Sales Management - D099

relationship selling

sales technique that focuses on the interaction between the buyer and the salesperson rather than the price or details of the product

value creation

the performance of actions that increase the worth of goods, services, or even a business

sales process

incorporates actually selling the company's products or service to its customers

personal selling

a type of selling that uses person-to-person interaction to sell products and services

customer loyalty

having a positive attitude toward a product or brand, which includes supportive behavior from the customer

brand trust

the willingness of the average consumer to rely on the ability of the brand to perform its stated function

conversion rates

the percentage of prospective customers who take a specific action you want

sales forecast

the process of estimating future sales

operational budget

a plan for expenditures required to maintain the functioning of a business venture or public organization

product-market fit

degree to which a product satisfies a strong market demand

corporate structure

an organization's different departments or business units within a company to achieve its overall mission and goals

functional structure

an organization structure that groups employees according to a specialized or similar set of roles or tasks

modular structure

divides the business into small, tightly knit SBUs, which focus on specific elements of the organizational process

strategic business unit

a profit center that focuses on product offering and market segment

competitive advantage

a condition or circumstance that puts a company in a favorable or superior business position

sustainable competitive advantage

company assets, attributes, or abilities that are difficult to duplicate or exceed and provide a superior or favorable long-term position over competitors

customer relationship management (CRM)

processes implemented by a company to handle its contact with customers with the goal of creating a unified customer experience to maximize retention

business intelligence (BI)

the use of data in an enterprise to facilitate decision-making. It encompasses understanding the actual operation of the company, as well as the anticipation of future events, with the aim of providing knowledge to support business decisions

big data analytics

large, complex data sets that require non-traditional data processing software to predict trends and forecasts

organizational ethics

the principles and standards by which businesses operate and it is how an organization responds to an internal or external stimulus

marketing concept

identifying customer needs and then producing the goods or services that will satisfy those needs while making a profit for the organization

"right" principle

getting the right goods or services to the right people at the right place, time, and price, using the right promotional techniques

promotion

the attempt by marketers to inform, persuade, or remind consumers and industrial users to engage in the exchange process

promotional mix

the combination of advertising, personal selling, sales promotion, and public relations used to promote a product

integrated marketing communications (IMC)

the careful coordination of all promotional activities to produce a consistent, unified message that is customer focused

customer journey

a framework that acknowledges a buyer's progression through a research and decision process ultimately culminating in a purchase

AIDA

attention, interest, desire, action

transactional selling

sales strategy that involves focusing on achieving quick sales without a significant attempt to form a long-term customer relationship

adaptive selling

using social styles to customize a sales approach to the specific customer

social style matrix

a model that categorizes people according to personality traits and how they interact with others

analyticals

want to know "how"

drivers

wants to know "what"

amiables

want to know "why"

expressives

want to know "who"

law of psychological reciprocity

people tend to treat us the same way we treat them

consultative selling

sales approach where the seller becomes a trusted advisor to the customer and builds a relationship to truly understand his or her needs

value exchange

the quantified worth of one good or service expressed in terms of worth of another

customer lifetime value (CLV)

a prediction of the net profit attributed to the entire future relationship with a customer

return on customer investment

a metric that measures how much value a business can create per customer

value

the measure of the benefit gained from a product or service relative to the full cost of the item

value proposition

an innovation, service, or feature intended to make a company or product attractive to customers

return on investment (ROI)

a performance measure used to evaluate the efficiency of an investment or compare the efficiency of a number of different investments

