SALES ROLE IN THE ORGANIZATION
MANAGE RELATIONSHIPS
CREATE CUSTOMERS FOR LIFE
PROVIDE CUSTOMER SERVICE
COORDINATE CORPORATE RESOURCES
GATHERING INFORMATION
CUSTOMER DIALOGUE IS USEFUL
OBTAIN COMPETITIVE INFORMATION
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McGraw-Hill/Irwin Copyright © 2009 by the McGraw-Hill Companies, Inc. All rights reserved.Chapter 13Sales and SalesManagementTHE KEY ROLES OF SALESPEOPLETHE SELLING FUNCTIONMANAGE CUSTOMER RELATIONSHIPSGATHER INFORMATIONFrom CustomersFrom CompetitorsAbout Market Forces13-*SALES ROLE IN THE ORGANIZATIONMANAGE RELATIONSHIPSCREATE CUSTOMERS FOR LIFEPROVIDE CUSTOMER SERVICECOORDINATE CORPORATE RESOURCESGATHERING INFORMATIONCUSTOMER DIALOGUE IS USEFULOBTAIN COMPETITIVE INFORMATION13-*DETERMINING THE SALES STRATEGY OPTION TO FIT YOUR CUSTOMERSCRIPT-BASED SELLING—Used when all customers’ needs are similarNEEDS SATISFACTION SELLING—Identifying buyers’ needs and selling to themCONSULTATIVE SELLING—Bring specialized expertise for a customized solutionSTRATEGIC PARTNER SELLING—Seller-Customer joint effort for developing product solutionsExhibit 13-113-* Limited relationships Failure to monitor competitors or industry Complacency Generate reorders Upgrade Full-line sell Secure complete commitment from both companies Manage change ExplorationAwarenessCommitmentExpansion Set correct expectations Ensure proper initial use Follow up Make personal visits Handle complaints Achieve customer satisfactionDissolutionExhibit 13-2STAGES IN RELATIONSHIP BUILDLING13-*PARTNERSHIP COMMUNICATION:FROM SINGLE LEVEL TO MULTI-LEVELBuying CompanySelling CompanyEngineeringMarketingSalesFinanceCredit and BillingShipping& ReceivingProductionMarketingAccountingFinancePurchasingDepartmentShipping& ReceivingProductionMarketingAccountingFinancePurchasingShipping& ReceivingBuying CompanyEngineeringMarketingCredit & BillingFinanceSales PurchasingShipping& ReceivingSelling CompanyBEFORE PARTNERINGAFTER PARTNERINGPurchasingAgentSalespersonExhibit 13-413-*SALES ORGANIZATION OPTIONSORGANIZE GEOGRAPHICALLY USING CITIES, STATES, COUNTRIES, ZIP CODES, BY ACCOUNTORGANIZE BY PRODUCT AND DEVELOP SPECIALISTS FOR EACH PRODUCT CATEGORYUSE SALES TEAMS TO DEVELOP AND KEEP NEW BUSINESS.13-*BUYING AND SELLING TEAMS STREAMLINE MULTILEVEL SELLINGVice PresidentOf PurchasingVice PresidentOf SalesDirector ofPurchasingAccountManagerEngineerProductSpecialistBuying CompanySelling CompanyExhibit 13-513-*CUSTOMER FOCUSED TEAM STRUCTUREAccountConsultantF&A Rep.CustomerSales SpecialistsAccountManagerTeamLeaderManufacturingFinance andAccountingOther Business UnitsOtherRep.(s)PurchasingAgentShippingCSSRep.CustomerSupportServicePurchasingShippingManagerSalesSpecialistsProd. / Ind.Mktg. GroupsExhibit 13-713-*Exhibit 13-8ALLOCATION GRID FOR SALES RESOURCESRelatively fewerresources shouldbe allocated hereLowMaintain sufficientresources to continueto reap the salespotential and strongpositionHighDirect more salesresources hereAssign toalternative methodof communicating,such astelemarketingWeakStrongMARKET LIFETIME VALUERELATIVEPOSITION13-*DO YOU OUTSOURCE THE SALES FORCE? YES NOEstablish relationshipsSalary and selling expenses can be limitedLittle/no up-front investmentLoss of control over sales presentationProducts may not be a selling priority with representativeTO MAKE IT WORK:INVEST IN TRAINING ANDMERCHANDISING MATERIALS13-*SALES FORCE CONTROL MECHANISMSESTABLISH QUOTAS – Fair and Understandable Activity Quotas Performance QuotasESTABLISH COMPENSATION PLAN – Equitable, Stable, Understandable Straight Salary Straight Commission Combination Plans Bonus SystemMOTIVATION ACTIVITIES– Keep Sales Force Producing13-*MANAGER’S DILEMMA: EVALUATINGPERFORMANCE & MAINTAINING MOTIVATIONREVIEW SPECIFIC SALES OBJECTIVESOBTAIN APPROPRIATE PERFORMANCE DATA (outcomes and effort)EVALUATE WHAT WAS BEYOND SALESPERSON’S CONTROLIDENTIFY PROBLEMS AND OPPORTUNITIESCREATE A STRATEGY THAT RESOLVES PROBLEMS AND SEIZES OPPORTUNITIES5 STEPS TO EVALUATE SALES FORCE PERFORMANCEExhibit 13-1113-*RECOGNIZING AND IDENTIFYING A PROBLEMExpectationsEnormity of problem rests on length of this differenceResultsPROBLEM RECOGNITIONOur sales are down: WHY?We can’t see customers: WHY?We can’t make appointments on time : WHY?We spend too much time covering territory : WHY?Our territories are too big : WHY?We don’t have enough salespeople : WHY? THE 6xWHY FILTER Ask the WHY question at least six times(or as many times as necessary)PROBLEM IDENTIFICATION“The Problem”CONCLUSION / PROBLEMWe haven’t matched demand to our sales force.13-*