{"id":141,"date":"2018-10-30T11:42:35","date_gmt":"2018-10-30T11:42:35","guid":{"rendered":"http:\/\/mgmtp14.epgpbooks.inflibnet.ac.in\/?post_type=chapter&#038;p=141"},"modified":"2018-10-30T11:59:19","modified_gmt":"2018-10-30T11:59:19","slug":"management-of-sales-force","status":"publish","type":"chapter","link":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp14\/chapter\/management-of-sales-force\/","title":{"rendered":"Management of Sales Force"},"content":{"raw":"<div>\r\n\r\n<strong>\u00a0 \u00a0 1.\u00a0<\/strong><strong>Learning Outcome:<\/strong>\r\n\r\nAfter completing this module, the students will be able to:\r\n<ul>\r\n \t<li>Understand the concept of sales force management<\/li>\r\n \t<li>Explain the functions of sales force management<\/li>\r\n \t<li>Describe the selection process of salesmen<\/li>\r\n<\/ul>\r\n<strong>\u00a0 \u00a0 2.\u00a0<\/strong><strong>Introduction<\/strong>\r\n\r\n<strong>\u00a0<\/strong>\r\n<p style=\"text-align: justify\">The essence of marketing is creating, maintaining and developing demand. Thus, the role of effective selling and sales force cannot be undermined. The organisations grow due to the hard work of sales force which deals with the customers and tries to secure more and more demand for organisations\u2019 products or services. Therefore, there is a need to manage the sales force effectively for the long term survival of organisations.<\/p>\r\n&nbsp;\r\n\r\n<strong>3.\u00a0<\/strong><strong>Meaning<\/strong>\r\n\r\n&nbsp;\r\n<p style=\"text-align: justify\">In an organisation\/firm, persons engaged in personal selling operations are called salesmen, salespeople or sales force. Personal selling requires face to face interaction between customer and salesman and involves use of various methods of selling such as door to door selling, selling across the table, selling at counter etc. In some organisations (especially dealing in industrial goods), majority of their sales force is engaged in field or door to door selling.<\/p>\r\n<strong>\u00a0<\/strong>\r\n<p style=\"text-align: justify\">Sales force management relates to planning, organizing, directing and controlling of personal selling activities of an organisation which also includes recruiting, selecting, training, assigning, routing, scheduling, compensating, supervising and motivating as these tasks are applied to sales force.<\/p>\r\n<strong>\u00a0<\/strong>\r\n\r\n<strong>4.\u00a0<\/strong><strong>Functions or Process of Sales force Management<\/strong>\r\n\r\n&nbsp;\r\n<p style=\"text-align: justify\">Sales force is an invaluable asset of an organisation. Organisation\u2019s sales and profits are dependent on the efficiency of salesmen. So, their efficient management is the major task of sales\/ marketing management. Effective sales force management includes various functions which are explained as under:<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">4.1 Setting selling objectives<\/strong><span style=\"text-align: initial;font-size: 1em\">:- First of all, various selling objectives are set for individual salesman within the framework of sales objectives i.e. objectives set for <\/span>sales<span style=\"text-align: initial;font-size: 1em\">\/marketing department as a whole. Apart from setting direct selling objectives like sales volume, expense and profitability for each salesman, other objectives are also set in relation to their selling and non-selling functions such as number of calls to be made per day\/ week, order size, average cost per call, number of orders to be generated per day\/ week, number of middlemen\u2019s salespeople to be trained per day etc. These objectives will act as standards for evaluating <\/span>performance<span style=\"text-align: initial;font-size: 1em\"> of salesmen and pinpointing the weaknesses in their performance.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">4.2 Determining size of sales force<\/strong><span style=\"text-align: initial;font-size: 1em\">:- There is a need to determine the number of salesmen required to accomplish sales objectives. As the management of sales force involves cost, therefore, such size of <\/span>sales<span style=\"text-align: initial;font-size: 1em\"> force is determined which will help in increasing sales volume and profit on one <\/span>hand,<span style=\"text-align: initial;font-size: 1em\"> and reducing associated costs on the other hand. In determining <\/span>optimum<span style=\"text-align: initial;font-size: 1em\"> size of sales force, past experience, managerial <\/span>judgement and<span style=\"text-align: initial;font-size: 1em\"> the practice followed in industry play an important role. However, some models are available which can help marketing executives in deciding <\/span>right<span style=\"text-align: initial;font-size: 1em\"> size. These models are explained as follows:<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">a)\u00a0<\/span><em style=\"text-align: initial;font-size: 1em\">Workload model<\/em><span style=\"text-align: initial;font-size: 1em\">: This model was propounded by W. J. Talley who believed that all salesmen should have <\/span>equal<span style=\"text-align: initial;font-size: 1em\"> workload. As per this model, management should first determine the total workload involved in covering the firm\u2019s entire market. Then, it should divide this estimated total workload by the workload that an individual salesman is required to handle. This will determine the number of salesmen needed. The workload model involves <\/span>following<span style=\"text-align: initial;font-size: 1em\"> six steps:<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(i) Divide and group the present and potential customers as per their annual sales volume. For example, if there are 800 present and potential customers, they can be classified by sales volume potential as under:<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Class A\u00a0 \u00a0\u2013\u00a0 \u00a0large\u00a0 \u00a0 \u00a0 \u00a0 \u00a0100 accounts<\/span><\/p>\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Class B\u00a0 \u00a0\u2013\u00a0 \u00a0medium\u00a0 \u00a0200 accounts<\/span><\/p>\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Class C\u00a0 \u00a0\u2013\u00a0 \u00a0small\u00a0 \u00a0 \u00a0 \u00a0 500 accounts<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(ii) Decide the length of time per sales call and desired call frequencies (number of calls) for each class of customers on the basis of sales personnel\u2019s opinions, personal <\/span>judgement<span style=\"text-align: initial;font-size: 1em\"> or actual time studies. Continuing with <\/span>above<span style=\"text-align: initial;font-size: 1em\"> example, <\/span>annual<span style=\"text-align: initial;font-size: 1em\"> time required for each class will be calculated as follows:<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Class <\/span>A\u00a0 \u00a0 :<span style=\"text-align: initial;font-size: 1em\">\u00a0 \u00a0 60 minutes per call\u00a0 \u00a0 \u00d7\u00a0 \u00a0 50 calls per year\u00a0 \u00a0 =\u00a0 \u00a0 50 hrs per year<\/span><\/p>\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Class <\/span>B\u00a0 \u00a0 :<span style=\"text-align: initial;font-size: 1em\">\u00a0 \u00a0 30 minutes per call\u00a0 \u00a0 \u00d7\u00a0 \u00a0 26 calls per year\u00a0 \u00a0 =\u00a0 \u00a0 13 hrs per year<\/span><\/p>\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Class <\/span>C\u00a0 \u00a0 :<span style=\"text-align: initial;font-size: 1em\">\u00a0 \u00a0 15 minutes per call\u00a0 \u00a0 \u00a0\u00d7\u00a0 \u00a0 12 calls per year\u00a0 \u00a0 \u00a0=\u00a0 \u00a0 3 hrs per year<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(iii) Calculate total workload required to cover <\/span>whole<span style=\"text-align: initial;font-size: 1em\"> market<\/span><\/p>\r\n\r\n<\/div>\r\n<div>\r\n<table style=\"height: 176px\" width=\"527\">\r\n<tbody>\r\n<tr style=\"height: 14px\">\r\n<td style=\"height: 14px;width: 72.0625px\">CLASS<\/td>\r\n<td style=\"height: 14px;width: 287.063px;text-align: left\">ACCOUNTS\u00d7CALLS HRS PER YEAR=<\/td>\r\n<td style=\"height: 14px;width: 125.063px\">WORKLOAD<\/td>\r\n<\/tr>\r\n<tr style=\"height: 14px\">\r\n<td style=\"height: 14px;width: 72.0625px\">Class A<\/td>\r\n<td style=\"height: 14px;width: 287.063px\">100\u00d750=<\/td>\r\n<td style=\"height: 14px;width: 125.063px\">5000hrs<\/td>\r\n<\/tr>\r\n<tr style=\"height: 14px\">\r\n<td style=\"height: 14px;width: 72.0625px\">Class B<\/td>\r\n<td style=\"height: 14px;width: 287.063px\">200\u00d713=<\/td>\r\n<td style=\"height: 14px;width: 125.063px\">2600hrs<\/td>\r\n<\/tr>\r\n<tr style=\"height: 14px\">\r\n<td style=\"height: 14px;width: 72.0625px\">Class C<\/td>\r\n<td style=\"height: 14px;width: 287.063px\">500\u00d73=<\/td>\r\n<td style=\"height: 14px;width: 125.063px\">1500hrs<\/td>\r\n<\/tr>\r\n<tr style=\"height: 14px\">\r\n<td style=\"height: 14px;width: 72.0625px\"><\/td>\r\n<td style=\"height: 14px;width: 287.063px\">TOTAL<\/td>\r\n<td style=\"height: 14px;width: 125.063px\">9100hrs<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n&nbsp;\r\n<p style=\"text-align: justify\">(iv) Decide the total work time available per salesman. It may be decided by the management that each salesman will work 40hrs per week and 48weeks per year. Therefore, total work time available for each salesman will be<\/p>\r\n40hrs \u00d7 48weeks = 1920hrs per year\r\n\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(v) Divide the total work time of salesman as per tasks, he is required to perform. For example, management may specify that salesperson should devote his time as follows:<\/span><\/p>\r\n\r\n<\/div>\r\n<div>\r\n<table>\r\n<tbody>\r\n<tr>\r\n<td>Selling tasks<\/td>\r\n<td>55%<\/td>\r\n<td>1056hrs<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Non-selling tasks<\/td>\r\n<td>25%<\/td>\r\n<td>480hrs<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Travelling<\/td>\r\n<td>20%<\/td>\r\n<td>384hrs<\/td>\r\n<\/tr>\r\n<tr>\r\n<td><\/td>\r\n<td>TOTAL =<\/td>\r\n<td>1920hrs<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n&nbsp;\r\n<p style=\"text-align: justify\">(vi) Determine the number of salesmen required. This will be done by dividing the total work load as calculated in step (iii) by total selling time available for each salesman i.e.<\/p>\r\n&nbsp;\r\n\r\n9100 hrs \u00f7 1056 hrs = 8.617 or 9 salesmen\r\n\r\n&nbsp;\r\n<p style=\"text-align: justify\">This method is easy to understand and quite popular among sales\/marketing executives. But this method has certain shortcomings such as (i) it does not consider profit element and (ii) it assumes that each salesman is equally efficient which is practically not possible.