Sales Force Management
the management of the personal selling component of an organization’s marketing program
The formation of the strategic plan
1. How can the personal selling effort best be adapted to the COMPANY’S ENVIRONMENT and integrated with other elements of the firm’s marketing strategy?
2. How can various types of potential customers be best approached? persuaded? serviced? What ACCOUNT MANAGEMENT POLICIES should be adopted?
3. How should the sales force be ORGANIZED to call on and manage various types of customers as efficiently and effectively as possible?
4. What level of performance should each member of a sales force be expected to attain during the next planning period? This involves FORECASTING DEMAND and setting QUOTAS AND BUDGETS.
5. How should the sales force be deployed? How should sales territories be defined? What is the best way for each sales person’s time to be allocated within his or her territory? This involves decisions about TIME AND TERRITORY MANAGEMENT.
The implementation of the sales program
At least 5 factors influence a sales person’s job behavior and performance:
1. Environmental variables
2. Role perceptions
4. Skill level
5. Motivation level
Implementing a sales program involves designing policies and procedures so that the job behavior and performance of each sales person is shaped and directed toward the firms objectives and performance goals.
The evaluation and control of sales force performance
There are 3 major approaches that a company might utilize to evaluate and control the sales force and monitor sales program performance:
1. Sales analysis approach (Volume)
2. Cost analysis approach (Costs)
3. Behavior analysis approach
Involves selling goods and services to ultimate consumers for their own personal use.
real estate brokers
retail store clerks
Is the sale of goods and services at the wholesale level.
Involves 3 types of customers:
1. Sales to resellers (i.e., retailers)
2. Sales to business users (i.e., manufacturers)
3. Sales to institutions (i.e., hospitals or governments)
Product, Price, Place, Promotion
Stimulus Response Approach
Is based on the notion that every sensory stimulus produces a response. Sales recruits learn what to say (the stimulus) and what the buyers are likely to say (the response) in most circumstances.
Mental Sales Approach
Is based on the idea that a buyer’s mind passes through successive stages before he or she decides to make a purchase. Based on the AIDA theory of persuasion (Attention, Interest, Desire, Action).
Selling “formulas” are used to design a sales presentation that coincides with the buyers movement through the stages.
A.I.D.A and Hierarchy of Effects
Need Satisfaction Approach
Is based on the idea that customers are to be served rather than products sold.
Customers needs are the starting point in making a sale. The sales person’s task is to identify the prospects needs, make the prospect aware of that need, and then persuade the prospect that his or her product or service will satisfy that need better than any other alternative.
Ex: You go in and assess their problem and offer a solution.
Problem Solving Approach
Is similar to the need-satisfaction approach except that the sales person goes one step further to help the prospect identify SEVERAL alternative solutions, analyze their advantages and disadvantages, and select the best solution.
EX: You go an assess their needs and recommend a competitor. You lose the short term sale, but you gain their trust.
is the method or system by which sales people learn the names of the people who need the product and can afford it.
includes all the information gathering activities necessary to learn relevant facts about the prospect and his or her needs and situation.
1. To qualify the lead or disclose the party’s needs and ability to pay.
2. To provide information that will enable the seller to tailor the presentation to the prospect.
3. To provide information that may keep the sales rep from making serious tactical errors during the presentation.
4. To increase the sales reps confidence to feel able to handle what ever may arise during the sale.
5. To impress the prospect that the sales rep is diligent and
All publicly traded companies have to release this.
Has all the co. info on it.
Privately traded co. do not have to release this.
Buyer for a manufacturer
Group of people buying your product; diverse group
Buy from a department instead of a company has a whole
Headquarters purchases everything
inspires interest in hearing more about the proposition, makes an easy transition into the presentation, and gets the prospects attention.
A.I.T.- Attention, Interest, Transition
the sales rep merely introduces him/herself and identifies the company he or she represents
the sales rep opens the interview with a plea for information or permission to investigate the company’s problem
consists of handing the product to the prospect, with little or no conversation
the sales rep selects a benefit package that will likely be of most interest to the prospect – based on what is known about the situation.
the sales rep receives permission of past or present customers to use their names as a reference in meeting a new prospect
the sales rep opens the sale by getting the prospect to talk about the problem
If someone does something for you, you do something for them.
Ex: quid pro quo
the main body of the sale where the sales rep presents the product or proposition and shows the prospect its benefits
selling price-performance benefits to purchasing agents
Price, performance, trade-off.
Value Equation: (How you value an exchange) Utility/Price
High Margins, High Pricing
sellers form partnerships with business function managers whose processes they improve
ROI: Get back/Give
Ex: Put $1000 dollars in the bank, get $100 back in interest. ROI=10%
**You have to have propitiatory info
prepared sales presentations. (Not B2B)
1. gives new sales people confidence.
2. can utilize sales techniques proven effective.
3. gives some assurance that the complete story will be told.
4. greatly simplifies sales training.
objections should be welcomed and indicate that the prospect has some interest in the proposition; mostly means they are serious about buying the product/service
The Assumptive Close
merely assume prospects are going to buy and begin taking orders by asking questions
The Physical Action Close
hand the prospect a pen as an indication it’s time to sign
The Standing Room Only Close
sales rep tells prospect the product is hard to get in the hopes that the prospect will sign the order
The Trap Close
using the prospects objections to close the sale
The Special Offer Close
giving the customer a special offer to induce them to buy
Strategic Business Unit
is a part of the company that has a separate mission and objectives, and that can be planned for independently from other company businesses
All of the businesses a larger business owns
EX: Proctor & Gamble
Boston Consulting Group Growth Share Matrix
Plotting Relative Market Share and Market Growth Rate
HIGH relative market share and HIGH market growth rate
Self sufficient: not generating a lot of money but not losing a lot of money either
LOW relative market share and HIGH market growth rate
Operating at a loss
HIGH relative market share and LOW market growth rate
LOW relative market share and LOW market growth rate
Self sufficient: not generating a lot of money but not losing a lot of money either
Business Unit Strategy
Whereas corporate strategy addresses decisions across business
units, a separate strategy must be developed for each strategic
The essence of a business unit strategy is to determine how the
business unit can develop a competitive advantage over its
Low Cost Strategy
position a supplier as a high volume producer with tight cost and overhead control. Capitalizes on economies of scale. Associated with relatively high market share.
EX: Walmart, high market share
the creation of something perceived industry-wide as being unique. Provides insulation against competitive rivalry because of brand loyalty and decreased price sensitivity.
serving a particular target market, although market share in the industry might be low, the firm dominates a segment within the industry
attempt to pioneer in both product and market development
offer a limited, stable product line to a predictable (i.e., nonchanging) market. Emphasize being the low-cost producer
pioneer in new products and markets while at the same time retain a foothold in mature markets
don’t do anything proactive, they simply attempt to survive by reacting to environmental conditions
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