Chapter 10: Sales Force 1

Question 1

What are the 3 Key Sales Force Management Levers (godes) that lead to successful sales processes?

Answer 1

The 3 key sales force management levers (godes) that lead to successful sales processes are:
- Skills : Train sales force on the focal product
- Compensation - compensate sales force based on the sales of the focal product
- Structure - Dedicate a single sales force to the product

Along with a positive/good sales culture will lead to better sales processes which lead to better sales.

Question 1

What are the 5 types of SalesForce?

Answer 1

1. TeleSales - Phone call sales
2. Field Sales - Sales people are in the field with customers face to face
3. Hunters - Sales Force that acquire new customers and grow the customer base
4. Farmers - sales force that focus on retaining current customers and increasing customer SOW (share of wallet)
5. Ranchers - Takes care of current customers while adding new ones

Question 2

What are the 3 generic customer strategies (RDA) regarding the Customer Pyramid?

Answer 2

Development - Get and move more customers higher in the pyramid, to Medium, Big, and Premium customer groups

Retention - Keep customers from leaving the pyramid, and moving lower in the pyramid

Acquisition - Focuses on adding new customers to the customer pyramid, and also re-activating inactive customers

Question 3

What are the 3 ways the sales force can be segmented?

Answer 3

The sales force can be segmented in 3 ways:

1. Geographic
   - Selling in diverse geographical areas
   - Less variety needed amongst buyers, Narrow product line, less technical differences between the products
2. Product
   - Tech variety in product line
   - Delivery is a key sales variable
   - Volatile markets as regards products
3. Market / Customer
   - Rapidly changing competitive markets
   - Where specialized customer oriented knowledge is needed

Question 4

What are the 3 ways of Expanding revenue?

Answer 4

Cross Selling:
- From the customers that buy a specific product (A) increases the probability that they buy another product (B) as well

Up-Selling:
- From the customers that we cover who buy low priced products increase the proportion of customers that can be moved to buying to higher priced products

Product Penetration:
- From the customers that we cover, we want to increase the number of customers that buy a specific product (product A)

Question 5

What are the 3 Es in measuring the Sales Force effectiveness?

Answer 5

Effort (Input
Effectiveness (Output)
Efficiency (output)