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Sales opportunity in management

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Part II SALES FORCE ACTIVITIES Chapter 3: Sales Opportunity in Management Sales Opportunity Management Generating New Accounts Managing Existing Accounts Sales Versus Profits Personal Time Management Generating New Accounts What Creates Satisfied Customers? Mergers and Acquisitions 10% Introducing New Products 42% 15% Acquiring New Customers 42% Increasing Business with Existing Customers Prospect Profile Disposable Medical Supply Distributor  Multiple-practice physician office  Internal medicine, family practice  Suburban location  New practice less than years  Good credit history  Currently purchases from a full-service distributor Siebel Systems, Inc.: Opportunity Assessment Is There an Opportunity? Customer’s Application or Project Customer’s Business Profile Customer’s Financial Condition Access to Funds Compelling Event Developing a Prospect List Direct Inquiry Advertising Direct Mail Trade publications Trade shows Directories – Thomas Register Referrals Cold Canvassing Qualifying Prospects Needs for your products/services Authority to make purchase Credit rating & ability to pay Rating scale applied to characteristics by each salesperson Siebel Systems, Inc.: Assessing the Opportunity Is There an Opportunity? Can We Compete? Customer’s Application or Project Formal Decision Criteria Customer’s Business Profile Solution Fit Customer’s Financial Condition Sales Resource Requirements Access to Funds Current Relationship Compelling Event 10 Can We Win? Unique Business Value Is it Worth Winning? 11 Inside Support 16 Short-Term Revenue 12 Executive Credibility 17 Future Revenue 13 Cultural Compatibility 18 Profitability 14 Informal Decision Criteria 19 Degree of Risk 15 Political Alignment 20 Strategic Value Managing Existing Accounts Is the account too small? Sales Opportunity Management Selected Break-Even Results Industry Business Services Chemicals Construction Electronics Food Products Instruments Machinery Office Equipment Printing/Publishing Rubber/Plastics Breakeven 1,096.37 15,474.67 9,730.00 433.25 6,580.00 11,629.13 1,580.77 616.67 3,811.61 41,662.14 Now what? Setting Priorities? Methods for Setting Account Priorities  Single-Factor Model  Portfolio Models  Decision Models  Sales Process Models ABC Account Classification (Single Factor Model) # of Accounts (1) Total Accounts (2) Sales (000) (3) Total Sales (4) Total Calls per Classif (5) A 21 15% $910 65% 105 $8667 B 28 20% $280 20% 140 $2000 C 91 65% $210 15% 455 $462 700 $2000 (Avg.) Account Classif Totals 140 100% $1400 100% Sales ($) per Call (6) Portfolio Model Competitive Position High Account Opportunity Strong Weak Core Accounts Growth Accounts  Accounts are Very Attractive  Invest Heavily in Selling Resources Drag Accounts Low  Accounts are moderately Attractive  Invest to maintain current competitive Accounts are Potentially Attractive May Want to Invest Heavily Problem Accounts Accounts are Very Unattractive Minimal Investment of Selling Resources 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 Number of Sales Calls Per Month How Dell Achieves Selling Efficiencies (Example of Sales Process Model) Traditional Model 100,000 Catalog Drops Internet Model 100,000 Website Visits 5,000 Calls 10,000 Calls 2,000 Orders 500 E-Orders 1,750 Orders .. .Sales Opportunity Management Generating New Accounts Managing Existing Accounts Sales Versus Profits Personal Time Management Generating New Accounts What Creates... 14.8 Machinery 68.50 3.0 11.3 Office Equipment 25.00 3.7 2.4 Printing/Publishing 70.10 4.5 22.2 248.20 4.7 3.6 Industry Business Services Rubber/Plastic Cost per Call Sales Opportunity Management. .. an Opportunity? Customer’s Application or Project Customer’s Business Profile Customer’s Financial Condition Access to Funds Compelling Event Developing a Prospect List Direct Inquiry Advertising

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