Case 7 MM2

Due Date: 15th NOV 2010 Submission Date: 15th NOV 2010MARKETING MANAGEMENT-II Case 7 What They Didn¶t Teach in Sales Class at My Business School Submitted by: Group 4 Name Arpan Senggupta Chetan Sharma Irshad Ali Puneet Jain Sudhir Mishra Roll No Batch 43013 IMG 4 43017 IMG 4 43027 IMG 4 43039 IMG 4 43055 IMG 4 Phone No 7827196515 9811868332 9560035670 9582408730 9868070988 Foreian id [email protected] [email protected] [email protected] [email protected] [email protected] Fore School of Management B-18, Qutab Institutional Area, New Delhi, India He felt helpless by factors such as competiton which is not under his direct control but severely affects his reports. When Rick was in High school he was more into athletics and cheer leading. This misconception of his deepened during the one month training period which was mostly spent reviewing sales training manuals .Case MM. He is going to tha same thing . Should Rick Lester ³turn in his keys´? Is selling ³for everybody & anybody´ ? What are key success factors that may ensure success in a sales job ? Ans:-© No Rick Lester should not ³turn in his keys´.S degree in marketing from University of Alabama at Birmingham Due to his inability to deal with Mathematics he chose marketing as his specialization. Rick expected his job to be on the easier side. Reasons: 1. who is a sales manager. Rick Lester had a habit of running away from problems. All these factors had driven Rick to think of quitting his present job and searching for new options. But the same work seemed difficult on his own. Coupled with that is the physically demanding nature of the job and lack of any family time. Brown making all the calls. and his dissatisfaction with his current job.II What They Didn¶t Teach in Sales Class at My Business School _______________________________________ SUMMARY:-The case deals mostly with the lifestyle of a person named Rick. He himself began questioning the status of his job. QUESTIONS AND ANSWERS 1. Furthermore µsalesperson¶ tag was viewed as a low profile job by his wife and few retailers which build on his emotional pressure. Rick found out that the sales education he received deals mainly with the advantages of selling but the job is teaching him all these disadvantages.completing employment paperwork and observing his superior Mr.Rick is more or less an average person who is employed as a salesperson with Nabisco after his B. He was into sales field because he doesn¶t like Algebra. He had done it earlier in case of his study. His wife and retailers seemed to have deepened this conception. Brown. Thus different innovative techniques for training the sales force are emerging such as use od CDs. personality etc. Programmed learning.  Training and supervising sales representatives: Consumers of today expects sales people to have product knowledge. attitude. less time for family.Studies indicates that the top 27% of the sales force brought in 52% of the sales. current lifestyle. He had to learn the disadvantages through practical experience and develop measures to counter these. In this regard the biggest example is of Mr. Conversely it¶s a great waste to hire wrong people as the average annual turnover rate is 20%. Rather he should face the problem. Brown that even salesman can make it big. Rick can draw motivation from Mr. experience. He is smart enough to recognize that a course in Marketing only markets the subject. If he gives up this attitude of his there is no reason that he can¶t succeed. 2. Everyone is expected to perform with these circumstances. He is someone who runs after easy jobs instead of establishing himself by tackling difficult ones. The problems like heavy workload. 3. inducing higher management to pay incentives to retailers or following the same strategy as the competitors. Studies show that training period .again. The last problem is the ³problem of recognition´. uncontrollable factors like competition are there in every jobs. He might discuss the balancing of professional and personal live with other colleagues. © Selling is always never for everybody or anybody. 4. Thus choosing appropriate sales people is a major concern because studies indicates most of the time firms are afraid of quality of sales people of the competitive firm rather than the quality of its products. Choosing sales person and preparing them for sales requires a variety of criteria: Recruiting and Selecting representatives:. Since he had trained Rick it can be safely assumed that he was in the same position himself yet he rose to the position of eminence. Competition factor can be tackled by being more competitive such as reporting this matters to higher management. Rick is obsessed with the idea that µsalesman¶ is a low profile job. Distance learning. However studies indicates that sales performance does not depends on background. Rick had a tendency to take matters lightly. With this kind of attitude even if he find a new job he will again have very hard time there. preference for established supply sources or brands . Average sell call time per conbtact 3. Average cost per sales call 5.  Meeting sales objective: Many companies set annual sales quotas. o Preapproach:. Thus incompetent people cannot become good sales person. Average number of calls made per day by salesman 2. Another task is to choose the best contact approach.Salesperson needs to qualify leads by contacting them through mails. Number of lost customers per selling period A salesperson is evaluated on his or her reports. to spur extra effort or may be to build confidence. benefits and value approach. Thus a salesperson is under constant pressure and hence only competent persons are suitable for effective selling  Evaluation of sales representatives: Sales rep¶s are required to submit report called sales report. a phone call. Number of new customers per selling period 7. social networking sites to assess their level of interest and financial capacity.in medical is 28 weeks. Apart from these factors firms also take into account customer feedbacks. Psychological:. These are of two types:.Customers pose two type of objections 1. plus some fraction of the territory¶s potential to last year sales.