Sales Management - Dr. Favia - Bloomsburg University
Customer Relationship Management (CRM)
A business strategy to select and manage the most valuable customers relationship. It requires a customer-centric business philosophy and culture to support effective marketing, sales, and service processes.
Customer Value Agent
A key role of salespeople which includes creating, communicating, delivering, and continually increasing customer value. [Customer and market knowledge, coordination (manage internal networks), efficiency, strategic alignment (understanding and contributing to customer's strategic goals), trustworthiness]
Communication Agent
A key role performed by salespeople who are involved in two-way communications between their customers and their employers. This exchange of information has economic and strategic value for both customers and sales organizations
Financial Contributors
A key role played by salespeople as they produce revenue for their organizations and improve profitability by enhancing sales organization productivity
Change Agents
A key role played by salespeople as they stimulate sales cycles and help customers reach buying decisions as soon as reasonably possible. By being a catalyst for change, salespeople are involved in diffusion of innovation and can have a positive impact on economic cycles.
Threats
A manager might specify a desired behavior and the punishment that will follow if the behavior is not achieved
Motivation
A measure of an individual's intensity, direction, and persistence
Detailers
A salesperson in the pharmaceutical industry working at the physician level to furnish valuable information regarding the capabilities and limitations of medications in an attempt to get the physician to prescribe their product.
Target market
A specific market segment to be served
Importance of Coaching
A study of sales manager found a direct correlation between coaching time and salesperson performance. The sales managers that spent the most time coaching had the highest performing sales teams
Job Description
A written summary of the job containing the job title, duties, administrative relationships, types of products sold, customer types, and other significant requirements.
Decision areas in sales strategy
Account targeting strategy, relationship strategy, selling strategy, sales channel strategy
Consultative Selling
Achieving customer's strategic objectives: Salesperson's expertise, Salesperson's goods and services, and Salesperson's organizational resources
Moral Management
Actively incorporates mortal considerations into all aspects of management and takes proactive measures to promote ethical behavior throughout the firm and sales organizations
Management
Activities related to the planning, implementing, and controlling the sales function.
Supervision
Activities related to working with sales subordinates on a day-to-day basis
External sources of recruitment
Ads, online, private employment agencies, colleges and universities, career fairs, professional organizations
When do you perform a background investigation?
After screening resumes and applications, initial interviews, intensive interviews, testing, and assessment centers.
Questions that give rise to accusations of discrimination (on applications)
Age or date of birth, length of time at present address, height and/or weight, marital status, age of children, occupation of spouse, relatives already employed by the firm, person to notify in case of emergency, type of military discharge.
Sales force audit
An appraisal of all salesforce activities and the environment in which the salesforce operates. A systematic, diagnostic, prescriptive tool which can be employed on a periodic basis to identify and address sales department problems and to prevent to reduce the impact of future problems. Should be conducted annually
Stress Interview
An interview designed to put job candidates under extreme, unexpected, psychological duress for the purpose of seeing how they react.
Decision areas in corporate strategy
Analyze the corporate situation to identify potential opportunities and threats, determine corporate mission and objectives, define strategic business units, set objectives and resource allocation for each strategic business unit.
Typical sales training topics
As the preceding discussion implies, the need for sales training varies over time and across organizations. However, the need for salesforce training on certain topics is wide-spread. A discussion of the more popular sales training topics follow.
Steps in the sales training process
Assess training needs, set training objectives, evaluate training alternatives, design the sales training program, perform sales training, conduct follow-up and evaluation.
Legitimate Power
Associated with the right to be a leader, usually as a result of designed organizational roles
Mental States Selling
Attention → Interest → Conviction → Desire → Action
First Relationships
Based on referent power, it builds on personal friendships, or feelings of trust, admiration, or respect.
Referent Power
Based on the attractiveness of one party to another. It my arise from friendship, role modeling, or perceived similarity of personal background or viewpoints.
Expert Power
Based on the belief that a person had valuable knowledge or skills in a given area.
Coercive Power
Based on the belief that one party remove rewards and provide punishment to affect behavior
Concept of Repetition
By making a practice of holding coaching sessions after each sales call, sales managers are also using repetition, another powerful learning tool
E-Learning or Virtual Media
Can be delivered synchronously, whereby trainees congregate simultaneously in an online classroom and training is delivered live, or asynchronously, in which participants partake in self-paced training modules comprised of instructional content, videos, and presentations that have been prepared to consume at the trainee's convenience.
Assessment Center
Centers that offer a set of well-defined procedures for using techniques such as discussions, business game stimulations, presentations, and role-playing exercises for the purpose of employee selection or development.
