Term
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Definition
| The ability to influence others and inspire the actions of people to accomplish worthwhile goals. |
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Term
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Definition
| The ability to influence the behavior of others |
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Term
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Definition
Legitimate: Based on managers position in organization
Reward: Relies on leaders ability to reward
Coercive: influencing by use of fear of punishment
Referent: Influence because of friendship
Expertise: based on perception that manager has special knowledge, usually based on past success |
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Term
| 5 Phases of successful change management |
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Definition
1. Assessment
-Re examining customer environment in which company operates
2. Redesign
-Changes to one or more of following: customer orientation, sales strategy, selling process
3. Measurement
4. Sales Support Programs
-To help ensure long term success of change initiative like advanced training programs, compensation, rewards, etc.
5. Implementation |
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Term
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Definition
| The pattern of behaviors that others perceive you to use when trying to influence their behavior |
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Term
| Transformational Leadership |
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Definition
-Transforms people by making them more aware of and accepting of the goals of the organization instead of their own self interest
-Motivates people by appealing to higher ideals and moral values so that they are motivated to exceed performance epectations |
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Term
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Definition
Motivates followers by appealing to their self interest.
-Lead by emphasizing fairness and relies on rewards and punishments tom maintain control |
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Term
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Definition
Based on level of directive and supportive behavior
Directive: Extent to which leader engages in one way communication spelling out who what when where how to do it. Close supervision, etc
Supportive: Extent to which leader engages in two way conversation
Low, Low- Delegating
Low Supportive, High Directive- Telling
Low Directive, High Supportive- Supporting
High High- Selling |
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Term
| Coaching and its three basic components |
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Definition
A sequence of conversation and activities that provide ongoing feedback and encouragement to a salesperson or sales team with the goal of improving their performance
1. Feedback
2. Role Modeling
3. Trust |
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Term
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Definition
| Just prior to and following a sales call |
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Term
| 5 Factors affecting team success |
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Definition
1. Individual team members
2. Buying Center Relationships
3. Intro-Company Relationship
4. Company Strategy
5. Market Environment |
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Term
| A popular objective of sales meetings |
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Definition
| eliciting sales force feedback |
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Term
| Common Problems of Sales Force Meetings |
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Definition
-Interest
-Participation
-Followup |
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Term
Plateauing
Causes
Solutions |
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Definition
-Occurs when people stop growing as sales professionals. Most plateau in mid career
Causes
-Number 1 is lack of career path
-Not managed correctly, bored, burnt out
-Economic needs met
-discouraged with company
-Lack of ability
Solutions
-Discuss situation with salesperson as soon as indicators appear
-Look for ways to enrich their current position |
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Term
| Steps to dealing with sexual harassment |
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Definition
-Ensure that correct policies are in place
-Look for signs including asking to drop a particular account, requesting transfer, asking for advice on situation
-Investigate any and all alleged incidents
-Create a culture of professionalism
-Conduct self professionally
-Dress appropriately
-Be cautious of drinking at business functions
-Don't listen to sob stories
-Avoid being alone in one-to-one situations
-Use independent transportation |
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Term
| Two areas of concern with alcohol and drug abuse in relation to compensation or company liability |
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Definition
| Overnight travel and use of company car |
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Term
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Definition
Relativistic managers reject universal moral rules and make decisions on basis of personal values and the ramifications of each situation
Idealistic accept moral codes and believe that positive outcomes for all can be achieved by morally correct actions |
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Term
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Definition
| A Person who decides to be good in every situation will be destroyed in the company of so many men who are not good. One must learn to be as good as the occasion requires |
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Term
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Definition
AKA situation ethics.
The standard of morality is what is acceptable to others at a particular time and place |
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Term
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Definition
AKA situation ethics.
