Chapter 8 Global Sales Training Sales Management: A Global Perspective
Introduction Sales
training can provide a variety of benefits that include Higher sales force performance Improved customer relationships More efficient time management Less need for management supervision Greater product and market knowledge More comprehensive understanding of firm policies
Importance of sales training
Critical because of cost of sales call
Salesperson must also be able to operate globally
Sales activities must be efficient Sales force must produce satisfied customers
Distinct language and cultures At great distances from headquarters
Training provides skills needed to succeed
Cultural Impact
Culture impacts the sales process
National culture shapes the content and presentation styles
As such, this impacts all training activities
e.g. Malaysia comprised of three groups Malay, Chinese, and Indian cultures can clash
Standardize technical skills, but modify “soft” supervisory skills to local culture
Need for Sales Training
Sales personnel, whether new or experienced, must be socialized
Work ethics, job expectations, and ways of conducting business
Training process complicated by introduction of race, creeds, and cultures Training allows firm to set standards for:
Job accuracy and job expectations
Discussion Questions
There are numerous potential benefits related to sales training—are there any potential downside? Why do you think some firms do not conduct sales training?
The Sales Training Process
Consists of six distinct stages:
Needs assessment Objective setting Plan training Conduct training Evaluate Follow-up training
Needs Assessment
The first stage is to determine the strengths and weaknesses of skills, knowledge and attitudes (SKA) of sales force Subjective assessment methods Upper management judgment Sales management judgment Training department judgment Objective assessment methods Interviews Surveys Performance measures End-of-course evaluations General assessment methods Organizational and sales training objectives Competitors’ sales training programs (benchmarking)
Training Objectives
Set objectives or goals of training program
Should set SMART objectives
Objectives address SKA “gaps” Specific, Measurable, Attainable, Realistic, and Timely Total sales revenue will increase by 5%, over the next six months, for the PBX product
Objectives communicate the expected outcome of the training program
Planning Sales Training
Methods – theme, scope, coverage, length, instructor, location, media and materials employed Firms can use formal and OJT training Culture impacts the translations of materials and the way instruction is presented Must be aware of time away from customers
Planning (continued)
Program length – formal training is one or two weeks in duration normally at a central location
Consult with local managers about holidays Length varies by:
Industry, company size, adoption rate of high technology, training budgets, and corporate culture
Sales personnel should be taught:
How to sell, company policies, product knowledge, local market conditions, and their clients’ culture
Planning (continued)
Training Methods
High-tech – computer based and interactive Lecture, programmed, case studies, coaching, role playing, business games, and discussions are also utilized
Training Location
Physical location and availability
Normally conducted off site for privacy Firms may select a centralized site
Planning (continued)
Instructor Selection
Sales manager, trainers, or consultants?
Training Topics
Select those that will satisfy objectives
Product, market, and company information, along with sales techniques, and socialization
Firms often spend most time on product knowledge and sales skills
Will vary by industry and desired performance
Conducting Sales Training
Put the planning stage into action Must remain flexible
Training team in India without power!
If a particular aspect of training not working as planned, it should be changed
Evaluating Training
Important to measure how well the training achieved the goals set However, many variables can complicate the evaluation of training There remain a number of ways to provide evidence of training success
Has funding been well spent? Did trainees learn and can they perform?
Levels of training evaluation
Reaction
Trainee response to the training program Getting accurate responses in some cultures
Scales Numbers Openness
Knowledge
Measuring the knowledge or skill attained
Tests/Exercises Early intervention to improve learning
Levels of training evaluation
Attitudes
About the customer, firm, and job Provides benchmark for how training applied Accuracy, objectivity, and friendship concerns
Results
What outcomes did training cause Most useful, but most difficult measure Many extraneous variables dilute measure
Other Evaluation Methods
Compare outcome(s) to training objectives
If objective was to increase sales of product PBX by 5% over the following 6 months; did this happen?
Utility analysis permits computation of sales training value
Managers compute cost and gain to compute an outcome utility Estimates lead to criticism
Follow-up Training
Sales training continual
Initial training to establish basic skills Follow-up training to reinforce basic skills, plus teach new skills, knowledge, and attitudes
Continual training imperative in global marketplace
Sales force may cling to local culture
E.g. not rewarding merit in former Soviet Union
Summary
Training provides benefits for the firm, the salesperson, and the customer Training consists of six stages, which are interconnected and dependent Culture making larger impact on programs
“Softer” skills directly influenced by culture
Difficult to evaluate training’s effect Training is an on-going activity
Discussion Questions
Are any sales training stages within the process more important than another? Why or why not? List as many reasons as possible why it is difficult to objectively evaluate sales training. Why is it important to conduct follow-up training? How can high-tech methods help with this responsibility?