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MKTG 568 Final Concepts v.2
MKTG 568 Final Concepts v.2
54
Business
Graduate
03/19/2013

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Term
Solutions for needs in the market are…
Definition
1) offerings that are reasonable alternatives to competitive options & 2) Offerings that have definable differentiation from competition
Term
Skills to motivate investment can be stated as the ablity to:
Definition
(1) activate the needs of the customer (2) Influence the buying criteria of the customer (3) Sell Value
Term
Resource Drivers
Definition
1) Company Objectives 2) Markets 3) Products 4) Account Geographies 5) Sales Processes 5) Resources Type-Mix-Qty 6) Organization Specialization
Term
The primarily objective of resource planning is to…
Definition
Deliever necessary skills at lowest cost to desired opportunties for miximum "ROI" per unit of resource deployed
Term
Planning Components
Definition
Skill Requirements --> Attract & Retain Key Skills --> Capacity Planning --> Deployment & Coverage --> Performance Measurements --> Sales Responsibilities
Term
Resource optimization is comprised of…
Definition
Deployment & Coverage --> Performance Measurements --> Sales Responsibilities
Term
Sales and Business Professionals responsiblities include:
Definition
Brand Mangement, CRM, Strategy Development and Implementation, CIR and Market Forecasting , Decision Empowerment and Accountablity (generally towards long-term benefits)
Term
Condtions of Employment
Definition
1) Generate Profitable revenue 2) Achieve Minium Business Volumes 3) Basic Business Function Performance (Short-Term Emplhasis)
Term
Skill Requirements
Definition
1) Knowledge 2) Skills & Experience 3) Levels of Expertise 4) Sources of Skills
Term
Attract & Retain Key Skills
Definition
1) Progressive Compensation Plans 2) Incremental Earning Opportunity 3) PPCAD 4) Career Paths & Promotions 5) Personal Aid & Wellness
Term
An example of Incremental Earning Opportunity might be…
Definition
1) Bonuses, Accelrators, Contests 2) Customer Satisfaction Performance 3) Marketing Activity Compensation
Term
Resource Planning based on: Units of Sales Resources Required
Definition
Number of sales people to provide the desired amount of selling to defined accounts and market segments
Term
Resource Planning based on: Territory Designs and Confiurations to:
Definition
1) Ensure effective coverage of designated accounts and markets
Term
Resource Planning based on: Channel Options:
Definition
(Internal/External) - Best channel(s) to achieve Enterprise moarket objectives
Term
Blueprint
Definition
Performance Planning --> Counseling Appraising Development --> Territory Account Plans --> Territory Account Reviews --> Activity / Info Time Management --> Customer Feedback
Term
3 basic buying situations:
Definition
1) New Task 2) Modified Rebuy 3) Straight Rebuy
Term
Buying Situations Dictates…
Definition
1) Sales Strategies 2) Sales Processes 3) resources Required
Term
What is the Buying Center
Definition
Set of Definable Roles and Responsiblities necessary to manage the Investment Process
Term
Functions of the Buying Center
Definition
1) User (i.e., application performance responsibility) 2) Initiators (ie., objective attainment responsibility) 3) Decider (i.e., department heads, C-level) 4) Gate Keeper (i.e., finance, controller) 5) Influencers (i.e., IT and Engineering, experts/specialist in that category) 6) Buyers (i.e., Procurement)
Term
Strategy =
Definition
1) Selection, Priority Emphasis and Objectives by Role
Term
Tactics =
Definition
1) Sales Process Components by Role
Term
80/20 rule
Definition
80% of our business comes from 20% of our customers
Term
Competition is…
Definition
any past, current, or future potential solution to an application need
Term
Competition is NOT…
Definition
confined to external enterprise direct solution providers
Term
Customer Investment Criteria are..
