SALES MANAGEMENT SKILLS - PowerPoint PPT Presentation

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SALES MANAGEMENT SKILLS

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Motivation ... Increases Motivation. Forces Planning ... Motivation is an issue of direction and intensity. Need proper direction and intensity ... – PowerPoint PPT presentation

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Title: SALES MANAGEMENT SKILLS


1
SALES MANAGEMENT SKILLS
  • Behavioral Interviewing
  • Performance Based Management
  • Motivation

2
Research has shown a very low correlation between
standard interview judgments and performance
ratings.
Also relatively low agreement among interviewers.
3
EFFECTIVENESS OF INTERVIEWS
Behavioral interviews have been determined to be
much more effective than traditional interviews
in predicting future performance of candidates
4
UNDERLYING PRINCIPLE OF BEHAVIORAL DESCRIPTION
INTERVIEW
  • Behavioral consistency
  • Past behavior is the best predictor of future
    behavior

5
STEPS FOR DEVELOPING A BEHAVIORAL DESCRIPTION
INTERVIEW
Develop job description
Determine competencies
Develop 2-3 questions for each competency
Conduct interviews
Rate candidates on competencies
Make selection decision
6
PREPARING A JOB DESCRIPTION
  • Have sales personnel list main duties and
    responsibilities of job
  • Have sales managers list job duties (Exhibit 1)
  • Input from customers on what they think job
    duties should be
  • Tabulate results
  • Prepare list of job duties and responsibilities
  • Classify into major functional groups sales,
    service, territory management
  • Determine competencies needed
  • Submit to salespeople for input
  • Periodically revise

7
JOB DESCRIPTION HELPS IN
  • Hiring
  • Setting Objectives
  • Termination
  • Developing Compensation Plans
  • Training

8
COMPETENCY
  • Job-related knowledge, skills and abilities a
    person must have to perform a particular job.

9
COMPETENCY
  • Maturity
  • Describe an occasion in which you had to deal
    with a stressful situation?
  • Interpersonal Skills
  • Describe a situation in which you had to get
    people to do something they did not want to do?

10
BEHAVIORAL QUESTIONS
  • Often begin with Tell me about a specific
    situation in which you.
  • or
  • What did you do when?

11
INTERVIEW QUESTIONS
  • All questions are job related
  • Related to job description
  • Related to competencies
  • No biases, i.e. gender, age, ethnic (Exhibit 2)

12
USE S-A-R MODEL
  • SAR model helps develop behavioral interview
    questions
  • Situation situation faced
  • Action what action did you take
  • Results what was the result of the action taken
  • Exhibit 3

13
ASK LESS DIRECT QUESTIONS ABOUT COMPETENCIES
  • If competency was empathy for a sales job
  • Dont ask
  • Can you think of a situation where you had to
    show empathy?
  • Rather ask
  • In your last job Im sure you had to deal with
    upset customers. Can you think of a particularly
    difficult situation?

14
TAKING NOTES
  • Only on behavior description
  • Situation faced
  • Action
  • Results
  • Use only key words or phrases

15
BEHAVIORAL DESCRIPTION INTERVIEWS
  • Interview questions based on a thorough job
    analysis
  • Job candidates are asked very similar questions
  • Candidates answers are rated systematically
    (Exhibit 4)

16
Exhibit 4
Form for Integrating Interviewers Ratings
Position ______________________ Candidate
__________________
Competency Interviewer 1 Interviewer 2 Interviewer 3 Consensus
Competency 1
Competency 2
Competency 3
Competency 4
Competency 5
Competency 6
17
COMPETENCY RATINGS
  1. Far below minimum requirements
  2. Marginally below minimum requirements
  3. Just meets minimum requirements
  4. Marginally above minimum requirements
  5. Far above minimum requirements

18
INTEGRATING BDI WITH OTHER TOOLS
INITIAL INTERVIEW
APPLICATION FORM
INTENSIVE INTERVIEW(S)
REFERENCE CHECK
TESTING
DECISION
19
COMMON CONCERNS
  • BDIs usually take longer to prepare than
    unstructured interviews
  • BDIs favor people with experience
  • BDIs can be prepared for

20
PERFORMANCE BASED MANAGEMENT
21
THREE PROBLEMSOF SALES MANAGERS
  • Long Distance Direction
  • Long Distance Motivation
  • Situation-Specific Evaluation

22
PERFORMANCE BASED MANAGEMENT
SET OBJECTIVES
23
FOCUSES OF PERFORMANCE BASED MANAGEMENT
  • Results
  • Participative Management?

