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					Role of sales in marketing mix

       Salesforce
            o part positioning:
            o part mechanism:

       Entrepreneurial selling: founder of the startup must be able to sell
            o personal selling: tailoring the sale to the customer
            o Hunter salesmen vs. farmer salesmen
                    Tandems East

Sales Strategy in the Marketing Mix

       Positioning and market segmentation
            o The “perfume women” in malls (all dressed up basically looking like doctors to achieve a feel of
                credibility, authority, professionalism)
            o The sales experience difference between Wal-mart and Nordstrom’s

       Role of sales force: do they get customers or does the marketing department?

       Rep vs. direct
           o Rep: represent multiple companies, are cheaper to hire,
                     Beneficial to use a rep who sells products that have a long life-span
                           i.e. he sells 4 different brands of refrigerators, each meeting a different need. So, when
                              he is contacted he can recommend the best product for the customers’ need
                     Disadvantage: does not attain long-term relationships with customers

       Personal vs. Telemarketing
            o Personal: use for heavy consideration products
            o Telemarketing: works with small-purchase items (not cars) that are frequent and cheap

       Size, deployment, compensation, recruiting, training?


       Find and qualify leads
       Consult with customers (consultative selling)
            o Solution selling
            o Medical equipment
            o Financial services
       Negotiate price – car salesmen
       Close sale
Indirect vs Direct

       Manufacturers Reps
           o Advantages
           o Disadvantages
       Control issues: have to make sure outside sales reps are pushing your product
           o Have to have incentives in place to keep them selling
                     Give him a higher commission, qualified leads
           o Your direct rep needs to have an in-depth knowledge of the products he’s selling
       Managing reps

Personal vs Telephone

           Funnel Analysis (MKT 310)
           Have to decide what type of sales (personal or telephone) is more economical or necessary

Size Deployment and Organization

       Size dictated by ROI
            o 100 reps selling $1 million each compared to 100 reps selling $50,000 apiece
       Deployment
            o Skim the cream
       Segmentation
            o Regional – where are the customers?
            o Travel should be justified


       Compensation drives behavior
           o Incentives should match
       When sales negotiates price –profit should be part of the equation
       Time horizons – should match yours
       Non-selling functions part of compensation - attending training, etc
       Coasting or farming

Success Examples

       50% of companies surveyed have no limit on earning potential – you want your Salesforce to aim big
       Snap-on
           o What kind of selling?
                   Relationship
Creating a Sales Forecast – ON TEST – know how to read and formulate

      Inputs:
           o     Target market                                         30,000
           o     Definitely Would Buy                                  15%
           o     Probably Would Buy                                    10%
           o     Awareness                                             grows to 80%
           o     Trial (from customer)                                 6000
           o     Cumulative Trial
           o     Repeat trial                                          4 x a month
                      % of customers repeat purchases

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