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\">b)\u00a0<em>Marginal Model<\/em>: This is another model given by W. J. Semlow to determine the optimum size of sales force. As per this model, a firm can go on increasing the number of salesmen till additional gross margin on sales volume that each additional salesman is expected to produce is greater than the total cost of maintaining an additional salesman.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\">According to Semlow, this method is easy to apply as necessary information is available from accounting records. But, it is sometimes difficult to determine the incremental sales that additional salesperson could be expected to generate especially in case when increase in number of salespeople does not create a proportional increase in sales.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong>4.3 Job Analysis : <\/strong>The management has to carry out job analysis to develop job description and job specification. Job description provides details about the job i.e. its nature, content and duties of job-holder. The job description for selling job specifies (i) job duties (ii) extent of responsibility (iii)\u00a0 job conditions (iv) relationship with superiors, supervisors and peers, (v) type of customer and sales contact involved.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\">Job specification explains the kind of person required for the job in terms of educational qualification, physical strengths and personal attributes. Apart from educational qualification, firms usually look for self-confidence, empathy i.e. ability to understand another person\u2019s problems and wants and ego-drive i.e. desire to excel and convince the prospect.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\">Job description and job specification help in effective recruitment and selection.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong>4.4 Recruitment: <\/strong>Recruitment means searching for prospective employees (salesmen) and stimulating them to apply for job. Effective recruitment increases the number of applicants which enables management to make a better selection of salesmen. Recruitment and selection are usually the responsibilities of personnel department but many a times, marketing executives are called upon either to take a lead in this regard or assist personnel department in this task. Recruitment can be done from internal sources or from external sources. Present employees may recommend the name of certain persons known to them. Transfers can be initiated from one branch to another to adjust the requirement of salesmen.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\">Firms may contact employment exchanges, recruitment agencies, educational or training institutes. Reputed firms\/organisations usually have unsolicited applicants i.e. the candidates who aspire to work in these firms. The management keeps record of all such applicants. They can be called upon if need arises.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong>4.5\u00a0Selection : <\/strong>Selection means appointing a suitable person as per the requirements of job. Selection is considered as negative process as it involves the appointment of promising candidate and refusing the unpromising one. The selection of right salesmen is very important\u00a0<span style=\"text-align: initial;font-size: 1em\">as the improper selection will lead to poor sales volume, less profit generation, high salesmen turnover, inadequate compensation and dissatisfaction among salesmen.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">The selection procedure followed by the firm involves certain steps which are:<\/span><\/p>\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(i)\u00a0<\/span><em style=\"text-align: initial;font-size: 1em\">Receiving and scrutiny of applications: <\/em>The applications of various candidates are received and scrutinized to segregate applications which do not fulfil the basic requirements like education or height etc.<\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(ii)\u00a0<\/span><em style=\"text-align: initial;font-size: 1em\">Getting application blanks filled<\/em><span style=\"text-align: initial;font-size: 1em\">: These are the printed application forms which are to be filled in by candidates who are eligible and have submitted simple applications. These forms help in getting some standardized information about the candidate like personal history, educational qualification, salary expected, experience, reasons for leaving <\/span>previous<span style=\"text-align: initial;font-size: 1em\"> job, references etc.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(iii)\u00a0<\/span><em style=\"text-align: initial;font-size: 1em\">Administering tests<\/em><span style=\"text-align: initial;font-size: 1em\">: The tests are applied to develop an in-depth understanding <\/span>about<span style=\"text-align: initial;font-size: 1em\"> personality traits and attributes of the candidates. Various psychological tests which are used for selection of salespeople include Achievement Tests, Intelligence Tests, Personality Tests <\/span>and<span style=\"text-align: initial;font-size: 1em\"> Interest Tests. Achievement Tests measure skill or training which the candidate possesses at the time of testing. Intelligence Tests measure the intelligence quotient of the applicants. The capability of a person in dealing with new problems can be understood through these tests. Personality Tests are designed to know <\/span>candidate\u2019s<span style=\"text-align: initial;font-size: 1em\"> overall appearance, temperament, <\/span>behaviour<span style=\"text-align: initial;font-size: 1em\">, initiative, confidence, belief in team work etc. Interest Tests attempt to find out the liking and disliking of the candidate so that job of his liking can be assigned if he is selected.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(iv)\u00a0<\/span><em style=\"text-align: initial;font-size: 1em\">Interviewing<\/em><span style=\"text-align: initial;font-size: 1em\">: Interviewing involves personal interaction between selection committee or interviewer and candidate (interviewee) in <\/span>formal<span style=\"text-align: initial;font-size: 1em\"> or informal setting. <\/span>Interview<span style=\"text-align: initial;font-size: 1em\"> can be structured, semi-structured, unstructured or stress interview. <\/span>Interview<span style=\"text-align: initial;font-size: 1em\"> helps in cross checking the information supplied in application forms and gathering other necessary information about <\/span>candidate<span style=\"text-align: initial;font-size: 1em\">. <\/span>Interview<span style=\"text-align: initial;font-size: 1em\"> is an important part of <\/span>selection<span style=\"text-align: initial;font-size: 1em\"> process. It is aimed at discovering \u2018salesman\u2019 in the interviewee which is otherwise not possible. <\/span>Moreover<span style=\"text-align: initial;font-size: 1em\"> the candidate gets a chance to know more about the firm and the job.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(v)\u00a0<\/span><em style=\"text-align: initial;font-size: 1em\">Medical Examination<\/em><span style=\"text-align: initial;font-size: 1em\">: The candidate after passing through interview may require to go for medical examination and submit physical fitness certificate for ensuring his physical ability to carry out a hard and stressful selling job.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(vi)\u00a0<\/span><em style=\"text-align: initial;font-size: 1em\">Selection<\/em><span style=\"text-align: initial;font-size: 1em\">: The candidates who have crossed all the hurdles, they are issued appointment letters which explain their position, remuneration and other terms and conditions of <\/span>job<span style=\"text-align: initial;font-size: 1em\">. However, the contractual relations are established with the selected candidates when they submit joining letters.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">4.6\u00a0Training <\/strong>:<span style=\"text-align: initial;font-size: 1em\"> Training is a systematic process of enhancing skill and knowledge of people for a specific purpose. Good salespeople are not born rather they are made by imparting training through <\/span>well organized<span style=\"text-align: initial;font-size: 1em\"> training programmes. Newly selected salesmen should be imparted training before they take up their selling jobs. Trained salesmen can exercise <\/span>self control<span style=\"text-align: initial;font-size: 1em\">. They are able to secure orders quickly. Thus, training helps in increasing sales, profits and efficiency of <\/span>salesman<span style=\"text-align: initial;font-size: 1em\">. It improves customer relations and reduces salesmen turnover.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">The sales force training programme focuses on imparting knowledge about <\/span>product<span style=\"text-align: initial;font-size: 1em\">, market, company\/firm, and various selling techniques. The trainees (salesmen) are made aware of <\/span>product<span style=\"text-align: initial;font-size: 1em\"> of the firm, its uses, strengths <\/span>and<span style=\"text-align: initial;font-size: 1em\"> weaknesses in comparison to products of rival firms. It enables salesmen to effectively demonstrate the product and handling queries of customers during <\/span>actual<span style=\"text-align: initial;font-size: 1em\"> selling of products. Salesmen are also provided knowledge about markets of their firm so as to have a better understanding of customers\u2019 demographic profile and <\/span>behaviour<span style=\"text-align: initial;font-size: 1em\">. The information about <\/span>firm\u2019s<span style=\"text-align: initial;font-size: 1em\"> history, marketing policies, marketing strategies, order processes, personnel policies is also provided to salesmen during training. It helps in projecting a better image of the firm and boosting salesmen\u2019s morale. It also enables salesmen to follow proper\u00a0<\/span><span style=\"text-align: initial;font-size: 1em\">policies during their field work. The knowledge and instructions about selling techniques are provided to the trainees. These help them to meet challenges in an effective manner in the field of sales.