MKT340 Final

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MKT340 Final
2012-12-09 16:38:23
Mkt340 Final

Mkt340 Final
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  1. Why Train?
    • 1. Increased Productivity- There is a direct corelation between trained sales force and a productive one
    • 2. Reduce Turnover
    • 3. Improved Customer relations- To create the gap between what you can teach and what they can find on their own- customers view realtionship better if you add value
    • 4. Moral- Greater Moral leads to greater confidence and therefore greater production
  2. Topics in Training
    Product Knowledge: if you like what you are doing this should be easy- will be provided

    Selling skills: this class

    Teamwork: to find partners and create teams

    Customer and Market information: should know what your industry looks like at least once a year: BE PROACTIVE at this and DON'T WAIT TO BE TAUGHT
  3. Company Orientation
    • Less likely to leave if they feel they are part of a family
  4. Where do people Train?
    • Centralized: Detatched facility that does nothing but train
    • Advantages: Best teachers
    • Disadvantages: No local or regional focus

    • Decentralized: Producing office that also trains
    • Advantages: Free
    • Disadvantages: Typically not the best teachers (stuck with whats in your city)

    • Field or on the job:
    • Advnatages: Free, real life
    • Disadvantages: Trainer must be by the book
    • May be too specific to actually learn something
  5. Methods of training
    • Role Playing- learn allot from being watched (simulated sale)
    • Games- software that simulates a sale
    • DVDs Recordings ect.
  6. Who trains?
    • 1. Staff Specialisits- People who do nothing but train
    • Advantage: Not distracted by anything else
    • Disadvantage: They can't do it themselves

    • 2. Outside Specialists: Motivational speakers (Not in industry)
    • Advice:Some people are good writers and some are speakers. You are attached to one- the one that is speaking to you
    • Advantage: Professional motivators
    • Disadvantage: They don't know you or your industry

    • 3. Line Executives: Managers who can also train
    • Advantages: Multiple points of view
    • Disadvantages: Conflicting points of view
  7. 5 things that make a good leader
    1. Empowerment: Transfer decision making authority to someone else (Ritz)

    2. Intuition: Know what the right thing is but can't explain why- good leaders seem to always know the right direction

    3. Self-understanding: put yourself in the shoes of someone else

    4. Vision- Actions lead to reactions- ability to see the whole board

    5. Value congruence- Take people from diferent backgrounds and unite them behind a comon goal
  8. Power
    • 1. Ability to influence others
    • 2. Other person has to yield the power to you
  9. 5 types of power
    • Legitimate- Power we yield to someone because of thier title
    • Reward- Power we yield to someone because of their ability to help us
    • Coercive- Power we yield to someone because of their abiliy to punish us
    • Referent- Because we know them or like them
    • Expertise- Power- Power we yield to someone because of their ability to specialize
  10. 8 findings regarding a sales contest
    • 1. Those who normally excel will do better in contests
    • 2. Those who have less income tend to do better in contests
    • 3. Never try to sell unfavorable inventory
    • 4. Limit the number of objectives-
    • 5. Never use quotas- negative conotation
    • 6. Noval rather than stright forward theme
    • 7. Better performance occurs in contests of shorter length
    • 8. Pre and post contest slumps occur more often iwht regularly scheduled contests
  11. Performance reviews are used for
    • 1. Determining who to give Raises
    • 2. Determining who to fire
    • 3. Determining who gets retained
    • 4. Determining who to promote
    • 5. Determining territory adjustments
  12. Set Goals (Reasons)
    • 1. Increase productivity
    • 2. Not waste time
  13. Characteristics of a good goal
    • 1. Specific
    • 2. Measureable
    • 3. Reachable
    • 4. Makes you stretch
    • 5 Time base
    • 6. Written down
    • 7. Accessible (NOT PUT IN A DROOR)
  14. Performance Goal =
    Sales revenue
  15. Types of goals
    • Performance- can only be one measurement ie. sales
    • Advantage: Know exactly where you stand
    • Disadvantage: Doesn't take in work ethic, activity etc.

