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1、 85/85Sales Management 761Jim StoddardTOC o 1-3AN OVERVIEW OF CONTEMPORARY SALES MANAGEMENT PAGEREF _Toc480555255 h 31.PLANNING: PAGEREF _Toc480555256 h 32.IMPLEMENTATION: PAGEREF _Toc480555257 h 43.EVALUATION AND CONTROL: PAGEREF _Toc480555258 h 4AN OVERVIEW OF PERSONAL SELLIN PAGEREF _Toc480555260
2、 h 51.ALTERNATIVE SELLING TECHNIQUES PAGEREF _Toc480555261 h 52.PROSPECTING PAGEREF _Toc480555262 h 63.THE PREAPPROACH PAGEREF _Toc480555263 h 74.Qualifying the prospect: PAGEREF _Toc480555264 h 75.THE APPROACH PAGEREF _Toc480555265 h 76.THE PRESENTATION PAGEREF _Toc480555266 h 87.MEETING OBJECTIONS
3、 PAGEREF _Toc480555267 h 98.CLOSE PAGEREF _Toc480555268 h 99.FOLLOW-UP CAREER STAGES PAGEREF _Toc480555269 h 10CORPORATE, BUSINESS, AND MARKETING STRATEGIES PAGEREF _Toc480555270 h 111.PORTERS TYPOLOGY OF COMPETITIVE STRATEGIES PAGEREF _Toc480555271 h 122.MILES AND SNOW COMPETITIVE STRATEGY TYPOLOGY
4、 PAGEREF _Toc480555272 h 12ACCOUNT MANAGEMENT AND ACCOUNT COVERAGE STRATEGIES PAGEREF _Toc480555273 h 141.COMMUNICATION TASKS APPROPRIATE FOR PERSONAL SELLING PAGEREF _Toc480555274 h 152.PARTICIPANTS IN THE ORGANIZATIONAL BUYING PROCESS PAGEREF _Toc480555275 h 16ORGANIZING THE ACTIVITIES OF SALES MA
5、NAGERS AND SALES PEOPLE PAGEREF _Toc480555276 h 171.ECONOMIC METHOD OF DETERMINING IF OUTSIDE AGENTS ARE APPROPRIATE PAGEREF _Toc480555277 h 182.CONTROL AND STRATEGIC CRITERIA FOR DETERMINING IF A COMPANY SALES FORCE SHOULD BE USED PAGEREF _Toc480555278 h 183.HORIZONTAL ORGANIZATIONAL STRUCTURES PAG
6、EREF _Toc480555279 h 19ALLOCATING SELLING EFFORT AND DESIGNING SALES TERRITORIES PAGEREF _Toc480555280 h 22STAFFING THE SALES FORCE: RECRUITMENT AND SELECTION PAGEREF _Toc480555281 h 241.CONTENT OF THE JOB DESCRIPTION PAGEREF _Toc480555282 h 242.METHODS FOR DECIDING ON SELECTION CRITERIA PAGEREF _To
7、c480555283 h 253.SOURCES OF RECRUITS PAGEREF _Toc480555284 h 25CONTINUAL DEVELOPMENT OF THE SALES FORCE: SALES TRAINING PAGEREF _Toc480555285 h 27SALES FORCE MOTIVATION PAGEREF _Toc480555286 h 30MANAGING SALES FORCE REWARD SYSTEMS PAGEREF _Toc480555287 h 33LEADERSHIP PAGEREF _Toc480555288 h 36DEMAND
8、 ASSESSMENT AND SALES QUOTAS PAGEREF _Toc480555289 h 40EVALUATION AND CONTROL PAGEREF _Toc480555290 h 45Performance Evaluation PAGEREF _Toc480555291 h 48Acknowledgements PAGEREF _Toc480555292 h 50CHAPTER 1AN OVERVIEW OF CONTEMPORARY SALES MANAGEMENTSales force management is the management of the per
9、sonal selling component of an organizations marketing program.The activities involved in managing the personal selling function include:1. The formation of the strategic plan (PLANNING). 2. The implementation of the sales program (IMPLEMENTATION).3.The evaluation and control of sales force performan
10、ce (CONTROL). PLANNING:The formation of a strategic sales program requires five major sets of decisions:1.How can the personal selling effort best be adapted to the COMPANYS ENVIRONMENT and integrated with other elements of the firms marketing strategy?2.How can various types of potential customers
11、be best approached? persuaded? serviced? What ACCOUNT MANAGEMENT POLICIES should be adopted?3.How should the sales force be ORGANIZED to call on and manage various types of customers as efficiently and effectively as possible?4.What level of performance should each member of a sales force be expecte
12、d to attain during the next planning period? This involves FORECASTING DEMAND and setting QUOTAS AND BUDGETS.5.How should the sales force be deployed? How should sales territories be defined? What is the best way for each sales persons time to be allocated within his or her territory? This involves
13、decisions about TIME AND TERRITORY MANAGEMENT.IMPLEMENTATION:Implementing a sales program involves motivating and directing the behavior of the sales force.At least 5 factors influence a sales persons job behavior and performance:1. Environmental variables2. Role perceptions3.Aptitude4.Skill level5.
