Sales Training

MGM 402
Sales Force Management

October 30, 2000 MGM 402: Sales Force Management

Dr. S. Basuroy
 Objectives
• Key issues in sales training
• Objectives of sales training
• Development of a sales training program
• Topics in sales training program
• Methods of conducting sales training
• How to measure costs and benefits of
training
October 30, 2000 MGM 402: Sales Force Management
Dr. S. Basuroy
 Issues in sales training
• Who should be trained?
• What should be the primary emphasis of the
training program?
• What should be the structure of the training
program?

• Training should be an ongoing process

October 30, 2000 MGM 402: Sales Force Management
Dr. S. Basuroy
 Objectives of sales training
• Increase productivity
• Improve morale
• Lower turnover
• Improve customer relations
• Manage time and territory

October 30, 2000 MGM 402: Sales Force Management

Dr. S. Basuroy
 Analyzing the Needs of the Sales Force
Objective Information Sources and Processes
Job Analysis
Analyze Needs Job Description
Sales Force & Marketing
Sales Managers
Evaluation of Previous Training Programs
Customers

Review Needs
Consider Short-Term and Long-Run Issues
Determine Objectives Compare Training Objectives with Company Goals

Evaluation of Previous Training Program Methods

Consider Cost/Benefits of Various Training Methods
Establish Training Budget
Develop Training Materials
Train the Sales Trainers
Develop Program Establish Timing
and Implement Selecting Locations
Develop Monitoring Systems

Monitor Program

Analyze Reactions, Learning Behavior, and Measure Results

Program Evaluation Conduct Cost/Benefit Analysis
and Review Revise Program if Needed Before Next Sessions
October 30, 2000 MGM 402: Sales Force Management
Dr. S. Basuroy
 Length and Cost of Sales Training for New Hires
Training Period for
New Hires
(Months) Cost
Company Size
Under $5 million 4.4 $5,500.0
$5-$24.9 million 4.2 8,141.1
$25-$99.9 million 3.7 8,090.0
$100-$250 million 1.7 7,400.0
Over $250 million 3.6 7,000.0
Product or Service
Consumer products 3.4 5,354.2
Consumer services 3.3 4,537.3
Industrial products 4.8 9,893.5
Industrial services 4.8 9,060.5
Office products 3.8 6,269.4
SOURCE:
Office services 3.2 6,200.0
Dartnell’s 30th Sales Type of Buyer
Force Compensation
Survey: 1998-1999 Consumers 3.3 4,220.5
(Chicago: Darnell Distributors 3.9 7,256.5
Corp., 1999), p. 143. Industry 4.3 8,234.2
Retailers 3.2 6,711.0
October 30, 2000 MGM 402: Sales Force Management
Overall 3.9 $7,079.8
Dr. S. Basuroy
 Length and Cost of Sales Training for Experienced Reps

Hours per Year of Selling

Ongoing Training Skills Product (%) Cost
Company Size
Under $5 million 30.1 40.7% 60.0% $3,752
$5-$24.9 million 36.1 44.6 53.3 3,947
$25-$99.9 million 31.0 45.4 47.6 3,902
$100-$250 million 25.2 43.4 56.9 5,365
Over $250 million 38.0 44.2 51.3 4,824
Product or Service
Consumer products 35.8 44.1 50.1 4,039
Consumer services 33.9 49.3 47.5 3,623
Industrial products 31.6 37.1 58.9 5,149
Industrial services 30.8 41.8 53.9 4,867
Office products 41.8 38.0 59.0 4,261
SOURCE:
Office services 33.3 45.2 56.0 3,470
Dartnell’s 30th Sales Type of Buyer
Force Compensation
Survey: 1998-1999 Consumers 36.2 45.3 53.4 3,142
(Chicago: Darnell Distributors 35.7 40.2 55.1 4,168
Corp., 1999), p. 145.
Industry 31.5 43.2 55.2 4,605
Retailers 32.9 43.7 51.9 4,181
October 30, 2000 Overall MGM 402: Sales 32.5
Force Management 43.6% 54.0% $4,032
Dr. S. Basuroy
 Sales Training Topics Desired by Organizations
SOURCE:
“Study Reveals Sales-
Training Needs of
Business Marketers,”
Marketing News,
March 13, 1989, p. 6.
October 30, 2000
Training Topics Desired Most
Effective Listening 34%
Closing and gaining commitment 32%
Maintaining self-motivation 27%
Time management 25%
How to cold call 24%
Percentage of Respondents
Training Topics Desired Least
Following up with clients 5%
Providing service after the sale 5%
How to differentiate your product/service 4%
Developing workable territory plans 3%
Prioritizing accounts 3%
Percentage of Respondents
Courtesy of Learning International
MGM 402: Sales Force Management
Dr. S. Basuroy
 Sales training methods
• On-the-job training
• Classroom training
• Role playing
• Electronic training methods

October 30, 2000 MGM 402: Sales Force Management

Dr. S. Basuroy
 Evaluation Options Matrix

Evaluation Level Information Required Method

(What is the Question?) (What information to Collect? (How to Collect?)
Reaction Evaluation
Attitudinal Questionnaires
(Did participants Comments
respond favorably to Anecdotes
the program?) Interviews with participants
Learning Understanding of concepts, Before and after test
(Did participants learn ability to use skills
concepts or skills?)
Behavior On-the-job behavior Behavior ratings (before
and after)
(Did participants
change their on-the-job Critical incident-type
behavior?) techniques
Time-series analysis
Results Changes in sales, Cost-benefit methods
(What personal or productivity, or other
organizational performance outcomes
results occurred?)

October 30, 2000 MGM 402: Sales Force Management

Dr. S. Basuroy
 Key Lessons
• Key issues in sales training
• Objectives of sales training
• Development of a sales training program
• Topics in sales training program
• Methods of conducting sales training
• How to measure costs and benefits of
training
October 30, 2000 MGM 402: Sales Force Management
Dr. S. Basuroy