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Training can be imparted to a group of salesmen through various methods such as lecture, discussion, role playing or sensitivity training. It can be imparted to salesmen at an individual level through on the job training method or programmed instruction method. The organizations usually use a combination of training methods rather than a single method to improve the effectiveness of training.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Through various training methods, salesmen are provided knowledge, skill <\/span>and<span style=\"text-align: initial;font-size: 1em\"> attitude training. Sales knowledge training (knowledge of product, company, market and selling techniques) is imparted through lectures, conferences, discussions, programmed instructions <\/span>and<span style=\"text-align: initial;font-size: 1em\"> plant visits. Under sales skill training, the salesmen are trained about how to approach the customer, identify sales prospects, make <\/span>sales<span style=\"text-align: initial;font-size: 1em\"> presentation, overcome objections, close sale and follow up procedure to be followed. Role playing, sensitivity training, programmed instruction and on the job training methods are used to impart skill training. This training helps in effectively using sales knowledge. Sales attitude training develops <\/span>positive<span style=\"text-align: initial;font-size: 1em\"> attitude of salesman towards his firm, product, colleagues <\/span>and<span style=\"text-align: initial;font-size: 1em\"> superiors. Conferences, self-development courses and discussions are used to impart sales attitude training.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">It is to be remembered that training is a continuous process. New products, high competition, complex technology and changing buying habits necessitate the training of salespeople at regular intervals to keep them efficient and motivated.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Training can provide the desired results only if <\/span>effectiveness<span style=\"text-align: initial;font-size: 1em\"> of training is evaluated at two stages i.e. at first stage, by collecting and <\/span>analysing<span style=\"text-align: initial;font-size: 1em\"> the opinions of trainees about overall training programme, trainer, training methods etc. and at the second stage, by checking the actual performance of salesmen. This evaluation will help in improving future training programmes.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">4.7 Assignment of Job <\/strong>:<span style=\"text-align: initial;font-size: 1em\"> The trained salesmen are assigned jobs of selling products in certain market segments. These market segments are termed <\/span>as<span style=\"text-align: initial;font-size: 1em\"> sales territories. A sales territory denotes <\/span>group<span style=\"text-align: initial;font-size: 1em\"> of customers, called accounts, in a geographical area. The salesmen are allocated sales territories so as to enable management to effectively evaluate each salesman\u2019s performance. It also improves customer service, market coverage, sales profitability and helps in reducing selling expenses.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">The sales territories are allocated on the basis of <\/span>ability<span style=\"text-align: initial;font-size: 1em\"> of salesman, sales efforts required and the sales potential of these territories. The management should try to assign that territory to each salesman wherein his relative contribution to profit is the highest.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Apart from allocating sales territories, sales quota is assigned to each salesman. Sales quotas are quantitative objectives, in terms of rupees or units of products, to be achieved by salespeople. Quotas motivate salesmen to achieve certain performance level and act as standards against which their performance is measured. Sales quotas fixed for salesmen should be fair, accurate and realistic. Salesmen should be able to understand these quotas and methods to achieve them. The participation of salespeople in quota-setting will ensure the achievement of these sales quotas.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">It is worth mentioning here that salesmen are sometimes given some liberty to change discounts or allowances to be granted to buyers to secure more sales. But they are usually not authorized to alter the price given in <\/span>catalogue<span style=\"text-align: initial;font-size: 1em\">.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">The routing and scheduling plans are made for the salesmen to improve coverage of territories and reduce wastage of time and efforts. The route plan provides information about location and number of customers, route maps, means of transport available etc. whereas schedule plan tells about customers to be contacted or called upon daily, the time at which each call is to be made and other necessary details about daily sales calls.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">4.8 Determining Compensation : <\/strong><span style=\"text-align: initial;font-size: 1em\">Management has to formulate <\/span>compensation<span style=\"text-align: initial;font-size: 1em\"> plan for salesmen. Salesmen\u2019s compensation plan may have various components such as salary, commission, bonus, reimbursable expenses and fringe benefits (medical benefits, use of <\/span>car<span style=\"text-align: initial;font-size: 1em\">, life insurance, paid vacations etc.).<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">The compensation plan should ensure stable and good earnings as well as adequate incentives for <\/span>increase<span style=\"text-align: initial;font-size: 1em\"> in sales volume or profitability. It should be simple, fair, economical, flexible and competitive. A good compensation plan reduces sales force turnover, boosts <\/span>morale<span style=\"text-align: initial;font-size: 1em\"> of salesmen\u00a0<\/span><span style=\"text-align: initial;font-size: 1em\">and improves <\/span>firm\u2019s<span style=\"text-align: initial;font-size: 1em\"> image.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">The various methods of compensation followed by different <\/span>organisations are:<span style=\"text-align: initial;font-size: 1em\"> (i) salary method, (ii) commission method (iii) salary plus commission method (iv) salary plus bonus method.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">In addition to the <\/span>above<span style=\"text-align: initial;font-size: 1em\"> any method of compensation followed, the salesmen are compensated for their out-of pocket expenses. They are sometimes given some share of profit for showing extra ordinary performance.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">4.9 Motivation of Sales force : <\/strong><span style=\"text-align: initial;font-size: 1em\">Motivation means stimulus to get <\/span>a desired<span style=\"text-align: initial;font-size: 1em\"> action. <\/span>Sales<span style=\"text-align: initial;font-size: 1em\"> force has unlimited potential which can be tapped through various measures of motivation. Salesmen are required to be motivated for achieving selling objectives. Motivation can be provided through financial and non-financial incentives. Adequate compensation acts as a financial incentive and provides a stimulus to salespeople to work harder. But money cannot <\/span>fulfil<span style=\"text-align: initial;font-size: 1em\"> all needs of salesmen, so they are provided non-financial incentives also such as recognition, praise, good working conditions, participation in goal-setting, promotion, autonomy, <\/span>opportunity<span style=\"text-align: initial;font-size: 1em\"> for advancement etc. Sales contests are also employed which offer financial and non-financial incentives to salesmen on achieving certain goals. However, it should be taken care of that sales contests should not lead to <\/span>high pressure<span style=\"text-align: initial;font-size: 1em\"> selling.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Management should develop a sound motivational system to <\/span>fulfil physiological<span style=\"text-align: initial;font-size: 1em\">, safety, social and ego needs of salesmen. The system should be competitive and flexible.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">4.10 Co-ordination: <\/strong><span style=\"text-align: initial;font-size: 1em\">Co-ordination is the synchronization of various activities. Management\/marketing executives have to co-ordinate the efforts of different salesmen. They have to integrate the operations of sales force with those of physical distribution activities, advertising and sales promotion activities to achieve sales\/marketing objectives. Effective communication helps in achieving co-ordination. Co-ordination reduces conflicts between salesmen and dealers, salesmen inter se and salesmen and sales team at headquarters.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">4.11\u00a0Control <\/strong>:<span style=\"text-align: initial;font-size: 1em\"> Control means evaluating the performance and applying corrective measures, if necessary. The management controls the activities of <\/span>sales<span style=\"text-align: initial;font-size: 1em\"> force. It evaluates the performance of salespeople periodically and continuously to determine the achievement of targeted performance levels, compliance of policies, rewards, penalties <\/span>and need<span style=\"text-align: initial;font-size: 1em\"> for training. Appraisal of performance helps in identifying the area where corrective action is required and enables management to apply adequate corrective measures so as to improve future performance.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">The process of sales force control includes (i) establishment of standards of performance, (ii) measurement of actual <\/span>performance ,<span style=\"text-align: initial;font-size: 1em\"> (iii) comparison of actual performance with the standards,\u00a0<\/span><span style=\"text-align: initial;font-size: 1em\">(iv)\u00a0 providing rewards for better performance and (v) taking corrective action if performance is not up to mark.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Qualitative and quantitative standards for salesmen\u2019s performance are set in the form of sales quotas, expense control, routing <\/span>and<span style=\"text-align: initial;font-size: 1em\"> scheduling plans, personal development objectives and selling objectives like gross profits, sales profitability etc.