368 The Marketing Book
Training
In addition to recruiting the most appropriate
people for the job based on the job specification,
every sales manager must try and improve
their subordinates’ individual effectiveness by
appropriate training. Much training is wasted
because it covers areas that the person already
knows about. For this reason, it is important to
separate induction training for new recruits
from that suggested for existing staff. Again,
planning is important, so the first stage, prior to
training, is to conduct some audit of training
requirements.
This is stage 1 in the process, determining
needs; stage 2 is designing the programme,
stage 3 is conducting the training and finally
evaluating the results. For example, one of the
leading pharmaceutical companies in the USA,
Merck, with a salesforce of 3000, have declared
that ‘training is the key’. To reinforce this, a
1993 study suggested that it is not the amount
of money spent on training that counts, but
how the money is spent. Higher performers do
not outspend lower performers, but they allo-
cate the funds in different ways. High perfor-
mers have longer induction training, three to
nine months, whereas lower performers spend
less than three months with new recruits. High
performers do less classroom and role playing,
but more on-the-job training. Training also has
an important role in establishing the values and
beliefs that an organization represents in estab-
lishing corporate culture within the salesforce.
Leadership and supervision
The ability to get the best from subordinates is
a valued characteristic and is referred to as
leadership quality. However, leadership is best
explained in the context in which it is exercised,
and sales managers should assess their leader-
ship style and its appropriateness to the people
and circumstances in which it is applied.
In today’s organization, where rationaliz-
ing, downsizing and restructuring are being
implemented, sales managers must encourage
their people to adapt and be flexible. Such
movers and shakers have been called trans-
formational leaders, who can get their sales-
people to perform beyond typical expectations.
However, in most situations, sales managers
who have not proved themselves by having
previously been a successful salesperson will
find it hard, if not impossible, to be convincing
in this role. Qualities thought to be important in
sales managers vary and often extend to a
variety of characteristics, usually ending with
an ability to walk on water and other superhu-
man powers.
Perhaps more revealing are studies that
reflect how salespeople feel about their boss.
The major complaints usually focus on the
following:
Managers do not spend enough time with their
salespeople.
They do not listen to salespeople’s concerns.
They do not take these concerns seriously.
They do not follow up to resolve problems.
Again, the difficulty may be that many sales
managers have not been trained in manage-
ment or prepared for the new skills and tasks
that they are now asked to perform.
Remuneration
Arguably, the most influential factor in the
motivational mix is remuneration, which can
incorporate basic financial rewards and special
incentives. Financial incentives are a popular
means used to motivate sales personnel. Sales
managers can remunerate salespeople using
salary, commission, bonus or a combination of
these. Most sales managers, based on their
experience, seem to feel that a balance of types
of remuneration is most appropriate. A recent
study found that most UK companies offer
combination remuneration comprising salary
and commission or salary and some form of
bonus, especially performance-related pay
(Donaldson, 1998a). This research also found
that a number of salespeople consider job