Tanner 09

Sales Management: Shaping Future Sales Leaders

Training and Developing the Sales Force Chapter 9

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Learning Objectives  Identify factors that help determine what types of training are needed by sales personnel  Summarize the inputs needed to design and deliver an effective sales training program  Explain why it’s important to assess the effectiveness of a firm’s sales training and what’s involved in the assessment  Distinguish the elements that contribute to effective and ineffective training programs 9-2 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

How Important Is Sales Training?  Trained reps are more knowledgeable about products and services  Understand markets in which they operate and the selling process  Able to better understand customers and deliver better service  Achieve higher sales and incomes  Greater job satisfaction because they’re successful

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Training Ratings of “Best Manufacturing Companies to Sell For”

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Training Ratings of “Best Service Companies to Sell For”

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2008 Training Updates: Selling Power’s Best Companies to Sell For Training ratings  Manufacturing: Microsoft is the only company receiving a score of 17  16’s were received by HoffmannLa Roche, Shaw Industries, Tellabs, Xerox, IBM, and Hormel Foods

 Service: ABF Freight System, Roadway, IKON Office Solutions–all received a score of 16 Source: “Best Companies to Sell For,” Selling Power, Nov./Dec. 2008, 28(9), 17-20. 9-6 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

The Training Process: 4-Stage Training Cycle

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The Training Process: 4-Stage Training Cycle

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Determine Objectives Assessment of Training Needs at Different Levels

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Identifying Knowledge, Skills, and Abilities (KSAs) Sources of Training Needs Information

Sources: Based on Erffmeyer, Robert C.; Russ, Randall K. and Joseph F. Hair, Jr. (1991). “Needs Assessment and Evaluation in Sales-Training Programs,” Journal of Personal Selling & Sale Management (11) 1, pp. 18–30; and Honeycutt, Earl D., Jr. (1996). “Conducting a Sales Training Audit,” Industrial Marketing Management 25, pp. 105–113). 9-10 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

Determine Who Needs Training  Training needs may vary depending upon rep’s experience level and the needs of the markets  Training needs may be identified from:  Quantifiable performance appraisal data  Customer satisfaction or CRM data  Training needs surveys taken by sales managers and reps

 After identifying needs, create training and development plan for reps  Plan should include courses rep should take at career milestones, training from outside vendors, job rotations exposure, etc. 9-11 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

Global Sales Management: Challenges of Training a Global Sales Force  Tailor sales training just as you tailor product and promotions to each country E lle s m e re Is la n d

A rc tic O c e a n B a n k s I s la n d

V ic to ria Is la n d

B a ff in

J a n M a y e n ( N o r.)

F a r o e I s . ( D e n .)

N o v a y a Z e m ly a

W ra n g e l Isla n d

N o rw a y

F in la n d

Ic e la n d

C anada

 Think globally, act locally I re la n d

Isla n d o f N e w fo u n d la n d

N o r th A tla n tic O c e a n

U n ite d S ta te s o f A m e ric a

 What’s important?

N o r th P a c if ic O c e a n

T he B ah am as

M e x ic o

A r cN etwi cS i b Oe r i a cn Ies l aa n nd s

F ra n z Jo se f L a n d

S v a lb a rd ( N o r.)

Isla n d

U .S .A .

P o rtu g a l

R u s s ia

E s to n ia L a tv ia L ith u a n ia B e la r u s N e th . P o la n d G e r m a n y B e l. U k ra in e C zech. A u s . H uS nl og v. a k . M o ld o v a F ra n c e S w itz . S lo v . C r o . Y u g Ro .o m a n i a B o s. Ita ly M a c . B u lg a r ia A lb a n ia S p a in G re e c e T u rk

Sw eden

U n ite d K in g d o m D en.

M o ro c c o

G e o rg ia A r m e n ia A z e rb a ija n

ey

C a n a r y I s la n d s ( S p .)

Jo rda n

A lg e ria

L ib y a

W e s te r n S a h a r a ( M o r.)