    • Activity- total number of appointments
    • Advantage: only thing you control
    • Disadvantage: Does not take into account performance

    • Conversion
    • Advantage: Tracks your efficiency
    • Disadvantage: Could discourage activity
  16. High Activity and conversion
    put them together- natural partnership- FINDERS AND GRINDERS
  17. Allocating resources you should account for?
  18. RPA:
    • 1. Face to face in front of client
    • 2. Telephoning for appointments
    • 3. Actively networking
  19. Green time
    8am-6:30 M-F
  20. Red Time
    Non RPA
  21. 80/20/80 rule
    80% of your time with 20% of your clients that give you 80% of your business
  22. Implementation 4 tips
    • Implementation day- take one day a week to do nothing but set up the rest of your week
    • Be geographically smart
    • Take real vacations- 1 week at least
    • Hire an assistant for non RPA time when economically feasable
  23. Evaluation
    • 1. Daily: did I pick up any bad habits today that need to be fixed
    • 2. Weekly evaluation-
    •  1. Total number of apointments
    •  2. Total number of referrals
    •  3. Hot prospect list (within 30 days of being in a strategy meeting)

    • 3. Quarterly evaluation
    •    1. Validate the income exersise (over 13 wk. period of time all random fluctuations shoudl balance out
    •    2. Prevent paradigm shifting- rolling 12 months or new goal otherwise they will drift off
  24. Build internal partnerships with:
    • 1. Manufacturing:
    •    1. Learn about how product is made
    •    2. New versions coming out
    •    3. Fast way to change product

    • 2. Administration
    •   1. Allows people aroind them to do what they did best
    •   2. Good one will advocate you

    • 3. Shipping
    •    1. When you have scarce resources, the relationship becomes the tie breaker
    •    Good relationship- amiable
    •    Bad relationship- reasons why they can't help you

    • 4. Customer Service
    •    1. If you have any consciense whatsoever- they take the hit for you all the time
    •    2. If there is a complaione where it goes? Up!

    • 5. Marketing
    •    1. Putting in ads for you (Limited budget- relationship is tie breaker)

    • 6. Sales
    •    1. Auditioning for prospects (get in on sales for part comission)
    •    2. Get to know newer people around you
  25. Value of existing customers
    Most income- existing clients purchasing more products

    If you only retain 2-3% of your customers, it is the equivalent of a 10% cost reduction

    When someone buys from you again there is  a 65% recuction in the sales cycle
  26. Exploration phase (do 2 things)
    • Set the right expectations (underpromise and overdeliver)
    • Handle complaints
  27. Handling complaints
    • 1. Encourage their stories (hear complaint)
    • 2. Determine the facts of what happened
    • 3. Offer them a solution
    • 4. Follow up
  28. Expansion Phase
    • 1. Be present at buying time
    •     Look at anniversary date of when you first sold them
    • 2. Help service the client- little things matter
    • 3. Provide expertise and assistance:
    •     r u Strengthening relationship? If they ask for your help or opinion on something not related to businesss you have their trust
  29. Upgrading, Full-Line Selling, Cross selling
    • Upgrading: a newer version of the original product
    • Full-line: Accessory to the original product
    • Cross-selling: Brand new product from the same vendor
  30. Causes of dissolution (end of relationship)
    • 1. Limited personal relationships: Things formerly in person are now texting/email
    • 2. Faliing to monitor competitors
    • 3. Failing to monitor industry
    • 4. Complacency: Satisfaction- inevitably be passed up by someone who is not complcent
  31. Ways to compensate
    • Straight salary-
    • Great for products of an ethical nature
    • Advantage: Security
    • Disadvantage: no incentive

    • Straight comission- Meritocracy (corelation btw what you sell and what you make)
    • Advantage: unlimited motivation
    • Disadvantage: No security- Emotional rollercoaster

