EXAM 2: MARK 4220

Account Planning Matrix

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Information Aggregation Type

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Team 11: Romano Pitesti

1) Acquisition 2 years ago resulted in many policy changes 2) Receiving complaints about the behavior of Romano pitesti

Team 6: Wentworth Industrial Cleaning Supplies

1) Allocation of Area Managers' time -Monthly cold calls made decreased -80% spent on maintenance of current accounts 2) Key Concerns -Will incentive programs effectively motivate? -Should we expand current product lines -Should we reduce prices

Good Quota Characteristics (A, ETU, C, T)

1) Attainable 2) Easy to Understand 3) Complete 4) Timely

Team 12: Adams Brands

1) Bannister needs to hire a supervisor for the Ontario region 2) Candidates must have following qualities -extensive knowledge of industry -Experience in sales -Strong interpersonal skills -Proficient with data analytics and technical skills -Needs to be willing to invest at least 3 years with the company

Activity Quotas (CNA, LPC, PS, FDA, SCM, EIS, DA, DSMH, MCA, PDAC)

1) Calls on New Accounts 2) Letters to potential customers 3) Proposals submitted 4) Field demonstrations arranged 5) Service calls made 6) Equipments installations supervised 7) Displays arranged 8) Dealers sales meetings held 9) Meetings and conventions attended 10) Past-Due Accounts collected

Sales Workload Steps (CC,DF&L,CWTCEM,DTAPS,AST,CNSN)

1) Classify customers into categories 2) Determine frequency and length of call for accounts in each category 3) Calculate workload to cover entire market 4) Determine time available per salesperson 5) Apportion salesperson's time to task performed 6) Calculate the number of salespeople needed -Quota level -Considerations -Types of Activity Quotas

Team 4: California Credit Life Insurane

1) Communication is unreliable in terms of -Performance evaluations -Promotion opportunities 2) CCLI prides itself on being an equal opportunity employer however: -Women sales reps are facing gender discrimination from managers and clients -Sales managers are either naive to the situation or genuinely opposed to women in the workforce

Team 1: The Valley Winery

1) Company had 100% turnover rate 2) Push strategy used to sell 3) High costs to train new reps 4) Employees fail to hit quota 5) Intensive supervision from district managers 6) Lack of professional and ethical behavior 7) Some sales people don't receive commission 8) Male dominated Sales Force

Financial Quotas (DSMP,CB "GM,NP,SE",CNS,PPAF)

1) Direct salespeople to more profitable products and customers 2) Common bases -Gross Margin -Net profit -Selling expenses 3) Calculation not straightforward 4) Profit produced affected by factors beyond a salesperson's control

Outsourcing Considerations (EC, C, TC, SF)

1) Economic Criteria 2) Control 3) Transactions Costs 4) Strategic Flexibility

Team 7: Hanover-Bates Chemical

1) Increase profit performance by reallocating district sales effort 2) Unhappy sales representatives 3) New District Manager has to overcome previous issues 4) Implementing the new sales guidelines enforced by the National Sales Manager

Team 8: Atomic Company

1) Independent Contractors vs. Internal Sales Team 2) Ethical question of commissions 3) Sales forecast uncertainty 4) Marketing Strategy Decisions

What is Riding on the Forecast? (ID, CED, IP, CP, OB, LTM, S, MUAC, SEW, EPS, CMM, EF, CF)

1) Investment decisions 2) Capital equipment decisions 3) Inventory Planning 4) Capacity planning 5) Operations budgets 6) Lead time management 7) Sales 8) Materials-usage, availability, cost 9) Skill enhancement of workforce 10) Earnings per share 11) Capacity-manpower and machines 12) Equipment and facilities 13) Cash Flow

Team 2: Effective Law Office Solutions

1) Preconceived notion of how to sale which called for retraining of employees 2) High cost of hiring experienced salespeople 3) Increase of demand on salespeople due to increase in customer size and company expansion ---------------------------- 1) Growth rate began to decrease 2) Rate of losing new business increased 3) Increase loss of contracts to competitors 4) Increase number of complaints from existing customers

