A Study of Predictors of Sales Training Effectiveness:

With specific reference to Pharmaceutical Industry

By

Komal Khandelwal Das

Under the Supervision of

Dr. Ashwani Kumar Upadhyay

Associate Professor

Symbiosis Institute of Media and Communication, Pune 

Overview of the Study

o This study is designed with the objective of getting into the details of sales training and further understanding the factors that enhances the value of sales training among organizations, sales professionals and others.

o For the above mentioned purpose we have started by reviewing the relevant variables through detailed literature review.

o This review covers theoretical developments over a period of 54 years on sales personnel training over five decades (1962 – 2015).

Overview of the Study

o The literature review is followed by exploratory qualitative research carried on different sales professionals from Pharmaceutical industry.

o The emerging variables have been modeled and tested to establish a prominent relationship between the predictors and Sales Training effectiveness through quantitative data analysis.

Literature ReviewThe review identifies related theme to categorizeTraining effectiveness issues and significant ‘predictors’.

The, related literature is reviewed and categorized as :1. Sales training 2. Performance Evaluation3. Training Effectiveness4. Predictors of Effectiveness

◦ Organizational factors◦ Training Design factors ◦ Trainee’ Related factors

List of the major variables in the literature.

CONSTRUCT SOURCE

Trainee Characteristics General Self-efficacy Perceived Effort Pre-training, Motivation Supervisor Support Management Support Learning Orientation Trainees Content Satisfaction Perceived trainer performance Perceived usefulness of training Training Course efficiency Training Contents Training instructor Trainer’s Competency Training Format Training Effectiveness

Rasli, 2012 Huang, W, 2009 Long, L. K, 2005 Long, L. K, 2005 Jayawardana andPrasanna, 2008 Rasli, 2012 Sarin, Sego, Kohli, and Challagalla, 2010 Liu, 2007 Giangreco, 2009 Giangreco, 2009 Giangreco, 2009 Pelham and Kravitz, 2008 Dubinsky and Anderson, 2001 Rasli, 2012 Dubinsky and Anderson, 2001 Satin, Sego, Kohli, and Challagalla, 2010

Research Design

Mixed method research

Qualitative - In-depth interviews

Quantitative data – Survey of sales professionals in

Pharmaceutical industry

Initiated with exploratory research.

Followed by conclusive and Descriptive research

Research Questions

The literature review and qualitative study helped to prepare a basic framework and hypotheses for testing.

The research questions acknowledged from the literature eventually led to the development of the objectives for this research.

Followings are the three primary research questions in this investigation.

What is the current state of sales training practices prevalent in

the pharmaceutical industry?

What are the various organizational, individual and social

predictors that influence sales training effectiveness?

What is the strength of relationship between the predictors and

sales training effectiveness?

Research Objective

In the study the basic objective was to understand the Sales Training practices in Pharmaceutical Industry in India. The work also examines the relationship of Sales Training effectiveness with its various predictors.

Following are the specific objectives of this study:

To study the current status of sales training effectiveness in the Indian

pharmaceutical sector. To identify the organizational and/or individual

predictors which manipulate the effectiveness of sales training.

To evaluate the strength of association between the predictors and sales

training effectiveness.

To develop a model to map effectiveness of sales training.

To evaluate the critical success factors for pharmaceutical sales training.

Sample Size•The Qualitative data - In-Depth Interview of sales professionals, casted reference guide with open-ended questions based on research objectives and orchestrate 30 interviews of 26 trainees and 4 trainers.

[In qualitative research, saturation occurs within thirty interviews or less (Thompson, 2004)]

• In Quantitative the total number of questionnaires which are collected from the field is 432 in number. • More than10 % of the data missing were dropped. •Dropped 32 incomplete questionnaires.

•Therefore, the sample size for the study is 400.

Sampling Procedure / Method

Pharmaceutical Sales professionals Uttar Pradesh and Delhi

The cities included are Agra and Noida in the state of Uttar Pradesh

Used Judgment Sampling for Qualitative and Convenience for Quantitative research.

Analytical tools for Data Analysis used.

Exploratory data Analysis with help of SPSS 20 software.

Reliability test with help of SPSS 20 software.

Regression Analysis with help of SPSS 20 software.

Through qualitative research following major factors emerged:

Training content,

Time management,

Effective communication,

Innovativeness and creativity,

Pre-training motivation

Qualitative research

Perceived effort

Perceived usefulness of training

Learning Orientation

Training Content

Pre-training Motivation

Supervisor Support

TRAININGEFFECTIVENESS

Perceived trainer performance

Proposed Model For Predictors of Sales Training Effectiveness

Hypothesis

H1: Training Content influences Training Effectiveness.

