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Sales Force Management

Sales Force Management

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Sales Force Management

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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

  3. 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

  6. 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)

  7. 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)

  8. 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

  11. 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

  12. Course Overview • Effective Personal Selling • Strategic Issues • Tactical Issues • Industrial Settings • informed buyers • discipline of repeat purchase • often genuine differentiation is possible

  13. Course Overview (continued) • Effective Personal Selling • What is effective personal selling? • Business to business selling and the Buyclass Framework (Case: Lawford Electric)

  14. 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

  15. 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

  16. Course Overview (continued) • Putting it all together (Case: DigitalThink & Group Projects)

  17. Course Requirements • Class Participation 20% • Group Projects 35% • DigitalThink Case • Group Presentation • Mid-term Exam 20% • Final Exam 25%

  18. 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

  21. Policies • Projects are due on or before class • You may challenge a grade-- but only in writing

  22. 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