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\">Organisation\u2019s<span style=\"text-align: initial;font-size: 1em\"> records in <\/span>accounts<span style=\"text-align: initial;font-size: 1em\"> and sales department, salesmen\u2019s reports, supervision, customer feedback reports are the important sources of information which help in knowing about salesmen\u2019s performance levels.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Performance of salesmen against qualitative standards is measured and evaluated through opinion reports of sales executives, customer opinion and merit rating (use of multi-point scale to rate various qualitative factors or traits).<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Quantitative performance of sales force is evaluated through scale records and reports, ratio analysis, profit and loss statement analysis and comparison of salesmen\u2019s performance with sales quotas.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">The effective control of sales force helps in (i) improving selling methods, (ii) determining salesperson\u2019s worth (iii) improving sales performance and quality of supervision (iv) knowing the effectiveness of compensation plans and motivation system and (v) knowing the problems of <\/span>sales<span style=\"text-align: initial;font-size: 1em\"> force.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">A sound control system of an <\/span>organisation<span style=\"text-align: initial;font-size: 1em\"> must ensure fair evaluation, quick reporting of performance and deviations, timely corrective action and human touch in dealing with salesperson showing poor performance.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">5.\u00a0<\/strong><strong style=\"text-align: initial;font-size: 1em\">Summary<\/strong><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">In an <\/span>organisation<span style=\"text-align: initial;font-size: 1em\">\/firm, persons engaged in personal selling operations are called salesmen,\u00a0<\/span><span style=\"text-align: initial;font-size: 1em\">salespeople or sales force. Sales force management relates to planning, organizing, directing and controlling of personal selling activities of an <\/span>organisation<span style=\"text-align: initial;font-size: 1em\"> which also includes recruiting, selecting, training, assigning, routing, scheduling, compensating, supervising and motivating as these tasks are applied to <\/span>sales<span style=\"text-align: initial;font-size: 1em\"> force. <\/span>Organisation\u2019s<span style=\"text-align: initial;font-size: 1em\"> sales and profits are dependent on the efficiency of salesmen. So, their efficient management is the major task of sales\/ marketing management. Effective sales force management includes various functions such as (i) Setting selling objectives (ii) Determining size of sales force (iii) Job Analysis (iv) Recruitment (v) Selection (vi) Training (vii) Assignment of jobs (viii) Determining Compensation (ix) Motivation of Sales force (x) Co-ordination and (xi) Control. First of all, various selling objectives are set for individual salesman within the framework of sales objectives which are set for <\/span>sales<span style=\"text-align: initial;font-size: 1em\">\/ marketing department as a whole. The management has to carry out job analysis to develop <\/span>job<span style=\"text-align: initial;font-size: 1em\"> description and job specification. <\/span>Job<span style=\"text-align: initial;font-size: 1em\"> description provides details about the selling job i.e. its nature, content <\/span>and<span style=\"text-align: initial;font-size: 1em\"> duties of job-holder (salesman). Job specification explains the kind of person required for the selling job in terms of educational qualification, physical strengths <\/span>and<span style=\"text-align: initial;font-size: 1em\"> personal attributes. Recruitment means searching for prospective employees (salesmen) and stimulating them to apply for <\/span>job<span style=\"text-align: initial;font-size: 1em\">. Recruitment can be done from internal or external sources. <\/span>Selection<span style=\"text-align: initial;font-size: 1em\"> means appointing a suitable salesperson as per the requirements of <\/span>job<span style=\"text-align: initial;font-size: 1em\">. It involves tests and interview. Training is a systematic process of enhancing skill and knowledge of people for a specific purpose. Good salespeople are not born rather they are made by training through <\/span>well organized<span style=\"text-align: initial;font-size: 1em\"> training programmes. The trained salesmen are assigned jobs of selling products in certain market segments. These market segments are termed <\/span>as<span style=\"text-align: initial;font-size: 1em\"> sales territories. Apart from allocating sales territories, sales quota is assigned to each salesman. Management has to formulate <\/span>compensation<span style=\"text-align: initial;font-size: 1em\"> plan for salesmen which has various components such as salary, commission, bonus, reimbursable expenses <\/span>and<span style=\"text-align: initial;font-size: 1em\"> fringe benefits. Salesmen are motivated for achieving selling objectives through financial and non-financial incentives. Co-<\/span><span style=\"text-align: initial;font-size: 1em\">ordination is the synchronization of various activities. Management\/marketing executives have to co-ordinate the efforts of different salesmen. <\/span>Control<span style=\"text-align: initial;font-size: 1em\"> means evaluating the performance and applying corrective measures, if necessary. The management controls the activities of <\/span>sales<span style=\"text-align: initial;font-size: 1em\"> force. The effective control of sales force helps in improving selling methods, determining salesperson\u2019s worth, improving sales performance, knowing the effectiveness of compensation plans and knowing the problems of <\/span>sales<span style=\"text-align: initial;font-size: 1em\"> force.<\/span><\/p>\r\n&nbsp;\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Learn more<\/strong><\/p>\r\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Few important sources to learn more about management of sales force:<\/strong><\/p>\r\n\r\n<\/div>\r\n<div>\r\n<ol>\r\n \t<li style=\"text-align: justify\">Blois Keith (2000). <em>The Oxford Textbook of Marketing<\/em>, Oxford University Press Inc., New York<\/li>\r\n \t<li style=\"text-align: justify\">Bose,S. Biplab (2010) <em style=\"text-align: initial;font-size: 1em\">Marketing Management<\/em><span style=\"text-align: initial;font-size: 1em\">, Himalaya Publishing House, Mumbai.<\/span><\/li>\r\n \t<li style=\"text-align: justify\">Cannon, Tom. <em style=\"text-align: initial;font-size: 1em\">Basic Marketing: Principles and Practice<\/em><span style=\"text-align: initial;font-size: 1em\">, 3rd Edition, A.I.T.B.S. Publishers, Delhi.<\/span><\/li>\r\n \t<li style=\"text-align: justify\">Davar S. Rustom, Davar R.Sohrab, Davar R.Nusli (2000). <em style=\"text-align: initial;font-size: 1em\">Salesmanship and Publicity<\/em><span style=\"text-align: initial;font-size: 1em\">, Vikas Publishing House Pvt. Ltd., New Delhi.<\/span><\/li>\r\n \t<li style=\"text-align: justify\">Gandhi,C<span style=\"text-align: initial;font-size: 1em\"> J (1998). <\/span><em style=\"text-align: initial;font-size: 1em\">Marketing- A Managerial Introduction<\/em><span style=\"text-align: initial;font-size: 1em\">, Tata McGraw Hill, New Delhi<\/span><\/li>\r\n \t<li style=\"text-align: justify\">Havaldar and Cavale (2011). <em style=\"text-align: initial;font-size: 1em\">Sales and Distribution Management: Text and Cases<\/em><span style=\"text-align: initial;font-size: 1em\">, 2nd Edition, Tata McGraw Hill Education Private Limited, New Delhi.<\/span><\/li>\r\n \t<li style=\"text-align: justify\">Kotler, Philip (2002). <em style=\"text-align: initial;font-size: 1em\">Framework for Marketing Management<\/em><span style=\"text-align: initial;font-size: 1em\">, Pearson Education (Singapore) Pte.<\/span>Ltd., Indian Branch, Delhi.<\/li>\r\n \t<li style=\"text-align: justify\">Sherlekar,A.S.(1996). <em style=\"text-align: initial;font-size: 1em\">Marketing Management<\/em><span style=\"text-align: initial;font-size: 1em\">, Himalaya Publishing House, Mumbai.<\/span><\/li>\r\n \t<li style=\"text-align: justify\">Venugopal, Pingali (2011). <em style=\"text-align: initial;font-size: 1em\">Sales and Distribution Management: An Indian Perspective<\/em><span style=\"text-align: initial;font-size: 1em\">, SAGE Publication India Pvt. Ltd.<\/span><\/li>\r\n<\/ol>\r\n<ul>\r\n \t<li><a href=\"http:\/\/www.enotes.com\/research-starters\/sales-force-management\">http:\/\/www.enotes.com\/research-starters\/sales-force-management<\/a><\/li>\r\n \t<li><a style=\"text-align: initial;font-size: 1em\" href=\"http:\/\/www.slideshare.net\/mochkurniawan\/chapter01-managing-the-sales-force-2495456\">http:\/\/www.slideshare.net\/mochkurniawan\/chapter01-managing-the-sales-force-2495456<\/a><\/li>\r\n \t<li><a style=\"text-align: initial;font-size: 1em\" href=\"http:\/\/www.managementstudyguide.com\/managing-sales-force.htm\">http:\/\/www.managementstudyguide.com\/managing-sales-force.htm<\/a><\/li>\r\n \t<li>http:\/\/bear.warrington.ufl.edu\/weitz\/papers\/Hiring.pdf<\/li>\r\n<\/ul>\r\n<strong>\u00a0 \u00a0Points to Ponder<\/strong>\r\n<ol>\r\n \t<li style=\"text-align: justify\"><strong>In an organisation, persons engaged in personal selling operations are called salesmen or sales force.<\/strong><\/li>\r\n \t<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Sales force management relates to planning, organizing, directing and controlling of personal selling activities of an organisation.<\/strong><\/li>\r\n \t<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Sales force management also includes recruiting, selecting, training, assigning, compensating, and motivating as these tasks are applied to sales force.<\/strong><\/li>\r\n \t<li style=\"text-align: justify\"><strong>The effective control of sales force helps in determining salesperson\u2019s worth, improving sales performance and knowing the problems of sales force.<\/strong><\/li>\r\n<\/ol>\r\n<\/div>","rendered":"<div>\n<p><strong>\u00a0 \u00a0 1.\u00a0<\/strong><strong>Learning Outcome:<\/strong><\/p>\n<p>After completing this module, the students will be able to:<\/p>\n<ul>\n<li>Understand the concept of sales force management<\/li>\n<li>Explain the functions of sales force management<\/li>\n<li>Describe the selection process of salesmen<\/li>\n<\/ul>\n<p><strong>\u00a0 \u00a0 2.