Team 3: On-Time Package Delivery

1) Sales representatives lack performance evaluations 2) Incentives for sales reps to move up in OTPD 3) One 2 sales performance evaluations per year for large accounts 4) Information on competitor products 5) Poor Sales training

Reduce Span of Control When... (ST, PI,SWP, HLO)

1) Sales task is complex 2) Profit impact of each salesperson's performance is high 3) Salespeople are well paid and professional 4) Also, at higher levels in the organization

"Fumbling Over Data"

A) IBM has invested more than $14 million in buying a series of analytic related companies since 2005 B) Only half of the senior management are capable of putting such data to good use in shaping the company strategy C) 2/3 say they spend time on unproductive analysis D) 2/3 have access to information but only 25% say it's effective

Territory Design Stages (SBCU,EMP, CCUITT, PWLA,ATT, AST)

1) Select basic control unit 2) Estimate market potential in each control unit 3) Combine control units into tentative territories -How are the territories made 4) Perform Workload Analysis -Most difficult part of process: how do you cover 40-50 accounts vs someone who manages 100+ vs a KAM who manages 10? -How to do the job and how to do the job right 5) Adjust tentative territories to allow for sales potential and coverage difficulty differences -Some areas are more difficult to work in i.e. rust belt states 6) Assign salespeople to territories -Getting the right people in the right territory

Quota level Considerations (TA,QIOM,LTCO,STPI)

1) Territory available potential 2) Quota's impact on motivation 3) Long-term company objectives 4) Short-term profitability impact

Starting a Sales Force (SS, AET, LES, GTP, ACS, PS) (CL, CT, CC, COR, C,C)

1. Start with a strategy 2. Appoint an expansion team 3. Leverage existing strengths 4. Go to the press 5. Avoid compensation snafus 6. Provide Support The 6 C's of finding the right rep 1. Compatible lines 2. Compatible territories 3. Compatible customers 4. Credibility of the rep 5. Capabilities 6. Credits

Market Potential, Sales Potential, and Sales Forecasting Process (AEE, EM, DSF, N:RMP, Y:ESQ)

A) Assess Economic Environment ---> B) Estimate market and/or sales potential ---> C) Develop sales forecast; compare forecast with objectives ---> in agreement? D) If no: redesign marketing program and return to develop sales forecast E) If yes: establish sales quota

Approaches to Forecasting Management (C,N,C)

A) Concentrated: One department in charge of developing the sales forecast and all other departments must follow the resultant forecast; bias toward department developing it B) Negotiated: For each product group, each functional area makes its own dependent forecast but each functional area come together each period to negotiate final forecast; very political C) Consensus: for each product grouping, a committee is formed with representatives from various functional areas and one person is placed in charge of the forecast committee; over comes bias of concentrated and politics of negotiated

Why do we forecast?

A) Demand -Demand is usually different from shipments because it may not necessarily result in a shipment (i.e. if there is no stock, there will be no sale) B) The need for a particular product or service

Demand (Sources of Demand) (CO, D, I, NPT, SRP, S)

A) Demand can come from many sources: 1) Customer orders 2) Distributors 3) Intercompany 4) New product trials 5) Service and replacement parts 6) Samples

Effects of Territory Estimates (DST, IPC, ESQ, CSC, ESP)

A) Design of sales territories B) Procedures for identifying potential customers C) Establishment of sales quota D) Compensation and subcomponents E) Evaluation of salesperson performance

Span of Control (DM, MLS, LGS)

A) Dictate by managers and different levels of management B) The more of these there are, the lower span of control C) The less of these, the greater span of control

Team Selling (FT, CS, AM, PCMC, OR, LW)

A) Facilitate the team -Salesperson will not be afraid to say "I don't know but I will find out" to the customer. Address questions to ensure the order the customer is placing can be realistically delivered before it is promise B) Cross-selling -Sell other products outside the normal products they usually sell. C) An account manager responsible for working with the entire team, servicing major customers, and selling as well D) Presents coordination, motivation, and compensation problems E) Can benefit an organization's revenue and morale F) The "lone wolf" method is outdated and should be discouraged

