MKTG 320: Final Exam
78 Cards in this Set
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Aptitude
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native abilities and enduring personal traits relevant to the performance of job activities
• Ex.) mental abilities, personal traits
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Personal Characteristics
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physical traits, family background, education, work and sales experience, lifestyle, and so forth
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Skill Levels
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learned proficiencies at performing job activities
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Role Perceptions
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perceptions of job demands and the expectations of role partners
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Motivation
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desire to expend effort on specific job activities
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Organizational and Environmental Factors
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Sales potential of salesperson's territory, salesperson's autonomy, company's competitive strength, and so forth
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How can Aptitude be affected?
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Recruitment and Selection policies
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How can Personal Characteristics be affected?
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Recruitment and selection policies
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How can Skill Levels be affected?
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Training and Supervision
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How can Role Perceptions be affected?
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Training and supervision ; account management policies
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How can Motivation be affected?
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compensation and reward system
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How can Organizational and Environmental Factors be affected?
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Sales force organization ; territory design ; marketing programs
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Daniel Goleman's Definition of Emotional Intelligence
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"abilities such as being able to motivate oneself and persist in the face of frustrations; to control impulse and delay gratification; to regulate one's moods and keep distress from swamping the ability to think; to empathize and to hope."
• EI explains why some people with high IQ floun…
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MSCEIT's Definition of Emotional Intelligence
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"The ability to process and utilize emotional information."
• Ability based test and is superior to other EI instruments that are self-reported and tend to lack discriminant validity
• Does not measure one's emotions or emotional traits, but rather one's ability to process and utilize…
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Four Dimensions of Emotional Intelligence
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1. Perceiving Emotions
2. Facilitating Thought
3. Understanding Emotions
4. Managing Emotions
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Perceiving Emotions
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People communicate and send emotional messages. Emotions contain valuable information about relationships and the world. This ability starts with being aware of these clues, and then, accurately identifying what these clues mean
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Facilitating Thought (Using Emotions)
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How we feel influences how we think. If you are feeling sad, you may view the world one way, while if you feel happy, you interpret the same events differently.
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Understanding Emotions
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emotions contain information, and our ability to understand this information and think about it plays an important role in our day to day life
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Managing Emotions
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If emotions contain information, then ignoring this information means that we can end up making a poor decision. At times, we need to stay open to our feelings, learn from these feelings, and use this information to make decisions and to take appropriate action. At times, it may be best t…
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Definition of Motivation
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Initiate action on specific task; expend a certain amount of effort on that task; persist in that effort
Motivation is the amount of effort a salesperson desires to expend on each activity or task associated with the job.
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Three Dimensions of Motivation
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1. Direction
2. Intensity
3. Persistence
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Direction
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Where the efforts will be spent among the various job activities
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Intensity
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the amount of mental and physical effort put forth by the salesperson
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Persistence
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the choice to expend effort over a period of time
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Determinants of Motivation
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Expectancies, Instrumentalities, Valence for Rewards
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Expectancies
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the salesperson's estimate of the probability that extra effort will lead to higher sales performance
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Instrumentalities
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the salesperson's estimate of the probability that higher sales performance will be rewarded
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Valence for Rewards
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the perceived attractiveness or intrinsic value the rewards the salesperson might receive
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Four Stages of the Career Stage
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1. Exploratory Stage
2. Establishment Stage
3. Maintenance Stage
4. Disengagement Stage
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Exploratory Stage
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• Early to mid-20s