24
CRITERIA OF OBJECTIVES
  • Congruent
  • Compatible
  • Specific
  • Measurable
  • Time Frame
  • Written

25
HIERARCHY OF OBJECTIVES
TERRITORY
ACCOUNT
CALL
PERSONAL
26
TWO KINDS OF OBJECTIVES
  • Activity Objectives
  • Performance Objectives

27
USES OF OBJECTIVES
  • Evaluation
  • Motivation
  • Compensation

28
TWO TYPES OF ACTION PLANNING STATEMENTS
  • Do Statements
  • If Statements

29
EXAMPLE OF FORMAT FOR ACTION PLAN
  • Objective
  • Action Plan
  • Actions/Steps Required Timeframe/
  • to Achieve the Objective Completion Date

30
GUIDELINES FOR EFFECTIVE PERFORMANCE EVALUATION
INTERVIEWS
  • Purpose to improve, not discipline
  • Mutual problem solving
  • Make comments specific
  • Focus on performance, not personality

31
GUIDELINES FOR EFFECTIVE PERFORMANCE EVALUATION
INTERVIEWS (continued)
  • Emphasize your willingness to help
  • Reward insight and self-criticism
  • Listen actively
  • Use reflective summaries You feel that time
    management skills are good?

32
GUIDELINES FOR EFFECTIVE PERFORMANCE EVALUATION
INTERVIEWS (continued)
  • Use probing questions What can you do about
    that?
  • Minimize criticism, use sandwich technique
  • Allow catharsis, if frustration is present
  • Close with a summary and a plan

33
ADVANTAGES OF PERFORMANCE BASED MANAGEMENT
  • Directs Activities towards Broader Goals
  • Provides Better Appraisal Criteria
  • Increases Motivation
  • Forces Planning

34
INTEGRATING PERFORMANCE BASED MANAGEMENT WITH
OTHER POLICIES
  • Compensation
  • Budgeting
  • Training

35
EVERYONE IS MOTIVATED
  • Motivation is an issue of direction and intensity
  • Need proper direction and intensity

36
PERSON 1
proper direction not enough intensity
37
PERSON 2
proper direction and intensity
38
PERSON 3
wrong direction right intensity
39
FIVE THEORIES OF MOTIVATION
  • Needs Theory
  • Learning Theory
  • Goal Theory
  • Equity Theory
  • Expectancy Theory

40
NEEDS THEORY
  • We all have a set of needs
  • We experience satisfaction when we take care of a
    need
  • Dissatisfaction when we fail to take care of a
    need
  • We choose the direction and intensity we believe
    will satisfy our needs

41
IMPORTANT NEEDS
  • Existence needs
  • Physiological
  • Safety
  • Relatedness needs
  • Social
  • Growth needs
  • Self esteem
  • Self actualization
  • Understanding these needs can help us understand
    direction and intensity

42
To find out what really motivates people, you
have to learn how to look inside their heads.
43
LEARNING THEORY
  • Learn from consequences of behavior
  • Repeat behavior which is followed by positive
    consequences
  • Tend not to repeat behavior which is followed by
    negative consequences

44
ANTECEDENTS AND CONSEQUENCES DETERMINE FUTURE
BEHAVIOR
ANTECEDENT BEHAVIOR CONSEQUENCES OUTCOME
Is the report done? No way, Im swamped Thats OK, dont worry More excuses
Is the report done? A whole day early Good, now you can do another report Stops handing in reports early
Is the report done? A whole day early Good work here is a new account you can call on Continues to do reports early, leads to praise and new accounts
45
  • MAKE SURE APPROPRIATE DIRECTION AND INTENSITY
    ARE FOLLOWED BY POSITIVE CONSEQUENCES

46
GOAL THEORY
  • Goals specify a target (direction) for behavior
  • Goals give us an idea of the intensity needed to
    reach a target
  • The presence of a goal makes it possible to
    monitor progress

47
MOST EFFECTIVE GOALS ARE
  • Difficult (challenge)
  • Specific (to direct us)
  • Accepted
  • When people have goals they can usually motivate
    themselves

48
If you want to hit the mark, you need to know
where the target is.
49
EQUITY THEORY
  • Compare value of outcomes
  • Satisfied when ratio is just
  • Dissatisfied when ratio is not just
  • Compare our own outcome/input ratio to that of
    others

50
EQUITY THEORY (continued)
  • Satisfied when comparison is fair
  • Dissatisfied when it is not fair
  • Motivated to choose a direction and intensity for
    our behavior which we believe will lead to
    outcomes that are just and fair (i.e., equitable)

51
EQUITY THEORY (continued)
  • You get 5 commission for selling a line
  • JUST
  • You find out another rep got 6 for selling the
    same line
  • NOT FAIR

52
EXPECTANCY THEORY
  • Expectancies X Instrumentalities X
  • Reward Valences Motivation

53
KEY QUESTIONS IN EXPECTANCY THEORY
  • Expectancies
  • How will my effort affect performance?

Instrumentalities How will my performance be
rewarded?
Reward Valances How much do I value an increase
in the reward?
Motivational Level
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