\u00a0<\/strong><strong>Introduction<\/strong><\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p style=\"text-align: justify\">The essence of marketing is creating, maintaining and developing demand. Thus, the role of effective selling and sales force cannot be undermined. The organisations grow due to the hard work of sales force which deals with the customers and tries to secure more and more demand for organisations\u2019 products or services. Therefore, there is a need to manage the sales force effectively for the long term survival of organisations.<\/p>\n<p>&nbsp;<\/p>\n<p><strong>3.\u00a0<\/strong><strong>Meaning<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">In an organisation\/firm, persons engaged in personal selling operations are called salesmen, salespeople or sales force. Personal selling requires face to face interaction between customer and salesman and involves use of various methods of selling such as door to door selling, selling across the table, selling at counter etc. In some organisations (especially dealing in industrial goods), majority of their sales force is engaged in field or door to door selling.<\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p style=\"text-align: justify\">Sales force management relates to planning, organizing, directing and controlling of personal selling activities of an organisation which also includes recruiting, selecting, training, assigning, routing, scheduling, compensating, supervising and motivating as these tasks are applied to sales force.<\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p><strong>4.\u00a0<\/strong><strong>Functions or Process of Sales force Management<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">Sales force is an invaluable asset of an organisation. Organisation\u2019s sales and profits are dependent on the efficiency of salesmen. So, their efficient management is the major task of sales\/ marketing management. Effective sales force management includes various functions which are explained as under:<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">4.1 Setting selling objectives<\/strong><span style=\"text-align: initial;font-size: 1em\">:- First of all, various selling objectives are set for individual salesman within the framework of sales objectives i.e. objectives set for <\/span>sales<span style=\"text-align: initial;font-size: 1em\">\/marketing department as a whole. Apart from setting direct selling objectives like sales volume, expense and profitability for each salesman, other objectives are also set in relation to their selling and non-selling functions such as number of calls to be made per day\/ week, order size, average cost per call, number of orders to be generated per day\/ week, number of middlemen\u2019s salespeople to be trained per day etc. These objectives will act as standards for evaluating <\/span>performance<span style=\"text-align: initial;font-size: 1em\"> of salesmen and pinpointing the weaknesses in their performance.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">4.2 Determining size of sales force<\/strong><span style=\"text-align: initial;font-size: 1em\">:- There is a need to determine the number of salesmen required to accomplish sales objectives. As the management of sales force involves cost, therefore, such size of <\/span>sales<span style=\"text-align: initial;font-size: 1em\"> force is determined which will help in increasing sales volume and profit on one <\/span>hand,<span style=\"text-align: initial;font-size: 1em\"> and reducing associated costs on the other hand. In determining <\/span>optimum<span style=\"text-align: initial;font-size: 1em\"> size of sales force, past experience, managerial <\/span>judgement and<span style=\"text-align: initial;font-size: 1em\"> the practice followed in industry play an important role. However, some models are available which can help marketing executives in deciding <\/span>right<span style=\"text-align: initial;font-size: 1em\"> size. These models are explained as follows:<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">a)\u00a0<\/span><em style=\"text-align: initial;font-size: 1em\">Workload model<\/em><span style=\"text-align: initial;font-size: 1em\">: This model was propounded by W. J. Talley who believed that all salesmen should have <\/span>equal<span style=\"text-align: initial;font-size: 1em\"> workload. As per this model, management should first determine the total workload involved in covering the firm\u2019s entire market. Then, it should divide this estimated total workload by the workload that an individual salesman is required to handle. This will determine the number of salesmen needed. The workload model involves <\/span>following<span style=\"text-align: initial;font-size: 1em\"> six steps:<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(i) Divide and group the present and potential customers as per their annual sales volume. For example, if there are 800 present and potential customers, they can be classified by sales volume potential as under:<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Class A\u00a0 \u00a0\u2013\u00a0 \u00a0large\u00a0 \u00a0 \u00a0 \u00a0 \u00a0100 accounts<\/span><\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Class B\u00a0 \u00a0\u2013\u00a0 \u00a0medium\u00a0 \u00a0200 accounts<\/span><\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Class C\u00a0 \u00a0\u2013\u00a0 \u00a0small\u00a0 \u00a0 \u00a0 \u00a0 500 accounts<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(ii) Decide the length of time per sales call and desired call frequencies (number of calls) for each class of customers on the basis of sales personnel\u2019s opinions, personal <\/span>judgement<span style=\"text-align: initial;font-size: 1em\"> or actual time studies. Continuing with <\/span>above<span style=\"text-align: initial;font-size: 1em\"> example, <\/span>annual<span style=\"text-align: initial;font-size: 1em\"> time required for each class will be calculated as follows:<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Class <\/span>A\u00a0 \u00a0 :<span style=\"text-align: initial;font-size: 1em\">\u00a0 \u00a0 60 minutes per call\u00a0 \u00a0 \u00d7\u00a0 \u00a0 50 calls per year\u00a0 \u00a0 =\u00a0 \u00a0 50 hrs per year<\/span><\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Class <\/span>B\u00a0 \u00a0 :<span style=\"text-align: initial;font-size: 1em\">\u00a0 \u00a0 30 minutes per call\u00a0 \u00a0 \u00d7\u00a0 \u00a0 26 calls per year\u00a0 \u00a0 =\u00a0 \u00a0 13 hrs per year<\/span><\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Class <\/span>C\u00a0 \u00a0 :<span style=\"text-align: initial;font-size: 1em\">\u00a0 \u00a0 15 minutes per call\u00a0 \u00a0 \u00a0\u00d7\u00a0 \u00a0 12 calls per year\u00a0 \u00a0 \u00a0=\u00a0 \u00a0 3 hrs per year<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(iii) Calculate total workload required to cover <\/span>whole<span style=\"text-align: initial;font-size: 1em\"> market<\/span><\/p>\n<\/div>\n<div>\n<table style=\"height: 176px; width: 527px;\">\n<tbody>\n<tr style=\"height: 14px\">\n<td style=\"height: 14px;width: 72.0625px\">CLASS<\/td>\n<td style=\"height: 14px;width: 287.063px;text-align: left\">ACCOUNTS\u00d7CALLS HRS PER YEAR=<\/td>\n<td style=\"height: 14px;width: 125.063px\">WORKLOAD<\/td>\n<\/tr>\n<tr style=\"height: 14px\">\n<td style=\"height: 14px;width: 72.0625px\">Class A<\/td>\n<td style=\"height: 14px;width: 287.063px\">100\u00d750=<\/td>\n<td style=\"height: 14px;width: 125.063px\">5000hrs<\/td>\n<\/tr>\n<tr style=\"height: 14px\">\n<td style=\"height: 14px;width: 72.0625px\">Class B<\/td>\n<td style=\"height: 14px;width: 287.063px\">200\u00d713=<\/td>\n<td style=\"height: 14px;width: 125.063px\">2600hrs<\/td>\n<\/tr>\n<tr style=\"height: 14px\">\n<td style=\"height: 14px;width: 72.0625px\">Class C<\/td>\n<td style=\"height: 14px;width: 287.063px\">500\u00d73=<\/td>\n<td style=\"height: 14px;width: 125.063px\">1500hrs<\/td>\n<\/tr>\n<tr style=\"height: 14px\">\n<td style=\"height: 14px;width: 72.0625px\"><\/td>\n<td style=\"height: 14px;width: 287.063px\">TOTAL<\/td>\n<td style=\"height: 14px;width: 125.063px\">9100hrs<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">(iv) Decide the total work time available per salesman. It may be decided by the management that each salesman will work 40hrs per week and 48weeks per year. Therefore, total work time available for each salesman will be<\/p>\n<p>40hrs \u00d7 48weeks = 1920hrs per year<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(v) Divide the total work time of salesman as per tasks, he is required to perform. For example, management may specify that salesperson should devote his time as follows:<\/span><\/p>\n<\/div>\n<div>\n<table>\n<tbody>\n<tr>\n<td>Selling tasks<\/td>\n<td>55%<\/td>\n<td>1056hrs<\/td>\n<\/tr>\n<tr>\n<td>Non-selling tasks<\/td>\n<td>25%<\/td>\n<td>480hrs<\/td>\n<\/tr>\n<tr>\n<td>Travelling<\/td>\n<td>20%<\/td>\n<td>384hrs<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td>TOTAL =<\/td>\n<td>1920hrs<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">(vi) Determine the number of salesmen required. This will be done by dividing the total work load as calculated in step (iii) by total selling time available for each salesman i.e.<\/p>\n<p>&nbsp;<\/p>\n<p>9100 hrs \u00f7 1056 hrs = 8.617 or 9 salesmen<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">This method is easy to understand and quite popular among sales\/marketing executives. But this method has certain shortcomings such as (i) it does not consider profit element and (ii) it assumes that each salesman is equally efficient which is practically not possible.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">b)\u00a0<em>Marginal Model<\/em>: This is another model given by W. J. Semlow to determine the optimum size of sales force. As per this model, a firm can go on increasing the number of salesmen till additional gross margin on sales volume that each additional salesman is expected to produce is greater than the total cost of maintaining an additional salesman.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">According to Semlow, this method is easy to apply as necessary information is available from accounting records. But, it is sometimes difficult to determine the incremental sales that additional salesperson could be expected to generate especially in case when increase in number of salespeople does not create a proportional increase in sales.