• Finding the appropriate career
• Unsure about whether they want to be salespeople
• Lack adequate knowledge and skills
• Consequently, they have low involvement and job satisfaction
• Require reassurance, coaching, and feedback
• Mangers must provide them with r…
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Establishment Stage
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• Late 20s early 30s
• Commit themselves to get ahead
• Major concern is improving skills and performance
• Valence for promotion is very high because of their strong desire to be successful
• High performers are likely to change jobs if financial and especially higher order rewards a…
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Maintenance Stage
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• Want to retain present position, status, and performance level
• Valence for rewards that reflect high status, such as formal recognition and respect from peers, is high
• Has a higher valence for pay and financial rewards because of having kids and college commitments
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Disengagement Stage
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• Happens often in the late 50s buy some it occurs earlier in their 40s and early 50s
• Just want to do enough to get by
• Very little interest in higher order rewards
• Not much enthused by financial incentives
• Those who are frustrated in their establishment stage or their 40s or e…
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Sales Compensation
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Main purpose is to align the goals of the salesperson with the goals of the firm
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Main Components of Sales Compensation
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Salary, Commission, Bonus
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Salary
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• Motivate effort on non-selling activities
• Adjust for differences in territory potential
• Reward experience and competence
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Commissions
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• Motivate a high level of selling effort
• Encourage sales success
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Bonuses
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• Direct effort toward strategic objectives
• Provide an additional rewards for top performers
• Encourage sales success
• Often an over-target incentive to encourage additional effort once quota is exceeded
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Secondary Components of Sales Compensation
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Sales Contests & Benefits
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Sales Contests
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• Stimulate additional effort targerted at specific short-term objectives
• Offer short term incentive to motivate sales personnel to accomplish sales objectives
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Benefits
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• Satisfy salespeople's security needs
• Match competitive offers
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Quotas
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• Typically monthly or quarterly sales targets
• Commissions and bonuses are often tied to quotas
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Straight Salary
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Used For: new sales reps, new sales territories, many required non-selling activities, long-sales horizons, few large accounts, want better customer service and post-sales support
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Advantages/Disadvantages of Straight Salary
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Advantages: Maximum security, control over reps, easy to administer, predictable expenses
Disadvantages: No incentive, requires close supervision, selling expenses remain same during sales declines
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Straight Commission
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Used For: Highly aggressive selling, minimal required non-selling tasks, when company can't closely control sales force, a focus on new account sales
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Advantages/Disadvantages of Straight Commission
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Advantages: Maximum incentive, managers can encourage sales of certain items, selling expenses relate directly to selling resources, fixed costs lower
Disadvantages: Little security, little control over reps, reps may provide inadequate service to smaller accounts, selling costs less p…
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Combination of Straight Salary and Straight Commission
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Used for: Similar sales potential across territories, when company wants to offer incentive but maintain some control
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Advantages/Disadvantages of Combination of Straight Salary and Straight Commission
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Advantages: Some security, some incentive, selling expenses vary with revenue, manager has some control over non-selling activities
Disadvantages: Selling expenses are less predictable, may be difficult to administer
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Bonus
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Used For: Encouraging above-normal performance of specific activities
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Advantages/Disadvantages of Bonus
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Advantages: added incentives, can be used for specific activities-flexible
Disadvantages: added cost, may be seen as inequitable if not administered properly
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DISC
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Director, Influencer, Steadiness, Conscientious/Cautious
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Director
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Direct, decisive, pushy, bold, harsh, innovative, problem solver, results oriented, competitive, confident, strong tone of voice
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Influencer
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Dramatic, animated, manipulative, friendly, enthusiastic, interested in people, persuasive, trusting, charming, convincing, inspiring, sociable, fear of being rejected or left out
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Steadiness
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Dependable, agreeable, warm, respectful, loyal, good listener, supportive, status quo, team player, stable, relaxed, shy, patient, doesn't like change
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Conscientious/Cautious
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Contemplative, persistent, perfectionist, picky, critical, accurate, analytical, diplomatic, quality orientated, high standards, hates conflict, likes to plan ahead, likes to work alone
