What are the challenges in sales organizations? Show
Buyers are What are the 5 trends in sales management? 1. Knowledge is power What are the characteristics of the Best Sales Organizations? - create a customer-driven culture throughout the sales organization and align sales operations with business and marketing strategies. What are the characteristics of Effective Sales Managers? -Role Models Describe the different types of sales jobs - Hunters, Pioneers, Order Getters - Focus on gaining new customers. Also, increase market share for their companies by adding new customers. - Farmers, Order Takers - Focus on servicing existing accounts. - Missionary Salespeople - Not responsible for actual sale; they provide info and other services. Ex: in the pharmaceutical industry is the detailed, a salesperson who provides physicians, nurses, etc. with info about drugs to support the overall sales effort. Describe each of the 4 key roles of salespeople 1. Financial Contributor Financial Contributor Change Agents Communications Agent Customer Value Agent Describe the trust-based selling process
Selling Foundations & Selling Strategy Based on Customer Needs & Value ——> Initiating Customer Relationships (Understanding customer value) ——> Developing Customer
Relationships (Creating and communicating customer value) ——> Enhancing Customer Relationships (Continually increasing customer value) Explain the meaning of each stage of the ADAPT questioning system Assessment Discovery Activation Projection Transition What does ADAPT stand for? Assessment Questions What is the SPIN Questioning System designed for? - Uncover a buyer's current situation and inherent problems. -Enhance the buyer's understanding of the consequences and implications of those problems. - leads to the proposed solution What does SPIN stand for and what do they each mean? Situation Questions (Current Situation) Situation Problem Implication Need Payoff What are the 5 key attributes for salespeople to demonstrate in order to build trust? What do they mean? 1. Customer Orientation Customer Orientation Competence or Expertise Dependability Candor or Honesty Compatibility How is the trust-based relationship selling different from transaction selling? Trust-based selling makes a relationship because In the future both the buyer and seller will need each other for some purpose. Transaction focused is one and done type sale where no relationship is necessary by either the buyer or the seller. Explain the meaning of Adaptive Selling Salespeople can modify their sales messages and behaviors during a sales presentation or as they encounter unique sales situations and customers. (Because salespeople often encounter buyers with different personalities, communications styles, and needs and goals.) What are the 5 personal selling approaches 1. Stimulus Response Selling Describe each of the 5 personal selling approaches Stimulus Response Selling Mental States Selling Need Satisfaction Selling Problem-Solving Selling Consultative
Selling What are the 3 trends in Sales Professionalism? 1. Complexity Explain each of the Trends in Sales Professionalism Complexity Collaboration Accountability What are the 4 Organizational Strategy Levels? 1. Corporate Strategy Describe each of the 4 Organizational Strategy Levels Corporate
Strategy Business Strategy Marketing Strategy Sales Strategy What are the 4 things completed at the Corporate Strategy Level? 1. Analyze the corporate situation to identify potential opportunities and threats. 2. Determine corporate mission and objectives. 3. Define strategic business units. 4. Set objectives and resource allocation for each strategic business unit. What is the purpose of a mission statement? Provide direction for strategy development and execution. What is an SBU? A designated unit within a corporation that operates like an individual business. For ex: NBC NEWS, The Weather Channel, and Universal Studios are SBUs to Comcast. Because they are apart of a larger entity being Comcast. What is the reason for defining SBUs? It allows a manager to formulate and implement internally consistent and coherent business strategies. Responsibilities of profitability, strategic planning and performance lie with the heads of the respective business units. Each SBU offers unique products and services. What is a Strategic Business Unit Portfolio? It is all the products in an SBU. They are similar to each other so they are managed together. Explain 4 SBU Objectives? What are the Sales Organization Objectives to accomplish with each? 1. Build market share Build market share Hold market
share Harvest market share Divest/liquidate market share What are the 3 generic business strategies? 1. Low-cost supplier Low-cost supplier
Differentiation Niche What is a Target Market? Book def - A group of customers with shared demographics who have been identified as the most likely buyers of a company's product or service. A particular group of consumers at which a product or service is aimed What are the 4 areas of strategy that make-up Marketing Mix Development? 1. Product Strategy What are the 4 areas of strategy that make-up the Marketing Communications Strategy? 1. Advertising Strategy What are the characteristics/circumstances when using Personal Selling Strategies? -
