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