Question

Clearly Explain how will you do in each step of the Sales Force Management if you need to recruit a new sales team for Audi A3.

And, Explain the type or profile of the sales professional that you are looking for Audi A3.

""(Note: The Sales force management steps we are using are 1. Designing sales force strategy and structure, 2. Recruiting and selecting sales people, 3. Training sales people, 4. Compensating sales people, 5. Supervising and Motivating sales people, and 6. Evaluating sales people)"". (300 words or more).

Answer 1

1) Designing sales force structure and strategy – The objectives give foundation to the individual objectives of the sales representatives. The objectives layout details on what the organizations focus will be. It can be focusing on new customers, new product, existing customers or existing products. Not only should the management focus on sales targets, but also market performance, customer relations and service, supporting the marketing functions. The objectives give platform for measuring the performance of the sales function and the salespeople. When developing the sales force structure, sales managers must:

• Figure out the right mix of generalists, product, market, or activity specialist with the objective of balancing sales force productivity. What is the right mix? That depends on the company and its offerings.
• Design a reporting structure that makes it easy to both coordinate and control the sales process and the activities of the salespeople.
• Help the sales people achieve their goals (and reduce stress) by providing training, coaching, incentives, information support, and performance management.

Designing Territories

The purpose of a sales force coverage (or sales territory) metric is to create balanced sales territories.

There are a number of ways to analyze territories. The most common approach is to assess them based on their potential or size. If there is a large difference between territories, or they change over time, sales people may have too much or not enough work. Too much work can cause the sales person to neglect some customers, while too little could lead to over-servicing the customers.

Before they even begin to design new territories, a sales force manager should determine the workloads of all members of the sales team. The workload for a territory is calculated as follows:

Workload (#) = [Current accounts (#) * Average time to service an active account (#)] + [Prospects (#) *

Time spent trying to convert a prospect into an active account (#)]

They should also determine the sales potential in a particular territory.

The sales potential in a territory can be determined as follows:

Sales potential ($) = Number of possible accounts (#) x Buying power ($)

2) Sales force size – the size of the sales force is determined based on the market attractiveness, competition, budget allotted to sales function and other environmental factors. It becomes difficult to analyze these elements in the form of data to arrive at an exact size of the sales force but it definitely gives direction in arriving at a certain figure. Basis these influences, the management can make changes to the salespeople deployed.

3) Recruitment and selection – For successful sales function it is imperative to have good salespeople. A perfect sales person can increase the customer base and profits for the organization. The human resource department seeks applications via company’s website, print ads, contacting recruitment agencies, etc. The selection process mostly focuses on the enthusiasm and self-confidence of the applicant. The person should have a pleasing personality and should be always ready to get into a conversation. The customers trust a person who is knowledgeable, helpful and appears trustworthy.

4) Training, Supervision and motivation – It is important that the salespeople are given ample training not only on the product but also on how the organization functions. Once a salesperson associates himself/ herself with the organization there is self-drive in the efforts. They need to identify with the organization. The training should be effective to ensure the sales representative is knowledgeable about the company’s product and the competition in the market. They need to be well versed in making sales pitch, handling customer’s queries and their key performance metrics.

The management has to direct and motivate the sales force to give it right direction. An efficiently managed salesforce successfully meets its responsibilities and tasks. The management needs to create a comfortable working environment and there should be flow of effective communication among the management, salesperson and the customers. Sharing complete company policies and procedures with the salespeople and training of the salespeople should be done when necessary.

Mostly financial rewards are considered the best rewards to keep the sales people motivated. The organization has to decide which factor keeps the sales person motivated. These could be financial rewards, recognition or a promotion.

5) Compensating – To ensure right sales people are selected there should be an appropriate compensation plan. Compensation involves elements like (1) fixed salary, (2) variable components like commission, rewards, bonus, etc., (3) expenses incurred in the field, and (4) fringe benefits (health benefits, company vehicle, club membership, etc.). The weightage to each of these elements should be assigned to give fair compensation as well as keep the salespeople motivated. It should justify the efforts and results given by the sales representative and his/ her team.

6) Evaluation and control of sales people – The management has to evaluate and control the entire sales function as well as individual salespeople. For the sales function as a whole, the management has to work on the training as well as proper allocation of resources to the assigned territories. If the results are not been met, an analysis needs to be done to ensure the correct strategy is being followed. For individual salesperson’s evaluation, the organization should maintain a database on the performance of individual salesperson as well as the team. The performance is measured according to a set performance standard determined by the management. The management should always analyze if the performance of an individual salesperson is correctly aligned with the compensation given. Else the organization stands a risk of losing a quality salesperson to a competitor with a better compensation criteria. The communication should always be open between the management and the sales people for proper exchange of feedback and solutions.

Profile for sales Manager

Customer Engagement

First order of business for a car sales representative is to engage with prospective customers and get them talking about what kind of make, model and price range you want. Come on too strong and the customer may balk; come on too soft and they may walk away or are swept off by a competing sales staffer. Good people skills are necessary for this role.

Knowing the Specs

Another duty of a car sales representative is to be familiar with the dealership's makes, models, features and pricing structures. This helps them make educated recommendations to customers and narrow the field of options. There is also a responsibility to know how to access information about what is on the lot and cars that can be brought in from elsewhere. Many customers have done their research before coming in, so it’s a car salesman’s job to be well educated, well-versed and able to converse and answer questions from customers.

Persuasiveness Counts

It’s a duty of the car salesman to keep the car selling process progressively moving forward. Meet the customers; find out what they want; identify potential choices; then get them out for a test drive. A sales representative almost always accompanies the potential buyer on the road, both to protect the dealership's property and to answer questions about the vehicle. The car salesman demonstrates all of the features as well, so the customer gets an informed overview of what the vehicle has to offer.

Handle Negotiations

If the customer is still engaged, the next stage of a car sales representative’s duties includes talking finances. This involves discussing trade-in value, discounts and rebates, special offers, financing options and lease-versus-own options. The sales representative is responsible for taking down basic information from the customer such as work history and Social Security number to check the prospect's credit rating, which will be a factor in determining interest rates. The sales representative will also begin to discuss pricing options, always working in the best interest of the dealership by knowing and recommending the loan structures that will be most profitable for the company.

Sealing the Deal

There’s often a lot of back-and-forth between a car salesman, the customer and the dealership finance manager in determining a final price for the vehicle. The car sales representative has a duty to act as the intermediary, working to facilitate a deal the customer is satisfied with, which simultaneously yields the highest return for the dealership. This involves a knowledge of bottom line costs, potential "add-ons" to offer and an understanding of how various pricing structures work. The final duty is getting an approved, signed contract and putting the customer in a vehicle.