Sales Management
Sales Management
Sales Management
Set of flashcards Details
| Flashcards | 149 |
|---|---|
| Language | English |
| Category | Marketing |
| Level | University |
| Created / Updated | 19.04.2016 / 21.02.2020 |
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6) Coordination and Integration of Marketing and Sales
A taxonomy of Drivers/Mechanisms for achieving functional integration: People: Development (3)
- Common new employee orientation and basic training program
- Job rotation / temporary job transfer programs
- Career path allowing cross-overs
6) Coordination and Integration of Marketing and Sales
A taxonomy of Drivers/Mechanisms for achieving functional integration: Structure: Organizational Structure (2)
- Merge Marketing & Sales
- Decentralization and Participation
6) Coordination and Integration of Marketing and Sales
A taxonomy of Drivers/Mechanisms for achieving functional integration: Structure: Organizational Methods (3)
- Cross-functional project teams
- Coordinating groups / committees (liason units)
- Matrix Organization
6) Coordination and Integration of Marketing and Sales
A taxonomy of Drivers/Mechanisms for achieving functional integration: Culture: Top Management Actions (3)
- Commitment to integration
- Setting common goals
- Shared values
6) Coordination and Integration of Marketing and Sales
A taxonomy of Drivers/Mechanisms for achieving functional integration: Culture: Fostering Oneness (3)
- Joint company events, celebration, camps and incenctive travels
- Joint visits to customers
- Sales-customer visits to headquarter
6) Coordination and Integration of Marketing and Sales
A taxonomy of Drivers/Mechanisms for achieving functional integration: Systems: Formal Integrative Processes (3)
- Joint Project Review Procedures
- Joint planning and budgeting
- Cross-functional training
6) Coordination and Integration of Marketing and Sales
A taxonomy of Drivers/Mechanisms for achieving functional integration: Information Systems (3)
- Common customer databases
- CRM technologies
- Intranet / groupware / e-mail
6) Coordination and Integration of Marketing and Sales
A taxonomy of Drivers/Mechanisms for achieving functional integration: Systems: Reward systems (3)
- Common Performance Metrics
- Interrelated Goals and Incentive Systems
- Profit-sharing plans
7) Sales Territory Design
Importance of Sales Territory Alignment: 1) Exclusive assignment of salespersons to sales territories in practice (what does it do?) (4)
- supports long-term relationships between accounts and salesperson
- avoids competition among salespersons
- offers better conditions for evaluation and control of the salesperson's performance
- increases the salesperson's morale and effectiveness
7) Sales Territory Design
Importance of Sales Territory Alignment: How big are the sales profit implications of the design of sales territories?
2-7%
7) Sales Territory Design
Importance of Sales Territory Alignment: Sales territories have to be aligned frequently, because: (2)
- market conditions change quite often
- adjustments in sales force size require realigned territories
7) Sales Territory Design
The Three Players and What each One expects from a Sales Territory Alignment: Salespeople (6)
- Opportunity to succeed
- Sufficient income opportunity
- Keep favored account
- Equitable workload
- Low travel time
- Good manager assignment
7) Sales Territory Design
The Three Players and What each One expects from a Sales Territory Alignment: Customers (3)
- Minimal disruption
- Keep favored salesperson
- Receive appropriate salesperson attention
7) Sales Territory Design
The Three Players and What each One expects from a Sales Territory Alignment: Company (5)
- Motivated salespeople
- High sales force retention
- high revenues
- low expenses
- high profits
7) Sales Territory Design
A good sales territory alignment can lead to ....(4)
- balancing workload between the representatives
- sharing the selling opportunities between the representatives
- minimizing travel time
- minimizing the disruption to existing rep-customer relationship
7) Sales Territory Design
Territory Design Process (6 steps)
1) Select sales coverage units (e.g. 4-digit zip-codes)
2) Decide on alignment objectives (workloadbalance etc.)
3) Choose starting points (e.g. starting with country and cut it into pieces)
4) Combine SCUs adjacent to starting points
5) Make final adjustments --> Revise territory boundaries to balance workload and potential
6) Assign salespeople to new territories
7) Sales Territory Design
Goals of Sales Territory Alignment: Companies often pursue the following goals :(4)
- Equal income opportunities for all salespersons
- Equal workload for all salespersons
- Minimization of travel times
- Allowance for simple performance evaluation of salespersons
7) Sales Territory Design
What does the Balancing Approach (as realized by the model "Smart Align" by Zolters / Sinha ) do?
