Part II SALES FORCE ACTIVITIES

1. Part IISALES FORCE ACTIVITIES Chapter 3: Sales Opportunity in Management

2. Sales Opportunity Management Generating New Accounts Managing Existing Accounts Sales Versus Profits Personal Time Management

3. Generating New Accounts

4. What CreatesSatisfied Customers? Mergers and Acquisitions 10% Acquiring New Customers 42% Introducing New Products 15% 42% Increasing Business with Existing Customers

5. Prospect Profile Disposable Medical Supply Distributor • Multiple-practice physician office • Internal medicine, family practice • Suburban location • New practice -- less than 5 years • Good credit history • Currently purchases from a full-service distributor

6. Siebel Systems, Inc.: Opportunity Assessment

7. Developing a Prospect List 1. Direct Inquiry Advertising Direct Mail Trade publications Trade shows 2. Directories – Thomas Register 3. Referrals 4. Cold Canvassing

8. Qualifying Prospects 1. Needs for your products/services 2. Authority to make purchase 3. Credit rating & ability to pay 4. Rating scale applied to characteristics by each salesperson

9. Siebel Systems, Inc.:Assessing the Opportunity

10. Managing Existing Accounts Is the account too small?

11. Table 3-1Computing the Cost per Call for an Industrial Products Salesperson

12. Sales Opportunity ManagementKey to Productivity Breakeven Sales Volume (Cost per Call) x (Number of Calls to Close) Sales Calls as a % of Sales

13. Table 3-2Selected Statistics on Cost per Call and Number of Calls Needed to Close a Sale

14. Sales Opportunity ManagementSelected Break-Even Results

15. Now what? Setting Priorities?

16. Methods for Setting Account Priorities • Single-Factor Model • Portfolio Models • Decision Models • Sales Process Models

17. ABC Account Classification (Single Factor Model)

18. Portfolio Model

19. Customer Break-Even Analysis(Decision Models) Average Sales Volume Per Month $9,784 $8,153 C $6,522 $4,891 $3,261 A $1,630 B 1 2 3 4 5 6 Number of Sales Calls Per Month

20. How Dell Achieves Selling Efficiencies(Example of Sales Process Model) Traditional Model Internet Model 100,000 Catalog Drops 100,000 Website Visits 5,000 Calls 10,000 Calls 2,000 Orders 500 E-Orders 1,750 Orders

21. Big Difference?

22. When Systematic Biases Are Likely to Exist

23. When Systematic Biases Are Likely to Exist (cont.)

24. Time Allocation

25. Time Allocation • As a salesperson for Strength Footwear, Inc., you have been very successful. • Your commissions are well over $70,000 a year. Demand for your product line is very strong, but so is the demand on your time. • You work your territory 220 days a year and can make 4 calls a day. The maximum number of times you need to see any account is every other week, but you need to call on each account at least once a quarter. • To help you allocate your time according to sales results, you have gathered the following information on customer sales:

26. Time Allocation: Customer Sales Strength Footwear, Inc. • Develop and justify a call schedule for allocating time across the 110 customers in your territory. • What additional information should you consider in allocating your time?

27. Time Allocation Analysis

28. Time Management