K u ril I s la n d s

K a z a k h s ta n

E gypt

U z b e k is ta n T u r k m e n is ta n

M o n g o lia K y rg y z s ta n

N . K o re a

T a jik is ta n

Cuba

C h in a

A fg h a n is ta n

Ira n

K u w a it

N epal

P a k is ta n

Q a ta r

Jam .

G u a te m a la E l S a lv a d o r

B e liz e H o n d u ra s

M a u rita n ia

H a iti P u e rto R ic o (U S )

D o m in ic a

B a rb a d o s

N ic a ra g u a

C o s ta R ic a

V e n e z u e la

Panam a

C o lo m b ia

G a la p a g o s I s la n d s (E c u a d o r )

Saudi

D o m in ic a n R e p u b lic

T r in id a d a n d T o b a g o G uyana S u r in a m e F re n c h G u ia n a (F r.)

M a li

Senegal T h e G a m b ia G u in e a -B is s a u G u in e a S ie rra L e o n e

N ig e r

C ô te D ’ Iv o ire

L ib e r ia

N ig e ria

B ang.

B ra z il

A n g o la

M a la w i

 Global training missteps

T h a ila n d

N a m ib ia

P a ra g u a y

V ie tn a m

S ri L a n k a

M a ld iv e s

F e d e r a te d S ta te s o f M ic ro n e s ia B ru n e i

U ru g u a y

C h ile

A rg e n tin a

M a rs h a ll I s la n d s

G u a m (U S A )

M a la y s ia

S in g a p o re

K irib a ti

In d o n e s ia P a p u a N e w G u in e a

S e y c h e lle s

Z im b a b w e B o ts w a n a

S o lo m o n

M ad ag a sca r M a u ritiu s

Is la n d s

F iji

In d ia n O c e a n

S w a z ila n d

N e w C a led o n ia

A u s tra lia

S o u t h A f r i Lc ae s o t h o

 Projector / power outage in India  US VP critical of Taiwanese partner  Local and outside reps treated unequally in Cairo S o u th P a c ific O c e a n

P h ilip p in e s

A n d a m a n I s l a n d s ( I n d Ci a a) m b o d i a

M o z a m b iq u e

Z a m b ia F r e n c h P o ly n e s ia ( F r.)

T a iw a n

M y an m a r (B u rm a) Laos

K enya

B u ru n d i T a n z a n ia

N o rth P a c ific O c e a n

B hu.

S o m a lia

U ganda

R w anda Z a ire

C ongo

B o liv ia

In d ia

Y em en

E th io p ia

C .A . R.

C a m e ro o n

G hana Togo E q . G u in e a

S a o T o m e & P r in c ip e

P e ru

A rUa . bA i .a E . O m an

D jib o u ti

B e n in

G abon

E cuador

E ritre a

Sudan

C had

B u rk in a F a s o

Japan

S . K o rea

C y p . L e b . S y ria Ira q Isra e l

T u n is ia

60°

A le u tia n Is la n d s ( U S A )

 Solidifying relationship between buyer and seller  Social interaction  Job titles and level of interaction

H a w a iia n I s la n d s U .S.A .

S e v e rn a y a Z e m ly a

A rc tic O c e a n

G r e e n la n d ( D e n .)

S o u th A tla n tic O c e a n

N e w Z e a la n d T a s m a n ia

F a lk la n d Is la n d s ( Is la s M a lv in a s ) ( a d m . b y U K , c la im e d b y A rg e n tin a )

Î le s C ro z e t ( F ra n c e )

S o u th G e o rg ia ( a d m . b y U K , c la im e d b y A rg e n tin a )

Sources: Ramusson, Erika (1999). “A Whole New World of Training,” Sales and Marketing Management (151) October 10: 80; Rivera, Ray J., and Andrew Paradise (2006). 2006 State of A n t a rLearning c tic a the Industry in Leading Enterprises: ASTD’s Annual Review of Trends in Workplace and Performance. Alexandria, VA: The American Society for Training and Development; and Sergio, Roman, and Salvador Ruiz (2003). “A Comparative Analysis of Sales Training in Europe: Implications for International Sales Negotiations,” International Marketing Review (20): 3, 304–328. 1. Honeycutt, Earl D., John B. Ford, and Antonis C. Simintiras (2003). Sales Management: A Global Perspective (2003). London: Routledge. 2. Honeycutt, Earl D., John B. Ford, and Lew Kurtzman (1996). “Potential Problems and Solutions When Hiring and Training a Worldwide Sales Team,” Journal of Business and Industrial Marketing 11:1 (Winter), 42–53.