H2: Perceived Effort influences Training Effectiveness.

H3:Pre-Training Motivation influences Effectiveness.

H4:Perceived Trainer Performance influences Effectiveness.

H5: Learning Orientation influences Training Effectiveness.

H6: Perceived Usefulness influences Training Effectiveness.

H7: Supervisor Support influences Training Effectiveness.

Construct Items Adapted from

Training

Effectiveness

Can carry out sales tasks well by use of skills learned during the training program. Can accomplish the job tasks effectively and efficiently due to skills acquired

during the training program. Using the latest, knowledge and skills taught during training would help me to

progress well. Make fewer mistakes because of effective training. The value of sales task enhanced after training. Capable of finish sales tasks rapidly and on time after training. Sales Training made the individual more presentable by improvement in

communication skills and body language.

Jayawardana,

and Prasanna

(2008)

Learning

Orientation

In sales routine, it is importance to learn innovative approaches to deal with the

prospects. It is important for the individual to learn from each selling experience. It’s imperative for a competent salesperson to continually improve the sales skills. How to be a superior salesperson is of primary significance to the salesperson. The salesperson should be interested in learning whole lot of novel things about

sales in the sales job.

Sarin, Sego,

Kohli, and

Challagalla

(2010)

Constructs, with Items and Source.

Supervisor

Support

The supervisor clearly communicates the importance of Sales Training. The supervisor believes that there are true merits of getting trained. The manager guides one on improving one’s sales performance. The supervisor uses a multiplicity of method to develop my sales skills. The manager helps the individual know about his/her performance.

Jayawardana, and

Prasanna (2008)

Training

Content

Individual found the training content/handouts very interesting. Trainees’ feel frustrated because the training content/handouts are

complex. Individuals enjoyed learning from the training content/handouts. The entire training was a great learning experience.

Liu

(2007)

Perceived

Usefulness

Undergoing Sales Training enhances individual’s effectiveness on the

job. Undergoing Sales Training makes it easier for the salesperson to perform

the sales job. Overall, the trainee find undergoing Sales Training useful for the sales

job. Sales Training increases trainee’s productivity. Getting trained improves trainee’s job performance.

Giangreco (2009)

Perceived Effort

The trainee had put a lot of effort during last sales training. It is important for the individual to do well in the sales training

program. Individual didn’t put much energy into the sales training program. Individual didn’t try very hard to do well in the sales training

program.

Long (2005)

Pre-Training

Motivation

Individual was motivated to learn as much as he/she could before

the sales training program. Trainee was willing to try harder before the training program to

understand parts of the sales training program which were harder or

difficult. Trainee was convinced to put more effort into the sales training

program than other fellow trainees. Individual was willing to exert considerable effort to learn the

contents of the sales training program.

Long (2005)

Perceived Trainer

Performance

The trainers were able to impart knowledge. The mentors were involved all participants. The supervisors managed time well. The trainers had in depth knowledge of their subjects.

Giangreco (2009)

Variables Type of variable Number of items in the construct

before pilot study.

Number of items in the construct after pilot

study.

Cronbach’salpha

Training Effectiveness Dependent variable 8 7 .810

Learning Orientation Independent variable 5 5 .873

Supervisor Support Independent variable 5 5 .752

Training Content Independent variable 4 4 .796

Perceived Usefulness Independent variable 5 5 .892

Perceived Effort Independent variable 5 4 .599

Pre-training Motivation Independent variable 4 4 .741

Perceived trainer performance Independent variable 4 4 .697

Pilot Study

Quantitative Data Analysis

Descriptive StatisticsMean Std. Deviation N

Training Effectiveness 5.4360 .79784 400

Training Content 5.2789 .95683 400

Perceived Effort 5.4152 .88333 400

Pre-training Motivation 5.4315 .85959 400Perceived trainer performance

5.4466 .81792 400

Learning Orientation 5.6141 .84343 400

Perceived Usefulness 5.5558 .79134 400

Supervisor Support 5.3151 .85893 400

Descriptive Statistics for the variables used in the study.

Sample Profile

The analysis indicated that a major percentage of the respondents had less than 5 years of work experience. 41.7%.of respondents had 6- 10

years of work experience.

Less than 5

years

42%6 – 10

years

42%

11 – 20

years

12%

Above 20 years

4%

Total sales experience in Pharmaceutical Indus-

try.

