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Sales Management 761
Jim Stoddard
AN OVERVIEW OF CONTEMPORARY SALES MANAGEMENT 3
1. PLANNING: 3
2. IMPLEMENTATION: 4
3. EVALUATION AND CONTROL: 4
AN OVERVIEW OF PERSONAL SELLIN 5
1. ALTERNATIVE SELLING TECHNIQUES 5
2. PROSPECTING 6
3. THE PREAPPROACH 7
4. Qualifying the prospect: 7
5. THE APPROACH 7
6. THE PRESENTATION 8
7. MEETING OBJECTIONS 9
8. CLOSE 9
9. FOLLOW-UP CAREER STAGES 10
CORPORATE, BUSINESS, AND MARKETING STRATEGIES 11
1. PORTER'S TYPOLOGY OF COMPETITIVE STRATEGIES 12
2. MILES AND SNOW COMPETITIVE STRATEGY TYPOLOGY 12
ACCOUNT MANAGEMENT AND ACCOUNT COVERAGE STRATEGIES 14
1. COMMUNICATION TASKS APPROPRIATE FOR PERSONAL SELLING 15
2. PARTICIPANTS IN THE ORGANIZATIONAL BUYING PROCESS 16
ORGANIZING THE ACTIVITIES OF SALES MANAGERS AND SALES PEOPLE 17
1. ECONOMIC METHOD OF DETERMINING IF OUTSIDE AGENTS ARE APPROPRIATE 18
2. CONTROL AND STRATEGIC CRITERIA FOR DETERMINING IF A COMPANY SALES FORCE SHOULD BE USED 18
3. HORIZONTAL ORGANIZATIONAL STRUCTURES 19
ALLOCATING SELLING EFFORT AND DESIGNING SALES TERRITORIES 22
STAFFING THE SALES FORCE: RECRUITMENT AND SELECTION 24
1. CONTENT OF THE JOB DESCRIPTION 24
2. METHODS FOR DECIDING ON SELECTION CRITERIA 25
3. SOURCES OF RECRUITS 25
CONTINUAL DEVELOPMENT OF THE SALES FORCE: SALES TRAINING 27
SALES FORCE MOTIVATION 30
MANAGING SALES FORCE REWARD SYSTEMS 33
LEADERSHIP 36
DEMAND ASSESSMENT AND SALES QUOTAS 40
EVALUATION AND CONTROL 45
PERFORMANCE EVALUATION 48
ACKNOWLEDGEMENTS 50
CHAPTER 1
AN OVERVIEW OF CONTEMPORARY SALES MANAGEMENT
Sales force management is the management of the personal selling component of an organization's marketing program.
The activities involved in managing the personal selling function include:
1. The formation of the strategic plan (PLANNING).
2. The implementation of the sales program (IMPLEMENTATION).
3.The evaluation and control of sales force performance (CONTROL).
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1. PLANNING:
The formation of a strategic sales program requires five major sets of decisions:
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.
2. IMPLEMENTATION:
Implementing a sales program involves motivating and directing the behavior of the sales force.
At least 5 factors influence a sales person's job behavior and performance:
1. Environmental variables
2. Role perceptions
3.Aptitude
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.
3. EVALUATION AND CONTROL:
Evaluation and control is the process of measuring and assessing the performance of a sales person or sales force.
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
CHAPTER 2
AN OVERVIEW OF PERSONAL SELLING
Retail Selling - involves selling goods and services to ultimate consumers for their own personal use.
Examples:
door-to-door salespeople
insurance agents
real estate brokers
retail store clerks
Industrial Selling - is the sale of goods and services at the wholesale level. Industrial selling 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)
Similarities between retail and industrial selling:
- require interpersonal skill
- require solid knowledge of the products being sold
- require an ability to discover the customer's needs and problems
Differences between retail and industrial selling:
- industrial goods and services are more expensive and technically complex
- industrial customers tend to be larger and engage in extensive decision making processes involving many people within their company
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