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High Assertiveness (Direct)
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• Tell, talk
• Express opinion
• Emphatic statements
• Fast, forceful
• Firm handshake
• Eye contact
• Gestures
• Impatience
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Low Assertiveness (Indirect)
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• Listens
• Reserves Opinion
• Qualified Statements
• Steady, slower
• Gentle Handshake
• intermittent eye contact
• limited gestures
• patience
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High Responsiveness (Supportive)
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• Open to others
• conversations focus on others needs
• decisions on feelings, experiences
• accepts points of view
• give time to others
• giving
• minimize conflict
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Low Responsiveness (Controlling)
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• Limit involvement
• Focus on task, business, situation
• decisions on facts
• less likely to accept others views
• taking
• expect conflict
• work independently
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Best way to approach a Director person
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Be brief and to the point, answer their "what" questions, stress the result of your ideas, talk more about facts and benefits, speak in terms of goals and objectives, let them be in charge of things they find important
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Best way to approach a Influencer person
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Let them know you are pleased, provide appreciation and encouragement for their ideas, show appreciation to their humor, answer their "who" questions, exercise restraint in budgeting, spending and creating short-term goals
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Best way to approach a Steadiness person
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Be patient, don't push, temper your enthusiasm, let them respond at their own pace, provide sincere appreciation support, don't create conflict, answer their "how" questions, ask for their help, show concern
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Best way to approach a Conscientious/Cautious person
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Be more factual and objective, minimize risks affecting their performance, convincingly provide pros and cons of ideas, be prepared to explain thoroughly, answer their "why" questions, give realistic assurance
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SPIN
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• Situation
• Problem
• Implication
• Need-payoff
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Good Salespeople vs. Less successful salespeople
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• Good salespeople do not close as much.
• Ratio of closed to open-ended questions doesn't seem to matter
• Fewer objections occur
• Too many Situation questions can lead to the buyer feeling bored; SP should already know most of these questions
• Good salespeople find explicit needs…
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Situation Questions
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Gather data about background or current procedures
• "What company currently provides your coffee?"
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Problem Questions
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Specific difficulties, problems, dissatisfaction
• Used to uncover implied needs
• "Do you have any problems with your current office coffee system?"
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Implication Questions
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Follow one or two problem questions designed to help the buyer recognize the scope of ramifications of the problem
• Used to uncover explicit needs
• "How has the problems with your office coffee system affected your staff?"
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Need-payoff Questions
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Ask about the usefulness of solving a current problem
• Used to uncover benefits from the buyers eyes
• "Would it be useful to have a coffee machine that brewed a cup of coffee in 15 seconds instead of 2 minutes?"
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Four Stages in the Sales Call
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• Opening
• Investigating
• Demonstrating Capabilities
• Obtaining Commitment
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When does SPIN occur during the sales call?
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Investigating Stage
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Why is closing over emphasized typically?
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Closing too early can cause the buyer to feel rushed and they may not have all of their questions answered
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How to open a sales call?
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Open the call by greeting buyers name, then yours with your company name, trade business cards, create small talk, establish trust, set agenda, find out needs and value of your solution
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Basic Idea behind SPIN Questions
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• SPIN questions are used to discover the buyer's explicit needs. They are focused on the buyer and not the seller.
• SPIN questions are a persuasive technique that attempts to get the buyer to realize their explicit needs and how your product/service might fulfill them
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Problems with Subjective Performance Measurement
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• Lack of an outcome focus
• Ill-defined personality traits
• Halo effect
• Leniency or harshness
• Central tendency
• Interpersonal bias
• Organizational uses influence
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Take Aways
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Multiple methods of evaluation
• Results versus Behavior (process)
Evaluation metrics should be tied to type of sales job
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360 Degree in Performance Feedback
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The concept of 360-degree performance feedback opens the door to a new era in using the performance appraisal process as an effective tool for salesperson development and improvement. An individual confronts the assessments of those above, beside and below.
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Sources of the Feedback Include
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• External customers
• Internal organization members ("internal" customers)
• Selling team members
• The sales manager
• The salesperson (self-evaluation)
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MKTG 320: Exam 1