Term
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Definition
| Direct communication between paid representatives and prospects that lead to transactions, customer satisfaction, account development, and profitable relationships. |
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Term
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Definition
| Product, Price, Place, Promotion |
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Term
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Definition
| The planning, organizing, leading, and controlling of personal contact programs designed to achieve sales and profit objectives of the firm |
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Term
| 3 Reasons for increase in competitions |
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Definition
Globalization
Shorter Product Cycles
Proliferation Challenge (advances in technology/information/communication&distribution methods have created explosion of new sales and service channels |
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Term
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Definition
Fewer suppliers
Rising Expectations
Increasing power |
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Term
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Definition
| Creating customer value by addressing important customer problems and opportunities through a supplier-customer relationship that is much more intimate. |
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Term
| Other metrics of profitability of a sale |
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Definition
Amount of time needed to complete
Gross margins
Level of price discounting
amount of promotional support
amount of post sale support
potential for future sales |
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Term
| Sales Force MGMT competencies |
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Definition
Sets of knowledge, skills, behaviors and attitudes that a person needs to be effective in a wide range of industries and various types of organizations
Strategic Action Competency
-Understanding industry, organization, taking strategic actions
Coaching Competency
-Giving verbal feedback, role modeling, building trust
Team Building Competency
-Designing teams properly, creating supportive environment, managing team dynamics
Self Management Competency
-Integrity, ethical conduct, managing personal drive, self awareness/development
Global Perspective Competency
-Cultural Knowledge and sensitivity
-Global selling program
Technology Competency
-Understanding productivity potential of tech, implementing sales force automation, implementing customer relationship managment |
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Term
| 2 paths by which to grow sales |
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Definition
-Obtain New customers
-Grow business with existing ones |
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Term
| Prospect Profile. Where to start? |
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Definition
-A Profile of what the best prospects will look like. Determinants could be Size of business, age of equipment to be replaced, geographic location, etc
-Start with a review of the target markets for your products as specified by the marketing plan
-Ask other salespersons |
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Term
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Definition
Cold Canvassing:
-Contacting prospective customers without appointments
-Could be calling, knocking on doors, etc
Direct Mail
Trade Shows
Directories
Internet
Referrals |
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Term
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Definition
Determining if a prospect is likely to be converted to a buying customer:
-Do they have a need for the product?
-Do they have buying authority?
-Do they have the ability to pay? |
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Term
| Metrics for analyzing current accounts |
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Definition
Cost per call: function of number of calls you make per day, number of days available to call, and your direct selling expenses.
Break even Sales Volume: Sales volume necessary to cover direct selling expenses. Helps determined the minimum size of a customer that should be pursued/managed. |
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Term
| Methods for setting account priorities |
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Definition
Single Factor Model: Examines a single customer characteristic, often sales volume, to arrive at an initial allocation of sales calls
Portfolio Model: Considers multiple factors when determining attractiveness of accounts
Decision Model: Allocates sales calls by focusing on the response of each account to the number of sales calls made over a period of time.
Sales Process Model: Focuses on where the opportunity is in the selling process. Assigns opportunity level to different stages of the selling process according to the probability that they will ultimately result in a sale. (more appropriate when the selling cycle for a product is fairly long and multiple opportunities exist within one account) |
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Term
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Definition
| Figurative term to describe placing all sales opportunities in a funnel with unqualified opportunities appearing outside of the top. The qualified opportunities then get narrowed down into the final sales that come out the bottom |
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Term
| Sequence of Priority for what accounts to focus on |
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Definition
1) Closing best few sales opportunities first
2)Prospecting for unqualified opportunities
3) working the qualified opportunities |
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Term
| Relationship between price/cost/sales |
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Definition
Salespeople need to be aware of the relationship between the three and not just sales. There can often be a 50-75 percent difference in profitability of customers who purchase similar quantity of a product depending on
-Geographic location
-special deals/discounts given customers
-legal constraints
-negotiations, etc |
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Term
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Definition
| The notion that the value of a customer is the sum of the customers discounted flow of profit contributions into the future |
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Term
| What salespeople consider the top time wasters |
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Definition
1. Telephone interruptions
2. Drop-in visitors
3. Lack of self discipline
4. Crises
5. Meetings
6. Lack of objectives, priorities, and deadlines
7. Indecision and procrastination
8. Attempting too much at once
9. Leaving tasks unfinished
10. Unclear communication |
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Term
| Purchasing Process and Value added by sales force |
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Definition
1. Recognition of Needs (Help customers recognize need or opportunity)
2. Evaluation of Options (Identify options/provide solutions)
3. Purchase Decision (Make process convenient/hassle free)
4. Implementation and Evaluation (support purchase decision and build relationship) |
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Term
| Straight VS Modified Rebuy |
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Definition
Straight: Product has been previously purchased, and there is no change desired in the product or offering. (usually replenishing inventories)
Modified: changes anticipated in the product or order |
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Term
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Definition
| The dynamic in which demand for a product is derived from the demand that a customer experiences from their customers. |
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Term
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Definition
Written offer by a seller to provide a product or service to a purchasing organization.