What Do We Know About Forecasts? (UW, EOE, ALG, ASP, HH)

A) Forecasts are usually wrong B) Forecasts are better with an estimate of error C) Forecasts are more accurate for larger groups of items D) Forecasts are more accurate for shorter time periods E) History repeats itself, history doesn't repeat itself

Sales Quotas (G,ASP,MSP,TPC,BESE)

A) Goals assigned to sales people B) Apply to specific periods C) Motivate sales people D) Tool for planning and controlling field selling activities and results E) Benchmark for evaluating sales effectiveness

Choosing a Forecast Method (NMS,AMFM,SP)

A) No method remains superior under all conditions B) Apply multiple forecasting methods to a problem C) Scenario planning prepare "what-if" questions and produce possible outcomes

Decisions When Conducting a Sales Analysis (SFS, DOIT, AOSE,SDITS)

A) Sales force size or # of territories B) Design of individual territories C) Allocation of total selling effort to accounts D) Simultaneous decisions implemented through software

Geographic Organization (P: LC, TE, SA) (C: BS)

A) Simplest Most Common Method B) Individual salespeople assigned to separate geographic territories C) Responsible for performing all activities necessary to sell all products Pros: 1) Lower Cost 2) Travel time and expenses minimized 3) Sales administration and overhead cost kept low Cons: 1) Does not provide benefits associated with specialization

Criteria for Selecting/Structuring a Sales Force (SS, AET, LES, GTP, ACS, PS)

A) Start with a strategy -Define the sales force mission, skill sets, and customer benefits B) Appoint an expansion team -Get hiring input from human resources executives and executives that will manage the new sales force C) Leverage existing strengths -Look for new hires within your own ranks, your personal business network, as well as your clients and suppliers D) Go to the press -Articles touting your business model and management team can attract both customers and salespeople E) Avoid Compensation Snafus -If the new team must work hand in hand with the existing sales force, consider paying them both for the sale. Don't kill a million dollar investment by pinching pennies F) Provide Support -Get out in the field with your salespeople and show them how to pitch the product. Share the best practices in conference calls

Sales Forecast Methods (SM: UE, SFC, JEO, DT) (OM: MT, TSA "MA, ES, D", SDA)

A) Subjective Methods 1. User expectations 2. Sales force composite 3. Jury of executive opinion 4. Delphi technique B) Object Methods 1. Market Test 2. Time Series Analysis -Moving averages -Exponential smoothing -Decomposition 3. Statistical demand analysis

Why Forecast? (AICDMLT, ACD, COO, ICP)

A) To anticipate inventory and capacity demands and manage lead times B) Achieve competitive delivery times C) To project costs of operations into budgeting processes D) To improve competitiveness and productivity through decreased costs and improved delivery and responsiveness to customer

Line and Staff Organization

A) Vertical (Most common) B) Several Sales Management activities assigned to separate specialists (Diagram) -VP of Sales -Director of Sales Training -Director of Distributor Relations -Director of Sales Promotion

Customer Type/Market Organization (P:CN, IF, IC) (C: HSAC, DE)

Natural extensions of marketing concept and strategy of market segmentation -Pros 1) Better understanding of customer needs 2) Increased familiarity with certain businesses 3) Increased control over allocation of selling effort -Cons 1) Possible higher selling and administrative costs 2) Duplication effort

What is a forecast?

Projection into the future of expected demand given a stated set of environmental conditions

Larger Span of Control (P: GC,LAC) (C:ROTOC,MLE)

Pros 1) Greater control/responsiveness due to fewer management layers 2) Lower administrative costs Cons 1) Reduced one-to-one communication due to larger number of subordinates 2) Managements may be less effective, negating cost savings

Market Opportunity Analysis

Requires an understanding of the differences in the notions of market potential, sales potential, sales forecast and sales quotas

Product Organization (P: ESM, CA, SM) (C: DE)

Separate Sales force for each product (or category) in the line -Pros 1) Salespeople master effective selling methods for single or related products 2) Closer alignment of sales and production 3) Sales management controls allocation of selling effort across the line -Cons 1) Duplication effort

Brand Management Interface

The merging of sales and marketing strategies