Sales Management Test 1

Your District

District 1 in the Northern region

Horizontal

Divides selling activities among sales force

Motivation

Influences are compensation, bonuses, contests, quotas, and recognition programs

Buying center roles

Initiators Users Influencers Gatekeepers Buyers Deciders Controllers

Team Selling

Integrates functional specialists with customer relationship specialists ID team structure that meets customer needs

Environment

Internal External

Types of agents

Manufacturer's representative Selling agents

Step 5

Review and revise the strategy

Eastern Regional Sales Manager

Robert Sportsman

Compensation alternatives

Salaries, commissions, and bonuses decided each quarter

Skill

Sales manager can affect this component through training

Fringe Benefits

Salespeople are provided with quality health, dental, vision, and disability benefits Salespeople are provided with new leased vehicles every two years

Step 3

Select the strategy

Contest

Short-term incentive program of a competitive nature

Step 2

Generate strategies

Supervisor

George David Bassmaster

Quota

Goal that the salesperson is expected to achieve

Democratic

Good interpersonal relations Sensitive to members and their feelings Encourage participation at meetings Hard to reach goals when high stress Function best in moderate control situations

Customer orientation

Customer drives the marketing strategy Customer is the center of all marketing activities CRM software andtouchpoints help ensure that the customer is accurately captured and monitored

Selling centers

Bring together individuals to help salespeople be more effective Establish team selling structure to met customer needs Matrix organization Key account

Commission

Advantage of creating the maximum incentive for your sales force to work hard

Salary

Advantage of giving security to the sales force

Sales management

All activités, processes, and decisions involved in managing the sales function in an organization

Buying center

All the people who participate in buying or influencing the purchase of a product

Delegative

Allow greatest freedom in stressful situations Overly tolerant of non-productive team members Like working on projects and admin Difficulty closing meetings or implementing plan Little day to day supervision

Free reports

An evaluative memorandum from your regional sales manager A management decisions report showing the previous period's input decisions Quarterly competitive ranking report on profits, sales, and customer satisfaction Cumulative competitive ranking report on profits, sales, and customer satisfaction Profitability analysis by salesperson for their team Market share analysis by a salesperson and account type for their team Industry performance report on sales, market share, and contribution to company profits

Step 1

Analyze market opportunities

organizational structure

Arrangement of activities involving a group of people

Vertical

Assigns authority for specific sales management activities

Step 6

Audit and adjust the strategy

Kevin

Been with the company for 3 years Sees himself much like you First job out of college Newly married and looking for career advancement Great golfer Always takes risks when golfing Wants to get into management Expects to be promoted in the next 2-4 years Eager to learn but has own ideas about how things should be done Very personable and outgoing Believes hard work should pay off Salesperson territory 3

Jen

Been with the company for two years Still learning the ropes Newly married Intense but not overly aggressive Organized Feels some need for security Opportunities to make more money will help pay her burdensome mortgage Change does not come easily Willing to work long hours Hardest worker in the district Wants to be appreciated Does not like hearing "no" from customers Hoping I will not rock the boat Salesperson territory 4

Purchased Reports

Benchmark reports Industry sales potential Industry sales and market share analysis Customer satisfaction report Salesperson satisfaction report on compensation Salesperson satisfaction report on non-monetary motivation Salesperson satisfaction report on bonus Contest effectiveness report

Account management policies

Call frequencies

Account management

Can reallocate time by size of account to give attention to different accounts

Leading

Communicate Cheerleader/coach Empower to make decision

Customer relationship management

Comprehensive business model for increasing revenues and profits by focusing on customers Overarching business philosophy and process tool to facilitate a customer driven experience

What you are selling in MARS

Computer games

Base compensation

Consists of a salary component and a commission component Fixed for one quarter

Marketing orientation

Consists of collecting information about customer needs, sharing information across departments, and creating customer value

Managing

Control Supervisor/boss Direct

Logistical Alliances

Convenient Flexible Less time consuming

Types of training

Corporate training On the job training(Conducted by the manager)

External environment

Current and potential sales volume of accounts and competitors in the market

Training seminars

Customer and market information Company orientation Product knowledge Selling technique Time and territory management Technology utilization Resolving legal and ethical issues Developing people skills

Co marketing alliances

Develop marketing and sales programs to sell integrated systems directly to the ultimate customer

Matrix organization

Direct reports and internal consultants provide expertise

Your predecessor

Donald Dunderhead Failed as a sales manager

External forces

Economic Legal and political Natural Technological Social and cultural

Training

Eight different seminars to help develop your salespeople Will not have the same impact on every member of your sales force Costs $800 per person per seminar Each person can only attend one seminar per quarter

