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Sales Force Management

Fall 1999

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Outline

Role of the sales force in corporate strategy

Trends in personal selling and sales management

Functions of the salesperson and sales manager

Course overview

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Strategic Leverage of the Sales Force

Customer focusEnhances customer loyaltySource of competitive advantage

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Enhances Customer Focus

Allows a targeted market segment approach one customer at a time customize sales calls and presentations

by needs important source of market knowledge

and customer needs assessment

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Develops Customer Loyalty

Creates high switching costs salesperson (knowledge, expertise,

relationship) creates product/service differentiation, particularly when competitors’ products deliver the same basic benefits

Loyalty reduces the customers’ price sensitivity

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Source of Competitive Advantage

Creates a barrier to entry costs of creating a sales force market access

Creates a medium-to-long term competitive advantage unlike advertising (medium-term) or

pricing (short-term)

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Trends in Personal Selling

Nature of the sales job: Informed consultant:

knowledge of customers, industries and applications

Process (rather than event) driven Team player Customer advocate/Market feedback Integration of promotional mechanisms

(e.g. DTC)

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Trends in Personal Selling

Nature of the sales manager’s job: Decentralized management; greater

span of control Automation Database targeting/customer data Evaluated on team performance (rather

than individual performance) Reward in many ways (not just $$)

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Importance of Effective Sales Management

Expensive part of marketing strategyCost of call:

Overall average: $157 ($239 for a value-added selling

environment)

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Functions of the Salesperson

ProspectingCommunicating: two-wayAllocating & coordinating: company

resources, timeServicingHelping define marketing strategy

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Functions of the Sales Manager

Communicate expectations: tell salespeople what you expect them to do

Make the work doable: an important component o the SM role here is removing obstacles to performance

Evaluate and give feedback: reward successful behavior, apply corrective actions for behavior that is not acceptable

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Course Overview

Effective Personal SellingStrategic IssuesTactical IssuesIndustrial Settings

informed buyers discipline of repeat purchase often genuine differentiation is possible

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Course Overview (continued)

Effective Personal Selling What is effective personal selling? Business to business selling and the

Buyclass Framework (Case: Lawford Electric)

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Course Overview (continued)

Strategic Issues Vertical Integration (Case: Jamestown) Control Systems Structuring the Sales Force(Cases: Wright

Line & Siebel Systems Sales Force Allocation: Deployment &

Organization (Case: Syntex) Territory Assignment & Design Strategy for Optimal Sales Productivity

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Course Overview (continued)

Tactical Issues Sales Analysis (Case: Milford A) Performance Evaluation (Case: Milford B) Compensation (Case:Mary Kay Cosmetics) &

Motivation (Case: IMAGE) Selection (Case: IDS) & Training Information Systems/Sales Force Automation

(Case: Profiling at National Mutual) Sales Force Automation

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Course Overview (continued)

Putting it all together (Case: DigitalThink & Group Projects)

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Course Requirements

Class Participation 20%Group Projects 35%

DigitalThink Case Group Presentation

Mid-term Exam 20%Final Exam 25%

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Class Participation

Show up, on time.Prepare cases and readingQuality vs. quantityContribute articles/reading/examples

http://www.salesandmarketing.com/ http://www.sellingpower.com/ http://www.decalibrary.org/

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Group Projects

DigitalThink Case Due November 17th on or before class.

5 page limit on text w/ 3 page limit on exhibits

Group Presentation Only presentation needs to be

submitted-- no paper/write-up

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Mid-term & Final Exams

Case orientedMid-term will focus on personal

selling & strategic issuesFinal will be more heavily weighted

on tactical issues

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Policies

Projects are due on or before classYou may challenge a grade-- but only

in writing

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Communicating with the Professor

E-mail is great (cain@haas.berkeley.edu)

The syllabus is on the webOffice hours: Wednesday 11:00am-

2:00pmBy appointment