Sales Management Test #1 – Flashcards
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Personal selling
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direct communications between paid representatives and prospects that lead to transactions, customer satisfaction, account development, and profitable relationships
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sales management
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the planning, organizing, leading, and controlling of personal contact programs designed to achieve the sales and profit objectives of the firm
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1. achieving/exceeding performance goals for current period 2. developing the people reporting to them
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sales managers' 2 responsibilities
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solutions selling
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involves creating customer value by addressing important customer problems and opportunities through a supplier-customer relationship that is intimate
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sales teams
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multiple contacts being established between supplier and customer. Allows for a broader transfer of capabilities and communication
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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
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Sales management process steps
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sales management competencies
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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
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1. strategic action competency 2. coaching competency 3. team-building competency 4. self-management competency 5. global perspective competency 6. technology competency
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sales management competencies
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strategic action competency
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includes understanding the industry, understanding the organization, and taking strategic action
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coaching
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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
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sales force automation
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the integration of communication technology
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business strategy
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involves defining and articulating an overall business mission, developing specific business goals, and designing a strategy for achieving those goals
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business mission
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provides a sense of direction to employees and helps guide them toward fulfillment of the firm's potential
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business mission statement
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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
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organizational goals
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specific objective by which performance can be measured stated in terms of profits, sales revenue, unit sales, market share, survival and social responsibility
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strategy
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the means and organization uses to achieve its objectives
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generic business strategies
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all successful businesses focus on creating superior customer value by achieving on of the following market positions: low cost, differentiation, or niche
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low cost strategy
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vigorous pursuit of cost reductions from experience and tight cost control
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differentiation strategy
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creating an offering perceived as being unique, leading to high brand loyalty and low price sensitivity
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niche strategy
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servicing a traget market very well, focusing all decisions with the target market needs in mind, dominating sales with the segment
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market strategy
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set of integrated decisions and actions a business undertakes to achieve its marketing objectives by addressing the value requirements of its customers
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market segmentation
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involves aggregating customer into groups that have one or more common characteristics, have similar needs, and will respond similarly to a marketing program
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target marketing
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the selection and prioritizing of segments to which the company will market
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positioning
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occurs in the mind of the consumer and refers to how the consumer perceives the product, brand, company, and competition
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marketing mix
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product, price, place, promotion
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strategic implementation decisions
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a set of processes that organizations will develop to create customer value and achieve a competitive advantage
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go-to market strategy
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defines who will perform the activities for which customer
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sales process activities
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consist of the activities needed to serve the customer properly
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1. interest creation activities 2. prepurchase phase 3. purchasing phase postpurchase phase
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types of sales process activities
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interest creation activities
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include all the ways that customers can learn about the benefits of the product and company
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prepurchase phase
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customers are actively considering and evaluating competitive product offerings
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purchasing phase
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includes the set of activities culminating in a purchase
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postpurchase phase
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include delivery, installation, servicing of product, providing information, collecting payment
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telemarketing
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refers to customer contacts utilizing telecommunications technology for personal selling without direct face-to-face contact
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independent sales agents
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not employees that perform the selling function to exclusive contracts within specified geographic areas
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resellers
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channel members, retailers, and distributers who take title to the offering they sell to end users
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integrators
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a service supplier unaffiliated with specific products, who advice end customers has sought to help them with a complex choice
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alliances
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joint venture to sell products to specific markets
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supply chain management
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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
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customer relationship management
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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
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sales force program
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a tool for planning how the sales force will perform its role in achieving the firm's objectives
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account relationship strategy
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they types of relationship it intends to develop with its customers
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1. Transactional 2. Consultative 3. Enterprise
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Types of relationships
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transactional relationship
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the relationship is based on the need for a product of acceptable quality, competitively priced, and a process and relationship convenient for the buyer
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consultative relationship
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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
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enterprise relationship
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the primary function is to leverage any and all corporate assets of the supplier in order to contribute to the customer's strategic success
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1. Transactional 2. Consultative 3. Enterprise
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Types of relationships
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transactional relationship
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the relationship is based on the need for a product of acceptable quality, competitively priced, and a process and relationship convenient for the buyer
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prospect profile
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a profile of what the best prospect looks like
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cold canvassing
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involves contacting prospective customers without appointments i.e. calling/knocking on doors
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1. direct mail 2. trade shows 3. directories 4. internet 5. referrals
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Ways to build a prospect list
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referrals
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a satisfied customer is asked to provide the names of other who might be interested in a product
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qualify prospects
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determine if the prospect is likely to be converted into a buying customer
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cost per call
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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
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direct selling expenses
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include expenses such as compensation, travel, lodging, entertainment, and communication
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breakeven sales volume
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the sales volume necessary to cover direct selling expenses
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1. single factor model 2. portfolio model 3. decision model 4. sales process model
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4 methods for setting account priorities
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single factor model
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examines a single customer characteristic often sales volume, to arrive an an initial allocation of sales calls
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portfolio model
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considers multiple factors when determining the attractiveness of individual accounts within a territory
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account opportunity
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portfolio model The magnitude of an account's present and future need for the salesperson's offering
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Competitive position
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portfolio model The strength of the salesperson's present relationship with an account
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decision model
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focusing on the response of each account to the number of sales calls made over a period of time
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salesperson response function
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develops the relationship between the number of sales calls over a period of time and sales to a particular account
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sales process model
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focuses on where the opportunity is in the selling process
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1. unqualified opportunities 2. Qualified opportunities 3. Best few opportunities
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Sales funnel categories
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unqualified opportunities
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possible need, but has not been verified with key people of the account
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qualified opportunity
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1. need=verified 2. confirmed intention to buy 3. Funding=approved 4. Identified time frame
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best sale opportunity
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all the buyers have been contacted and their needs identified, and in your judgment have been sufficiently developed to make the sale
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customer lifetime value
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the value of a customer is the sum of the customer's discounted flow of profit contributions of profit contributions into the future
