Chapter 11

1. Leadership of a Sales Force Chapter 11

2. Learning Objectives • To understand leadership in sales force • Leadership characteristics and skills • Leadership styles • Outcome of effective leaders

3. (Fig. 11-1) Leadership Effectiveness Personal characteristics Leadership style (the leader behaviors) Leadership effectiveness Managerial skills S I T U A T I O N Leadership involves those activities performed by sales managers to influence salespeople to achieve goals that contribute to the success of the entire organization. Leadership effectiveness is based on a combination of personal characteristics, managerial skills and behavior and the situation.

4. Leadership Characteristics and Skills • Personal Characteristics • Self-Confidence –believe in themselves • Initiative – welcome change and create change • Energy – high energy levels – wide variety of activities • Creativity – solutions to problem • Maturity – interested in well-being of the organization • Managerial Skills • Problem-solving skills – formulate and implement solutions • Interpersonal skills – know how to treat each salesperson as an individual. • Communication skills –organizing, training and supervising all involve communications. The sales manager continuously transmits info. from upper management to the sales force and vice-versa. • Persuasive skills – persuade people to do what they want instead of threatening.

5. Two Leadership Styles • Transactional Leadership – refers to those supervisory activities regarding the day-to-day operation and control of the sales force = supervision. • A reactive style of leadership centers on the exchange or give-and-take between the sales manager and salesperson. • Provide verbal feedback in the form of rewards and punishment. • Exhibit task orientation – a short-term focus on getting the job done. • Directly supervision –check what their plans for the day. • Indirect supervision – auditing expense account and appraising sales performance.

6. Two Leadership Styles • Transformational Leadership • Transforms the basic values, beliefs, and attitudes of followers such that they are willing to perform at levels above and beyond expectations. Individuals exhibiting this styles are usually referred to as charismatic leaders. Make a meaningful difference in the performance of their followers. • Articulating a vision – create a common, compelling vision for guiding the future of their companies. They describe to subordinates an exciting, challenging future for them and the company. • Fostering group goals – promoting cooperation, encouraging followers to work together toward a common goal. Critical to build teamwork through identifying the goal of the group. • Role modeling – leading by example. Sales managers present a professional image through appropriate dress, punctuality and effective performance. • Providing individualized support – genuinely care about and respect their subordinates.

7. Figure 11-2Critical Leader Behaviors for Different Situations

8. Tools and Techniques of Leadership • Personal contact – sales managers visits sales reps on the job and tries to resolve the problems. Assisting in selling difficulties. • Sales reports – provide records for monitoring and evaluating sales rep’s activity. Include no. of calls made, orders take, miles travel, new prospects called. Use CRM to quote prices, write contracts, track orders, provide product and marketing information. • Telecommunications - Internet, satellites, cell phones and lap top, I pad. • Better customer and industry information – complete info. • Selling assistance – e-libraries • Sales support- track order accurately • Reporting responsibilities – submit call plans and expense reports easily • Communication – constant communication with reps • Printed aids – sales manuals, newsletter allow to interact with sales force. • Meetings – explain new procedures, policies and programs to sales force. • Indirect supervisory aids • Compensation plans – encourages reps to maximize earnings • Territories – what they are responsible for • Quotas – guide sales force into desired channels • Expense accounts – guide sales force by limiting the amount reps can spend on certain activities • Sales analysis procedures – management can evaluate the performance of each salesperson

9. Outcomes of Effective Leadership • Well-Trained Salespeople – can develop an inexperienced worker to productive salespeople. • Trust among Salespeople –genuinely care of the subordinates lead to trust among salespeople and managers. • Citizenship Behaviors • Voluntary behaviors important to the success of the firm (e.g., when one rep gives encouragement to a fellow, struggling rep, tolerating problems without complaining) • Better Performance • Sales Force Morale • A sense of common purpose and a belief among members that group goals can be attained.

10. Job Satisfaction • Sometimes called individual morale • An individual salesperson’s emotional and evaluative feelings toward various dimensions of the job, including feelings toward… • Pay • Promotions • Job Security • Benefits • Co-workers • The Sales Manager (or Leader) • Individual salespeople must first each be satisfied with his or her job in order for high group morale to emerge.

11. Problems Encountered in Leadership • Poor performance • Substance abuse • Cheating on expense accounts • Engaging in unethical behavior • Third-party sexual harassment

12. Third-party Sexual Harassment • Harassment by someone outside the firm • Common in sales • When the customer harasses the salesperson • Sales managers must be proactive in creating an environment that does not tolerate harassment • The selling firm is liable if the sales manager should have known about it