FINAL EXAM

Personality Type

1. Analytical ~ “Show me the data”

   1. Is detailed-oriented, logical, and focused on data and accuracy. Prioritizes logic and accuracy over speed or emotions → prefers to make decisions based on careful evaluation

2. Driver ~ “Show me the results”

   1. Is result oriented, competitive, decisive, & focused on efficiency. Prioritizes results over relationships & details → get straight to the value and bottom line (this one uses logic the most)

3. Amiable ~ “Show me you care”

   1. Is relationship-oriented, friendly, and focused on cooperation & harmony. Prioritizes relationships over results & data → care more about how people feel than just outcomes or facts

4. Steady Relator ~ “Will this make me look good?”

   1. Status/image driven, trend-focused, social recognition → influenced by what’s popular or endorsed by celebrities

Interpretation

1. Visual interpreter ~ process info based on images, visuals, & spatial understanding

   1. “I see” | “That looks good” | “Can you show me” | “Im trying to picture it” | “That’s not clear”

   2. How to Talk to them:

      1. Use tools charts, demos, diagrams, presentations

      2. Keep things organized and easy to see

      3. Use their visual language

2. Auditory Interpreter - Process info based on hearing, discussion, & verbal explanation

   1. “Thats sounds good” | “I hear you” | “Can you explain that” | “Lets talk it through” | “That sounds right”

   2. How to talk to them:

      1. Focus on clear explanations

      2. Encourage convos, questions, & dialogue

      3. Use verbal language:

         1. “Let me walk you through” | “Here’s how it sounds” | “Lets talk about it”

3. Kinesthetic Interpreter - Process info based on experience, emotion, & physical interaction

   1. “That feels right” | “I’m not comfortable with that” | “I need to get a feel for it” | “This seems solid” | “I don’t like how that sits with me”

   2. How to talk to them:

      1. Offer hands-on demos, trials, or experience (build trust)

      2. Use feeling/action language:

         1. “Let’s try this out” | “You’ll feel the difference” | “This will help you get comfortable”

Time Management steps

S.A.I.E.

S - Setting Goals

A - Allocating Resources

I - Implementation

E - Evaluation

Setting Goals

Increase proactivity and to not waste time

• Specific

• -Measurable

• Reachable

• Deadline written down

• Seeing it constantly

3 goals in marketing

• Performance:

Pro: easy administrative

Con: leaves out everything else (emotion)

• Activity:

Pro: you can control

Con: Doesn't take into acct

• Conversion:

Pro: tracks your efficiency

Con: discourage your activity

Allocating Resources

• Revenue producing activities (RPA)

  • Face to face in front of client or prospect

  • Telephoning for appts

  • Activity networking

• No Revenue producing activities:

  • Illustrations

  • Driving between appts

  • Personal life

  • Hobbies

• Green time VS. Red time

  • Green time - Revenue producing activities - RPA

  • Red time - Non-Revenue producing activities - Not RPA

• 80/20 Rule

  • You spend 80% of your time with your clients that make up 80% of your business, & 20% of your time with the clients that make up 20% of your business

Implementation:

Typical week:

• One day a week to set up the rest of your week

• Be geographically smart - meet everyone in one area that are closest to each other in that area, the next day meet your clients who are located in another area

• Take real vacations - min. of 1 week & outside the city you like

• As soon as it becomes economically available to you - you need to hire an assistant

Evaluation

• Daily

  • At the end of each day ask yourself - “Did I pick up any bad habits today”

• Weekly

  • Look for three things:

    • Total # of Appt completed

    • Total # of referrals gathered

    • Hot prospect list (what I expect to close in the next 30 day)

• Quarterly

  • Validate income exercises - determine if income is still running

  • Prevent procrastination | Prevent poor/no direction

Build Internal Partnerships - 6 areas in a company you should know someone!!

