Part IIPart II
SALES FORCE SALES FORCE ACTIVITIESACTIVITIES
Part IIPart II
SALES FORCE SALES FORCE ACTIVITIESACTIVITIES
Chapter 3:Chapter 3:
Sales Opportunity Sales Opportunity ManagementManagement
Sales Opportunity Management
GeneratingNew
Accounts
ManagingExistingAccounts
PersonalTime
Management
Sales VersusProfits
Developing a Prospect List
1. Direct Inquiry1. Direct InquiryAdvertisingAdvertising
Direct MailDirect Mail
Trade publicationsTrade publications
Trade showsTrade shows
2. Directories – Thomas 2. Directories – Thomas RegisterRegister
3. Referrals3. Referrals
4. Cold Canvassing4. Cold Canvassing
Qualifying Prospects
1.1. Needs for your products/servicesNeeds for your products/services
2. 2. Authority to make purchaseAuthority to make purchase
3. 3. Credit rating & ability to payCredit rating & ability to pay
4. 4. Rating scale applied to Rating scale applied to
characteristics by each characteristics by each
salespersonsalesperson
Table 3-1 Computing the Cost per Call for an Industrial Products Salesperson
CompensationCompensation
Salary, commissions, and bonus $69,035
Fringe benefits (hospital, life insurance, social security) $10,985 $80,020
Direct Selling ExpensesDirect Selling Expenses
Automobile 8,000
Lodging and meals 6,250
Entertainment 3,250
Communications 4,500
Samples, promotional material 1,750
Miscellaneous 1,700 25,450
Total Direct Expenses $105,470
Calls Per YearCalls Per Year
Total available days 260 days
Less:
Vacation 10 days
Holidays 10 days
Sickness 5 days
Meetings 18 days
Training 12 days 55 days
Net Selling Days 205 days
Average calls per day 3 calls
Total Calls per Year (205 X 3) 615 Calls
Average Cost per Call ($105,470/615)Average Cost per Call ($105,470/615) $171.50
Table 3-2 Sales Force Costs Across Selected Industries
Industry Sales Force Costs as A Percentage of Sales
------------------------------------------------------------------------------------------------Banking 0.9%Business services 10.5Chemicals 3.4Communications 9.9Construction 7.1Electronic components 4.9Electronics 12.6Fabricated metals 7.2Food products 2.7Instruments 14.8Machinery 11.3Manufacturing 6.6Office equipment 2.4Paper/allied products 8.2Pharmaceuticals 5.6Printing/publishing 22.2Rubber/plastics 3.6Wholesale (consumer) 11.2
Sales Opportunity ManagementKey to Productivity
Breakeven Sales VolumeBreakeven Sales Volume
(Cost per Call) x (Number of Calls to Close)
Sales Calls as a % of Sales
How Dell Achieves Selling Efficiencies
Traditional ModelTraditional Model Internet ModelInternet Model
100,000Catalog Drops
100,000Catalog Drops
10,000Calls
10,000Calls
2,000Orders
2,000Orders
100,000Website Visits
100,000Website Visits
5,000Calls
5,000Calls
500E-Orders
500E-Orders
1,750Orders
1,750Orders
Table 3-3: ABC Account Classification
No. ofNo. of TotalTotal SalesSales TotalTotal Total callsTotal calls Sales ($)Sales ($)
AccountAccount Accts.Accts. Accts.Accts. (000)(000) SalesSales Per Classif.Per Classif. Per CallPer Call
ClassificationClassification (1) (1) (2) (2) (3) (3) (4) (4) (5) (5) (6) (6)
AA 21 21 15% 15% $910 $910 65% 65% 105 105 $8,667 $8,667
BB 28 28 20 20 280 280 20 20 140 140 2,000 2,000
CC 9191 6565 210210 1515 455455 462462
TotalsTotals 140 140 100%100% $1,400$1,400100%100% 700 700 $2,000 $2,000
Core Accounts
Accounts are veryattractive.
Invest heavily in sellingresources.
Core Accounts
Accounts are veryattractive.
Invest heavily in sellingresources.
Drag Accounts
Accounts are moderatelyattractive.
Invest enough to maintaincurrent position.
Drag Accounts
Accounts are moderatelyattractive.
Invest enough to maintaincurrent position.
ProblemAccounts
Accounts are veryunattractive.
Minimal investmentof selling resources.
ProblemAccounts
Accounts are veryunattractive.
Minimal investmentof selling resources.
GrowthAccounts
Accounts are potentiallyattractive.
May want to investin heavily
GrowthAccounts
Accounts are potentiallyattractive.
May want to investin heavily
Competitive Position
Strong Weak
Acc
ount
Opp
ortu
nity
High
Low
Figure 3-1: Portfolio Model
Dol
lar
Sal
es p
er Q
uart
er
Number of Sales Calls Per Quarter
$20,000
$10,000
1 2 3 4 5 6
Figure 3-2: Number of Sales Calls Response Function
Unqualified
Qualified
Best few
50% closure probability
75% closure probability
90% closure probability
2113 15 2322 18
24 2019 17
16 14
9 12
1011
8
7 5
6
3
1 2
4
Figure 3-3: The Sales Funnel
13%
29%16%
17%25%
SellingFace-to-Face
Service Calls
AdministrativeTasks
Waiting andTravel
Figure 3-4: How Salespeople Spend Their Time
Selling overthe phone
EmergenciesEmergencies
Personal Growth
Personal Growth
TimeWastersTime
Wasters
RecreationRecreation
Importance High Low
High
LowUrg
ency
Figure 3-5: Time Management
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