Few buyers What are the characteristics/circumstances when using Advertising Strategies? -Many buyers What is the meaning of Integrated Marketing Communications? The strategic integration of multiple marketing communications tools communicating a consistent message in the most effective and efficient manner. Are sales strategies developed for each individual accounts or for the firm's entire target market? They are developed for both. General strategies are developed for the target market and then tailored to the individual accounts. What are the 3 buying situations? Explain each? 1. New Task New Task Modified Rebuy Straight Rebuy Explain what is is meant by the term buying center? Why it is important for salespeople to figure out the members of the buying center? The term buying center has been used to designate the involvement of the many individuals from the firm that participate in the purchasing process. So we know the benefits for each specific Buying center member. What are the typical phases of the buying process? Phase 1. Recognition of a problem or need. What is the meaning of the term Account Targeting Strategy? The classification of accounts within a target market into categories for the purpose of developing strategic approaches for selling to each account or account group. What is the meaning of the term Relationship Strategy? A
determination of the type of relationship to be developed with different account groups. 1. Transaction Relationship In Chapter 2, 5 personal selling approaches were explained l. Which ones would be most appropriate for each type of relationship? Transaction - Stimulus Response & Mental States Solutions - Need Satisfaction & Problem Solving Partnership - Consultative Collaborative - Consultative & Customized What is the meaning of the term Sales Channel Strategy? Ensuring that accounts receive selling effort coverage in an effective and efficient manner. - The Internet Whether the Internet, Distributors, or Independent Representatives are used by a firm depends on the Sales Channel Strategy adopted by the firm. These are alternatives to using only a typical company sales force. Give an example of how the Internet could be used? - Increase reach Do distributors take title to the goods that they sell to other firms? Distributors take title to the goods and normally carry inventory. Do Independent Representatives take
title to the goods that they sell to other firms? They do not take title of the goods or carry inventory. Usually more experienced than in-house representatives and need less management and direction. If you hire them, you will be less likely to need a sales manager, and they will probably take much less of your time than in-house representatives will. Costs vs Control, manufacturer getting attention, level of account service for end customers. When would a centralized structure be best for a firm? All selling activities and all products to all customers Explain the team selling concept? Multiple individuals from the selling organization working together to develop and expand relationships with one or more accounts. Team selling is a strategy that includes 2 or more representatives from different company departments that collaborate to close more deals. Explain how Telemarketing is used by firms and why this sales channel would be used? Using the telephone as a means of customer contact. When integrated with field sales force, activities includes: - Prospecting, Qualifying Leads, Conducting Surveys. - Taking Orders, Checking on Order Status, Handling Order Problems. - Following Up for Repeat Business Why do firms try to achieve at Trade Shows? Trade shows are used to achieve both selling and non selling objectives. Relevant selling products are to test new products, to close sales, and to introduce new products. Non selling activities include servicing current customers, gathering competitive info, identifying new prospects, and enhancing corporate image. What is the definition of Specialization? - The degree to which individuals perform some of the required tasks to the exclusion of others. - Individuals can become experts on certain tasks, leading to better performance for the entire organization. What is the definition of Centralization? - The degree to which important decisions and tasks are performed at higher levels in the management hierarchy. - Centralized structures place authority and responsibility at higher management levels. What is the definition of Span of Control? - The # of individuals that report to each sales manager. - Management levels define the # of different hierarchical levels of sales management within the organization. ( Tall Sales Organization & Flat Sales Organization go under this) What is the definition of Line Positions and Staff Positions? - The sales manager has a line position. Salespeople report to him/her. In direct line with customer. Reports to people above him/her. - Staff are responsible for functions that support the sales force. They are not directly responsible for sales... When would a specialized structure be best for a firm? Certain selling activities for certain products for certain customers. Describe each of the sales organization structures. What are their advantages and disadvantages? 1. Geographic Geographic Advantages Disadvantages Product Advantages Disadvantages Market Advantages Disadvantages Product/Market Advantages Disadvantages Functional Advantages Disadvantages Strategic Account Organization may be used by a firm so it adequately serves some of the accounts. What is the meaning of the term Strategic Account?
