NATIONAL ECONOMICS UNIVERSITY MARKETING DEPARTMENT MIDTERM TEST SUBJECT: SALES MANAGEMENT Class: QT Marketing CLC 60A Full Name: Kim Hiếu Thảo Student Code: 11184522 Test Code: 02 Mentor: PGS.TS DINH THI OANH Hà nội, tháng năm 2021 What is the sales strategy? Analyze the connection between these contents in the sales strategy Give a detailed example to illustrate your knowledge about sales strategy ● Sales strategy definition A sales strategy is a plan by a business or individual on how to go about selling products and services and increasing profits Sales strategies are typically developed by a company’s administration, along with its sales, marketing, and advertising managers All involve “pitches,” or key points to address when speaking with potential consumers Some of these pitches, such as those used by telemarketers, may have to be memorized and communicated verbatim The goal is to lay out explicit guidelines and objectives for the sales organization to follow in order to maximize sales and ensure its sales force is on the same page An effective sales strategy involves identifying a target market, qualifying leads, and creating meaningful messaging that shows prospective customers the value of a product or service There are four basic sales strategy elements: Account targeting strategy, Relationship Strategy, Selling Strategy, Sales Channel Strategy ● The connection between these contents in the sales strategy The first element of a sales strategy is account targeting strategy This is the process used to find out who potential clients are and how the company can reach them in a way to bring awareness to their product or service This process also focuses sales and marketing resources on target accounts within a specific market Instead of broad-reaching marketing campaigns that touch the largest possible number of prospective customers, this strategy focuses resources for the book of business on a defined set of named accounts Then marketing focuses all of their resources, budget, and campaigns against the very specific list of target accounts to directly support the sales effort This strategy requires the precision of target accounts When organizations approach target account-based selling, it increases the probability that accounts become opportunities within an efficient, effective, well-managed, and repeatable process After the classification of accounts with a target market into critical risks, one important thing is a determination of the type of relationship to be developed with different account groups A specific relationship strategy is developed for each account group identified by an organization's account targeting strategy Therefore, relationship strategies, transactional, solutions, partnership, and collaborative relationships Each relationship strategy represents an increasing commitment between the buyer and seller, and a high cost to serve the customer Later, we will look at the relevance of the relationship strategy to the sales strategy A selling strategy is the planned selling approach for each relationship strategy There are five basic selling approaches such as stimulus-response, mental states, need satisfaction, problemsolving and consultative The stimulus-response and mental states approach typically fit with a transactional relationship strategy They need satisfaction and problem-solving Selling strategists are normally used to the solutions relationship strategy The consultative approach is most effective with partnership and collaborative relationship strategies Sometimes a collaborative relationship strategy requires a selling strategy that is completely customized to the specific buyer-seller situation The important point is that achieving the desired type of relationship in a productive manner requires using different selling strategies The next one is mental states selling or the formula approach to personal selling It assumes that the buying process for most buyers is essentially identical, which means that buyers can be led through certain mental states or steps in the buying process These mental states are typically referred to as AIDA, Attention Interest Desire, and Action A positive feature of this method is that it forces the salesperson to plan the sales presentation prior to calling in on the customer That's a method that needs satisfaction selling The salesperson uses a question probing tactic to uncover the importance the buyer needs Customer responses dominate the early portion of the sales interaction Only after relevant needs have been established, does a salesperson begin to relate how his or her offering can satisfy these needs The problem-solving approach typically requires educating the customer about the full impact of the existing problem It will be clearly communicated how the solution delivers significant customer value In this approach, the seller has to find a solution to the bias problem even if the solution is not currently in his company's product portfolio Another strategy is consultative selling It is the process of helping customers to reach strategic goals by using the products services and expertise of the sales organization Notice that this method focuses on achieving the strategic goals of customers not just meeting needs or solving problems Salespeople confirm their customer’s strategic goals and then work together with the customers to achieve these goals The sales channels strategy determines who your closest customer is or the seller interacts with, and how this channel affects relationships with the end customer Various methods are available to provide selling coverage to accounts including the company sales force, the Internet, industrial distributors, or independent representatives as well as teams selling telemarketing and trade shows A channel strategy is a determination of the type of channels to be developed with different account groups In combined channels, we are going to ask for each segment of customers the most suitable channel to provide the best way of selling and servicing