Sales training for a worldwide marketplace
PLANNING SALES TRAINING
Once the needs and objectives of the sales training program are agreed upon, management next determines the content of the training program and the instructional methods to employ to transfer these topical areas to the sales trainees.
Methods
Methods refer to the theme, scope, coverage, length, instructor, location, media, and mate-rials employed in the training program. Training program content focuses on the type of instruction, topics covered, budgets, and details about how and what specific skills and abil-ities are imparted to the trainees.8
Global companies utilize both on-the-job (OJT) and formal training programs. Sales man-agers appear to be divided into different camps about OJT. For smaller firms, with limited training budgets and few salespersons to train, OJT is imperative. A well planned OJT pro-gram can transfer the needed knowledge in the form of an apprentice approach where new hires work in one or more firm areas and receive instruction and oversight from experienced company technicians and managers. On-the-job training works well when the technicians and managers are carefully selected, are motivated to help the newcomer succeed, and can respond to the questions and misunderstandings that may arise when a novice salesperson deals with clients. Firms may also utilize OJT as a way to provide the sales neophyte an opportunity to “practice” sales techniques learned in a formal training program.
Culture significantly impacts sales training. For example, Japanese salespeople receive on-the-job training in a ritualistic formal setting that insures that constructive criticism does not result in “loss of face” for the trainee.9Likewise, sales managers must move cautiously when transferring sales training methods. Because languages vary so dramatically, sales trainers must exercise caution in translating training manuals, and must be aware of the role language plays on thought and behavior patterns.10
Formal training means that a firm’s sales trainees attend a structured program, often at a central location. For example, newly hired personnel in Europe may travel to London to attend formal sales training provided by either headquarters staff or a combination of local and home office personnel. Formal training is an expensive undertaking, since each trainee is transported, housed, fed, and educated for a period of time. A secondary cost is the lost opportunity attributable to the trainees not being in their territories serving their customers.
Exhibit 8.1 details actual planning problems encountered in an emerging nation.
Training program length
Many sales training programs are one to two weeks in duration, but may last as long as a year. The formal classroom portion of the training program usually consumes six to eight hours per day and generates thirty to forty hours of training blocks or modules each week.
When planning training dates, local managers must be consulted to insure religious or ethnic holidays do not fall within the tentative schedule. Likewise, in Moslem countries, planners should schedule prayer breaks for the trainees.
Differences in training program length can be attributed to a number of variables: (1) industry type, (2) company size, (3) the adoption rate of high-tech training, (4) training bud-gets, and (5) corporate culture.11The final length of sales training programs is a compro-mise between the expected time required to transfer the skills, knowledge, and attitudes balanced against the time and expense that can be invested to develop these sales force assets.
Sales personnel in the global marketplace should be taught: how to sell (even when they possess extensive domestic selling experience), company policies and procedures, product line and performance information, and local market conditions. Trainees should also learn about their clients’ culture.
Participative and non-participative training methods
Participative training methods involve role playing, case methods, computer games, and OJT. Non-participative training methods include lecture, videos, and guest speakers. Each method contributes to successful sales training programs and should be considered in the planning stage.
A major Egyptian soft drink corporation hired a Middle Eastern training firm to plan and conduct a sales training program in Cairo for approximately seventy salespersons. Egypt is divided into three basic regions: Cairo, Alexandria, and Upper Egypt. Salesmen from Alexandria and Upper Egypt arrived and were eager to participate in the training program.
The principal instructor noticed that trainees who were assigned to sales territories around Cairo appeared to be less motivated and were absent more frequently from training modules. An investigation by the trainer uncovered several problems with the original plan-ning of the sales traiplan-ning program.
First, sales personnel from Alexandria and Upper Egypt were receiving expense money for their hotel and meals–including lunch–for the duration of the training program.