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong>4.3 Job Analysis : <\/strong>The management has to carry out job analysis to develop job description and job specification. Job description provides details about the job i.e. its nature, content and duties of job-holder. The job description for selling job specifies (i) job duties (ii) extent of responsibility (iii)\u00a0 job conditions (iv) relationship with superiors, supervisors and peers, (v) type of customer and sales contact involved.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">Job specification explains the kind of person required for the job in terms of educational qualification, physical strengths and personal attributes. Apart from educational qualification, firms usually look for self-confidence, empathy i.e. ability to understand another person\u2019s problems and wants and ego-drive i.e. desire to excel and convince the prospect.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">Job description and job specification help in effective recruitment and selection.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong>4.4 Recruitment: <\/strong>Recruitment means searching for prospective employees (salesmen) and stimulating them to apply for job. Effective recruitment increases the number of applicants which enables management to make a better selection of salesmen. Recruitment and selection are usually the responsibilities of personnel department but many a times, marketing executives are called upon either to take a lead in this regard or assist personnel department in this task. Recruitment can be done from internal sources or from external sources. Present employees may recommend the name of certain persons known to them. Transfers can be initiated from one branch to another to adjust the requirement of salesmen.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">Firms may contact employment exchanges, recruitment agencies, educational or training institutes. Reputed firms\/organisations usually have unsolicited applicants i.e. the candidates who aspire to work in these firms. The management keeps record of all such applicants. They can be called upon if need arises.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong>4.5\u00a0Selection : <\/strong>Selection means appointing a suitable person as per the requirements of job. Selection is considered as negative process as it involves the appointment of promising candidate and refusing the unpromising one. The selection of right salesmen is very important\u00a0<span style=\"text-align: initial;font-size: 1em\">as the improper selection will lead to poor sales volume, less profit generation, high salesmen turnover, inadequate compensation and dissatisfaction among salesmen.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">The selection procedure followed by the firm involves certain steps which are:<\/span><\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(i)\u00a0<\/span><em style=\"text-align: initial;font-size: 1em\">Receiving and scrutiny of applications: <\/em>The applications of various candidates are received and scrutinized to segregate applications which do not fulfil the basic requirements like education or height etc.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(ii)\u00a0<\/span><em style=\"text-align: initial;font-size: 1em\">Getting application blanks filled<\/em><span style=\"text-align: initial;font-size: 1em\">: These are the printed application forms which are to be filled in by candidates who are eligible and have submitted simple applications. These forms help in getting some standardized information about the candidate like personal history, educational qualification, salary expected, experience, reasons for leaving <\/span>previous<span style=\"text-align: initial;font-size: 1em\"> job, references etc.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(iii)\u00a0<\/span><em style=\"text-align: initial;font-size: 1em\">Administering tests<\/em><span style=\"text-align: initial;font-size: 1em\">: The tests are applied to develop an in-depth understanding <\/span>about<span style=\"text-align: initial;font-size: 1em\"> personality traits and attributes of the candidates. Various psychological tests which are used for selection of salespeople include Achievement Tests, Intelligence Tests, Personality Tests <\/span>and<span style=\"text-align: initial;font-size: 1em\"> Interest Tests. Achievement Tests measure skill or training which the candidate possesses at the time of testing. Intelligence Tests measure the intelligence quotient of the applicants. The capability of a person in dealing with new problems can be understood through these tests. Personality Tests are designed to know <\/span>candidate\u2019s<span style=\"text-align: initial;font-size: 1em\"> overall appearance, temperament, <\/span>behaviour<span style=\"text-align: initial;font-size: 1em\">, initiative, confidence, belief in team work etc. Interest Tests attempt to find out the liking and disliking of the candidate so that job of his liking can be assigned if he is selected.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(iv)\u00a0<\/span><em style=\"text-align: initial;font-size: 1em\">Interviewing<\/em><span style=\"text-align: initial;font-size: 1em\">: Interviewing involves personal interaction between selection committee or interviewer and candidate (interviewee) in <\/span>formal<span style=\"text-align: initial;font-size: 1em\"> or informal setting. <\/span>Interview<span style=\"text-align: initial;font-size: 1em\"> can be structured, semi-structured, unstructured or stress interview. <\/span>Interview<span style=\"text-align: initial;font-size: 1em\"> helps in cross checking the information supplied in application forms and gathering other necessary information about <\/span>candidate<span style=\"text-align: initial;font-size: 1em\">. <\/span>Interview<span style=\"text-align: initial;font-size: 1em\"> is an important part of <\/span>selection<span style=\"text-align: initial;font-size: 1em\"> process. It is aimed at discovering \u2018salesman\u2019 in the interviewee which is otherwise not possible. <\/span>Moreover<span style=\"text-align: initial;font-size: 1em\"> the candidate gets a chance to know more about the firm and the job.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(v)\u00a0<\/span><em style=\"text-align: initial;font-size: 1em\">Medical Examination<\/em><span style=\"text-align: initial;font-size: 1em\">: The candidate after passing through interview may require to go for medical examination and submit physical fitness certificate for ensuring his physical ability to carry out a hard and stressful selling job.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">(vi)\u00a0<\/span><em style=\"text-align: initial;font-size: 1em\">Selection<\/em><span style=\"text-align: initial;font-size: 1em\">: The candidates who have crossed all the hurdles, they are issued appointment letters which explain their position, remuneration and other terms and conditions of <\/span>job<span style=\"text-align: initial;font-size: 1em\">. However, the contractual relations are established with the selected candidates when they submit joining letters.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">4.6\u00a0Training <\/strong>:<span style=\"text-align: initial;font-size: 1em\"> Training is a systematic process of enhancing skill and knowledge of people for a specific purpose. Good salespeople are not born rather they are made by imparting training through <\/span>well organized<span style=\"text-align: initial;font-size: 1em\"> training programmes. Newly selected salesmen should be imparted training before they take up their selling jobs. Trained salesmen can exercise <\/span>self control<span style=\"text-align: initial;font-size: 1em\">. They are able to secure orders quickly. Thus, training helps in increasing sales, profits and efficiency of <\/span>salesman<span style=\"text-align: initial;font-size: 1em\">. It improves customer relations and reduces salesmen turnover.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">The sales force training programme focuses on imparting knowledge about <\/span>product<span style=\"text-align: initial;font-size: 1em\">, market, company\/firm, and various selling techniques. The trainees (salesmen) are made aware of <\/span>product<span style=\"text-align: initial;font-size: 1em\"> of the firm, its uses, strengths <\/span>and<span style=\"text-align: initial;font-size: 1em\"> weaknesses in comparison to products of rival firms. It enables salesmen to effectively demonstrate the product and handling queries of customers during <\/span>actual<span style=\"text-align: initial;font-size: 1em\"> selling of products. Salesmen are also provided knowledge about markets of their firm so as to have a better understanding of customers\u2019 demographic profile and <\/span>behaviour<span style=\"text-align: initial;font-size: 1em\">. The information about <\/span>firm\u2019s<span style=\"text-align: initial;font-size: 1em\"> history, marketing policies, marketing strategies, order processes, personnel policies is also provided to salesmen during training. It helps in projecting a better image of the firm and boosting salesmen\u2019s morale. It also enables salesmen to follow proper\u00a0<\/span><span style=\"text-align: initial;font-size: 1em\">policies during their field work. The knowledge and instructions about selling techniques are provided to the trainees. These help them to meet challenges in an effective manner in the field of sales.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Training can be imparted to a group of salesmen through various methods such as lecture, discussion, role playing or sensitivity training. It can be imparted to salesmen at an individual level through on the job training method or programmed instruction method. The organizations usually use a combination of training methods rather than a single method to improve the effectiveness of training.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Through various training methods, salesmen are provided knowledge, skill <\/span>and<span style=\"text-align: initial;font-size: 1em\"> attitude training. Sales knowledge training (knowledge of product, company, market and selling techniques) is imparted through lectures, conferences, discussions, programmed instructions <\/span>and<span style=\"text-align: initial;font-size: 1em\"> plant visits. Under sales skill training, the salesmen are trained about how to approach the customer, identify sales prospects, make <\/span>sales<span style=\"text-align: initial;font-size: 1em\"> presentation, overcome objections, close sale and follow up procedure to be followed. Role playing, sensitivity training, programmed instruction and on the job training methods are used to impart skill training. This training helps in effectively using sales knowledge. Sales attitude training develops <\/span>positive<span style=\"text-align: initial;font-size: 1em\"> attitude of salesman towards his firm, product, colleagues <\/span>and<span style=\"text-align: initial;font-size: 1em\"> superiors. Conferences, self-development courses and discussions are used to impart sales attitude training.