14、Motivation levelImplementing a sales program involves designing policies and procedures so that the job behavior and performance of each sales person is shaped and directed toward the firms objectives and performance goals.EVALUATION AND CONTROL:Evaluation and control is the process of measuring and
15、 assessing the performance of a sales person or sales force.There are 3 major approaches that a company might utilize to evaluate and control the sales force and monitor sales program performance:1. Sales analysis approach (Volume)2. Cost analysis approach (Costs)3. Behavior analysis approachCHAPTER
16、 2AN OVERVIEW OF PERSONAL SELLINGRetail Selling - involves selling goods and services to ultimate consumers for their own personal use.Examples:door-to-door salespeopleinsurance agentsreal estate brokersretail store clerks Industrial Selling - is the sale of goods and services at the wholesale level
17、. Industrial selling involves 3 types of customers:1.Sales to resellers (i.e., retailers)2. Sales to business users (i.e., manufacturers)3.Sales to institutions (i.e., hospitals or governments)Similarities between retail and industrial selling:- require interpersonal skill- require solid knowledge o
18、f the products being sold- require an ability to discover the customers needs and problems Differences between retail and industrial selling:- industrial goods and services are more expensive and technically complex - industrial customers tend to be larger and engage in extensive decision making pro
19、cesses involving many people within their company ALTERNATIVE SELLING TECHNIQUESMost selling techniques conform to one of four broad philosophical orientations or approaches toward dealing with customers:1.The stimulus-response approach - based on the notion that every sensory stimulus produces a re
20、sponse. Sales recruits learn what to say (the stimulus) and what the buyers are likely to say (the response) in most circumstances.Mental-states approach - based on the idea that a buyers mind passes through successive stages before he or she decides to make a purchase. Based on the AIDA theory of p
21、ersuasion (Attention, Interest, Desire, Action). Selling formulas are used to design a sales presentation that coincides with the buyers movement through the stages. Need-satisfaction approach - based on the idea that customers are to be served rather than products sold.Customers needs are the start
22、ing point in making a sale. The sales persons task is to identify the prospects needs, make the prospect aware of that need, and then persuade the prospect that his or her product or service will satisfy that need better than any other alternative. Problem-solving approach - similar to the need-sati
23、sfaction approach except that the sales person goes one step further to help the prospect identify SEVERAL alternative solutions, analyze their advantages and disadvantages, and select the best solution. PROSPECTINGProspecting - is the method or system by which sales people learn the names of the pe
24、ople who need the product and can afford it.Names and addresses of good prospects can be obtained in a number of ways:1. sales managers can prepare lists of prospects.2.customers can suggest new leads (snowball technique).3. present users may want new or different petitors customers can make good pr
25、ospects.5.trade association and industry directories.6.telephone directories.7.other sales people.8.suppliers, social and professional contacts.One question that must be addressed by a firms account management policies is how much emphasis sales people should give to prospecting for new customers ve
26、rsus servicing new accounts.In general, sales reps should devote a large percentage of time to prospecting if:1.If the firms product is in the introductory stage of its product life cycle.2.If it is an infrequently purchased durable good.3.If the typical customer does not require much service after
27、the sale.On the other hand, sales reps should spend most of their effort servicing existing customers if:1.The firm has a large market share.2. The firm sells frequently purchased nondurable products.3.The firms products require substantial service after the sale to guarantee customer satisfaction.T
28、HE PREAPPROACHPreapproach - includes all the information gathering activities necessary to learn relevant facts about the prospect and his or her needs and situation.The preapproach consists of four functions:1.To qualify the lead or disclose the partys needs and ability to pay.2.To provide informat
29、ion that will enable the seller to tailor the presentation to the prospect.3.To provide information that may keep the sales rep from making serious tactical errors during the presentation.4.To increase the sales reps confidence to feel able to handle what ever may arise during the sale.Qualifying th