RFP is a Request for proposal by a buying organization. |
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Term
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Definition
| An analysis of a product or vendor value based on more than just invoice cost, but total costs, which includes holding costs, delivery costs, receiving/editing invoices, etc. |
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Term
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Definition
| Analysis of vendor by focusing on delivery reliability, price, service, technical competence |
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Term
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Definition
| Refers to all people formally or informally involved in the purchasing decision |
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Term
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Definition
Economic Buyer: Person with power to give financial approval to buy product or service.
User Buyer: determines impact of purchase on the job they or their people perform
Technical Buyer: Gatekeepers that screen out products that do not meet the needs of the buying org.
Advocate: Role is to help guide through sale by providing critical info about the buying org. and people involved in purchase decision. |
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Term
| Evolution of relationship |
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Definition
1. Awareness (Recognition that supplier can satisfy need)
2. Exploration (Tentative initial trial with limited commitments by both parties)
3.Expansion (Greater rewards for both parties due to increased knowledge on both sides)
4. Commitment (by both sides to establish grounds for long term relationship)
5. Dissolution (Total disengagement form relationship) |
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Term
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Definition
Drive people to progress to a fully committed relationship
1. Creating Value
2. Meeting expectations
3. Building Trust
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Term
| 3 phases of customer interaction |
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Definition
Preinteraction: Actions that are initiated prior to interaction with key decision makers requiring skills in precall planning
Interaction: Actions initiated while interacting with key decision makers, calling on skills in relating, discovery, advocating, handling objections, and closing.
Postinteraction: Activities following a transaction involving supporting skills |
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Term
| 3 types of selling models |
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Definition
| Standardized,Need Satisfaction, and Problem Solution Models |
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Term
| Standardized Selling Model |
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Definition
-1 of 3 basic types of models
-Series of statements constructed about offering so as to stimulate a positive response by the customer
-Highly structured, aka Canned presentation
-Appropriate when product is standardized or when the benefits are mostly the same for all customers.
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Term
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Definition
Benefitizing an offering is another word for the standardized selling model.
-Translating feature into competitive advantage that is a benefit. |
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Term
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Definition
| -A Highly structured presentation that is given in basically the same way to every customer. |
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Term
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Definition
-1 of 3 basic selling models
-based on discovering and meeting customers needs
Sales goals are
1. quickly/accurately identify customer w/ highest probability of purchasing
2. provide customer with incentive to change
3. provide w/ confidence to invest
4. ensure that the value promises made are fullfilled |
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Term
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Definition
-1 of 3 basic selling models
-Like need satisfaction in that it involves analysis of customers circumstances, but this process involves more formal studies of operations.
-Rather than initially identifying needs, initially seek to gain permission to do study |
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Term
| 3 skills that are important in all business interactions |
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Definition
-Relating (initial talk, introduction)
-Discovering (figuring out about buyer beforehand, needs discovery before/during, motives)
-Advocating: Clearly and fully presenting a solution that customers can see helps to address their needs |
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Term
| 2 Critical Selling Skills |
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Definition
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Term
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Definition
| Fear of making contact with a customer. |
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Term
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Definition
| Anxiety in selling reltionship because people dont like to be sold, they like to buy |
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Term
| Task Motives VS Personal Motives |
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Definition
Logical, practical, or functional reasons for buying (usually involve money or productivity)
EX: Cost savings, increase output, reduce effort, etc.