Design of sales territories with equal sales potential and/or equal workload with at the same time lowest possible travel times
7) Sales Territory Design
Decision Support System by Zoltners/Sinha for Sales Territory Design (5 Bedingungen)
1) Minimization of balancing criterion (e.g. workload, weighted distances to ensure compact territories)
2) Balanced territories within lower and upper bounds with respect to the k-th balancing criterion
3) The r-th SCU can be assignes to the j-th territory only if it is asjacent to a different SCU already assigned to the territory
4) A SCU can only be assignes to a territory at once
5) each SCU can only be assigned to one territory, but an not be assigne to more than one at the same time
7) Sales Territory Design
Disadvantages of Balancing Approaches
1. Do the balancing approaches achieve their own goals? (3)
- equal sales potential does not create equal income opportunities
- equal number of calls do not imply equal workload due to unequal travel times
- aside of that: equal income opportunities can also be achieved by individual sales quotas per salesperson
7) Sales Territory Design
Disadvantages of Balancing Approaches
2. Do the balancing approaches maximize profit contribution?
+ what do balancing approaches not provide results for?
- workload is a result of the optimal calling policy --> calling policy depends on the results of optimal sales territory design
- balancing approaches do not provide results for:
- the necessity of territory changes
- the consequences of different salesperson's locations and different salesforce sizes
7) Sales Territory Design
Procedure for Designing Profit Contribution Maximizing Territories (3 steps)
1. Estimate the sales territory response function
--> Provides sales volume as a function of calling-time on a territory level
2. Solve the allocation problem
--> Provides the allocation of working-time of a salerperson across her/his SCUs
3. Solve the assignment problem
--> Provides the assignment of SCUs to sales territories with predetermined salesperson locations
7) Sales Territory Design
Summary and Conclusions
--> Was ist so scheiße an Balancing approaches und warum ist Costa so geil?
- Balancing approaches often fail to establish sales territories with equal income opportunities and fair treatment of salespersons
- in contrast to the balancing approach, COSTA searches for the alignment that maximizes profit contribution
7) Sales Territory Design
Summary and Conclusions
3 Aspekte, warum COSTA so geil ist
COSTA enables the comparison of the profitability of new territory designs with the already existing one
COSTA permits an assessment of the profit contribution impact of
- modified base locations of salespeople and
- different sales force sizes
COSTA is able to build territories that are usually not comparable in terms of income opportunities in the case of equal commission rates
8) Managing Selling Effort
Tour Planning
Decision Problems (3)
- How often should an account be called upon? (Calling frequency)
- How long should one call last and how long should the interval be between calls? (Timing)
- In which sequence should the various calls to accounts be scheduled? (Routing)
8) Managing Selling Effort
Decision situations (2)
+ for which one of the problems are pllanning tools valuable and why?
- The salesperson is responsible for an ever changing set of customers. Calls are made on request on short-term notice.
- The salesperson serves as a fixed set of accounts according to fixed calling intervals.
--> A planning tool is only valuable for the second problem of planning routes for a prespecified set of calls to be made.
8) Managing Selling Effort
Clover-lear tour as Good Heurisit (2 steps)
1) Divide your territory into sections of equal size. It should be feasible to call on the resp. acccounts during a round trip (one day for each section)
2) Determine the optimal sequence of calls per tour
8) Managing Selling Effort
Steps in Application of Tour Planning Tools (4)
1) Calculation of pairwise distances between accounts an between accounts and the salesperson's location according to routing software or based on coordinate
2) transformation of distances into travel time and costs
3) setting up constraints:
- maximum number of calls per trip
- maximum working time per trip
- time intervals in which a call is only feasible
4 )determination of a tour plan which minimizes either distances, travel times or travel costs. Methods are often based on the savings mehod
8) Managing Selling Effort
Basic Idea of the Savings Methos + formula
- improving poor starting solution by combining two separate tours to just one tour
- this is worthwhile if it result in a saving of distance, travel time or cost
eij = dsi + dsj - dij > 0
dij: distance between the i-th and the j-th account
dsj : distance between the salesperson's location and the j-th account
eij: savings as realized by merging two tours by connecting the i-th and the j-th account
This can be repeated as long as the total working time is not exceeded
