Sales Mangement

Final

A sales enablement process provides what benefits for buyers

Makes it easier for buyers to buy

How does Salesforce automation (SFA) systems make life easier for salespeople

Utilizes sales technology to automate various sales processes

What is a common usage of contact management software

System used to generate automatic reminders to the salesperson to complete specific tasks

How does CRM software differ from SFA software

A software that enables more effective communication with customers

Artificial intelligence aids sales and marketing efforts by personalizing information and collecting data for follow-up b

mimicking humans and act on information without human intervention

How do CRM solutions help sales, marketing, and customer service

Marketing personnel can use the information sales reps enter into the CRM system to develop marketing segments and an ideal customer profile.

What is tracked by a CRM system

Customer Interaction

If sales managers want to increase the probability of salespersons adopting technology, they should

get information from salespeople

What are the challenges to accurate sales forecasting include variations

Market potential and sales potential

Customer data integration (CDI) is best described as

The technical process of gathering data and making it practical and available

When a marketing department has access to customer data about current products and services, it enables the department to:

Create campaigns that tap into the preferences and desire of customers

The industry-wide sales expected for a certain product for a certain time period is called

Market Potential

Sales potential refers to the portion of:

The maximum market share the company can reasonably expect to achieve

Many consumers will buy more of a product if its price goes down, and less of a product if its price goes up. This is referred to as

Elasticity

What factors affect demand

Economy, Technology, Social Factors, Law and Regulations, Demographic Trends

A variable that predicts what will happen with the sales of another product is referred to as that product's

Leading indicator

In order to account for the different levels of importance of multiple trends, a company can use

Regression analysis to weight different factors differently

The relationship between a sales forecast and sales force quotas should be

No direct relationship, with forecasts used fro informational purposes

The organization of a company's salesforce is most heavily influenced by

Its strategic goals

The breakdown method and workload method are used to:

Incorporate the firm's strategy and the work salespeople are expected to do

To calculate the total number of sales calls salespeople will need to make over the course of a year, the workload method starts by:

Computing total number of calls to current customers

When does using generalist salespeople make more sense than specialist salespeople?

When it is an entire product line to a group of customers that use the products similarly

What characterizes a geographical sales structure

Depends on physical boundaries to organize the salesforce with customer accounts; interacts with buyers as generalists

According to economic theory, sales managers should continue hiring salespeople

As long as each salesperson can sell more than they cost the company

What is one danger of a product-based sales structure?

Can be confusing for the buyer

A functional sales structure takes the sales process and

Pros: Establish Account, manage inventory and orders, merchandising

Cons: Coordinating multiple specialists, Ensuring smooth transition from account establishment to management

A key account (or national account) is a customer that is:

Large in terms of their sales and profits and that are strategically important for the future of a firm's sale

Key accounts receive greater attention from salespeople because they exemplify the 80/20 rule, which states that

80% of a firm's total business and profits are derived from 20% of its customers

What is the main disadvantage of assigning a regular territory-based salesperson to a key account

Can take a lot of time, leaving less time for other duties like managing the salesforce

An independent sales representative is

Works on a commission basis to sell companies' products and services to customers

What functions can telemarketing salespeople perform?

Inside salesperson to communicate with an established or potential customer to sell products or services

A break-even analysis is a calculation that helps sales managers determine

Number of products you must sell to at least cover your production costs

In general, the more specialized the selling

The fewer salespeople one manager can manage

Information gathered by territory, salesperson, or product about sales by volume, quota, and other measures is referred to as a:

Sales Analysis

A profitability analysis can be useful to managers because it can help them determine if:

There are product lines that are costing the company money to sell

Return on investment (ROI) is a simple calculation that allows managers to compare:

The percent they're making on the product to the percent they're paying on the investment

Return on assets managed (ROAM) is a ratio that assesses:

How well different managers are managing the firm's assets

A pipeline analysis compares:

Total open opportunities, total closed opportunities

Handheld digital devices can be used by sales reps in the field to send information

true

Firms segment input measures into different groups because

Different activities have different types of results

Output measures are

the actual results of a salespersons efforts

To encourage salespeople to reduce costs and increase gross sales margins, companies are beginning to:

Figure sales margins directly into the calculation of sales rep's quotas and bonuses

Sales volume per call, order per call, and average cost per sales call are all ratios that can be used to determine if a sales rep:

Performance appraisals by combining various input and output data

The four-factor model is a simple way to get a snapshot of

Two important input activities and how they interact with 2 important output activities.