Transactional Style
Characterized as a contingent reward or contingent punishment orientation
Selecting sales training methods
Classroom/conference training, on-the-job training (mentoring and job rotation), behavioral simulations, absorption training
Differentiation
Compete on non-price benefits, provide high quality customer service, seek customers who are not low price shoppers
Customer Survey
Customers are queried about how salesforce is performing. Used whenever it is needed
Selecting sales training locations
Decentralized (district or regional offices) and Centralized (corporate headquarter)
Improve the usefulness of selection tools
Do not attempt to construct tests for the purpose of selecting salespeople, leave this job to the testing experts and HR specialists. If psychological tests are used, be sure the standards of the American Psychological Association have been met. Use tests that have been based on a job analysis for the particular job in question. Select a test that minimizes the applicant's ability to anticipate desired responses. Use tests as part of the selection process, but do not base the hiring decision solely on test results.
Independent Rep
Do not normally carry inventory or take title to the products the sell. Typically compensated on a commission basis for products sold.
Manipulation
Does not involve direct communication with the target of influence
Personal Selling Element of a Company's Marketing Communications Strategy
Driven marketing communications strategies are most appropriate in situations in which the benefits of personal communication are important. Driven marketing communication strategies are most appropriate for target markets that have characteristics typical of business markets.
Internal sources of recruitment
Employee referral program, company newsletter, company intranet, internships
Job Analysis
Entails an investigation of the tasks, duties, and responsibilities of the job.
Selection
Evaluation and hiring. Screening resumes and applications, initial interview, intensive interview, testing, assessment centers, background investigation, physical exam, selection decision and job offer.
Performance Test
Evaluation of particular tasks or skills of the salesforce
Problem Solving Selling
Examine current situation → Identify problems → Determine business impact of problem → Explore the value of solving problem → Uncover additional needs → Propose viable solutions → Seek purchase decision.
Modified rebuy buying situation
Exists when the account has previously purchased and used the product
Role-playing
Extremely popular for teaching sales techniques. A method of sales training in which one trainee plays the role of the salesperson and other trainee acts as the buys. Most effective when promptly critiques with emphasis on the positive points of the performance as well as suggestions for improvement.
Classroom/Conference training method
Features lectures, demonstrations, and group discussion with expert trainers serving as instructors. Used for training on basic product knowledge, new product introductions, administrative procedures, and legal and ethical issues in personal selling
Behavioral Stimulations training method
Focuses on behavioral learning by means of business games and simulations, case studies, and role-playing
Relationship between job satisfaction and commitment
Improving their satisfaction are most likely to be mot effective in building their commitment to company.
New task buying situation
In which the organization is purchasing a product for the first time, poses the most problems for buyers
Results of improper recruiting
Inadequate sales coverage and lack of customer follow-up, increased training costs to overcome deficiencies, more supervisory problems, higher turnover rates, difficulty in establishing enduring relationships with customers, suboptimal total salesforce performance.
Typical sales training objectives
Increase sales or profits. create positive attitudes and improve salesforce morale. assist in salesforce socialization. reduce role conflict and ambiguity. introduce new products, markets and promotional programs. develop salespeople for future management positions. ensure awareness of ethical and legal responsibilities. teach administrative procedures (expense accounts, call reports, etc). ensure competence in the use of sales and sales support tools, such as CRM technology. minimize salesforce turnover rate. prepare new salespeople for assignment to a sales territory. improve teamwork and cooperative efforts.
Selecting sales trainers
Internal and External
Selecting sales training media
Internet, computer-based (DVD/CD-ROM), video conferencing, satellite television, paper-based
Absorption training method
Involves furnishing trainees or salespeople with materials that they perused without opportunity for immediate feedback and questioning.
Characteristics of a Career in Personal Selling
Involves interpersonal communications between buyers and sellers to initiate, develop, and enhance customer relationships
Transformational Style
Is represented by an orientation toward inspiring subordinates to engage in desired behaviors and preform at high levels.
Recruitment
Locating prospective candidates, internal and external sources
Intensive Interview
Longer and greater depth than initial interviews.
Congruence
Marching the capabilities of the recruit with the needs of the organization
Intrinsic
Motivation occurring when salespeople find their jobs inherently rewarding Ex: Employee recognition programs may include case prizes or additional paid vacation days as part of the reward for being recognized as a premier contributor to the company.
Persuasion
Must be rational and reasonable, however expert and referent power bases are necessary to make them effective.