Salespersons who were assigned to the greater Cairo area received no expense payments even though a number of the trainees had to travel 30 km daily each way. The Cairo trainees also were required to pay for their noon meal, even though all trainees ate at the same time and location. Second, trainees from Cairo were often notified that they were to miss training in order to address an urgent problem with one of their customers. By this last action, upper management demonstrated that the training program was not very impor-tant and that training would be undertaken when it was convenient.
The lead instructor and president of the training firm were not surprised when nearly all trainees from the Cairo region rated their reaction to numerous aspects of the training program significantly lower than other attendees. The training consultants also pondered the effects of these shortsighted management policies on future sales performance and sales force retention.
Source. Ashraf M. Attia, “Measuring and Evaluating Sales Force Training Effectiveness: A Proposed and Empirically Tested Model,” unpublished Ph.D. dissertation, Old Dominion University, Norfolk VA.
High-tech training methods. The adoption of technology in sales training courses can be grouped into numerous categories: computer-based training, artificial intelligence, hyper-text, CD-ROM, training videos, video-streaming, and interactive multimedia (See Exhibit 8.2). Cost is an important factor in selecting and integrating high-technology methods into sales training programs. Likewise, resistance to change and company commitment are barriers to the adoption of high-tech training methods. Sales reps also complain about the intrusiveness of high-technology training methods that must be completed at night or week-ends.12However high-tech training methods, that can be conducted and communicated by experts via satellite or the worldwide web (www), will revolutionize sales training in the twenty-first century.13
EXHIBIT 8.2 COMMONLY USED HIGH-TECH TRAINING METHODS
Computer Based Training (CBT) CBT is any training that employs the computer as the focal point of instructional delivery. The use of software and computer equipment is used to aid in teaching. CBT is related to Computer Assisted Instruction (CAI), Computer Assisted Learning (CAL), and Computer Assisted Training (CAT)
Artificial intelligence (AI) Computer programs that are associated with human intelli-gence. That is, AI reasons and optimizes through experience. In sales, the trainee would inter-act with the AI program to learn reasoning and decision making that optimizes performance Hypertext The linking of related pieces of information by electronic connections. This refers to nonlinear writing that is followed through a world of text documents, normally on the Internet
CD-ROM An optional storage medium similar to the technology utilized in audio CDs.
This training medium exhibits low-cost reproductive capabilities but short-term currency problems. CDs can also function interactively with the trainee
Training videos Audio and visual presentations transmitted on VHS tapes. Videos can provide the latest information on product development, sales techniques, and product appli-cations. The currency of the information becomes dated quickly
Video-streaming Electronic meetings that enable participants at one site to interact with participants or instructors at a different location. With proper hardware and software, any computer can display video-streaming. Firms can also project video-streamed classes and meetings on to larger surfaces, such as screens
Interactive multimedia Computer-based training that includes video, audio, text graphics, and animation. By utilizing computer technology, the trainee can move through a course or module in a customized way that individually addresses his or her needs.
Source: Earl D. Honeycutt, Jr., Kiran Kirande, and M. Asri Jantan, “Sales Training in Malaysia:
High- versus Low-tech Methods,” Industrial Marketing Management, 31:7 (October), 581–7
Training methods. A wide variety of methods are employed in sales training programs:
■ Lecture mode is employed by most sales training programs. Although cost-effective and used for information transfer, it is not an effective method for skills training.
Experienced sales personnel like lectures, because they are able to engage in a two-way dialogue. Lecture methods are accepted in many cultures because a sage is providing guidance to the students.
■ Programmed instruction employs a narrative of facts and examples which are followed by questions that reinforce learning, and have been shown to be effective for knowledge acquisition and retention. This form of training may be assigned prior to formal training sessions or can be completed in the evening hours.
■ Case studies help improve trainee problem-solving skills. Trainees are presented with actual field problems and limited information that must be analyzed. This method permits trainees to present their solution and then be questioned about their method of analysis and problem-solving skills. Additional learning occurs by listening to the logic employed by colleagues and instructors.
■ Coaching is a superior training method where the sales manager observes the trainee in an actual or training situation and then offers guidance for improving performance.