    • Combination plan:
    • Advantage:some security and some motivation- no high fixed costs
    • Disadvantage: Only helps people in the middle area

    • Draw
    • Interest free loan against future comissions
    • Forgiveness provision: dictates what happens if there is a balance
    • Advantage: Legally discriminate without being locked into a salary system
    • Disadvantage: Doesn't promote loyalty- working from behind
  32. Why is forecasting improtant?
    • 1. Expense controls
    • 2. Budgeting
    • 3. How many sales people you hire
    • 4. Training Expense
  33. Methods
    • Sales force composite: Numbers come from salesppl
    •    1. Self assesment
    •    2. Past performance
    •    3. Reasonable prediction
    • Advantage of this is that salespeople will work harder to make the numbers because it came from them
    • Disadvantage: Not accurate

    • Jury of executive opinion: by mgr. based on some formula
    • Advantage: Easy to administer
    • Disadvantage: If they don't make #s they blame mgr.

    • Leading indicators:
    •    1. An anomaly or a one time event that can effect the forecast ie new drug approved
  34. Ways to organize salesforce
    • Geographically
    • Advatage: Reduce travel expense
    • Really get to know customers
    • Disadvantages: Can't use refferals outside of territory
    • Some territories more attractive than others

    • Product:
    • Advantage: increase in customer service
    • Disadvantage: if you are perceived to be an expert in something you are perceived to be weaker in something else

    • Customer: i.e. wal-mart
    • Advantage: very easyto get a strategic partner
    • Disadvantage: if you lose that customer it is easy to become obsolete
  35. Coaching
    • Mastering the art of verbal feedback
    •    1. specific and continuous- tell them good or bad!
    •    2. Recognizing people when they achieve
    •    3. Reinforce positive behacior
    • Role Modeling
    •    1. Lead by example
    •    2. Best practices- create a gap btw what you teach and how you behave
    • Trust building
    •    1. Open communication
    •    2. Relevent selling experiences
  36. Sources for recruiting
    • Classified Ads
    •    Blind Ad
    •    Open Ad
    • Advantage: you get a ton of names

    • Present Employees:
    • Advantage: free,  filtered, employee might get a joint work partner
    • Disadvantage: role conflict may report to referal rather than mgr. once hired
    • could lose referer from promotion

    • Networking
    • Advantage: free, candidate is intelligent and amitious
    • Disadvantage: Stiff competition

    • Employment agencies:
    • Advantage: extremely filtired
    • Disadv: Expensive

    • Universities:
    • Advantage: No bad Habits, and well educated (less mistakes)
    • Disadvantage: No training- inexperienced

    • Customers:
    • Advantage: Reflection of how strong your relationship is
    • Disadv: why didn't they hire this person?

    • Supplier:
    • Advantage: free, highly filtered
    • Disadv: why didin't they hire this person?

    • Competitors:
    • Advantage: Diferent target markets
    • Disadvantage: bad habbits- retraining
  37. Mistakes in selection (Recruiting)
    Generalized Success Model- you can't find the perfect salesperson who is exactly average so stop looking for them

    Looking at too many criteria- you end up picking on the top 2 anyways

    Using yourself as an example- Do not hire people like you- personality duplication

    Not researchin why people have failed- Get trained w you and ditch- no bad student only bad teachers
  38. Team building
    • Designing Teams
    • Supportive environment
    • Managing team dynamics
  39. Designing teams
    • Fair reward system- everyone can compete for recognition regardless of experience
    • Coordination of goals around co's mission statement
  40. Supportive environment (Team building)
    You hire, train, and integrate everyone around a consistent  corporate culture
  41. Managing Team dynamics
    • You need to understand the strengths and weaknesses of everyone on your team based on
    •   1. Personality type
    •   2. How they interperet information
    •   3. If they are internally or externally motivated
  42. 4-5 stages of time management
    • Setting Goals
    • Allocating resources
    • Implimentation
    • Evaluation
    • Building Iternal partnerships