30、e prospect:Before the sales person attempts to set up an appointment for a major sales presentation, he or she should determine whether the prospect qualifies as a worthwhile potential customer.Qualification involves finding the answers to three important questions:1.Does the prospect have a need fo
31、r my product or service?2.Can I make the people that are responsible for buying so aware of that need that I can make a sale?3.Will the sale be profitable to my company?THE APPROACHApproach - inspires interest in hearing more about the proposition, makes an easy transition into the presentation, and
32、 gets the prospects attention.For most sales training programs, six basic approaches are used:1.Introductory approach - the sales rep merely introduces him/herself and identifies the company he or she represents.2.Assessment approach - the sales rep opens the interview with a plea for information or
33、 permission to investigate the companys problem.3.Product approach - consists of handing the product to the prospect, with little or no conversation.4.Customer-benefit approach - the sales rep selects a benefit package that will likely be of most interest to the prospect - based on what is known abo
34、ut the situation.5.Referral approach - the sales rep receives permission of past or present customers to use their names as a reference in meeting a new prospect.6.Consultative approach - the sales rep opens the sale by getting the prospect to talk about the problem.THE PRESENTATIONPresentation - th
35、e main body of the sale where the sales rep presents the product or proposition and shows the prospect its benefits.Good sales presentations are built around a forceful product demonstration.Canned presentations are prepared sales presentations.Advantages:1. gives new sales people confidence.2. can
36、utilize sales techniques proven effective.3. gives some assurance that the complete story will be told.4. greatly simplifies sales training.Through out the presentation the sales rep makes trial closes to determine whether the customer is ready to buy. This can be done by asking such questions as:Wh
37、ich model do you like best? Which color do you prefer? Cash or financing? If all goes well in the trial close, the sales rep goes right on into an assumptive close and wraps up the sale.A sales rep using an assumptive close assumes that the sale has been made. The sales rep starts filling out the or
38、der form.However, if all does not go well, the next phase of selling (i.e., meeting objections) must be undertaken.Points to keep in mind concerning sales presentations: 1. Dont run down competitors. 2. Dont be too aggressive or abrasive.3. Have full knowledge of competitors products.4. Have full kn
39、owledge of customers business.5. Keep the presentation simple.6. Seek credibilityMEETING OBJECTIONSMeeting Objections - objections should be welcomed and indicate that the prospect has some interest in the proposition.Stated versus hidden objections:Stated objections may be phoney.Objection to price
40、 and product:To price: price too high or prospect can not afford the price.Procrastinating objections:Examples include:1. Let me think about it for a while.2. I have to talk it over with my family.3. I have to wait until next pay check.4. I have to look around some more.CLOSEClose - asking for the o
41、rder.There are 5 types of closing methods.1.The assumptive close - merely assume prospects are going to buy and begin taking orders by asking questions.2.The physical-action close - hand the prospect a pen as an indication its time to sign.3.The standing-room-only close - sales rep tells prospect th
42、e product is hard to get in the hopes that the prospect will sign the order.4.The trap close - using the prospects objections to close the sale.5.The special offer close - giving the customer a special offer to induce them to buy.FOLLOW-UPCAREER STAGESRecent research has identified 4 distinct career
43、 stages that sales people go through during the course of their careers.1.Exploration - people in the earliest stages of their careers (typically their 20s). They are often unsure about whether selling is the most appropriate occupation for them to pursue and whether they can be successful sales peo
44、ple.2.Establishment - people in this stage (late 2-s - early 30s) have settled on an occupation and desire to build it into a successful career.Primary concern - improving skills and performance and value compensation and promotion. 3.Maintenance - this stage normally begins around the sales persons
