Sales Management Test #1

Personal selling
direct communications between paid representatives and prospects that lead to transactions, customer satisfaction, account development, and profitable relationships
sales management
the planning, organizing, leading, and controlling of personal contact programs designed to achieve the sales and profit objectives of the firm
1. achieving/exceeding performance goals for current period
2. developing the people reporting to them
sales managers’ 2 responsibilities
solutions selling
involves creating customer value by addressing important customer problems and opportunities through a supplier-customer relationship that is intimate
sales teams
multiple contacts being established between supplier and customer. Allows for a broader transfer of capabilities and communication
1. Focusing on the big picture
2. Roles of sale force
3. Structuring the sales force
4. Building sales competencies
5. Leading the sales force
Sales management process steps
sales management competencies
sets of knowledge, skills, behaviors, and attitudes that a person needs to be effective in a wide range of industries and various types of organizations
1. strategic action competency
2. coaching competency
3. team-building competency
4. self-management competency
5. global perspective competency
6. technology competency
sales management competencies
strategic action competency
includes understanding the industry, understanding the organization, and taking strategic action
coaching
a sequence of conversations and activities that provide ongoing feedback and encouragement to a salesperson or sales team member with eh goal of improving that person’s performance
sales force automation
the integration of communication technology
business strategy
involves defining and articulating an overall business mission, developing specific business goals, and designing a strategy for achieving those goals
business mission
provides a sense of direction to employees and helps guide them toward fulfillment of the firm’s potential
business mission statement
includes information regarding types of customers it wishes to serve, the specific needs to be fulfilled and the activities and technologies by which it will fulfill these needs
organizational goals
specific objective by which performance can be measured

stated in terms of profits, sales revenue, unit sales, market share, survival and social responsibility

strategy
the means and organization uses to achieve its objectives
generic business strategies
all successful businesses focus on creating superior customer value by achieving on of the following market positions: low cost, differentiation, or niche
low cost strategy
vigorous pursuit of cost reductions from experience and tight cost control
differentiation strategy
creating an offering perceived as being unique, leading to high brand loyalty and low price sensitivity
niche strategy
servicing a traget market very well, focusing all decisions with the target market needs in mind, dominating sales with the segment
market strategy
set of integrated decisions and actions a business undertakes to achieve its marketing objectives by addressing the value requirements of its customers
market segmentation
involves aggregating customer into groups that have one or more common characteristics, have similar needs, and will respond similarly to a marketing program
target marketing
the selection and prioritizing of segments to which the company will market
positioning
occurs in the mind of the consumer and refers to how the consumer perceives the product, brand, company, and competition
marketing mix
product, price, place, promotion
strategic implementation decisions
a set of processes that organizations will develop to create customer value and achieve a competitive advantage
go-to market strategy
defines who will perform the activities for which customer
sales process activities
consist of the activities needed to serve the customer properly
1. interest creation activities
2. prepurchase phase
3. purchasing phase
postpurchase phase
types of sales process activities
interest creation activities
include all the ways that customers can learn about the benefits of the product and company
prepurchase phase
customers are actively considering and evaluating competitive product offerings
purchasing phase
includes the set of activities culminating in a purchase
postpurchase phase
include delivery, installation, servicing of product, providing information, collecting payment
telemarketing
refers to customer contacts utilizing telecommunications technology for personal selling without direct face-to-face contact
independent sales agents
not employees that perform the selling function to exclusive contracts within specified geographic areas
resellers
channel members, retailers, and distributers who take title to the offering they sell to end users
integrators
a service supplier unaffiliated with specific products, who advice end customers has sought to help them with a complex choice
alliances
joint venture to sell products to specific markets
supply chain management
the integration and organization of information and logistics activities across firms in a supply chain for the purpose of creating and delivering god and services that provide value to customers
customer relationship management
a comprehensive set of processes and technologies for managing relationships with potential and current customers and business partners across marketing, sales, and service regardless of the communication channel
sales force program
a tool for planning how the sales force will perform its role in achieving the firm’s objectives
account relationship strategy
they types of relationship it intends to develop with its customers
1. Transactional
2. Consultative
3. Enterprise
Types of relationships
transactional relationship
the relationship is based on the need for a product of acceptable quality, competitively priced, and a process and relationship convenient for the buyer
consultative relationship
a relationship based on the customer’s demand and willingness to pay for a sales effort that creates new value and provides additional benefits outside the product itself
enterprise relationship
the primary function is to leverage any and all corporate assets of the supplier in order to contribute to the customer’s strategic success
1. Transactional
2. Consultative
3. Enterprise
Types of relationships
transactional relationship
the relationship is based on the need for a product of acceptable quality, competitively priced, and a process and relationship convenient for the buyer
prospect profile
a profile of what the best prospect looks like
cold canvassing
involves contacting prospective customers without appointments i.e. calling/knocking on doors
1. direct mail
2. trade shows
3. directories
4. internet
5. referrals
Ways to build a prospect list
referrals
a satisfied customer is asked to provide the names of other who might be interested in a product
qualify prospects
determine if the prospect is likely to be converted into a buying customer
cost per call
a function of the number of calls you make per day, the number of days available to call on customers and your direct selling expenses
direct selling expenses
include expenses such as compensation, travel, lodging, entertainment, and communication
breakeven sales volume
the sales volume necessary to cover direct selling expenses
1. single factor model
2. portfolio model
3. decision model
4. sales process model
4 methods for setting account priorities
single factor model
examines a single customer characteristic often sales volume, to arrive an an initial allocation of sales calls
portfolio model
considers multiple factors when determining the attractiveness of individual accounts within a territory
account opportunity
portfolio model
The magnitude of an account’s present and future need for the salesperson’s offering
Competitive position
portfolio model
The strength of the salesperson’s present relationship with an account
decision model
focusing on the response of each account to the number of sales calls made over a period of time
salesperson response function
develops the relationship between the number of sales calls over a period of time and sales to a particular account
sales process model
focuses on where the opportunity is in the selling process
1. unqualified opportunities
2. Qualified opportunities
3. Best few opportunities
Sales funnel categories
unqualified opportunities
possible need, but has not been verified with key people of the account
qualified opportunity
1. need=verified
2. confirmed intention to buy
3. Funding=approved
4. Identified time frame
best sale opportunity
all the buyers have been contacted and their needs identified, and in your judgment have been sufficiently developed to make the sale
customer lifetime value
the value of a customer is the sum of the customer’s discounted flow of profit contributions of profit contributions into the future