There are two principal types of channels Channel of direct marketing without any intermediaries from salespeople contact directly the end customer It is common for the markets of producers of goods and services, so-called OEM or Original Equipment Manufacturers Another type is channel Swiss intermediaries such as dealers, distributors, and retailers The customer's name is a sale itself, but not the production In such analysis, it is important to understand what obligations we have for the end customer and how our relationship with him will be arranged by the number of intermediaries due to the geographical sales area Free types of distributions are considered Excluded distribution, only one intermediary in a given market selects a distribution with a limited number of intermediaries in a given market and intensive all of possible intermediaries in a given market ● Example of Coca Cola’s Sales Strategy - The largest customer: Supermarkets - The smaller customer: Universities - The prospective customer: Restaurants Restaurants: For example, McDonald’s is Coke’s largest restaurant customer, and the two companies maintain a unique, symbiotic relationship Those two companies helped each other grow and expand around the globe They operate exclusively together, Coca-cola sells its product to McDonald’s cheaper than they to any other restaurant and they often collaborate on projects Coca-cola makes products that you can only purchase at McDonald’s before putting them on other shelves They also have developed a unique delivery and quality system to build their relationship This unique delivery system is one of the key factors as to why people insist that coke at McDonald’s tastes better than it does anywhere else Coca Cola does not own McDonalds however the relationship and ultimate partnership between the two companies has been long and successful Coca-cola and McDonald’s have worked together since 1955 when McDonald’s was first getting started and when McDonald’s needed a beverage distributor Their relationship has only grown stronger since then The two companies have worked together to grow their empires to what they are today, globally recognised brands This partnership has served both companies well Coca-cola is the largest beverage company in the world and McDonald’s is the world’s leading fast-food company They operate exclusively together, Coca-cola sells its product to McDonald’s cheaper than they to any other restaurant and they often collaborate on projects Coca-cola makes products that you can only purchase at McDonald’s before putting them on other shelves They also have developed a unique delivery and quality system to build their relationship This unique delivery system is one of the key factors as to why people insist that coke at McDonald’s tastes better than it does anywhere else They work together in a mutual partnership To help McDonald’s expand worldwide, Coca-Cola often provides existing offices in different regions as a base of operation for McDonald’s to get up They managed to create and deliver excellent transformational value for both sides, mainly focusing on developing an integrated supply chain, and enabling rapid entry and large-scale expansion into new geographies The know-how and expertise from Coca-Cola benefits the product development of McDonald’s Supermarkets are highly convenient and popular among the citizens Coca Cola partnered up with Vin Mart or Big C so as to reach a huge number of potential consumers The company can have some form of agreements if customers buy in bulk regularly and initiate events to get to know these large customers Coca can invite target accounts to attend an event with the right amount of promotion, and a detailed plan with a sales team to secure attendance Understanding that these events are typically quite large, giving off a cocktail reception theme, the company has to make sure to prepare a plan for who the team needs to talk to at the event, and who can wait The goal of building this relationship is to drive sales with a long time frame and offering standardized products The number of customers of the supermarket is very large Partnership relationship is developed for the largest account namely supermarkets Conventionally, consultative selling approaches are most effective with partnership relationships Consultative selling is a sales approach that prioritizes relationships and open dialogue to identify and provide solutions to a customer's needs In universities, Coca Cola is mainly sold in water vending machines so the goal of this relationship is to sell products, short time frame, standardized offering and large number of customers Although the revenue is not large compared to the two accounts above, this is a potential market because the target customers are young people with great consumption demand and like to use convenient products The transaction relationship between Coca-Cola and universities is established In theory, mental states approaches typically fit with a transaction relationship strategy To specify, mental states selling assumes that the buying process for most buyers is essentially identical and that buyers can be led through certain mental states, or steps, in the buying process These mental states are typically referred to as AIDA (attention, interest, desire, and action) When applying this selling approach to the selling process, Coca Cola must make its account believe that their products are one of the best products to meet the demand with reasonable price How about the recruitment process flowchart? Focus on analyzing “the prepare a job description” step and give a practical example about “Job description” of the salesperson in the certain service industry A recruitment process includes analyzing the requirements of job vacancies, finding candidates, receiving their applications, and selecting the suitable ones to fill the positions An ideal recruitment process is a well-defined process that follows different phases to accomplish the candidate recruitment, which includes