Personal: Also to be considered. EX: Respect, approval, power, recognition |
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Term
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Definition
Permission: Close ended asking for permission to ask questions or probe
Fact Finding: Focused on factual info about business, person, or situation
Feeling/Finding: Open ended that tries to uncover feelings about situation and potential consequences of situation
Checking: Checking ones understanding and getting agreement concerning statement. |
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Term
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Definition
1. Presenting a specific solution to a problem
-confirm that offer matches requirements and satisfies needs.
2. Addressing customer concerns regarding solution being proposed.
-Prospects raising concerns means they are expressing interest |
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Term
| Purpose of Written Sales Proposal |
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Definition
| -Not to make the sale, main purpose is to confirm and support the rationalization of a decision that has already been made just to have in writing so there isn't misunderstanding |
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Term
| Acronym for handling objections |
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Definition
LSCPA
Listen to client's feelings
Share concerns with judgment
Clarify real issue with questions
Problem-solve by presenting options and solutions
Ask for action to determine commitment |
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Term
| 4 Pillars of Sales Support |
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Definition
-Support the buying decision
-Manage the implementation
-Deal with dissatisfaction
-Enhance the relationship
-Cross Selling: selling addn'l products and services to
account
-Up Selling: selling bigger products or enhanced
services to an account |
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Term
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Definition
# of people that report to you
-Sales managers probably will have upwards of 10 |
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Term
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Definition
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Term
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Definition
| A Clear chain of command within an organization |
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Term
| Ways to organize sales force |
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Definition
By customer type
By product
By location (generalized) |
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Term
| Generalist VS Specialist sales force org structures |
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Definition
Generalist: Each salesperson sells all products to all customers within geographic area
Specialized: Highly specialized teams of salespeople focusing on products, markets, or functions |
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Term
| Areas of focus for sales team specialization |
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Definition
Product Specialization
-Appropriate when firm has large, diverse, and complex line of products.
-Salesperson sells only a few of the products in an org's total product portfolio
-Most effective way to ensure that product(s) receives a desired level of selling effort
Customer Specialization
-"Vertical Marketing"
-Each sales team sells entire product line to select typ eof buyers
Functional Specialization
-Focuses on activities or functions performed by the customer contact people.
-New customer specialist, retention specialist
end user specialist, sales engineers, etc. |
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Term
| Customer qualities that qualify it for strategic account program |
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Definition
-Multiple people in one buying process
-Purchase centrally
-Desire long term, cooperative working relationship
-Expect specialized attention and service |
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Term
| organizing strategic account program |
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Definition
-Relying on existing sales force
-Assign to top managment
-Separate sales force for strategic accounts
-Cross functional sales team assigned to each complex account. (accnt mngrs, techincal specialists, etc. |
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Term
| Independent Sales Agent, 3 factors when considering |
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Definition
AKA Manufacturer Representative performs selling function for a mfg
-Given exclusive contracts to perform selling within specified markets
1. Economic Consequences
2. Level of Control (not in house, not trained by you, etc)
3. Market Conditions |
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Term
| 5 Issues related to sales force organization |
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Definition
1. Marketing-Sales Disconnect: Economic (dividing budget) Cultural (difference in ways)
2.Cross-Functional Coordination: Ways are changing form communication flowing out from sales force to customer, to two way communication across all departments, R&D, customers, sales.
3.Global Account Organization: Treat customers operations worldwide as one integrated account with coherent terms for prices, product specifications, and service
4. Sales Teams: Salespeople, cut service, technical specialist, etc.
5. Selling partners: Salespeople not on payroll but will sell and provide technical |
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Term
| Ways to handle marketing sales disconnect |
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Definition
1. Encourage disciplined communication
2. Create joint assignments and rotate jobs
3. Co-locate marketers and salespeople |
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