1. Manufacturing - know when shipment is coming

2. Administrations - Best ones to advocate for you

3. Shipping - They build a strong connection with you and get shipment for you

4. Customer service - 1. fighting your battles, 2. If someone has a complaint, you want to make sure that complaint comes back to you

5. Marketing Dept. - They control venues, social media, and often limited resources

6. Sells people - They bring in referrals, clients, etc. & get in front the newer people

Building Long Term Partnerships

To build your business you have to have have existing clients buy new stuff

1. Find the value of customers

2. Exploration Phase

3. Expansion

4. Causes of Dissolution

Finding the value of customers…

Exploration Phase

1. Generate Repeat Orders through…

   1. Present at buying time (Usually April- Day after taxes) OR (Look at their buying pattern of when they purchase your products)

   2. Help Service - service the account

   3. Provide Expertise & Assistance - When someone comes to you for advice/expertise

2. Upgrading -Newer version of orig. product

3. Full-Line Selling - An accessory to orig. products

4. Cross-Selling - Completely diff. product but from the same sales person

Causes of Dissolution - Reasons of why relationships come into an end

1. Limited Personal Relationships (texting, email, etc.)

2. Failing to Monitor Competitors (read daily)

3. Failing to monitor Industry (Industries always change based on generation)

4. Complacency/Self-satisfaction (If you’re satisfied, you need to hold on for whats to change)

Compensation (How sales person gets paid) → Advantages & Disadvantages:

• Straight salary

  • Adv: Fixed paid

  • Dis: You get paid the same- no change

• Straight commission

  • Adv: The more you sell the more you earn

  • Dis: Emotional Rollercoaster - no security

• Combination - Combo of salary & commission

  • Adv: Some security & some incentive

  • Dis: Only benefits people in the middle area bec salary is smaller and commission is lower

• Draw - Interest fee loan that gets against future commission

  • Adv: Allows you to legally discriminate w/out being locked into a salary system

  • Dis: You always start the same month in depth

Forecasting - Prediction of things to come

1. Budget

2. Expense controls within the budget

3. # of sales people you hire

Forecast methods:

• Sales Force Composite - Forecast comes from the sales people, not the sales manager

  • Adv: Sales people will try harder to make their number bec it comes from them

  • Dis: You still might get unreasonable prediction

• Jury of Executive Opinion - Sales forecast comes from the sales manager

  • Adv: Very easy to administer

  • Dis: If sales people don’t make their numbers, they’ll blame their managers

• Leading Indicators - A one time event that can affect a forecast

Geographic Forecast

Organized by physical territory

• Adv: Save time, reach more people, reduce travel expenses

• Dis: Restricts entrepreneurism

Product Forecast

Organized by product or product type

• Adv: Quick spike in customer service

• Dis: If you are perceived to be an expert in something, you’ll be weaker in something else

Customer Forecast

Organized by customer or customer type - speeding up strategic partnership process

• Adv: Salesperson is not being distracted by other types of clients

• Dis: If you lose that customer, there’s a good chance that person becomes obsolete (not survive in the comp. afterwards)

Competencies (how tasks are acheived)

Coaching - Verbal feedback

• Specific & Continuous: No one should have to guess how you feel abt them

• Recognition: Recognize those who achieve whether they want it or not

• Reinforce: Reinforce positive behavior even if the result is not immediate

Role Modeling

• Lead by Example - with your behavior, remain consistent

• Best Practices - Create a gap between what you’re teaching someone and how you behave

Trust Building

• Open Communication - Tell someone anything w/out fear for repercussions (someone cannot openly communicate = the relationship is damaged)

• Relevant Selling Experience - Stories have to be correlated to what you’re teaching them, Don’t tell stories that luck based bec no one can learn from them

Recruiting Salespeople - Sources:

• Classified Advertising - Physical / online, ton of names but must filter through unqualified people → Blind Ad: Comp. doesn’t identify itself

• Present Employees - Present employee referral → Open Ad: Does identify the name of the Comp. - Adv: Free, Dis: Role conflict

• Networking - High IQ on applicant part, Dis: Applicant is talking to others (competition)

• Employment Agencies - Adv: Professional filters empower to do everything, Dis: Very expensive

• Universities - Adv: Formerly educated/modern, Dis: Perceived lack of experience

• Customers, suppliers, & competitors -

  • Customers: Adv: free, build relationships, see things vertically | Dis: Is there a story Im not hearing? Why am I so lucky?