Bob

Elder statesman of your district Hired in the company's first year Married with two grown children Resistant to changing what he considers to be a lifetime of successful selling Seeks stability Salesperson territory 1

Emily

Experienced salesperson Hired in company's second year Fifteen years of sales experience from 3 companies Happily married with 2 grown children Does not like showing off and prefers to go quietly about her job Viewed as the best salesperson in the district Somewhat old-fashioned Self-motivated Nobody takes more pride in their work Shuns the spotlight Salesperson Territory 2

Advantages of IMC

Face to face contact More persuasive More demonstrative Customization opportunities

Product Seasonality

High seasonality Highest popularity in the second and fourth quarter

Advantages of a simulation

Highly effective environment of learning Learn more quickly Retain more information Interaction with information

Three decisions for a contest

How many winners there will be What type of prize Total dollar value of the contest

Simulation

Imitative representation of the functioning of a system or process by means of modeling

Employer

James C. Quest Enterprises Inc.

Organizational structure

James C. Quest-Founder, President, CEO Regional Sales Manager-North, east, south, west District Sales Manager Territory salesperson

Your promotion

Just been promoted from a personal selling position to that of a district sales manager within a different region of the same company

Authoritarian

Like clean guidelines Take charge and get down to business in meetings Easy to assign tasks and monitor progress Impatient with prolonged discussion Relax more when you have complete control

Disadvantages of IMC

Limited ability to duplicate More costly

Product Description

Line of electronic computer games that can be played on individual PCs, local area networks, or over the internet "Jimmy-Quest" Includes thrilling and challenging games that young people cannot resist Company uses a complex combination of psycho-graphics, demographics, and lifestyle data to define target audiences, and then tailors games suited to match their activities, interests, opinions, and personalities

Characteristics of successful salespeople

Listening skills Follow up skills Ability to adapt to situations Tenacity Well organized Verbal communication skills Able to interact with people at all levels of an organization Ability to overcome objections Closing skills Personal planning and time management skills

Bonuses

Lump sum payment for achieving a specific goal

Katie

Most recent hire Been with the company just over 2 months Very smart Never held a sales position before Quiet and unassuming Likes to avoid the limelight Learns quickly Very competitive No expressed desire to move into management but would consider under the right circumstances Salesperson territory 5

Purposes of a quota

Motivational incentive Sets a standard for measurement and control

Guidelines

Mr. Bassmaster will not approve: -A salary larger than $15,500 -A commission larger than 12% -A bonus larger than 25% of salary -A total contest prizes greater than $25,000

Relationship Selling

Narrows the vendor pool, improves efficiencies, works directly with customers to solve problems

Internal environment

Organizational structure and management policies

Step 4

Program the marketing mix

What salespeople do

Prospect for new customers Make sales presentations Demonstrate products Negotiate pricing and delivery Write orders Increase sales to existing customers Confirm delivery and customer satisfaction 35% of time with customers

Primary responsibility

Provide support and motivate each of your salespeople to perform at their highest level possible

Supervision

Provides both motivational and training opportunities, and allows for direct salesperson feedback and input

Recognition

Provides your salespeople with public credit for exceptional selling jobs Does not cost anything Any salesperson receiving three or more awards in any given year is also recognized as a corporate salesperson of the year

Length of a decision period

Quarter of the year

Accounting review

Received from Jennifer Lee, CPA

Advantages of CRM

Reduces advertising costs Increases awareness of customer needs Tracks effectiveness of promotional campaigns Competition for customers based on service Prevents over-spending on low-value clients, under-spending on high-value ones Speeds time to develop and market a product Improves use of customer channel

What you can learn from MARS

Reinforce the sales management course concepts you are studying Opportunity to develop your decision making, problem solving, and analytical skills Develop your small group management skills

Simulation decision making process

Students make management decisions Students submit decisions to professor Professor runs simulation Students analyze output reports

Servant Leadership

Take subordinates' work seriously Take lead from subordinates Build trust Allocate rewards and glory View self as steward

Loyal Customers

Tend to concentrate on purchases Provide positive customer referrals May pay premium prices for value they receive

Transactional Selling

Transactions involving separate organizations, each entering into an independent transaction

Salesperson performance

combination of skill, motivation, and environment

purpose of the sales organization

divide and arrange activities so the firm can benefit from specialization of labor Provide for stability and continuity in firm's selling efforts Provide for coordination of activities assigned to sales force and to departments in the firm

Key accounts

team managed by senior salesperson dedicated to serving important customer