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">It is to be remembered that training is a continuous process. New products, high competition, complex technology and changing buying habits necessitate the training of salespeople at regular intervals to keep them efficient and motivated.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Training can provide the desired results only if <\/span>effectiveness<span style=\"text-align: initial;font-size: 1em\"> of training is evaluated at two stages i.e. at first stage, by collecting and <\/span>analysing<span style=\"text-align: initial;font-size: 1em\"> the opinions of trainees about overall training programme, trainer, training methods etc. and at the second stage, by checking the actual performance of salesmen. This evaluation will help in improving future training programmes.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">4.7 Assignment of Job <\/strong>:<span style=\"text-align: initial;font-size: 1em\"> The trained salesmen are assigned jobs of selling products in certain market segments. These market segments are termed <\/span>as<span style=\"text-align: initial;font-size: 1em\"> sales territories. A sales territory denotes <\/span>group<span style=\"text-align: initial;font-size: 1em\"> of customers, called accounts, in a geographical area. The salesmen are allocated sales territories so as to enable management to effectively evaluate each salesman\u2019s performance. It also improves customer service, market coverage, sales profitability and helps in reducing selling expenses.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">The sales territories are allocated on the basis of <\/span>ability<span style=\"text-align: initial;font-size: 1em\"> of salesman, sales efforts required and the sales potential of these territories. The management should try to assign that territory to each salesman wherein his relative contribution to profit is the highest.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Apart from allocating sales territories, sales quota is assigned to each salesman. Sales quotas are quantitative objectives, in terms of rupees or units of products, to be achieved by salespeople. Quotas motivate salesmen to achieve certain performance level and act as standards against which their performance is measured. Sales quotas fixed for salesmen should be fair, accurate and realistic. Salesmen should be able to understand these quotas and methods to achieve them. The participation of salespeople in quota-setting will ensure the achievement of these sales quotas.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">It is worth mentioning here that salesmen are sometimes given some liberty to change discounts or allowances to be granted to buyers to secure more sales. But they are usually not authorized to alter the price given in <\/span>catalogue<span style=\"text-align: initial;font-size: 1em\">.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">The routing and scheduling plans are made for the salesmen to improve coverage of territories and reduce wastage of time and efforts. The route plan provides information about location and number of customers, route maps, means of transport available etc. whereas schedule plan tells about customers to be contacted or called upon daily, the time at which each call is to be made and other necessary details about daily sales calls.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">4.8 Determining Compensation : <\/strong><span style=\"text-align: initial;font-size: 1em\">Management has to formulate <\/span>compensation<span style=\"text-align: initial;font-size: 1em\"> plan for salesmen. Salesmen\u2019s compensation plan may have various components such as salary, commission, bonus, reimbursable expenses and fringe benefits (medical benefits, use of <\/span>car<span style=\"text-align: initial;font-size: 1em\">, life insurance, paid vacations etc.).<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">The compensation plan should ensure stable and good earnings as well as adequate incentives for <\/span>increase<span style=\"text-align: initial;font-size: 1em\"> in sales volume or profitability. It should be simple, fair, economical, flexible and competitive. A good compensation plan reduces sales force turnover, boosts <\/span>morale<span style=\"text-align: initial;font-size: 1em\"> of salesmen\u00a0<\/span><span style=\"text-align: initial;font-size: 1em\">and improves <\/span>firm\u2019s<span style=\"text-align: initial;font-size: 1em\"> image.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">The various methods of compensation followed by different <\/span>organisations are:<span style=\"text-align: initial;font-size: 1em\"> (i) salary method, (ii) commission method (iii) salary plus commission method (iv) salary plus bonus method.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">In addition to the <\/span>above<span style=\"text-align: initial;font-size: 1em\"> any method of compensation followed, the salesmen are compensated for their out-of pocket expenses. They are sometimes given some share of profit for showing extra ordinary performance.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">4.9 Motivation of Sales force : <\/strong><span style=\"text-align: initial;font-size: 1em\">Motivation means stimulus to get <\/span>a desired<span style=\"text-align: initial;font-size: 1em\"> action. <\/span>Sales<span style=\"text-align: initial;font-size: 1em\"> force has unlimited potential which can be tapped through various measures of motivation. Salesmen are required to be motivated for achieving selling objectives. Motivation can be provided through financial and non-financial incentives. Adequate compensation acts as a financial incentive and provides a stimulus to salespeople to work harder. But money cannot <\/span>fulfil<span style=\"text-align: initial;font-size: 1em\"> all needs of salesmen, so they are provided non-financial incentives also such as recognition, praise, good working conditions, participation in goal-setting, promotion, autonomy, <\/span>opportunity<span style=\"text-align: initial;font-size: 1em\"> for advancement etc. Sales contests are also employed which offer financial and non-financial incentives to salesmen on achieving certain goals. However, it should be taken care of that sales contests should not lead to <\/span>high pressure<span style=\"text-align: initial;font-size: 1em\"> selling.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Management should develop a sound motivational system to <\/span>fulfil physiological<span style=\"text-align: initial;font-size: 1em\">, safety, social and ego needs of salesmen. The system should be competitive and flexible.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">4.10 Co-ordination: <\/strong><span style=\"text-align: initial;font-size: 1em\">Co-ordination is the synchronization of various activities. Management\/marketing executives have to co-ordinate the efforts of different salesmen. They have to integrate the operations of sales force with those of physical distribution activities, advertising and sales promotion activities to achieve sales\/marketing objectives. Effective communication helps in achieving co-ordination. Co-ordination reduces conflicts between salesmen and dealers, salesmen inter se and salesmen and sales team at headquarters.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">4.11\u00a0Control <\/strong>:<span style=\"text-align: initial;font-size: 1em\"> Control means evaluating the performance and applying corrective measures, if necessary. The management controls the activities of <\/span>sales<span style=\"text-align: initial;font-size: 1em\"> force. It evaluates the performance of salespeople periodically and continuously to determine the achievement of targeted performance levels, compliance of policies, rewards, penalties <\/span>and need<span style=\"text-align: initial;font-size: 1em\"> for training. Appraisal of performance helps in identifying the area where corrective action is required and enables management to apply adequate corrective measures so as to improve future performance.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">The process of sales force control includes (i) establishment of standards of performance, (ii) measurement of actual <\/span>performance ,<span style=\"text-align: initial;font-size: 1em\"> (iii) comparison of actual performance with the standards,\u00a0<\/span><span style=\"text-align: initial;font-size: 1em\">(iv)\u00a0 providing rewards for better performance and (v) taking corrective action if performance is not up to mark.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Qualitative and quantitative standards for salesmen\u2019s performance are set in the form of sales quotas, expense control, routing <\/span>and<span style=\"text-align: initial;font-size: 1em\"> scheduling plans, personal development objectives and selling objectives like gross profits, sales profitability etc.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\">Organisation\u2019s<span style=\"text-align: initial;font-size: 1em\"> records in <\/span>accounts<span style=\"text-align: initial;font-size: 1em\"> and sales department, salesmen\u2019s reports, supervision, customer feedback reports are the important sources of information which help in knowing about salesmen\u2019s performance levels.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Performance of salesmen against qualitative standards is measured and evaluated through opinion reports of sales executives, customer opinion and merit rating (use of multi-point scale to rate various qualitative factors or traits).<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">Quantitative performance of sales force is evaluated through scale records and reports, ratio analysis, profit and loss statement analysis and comparison of salesmen\u2019s performance with sales quotas.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">The effective control of sales force helps in (i) improving selling methods, (ii) determining salesperson\u2019s worth (iii) improving sales performance and quality of supervision (iv) knowing the effectiveness of compensation plans and motivation system and (v) knowing the problems of <\/span>sales<span style=\"text-align: initial;font-size: 1em\"> force.