CLV =

dollar value of purchases x gross profit% x number of purchases

ROI =

net profit / investment x 100

sales funnel

the buying process that companies lead customers through when purchasing products

accounts

current business clients' records of transactions

sales management

a business discipline which is focused on the practical application of sales techniques and the management of a firm's sales operations

sales channels

a way of bringing products or services to market so they can be purchased by consumers

distribution channels

a chain of businesses or intermediaries through which a good or services passes until it reaches the final buyer or end consumer

intermediaries

people or businesses that put buyers and sellers together without taking ownership of the product, service, or property

order takers

salespeople with responsibility for handling transactions initiated by the customer

order getters

salespeople who persuade customers to make a direct purchase

missionary salespeople

a salesperson who provides info to an individual who will influence the purchase decision

trade salespeople

a salesperson who calls on retailers and helps them display, advertise, and sell products to consumers

prospectors

a salesperson whose primary function is to find prospects, or potential customers

technical salespeople

sales people who are experts in a specific product or service area. They promote and sell the product by demonstrating how it works along with the benefits it can offer potential customers

inside salespeople

people who routinely work inside the business taking orders and handling transactions

outside salespeople

sales personnel who go out into the field to meet with customers

account management

maintaining a long-term relationship with customers who purchased from the firm in the past

account-based marketing (ABM)

concentrates sales and marketing resources on a clearly defined set of target accounts within a market and employs personalized campaigns designed to resonate with each account

key account management (KAM)

developing and maintaining long-term, sustainable and mutually beneficial relationships with key accounts

inactive accounts

clients who have not made a purchase for a specified period of time

passive accounts

bring in revenue without active sales engagements

active accounts

have consistent transactions and engagement with the business

80/20 Rule (Pareto Principle)

suggests that 20% of your activities will account for 80% of your results

business development

activities to develop and implement growth opportunities within organizations

sales quota

the sales goal or figure set for a product line, company division, or sales representative

power skills

personal attributes that enable someone to interact effectively and harmoniously with other people

hard skills

teachable abilities or skill sets that are easy to quantify. Typically learned in the classroom, through books or other training materials, or on the job

strategic partnership

a partnership in which the buyer and seller commit resources to generate growth for both parties

skills for managing sales people

coaching, performance management, and leadership

steps in the sales process

1. Prospecting and qualifying

2. Approach

3. Presentation and demonstration

4. Handling objections

5. Closing

6. Follow-up

TOFU

the top of the sales/buyer journey funnel (leads/attention)

MOFU

middle of sales funnel (suspects/interest and prospects/desire)

BOFU

bottom of sales funnel (customer/action)

buying centers

a group of people within an organization who make business purchasing decisions

selling centers

functional representation that supports a sales person to create a team-selling approach

economic buyer

the individual decision maker or group within the customer organization who controls and budget and writes the checks for new product purchases

infrastructure buyer

someone who makes sure that purchasing rules defined in corporate governance procedures are followed

user buyer

someone who influences the buying decisions as the person who will actually use the solution after the purchase decision is made

initiators

individuals who suggest purchasing a product or service for a business

users

individuals within an organization who actually use the product

influencers

individuals who have expertise or experience that can help improve the buying decision

gatekeepers

individuals who will decide if and when one gets access to members of the buying center

decision makers

the person who makes the final purchasing decision

stages of B2B buying process

1. Recognize the need

2. Define the need

3. Search for suppliers

4. Bid analysis

5. Supplier selection

6. Order placement

7. Performance review

request for proposals (RFP)

an invitation to submit a bid to supply a good or service

3 different B2B customers

producers, resellers, and organizations

producers

a company that purchases parts, products, or ingredients to produce other goods and services to sell to other companies or consumers

resellers

a company that buys finished goods to sell, lease, or rent to other companies or consumers

organizations

a government agency or nonprofit group that purchases products or services to serve or sell to its constituents

value-added resellers (VARs)

a reseller that adds features or services to an existing product and sells it

business-to-government market (B2G)

when companies sell to local, state, or federal governments

3 buying types

straight rebuy, new task purchase, and modified rebuy

straight rebuy

the duplicate purchase of the identical goods in the identical amount under the identical terms from the identical supplier

new task purchase

a business buying situation in which the buyer purchases a product or service for the first time

modified rebuy

a buying situation in which an individual or organization buys good that have been purchased previously but changes elements of the previous order

opinion leaders

influential members of a community, group, or society to whom others turn for advice, opinions, and views

functional relationships

limited, ongoing relationships that develop when a buyer continues to purchase a product from a seller out of habit, as long as its needs are met

affiliative selling relationships

a situation where the buyer needs extensive expertise from the seller to make a decision