The standard of morality is what is acceptable to others at a particular time and place |
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Term
| Order in which ethical decisions evolve |
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Definition
General values and norms of society>>>>>>>>
Definition of goals and ethical standards of business corporations>>>>>>>>>>>>
Relationship between corporation values and values of manager>>>>>>>>
Managerial Decisions |
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Term
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Definition
Practical Guidelines when making difficult moral decisions. EXAMPLE
1. Recognize Dilemma
2. Get the facts
3. List options
-Are they legal
-Are they right
-Are they beneficial
4. Make decision |
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Term
| House Account and ethical dilemma |
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Definition
| Large accounts that require special attention are often transferred to some manager. Generally, no commissions are paid. |
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Term
| Most ethical abuse takes place with |
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Definition
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Term
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Definition
| prohibits price discrimination, exclusive dealing arrangements, and mergers that affect competitiveness |
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Term
| Magnuson-Moss Warranty Act |
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Definition
| illegal for salespeople to coerce customers into purchasing replacement components from salespersons firm at higher prices than a third party could provide by threatening that the warranty would be void |
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Term
| Fair Packaging and Labeling Act |
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Definition
| Calls for standard package sizes and disclosure of the manufacturers or distributors name |
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Term
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Definition
| Indicates to the sales force that the company believes in playing fair with customers and competitors |
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Term
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Definition
| Demands employees be loyal and keep their mouths shut |
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Term
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Definition
| An INdividuals willingness to exert effort to achieve the orginizations goals while satisfying individual needs |
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Term
| Three Characteristics of effort |
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Definition
1. Drive to initiate action on a task
2. The quality of effort on a task
3. Persistence to expend effort over a period of time sufficient to meet or exceed objectives. |
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Term
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Definition
-Status
-Control
-Respect
-Routine
-Accomplishment
-Stimulation
-Honesty |
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Term
| 4 personality types in regards to motivators |
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Definition
The Competitor: wants to win, derives satisfaction from beating rivals
Ego Driven: Not interested in beating specific opponents, just want to win. Prone to feeling slighted, change jobs frequently, and take things too personally
Achiever: Almost completely self motivated. Usually set high goals and move the bar higher after
Service Oriented: Strength lies in building and cultivating relationships |
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Term
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Definition
Exploration
-Main concern is finding right occupation
Establishment
-Focus switches from finding right job to getting ahead in current job.
-Willing to put in long hours
Maintenance
-Begin to reflect on accomplishments=midlife crisis
Disengagement Stage
-Involves giving greater priority to issues other than work and career
-Attempts to motivate them is often frustrating
-Best way to overcome problem is to dissuade people from adopting this attitude in the first place |
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Term
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Definition
Amount of effort in individual puts into activity depends on interplay of these 3 factors.
1. Expectancy: Relationship between effort and performance
2. Instrumentality: Relationship between performance and rewards
3. Valence: importance of receiving more of a certain reward. |
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Term
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Definition
| People are motivated to generate reasons for why an event occurred, especially when the outcome is unexpected, when the event generates suspicion, or when one fails to achieve something |
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Term
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Definition
| How much salespeople desire a particular reward influences their motivation |
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Term
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Definition
| People make inputs vs outcomes comparisons with relevant others to determine relative equity. |
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Term
| Self Management Techniques |
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Definition
-Self Monitoring
-Goal Setting
-Stimulus Control
-Consequence MGMT
-Rehearsal
-Self Contracting |
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Term
| 5 Reasons for establishing Quotas and evaluating |
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Definition
1. To help management motivate salespeople
2. To direct salespeople where to put their efforts
3. To focus mgmt attention
4. To measure salesperson accomplishment
5. To provide standard for evaluation
6. Starting point for next years objectives
7. Retraining opportunities
8. Opportunity for salary administration
9. further sales territory analysis
10. Documentation |
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Term
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Definition
1. Sales Volume
-Dollar Value
-Unit Volume
-Point Quota System
2. Profit Based Quotas
3. Activity Quotas
-# of calls per day
-Display racks installed
-Calls on new accounts
-Dealer sales meetings held
-Proposals submitted
-Equipment test sites
-Product demonstrations
-Point-of-purchase displays |
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Term
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Definition
| Proposes that difficult goals, if accepted, will lead to higher performance than moderate or easy goals or no goals. |
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Term
| 2 reasons salespeople internalize goals |
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Definition
1. Have need to demonstrate competence and gain favorable judgment from others
2. Work to avoid negative evaluations (fear of failure) |
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Term
| When setting goals, mgmt should be concerned with (3) |
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Definition
| 1. Providing feedback 2. Gaining goal commitment 3.Building Self Confidence |
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Term
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Definition
| short term promotional events intended to inspire salespeople to a greater than usual performance level and provide them with rewards |
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Term
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Definition
Divides sales opportunities into combinations of new and current customers and products.
New Cust, New Prdcts= New Bus development
New Cust, Current Prdcts= Convergence Selling
Current Cust, Current Prdcts= Account mgmt
Current Cust, New Prdct= Leverage Selling |
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Term
| Most common compensation plan and all the types |
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Definition
Combination of base salary with incentive.
