Sales Force Management

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Feb 17, 2014 (3 years and 3 months ago)

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1

Sales Force Management


Fall 1999

2

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

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Strategic Leverage of the
Sales Force


Customer focus


Enhances customer loyalty


Source of competitive advantage

4

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

5

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

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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)

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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)

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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 $$)

9

Importance of Effective
Sales Management


Expensive part of marketing strategy


Cost of call:


Overall average: $157


($239 for a value
-
added selling environment)

10

Functions of the
Salesperson


Prospecting


Communicating: two
-
way


Allocating & coordinating: company
resources, time


Servicing


Helping define marketing strategy

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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

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Course Overview


Effective Personal Selling


Strategic Issues


Tactical Issues


Industrial Settings


informed buyers


discipline of repeat purchase


often genuine differentiation is possible

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Course Overview
(continued)


Effective Personal Selling


What is effective personal selling?


Business to business selling and the Buyclass
Framework (Case: Lawford Electric)

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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

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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

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Course Overview
(continued)


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

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Course Requirements


Class Participation 20%


Group Projects 35%


DigitalThink Case


Group Presentation


Mid
-
term Exam 20%


Final Exam 25%

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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/

19

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

20

Mid
-
term & Final Exams


Case oriented


Mid
-
term will focus on personal selling &
strategic issues


Final will be more heavily weighted on
tactical issues

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Policies


Projects are due on or before class


You may challenge a grade
--

but only in
writing

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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