Less than 2

years

36%2– 5 year

s42%

6– 10

years

15%

More than 10 years

7%

Sales experience in the current company.

Less than 1 Week

42%

1 – 2 Weeks

25%

3 – 4 Weeks18%

More than a

Month16%

Duration of the sales train-ing program

Classroom LecturesCase studies

Group discussionOn the job training

Demonstration Role play

Video ConferencingInformal

In Basket ExerciseComputer Simulation

70.50%44.00%44.00%

40.00%39.00%

36.50%32.80%

14.50%11.80%

5.80%

Training methods used

Major bulk of respondents i.e. 41.5% reported that they attended sales training program less than a week . Whereas classroom was among the most commonly used method of training.

54.30%

38.50%34.00%

24.00%

15.80%15.80%

Trainer details

1%Others

Graduate 66.8%

Post- Graduate 31.9%

Education of respondent

Analysis of the chart shown below indicated that majority of respondents, 66.8% of them were graduates.

Yes 49%

No52%

Is Company a Multinational Corporation

Trainee8%

Exec-utive

(Entry Level)47%

Middle

Level Man-ager37%

Senior Level Manager

8%

Designation/Position

Research indicated that majority of the sales professionals in the pharmaceutical industry were aged between 25-35years occupying a large share of 68.3%.

Less than 25 years

14%

25 – 35 years 68%

36 – 45 years16%

More than 45 years

2%

Respondent’s Age

Data Analysis

Pearson Correlation 1 2 3 4 5 6 7 8

1 IT Adoption 1.000

2 Inventory Management .538 1.000

3 Supply Chain Responsiveness .507 .571 1.000

4 Lean Manufacturing .571 .637 .591 1.000

5 Technology Up-gradation .539 .645 .539 .610 1.000

6 Flexibility .596 .492 .528 .542 .538 1.000

7Quality

Management and tools

.665 .580 .551 .650 .609 .690 1.000

8 Awareness and Training .589 .536 .421 .485 .505 .474 .549 1.000

Correlation between variables

Model Summary

Model R ‘R’ SquareAdjusted ‘R’

SquareStandard. Error of

EstimateDurbin-Watson

1 .741 .548 .544 .53881 2.049

Predictors: (Constant), Awareness and Training, Supply chain Responsiveness, IT adoption, Inventory Management, Quality management standards and tools

Dependent Variable: Productivity Improvement

Regression

Analysis of VarianceModel Squares Sum Df Mean Square F Sig.

1

Regression 139.310 4 34.827 119.964 .000d

Residual 114.674 395 .290

Total 253.984 399

Constructs : (Constant), Awareness and Training, Supply chain Responsiveness, IT adoption, Inventory Management, Quality management standards and tools

Dependent Variable: Productivity Improvement

Model

Substandard Co-efficient Standard Co-efficient

T

Sig. Collinearity Statistics

B Standard Error Beta Tolerance VIF

(Constant) .733 .217 3.378 .001

Awareness and Training .292 .055 .290 5.358 .000 .391 2.560

Supply chain Responsiveness .249 .039 .268 6.443 .000 .659 1.517

IT adoption.177 .045 .187 3.921 .000 .501 1.996

Inventory Management .140 .043 .151 3.286 .001 .542 1.844

Quality management

standards and tools.177 .045 .187 3.921 .000 .501 1.996

Beta Coefficients and Multi Collinearity statistics

Normal P-P plot

Results

Following variables significantly contributes to the prediction of Sales Training Effectiveness–

Perceived Usefulness

Supervisor Support

Learning Orientation

Pre-Training Motivation

Research Opportunities in Contemporary Sales Training

• How training can be used for providing strategic advantage?

• How management can ensure training is aligned to customers needs and selling process?

• How to manage the role of sales manager in salesperson development?

• How analytics can be incorporated to improve coaching and mentoring?

• How sales training can be delivered through emerging technology?

• How an organization can use sales training to reinforce the code of conduct?

Concluding Remarks Every sales business sustains on sales-force

performance and optimal 'performance' can be achieved through effective training. Based on data analysis, this work proposes four pivotal dimensions as predictors of training effectiveness in the model.

The factors or predictors namely Perceived Usefulness, Learning Orientation, Pre-Training Motivation and Supervisor Support paves the path to Effectiveness through ‘formalized’ and ‘tailored’ training framework.

There is a demonstrable connection between significant predictors of training effectiveness and successful training.

Thanks