45、 late 30s or early 40s.Primary concern - retaining present position, status, and performance level within the sales force, which are likely to be quite high. By this stage both the opportunity and desire for promotion diminishes. 4.Disengagement - people begin preparing themselves for retirement and
46、 the possible loss of self-identity that can accompany separation from the job (late 50s - early 60s).During this stage, sales people psychologically withdraw from their job, after seeking to maintain just an acceptable level of performance with a minimum amount of effort so that they can develop th
47、eir interests outside of work. CHAPTER 5CORPORATE, BUSINESS, AND MARKETING STRATEGIESI.Relations Among Environmental Factors, Marketing Plans, and the Sales ProgramA.To be successful, a firms plans must be adapted to the influences of the external and internal corporate environments. As these enviro
48、nments change, appropriate adjustments should be made in the firms marketing strategy.B.A firms sales program is only one part of an integrated marketing strategy. As changes are made in other parts of the marketing strategy, the sales program must be adjusted if it is to remain effective.C.Regardle
49、ss of how well conceived a sales program is, or how well it is integrated into a firms overall marketing strategy, its implementation depends on the willingness and ability of individual members of the sales force to carry out its policies and procedures. Factors in the external and corporate enviro
50、nments can directly influence a sales persons actions in the field and his or her ability to achieve the desired level of performance. II. Marketing PlanningA. Importance of PlanningPlanning - is deciding what to do in the present to achieve what is desired in the future. It requires decisions conce
51、rning the firms goals and objectives for the future and the actions that should be taken to accomplish them. A strategy is a statement of the fundamental pattern of present and planned objectives, resource deployments, and interactions with markets, competitors, and other environmental factors that
52、indicate how an organization - or subunit or department within an organization - intends to survive and prosper over time. B. The Planning Process - Types of PlansA sales program constitutes only one part of a marketing plan, and the marketing plan is only one element of the total strategic plan in
53、most firms. Strategic planning in most large firms typically occurs in several stages which guide activities at different levels within the organization. This hierarchy of plans commonly includes the following:1. The Corporate Strategic Plan2. Strategic Business Unit Plans3. Marketing Plans4. Progra
54、ms for Individual Marketing FunctionsC. The Marketing Planning ProcessPORTERS TYPOLOGY OF COMPETITIVE STRATEGIES1.Low Cost Strategies - position a supplier as a high volume producer with tight cost and overhead control. Capitalizes on economies of scale. Associated with relatively high market share.
55、2.Differentiation Strategies - the creation of something perceived industry-wide as being unique. Provides insulation against competitive rivalry because of brand loyalty and decreased price sensitivity.3.Niche Strategies - serving a particular target market, although market share in the industry mi
56、ght be low, the firm dominates a segment within the industry.MILES AND SNOW COMPETITIVE STRATEGY TYPOLOGY1.Prospectors - attempt to pioneer in both product and market development.2.Defenders - offer a limited, stable product line to a predictable (i.e., nonchanging) market. Emphasize being the low-c
57、ost producer.3.Analyzers - pioneer in new products and markets while at the same time retain a foothold in mature markets.4.Reactors - dont do anything proactive, they simply attempt to survive by reacting to environmental conditions.III. Environmental Impact on Marketing and Sales PlanningFactors b
58、oth internal and external to the firm affect the feasibility of marketing strategies and programs. Environmental factors influence marketing strategies sand programs in four basic ways:1.Environmental factors can constrain the organizations ability to pursue certain marketing strategies or activitie
59、s. 2.Environmental variables, and changes in those variables over time, help determine the ultimate success or failure of marketing strategies.3.Changes in the environment can create new marketing opportunities for an organization.4.Environmental variables themselves are affected and changed by mark
60、eting activities.Therefore, one of the most important parts of a marketing managers job is to monitor the environment and predict how it might change and develop marketing strategies suited to environmental conditions. External Environmental Variables:1.Economic a. total potential demand b. level of
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