Exam 1 ReviewChapter 1- The Sales EnvironmentChapter 2- Sales Jobs, Selling & Buying ProcessesChapter 3- CRM, Market- Oriented Cultures & Strategic factors that affect Sales Force ActivitiesChapter 4- Sales Force StructureExam 1 Review Chapter 1- The Sales Environment Key Trends in Sales1. Building long term relationships with customers a. Customers expect more from sales people so this quality relationship is rising2. Creating nimble organizational structuresa. Being more responsive & flexibleb. Colocation: supplier/ sales moving closer to customers (Bentonville- P&G)3. Gaining greater organizational commitment from salespeoplea. Individual identifying with organizations goals and valuesb. Committed employees tend to sell more 4. Shifting sales mgmt. style, from commanding to coachinga. Communicating rather than controlling b. Empathy, cheerleading, confidence5. Leveraging available technologya. Constant contact, CRM systems6. Refining salesperson performance evaluation a. Includes a wider range: subjective (mgmt. potential), objective (just numbers), input, output & non-selling activities 7. Competing globallya. Differences around the globe, but much growth happens internationallyb. EBay & Amazon competing locally & globally 8. Increasing focus on ethicsa. Ethical disasters/scandals - Enron, Halliburtonb. Salespeople misleading buyers (2)c. Managers need to be fair to all sales people (1)Chapter 2- Sales Jobs, Selling & Buying ProcessesObjectives 1-4: About the Sales Job- Many stereotypes of sales people (hard-sell techniques)- Sales jobs can be highly rewarding: o Satisfaction: complexity & challengeo Unhappiness: Policies and actions of the sales manager or firm 1. Autonomy- freedom of action, chance to move up2. Multi-faced and challenging activities that are part of the sales job (intrinsic)a. High in variety3. Financial Rewards (extrinsic)4. Favorable Working Conditionsa. Small amount of travel, can work from home 5. Opportunity for Advancement - Key Success factors in Selling:10. Personal Planning & Time Mgmt skills9. Closing Skills8. Demonstrated Ability to Overcome Objections7. Proficiency in Interacting with people at All Levels of a Customers Organization 6. Verbal Communication Skills 5. Well Organized 4. Tenacity- sticking with a task (Palm Tree Effect- always swings back and forth, but never decides) 3. Ability to Adapt Sales Style from Situation to Situation 2. Follow- Up Skills 1. Listening Skills- B2C & B2B Sales jobs - Many different types of selling with different tasks, skills, compensation, etc. - Similarities of C&Bo Product knowledgeo Communication skillso Manager must recruit wisely & inform sales people with objectives - B2Bo Expensive & complexo Buyer decision-making processes involve more people o Different industries:1. Trade Servicer- promotion or in-store assistance 2. Missionary Selling- persuade customers to buy (pharm)3. Technical Seller- tech & engineering info 4. New Business Seller- hunter- farmer Objectives 5-8: Selling/ Buying Processes - 6 stage selling process:1. Prospecting for Customers2. Opening the Relationship3. Qualifying the prospect- is the customer worthwhile?4. Presenting the Sales Message5. Closing the Salei. What drives customer loyalty? Customer Satisfaction6. Servicing the Account - Buying Process- Buying Center: group of people that make buying decision o 3-12 people, top management, purchasing manager, specialists- Buying Center Roles:o Initiators: see that there is a problem o Users: the ones that actually work with the producto Influencers: technical experts providing information o Gatekeepers: control who is hearing this infoo Buyers: negotiate & sign contractso Deciders: final authority, higher up - Buy Classes:1. New Buy – first time buyer, involves a lot of risk on buyer parti. Many people involved 2. Straight Rebuy- routine ordersi. One person involved3. Modified rebuy- mostly the same, but changes made if necessary i. Two- three people involved - Selling center: team or experts of different functions in the selling firm (R&D, operations, finance) to address buying centers various concerns- Team Selling brings the problem of who is responsible of failure or success- Organizational Buying Decision Stages1. Anticipation or recognition of a problem or need a. Demand for industrial products is driven by expected demand for consumer products or services 7. Performance evaluation and feedback i. Product and service are both evaluatedChapter 3- CRM, Market- Oriented Cultures & Strategic factors that affect Sales Force Activities - CRM:o Customer- centric culture or guiding business philosophy aimed at optimizing customer interactionso Integrated technological systems aimed at optimizing customer interactions o * Technology has changed, focus on customers hasn’t - Value = Benefic/ Price - Goals of CRM: 1. Retention- keep the customers2. Acquisition- get the right customers3. Profitability- offer right products at the right time - CRM Process Cycle:1. Knowledge Discovery- analysis of customer data2. Market Planning- marketing mix 3. Customer Interaction – putting plan into action 4. Analysis of Refinement- learning and adjust based on customers response to improve- Sales people don’t like new CRM software and technology - Marketing Concept: the key to business success is to identify and satisfy customer needs- Marketing Orientation: the set of beliefs that puts the customers interests first - Sales People Key roles:1. Identify customer needs2. Represent customer to various areas within sale3. Gather market information - Sales manager must build INTERDEPARTMENTAL relationships, they need to get along with every department- Sales Manager Key Roles:a. Carry out voice of customerb. Represent the sales forcec. Carry all market intelligence - Strategy: choosing what not to do & make tradeoffs - Corporate Strategy: (1) what business to be in? (2) how should the corp office manage and allocate resources to the array of business units - Business Strategy: achieving and maintaining comp advantage (win the market place)- Marketing Strategy: business expects to achieve marketing objectives in a target market - Promotion & Personal Selling - Inform, Persuade, Remind o If these are seen as independent tools they effort will be uncoordinated- Integrated Marketing Communications (IMC): everything is coordinated to have a consistent message - Personal selling is most persuasive- Personal