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Sales Management Exam 2
Sales Management Exam 2
39
Marketing
Undergraduate 4
03/19/2013

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Cards

Term
Objectives of sales training programs
Definition
-improved self-management
-improve customer relations
-improved communications
-increased sales productivity
-lower turnover
-improve morale
Term
Line Executive training salespeople
Definition
Advantages- have much more credibility and ensures that salespeople truly understand supervisor's expectations, better rapport can be established
Disadvantages- lack of time and teaching ability
Term
Staff trainers training salespeople
Definition
Advantages- has more time, more resources, and better training skills
Disadvantages- lacks control, authority, and is generally not feasible for smaller companies
Term
Outside Specialist training salespeople
Definition
Advantages- has a great deal of expertise in focused areas
Disadvantages- presents program content that may not be specific to company needs
Term
Attitude of why to train immediately:
Definition
-no rep should be placed in the field until he or she is fully trained
-cannot risk exposing customers to poorly trained reps
Term
Attitude of why to delay training:
Definition
-much easier to train people who had some field experience
-weak salespeople are eliminated before company spends more money training them
Term
Pros and cons of decentralized training
Definition
Pros- allows for highly skilled trainers to lead sessions in which reps are focused 100% on training. Also allows interaction with home office.
Cons-is more expensive and keeps reps away from home and family
Term
Pros and cons of decentralized training
Definition
Pros- allows for highly skilled trainers to lead sessions in which reps are focused 100% on training. Also allows interaction with home office.
Cons-is more expensive and keeps reps away from home and family
Term
Pros and Cons of centralized training
Definition
Pros- is less expensive and allows the sales manager more time to make sure training is done correctly.
Cons- leads to training done by the sales manager, who often lacks time and skill to properly train.
Term
Maslow's Hierarchy of Needs
Definition
1. Physiological needs- food, shelter, clothing, etc.
2. Safety needs- job security, safety, income security
3. Social needs- affiliation, friendship, acceptance
4. Esteem needs- status, recognition
5. Self-actualization needs- self-development, challenge
Term
Expectancy Theory
Definition
Effort -> Performance -> Reward
Term
Expectancy
Definition
Probability that greater effort leads to higher performance
Term
Instrumentality
Definition
Probability that higher performance leads to more reward.
Term
Valence
Definition
Desirability of rewards
Term
Career Stages
Definition
1. Exploration
2. Establishment
3. Maintenance
4. Disengagement
Term
Causes of Plateauing
Definition
-no clear career path
-not managed adequately
-bored
-burned out
-economic needs met
-discouraged with company
-lack of ability
-reluctance to be transferred
Term
Steps in designing a sales compensation plan
Definition
-review job description
-identify plan's objectives
-establish level of compensation
-develop the method of compensation
-decide on indirect monetary compensation
-pretest and install plan
Term
Compensating cross-functional teams
Definition
-shared reward
-role-reward congruence
-team-member input
-peer evaluations
Term
Sales Quota
Definition
a performance goal assigned to a marketing unit for a specific period of time
Term
Types of Sales Quotas
Definition
-sales volume
-gross margin or net profit
-expenses
-activities
-combination
Term
Pros and Cons of Salespeople paying own expenses
Definition
Pros- simple for sales manager and firm, no costs to firm, allows flexibility
Cons- reps may not spend enough and hurt customer satisfaction
Term
Pros and Cons of an Unlimited Payment Plan for sales reps
Definition
Pros-flexible and fair, allows for differences in territories
Cons- encourages excessive spending
Term
Pros and Cons of Limited Payment Plan-limits per each item
Definition
Pros-limited and predictable expenses, helps control rep activities
Cons- inflexible, reps resent it. Plus, this plan involves close monitoring to ensure reps do not cheat by switching expenditures
Term
Pros and Cons of Limited Payment Plan- flat allowance
Definition
Pros- limited and predictable expenses
Cons- Inflexible, reps resent it
Term
Legal tax deductions through IRS regulations
Definition
50% of legitimate business entertainment expenses
Term
The IRS allows tax deductions of up to _______ for gifts given to a customer over the course of a year
Definition
$25
Term
Other methods of expense control
Definition
-training and enforcement
-credit cards
-expense bank account
-change in nature of entertainment
-telemarketing
-careful travel planning
Term
Market Potential
Definition
is the total expected sales of a given product for the entire industry.
Term
Sales Potential
Definition
refers to the maximum share (or percentage) of market potential that an individual firm can reasonable expect to achieve.
Term
Sales Forecast
Definition
is an estimate of sales (in dollars or units) that an individual firm expects to achieve during the forthcoming time period, in a stated market, and under a proposed marketing plan.
Term
Estimating Market and Sales Potential
Definition
-Market-factor derivation
-surveys of buyer intentions
-test markets
Term
Pros and Cons of sales force composite
Definition
Pros- relatively simple, fairly accurate, involves those people who are responsible for the results
Cons- Salespeople are sometimes overly optimistic, salespeople may sandbag to look better, time consuming
Term
Pros and cons of test markets
Definition
Pros- very accurate
Cons- time consuming, high cost
Term
Pros and cons of executive opinion
Definition
Pros- quick, easy, and simple
Cons- subjective, lacks analytical rigor
Term
Pros and cons of survey of buyers' intentions
Definition
Pros- done by those who will buy the product, so accuracy should be good
Cons- time consuming, high cost, customer may not cooperate
Term
Pros and cons of trend projections
Definition
Pros- objective and inexpensive, uses historical data
Cons- no consideration for major product or market changes, require some statistical analysis
Term
Exponential Smoothing
Definition
(L)*Sales + (1-L)*Forecasted Sales
Term
Regression
Definition
a + (B x independent variable)
Term
Guided principles for forecasting
Definition
-Fit the method to the product/market
-Use more than one method
-Minimize the number of market factors
-Recognize the situation limits
-Use the minimum/maximum technique
-Understand math and statistics
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