Definition
easier to establish than to change
Term
A single strategic focus is…
Definition
1) Develop customer needs to our differentiated value add --Value Proposition 2) Set Customer Investment Criteria to the Strengths of our offering 3) Emphasize the impact of exclusivity versus competition in Demonstrations and Proposals
Term
Territory Management
Definition
1) Corporate Objectives --> Target Markets--> Geographies Accounts--> Sales Processes Skills
Term
Geographies Accounts & Sales Processes Skills
Definition
Classify Accounts --> Key Accounts --> General Territory & Industry Accounts --> New Prospect Accounts --> Assign Resources --> Territory & Key Account Planning
Term
Key Accounts
Definition
1) Existing largest, high-leverage accounts 80/20 rule 2) Define volume and strategic significance criteria 3) Top Priority 4) Focus
Term
Territory & Key Account Planning needs to be…
Definition
precisely structured and standardized
Term
Line vs Staff Positions
Definition
Support Functions Integrated into or Separated from Primary Functional responsibility
Term
Centralization
Definition
1) Decision Making Ownership 2) Consistency vs Flexibility for Variable Needs
Term
Span of Control vs Management Levels
Definition
1) Flat vs. Vertical Organization 2) Vertical = Multiple layers of Management w/few reports 3) Flat = Few layers of Management with many report 4)Communication and Control Efficiencies
Term
Specialization
Definition
1) Unique/Limited Expertise Applied to Entire Organization 2) Functional Dedication 3) Could be Strategic Business Units
Term
Sales Organization Objective
Definition
Maximize ROI Leverage for each unit of sales organization resource --> Validate Effectiveness from average amount of revenue and profitability per unit of sales organization resource
Term
Territory Sales Rep (SBU Owner)
Definition
1) Geographic Account Ownership 2) Self Sufficient Sales Skills 3) Geographic Business Objective (quotas) 4) All products and Services
Term
New Business Specialist (SBU Owner)
Definition
1) Advanced Sales Skills 2) Broad Business Concepts & Extensive Account Experience 3) Advanced / Competitive Sales Skills 4) Acount Win Objectives (quota)
Term
Industry Specialist (SBU Owner)
Definition
1) Industry / Market Expertise 2) Advanced Sales Skills 3) Industry Business Objectives (quota) 4) Overlay or Account Ownership 5) All Products and Services
Term
Key Account Specialist (SBU Owner)
Definition
1) Large Account Sales Expertise 2) Advanced Sales Skills 3) Key Account Ownership 4) Account Business Objectives (quota) 5) All Products and Services 6) Often Executive Postion with a Team
Term
The 5 Major Employee Needs
Definition
1) Pay 2) Promotion 3) Accomplishment 4) Acknowledgment 5) Security
Term
Advantage of Salary Type Plans
Definition
1) Simple, Planned earnings facilitates budgeting & Recruiting. 2) Customer Loyalty is enhanced. 3) More control of non selling activities
Term
Draw
Definition
an advance on future anticipated sales
Term
Reasons for using a DRAW
Definition
to compensate sales people for commission they would have earned
Term
Salary Equivalent
Definition
Market Value Compensation Paid to Satisfy a Specific Business Need
Term
Base Salary Component
Definition
Fixed Payment. Regardless of Quota Objective Attainment. Guarantee to assure stability in the sales force and control value add non-quota attainment activates.
Term
Commission Component
Definition
Commission Payment Made Relative to percentage attainment of quota. Payment amount varies on sales results. Specified % of salary equivalent.
Term
Commission Accelerators
Definition
A form of incremental commission incentive to motivate continuous exceeds performance
Term
Marketing Activity Compensation
Definition
1) Fixzed payment by rep for value add activites versus Quota Attainment. 2) Assures attention to quality initiatives with long term benefit
Term
Contests
Definition
1) competition among individuals & groups for a fixed value reward 2) Motivates temporary emphasis with low cost, high leverage results 3) Success depends on equity and Reasonable probablity of winning
Term
Bonuses
Definition
1) Incremental compensation for INDIVIDUAL performance against individual objectives 2) Provides FOCUS on Critical TEMPORARY Needs through Maximum Individual Incentive
Term
Degree of Commission Leverage depends on...
Definition
1) Significance of Influence on the prospects of winning 2) Sell Cycle & Transaction Frequency 3) Sales Force Stablity 4) Cost
Term
Quota Planning Considerations
Definition
1) Measurable Markets of Opportunity 2) Enerprise Reven & Profitablity Objectives 3) Reasonable & Equitably Attainable 4) Degree of commission leverage 5) Multiple Plan Types of Varying Activities 6) Market Dynamics: Change in Quotas or Commission Factors 7) Seasonality and Sales Plan Components 8) Sales Plus othe business needs 9) Major, prolonged changes in Market Environment 10) Employee Development, Career and Compensation Planning
Term
The only reason to change a rep's Quota
Definition
Inappreriate calculation or unforeseeable market conditions
Term
Quota Plan Benefits
Definition
1) Equitable Earnings Opportunities across Inequitable Territories 2) No Negative Impact on Earning from Territory Changes 3) Consistency, Equity and Simplicity among Various Plan Types 4) Multiple Options for Marketing Emphasis Compensation 5) Quotas are based on Opportunity and company objectives 6) Compensation is a function of quota attainment 7) Quotas Facilitate Corporate Expense-toRevenue Managmeent
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