Mkt 456 Midterm 1

Front 1

5 Functions of a Sales Manager:

Back 1

1. Controlling
2. Leading
3. Planning
4. Staffing
5. Training

Front 2

3 Types of Sales Managers:

Back 2

1. Operational
2. Strategic
3. Tactical

Front 3

3 Sales Management Skills:

Back 3

1. Conceptual and Decision Skills
2. People Skills
3. Technical Skills

Front 4

6 Trends in Sales Management:

Back 4

1. From Administrative to Entrepreneurial
2. From Individuals to Teams
3. From Local to Global
4. From Management to Leadership
5. From Sales Volume to Sales Productivity
6. From Transactions to Relationships

Front 5

4 Tendencies of Effective Sales Managers:

Back 5

1. A strategic perspective focused on customers
2. Attract, Keep and Develop Sales Talent
3. Focus on a number of specific activities in their interaction with sales people
4. Leverage Technology

Front 6

7 Characteristics of Sales Careers:

Back 6

1. Advancement Opportunities
2. Compensation
3. Immediate Feedback
4. Independence
5. Job Security
6. Job Variety
7. Prestige

Front 7

9 Classifications of Sales Jobs:

Back 7

1. Combination sales jobs
2. Direct to consumer sales
3. Existing Business
4. Inside Sales (non-retail)
5. New Business
6. Order getters
7. Order takers
8. Sales support
9. Support people

Front 8

e.g. fast food counter people, pizza delivery people, grocery stockers

Back 8

order takers

Front 9

B2B sales people, door to door sales people, insurance sales people

Back 9

order getters

Front 10

missionary sales people, technical sales people

Back 10

support people

Front 11

5 Characteristics of Effective Sales People:

Back 11

1. Ego Drive
2. Ego Strength
3. Empathy
4. Enthusiasm
5. Interpersonal Communication Skills

Front 12

Ex: What impact does a company going out of business have on society?

Back 12

economic responsibility

Front 13

Ex: What happens when the laws in another country are different from your own?

Back 13

legal responsibility

Front 14

Ex: Who decides what is ethical and what is not?

Back 14

ethical responsibility

Front 15

Ex: Name some companies who are involved in philanthropic activities.

Back 15

discretionary responsibility

Front 16

4 Responsibilities of an Organization:

Back 16

1. Discretionary
2. Economic
3. Ethical
4. Legal

Front 17

3 Approaches to Management Ethics:

Back 17

1. Amoral Management
2. Immoral Management
3. Moral Management

Front 18

Intentional and consistent management activity conflicting with what is moral (ethical).

Exploits opportunities for corporate gain. Cut corners when it appears useful.

Seeks profitability and organizational success at any price.

Selfish. Management cares only about its or the company’s gain.

Back 18

Immoral Management

Front 19

Management activity that is neither consistently moral or immoral . . . Decisions lie outside the sphere to
which moral judgments apply.

Give managers free rein. Personal ethics may apply but only if managers choose. Respond to legal
mandates if caught and required to do so.

Seeks profitability. Other goals are not considered.

Well-Intentioned but selfish in the sense that impact on others is not considered.

Back 19

Amoral Management

Front 20

Management activity conforms to a standard of ethical or moral behavior.

Live by sound ethical standards. Assume leadership position when ethical dilemmas arise. Enlightened self-interest.

Seeks profitability within the confines of legal obedience and ethical standards

Management wants to succeed but only within the confines of sound ethical precepts.

Back 20

Moral Management

Front 21

8 Ethical Considerations in Dealing with Salespeople:

Back 21

1. Decision affecting territory
2. Employee Rights
3. Level of Sales Pressure
4. Privacy
5. Sexual Harassment
6. Termination at Will
7. The ill salesperson
8. To tell the truth?