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Self-Assessment Library  Go to http://www.prenhall.com/sal/  Access code came with your book

 Click the following  Assessments II. Working With Others A. Communication Styles 1. What’s My Face-to-Face Communication Style?

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The Training Process: 4-Stage Training Cycle

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Discussion Question  Describe the concept of a KSA and how it can be used in sales training  What are some KSAs you might expect from a new salesperson who has been in their job for 6 months?

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What Content Is Needed? Topics Commonly Covered

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Content Will Vary Based on Target Group  Programs for new hires

 Programs for more experienced reps

 Company orientation

 Advanced sales skills

 Product and market information

 Communication and presentation skills

 Selling processes

 Technology skills

 Technology skills

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Ethics in Sales Management: Can You Teach Sales Ethics?  Ethics training should involve a review of company’s code of conduct  Focus on specific business ethics dilemmas  Selling out-of-date products  Sending gifts to customers, value and timing of gift giving  Presenting false or misleading info and/or selling unproven solutions  Exaggerating extent of support your firm can offer customers  Filing inaccurate expense reports

 Can it pass the 60 Minutes test? Sources: Ferrell, O. C., J. Fraedrich, and Linda Ferrell (2002). Business Ethics: Ethical Decision-making and Cases. Boston: Houghton Mifflin Company, p. 444; Gilbert, Jennifer (2003). “A Matter of Trust,” Sales and Marketing Management (155) 3, 30–36; and Weber, John A. (2007). “Business Ethics Training: Insights from Learning Theory,” Journal of Business Ethics (70) 61–85.

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On-the-Job Training  Exposes new reps to practices, products, and customers immediately  New hire will learn to model the behavior of the more experienced rep

 Refresher courses for more experienced reps cover advanced sales skills  How to work with larger or more complicated customers or advanced products and services

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Integrating Technology  Keys to successful sales technology training include  Ensuring that reps see benefits of technology so they will accept and use it  Thoroughly training reps to use technology both in the field and out  Providing adequate tech support and follow-up training 9-20 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

Professional Development Activities  Professional speaking  Account management  Team selling  Negotiating contracts  Category management  Other advanced training conducted as part of an industry-wide seminar  Summer institutes or graduate courses offered by colleges, universities, and professional associations 9-21 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

Categories of Intellectual Behavior Important for Learning Cognitive Behaviors Affective Behaviors Psychomotor Behaviors

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Bloom’s Categories for Developing Effective Training Objectives

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Bloom’s Categories for Developing Effective Training Objectives

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Staffing the Training Program: Internal vs. External  Generally, internal trainer will have more credibility  Exception: new technology, training offered by developer

 Dedicated sales training team within the firm?  Large number of people needing immediate training?  Outside technology partner to facilitate delivery?

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Staffing the Training Program: Time  How frequently is the training needed?  Recurring program offered at regular intervals, it may warrant in-house development

 Is the program needed on a regular basis or is it only needed once?  Can it be rolled out gradually or is it needed immediately?  How involved do sales managers need to be?

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Staffing the Training Program: Costs  How does outsourced training compare pricewise to internal training?  If internal, will there be extra costs for researching content or creating materials  Additional staffing costs required?  Travel to training site?

