Leadership Strategy
Learning ObjectivesSales Management and Leadership TodayInnovation and Strategic Partnerships Fuel Success in Selling TodaySales Effectiveness Is Enhanced through TechnologyLeadership Is a Key Component in Sales Management SuccessSales Management Is a Global EndeavorPsychological Safety and the Importance of Ethics and Trust in Sales ManagementWhat Is Involved in Sales ManagementSelling ProcessSales Management ProcessEnvironmental Factors Impact Success in SellingExternal EnvironmentEconomic EnvironmentGlobal Legal and Political EnvironmentTechnological EnvironmentSocial and Cultural Environment: The Role of Ethics and Cultural IntelligenceNatural 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 CycleSocial CRM—Leveraging Digital Connectivity for Relationship ManagementToward 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 FunctionsProfessional Selling’s Role in Marketing StrategyRole of the RelationshipProfessional Selling in the Relationship EraExploration StageExpansion StageCommitment StageProfessional 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 Rise of Digital Cold Calling ToolsOrganizing to Service Key AccountsTeam SellingMultilevel SellingCo-marketing AlliancesLogistical AlliancesVertical Structure of the Sales OrganizationSelling ResponsibilitiesSales-Related FunctionsStaff 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 ForecastingDeveloping Territory EstimatesPurposes and Characteristics of Sales QuotasPurposes of QuotasCharacteristics of a Good QuotaSetting Quotas with the Help of AI and MLTypes of QuotasDetermining 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 RewardsThe Role of Information TransparencyElevating Recognition Programs with Enhanced TransparencyMaking 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 ObjectivesUnderstanding the Cost of Sales Is Critical to Evaluating Sales SuccessCost 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 SystemImpacts of Technology on Performance EvaluationsImpacts on Performance EvaluationImpacts on the Role of Coaching in Sales Management Roles360-Degree Feedback in Performance EvaluationSummary
Endnotes
Index

Content preview from Sales Force Management, 14th Edition

CHAPTER 11Salesperson Compensation and Incentives

DOI: 10.4324/9781032692807-13

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 ...

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Sales Force Management, 14th Edition

by Mark W. Johnston, Greg W. Marshall, Jessica L. Ogilvie

CHAPTER 11Salesperson 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.