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Sales Training

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2006-08-29 20:38:28     
Article by Richard Romando

Formulating sales policies is the key task in sales training. Sales policies cover a wide range of areas including which products should find a place in the product line; whether some of the existing products should be dropped; whether any new products should be added; whether product design or product quality needs to be changed; what models, types, sizes, colors and packing should be sold; how product service should be provided, and what kind of product guarantees should be given are areas where policies have to be formulated by sales management.

Periodically, product line appraisals have to be made and necessary rationalizations and improvements effected. On the distribution side, channel design, channel types, channel remuneration and motivation, channel training and channel costs, are the areas where policies have to be made. On the pricing side, whether prices should match competition or whether they should be above or below competition; what kind of pricing method should be followed for each class of customer or order; what discounts and rebates should be given; what terms of delivery and terms of payment should be accepted; whether to make installment sales or offer limited credit facilities, or insist on cash down sales etc., are the areas where policies have to be framed.

Another key task involved in sales training is the structuring of the sales force. Organizations usually structure the sales force on a territory basis or on a product basis. In the case of territory based structuring, the same salesman handles all the products of the firm in a given territory. In the case of product based structuring, a number of salesmen operate in the same territory, each handling different products. Sometimes sales force structuring is based on the customer type or customer class. In yet other cases, sales force structure is finalized on a complex basis involving a combination of all the types mentioned above. The concept of territory however is very relevant in all types of sales structuring.

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