1. Knowledge of: firm's long and short-run goals and objectives, production process, consumer behavior, competitors

2. Functional skills: market forecast, design of sales organization, recruiting and selecting salesperson, training, budgeting, compensation, territory and quota design, sales analysis, developing sales approach, customer service, order processing, credit and collection, promotion

3. Administrative ability: planning, organizing, coordination, motivating, evaluation and control, communication

4. Leadership ability
 

1. Job Requirements: job specifications and classification; use of product and market matrix to write job specifications

2. Selection criteria: education, experience, characteristics; knock-out factors

3. Recruiting: sources, interview, test, and reference
 

• Determine coverage, number of customers, call frequency, time required for each call. For example:

Total hours needed to cover the country/year, 11,370 hours

Number of hours available of each person and allocation
Total hours available per year: 40 hr./wk x 48wk/yr = 1,920
Allocation: sales call, 45% (864 hrs.), traveling, 25% (480 hrs) and non-sales activities, 30% (576 hrs.)

Sales force size = 11,370/864 = 13+

S: Projected sales volume (in dollar or unit)
P: Sales potential /salesperson
T: turnover rate

Example: ($10,000,000/$1,000,000) x 1.2 = 12

2. Contents: product knowledge -company and competitors', market, sales techniques, company operating procedures..

3. Method: lecture, on-the-job training, demonstration, roles play, missionary salesman.....

4. Implementation: Who, where, time and scheduling,  place, teaching aids and facilities and equipment....

5. Evaluation

6. Cost estimate

1. Plan: Job and position evaluation; use industry norm method as a starting point

2. Compensation methods: commission, salary, bonus, psychic and combination of all these methods.

3. Compensation objectives: Fairness, based on productivity, motivation and incentive, income level and annual increase,
    industry parity, encourage team work, provide evaluation standards, clarity and written.

4. Compensation methods

a) Fixed salary- level and seniority
b) Commission
• Base: sales volume/unit, profit, account...
• Rates- fixed, progressive, regressive, split commission, trade-in, installment, sales return, commission pool, mail order...
• Payment: drawing accounts (amount and closing), house accounts
c) Bonus
       Source: house account, % of gross income, payment by annually or monthly? ..Evaluation methods- quota and
       points system; quantitative and qualitative evaluation

            Traveling, lodging, food and entertainment expenses

1.  Select a basic geographical unit: state, city, area code..
2.  Determine the demand potential of each basic unit and the number of customers
3.  Divide the area into equal demand potential territory
4.  Adjust for the number of customers, competition, territory size, productivity of salesperson, and workload.
 

1.  Consider market potential, competition and workload
2.  Type of quotas and evaluation: sales, new account....
 

Approach:

1.  Analysis saes by territory
2.  Analysis sales by customer type
3.  Analysis sales by product/line
4.  Analysis sales by Salesperson
5.  Combination of 1-4

• quotas- compare performances with pre-determined quotas
• internal average- compare with other regions, territories or salesperson
• industry average- compare with industry average

• competition
• varaition of customer
• economic condition

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