-Incentive can be used to influence specific behaviors
-Straight Salary
-Straight Commission
-Salary Plus Bonus
-Salary Plus Commission
-Salary Plus Commission Plus bonus
-Commission plus bonus
-Profit BAsed Comission |
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Term
| Expense Reimbursement Programs |
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Definition
Unlimited
-Allows for wide discretion
-Inexpensive to administer
Per Diem
-Pays salesperson a fixed dollar amount for each day or week spent in field.
-Sales people may try to make money of of it (needs control evaluation)
-Simple and inexpensive to administer
Limited Replacement
-Firm sets dollar limits on each category of expense i.e. 8 dollars for breakfast, 90 for room, 25 for dinner |
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Term
| Behavioral Based Evaluation Systems |
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Definition
MAnagers are concerned with keeping track of what happens at each stage of the sales operation.
Value how people make sales more than the number of sales made |
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Term
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Definition
Management By objectives aka Development and performance management.
Sales people and mngrs jointly set personal development goals that can be completed in a time frame
Salespeople then develop plan to reach goal |
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Term
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Definition
Behavioral Observation Scales
-Focus on identifying a list of critical incidents that lead to job success.
-Job behaviors are then grouped into dimnsions |
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Term
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Definition
| Detail who was called on, what stage prospect is within sales cycles, and what followup activities are needed |
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Term
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Definition
Managers set performance standards for each salesperson and evaluate results against preset standards
-shown to improve salesperson attitudes when they understands what is expected |
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Term
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Definition
Measures Sales Vs. Contribution Margin
High Sales, High C.M.= Stars
High Sales Low C.M.= Compromisers
Low Sales Low C.M.= Laggards
Low Sales High CM= Slowpokes |
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Term
| Relative Performance Efficiency Index |
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Definition
| Uses bot inputs and outputs to compare performance to a peer group |
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Term
| 6 Aspects of Good Evaluations System |
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Definition
1. Is used at all levels of the company
2. Reflects companies culture
3. Peer influence is powerful in helping manage performance
4. Must leverage a persons motivators
5. Empowerment and direction
6. System itself must evolve |
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Term
| Rhodes Characteristics of Leaders |
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Definition
1. Create opportunities
2. May not be experts but are visionaries and can see big picture
3. Are profit generators
4. Love the Mess (Get excited when shit hits the fan)
5. Do and then re-do
6. create blame free cultures
7. At the end of the day, bet on people, not strategies |
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Term
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Definition
| Ability to perform your natural actions, in a relaxed manner, when you are under fire |
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Term
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Definition
| Management by walking around |
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Term
| Addition to phrase knowledge is power |
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Definition
| Applied knowledge with trust is power |
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Term
| Aspects of Good CompensationsPackages |
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Definition
1. Keep it simple
2. Make sure the employee understands the total package fully. |
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Term
Advantage/Limitation of Straight Salary
When is it more prevalent |
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Definition
Advantage: Control over wage levels and control over what your employees do
LimitationVery high cost when sales are low and some people like/need incentives
-More prevalent in complex selling situations and long selling cycles |
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Term
| Advantage/Limitation of straight commission |
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Definition
Advantage: Not paying when sales are low
Limit: Little to no control over employee |
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Term
| Adv/Limit of Salary plus bonus |
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Definition
Adv: Salary is the security, bonus is the incentive
Bonus is usually less than comission and is a bucket that is distributed which gives cost control |
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Term
| Adv/Limit of Salary + Comission |
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Definition
Provides more incentive
Commission can be varied on products sold (high margin vs low margin) |
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Term
| Salary + Commission + Bonus |
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Definition
More complicated for company
Salespeople like options and control but can also get confused as to what the total package is worth |
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Term
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Definition
| Least likelyBonus serve as way for manager to retain some control over straight salaried employees |
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Term
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Definition
| Used when have markets located across country but central buying location where salespeople work at both, Commission usually split 60-40 between central and seller at location |
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Term
| Biggest Factor in recruitment of your employees by other companies |
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Definition
| How much more money they could be making |
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Term
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Definition
Used in evaluation
Output: Measuring by numbers that come out of sales activity
-Meeting sales objectives
-# of orders, size of orders, volume growth against quota
Input: Measures activity that is put into selling
-Expenses
-# of calls made
-Number of days worked
-reports turned in on time
-selling time vs non selling time |
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Term
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Definition
Measurement of things that should transfer into activity
-Attitude (1st)
-Time mgmt
-discipline
-product knowledge
-communication skills (2nd)
-telephone skills
-Ability to work as team
-physical appearance (2nd)
-interpersonal skills |
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Term
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Definition
Having something in your back pocket that you can pull out and use when needed
Jack doesn't care, as long as it is not hurting the customer |
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