- A large account (revenues) that is important for the firm so it receives special attention. To be one, it has to be sufficient size and complexity when working with the account. - Some terms used: National Account, Key Account, Major Account - Represents a type of market specialization based on account size and complexity. After identifying Strategic Accounts, the firm organizes to serve them. What are the 3 ways a firm May organize to adequately serve the accounts? 1. Develop Strategic Account Salesforce What are the 3 questions to answer in order to make Salesforce Deployment Decisions? 1. Analytical Approaches to Allocate Effort What are the 3 analytical approaches to the allocation of selling effort? 1. Single Factor Models Single Factor Models Portfolio Models Decision Models Hypothetical ex: Sales Response = Effort Sales Potential Salesman Quality What are the 3 things to consider in order to determine the size of the Salesforce? 1. Sales Productivity Sales Productivity Salesforce Turnover Organizational Strategies ( Firm, SBU, Selling Strategy) What are the 3 analytical methods for determining Salesforce size? 1. Breakdown Approach Breakdown Approach Salesforce size = Forecasted sales/ Average sales per salesperson Workload Approach # of salespeople = Total selling effort needed / Average selling effort per salesperson Incremental
Approach # of salespeople What is a Planning and Control Unit? The first step in territory design is to select the planning and control unit that will be used in the analysis - that is, some entity that is smaller than a territory. The total market area served by a firm is divided into these planning and control units, then they are analyzed and grouped together to form territories. What measure of opportunity in planning and control units is used most often? Market Potential When assigning salespeople to territories, the manager must consider the skills. Some sales managers consider their salespeople to be either farmers or hunters. Farmers are effective with existing accounts but do not perform well establishing business with new accounts. Hunters excel in establishing new accounts but do not fully develop existing accounts. Based on these categories, farmers should be assigned to territories that contain many ongoing account relationships, and hunters should be assigned to territories in new or less-developed market areas. Every forecast should be stated with results given in terms of 3 types of info. The results should be communicated with attention to this info. What are they? 1. What is
being forecasted? (Product Level) What are the 4 different type of forecasts? 1. Market Potential Market Potential Market Forecast Sales Potential Sales Forecast What are the 2 basic approaches to forecasting sales.? 1. Top Down Top Down Bottom Up When using the Top-Down approach to forecasting sales, company forecasts are developed using different methods. What are the 3 methods and explain how each of the following methods is completed? 1. Moving Averages Moving Averages Exponential Smoothing Decomposition Methods When
using the Bottom-Up Approach to forecasting sales, the forecasts are developed using 3 different methods, what are they? 1. Survey of Buyer Intentions Method Survey of Buyer Intentions Method The Delphi Method (a form of jury of executive opinion) Salesforce Composite Explain how regression analysis may be used to forecast sales? - Statistical technique using predictor variables (factors) to forecast sales. Describe the Sales Management Model Describing the Personal Selling Function —> Defining the Strategic Role of the Sales Function —> Developing the Salesforce —> Directing the Salesforce —> Determining Salesforce Effectiveness and Performance This last one points too all of them except the first one. What is one benefit from developing territories based on good data?Aligned territories will result in balanced workloads for sales personnel, providing them greater earning potential, improved morale, and career satisfaction. This leads to higher motivation, lower staff turnover, and, most importantly, more sales. Territory mapping should also involve route optimization.
Which of the following is the key benefit of territory management?Sales territory management helps your reps use their skills, expertise and resources to focus on the most valuable leads, prospects and customers. Instead, sales territory management helps your reps use their skills, expertise and resources to focus on the most valuable leads, prospects and customers.
What should you consider when creating sales territories quizlet?select a control unit.. determine location and potential of customers.. determine basic territories.. assign sp to territories.. set up territorial coverage plans.. evaluate effectiveness of design.. What are five of any seven benefits reasons why companies establish sales territories explain in brief?The six basic reasons for establishing sales territories are (1) enhance market coverage, (2) keep selling costs at a minimum, (3) strengthen customer relations, (4) build a more effective sales force, (5) better evaluate the sales force, and (6) coordinate selling with other marketing functions.
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