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">A sound control system of an <\/span>organisation<span style=\"text-align: initial;font-size: 1em\"> must ensure fair evaluation, quick reporting of performance and deviations, timely corrective action and human touch in dealing with salesperson showing poor performance.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">5.\u00a0<\/strong><strong style=\"text-align: initial;font-size: 1em\">Summary<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><span style=\"text-align: initial;font-size: 1em\">In an <\/span>organisation<span style=\"text-align: initial;font-size: 1em\">\/firm, persons engaged in personal selling operations are called salesmen,\u00a0<\/span><span style=\"text-align: initial;font-size: 1em\">salespeople or sales force. Sales force management relates to planning, organizing, directing and controlling of personal selling activities of an <\/span>organisation<span style=\"text-align: initial;font-size: 1em\"> which also includes recruiting, selecting, training, assigning, routing, scheduling, compensating, supervising and motivating as these tasks are applied to <\/span>sales<span style=\"text-align: initial;font-size: 1em\"> force. <\/span>Organisation\u2019s<span style=\"text-align: initial;font-size: 1em\"> sales and profits are dependent on the efficiency of salesmen. So, their efficient management is the major task of sales\/ marketing management. Effective sales force management includes various functions such as (i) Setting selling objectives (ii) Determining size of sales force (iii) Job Analysis (iv) Recruitment (v) Selection (vi) Training (vii) Assignment of jobs (viii) Determining Compensation (ix) Motivation of Sales force (x) Co-ordination and (xi) Control. First of all, various selling objectives are set for individual salesman within the framework of sales objectives which are set for <\/span>sales<span style=\"text-align: initial;font-size: 1em\">\/ marketing department as a whole. The management has to carry out job analysis to develop <\/span>job<span style=\"text-align: initial;font-size: 1em\"> description and job specification. <\/span>Job<span style=\"text-align: initial;font-size: 1em\"> description provides details about the selling job i.e. its nature, content <\/span>and<span style=\"text-align: initial;font-size: 1em\"> duties of job-holder (salesman). Job specification explains the kind of person required for the selling job in terms of educational qualification, physical strengths <\/span>and<span style=\"text-align: initial;font-size: 1em\"> personal attributes. Recruitment means searching for prospective employees (salesmen) and stimulating them to apply for <\/span>job<span style=\"text-align: initial;font-size: 1em\">. Recruitment can be done from internal or external sources. <\/span>Selection<span style=\"text-align: initial;font-size: 1em\"> means appointing a suitable salesperson as per the requirements of <\/span>job<span style=\"text-align: initial;font-size: 1em\">. It involves tests and interview. Training is a systematic process of enhancing skill and knowledge of people for a specific purpose. Good salespeople are not born rather they are made by training through <\/span>well organized<span style=\"text-align: initial;font-size: 1em\"> training programmes. The trained salesmen are assigned jobs of selling products in certain market segments. These market segments are termed <\/span>as<span style=\"text-align: initial;font-size: 1em\"> sales territories. Apart from allocating sales territories, sales quota is assigned to each salesman. Management has to formulate <\/span>compensation<span style=\"text-align: initial;font-size: 1em\"> plan for salesmen which has various components such as salary, commission, bonus, reimbursable expenses <\/span>and<span style=\"text-align: initial;font-size: 1em\"> fringe benefits. Salesmen are motivated for achieving selling objectives through financial and non-financial incentives. Co-<\/span><span style=\"text-align: initial;font-size: 1em\">ordination is the synchronization of various activities. Management\/marketing executives have to co-ordinate the efforts of different salesmen. <\/span>Control<span style=\"text-align: initial;font-size: 1em\"> means evaluating the performance and applying corrective measures, if necessary. The management controls the activities of <\/span>sales<span style=\"text-align: initial;font-size: 1em\"> force. The effective control of sales force helps in improving selling methods, determining salesperson\u2019s worth, improving sales performance, knowing the effectiveness of compensation plans and knowing the problems of <\/span>sales<span style=\"text-align: initial;font-size: 1em\"> force.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Learn more<\/strong><\/p>\n<p style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Few important sources to learn more about management of sales force:<\/strong><\/p>\n<\/div>\n<div>\n<ol>\n<li style=\"text-align: justify\">Blois Keith (2000). <em>The Oxford Textbook of Marketing<\/em>, Oxford University Press Inc., New York<\/li>\n<li style=\"text-align: justify\">Bose,S. Biplab (2010) <em style=\"text-align: initial;font-size: 1em\">Marketing Management<\/em><span style=\"text-align: initial;font-size: 1em\">, Himalaya Publishing House, Mumbai.<\/span><\/li>\n<li style=\"text-align: justify\">Cannon, Tom. <em style=\"text-align: initial;font-size: 1em\">Basic Marketing: Principles and Practice<\/em><span style=\"text-align: initial;font-size: 1em\">, 3rd Edition, A.I.T.B.S. Publishers, Delhi.<\/span><\/li>\n<li style=\"text-align: justify\">Davar S. Rustom, Davar R.Sohrab, Davar R.Nusli (2000). <em style=\"text-align: initial;font-size: 1em\">Salesmanship and Publicity<\/em><span style=\"text-align: initial;font-size: 1em\">, Vikas Publishing House Pvt. Ltd., New Delhi.<\/span><\/li>\n<li style=\"text-align: justify\">Gandhi,C<span style=\"text-align: initial;font-size: 1em\"> J (1998). <\/span><em style=\"text-align: initial;font-size: 1em\">Marketing- A Managerial Introduction<\/em><span style=\"text-align: initial;font-size: 1em\">, Tata McGraw Hill, New Delhi<\/span><\/li>\n<li style=\"text-align: justify\">Havaldar and Cavale (2011). <em style=\"text-align: initial;font-size: 1em\">Sales and Distribution Management: Text and Cases<\/em><span style=\"text-align: initial;font-size: 1em\">, 2nd Edition, Tata McGraw Hill Education Private Limited, New Delhi.<\/span><\/li>\n<li style=\"text-align: justify\">Kotler, Philip (2002). <em style=\"text-align: initial;font-size: 1em\">Framework for Marketing Management<\/em><span style=\"text-align: initial;font-size: 1em\">, Pearson Education (Singapore) Pte.<\/span>Ltd., Indian Branch, Delhi.<\/li>\n<li style=\"text-align: justify\">Sherlekar,A.S.(1996). <em style=\"text-align: initial;font-size: 1em\">Marketing Management<\/em><span style=\"text-align: initial;font-size: 1em\">, Himalaya Publishing House, Mumbai.<\/span><\/li>\n<li style=\"text-align: justify\">Venugopal, Pingali (2011). <em style=\"text-align: initial;font-size: 1em\">Sales and Distribution Management: An Indian Perspective<\/em><span style=\"text-align: initial;font-size: 1em\">, SAGE Publication India Pvt. Ltd.<\/span><\/li>\n<\/ol>\n<ul>\n<li><a href=\"http:\/\/www.enotes.com\/research-starters\/sales-force-management\">http:\/\/www.enotes.com\/research-starters\/sales-force-management<\/a><\/li>\n<li><a style=\"text-align: initial;font-size: 1em\" href=\"http:\/\/www.slideshare.net\/mochkurniawan\/chapter01-managing-the-sales-force-2495456\">http:\/\/www.slideshare.net\/mochkurniawan\/chapter01-managing-the-sales-force-2495456<\/a><\/li>\n<li><a style=\"text-align: initial;font-size: 1em\" href=\"http:\/\/www.managementstudyguide.com\/managing-sales-force.htm\">http:\/\/www.managementstudyguide.com\/managing-sales-force.htm<\/a><\/li>\n<li>http:\/\/bear.warrington.ufl.edu\/weitz\/papers\/Hiring.pdf<\/li>\n<\/ul>\n<p><strong>\u00a0 \u00a0Points to Ponder<\/strong><\/p>\n<ol>\n<li style=\"text-align: justify\"><strong>In an organisation, persons engaged in personal selling operations are called salesmen or sales force.<\/strong><\/li>\n<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Sales force management relates to planning, organizing, directing and controlling of personal selling activities of an organisation.<\/strong><\/li>\n<li style=\"text-align: justify\"><strong style=\"text-align: initial;font-size: 1em\">Sales force management also includes recruiting, selecting, training, assigning, compensating, and motivating as these tasks are applied to sales force.<\/strong><\/li>\n<li style=\"text-align: justify\"><strong>The effective control of sales force helps in determining salesperson\u2019s worth, improving sales performance and knowing the problems of sales force.<\/strong><\/li>\n<\/ol>\n<\/div>\n","protected":false},"author":3,"menu_order":18,"template":"","meta":{"pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":["dr-rajwant-kaur"],"pb_section_license":""},"chapter-type":[],"contributor":[60],"license":[],"class_list":["post-141","chapter","type-chapter","status-publish","hentry","contributor-dr-rajwant-kaur"],"part":3,"_links":{"self":[{"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp14\/wp-json\/pressbooks\/v2\/chapters\/141","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp14\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp14\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp14\/wp-json\/wp\/v2\/users\/3"}],"version-history":[{"count":4,"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp14\/wp-json\/pressbooks\/v2\/chapters\/141\/revisions"}],"predecessor-version":[{"id":145,"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp14\/wp-json\/pressbooks\/v2\/chapters\/141\/revisions\/145"}],"part":[{"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp14\/wp-json\/pressbooks\/v2\/parts\/3"}],"metadata":[{"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp14\/wp-json\/pressbooks\/v2\/chapters\/141\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp14\/wp-json\/wp\/v2\/media?parent=141"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp14\/wp-json\/pressbooks\/v2\/chapter-type?post=141"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp14\/wp-json\/wp\/v2\/contributor?post=141"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/ebooks.inflibnet.ac.in\/mgmtp14\/wp-json\/wp\/v2\/license?post=141"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}