Difference between transactional and relationship selling
�Transactional Selling - transactions involving separate organizations, each entering into an independent transaction.
�Relationship Selling - narrows the vendor pool, improves efficiencies, works directly with customers to solve problems.
What are the 3 M's?
Minnesota, mining, manufacturing
Does the internet replace the need for sales people? In what situations is the internet most likely to replace sales people? What characteristics of a situation would make the internet least likely to replace sales people?
No it does not, Situations when a company has Electronic Data Interchange (EDI) and Efficient Consumer Response (ECR) they tie comps directly to their customers - comps can recognize low inventory and automatically order more. the internet can not form re
What is CRM?
Customer relationship mgmt - sophisticated CRM software systems can greatly aid in facilitating information collection, analysis, and dissemination
What is the sales mgmt process?
process of effective mgmt of a company sales force, has 3 interrelated sets of decisions or processes:
- the formulation of a sales program
- the implementation of a sales program
- the evaluation and control of a sales program
What is the sales program set up and how does it relate to sales performance?
better program accountability and better results, no static you have to be flexible
formulation of sales program
The sales program should consider the environmental factors faced by the firm. Sales executives organize and plan the company's overall personal selling efforts and integrate these with the other elements of the firm's marketing strategy.
implementation of sales program
- selecting the right sales personnel
- designing and implementing approaches that will direct their efforts toward the desired objective
evaluation and control of sales program
developing methods for monitoring and evaluating sales force performance appropriately
- allows for adjustments when performance is unsatisfactory
When expanding into a new global market, what do you need to consider?
External environment - relates to going into new culture and business - changes in the enviornment can create new marketing opps.
- when a new technology allows development of new prods.
- Take into consideration:
1. economic (competition)
2. legal and po
equal employment opportunity legislation
Directly affects how sales managers implement their sales programs
- Prohibits employment or advancing discrimination against race, color, religion, sex or national origin. Based on Title VII of the Civil Rights Act of 1964.
What is the difference between legal and ethical for a large scale organization? Who sets the overall tone & culutre?
- Ethics is more simply a matter of complying with laws and regulations, a particular action may be legal, but it is not ethical. - Managers are the ones that set the overall tone, they are in charge of establishing standards of ethical behavior for their
What are the 6 drivers of change?
- building longterm relationships
- creating sales org. structures that are nimble and adaptable to the needs of different cust. groups
- gaining greater job ownership and commitment from salesppl
- shifting sales mgmt style from commanding to coaching
-
Which of the following is one of the characteristics that generally distinguishes B2B sales from B2C sales
B2B customers tend to engage in extensive decision-making processes
What are the working conditions?
- lots of travel, entertaining expensive clients, occasional work-family conflict
- more salespeople are now able to telecommute and work from a virtual office, so they can work from home and seldom travel to company offices
what are the 6 steps in the selling process?
1 prospecting for customers, 2 opening the relationship, 3 qualifying the prospect, 4 presenting the sales message, 5 closing the sale, 6 servicing the account
what is one of the most important concepts in CRM?
the lifetime value of a customer, this is beneficial, profitable, and a win win
what is CRM not being implemented to its full potential? Why is the older generation pushing back?
More sophisticated approaches to data management are a key enabler of CRM. Yet, it is a serious mistake to consider CRM as mere software. In fact, many firms are struggling with their CRM initiatives precisely because they have bought the sophisticated so
What makes an attractive market?
1. The opportunity is consistent with the mission and objectives of the firm. 2. Enough potential customers exist for the needed product or service so the total potential sales volume is, or will be, substantial. 3. The firm has the necessary resources an
What are some pros of personal selling?
Create new value, "make the market", create a climate of cooperation with open and honest communication, provide expertise for competitive advantage, high level of personal trust in well managed business activities.
What is cross-selling and up-selling?
Cross-selling: in addition too what they have already bought. similar to full-line selling: works best when the sales person can buy leverage the existing relationship with the buyer Up-selling: - trading up to better version. upselling is a sale techniqu
What is the STGT partnership piece?
1. Time horizon - long term. 2. concern for other party - high 3. trust - high 4. investment in relationship - high 4. nature of relationship - collaboration 5. risk in relationship - high 6. potential benefits - high
What is Personal Selling's Role in Marketing Strategy?
One-shot transactions occurring between a buyer and seller with limited thought of future consideration.
New product line and new sales force, What should you be careful of?
