Sales Management Interactive Training Experience

1. SalesManagementInteractiveTrainingExperience

2. The Simulation Is designed to allow participants to: • investigate • experience the process of Sales Management This involves making decisions covering: • staff selection • training and development • territory management It uses a computer model to simulate the impact of these decisions.

3. The Process Preparation • familiarisation • define responsibilities • set objectives • decide strategies Decision Making • submit decisions • simulate impact • analyse results • recruit sales people Review & Debriefing • make sales directors’ report • review results

4. The Business Situation • The senior sales management of a new territory that consists of about 100 areas each with different potential • Selling a range of industrial consumables that will be bought on a regular basis • Need to hire and deploy a sales force and then manage them

5. Decisions Three types of decision: • territory management • sales force changes • territory changes • training course changes • special reporting • staff to fire • advertising for staff • recruiting staff

6. Territory Decisions (1) Sales Force Changes • increase salary • change home base • change region • dual call days • training course • optional reports Each sales person is different and is identified by a unique number

7. Territory Decisions (2) Territory Allocation/Deallocation • Sales person’s territory can consist of one or more area. • Each area is numbered • It is not necessary to allocate all areas. • When deciding, you should consider: • potential • number of customers • travel • Etc.

8. Territory Decisions (3) Training can either be formal (attending a course) or informal (dual calling with the region manager). Training is concerned with improving • selling skills • product knowledge • customer/industry knowledge For courses you control duration and the mix of skills & knowledge training.

9. Territory Decisions (4) Regional Organisation • There can be up to four regions (lettered A-D) • Each has a Regional Manager who can spend up to twenty days dual calling with his or her sales people • Each sales person must be allocated to a region • Several reports are available detailing results for individual regions • You may wish to allocate responsibility for separate regions to separate people

10. Recruitment Process Advertise for Staff • area for advertisement • advertisement size • salary range • skills & knowledge needs Interview Results • current salary, employer & home base • perceived skills, knowledge & personality Offer Job • salary • home base

11. Results Each quarter you are provided with reports to help you evaluate your decisions and your sales force. The standard reports are: • Financial Results • Territory & Regional Summaries • Dual Call Commentary • Training Summary • Resignations And optional reports thus: • Area Summary • Area Research • Sales Workload • Sales Call Analysis

12. Financial Results On an investment centre basis and so shows: Sales Revenue Gross Profit Selling Costs Servicing Costs Training Costs Reporting Costs Management Costs Sickness Costs Recruiting Costs Contribution Working Capital Capital Charge Residual Profit Return on Capital • For the • whole sales unit • for each region • for each sales person • for each area • As appropriate

13. Territory & Organisation These reports provide information about the regions and for each region’s sales people as follows: • Salary • Miles Travelled • Selling Days • Home Bases • Territory Sizes

14. Dual Call Comments This report shows the regional manager’s perceptions about the sales people they dual called with as follows: • The number of day spent with the sales person • Perceptions about product & customer knowledge, selling skills and morale. These perceptions can be: V. Poor, Poor, Average, Good & V. Good And their accuracy improves as the number of dual call days increase.

15. Training Summary This report provides information about the current range of courses showing: • Duration • The mix of product & customer knowledge and selling skills • The number of sales people attending the course • The cost of the course

16. Optional Reports These either take sales force time or cost money: • Area Summary provides financial information about each of a sales person’s areas. • Area Research provides information about the number of competitors, penetration & share for served areas • Area Potential provides information about the areas where the company has no sales presence • Sales Workload provides at all levels information about total calls, total customers, the time spent selling. On courses, preparing reports or off sick etc. • Sales Call Analysis can be for al region’s sales people and shows the number of calls on current & new customer, revenue/call, gross profit/call, contribution/call and miles/call Besides these reports you may ask for additional information.

17. Observations • it takes time to understand • but the business still must be run • so your decisions will not be perfect • time will be a constraint • but, by the end you should be just in command of your business! • your business competencies will be challenged • we are here to guide you • and you should have fun.

18. Sales Management Interactive Training Experience