Qualitative performance measures are measures:

job knowledge, problem-solving skills, creativity, attitude and morale, internal and external relationships, initiative and judgement, communication with management, timeliness in completing reports

Using a behaviorally anchored rating scale (BARS) is a way to quantify qualitative performance measures. What are the advantages and disadvantages to using BARS

A set of scaled statements that describe the level of performance a salesperson received in tern of various job behaviors

When salespeople do not hit their sales quotas, management should

Work more closely with the salesperson to find out what activities or practices the person needs to engage in to be successful

What characterizes careers in sales?

Occupational lookout, advancement opportunities, job variety, independence

What does Customer relationship management involve?

the combination of practices, strategies and technologies that companies use to manage and analyze customer interactions and data throughout the customer lifecycle.

Understand SMART goals

Specific, Measurable, Achievable, Relevant, and Time-Bound

What is transactional selling?

focuses on one-time sales, with the ultimate goal of making the maximum amount of sales from the maximum number of customers.

What is consultative selling?

a sales approach where reps act more like advisers than salespeople

What would a good opening conversation with a prospect look like?

Highlight what's going on in their field or provide some other relevant details that tickle their attention right away

what are the three phases of the needs-identification process

pre-assessment, assessment, post assessment

What is the next step in the sales process after a buyer's objections have been removed?

closing

Why are performance measures like quotas important?

to set goals, track progress and measure success.

What has been the result of using multiple sales channels?

How does the selling process differ from the sales function?

Advantages and disadvantages of outsourcing salespeople.

-advantages: financial benefits, timesaving, flexibility

-disadvantages: service delivery, confidentiality, lack of flexibility, management difficulties.

What characterizes inside salespeople?

the sale of products or services by personnel who reach customers through phone, email, or the internet.

What characterizes field reps?

provides technical support, product installation, and customer service on behalf of a company.

How would you describe the B2B process?

is a transaction or business conducted between one business and another, such as a wholesaler and retailer

What are the differences between managing and leading?

Management consists of controlling a group or a set of entities to accomplish a goal. Leadership refers to an individual's ability to influence, motivate, and enable others to contribute toward organizational success

Why do businesses need more leadership now as opposed to later?

Because it helps others understand the long term strategies and goals of a business

What are leadership behaviors?

actions that leaders incorporate into their management style to effectively lead their teams

A research tool called a meta-analysis reviewed many leadership studies and found...

the relationship between leadership and followers motivation

A leader who is concerned primarily with results and shows little concern for people is at which part of the Leadership Grid?

Task management

The Situational Leadership approach is based on what concept?

the relationship between leaders and followers

What is the servant leadership model?

based on the idea that leaders prioritize serving the greater good.

Ethical Leadership approach is based on...

trust and respect

What is the cost to the firm of a poor hiring decision?

at least 30 percent of the individual's first-year expected earnings

The turnover rate for salespeople is

35%

Why is the turnover rate important?

to measure both the effectiveness of the human resources management system and the overall management of an organization or program.

What is the purpose of a job analysis?

the process of studying a job to determine which activities and responsibilities it includes

What goes in a job description?

job title, job purpose, job duties and responsibilities, required qualifications, preferred qualifications, and working conditions.

Why do external hiring?

can help increase diversity in an organization.

Why do internal hiring?

it allows a professional who is already familiar with the company to fill a different role

How is networking used in recruiting and hiring?

it enables you to get your message out about your company, culture and opportunities beyond the posting process.

advantages of using an external recruiter

allow you to find a candidate who has more relevant experience and training for the job you need to fill

disadvantages of using an external recruiter

higher risk, larger cost, time consuming

What is a structured interview?

a quantitative research method commonly employed in survey research

Why is it important for sales managers to check references on job applicants?

to validate the traits and performance abilities of a sales candidate.

What are the down sides of rushing to hire?

not properly introducing the company to the new candidate, hiring less qualified candidates, not screening for soft skills

The first step in producing valuable sales training programs is to identify

assessing sales training needs

What are the sources of information to use in identifying training needs?

direct observation, interviews, focus groups

After you have identified who needs training, what's next?

identifying their baseline knowledge before goal setting

What are the strengths and weaknesses of instructor led training?

-strengths: allows for open dialogue, builds a learning network, engaging

-weaknesses: costly, takes time away from work, fewer learners at one time.

What are the four types of feedback measure used to assess the success of a training program?

Reaction, Learning, Behavior, Results

The primary role of a supervisor is to:

communicate needs, oversee employees, guide and support employees.

A first-line manager will be involved with all of the following

Overseeing a department of employees

Know the types of power managers have.

Legitimate power, reward power, coercive power, expert power, and referent power

hen asked to identify characteristics of an effective sales manager, salespeople identify

Gravitas, empathy, ability to forecast, active listening skills, emotional intelligence, ability to change and grow, adaptability

What are the various leadership styles

Democratic leadership

Autocratic leadership

Laissez faire leadership

Strategic leadership

Transformational leadership