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Selecting Delivery Method Instructor-Led

 Face-to-face training

On-Demand (Self-Paced)

 Access similar information online when and where needed

Web/Conference  Presenter delivers info remotely to trainees’ individual computers Calls Webcast / Webinar

 One-way flow of communication  Two-way flow of communication including feedback

Podcasting

 Delivering info to rep’s iPod™ or similar device

Wikis

 Web sites individual reps can put up on short notice and post to

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Frequency of Training Methods Used

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Discussion Question  Question: Which sales training format is preferred? Blended (inperson and online) or in-person?  Answer: Blended  Even though the combination inperson and online course may actually require more time commitment, research indicates sales personnel prefer it because they can control when they receive it and the pace they move through the material Source: Sales Performance International 9-30 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

Role-Playing and Avatars  Role-playing exercises  Requires rep to present information to a “client” (usually a sales trainer or another sales trainee)  Overcome sales challenges in real time

 Avatars: computer representations of humans  Provides consistent experience with a coach who does not tire  Available any time of the day or night  Can be used to train reps individually or in groups  Can be repeated until mastery is achieved 9-31 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

The Training Process: 4-Stage Training Cycle

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Scheduling the Training  Location  Travel, lodging costs  Lost selling time

 Psychological “readiness” of the trainees  Timing of the training in the sales cycle  Time to complete pretraining assignments

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Facilitate Learning Transfer 1

Training and field conditions similar

2

Provide opportunities to practice

3

Variety of situations to apply new material

4

Identify important features of the task

5

Opportunity to practice in the field

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The Training Process: 4-Stage Training Cycle

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Assessing the Results  Only 28% of sales trainers have a definitive method for measuring the value of their sales training Reaction Learning Behaviors Results 9-36 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

Value to Individual

Reaction

 Trainee feedback, training staff comments, supervisory feedback  Most frequently used method  Don’t show if anything was really learned and applied

Learning

 Measuring the amount of information participants mastered during the program  Doesn’t necessarily reflect if material can be applied productively back in the field

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Value to Organization

Behaviors

 Identifies to what degree trainees applied training principles and techniques to their jobs (learning transfer)  Research shows this level of evaluation has only a few shortcomings and is particularly useful

Results

 Whether or not an organization achieved objectives it sought by conducting training  More sales, fewer complaints, higher svc rating?  Difficult to tell if results are because of training or other factors  Utility analysis: looking at economic impact the training had by examining cost-benefit trade-offs of training program

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Discussion Question  What are some reasons that organizations have a difficult time evaluating the effectiveness of training?  Which measures do you feel are the best to use?

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Completing the Sales Training Cycle  Compare training results with initial objectives  Objectives met, program is considered a success  Often program will go forward with only minor modifications and updates

 Objectives not met  Majority did not systematically set specific objectives for their training programs  Without objectives to guide development of training, properly implementing and evaluating will be difficult

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Award-Winning Sales Training Programs  Companies that have received awards for their training programs share several characteristics; the programs  Include a front-end analysis of the performance, skills, and knowledge gaps of a firm’s employees using both internal and external metrics, such as customer satisfaction  Conduct analyses, surveys, and interviews of clients, customers, internal business leaders, and employees to identify the learning needs and desired outcomes at the corporate, business-unit, and individual levels  Link a corporation’s strategic objectives to the individual objectives of its employees 9-41 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

Award-Winning Sales Training Programs (continued)  Incorporate learning objectives in employee performance evaluations and promotional decisions  Use career management systems to align the competencies of the firm’s employees with its functions, track the degree of employee learning, support performance reviews, and enhance productivity  Hold managers accountable for complying with the individual development plans of their employees  Use corporate universities to provide a variety of learning models in creative and dedicated learning environments

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Best Practices for Sales Trainers Needs Assessment  Is the training tied to the organization’s mission and vision?  Can you understand the true nature of the problem/issue at hand, and what is needed to correct the problem?  Is training the appropriate solution, or can the problem be corrected by other solutions, such as changing the firm’s procedures, developing job aids, or modifying jobs?  Have you determined the learning objectives that will result in the desired changes?  Have you identified the knowledge and skills that will produce the desired new behaviors?  Can you determine the cost/budget constraints and develop suggested solutions within these constraints?  Can you identify the learning styles and needs of participants and incorporate them into the program’s design? 9-43 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

Best Practices for Sales Trainers (continued)

Content Development

 Does the program incorporate adult learning principles into all aspects of the training?  Does the content emphasize the essentials, not every possible detail?  Does the program provide participants with the materials they need without overwhelming them?

