International Sales Quiz 1 (Sales management strategy, process and practice)

3 key elements in defining sales strategies

Segmentation of the customer base

Account and relationship strategy

Development of the value proposition

Definitions for segmentation

group of customers with similar needs

process of identifying and managing a portfolio of segments

develop a differentiated value proposition for each segment

7 ways to segment a market

geographic
demographic
psychographic
benefits
geodemographic
generational
usage

Perceptual mapping

technique to visually display the perceptions of customers in relation to competing products in the market place

-two product or service attributes or customer traits can be considered

-By combining the scores across these two criteria the different customer groups can be put on a map

6 steps of account and relationship strategy

1. Identification of potential account

2. Account analysis

3. Account strategy development

4. account action plan

5. sales and support program

6. account review

Identification of potential account

assess account attractiveness by identifying account size, purchasing volume, current suppliers, purchase criteria (worth calling on or not)

Account analysis

assess industry position and identify how the account is doing in its industry; identify the account’s strategy and how they are planning to implement it (sales volume potential)

account strategy development

set targets by estimating yearly volumes; define account objectives; determine the relationship wanted with the account; quantify investments needed to implement the plan (how can I solve their needs)

account action plan

identify which account objectives are the most important ones; plan the objectives that can be accomplished during the coming year; identify all the activities needed to accomplish the objectives (day to day will you call once a week or once a month)

sales and support program

identify how customer service problems can be solved; identify how the customer product problems can be solved (should we bring in a doctor for medical sales)

account review

review the account situation and see if the objectives and plan are still valid and what has been accomplished so far on the account (how is the plan working)

value propositions

the set of expected benefits a company provides to its customers, the promise of value to be delivered that is believed to have a positive impact on the customer’s organization

3 steps the structuring a value proposition

1. value quantification

2. value comparison

3. value impact

value quantification

what are the customers asking for

what are the key value elements in our value proposition

how will customers benefit? is that benefit quantifiable

will customers believe it

value comparison

is our value superior than a competitor’s offering

for which customer segments is the value proposition relevant

can we prove value to our customers

value impact

will the customer be able to profit from the value proposition

what impact will our value proposition have on the customer

4 principles to co create customer value

1. focus on ends instead of means

2. turn your customer into an active partner

3. develop value propositions based on organizational capabilities

4. focus on learning through dialogues and relationships

principle 1 focus on the end not the means

focus on the solution not the product
you have to sell by selling a solution to a problem not presenting a product

Principle 2 turn the customer into an active participant

customer has to be involved, sales person should talk 20% of the time, pull the customer in and listen to their problems so you can solve them

Principle 3 develop value propositions based on organizational capabilities

create value based on the organization as a whole

Principle 4 focus on learning through dialogues & relationships

co create with customers to develop new capabilities