Partnering relationships between a salesperson and a another member of the same company dedicated to satisfying customer needs

- salesperson also acts as 'customer' to selling company

• The ability to work in groups inside the company to manage different company efforts can directly affect the rep's pocketbooks. CHACHING$

Salespeople carry the voice of the customer across the organizations.

• They sell the customer's needs to the company.
• one of the most important functions of a salesperson.

Selling Internally (laterally)

-relationship should be similiar to a partnership

-first step is to develop relationships with other departments 

-can use SPIN to understand personal and professional needs of personnel in other departments 

The 7 Principles of Personal Selling Are:

1. Accept responsibility
• for gaining support of internal staff
  
2. Appeal to a higher objective 
• (how does what you are asking for meet a company objective?)
3. Understand the personal and professional needs 
• (of the internal customer. Use SPIN and active listening techniques)
4. Address the internal customer needs 
• (as well as your own. Use presentation skills)
5. Increase the internal customer's sense of urgency 
• (to the level you need)
6. Never personalize 
• (keep it professional, not personal)
7. Negotiate 

1. Manufacturing, 
• concerned with producing product at lowest cost - long production run, little customization & low inventories - cust. want opposite 
• salesperson acts as middleman 
2. administration, 
• processes orders and sees salesperson gets paid for them - build relationship to get thinks done in more efficent manner 
3. shipping 
• depend on shipping to fulfill salespersons promise of delivery date/specifications
  
4. customer service, 
• early warning signs of competition and product dissatisfaction
5. marketing
• sales act as eyes and ears of marketing
6. and sales

Partners in the Sales Organization 

What does the Sales Executive do?

The sales executive is the manager (policy maker) at the top of the sales force hierarchy. - makes decisions in respect to new products,new markets, sales forecasts, prices, and competition

1. Size and organization of the sales force
• determines level of satisfaction necessary to achieve objectives, then designs salesforce to achieve these goals
  
2.  Forecasting (I.e. bottom up forecasting)
    
3. Expense Budgets (Expressed in $$ or allocation of sales volume)
    
4. Control and Quota Setting (Maximize salespeople's results)
    
5. Compensation and Evaluation 

hiring - training - performance - salespeople

• this is who Salespeople directly report too

• Sales Quota 
• (Mininimum sales in units)
• breakdowns of company's total sales forecast
• Revenue Quota 
• (Minimum sales revenue)
• Profit Quotas/Gross Margin Quotas 
• (Minimum levels of profit or gross margin)
• motivate sales force to sell more profitable products or customers
• Can be negative if it puts quota over customer needs 
• Activity Quotas 
• (Minimal levels of activities - 
• calls, presentations, demonstrations, etc)
• Important in Long Sale Cycles and Few Sales

What type of Compensation Plan provides:

Regular payment regardless of performance 

What type of Compensation allows

Payment to be tied to some

level of performance 

Straight salary method

• Salesperson is assured a steady income and can develop a sense of loyalty to customers.
• little financial incentive for salespeople to sell more

A certain amount per sale, and it includes a base and a rate but NOT a salary.

-

-

the item from which commission is determined.

**Usually unit sales, $ sales, or gross margin.

• Commission rate is expressed as a percantage (or point plan or $$ amount) of the base.

Money paid to a salesperson against future commissions is ______.

It is in essence a loan that guarantees a stable cash flow.

Draw

(Recoverable/Non-Recoverable)

___________ ______ offer the greatest flexibility for controlling and motivating the activities of salespeople. 

• They offer salary + commission.

Combination plans

• bonuses, awarded monthly, quarterly, and are always used with salary and/or commission
  
• Also known as, 'salary-plus-commission' plans
• Disadvantage: complexity - salespeople may unknowingly perform wrong activities or get rewarded for wrong activities

Open-Door Policies

"Managing Ethics in Sales"

Open-door policies that provide expert advice to salespeople who are unsure of the ethical consequences of an action.

• They may consist of experts inside and outside the company.
• can review ethics policies, investigate allogations, and act as board of employees
  

• Leave the organization or ask for a transfer
  
• Negotiate an alternative course of action
  
• Blow the whistle, internally or externally
  
• Threaten to blow the whistle
• Appeal to a higher authority; i.e. ethics review board
• Agree to the demand but fail to carry it out
• Refuse to comply with the request
• Ignore the request

Accounts Salespeople

Large customers who have a salesperson assigned only to that account or even a small sales force are called ____ accounts.

1. National Account Managers (NAMS) are:
    
2. Strategic Account Managers (SAMs) are:

1. Business executives that coordinate all the salespeople who call on an account throughout the nation or the world.
    
2. manage large teams of salespeople  - account strategy for global account - relies on local people to implement strategy

______ accounts are often key accounts, but not vice versa.

(Hint: they have no true salesperson and no commission is paid to the executive who handles them)

Salespeople that specialize in types of products.

...duh!

• _________ __________ sell at their own company's location.
   
• A ______ __________ ____ is a telemarketer who works with field salespeople and does more than prospect for leads.
   
• A _________ __________ ____ is an inbound salesperson who responds to phone calls placed by customers.

• Inside Salespeople
• Field Support Rep
• Customer Service Rep (CSRs)
• Inbound 
• respond to telephone calls placed by customers
• Outbound
• telemarketer makes the calls

Group of salespeople - supporting a single account.

Each person on the team brings a different area of expertise or handles different responsibilities.

Members at various levels of the sales organization call on their counterparts in the buying organization, this is an example of ____________ ________

(Can take place without formality)

The Sales Executive 

Forecasting 

Define: Bottom-Up Forecasting

- technique of adding each salesperson's own forecast into a forecast for total company sales.

• allows info to come from people closest to the market : Salespeople!

1. formal policy
2. ethics training courses
3. ethics review boards 
• one version of an open-door policy -
•  the other version is ethics officers
4. open-door policy

Define: Cap

What are the various

types of Salespeople?

1. Geographic Salespeople
2. Account Salespeople
3. Telemarketing Representatives
4. Field/Inside Salespeople
5. Product Specialists
6. Account specialists

How do companies

organize sales people by account? 

1. responsibility to sell to only one company but in every location of that company in world/country
2. form of specialization - develop new accounts while maintaining current accounts
3. call on only one or few customer types - althoughthey sell the same product 
4. divide customers based on size