(1)Activity Plans (2)Call reports. This report is to be submitted before a week or month. Sometimes a rep¶s quota are fixed higher . advantages. Percentage of orders per hundred calls 6. phone. The sales manager distributes his area among his representatives. It consists of the following: 1. © Key success factors that may ensure success in a sales job:o Prospecting and Qualifying:. in consumer companies 4 weeks. in service companies 12 weeks. whether a personal visit. Activity plans delas with the planning and scheduling of the activities and their whereabouts. o Presntation and Demonstration: The salesperson need to tell about the product using a features.Includes resistance to interference. Average revenue per sales call 4. o Overcoming Objections:. The call report is submitted after the sale period. Thus only devoted personnel are able to take on selling.The saleson person needs to learn as much as possible about the prospects and buyers. or a letter. One general view is that salesperson¶s quota should be at least equal to the person¶s last year sales . But there are three avenues to pursue in trying to keep your turnover rate down: Firms can reduce turnover by following the given steps:The 70% Solution .recapitualate the points of agreement. Brown should do his best to motivate Rick. 6. questions in such a way that the buyer answer his own objection. 2. By removing the psychological effect associated with the term salesperson. By providing him incentives and mental support after sales. By giving him some more training time. 4. Logical:-might be objections to the price. Showing more confidence in him by giving him one of the better potential area.Mr. asks the buyer to clarify the objection. Reps can ask for the order. By keeping Rick under his supervision for a month or so and allowing him to do the selling. 5. Brown handle this situation? What should he say to Rick? What would you do if you were the boss at Nabisco Sales Div? Ans:. The probable actions that could be taken by Mr. Brown with whom Rick is comfortable. o Closing:. Brown 1. Possible steps taken by the boss:1. Companies will always need to promote some salespeople and dismiss others.2.How should Mr. statements or comments and questions.Sales executives cannot²and should not²attempt to prevent all turnover. By evaluating his performance showing that he can do better. 4. 2. o Follow up and maintenance: Follow up and maintenance are necessary for customer satisfaction and repeat business. Motivating him through incentives. offer help to write up the order or indicate what the buyer will loose by not purchasing the product. delivery schedule or product or company characteristics To handle these objections. the salesperson maintains a positive approach. Evaluating the performance of Rick 2.How can firms reduce high turnover among new sales professionals ? Ans:. Highlighting his own carrier and motivating Rick that he can also reach the pinnacle of success. 3.Closing signs from the buyer include physical actions. Making him work under Mr. 2. encouragement 3. And a greater portion of the sales burden falls on new. and substantial numbers quit or are terminated. Reviewing of sales compensation plan. Better hiring and training. This somehow brands the salesperson with new identity that does not carry the negative effect. When less than 70% of a firm's salespeople make quota. Better training is a solid investment in getting new salespeople up to full productivity sooner. High termination rates can make it even tougher for firms to hit next year's numbers. 70% sales force attainment is the number IBM uses to set its quotas. Driving off salespeople by setting quotas too high makes consistent hitting of any number difficult² perhaps impossible.Quota levels should be set where salespeople can hit them. less productive salespeople. Competitive comp plans.What can firms do to increase salesperson status and self esteem ? Ans:. Money spent to more effectively screen and recruit new salespeople can yield higher caliber employees who more closely fit the company's corporate culture and sales success profile. Providing high salary and incentives: Very often sales job are taken as a low salary job where people have to work like animals. the remaining sales veterans may feel demoralized. it's a good idea to hire the right person in the first place. thus reducing turnover.The term µsalesperson¶ somehow carries a very negative effect with it. . one-third of the sales force may be lost through termination. it is considerably less than the cost of losing an established salesperson. Although the average cost to hire and train a new salesperson is high.Possible steps taken by firms:Removing Of the term Salesperson:. Does it provide earnings that are competitive with other companies and the industry at large? 4. Refer back to Section Two for advice on making sure the person you hire will perform on the job. Studies show that when quotas are set so that 70% or more of the sales force can achieve them. Not coincidentally. But if less than 70% of the sales force can reach quota. The term somehow shows a low profile job where employees have no respect. the termination rate is only 18%. Company can provide high salary to the sales employees leading to a lucrative lifestyle as a result the myth will be broken. Company can coin term like company representatives or product introducer to denote salesperson. Of course. Companies can allow experience sales person to take part in meeting concerning strategies and product development. Companies can also provide the sales people with awards or incetives or company paid holidays to showcase their importance. This step will also motivate the employees to perform better. This will help the students to better cope with difficult conditions. MARKETING CONCEPTS USED Principles of personal selling. 4. 5. 3. 1. Its an extremely practical subject and hence the class should be designed with solving real life problems.A company can advertise about the targets achive by its sales representatives in a given area over a given period of time.Showing the importance of salesperson: Traditional view about salespersons hols it as an irresponsible post. Students should be given project with deadlines. 5. 6. Selling is not a theoretical subject. 5. 4. In addition to the benefits of selling it is also very important to clearly teach the students about its demerits. Students should be made aware of the related IT developments and social networking sites and how to zero in on a prospective customer. This method not only will refurbish the image of the sales person but also make the customers more awar about the product and instill fear among the competitors. Students should be kept under constant evaluation. 2. Students should be given thorough coaching on communication and presentation skills and made aware of the FABV approach. 7.What can professors do to better prepare students in sales classes? Ans:-Possible steps that can be taken are given below: 1. Advertising about the effective sales forece team:. Students should be given instructions to develop their listening skills and patience 6. THE six steps of personal selling Managing the sales force Turnover issues management Maslow¶s model Consumer realationship management . 3. 2.