For example, after a trainee calls upon a customer in the presence of the sales manager, the manager finds a quiet spot and asks the trainee specifically how one area could be improved. The manager should model the correct behavior and provide positive reinforcement for effective behavior.
■ Role playing requires trainees to play the part of either a salesperson or a customer. In this way one trainee can assume the role of the salesperson and attempt to gather information or proceed through the sales process. Many companies include video-taping of role-playing exercises so that study and critiquing of trainee behavior can take place.
■ Business games require the trainee to engage in activity that increases understanding of the product, company, or market. These games further one’s ability to understand why products work as they do, why the company requires certain actions, and how competitors react in the marketplace. Firms may use “in basket” exercises to simulate a day in the office. This includes making appointments, completing requests for quotations (RFQ), answering phone calls, and making a formal sales presentation.
■ Discussions with experienced salespersons permit the interchange of ideas and exchange of valuable information and experience. The participating salespersons must be carefully selected and portrayed as a role model.
Training program location
This decision is influenced by the physical location and availability of training facilities. While it may be convenient for managers and trainers to conduct sales training sessions at head-quarters, planners must select a training facility that is comfortable, adequate in regard to space and equipment, and private, so that trainees and managers are not distracted by normal work activities. For these reasons, training programs are often conducted off site or at special company training facilities that allow both instructors and trainees to focus on trans-ferring skills, knowledge, and attitudes with the minimum of interruptions.
1111
A number of global firms schedule the training location at centralized sites that are conve-nient for both trainees and managers. For example, one Asian company conducts all its train-ing at a hotel conference center in Manila, in the Philippines. The location is centralized, travel costs are economical for its Asian sales forces, the facilities are comfortable, and the total cost is significantly less when compared to conducting the training sessions in more expensive Asian locations. Similarly, IBM has a European training center, and Bank of America manages its sales training from offices in three global cities – Tokyo, Caracas, and London.14
Instructor selection
A critical question is: should the instructor(s) be internal or external to the firm? Larger companies have full-time sales trainers, assigned to a training department, that plan and conduct training seminars. These individuals possess successful sales experience, are formally educated in theories of adult learning, and are qualified to instruct sales trainees.
Consultants, who are viewed as “outsiders,” are perceived as being objective or less likely to support the firm’s position. One concern about engaging training consultants is that they may be less familiar with the firm’s products and their training program may be generic in content. Customization of a sales training program increases the consultant’s preparation time and the firm’s total training cost.
Content Training topics
Based upon the objectives set, planners next select the training topics that are to be taught in order to attain those objectives. That is, the trainees must be exposed to specific amounts of product, market, and company information, sales techniques, and socialization of company attitudes. In the United States, companies devote the majority of their time transferring product information and sales techniques.15However, the composition of training programs varies by culture.16 Whatever the mix of topics presented, trainees must understand the products and how to sell these products to their target customers. In effect, sales training planners must strike the correct balance between the topical areas. Time devoted to training topics will vary based upon industry market situation, and product line offered by the firm.
Sales training program content
Program content revolves around four topical areas: product knowledge, market knowledge, company information, and sales techniques. On average, firms report that they provide about 35 percent of training program time to product knowledge, 30 percent to sales techniques, 15 percent to market information, and 10 percent to company information and 10 percent to “other” miscellaneous topics.17
Different firms emphasize disparate training content to meet the unique industry environ-ment. That is, industrial firms report a higher percentage of product knowledge content, while consumer companies provide greater sales techniques. Also the content of higher performing firms differs from lower performing firms. Specifically, the training program content of top
performing firms offers a broader range of topics that include: market knowledge, industry knowledge, listening techniques, communication skills, and complaint handling skills.18
Successful companies also train their sales force to pursue a market orientation, which leads to longer-term buyer–seller relationships.19 The importance of customer-oriented selling was supported in a cross-cultural comparison of training programs in Saudi Arabia and the United States which concluded that, when contrasted with their Saudi counterparts, US salespersons spent significantly more time on customer-oriented sales techniques than on product-oriented selling activities.20