Buying Center
Not a formal designation on the organization chart but rather an informal network of purchasing participants
Second Relationships
One party has legitimate power over the other party by virtue of position in the organizational hierarchy.
Questions that give rise to accusations of discrimination (others)
Original name of the applicant, race or color, religion (including holidays observed), nationality or birthplace of the applicant, arrests, home ownership, bankruptcy or garnishments, disabilities, handicaps an health problems, and membership in organizations that may suggest race, religion, color, or ancestral origin of the applicant.
Purpose of the Civil Rights Act of 1964?
Prohibits employers from discriminating based on age, race, color, religion, sex, or national origin
Mission Statement
Provides direction for strategy development and execution throughout the organization
On-The-Job training method
Puts the trainee into actual work circumstances under the observant (it is hoped) eye of a supportive mentor or sales manager. Extremely important and is a very prevalent method of training salespeople.
Job Qualifications
Refers to the aptitude, skills, knowledge, personal traits, and willingness to accept occupational conditions necessary to perform the job.
Salesforce Socialization
Refers to the process by which salespeople acquire the knowledge, skills, and values essential to perform their job.
SPIN Selling
S - Situation P - Problem I - Implication N - Need-Payoff
Conducting a needs assessment (Can be in-house or by the company) Includes
Sales audit, performance testing, observation, a salesforce survey, a customer survey, a job analysis
Sales Managers Use of Coaching
Sales managers use coaching to train the best sales team they possibly can.
Merchandisers
Sales support personnel who support the retail sales effort by setting up point-of-purchase displays, rotating stock, and keep store personnel informed about new products and sales promotions.
Characteristics of trust based selling relationships
Salespeople rely on questioning and listening to establish dialogue with customers. With this approach, communications between buyers and sellers are much more two-way and collaborative than with the transactional approach.
Hunter
Salespeople who focus on gaining new customers; these salespeople increase market share for their companies by adding new customers. Hunters may also be called order-getters and pioneers
Stimulus Response Selling
Salesperson provides stimuli → Buyer responses sought → Continue process until purchase decision
Niche
Serve a distinct target market not served well by others, provide high quality customer service, seek customers who are not low price shoppers.
Low-Cost Supplier
Service large current customers, pursue large prospects, minimize costs; sell on the basis of price.
Farmers
Sometimes referred to as order-takers, these salespeople try to increase sales with existing customers.
Reward Power
Stems from the ability of one party to reward the other party for a designed action
Hybrid Sales Organization
Structures that incorporate several of the basic structural types. The objective of these hybrid structures is to capitalize on the advantages of each type while minimizing the disadvantages.
Leadership
The ability to influence others to achieve common goals for the collective good of the sales organization and company.
Intensity
The amount of mental and physical effort put forth by the salesperson
Strategic Business Units (SBU)
The basic purpose is to divide the corporation into parts to facilitate strategic analysis and planning.
Persistence
The salesperson's choice to expend effort over time, especially when faced with adverse conditions
Characteristics of CRM
The strategic focus was to establish stronger relationship with fewer, but larger accounts. The appropriate technology to support the CRM strategy was then implemented by dealers.
Makes sales meeting successful
The success of sales meetings requires careful planning and execution. Salespeople and sales managers do not like to be taken out of the field for a meeting, unless the meeting is enjoyable and valuable to them.
Doing a needs assessment
To compare the specific performance related skills, attitudes, perceptions, behaviors required for salesforce success with the state of readiness of the salesforce.
Promises
Typically produce better compliance than threats. Influence strategies based on promises as opposed to threats help foster positive feelings among salespeople and boost salesforce morale.
Need Satisfaction Selling
Uncover and confirm buyer needs → Present offering to satisfy buyer needs → Continue selling until purchase decision is made
Legal issues in training
Use factual data, throughly educate customers, don't overstep authority, be careful when communicating with competitors, don't engage in "bait and switch", don't try to force the customer to buy only from your organization, don't engage in discrimination, don't tamper with a competitor's product, do not disparage a competitor's production, avoid promises that will be difficult or impossible to honor.
Achieving Realism
When you give a recruit an accurate portrayal of the job
Straight rebuy buying situation
Wherein the account has considerable experience in using the product and is satisfied with the current purchase arrangements
Should be considered in evaluating sales training alternatives
Who will conduct the training? Where will the training take place? Which method(s) and media are best suited for conducting the training?
Coaching
Working directly with salespeople to help them develop professionally, plan and execute sales strategies for specific customers, and improve all aspects of the sales process.
Planning for recruitment and selection
job analysis, job qualifications, job description, recruitment and selective objectives, recruitment and selection strategy