planning, setting job requirements, searching for suitable candidates, interviewing with management, negotiating, and getting the right candidate ● Analyzing “the prepare a job description” step Job Description is an organized factual statement of job contents in the form of duties and responsibilities of a specific job The preparation of a job description is very important before a vacancy is advertised It tells, in brief, the nature and type of job This type of document is descriptive in nature and it constitutes all those facts that are related to a job such as: - Title/ Designation of job and location in the concern - The nature of duties and operations to be performed in that job - The nature of authority- responsibility relationships - Necessary qualifications are required for the job - Relationship of that job with other jobs is a concern - The provision of physical and working conditions or the work environment required in the performance of that job * Purpose of the job descriptions The purpose of a job description is to establish clear communication between the Company and the staff members to assure that they have the same perception of the duties, functions, and measures of performance for a specific position No one is able to perform a job to the best of their ability unless they clearly understand exactly what the job entails By the same token, a written job description assures that the Company has deliberately analyzed the tasks that need to be done and who should complete them This, then, allows a supervisor or manager to more precisely explain expectations to the staff personnel The written job description provides a means for open communication between a supervisor and the people who report to him Discussion of the material contained in the job description will eliminate possible misunderstanding about what is expected The job description provides the basis for performance and, subsequently, for wage/salary review Discussion and documentation of performance, both positive and negative, must be related to the job description and needs to be as specific and objective as possible The individual's performance is evaluated by comparing actual performance to the standards of performance as defined in the job description Job descriptions provide the necessary information for hiring and promoting current staff members into vacant job slots A job description needs to be prepared for all new positions and reviewed and/or revised, if necessary, for current positions before advertising for or interviewing applicants This assists the hiring individual in the selection of the right person for the job * Darting job description All Job descriptions are to be prepared or revised in accordance with the following procedure and using the format as shown in section During the initial preparation or revision of job descriptions, all personnel will need to have explained to them the use and purpose of the job descriptions Since they are closest to the day-to-day work, they need to be polled as to their opinions and perceptions of what their duties and tasks are Supervisors and/or senior management are also to give their input as to what they intend for the position to accomplish Upon completion of the collection of duties and tasks lists from employees and managers, the person responsible for creating or updating the job descriptions will review and combine the information into one document for each position It is vital for successful performance that there be a clear understanding of what is expected of each position and how to achieve these results While the job description is not negotiated in the true sense of the word, it is produced in coordination with those concerned The completed job description is then passed to the President for approval * Advantages of Job Description - It helps the supervisors in assigning work to the subordinates so that they can guide and monitor their performances - It helps in recruitment and selection procedures - It assists in manpower planning - It is also helpful in performance appraisal - It is helpful in job evaluation in order to decide about the rate of remuneration for a specific job - It also helps in chalking out training and development programes ● A practical example about “Job description” of the salesperson Title of the job: HIRING | Retail Salesperson - Retail natural pet food and supplies store in Ha Noi Duties and responsibilities: - Try to figure out what a customer wants or needs by talking to or observing him or her - Tell customers about products' features and demonstrate their use - Explain the differences between different models of a product - Answer questions about products, services, and store policies - Inform customers about sales and promotions - Order customized or out-of-stock items - Prepare sales receipts or contracts - Process payments for purchases - Set up and maintain merchandise displays Technical requirement: - Superior people skills, including written and verbal communication and conflict resolution - Working knowledge of market and consumer requirements and dynamics - Proficiency of sales principles and customer service practices - Familiarity with point-of-sale software and systems - Prior experience in retail sales - Professionalism and personal cleanliness - Problem-Solving skill - Time Management Location and geographical: Ha Noi Degree of autonomy: - Work independently - Work under the pressure ... Order customized or out-of-stock items - Prepare sales receipts or contracts - Process payments for purchases - Set up and maintain merchandise displays Technical requirement: - Superior people skills,... resolution - Working knowledge of market and consumer requirements and dynamics - Proficiency of sales principles and customer service practices - Familiarity with point-of-sale software and systems -. .. in retail sales - Professionalism and personal cleanliness - Problem-Solving skill - Time Management Location and geographical: Ha Noi Degree of autonomy: - Work independently - Work under the