  • Suppliers: Adv: See things horizontally (exactly how it is), free | Dis: Is there a story Im not hearing? Why am I so lucky?

  • Competitors: Adv: Many industries where you have target markets for who you are hire | Dis: may be getting someone with bad habits

Mistakes in Selecting

• Generalize Success Model → Standard, perfection (no ones perfect)

• Too many Criteria → If you have 10 criteria when you hire, the top 2 are more important than the other 8 combined

• Using your self as an Example → Don’t hire people like yourself - get comfortable in the uncomfort

• Not Researching why people have failed → Before you lore $400k

Competencies - behaviors needed to perform work roles successfully

• Team Building: Designing teams

  • Fair reward system ~ Everyone looking for recognition regardless of experience

  • Coordination Goals ~ Around companies mission statement

• Supportive Environment: H.I.T. (flip the T and I - “HTI”)

  • Hiring

  • Integrating ~ Everyone around a consistent corporate culture

  • Training

• Managing Team Dynamics - Strengths & weaknesses

  • Strengths & Weaknesses ~ …of everyone on my team & treat them differently based on PHI

    • Personality

    • How they interpret info

    • Internally or externally motivated?

Fred Fernandez Video

Facts:

• Selling medical equipment to Dr. Walters

• Dr. Walters Personality - Amiable

Sales Training - Why?

1. Increased Productivity - Direct correction between train sales force & product sales force

2. Reduced Turnover - Costs $400k & reduce the ones that don’t make it

3. Improved Customer Relations - (Very common for people to research) ~ Must create a gap between what you could tell someone VS. what they get on their own

4. Morale - Better the training, the better the confidence = the better the confidence the greater the morale

Sales Training - Topics: PSTCC

• Product knowledge ~ Most popular training

• Selling ~ seen everywhere

• Teamwork ~ encourages to find a partner

• Customer & market info. ~ Stuff like demographics, only train 1-2 a year

• Company Orientation ~ understand the origin & history of comp.

Sales Training - Where? CDF

• Centralized ~ A detached facility that does nothing but training = Adv: No destactions & get the bets trainers | Dis: No local or regional focus

• Decentralized ~ Trained in office where your going to work = Adv: Local or regional focus | Dis: Hit or miss on quality of trainers

• Field ~ On the field or in the job (ex. go to a rep and sit there and watch) = Adv: Cheap & real life feeling | Dis: Trainer has to be by the book, not road trainer

Sales Training - Methods: RGPB

• Role playing

• Games ~ When things get fun, things get disorted

• Podcasts / blueray ~ Sale shops are back, relaxation | listen to something that gets you motivated/excited when selling to people

Sales Training - Who?

• Staff Specialities - Doing nothing but training = Adv: Focused on training | Dis: Not seeing clients anymore & doesn’t know how it’s like

• Outside Specialties - Motivational speakers who are outside of your industry = Adv: Professional motivators | Dis: Doesn’t know your industry (not being able to find a voice that speaks to “us”

• Line Executives - Manager who also train = Adv: Different points of view | Dis: Can get conflicting points of view

Sales Training - Leadership

1. Empowerment ~ Ability to transfer authority to someone else (more trust then delegation)

2. Intuition ~ Know what to do but doesn’t have logic to explain how they’re right

3. Self-understanding ~ Put yourself in the shoes of the person your leading (Actually having to put yourself in their shoes from the past or present)

4. Vision ~ You know that actions lead to reactions

5. Value Congruence ~ Ability to take people from diff. backgrounds & unite them behind a common purpose

Sales - Power (2 factors)

1. Ability to influence others

2. The other person has to yield the power to you

Different Sales Power - CERRL

• C - Coercive Power:

