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Sales Management

VIEWS: 2 PAGES: 22

									Sales Force Management



       Fall 1999




                         1
Outline

Role of the sales force in corporate
 strategy
Trends in personal selling and sales
 management
Functions of the salesperson and sales
 manager
Course overview

                                          2
Strategic Leverage of the
Sales Force

Customer focus
Enhances customer loyalty
Source of competitive advantage




                                   3
Enhances Customer Focus

Allows a targeted market segment
 approach
  one customer at a time
  customize sales calls and presentations by
   needs
  important source of market knowledge and
   customer needs assessment


                                                4
Develops Customer Loyalty

Creates high switching costs
  salesperson (knowledge, expertise,
   relationship) creates product/service
   differentiation, particularly when competitors’
   products deliver the same basic benefits
Loyalty reduces the customers’ price
 sensitivity


                                                     5
Source of Competitive
Advantage

Creates a barrier to entry
  costs of creating a sales force
  market access
Creates a medium-to-long term
 competitive advantage
  unlike advertising (medium-term) or pricing
   (short-term)


                                                 6
Trends in Personal Selling

Nature of the sales job:
  Informed consultant:
    knowledge of customers, industries and
     applications
  Process (rather than event) driven
  Team player
  Customer advocate/Market feedback
  Integration of promotional mechanisms (e.g.
   DTC)
                                                 7
Trends in Personal Selling

Nature of the sales manager’s job:
  Decentralized management; greater span of
   control
  Automation
  Database targeting/customer data
  Evaluated on team performance (rather than
   individual performance)
  Reward in many ways (not just $$)

                                                8
Importance of Effective
Sales Management

Expensive part of marketing strategy
Cost of call:
  Overall average: $157
  ($239 for a value-added selling environment)




                                              9
Functions of the
Salesperson

Prospecting
Communicating: two-way
Allocating & coordinating: company
 resources, time
Servicing
Helping define marketing strategy


                                      10
Functions of the Sales
Manager

Communicate expectations: tell
 salespeople what you expect them to do
Make the work doable: an important
 component o the SM role here is removing
 obstacles to performance
Evaluate and give feedback: reward
 successful behavior, apply corrective
 actions for behavior that is not acceptable
                                           11
Course Overview

Effective Personal Selling
Strategic Issues
Tactical Issues
Industrial Settings
  informed buyers
  discipline of repeat purchase
  often genuine differentiation is possible

                                               12
Course Overview
(continued)

Effective Personal Selling
  What is effective personal selling?
  Business to business selling and the Buyclass
   Framework (Case: Lawford Electric)




                                               13
Course Overview
(continued)

Strategic Issues
  Vertical Integration (Case: Jamestown)
  Control Systems
  Structuring the Sales Force(Cases: Wright
   Line & Siebel Systems
  Sales Force Allocation: Deployment &
   Organization (Case: Syntex)
  Territory Assignment & Design
  Strategy for Optimal Sales Productivity
                                               14
Course Overview
(continued)

Tactical Issues
  Sales Analysis (Case: Milford A)
  Performance Evaluation (Case: Milford B)
  Compensation (Case:Mary Kay Cosmetics) &
   Motivation (Case: IMAGE)
  Selection (Case: IDS) & Training
  Information Systems/Sales Force Automation
   (Case: Profiling at National Mutual)
  Sales Force Automation
                                            15
Course Overview
(continued)

Putting it all together (Case: DigitalThink
 & Group Projects)




                                               16
Course Requirements

Class Participation 20%
Group Projects      35%
  DigitalThink Case
  Group Presentation
Mid-term Exam      20%
Final Exam         25%


                           17
Class Participation

Show up, on time.
Prepare cases and reading
Quality vs. quantity
Contribute articles/reading/examples
  http://www.salesandmarketing.com/
  http://www.sellingpower.com/
  http://www.decalibrary.org/

                                        18
Group Projects

DigitalThink Case
  Due November 17th on or before class. 5
   page limit on text w/ 3 page limit on exhibits
Group Presentation
  Only presentation needs to be submitted-- no
   paper/write-up




                                                    19
Mid-term & Final Exams

Case oriented
Mid-term will focus on personal selling &
 strategic issues
Final will be more heavily weighted on
 tactical issues




                                             20
Policies

Projects are due on or before class
You may challenge a grade-- but only in
 writing




                                           21
Communicating with the
Professor

E-mail is great (cain@haas.berkeley.edu)
The syllabus is on the web
Office hours: Wednesday 11:00am-
 2:00pm
By appointment



                                            22

								
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