Day 2

Question 1

Defining Salesforce DeploymentA two steps process

Answer 1

1. How much SELLING EFFORT is needed to cover accounts and prospects adequately so that sales and profit objectives will be achieved?
   ALLOCATION OF SELLING EFFORT
2. How many SALESPEOPLE are required to provide the desired amount of selling effort?
   SALESFORCE SIZE
   +3. How should territories be designed to ensure proper coverage of accounts and to provide each salesperson with a resonable opportunity for success?
   TERROTORY DESIGN

Question 2

what is Account Opportunity ?

Answer 2

• an account’s need for and ability to purchase the firm’s products

Question 3

what is Competitive Position ?

Answer 3

• the strength of the relationship between the firm and an account

Question 4

Allocation of Selling effort -> Single factor models

Answer 4

Easy to develop and use; low analytical rigor
Accounts classified into categories based on one factor, such as market potential
All accounts in the same category are assigned the same selling effort (e.g. number of sales calls)

Question 5

Allocation of Selling effort -> Portfolio models

Answer 5

! Account Opportunity - an account’s need for and ability to purchase the firm’s products
! Competitive Position - the strength of the relationship between the firm and an account

Question 6

Allocation of Selling effort -> decision models

Answer 6

1. Simple Basic Concept =
   to allocate sales calls to accounts that promise the highest sales return from the sales calls
2. Maximizing the revenue for any given number of sales calls
3. Increase the sales calls (selling effort) until marginal costs equal marginal returns
   !ignore the human factor, techonology based

Question 7

Sales Force Size: Key Considerations

Answer 7

Sales Productivity

• Ration of Outputs to Inputs
• Sales Growth as a Result of Adding Salespeople is Curvilinear
• Diminishing Marginal Returns

Salesforce Turnover

• Usually Very Costly
• Should be Anticipated and Managed

Organizational Strategy

• Growth Targets
• Selling Costs
• Market Share

Question 8

name 3 Analytical Tools for Salesforce size

Answer 8

1. Breakdown approach (forecasted sales/avg sales per person)
2. Workload approach (total effort needed/avg effort per person
3. Incremental approach (marginal cost vs marg profit)

Question 9

How to calculate turnover?

Answer 9

For any given time frame (e.g., month quarter, year), divide the number of salespeople leaving their jobs (e.g., terminated, quit, promoted) by the total number of salespeople employed at the mid-point of the time frame.

Question 10

Territory design. What is a territory?

Answer 10

Territories consist of whatever specific accounts are assigned to a specific salesperson. The territory can be viewed as the work unit for a salesperson. Often a geographic area = accounts within that area

Question 11

Territory Design: Considerations

Answer 11

Trading area, Present effort, recommended effort

Question 12

Territory Design Procedure

Answer 12

1. select planning & control unit
2. analyze planning & control unit opportunity
3. form initial territories
4. assess territory workload
5. finalize territory design

Question 13

2 approaches to forecasting

Answer 13

Top-Down vs. Bottom-Up Forecasting

Question 14

top-down forecasting

Answer 14

Forecast made at the business unit level then broken down by zone, region, district, territory, and account forecast.

Question 15

bottom-up forecasting

Answer 15

Forecast made at the “front-line” level and then aggregated up the levels of the organization

Question 16

3 Company Forecasting Methods

Answer 16

1. moving averages
2. exponential soothing
3. decomposition methods

Question 17

Moving Averages forecasting

Answer 17

Uses historical averages to forecast future sales
Averages are calculated using a predetermined number of previous periods (e.g., two-year moving average; four-year moving average)

Question 18

Exponential Smoothing forecasting

Answer 18

Weighted moving average

Usually most recent period is weighted heavier

Question 19

Decomposition Methods forecasting

Answer 19

Breakdown historical sales data into four components (trend, cycle, seasonal, erratic)
Evaluate the components and then reincorporate to create forecast

Question 20

What kind of Bottom-up approaches do you know?

Answer 20

Survey buyer intentions

• Survey buyers purchasing intentions
• Aggregate

Jury of executive opinion

• Executives or other experts estimate sales at the account level
• Estimates are averaged or otherwise agreed upon to generate forecast

Delphi (A form of jury of executive opinion)

• “jury” is anonymous and estimates are redistributed for revision
• “jury” review and revise estimates until consensus is reached

Sales force composite

• Salespeople create forecasts for the accounts and territories
• Forecasts are aggregated

Question 21

Forecasts provide the basis for all of the following sales management decisions except …

a designing territories.
b evaluating prospective accounts.
c determining sales compensation levels.
d evaluating salesperson performance.
e planning integrative meetings.

Answer 21

e planning integrative meetings.

Question 22

The best possible level of industry sales in a given geographic area for a specific time period is the definition for

a market forecast.
b sales potential.
c salesperson quotas.
d market potential.
e sales forecast.

Answer 22

d market potential.

Question 23

The best possible level of firm sales in a given geographic area for a specific time period is the definition for…

a market forecast.
b sales potential.
c salesperson quotas.
d market potential.
e sales forecast.

Answer 23

b sales potential.

Question 24

This forecasting approach begins by the development of company forecasts by individuals at the business unit level:

a bottom-up approach.
b salesforce composite method.
c top-down approach.
d naive approach.
e survey of buying intentions.

Answer 24

c top-down approach.

Question 25

__________ develops a company forecast by calculating the average company sales for previous years.

a Moving averages
b Exponential smoothing
c Decomposition methods
d Breakdown methods
e Delphi methods

Answer 25

a Moving averages

Question 26

The forecasting technique that involves a panel of managers each submitting an anonymous forecast for an account which are summarized into a report and then sent to each panel member is the…

a executive decomposition method.
b Delphi method.
c executive decision method.
d top-down approach.
e jury of executive opinion method.

Answer 26

b Delphi method.

Question 27

Top 5 factors in selling

Answer 27

Listening Skills (active listening)
Follow-up Skills
Ability to adapt sales style form situation to situation
Tenacity- sticking with a task
Well organized