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Best Practices for Sales Trainers (continued)

Technological Proficiency

 Is the instructor up to date in the use of most current technology?  Is the instructor able to utilize the technology that best fits the learning situation, rather than using technology for the sake of appearances?  Can the instructor bring the course material “alive” via an effective presentation regardless of the technology used?

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Best Practices for Sales Trainers (continued)

Personal Professional Development

 Does the instructor have an interest in participants’ personal growth and learning? Evaluation

 Does the instructor seek feedback to improve the program?  Does the program include an evaluation process to capture information on the training’s effectiveness, learning retention by participants, and the use of learning related to the firm’s day-to-day business practices?

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Role Play: Home Fire Lights (HFL)  Home improvement company offering upscale outdoor living spaces  Sales training mgr took hands on approach  Creative sales lab where trainees could work with new products and design patio layouts  “Selling involves relationships, and the best way to train for that is in person, period!”  All new hires had 2 weeks of training at HQ  Follow-up training 6 months later  Yearly new product update course

 HFL HQ is 110 miles from nearest metro area  Sales training mgr resigned, reviewing plan for future 9-47 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

Role Play (continued): Assignment  Break into groups of 2 or 3  1 person is assistant sales trainer, has worked closely with sales training mgr for 3 yrs, believes training program is one of best in country  1 person is a rep chosen by all sales mgrs  % of training costs expensed to each sales mgr’s budget  Many believe time out of field is cutting sales and profitability

 Outline the direction HFL’s new sales training program should take    

Weigh pros and cons of different methods available Outline suggestions for new program Share results with class If you have 3 people, 2 need to convince president of approach

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Sales Manager’s Workshop: Promedia  You are district sales mgr for Promedia  One major responsibility is to make sure all reps are trained and able to sell complete portfolio of software

 Your boss emails concern about lack of field support for Financial Project Tracking software  Reps fired up about software at first, received training  Newsletter for about 3 months, nothing for 18 months

 Harder to sell than anticipated  Complexity, high cost, competition

 Reps would appreciate additional training, but they don’t want the training program – they want to know how to overcome specific issues related to selling the product  Conduct opportunity analysis to identify where in the sales cycle reps need extra training 9-49 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

Caselet 9.1: Justifying Cost of Sales Training  Chippewa Mowers mfgs and sells reel mowers  Expanding markets and customer base  Owner believes reps should be in front of customer, not in front of computer  Reps need to keep up with competition, produce nice presentations and proposals  Reps have difficulty with new CRM software  Owner: “Joe, show me what I got for my sales training investment” 9-50 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

Caselet 9.1 (continued): Questions 1. How should Joe evaluate whether or not his sales training was effective? 2. What approaches should Joe consider when evaluating the effectiveness of his training programs? Discuss the merits of each. 3. What ethical considerations are involved with this decision?

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Caselet 9.2: Transcontinental Imaging Company (TIC)  TIC has 1500 reps worldwide  Regional rep Bob feels training isn’t meeting his needs  Training is via Internet, lectures, infrequent seminars  Professional Development—Building sales skills  Work Group Training—Understanding the business unit you work in  Systems and Software Training—Understanding the tools to perform your job  Compliance Training—Focusing on ethics 9-52 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

Caselet 9.2 (continued): Transcontinental Imaging Company (TIC)  Bob has had 3 sales managers in past year, feels neglected  Each manager handles 40-50 reps

 Has trouble penetrating new accounts  Pay is based on commission

 Requested training during reviews, but nothing’s happened  Called corporate sales training supervisor, Claire Boston, who told him to read some books and work with his direct supervisor

 Bob decides to resign 9-53 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

Caselet 9.2 (continued): Questions 1. What potential areas of weakness can you identify in TIC’s approach to sales training? 2. Do you believe that TIC’s sales training is appropriate for its type of business and the number of salespeople it has? 3. Did Bob Sullivan do the right thing in resigning? What other steps could he have taken to improve his current situation? 4. In this case, who should take responsibility for a salesperson who needs help to perform at a higher level? What do you think of Claire Boston’s advice to Bob? What would you have said? 9-54 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

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