1.New accounts

2.Current accounts

3.Increase the profitability of each customer

1.Create customer profile

-defined in terms of demographics (size, industry, location, ect)

2.Develope a list of prospect

direct mail, trade shows, directories, referrals, and cold canvassing

3.Qualify prospects based on

1.Need (intention to buy in the near future)

2.Authority

3.Money (ability to pay)

1.Cost per call

2.Breakeven sales volume

Cost per call=# of calls made a day X# number of days to call/direct selling expenses

direct selling expensive include-compensation, travel, lodging, commisiion, benefit, salary ect

=the sales volume necesasry to cover direct selling expenses

*minimum customer based off of volume

breakeven sales volume=cost per call/sales expenses as a percentage of sales

breakeven sales is the minimum dollar sales figure a sales person should expect to generate from a sales call

1.Single-Factor

2.Portfolio

3.Decision

4.Sales Process

-based off of a single customer characterisitc such as sales volume

*these are A-B-C accounts

-does not take into account other factors such as growth

-based on multiple characteristics

-customers then rated based on attractiveness

-more consultative relationships

4 quadrants

defined by

1.Account opportunity 

 2. Competitve positon

-based on the response of each account to the number of sales calls

*after a certain amount of calls sales plataue

--this is the fundamental notion of the sales response function

--more transactionally based

-allocated selling time based on the stage in the selling process

-consultative

-prioritize opportunities within single-large accounts

-long selling cycles with multipl oppotunities within one account

"opportunities" are like a funnel

3 categories

1.unqualified-largest, have a possible be need but is not verified

2.qualified-need is verified, intention to buy, funding exists, indentified time for the purposed

3."best few"-all buyers contacted, all need identified---should only take 50% time to close them

1. Focus on the best first

2.Prospect the unqualified

3.Be working on the qualified

data suggests a possible need exists but the need has not been verified with key people

ex. customer contract about to expire with a competitor

1.need verified with at least one of the buying influences

2.confirmed intentention to buy

3.funding is approved or already exists

4.identified time frame for the purchase

34%

-figure has not changed much in the past 2 decades

-telephone interruptions

-drop-ins

-lack of self-discipline

-crises

-meeting

-lack of objective, priorities, deadlines

-indecision and procrestination

-attempting too much at once

-leaving tasks unfinished

-unclear communication

-telephone interruptions

and

-drop-in visitores

how not to waste time--consider urgency and importance

1.planning

2.technology

3.reducing time wasters

4.reducing admin time

-dont want to waste your time on people who dont want / need your product

get infor from marketing plan and target markets

-no info? verteran salespeople are the best advise to examine past sales success

all companies recieve it

-e-mails have greatly increase the speed

-customer gives permission for the sales call of direct mail, which allows salespeople to concentrate efforts on othe prospects more likely to purchase

good for generating good prospects

-growing due to low cost per customer contant (generally a qualified contact)

a satisfied customer is asked to provide names of others who might be interested in a product

*increased credibility from the connection!

-gaining accpetance

-have a use and intention to by

-hard to sell to satisfied customers with dif supplier--you would only sell if you could find a need of if the supploer is not adequate

-just because they buyer has a use and intention doesn't mean you should sell you have to consider the size and profitability potential

=sales volume necessary to cover direct selling expenses

-need to calculate direct selling expenses and % of total sales

-the minimum volume needed over a period of time to justify sales expenses

*if it is a new account, minimum sales volume can be calculated based on the number of calls typicalled needed to close a sale

-similar volume can have different profits

-measuring CPV now