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Learning Objectives
Explain what the sales function consists of and
how salespeople affect a firms supply chain
Identify the various channels in which the sales
function can be carried out
Explain how effective sales management efforts
can align a firms sales strategy in a multichannel
environment
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Active
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Multichannel Environment
Using a number of methods, or channels, to accomplish
the selling function
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EDS must
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Outsourcing
Hiring another company to carry out a task or set of
tasks
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Advantages of Company-Employed
vs. Outsourced Sales Force
Company-Employed
Company can exert greater
control over their efforts
Greater control over who is
hired
Focus on only the companys
products, whereas an
outsourced representative
might be free to sell many
companies products
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Outsourced
Firms selling costs can be
shared with other
manufacturers, reducing cost
per sales call
Established relationships with
customers from which the
manufacturer can benefit
These can yield greater
coverage of the market for the
manufacturer
Distributor
Broker
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Types of Company-Employed
Salespeople
Inside
Salesperson
Field
Sells at the customers location
Representative
Account
Manager
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Types of Company-Employed
Salespeople (continued)
Vertical Market
Accounts all operate in the same industry
Rep
Retail Sales
Rep
Trade Rep
Missionary
Salesperson
(detail rep)
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More on Outsourcing
Can outsource Call Centers
Can outsource parts of the sales cycle
To different sales organizations
Often used to
Enter new markets
Keep costs variable (no overhead)
Leverage market coverage costs (share with others)
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Seamless Integration
Seamless integration: a firms
customers can easily shift
transactions across various
channels
Goal: all areas have all the
customer information they
need so the customer is
treated properly
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Alignment
Getting all of functional areas of a firm to work together
This includes the companys various salespeopleits inside
reps, geographic reps, customer service reps, etc.
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Alignment
Alignment occurs at 3 levels
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Areas to Align
Technology
CRM system
used by
salespeople
also supports
marketing
Processes
and Goals
Lead
management
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Sales
Metrics
Marketing &
sales have
same sales
targets for a
new product
Self-Assessment Library
Go to http://www.prenhall.com/sal/
Access code came with your book
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Sandy
Develop particular sales format (phone, field, etc.)
List advantages for that format
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Caselet 2.1:
Hereford Promotions
Promotional products company with 3 sales
people
In past year, sales up 8%, but customer
complaints have doubled
In past quarter, 12 new customers, 15 lost
Companys net income averaging
~$1000 / month
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Company averages 40
large customers per
salesperson
Large customer bills
$20,000 / year
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Caselet 2.2:
Marchetti Machines, Problem 1
Salesperson Frank McCaslin is close to landing a
large account, one of the biggest sales of the year
Accounts CFO plays golf with Marchetti service
manager Louis Ruggieri
Ruggieri says the service team hates to work on
the system Frank proposed
Accounts CFO emails, if that is the case, were
going to have to open our search up to some other
companies to try to find something more reliable
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