  • The power we yield to someone bec. ability to punish us

• E - Expertise Power:

  • The power we yield to someone bec. their ability to specialize

• R - Reward:

  • The power we yield to someone bec. their ability to help

• R - Referent:

  • The power we yield to someone bec. we know or like them

• L - Legitimate:

  • The power we yield to someone bec. their title

Sales Force Contest Study - used for…

1. Sales people who normally excel do better in contest than avg. performers

2. Lower income salesperson do better in contest than ??

3. An obj. of easing an unfavorable inventory position will not work - if product is not selling = put it into a contest

4. Contest that use a quota do not work bec. “quoata” & “contst” can not coexist

5. More prob. occur when the # of contest increase - people get frustrated when they don’t when they will win

6. Better performance occurs when you change the rules - if the contest changes yearly

7. Better performance occurs when contest has/is a shorter length

8. Expect a pre & post sale slump w/ a regular schedule contest

Performance Reviews - To determine… T.P.R.F.R/B

• Territory Adjustments

• Who get promoted

• Who gets retrained

• Who gets fired

• To determine raises & bonuses

David Johnson Video

David Johnson (prospect) is physically running the meeting bec. he is standing while the salesperson is sitting

BOOK: MKT 340 CH2

VOCAB TO LEARN BELOW

Market Potential

Estimate of maximum demand in a time period based on the number of potential users and their purchase rate

• Industry sales < market potential

• Purchase rate is function of price levels, overall product quality, promotional expenditures, and number of stores stocking

Sales Potential

A portion of total industry demand - maximum amount a firm can sell in a time period under optimum conditions (most favorable conditions)

• Company sales will be lower than industry sales

• Ratio of company sales to industry sales → measure of the market share of the organization

Estimating Potentials (Def)

All estimates of potential are based on two key components

1. Number of possible users of the product

2. Maximum expected purchase rate

Sometimes can get estimates from trade associations/commercial research associations BUT you have to come up with your own potential figures, broken down by… GIC

• geographical area

• industry

• customer type

Estimating the Number of buyers…

• Use secondary sources - reports databases in magazines & computer networks

• Purchase rates trade organizations and gov’t publications

• Existing products - use ratio of current sales to # of household or sale per person

• New Products - use conversion rate from experience “Buying Power Index Method”

• Buying Power Index Values - Used to help manager allocate selling efforts across geographical regions

• Marketing potential for consumer goods - indexes from basic economic data

Growth Share Matrix

A portfolio-planning method:

• Evaluates a company’s strategic business units (SBUs) in terms of market growth rate and relative market share.

Product/Market Expansion Grid

A portfolio-planning tool:

• Identifying company growth opportunities through market penetration, market development, product development, or diversification.

Market Penetration

Company growth…

• by increasing sales of current products to current market segments without changing the product

Market development

Company growth…

• by identifying and developing new market segments for current company products

Product development

Company growth …

• by offering modified or new products to current market segments

Diversification

Company growth… through

• starting up or acquiring businesses outside the company’s current products and markets

Value Chain

Set of internal departments - carry out value-creating activities to design, produce, market, deliver, and support a firm’s products

Value delivery Network

A network composed of the company, suppliers, distributors, and customers who partner with each other to improve the performance of the entire system in delivering customer value

Marketing strategy

Marketing logic by which the company hopes to create customer value and achieve profitable customer relationships

Market segmentation vs Market segment

Market segmentation:

• Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate marketing strategies or mixes

Market segment:

• A group of consumers who are expected to respond in a similar way to a given set of marketing efforts

Market Targeting

Evaluating each market segment’s attractiveness and selecting one or more segments to serve

Positioning

Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers

Differentiation

Actually differentiating the market offering to create superior customer value relative to the competition

Marketing Mix

Set of marketing tools - product, price, place, and promotion—that the firm blends to produce the response it wants in the target market

SWOT Analyisis

Evalaution of the company’s