Few star salespeople are ever unemployed and a small

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Marketing 2018
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Chapter 18 / Exercise 3
Marketing 2018
Ferrell/Pride
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few star salespeople are ever unemployed, and a small business probably lacks the resources to find and hire those who are. Furthermore, if the manager elects to hire only the most qualified people, budgetary constraints may force him to leave some territories only partially covered, resulting in customer dissatisfaction and lost sales. Therefore, it usually makes more sense for small businesses to hire green troops and train them well. After determining the composition of the sales force, the sales manager creates a budget, or a record of planned expenses that is (usually) prepared annually. The budget helps the manager decide how much money will be spent on personal selling and how that money will be allocated within the sales force. Major budgetary items include: sales force salaries, commissions, and bonuses; travel expenses; sales materials; training; clerical services; and office rent and utilities. Many budgets are prepared by simply reviewing the previous year's budget and then making adjustments. A more advanced technique, however, is the percentage of sales method, which allocates funds based on a percentage of expected revenues. Typical percentages range from about two percent for heavy industries to as much as eight percent or more for consumer goods and computers.
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Chapter 18 / Exercise 3
Marketing 2018
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58 | P a g e After a sales force strategy has been devised and a budget has been adopted, the sales manager should ideally have the opportunity to organize, or structure, the sales force. The structure of the sales force allows each salesperson to specialize in a certain sales task or type of customer or market, so that they will be more likely to establish productive, long-term relationships with their customers. Small businesses may choose to structure their sales forces by product line, customer type, geography, or a combination of these factors. IMPLEMENTING After setting goals and establishing a plan for sales activities, the next step for the sales manager is to implement the strategy. Implementation requires the sales manager to make decisions related to staffing, designing territories, and allocating sales efforts. Staffing the most significant of these three responsibilities encompasses recruiting, training, compensating, and motivating salespeople. RECRUITING The first step in recruiting salespeople involves analyzing the positions to be filled. This is often accomplished by sending an observer into the field, who records the amount of time a salesperson must spend talking to customers, traveling, attending meetings, and doing paperwork. The observer then reports the findings to the sales manager, who uses the information to draft a detailed job description. The observer might also report on the characteristics and needs of the buyers, since it can be important for salespeople to share these characteristics.

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