Compensation, do not over pay certain individuals
What is team selling?
Is appropriate for the largest customers, where the potential purchase represents enough dollars and involves enough functions to justify the high cost
The key to successful team selling lies in:
Understanding the needs of the customer
What are some cons of personal selling?
1. Danger when one party in the relationship leaves. 2. Danger when one party in the relationship leaves. 3. Integrates personal selling, advertising and other communications options.
Telemarketing has proven to be useful in performing all of the following activities EXCEPT:
A prospecting
B providing technical assistance
C negotiation
D repeat purchases
E speeding up marketing communications
C
Lisa inherits a sales force that does what it wants. She wants to increase her control. How can she control her sales force?
A. By establishing operating procedures and policies
Sales staff executives are commonly used to:
A. Recruit new salespeople
B. Analyze sales trends and make forecasts
C. Train new salespeople
D. Collect and gather environmental information which line managers may need for decision making
E. Do all of the above
Which of the following statements about the economic criteria used to decide between using an independent agent or an internal sales force is true?
The fixed costs of using independent agents are lower than those of using a company sales force
Archway furniture is projecting their expected financial returns from different groups of customers. Archway is estimating the
C) Lifetime value of customers
the question of what business a firm is in is addressed in its
mission statement
According to Michael Porter, a firm practicing a niche strategy:
dominates a particular target market although its overall market share may be low
a strategic partnership between buyer and seller is identified by a:
collaborative relationship between the participants
the improvement of post-sale customer service and loyalty
A) creates positive word of mouth for the seller and its products,
B)allows a company to avoid the high costs associated with acquiring a new customer,
C) increases the number of customer referrals and
D) produces larger volume sales with lower selling an
Which of the following is NOT one of the six drivers of change identified in reinventing sales organizations?
organizing sales teams into regional office structures
in a survey of sales managers, the highest rated success factor was
listening skills
Selling in B2B markets involves sales to:
Resellers, business users, and institutions
_____ is the core of the selling process
the sales presentation
which of the following is the best example of a straight rebuy
following is the best example of a straight rebuy
the renewal of a subscription to a trade journal
Which of the following statements about the sales force in the 21st century is true?
Sales management must be smart and nimble and provide technology-centered solutions to support the sales effort
Sales management is a
Sales management is a multi-step interrelated process. Which step is concerned with environmental factors and attempts to organize the overall selling efforts as well as integrate them with the other elements of the firm's marketing strategy?
The formulation of the sales process
The potential demand for a product within a country depends on that country's
economic growth, unemployment rate, inflation rate and disposable income
the difference between a law and ethics is best described as
what is legal may not be ethical
which of the following is an example of the external natural environment for a manufacturer of metal lawn furniture?
a flood at the manufacturer's main warehouse
as a sales forecasting technique, market tests:
are often used with a new product or with an improved version of an established one
which of the following statements about sales quotas is true?
they emphasize sales or some aspect of sales volume, they focus on the activities in which sales reps are supposed to engage, they examine financial criteria such as gross margin or contribution to overhead
the phenomenon of a small percentage of customers or products accounting for a high percentage of the company's sales is called the:
80:20 principle
sales volume quotas based on historical data:
can demoralize salespeople and cause undesirable behavior
when designing sales territories, the sales manager should strive to make territories equal in terms of
workload and sales potential
Salesforce deployment refers to decisions regarding:
Simultaneous decision making regarding all of the above
- Sales force size and number of territories
- Design of individual territories
- Allocation of the total selling effort
What is the most popular type of sales quota?
money - sales dollar (volume)
What is the geographic control unit? When might a firm use a zip code as their control unit?
The basic control unit is the most elemental geographic area used to form sales territories�county or city, - zip codes are used for smaller sales units
What is the whole territorial design?
Stages in territorial design:
1. select basic control unit
2. estimate market potential in each control unity
3. combine control units into tentative territories
4. perform workload analysis
5. adjust tentative territories to allow for sales potential and
What are the general steps when deciding a control unit?
As a general rule, small geographic control units are preferable to large ones. With large units, areas with low potential may be hidden by their inclusion in areas with high potential, and vice versa. This makes it difficult to pinpoint true geographic p
Advantages of selling in IMC
-Face-to-face contact
-More persuasive
-More demonstrative
-Customization opportunities
Disadvantages of selling in IMC
-Limited ability to duplicate
-More costly