Front 22

6 Ethical Considerations in Dealing with Customers:

Back 22

1. Bribes or gifts
2. Exclusive Dealership
3. Price Discrimination
4. Reciprocity
5. Sales Restrictions
6. Tie-in Sales

Front 23

7 Ethical Considerations in Dealing with the Company:

Back 23

1. Create an Ethical Sales Climate
2. Create Ethical Structures
3. Encourage Whistle-blowing
4. Establish a Code of Ethics
5. Establish Control Systems
6. Follow the leader
7. Leader selection is important

Front 24

Low Magnitude, Low Significance

Back 24

Taking Pencils

Front 25

High Magnitude, High Significance

Back 25

Pre-meditated Murder

Front 26

6 Factors of Strategic Plan:

Back 26

1. Mission
2. Objectives
3. Strategies
4. Tactics
5. Values
6. Vision

Front 27

Four Questions of Strategic Plan:

Back 27

1. Can we afford it?
2. How should we get there?
3. Where are we?
4. Where do we want to be?

Front 28

3 Focuses of Strategies' Impact on Sales Management:

Back 28

1. Differentiation
2. Low cost
3. Niche

Front 29

Focus on large old and new customers, price basis selling, minimizing costs, lots of order taking

Back 29

Low Cost

Front 30

Non-price benefit focus, high quality customer service, prospecting and order getting, high-quality sales force

Back 30

Differentiation

Front 31

Experts in operations and opportunities associated w/ the target market, non-price benefits focus

Back 31

Niche

Front 32

Creation of customer loyalty

Seek more than a simple transaction

Being customer oriented

Looking for customers to whom you can sell to now and in the future

Determining that good customers need continuous attention

Back 32

Relationship Marketing (CRM)

Front 33

3 Levels of Relationship Marketing:

Back 33

1. Partnering
2. Relationship selling
3. Transaction selling

Front 34

Sales manager must be aware of organization’s strategic plan first

Sales manager must also be aware of organization’s marketing strategy

Back 34

Strategic Planning and Sales Management

Front 35

7 Variables Sales Managers should already know:

Back 35

1. Channel policies
2. Defined Markets
3. Distribution
4. Marketing information
5. New products in the pipeline
6. Pricing
7. Product Mix

Front 36

Guidelines for the sales force to establish relationships with customers

1. How much selling effort is necessary to gain and hold customers?

2. Is the sales force the best marketing tool, compared to
advertising and other sales promotion methods, in
terms of costs and results?

3. What types of sales activities—for example, technical
assistance and frequent or infrequent sales calls—will
be necessary?

4. Can the firm gain strength relative to its competition with its sales force?

Back 36

Relationship Marketing and The Sales Force

Front 37

3 Basic Goals of Setting Next Year's Sales Plan:

Back 37

1. Make sales to customers and potential customers
2. Provide services to customers
3. Transmit information received from customers to the firm

Front 38

Objectives are measured with what 4 variables in setting next year's sales plan?

Back 38

1. Contributions to profits
2. Market share
3. Return on assets managed by the sales force
4. Sales/cost ratio

Front 39

7 Sales Force Objectives:

Back 39

1. Convert plans into individuals objectives
2. Determine which ones are most important
3. Establish Progress Checkpoints
4. Formalize your plan
5. Helps if you allow field managers to participate
6. Must compare present with future
7. Must develop a budget

Front 40

8 Types of Organizational Structures:

Back 40

1. Functional Sales Organization
2. Geographic Sales Specialization
3. Hybrid Sales Organization
4. Line authority/ Staff authority
5. Market Sales Organization
6. Product Sales Specialization
7. Pure Line Ogranization
8. Strategic Account Organization

Front 41

Without _____________, the organization's right hand does not know what the left hand is doing

Back 41

coordination

Front 42

5 Factors which sales managers must consider in sales organization concepts:

Back 42

1. Customers in each market
2. Design of sales jobs so that it is around customers
3. Job activities salespeople must do
4. Sales force organizational structure
5. Types of sales jobs needed to serve a market

Front 43

3 Sales Force Size Considerations:

Back 43

1. Organizational Strategy
2. Sales Productivity
3. Sales Turnover

Front 44

3 Sales Force Size Tools:

Back 44

1. Breakdown Approach
2. Incremental Approach
3. Workload Approach

Front 45

Forecasted Sales/ Average sales per person

Back 45

Breakdown Approach

Front 46

Total Selling Effort/ Average sales effort per person

Back 46

Workload Approach

Front 47

Compares the marginal profit contribution with the marginal selling costs for each incremental salesperson

Back 47

Incremental Approach

Front 48

7 Reasons to have sales territories:

Back 48

1. Allow better matching of sales person to customer
2. Benefit salespeople and the company
3. Establish a salesperson's responsibility
4. Evaluate performance
5. Improve customer relations
6. Obtain through coverage of the market
7. Reduce sales expense

Front 49

4 Reasons not to have sales territories:

Back 49

1. Company is small
2. Management is not willing to take the time to do it right
3. Need to highly motivate salespeople to get new customers
4. Personal friendship is very important

