MKT 340 Exam 3

• Setting goals


  1. need - to increase productivity and to. not waste time

  2. nature

  - specific - general goals are harder to achieve

  - measurable - have a quantitive component

  - reasonable

  - challenging

  - time based

  - write them down

  - accessible

  3. types

  - performance - defined as total sales revenue | adv - easy to administer

  - activity - total number of appointments completed, only thing you can control | disadv - doesn't take account for performance

  - conversion - percent of appointments that become clients
• allocating resources


  1. RPA

  2. green time vs red time

  3. 80/20/80
• RPA - revenue producing activities


  - face to face in front of client or prospect

  - telephoning for appointments

  - actively networking
• Green time vs Red time


  - green time: M-F 8-6:30 do all RPAs during this time

  - red time: rest of the week - do other non RPAs
• 80/20/80


  80% of your time with the 20% of your clients who give you 80% of your revenue
• implementation


  typical week - be geographically smart, take 1 business day a week and set up the rest of your week, take real vacations (min 1 week and not the city you live in), hire an assistant when its economically feasible
• Evaluation


  daily vs weekly vs quarterly

  - daily: "did i pick up any bad habits today?"

  - weekly: a) total number appts completed b) total number of referrals gathered c) not prospect list - someone you expect to close within 30 days

  - quarterly: do a quarterly eval to make sure income exercise is working and to prevent paradigm shifting in wrong direction
• building internal partnerships


  1. Manufacturing - to understand the product more

  2. Administration - a good administrator allows people around them to do what they do best

  3. Shipping - to figure out why there are issues, can help you, tie breaker is your relationship

  4. Customer Service: they're fighting your battle and so complaints go to you and not higher up

  5. Marketing: people that control the message, tie breaker is your relationship

  6. Sales
• Building Long Term Partnerships (4)


  1. Value of Customers

  2. Exploration Phase

  3. Expansion Phase

  4. Causes of Dissolution
• Value of Customers


  -Existing clients buying more stuff

  -If you retain 2-3% of clients, that is equivalent to 10% cost reduction
• Exploration Phase


  -Set the right expectations: under promise, over deliver

  -Expect more complaints

  How to handle complaints (4):

  1. Encourage them to share stories

  2. Determine the facts of what happened

  3. Provide a solution

  4. Follow up
• Expansion Phase (4)


  1. Ability to generate repeat orders

  -Be present at buying time: some people are more liquid at certain times of the year than others (go back to anniversary date when they first purchased from you to find out when buying time is)

  -Service their accounts/clients

  -Offer expertise and assistance: if someone comes to you for advice, they trust you and have strong relationships

  2. Upgrading: newer version of original products

  3. Full Line Selling: accessory to the original product

  4. Cross Selling: brand new product but from the same salesperson
• Causes of Dissolution (4)


  1. Limited personal relationships: now done over the phone to save time, if you depersonalize someone, don't be surprised if they don't remember (reservice it the way they bought it)

  2. Failure to monitor your competition: respect competition, not one company has all the best ideas, study them and find ideas to steal

  3. Failure to monitor your company: know your customers now and in the future using demographics

  4. Complacency: if you are satisfied, you will get passed by someone who is less satisfied, find ways to stay motivated
• Types of Compensation (4)

  1. Straight salary

  2. Straight commission

  3. Combination plan

  4. Draw
• Straight Salary


  Receive the same amount per pay period

  Advantages: constant, doesn't matter how many sales you do

  Disadvantages: no drive to do more or do better
• Straight Commission


  Direct correlation between performance and reward, sell more=more money

  Advantages: unlimited incentive

  Disadvantages: emotional rollercoaster
• Combination Plan


  Combination of salary and commission

  Advantages: some security and some incentive

  Disadvantages: only benefits people in the middle area of skill
• Draw


  Interest free loan against future commissions

  Advantages: allow to legally discriminate without being locked into a salary

  Disadvantages: stressful, constantly having to pay back loans
• Forecasting (2)


  1. Importance

  2. Methods
• Forecasting Importance (3)


  1. Budgeting

  2. Expense controls within budget

  3. Number of salespeople you hire
• Forecasting Methods (3)


  1. Sales force composite

  2. Jury of Executive Opinion

  3. Leading indicator
• Sales Force Composite


  Forecast that comes from the salesperson

  Step 1: self assessment

  Step 2: past performance

  Step 3: reasonable prediction

  Advantages: salespeople work harder to make their numbers

  Disadvantages: still might get unreasonable predictions even with 2 filters
• Jury of Executive Opinion


  Forecast comes from the manager

  Advantages: easy to administer

  Disadvantages: if salespeople don't make their numbers, they blame the managers
• Leading Indicators


  An anomaly or one time event that can effect forecast (recession)
• Organization (3)


  1. Geographic

  2. Product

  3. Customer Sales Force
• Geographic


  Organized by physical territory

  Advantages: reduce travel expenses and with rare exceptions gives you the chance to master the territory

  Disadvantages: some territories can be more attractive than others, clients follow no rules and restricts entrepreneurism
• Product


  Organize yourself by product or product line

  Advantages: should give spike in customer service

  Disadvantages: if you are perceived to be an expert in something, you struggle in something else
• Customer Sales Force


  Organized by customer or customer type

  Advantages: easy glide path to strategic partnerships

  Disadvantages: if you lose customers, good chance the salesperson becomes obsolete
• Competencies (1)


  1. Coaching
• Coaching (3)


  1. Verbal feedback

  2. Role modeling

  3. Trust building
• Verbal Feedback


  1. Be specific and continuous: tell people how they are doing each time

  2. Recognize: those who achieve whether they want it or not

  3. Reinforce positive behavior: even if the result is not immediate
• Role Modeling


  1. Lead by example: behavior never changes

  2. Best practices: create a gap between what you are teaching someone and how you behave
• Trust Building


  1. Open communication: say anything without repercussions

  2. Open door environment

  3. Relevant selling experiences: stories shared must be related to what you are teaching
• Recruiting (2)


  1. Sources

  2. Mistakes in selecting
• Sources of Recruiting (8)

  1. Classified ads

  2. Employee referral

  3. Networking

  4. Headhunters/employment agency

  5. You

  6. Customer referral

  7. Supplier referral

  8. Referral from competitor
• Classified Ads


  Advantage: ton of names

  Disadvantage: ton of names (filter through unqualified people)
• Employee Referral


  Advantage: personal, free, and heavily filtered

  Disadvantage: role conflict (new hire goes to referring source for help)
• Networking


  Advantage: high intelligence

  Disadvantage: nobody joins an organization to meet 1 person (heavy competition)
• Headhunters/Employment Agency


  Advantage: professional filters

  Disadvantage: cost, can take your signing bonus
• You


  Advantage: no bad habits and you are formally educated

  Disadvantage: perceived lack of experience