RAB Certifications Advertising Bureau Copyright 2011 Page 3 Leadership Develop your plan ... Failure to interview 8. Fear and intimidation 9. Not knowing answers 10

8 Sales Manager Skill Sets That Assure SuccessPresented at the NAB Show, Las Vegas, April 11, 2011

Radio Advertising Bureauwww.rab.com

Copyright 2011Page 1

8 Sales Management Skill Sets

www.RAB.comwww.RAB.com

PRESENTER John Potter

VP Training

Radio Advertising Bureau

RAB CertificationsRAB Certifications

• Certified Radio Marketing Professional

• Certified Radio Marketing Consultant

• Certified Digital Marketing C lConsultant

• Certified Radio Sales Manager

Sales Management Skill SetsSales Management Skill Sets

1. Leadership

2. Recruiting, Hiring, Firing

3. Compensation

4. Accountability

5. Sales Meetings

6. Budgeting

7. Pricing

8. Training




LeadershipLeadership

Management


Ethics

PoliciesPolicies

Performance

MBO

Budgets


Set goals and expectations

New business

Direct

Alternative RevenueAlternative Revenue

Interactive

Projects

Improvement

Action





Develop your plan

Budgeting process

Account management

Performance measurements

C i iCommunications

Pricing

Packages and promotions


Top 10 Most Common Management Mistakes

1. Assuming everyone is like you

2. Insufficient communication

3. Failure to listen

4 Thinking your title makes you right4. Thinking your title makes you right

5. Being reactive

6. Waiting too long to terminate

7. Failure to interview

8. Fear and intimidation

9. Not knowing answers

10. Allowing fear

Recruiting, Hiring, FiringRecruiting, Hiring, Firing

Pre-hiring assessment

Need

ROI

ConsiderationsConsiderations

Employee income

COS for company





Recruiting

Other industries

Other media

Clients

Your repsYour reps


Hiring ProcessJob description

Job posting

Expectations

EEOEEO

Advertise

Review applications

Interview

Check references

Extend offer


Hiring

Don’t tell too much

Set a positive tone

Explain interview

K th kill Know the skills

Take notes

Call in finalists

Third meeting

Check references

Extend offer in writing

Stay legal





Termination

Document performance

Meet with employee

Put in writing

H itHave witnesses

CompensationCompensation

Purpose of compensation plans

Reward performance

Motivate behavior


Two questions to ask yourself:

Am I getting the levelf ff l

Does my compensationplan adequately reward the level of effort, of effort, compliance

and performance thatI need from mysalespeople?

the level of effort, compliance andperformance?





Compensation plan elementsSelling goals

Business type

Business model

Business objectivesBusiness objectives

Management objectives

Common plansStraight commission

Salary plus commission

Guarantees


IncentivesCompetitive, individual, team

Rewards

Value = week’s income

CashCash

Trips

Electronics

Gasoline

Clothing

Spa

Paid time off

Recognition

AccountabilityAccountability

Sales SkillsCommunication

Prospecting

Telephone

Appointmentspp

Interviewing / listening

Solutions

Presentations

Closing

Service





Product KnowledgeYour station

Competition

Advertising

Marketingg


Conceptual AbilityMatching needs and solutions

Blend facts and emotion

Ad creative


Objective measurementPercent of goalRevenuePercentage over last yearNew business accountsNew business revenueNon‐Traditional RevenueAverage number of accounts on airAverage order sizeAverage order sizeAverage spot rateAverage rates per daypartPercent of orders in prime and non‐primeClient retentionReceivables within 90 daysNumber of written presentationsNumber of demo spotsAdvertiser successesClosing ratioAmount of Non‐Traditional RevenueInteractive revenue





How & When to Measure

Informal• On calls• In office

Formal• One-on-ones• Quarterly

Sales MeetingsSales Meetings

When to schedule

Punctuality

AgendaInformation

Ideas and resources

Improving

Action items

Ideas that workGood start

Positive attitude

Diplomatic

Refocus

Recognition

BudgetingBudgeting

Preparation

Historical

Year-long notes

Write a narrative

Local economyLocal economy

Advertising

Competition

Staffing

Pricing




BudgetingBudgeting

Involve your staff

Narrative

Top 20 analysis

Account-by-account projections

Personal goalsPersonal goals

BudgetingBudgeting

Put it into Excel

Local

Regional

National

O iOn air

Alternative revenue

Event

Digital

PricingPricing

The price?

Sell the Value!




PricingPricing

12 x 24 x 7 = 20162016 x 52 = 104,802

+ $1 ? + $10?

PricingPricing

Pricing mistakes

1. Serve least profitable clients2. No internal procedures3. Insufficient resources4 Not forecasting competitor reaction4. Not forecasting competitor reaction5. Incentivize only on revenue6. Hold prices too long7. No segmentation of clients8. Same profit margin9. Base on marketplace10. Base on costs

PricingPricing

Rate CardsFixed

Flexible

Rate ClassesAnnualAnnual

Pre-emptible

Number of commercials

Slow pay

Format targeted

Trade

Establish lowest rate




PricingPricing

Valuing CommercialsSupply & demand

CPP

CPMCPM

Attitude & belief

Clients

Salespeople

PricingPricing

Maximizing Yield(Average Unit Rate vs Revenue Per Ad)

2 000 units per week2,000 units per week

80% sold, 1,600 units

$160,000 revenue, $100 average

$160,000 revenue, $80 RevPAd

PricingPricing




TrainingTraining

What if you train your salespeople and they leave?

What if you don’t train them and they stay?

TrainingTraining

AreasProduct knowledge

Sales skills

Advertising

Marketingg

Advertiser categories

TrainingTraining

Two plans

New hires

Ongoing for existing sellers




TrainingTraining

Two plans

New hiresProduct (Radio) knowledgeStation knowledgeSales skillsAdvertising & marketing

O i f i ti llOngoing for existing sellersAnnual planOne hour per weekMultiple weeksHomeworkReview & QuizRewardReinforce

SummarySummary

1. Leadership

2. Recruiting, Hiring, Firing

3. Compensation

4. Accountability

5. Sales Meetings

6. Budgeting

7. Pricing

8. Training

8 Sales Management Skill Sets8 Sales Management Skill SetsThat Assure Success

John PotterVP/Training

Radio Advertising [email protected]

Documents

RAB Certifications Advertising Bureau Copyright 2011 Page 3 Leadership Develop your plan ... Failure to interview 8. Fear and intimidation 9. Not knowing answers 10