Front 50

6 Factors in Designing Sales Territories:

Back 50

1. Assign Territories
2. Basic Control Unit
3. Basic Territories
4. Customer Contact Plan
5. Sales objectives
6. Workload for individual salespeople

Front 51

7 Functions of Territorial Sales Manager:

Back 51

1. Builds goodwill with customers
2. Helps customers resell products to their customers
3. Helps customers use products after purchase
4. Provides company with market information
5. Provides services to customers
6. Provides solutions to customers' problems
7. Sells to current and new customers

Front 52

3 Functions of Customer Contact Plan:

Back 52

1. Planning Routes
2. Scheduling
3. Using the Telephone

Front 53

5 Decisions helped by forecasting:

Back 53

1. Designing territories
2. Determining sales compensation levels
3. Determining salesforce size
4. Evaluating prospective accounts
5. Establishing sales quotas and selling budgets

Front 54

Manager studies the firm's internal and external environments to determine which factors may influence sales

Looks at industry as a whole

Looks at company sales potential

Continues to breakdown into smaller groups for forecasts

Back 54

Breakdown forecasting

Front 55

Starts with forecasting for individual accounts and building up from there

Difficult for firms with large product lines

Back 55

Buildup forecasting

Front 56

2 Types of Sales Forecasting Methods:

Back 56

1. Mathematical Methods
2. Survey Methods

Front 57

3 Types of Survey Methods:

Back 57

1. Customer intention surveys
2. Executive opinion
3. Sales force composite

Front 58

6 Types of Mathematical Methods:

Back 58

1. Correlation analysis
2. Decomposition methods
3. Market factors
4. Naive models
5. Test markets
6. Trend analysis

Front 59

9 Factors that influence selection and placement:

Back 59

1. Actual selection
2. Evaluate selection results
3. Job Design and Analysis
4. Performance Evaluation
5. Placement
6. Qualified Applicant Pool
7. Recruiting
8. Socialization
9. Steps in the selection process

Front 60

6 Problems with Inadequate Implementation of Recruitment and Selection:

Back 60

1. Difficulty in establishing enduring relationships with customers
2. Higher turnover rates
3. Inadequate sales coverage and lack of customer follow-up
4. Increased training costs to overcome deficiencies
5. More supervisory problems
6. Suboptimal total salesforce performance

Front 61

7 Steps in the Selection Process:

Back 61

1. Application
2. Initial Interview
3. In-depth Interview
4. Testing
5. Reference checks
6. Physical examination
7. Decision

Front 62

3 Types of Interviews:

Back 62

1. Initial Interview
2. Intensive Interview
3. Stress Interview

Front 63

2 Types of Tests associated with Interviews:

Back 63

1. Employment Tests
2. Polygraph Tests

Front 64

5 Types of Employment Tests:

Back 64

1. Aptitude Tests
2. Intelligence Tests
3. Interest Tests
4. Knowledge Tests
5. Personality Tests

Front 65

3 Reasons to do Sales Training:

Back 65

1. Designed to improve efficiency and effectiveness of salespeople
2. People never stop learning
3. Reengineering training

Front 66

Sales Training helps socialize the new hires, providing them with a positive _________ and ____________.

Back 66

Initiation to Task and Role Definition

Front 67

the degree to which a sales trainee feels competent and accepted as a working partner

Back 67

initiation to task

Front 68

an understanding of what tasks are to be performed, what the priorities of the task are, and how time should be allocated among the tasks

Back 68

role definition

Front 69

6 Steps to Managing the Sales Training Process:

Back 69

1. Assess Sales Training Needs
2. Set Training Objectives
3. Evaluate Training Alternatives
4. Design Sales Training Program
5. Perform Sales Training
6. Conduct Follow-Up and Evaluation

Front 70

5 Typical Sales Training Needs:

Back 70

1. Competitive knowledge
2. Customer knowledge
3. Product knowledge
4. Sales techniques
5. Time and territory management

Front 71

2 Optimal Time Periods to do Sales Training:

Back 71

1. First day of work
2. Sales meetings

Front 72

4 Sales Training Methods:

Back 72

1. Absorption training
2. On-the-job training
3. Role Playing/ Simulations
4. Technology-based

Front 73

4 Measurements of success in Sales Training:

Back 73

1. Behavior
2. Learning
3. OTJ Results
4. Reactions