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Study Guide for Exam 3

by: Eric Mendelson

Study Guide for Exam 3 MKTG 451 300

Marketplace > Towson University > Marketing > MKTG 451 300 > Study Guide for Exam 3
Eric Mendelson
GPA 3.68

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About this Document

The study guide Professor Peev used for exam 3 for Spring 2016. This study guides goes into great detail about a lot of topics.
Topic: Sales Strategy
Dr. Plamen Peev
Study Guide
sales management, CustomerRelationships, self-leadership, Teamwork
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This 7 page Study Guide was uploaded by Eric Mendelson on Tuesday June 7, 2016. The Study Guide belongs to MKTG 451 300 at Towson University taught by Dr. Plamen Peev in Spring 2016. Since its upload, it has received 21 views. For similar materials see Topic: Sales Strategy in Marketing at Towson University.


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Date Created: 06/07/16
Chapter 9: Expanding Customer Relationships  Four sequential components of effective follow-up o Interact- Salesperson acts to maximize the number of critical encounters with buyers in order to encourage effective dialogue and involvement between salesperson and buyer o Connect- Salesperson maintains contact with the multiple individuals in buying organization influencing purchasing decisions and manages various touch points the customer has in selling organization to ensure consistency in communication o Know- Salesperson coordinates and interprets the information gathered through buyer-seller contact & collaboration to develop insight regarding buyers changing situations, needs, expectations o Relate- Salesperson applies relevant understanding and insight to create value-added interactions and generate relationships between salesperson and buyer  Relationship enhancement activities- salesperson responsibility o Provide useful information- Relevant, timely, high quality o Expedite orders/monitor installation- track orders, help install o Train customer personnel- Train even when contract does not call for it o Correct billing errors- go over all orders, correct problem before customer sees it o Remember customer after sale- Set up regular call schedule o Resolve complaints- Prevent need to complain, ask customers how they want resolved  Critical encounter- Meetings in which salesperson encourages the buyer to discuss tough issues, especially in areas where salesperson’s organization is providing less-than-satisfactory performance.  6 steps to handle complaints o Build relationship to the point that the customer is comfortable complaining o Listen carefully and get the whole story o Ask customer what they would like you to do o Gain agreement on solution. Focus on what you CAN do o Take action, educate customers so they have realistic expectations o Follow through on all promises-adds value  Ways to commit lifetime customers o Build goodwill by continually adding value to product through follow ups o Handling complaints in a timely/thoughtful manner o Processing requests for rush deliveries willingly and assuring customer you’re doing what you can do  Customer expectations of salespeople o Warmth and friendliness o Reliability o Helpfulness/assistance o Follow-through o Resolution of complaints/mistakes o Speed/promptness o Assurance o Accuracy o Empathy  Checklist for developing a service strategy o What is our business? o Who are our customers? o What do our customers want/what’s important to them? o How are customers’ needs changing? o How are social, economic, and political factors affecting current customer needs?  Customer Service Dimensions o Communication- A two-way flow of information between salesperson and customer. Problems arise because customer not informed. This is the most important dimension. o Resilience- The ability of a salesperson to get knocked down several times a day by customer’s verbal assault, smile and ask for more. o Service Motivation- The desire of a salesperson to serve customers every day.  Service Quality- Meeting and/or exceeding customer service expectations. Strategy to acquire and maintain customers. o 4 benefits of service enthusiasm  Reputation- Good reputation helps salesperson distinguish themselves  Good customer service- First visit, organizations make profit. Efficient operations, cost savings, doing things at the right time help create profit  Convenience- Important to customer convenience first. Be readily accessible to customers via technology (cell phone, email), user friendly feedback systems  Spirit- Enthusiasm, service-minded. Consistency is difficult  Importance of managing customer expectations o Salespeople must establish high standards and expectations o Ensure customers’ expectations are reasonable by soliciting customer expectations, clearly and honestly conveying offering and improving performance o Monitor and take action to improve customer satisfaction (fix problems before they arise) Chapter 10: Self-leadership and teamwork  Self-leadership- The process of guiding oneself to do the right thing and do them well (working smart). Strategic application of effort honed with one’s goals.  5 steps of self-leadership o Setting goals and objectives- Properly developed goals. o Territory analysis and account classification- Finding the customers and prospects most likely to buy. Information can be found on internet. o Development and implementation of strategies/plans- Establish and implement selling task and activity plans (sales goals, expense budgets).  Yearly plan  Quarterly plan  Monthly plan  Weekly plan o Technology- Portable computers & smartphones (Mobile CRM apps, presentation capabilities). Deal analytics- “smart” CRM app tools that analyze historical customer behavior data to identify future opportunities. Also used to compare offerings. o Assessment of Performance and Goal attainment- Plan for periodic checkpoints, compare projected and actual performance.  Characteristics of good sales goals o Realistic, yet challenging o Specific and quantifiable o Time specific  Six teamwork skills o Understanding the other individuals o Attending to the little things o Keeping commitments o Clarifying expectations o Showing personal integrity (shows trust) o Apologizing sincerely when a mistake is made  Territory routing plans o Straight line- Salespeople start from their offices and make calls in one direction until they reach the end of the territory o Cloverleaf- Salesperson works a different part of territory and travels in a circular loop back to the starting point o Circular- Salesperson begins at the office and moves in expanding pattern of concentric circles that spiral across territory o Leapfrog- Salesperson begins in one cluster and works each of the accounts at that location and then jumps to the next cluster o Major city- Used when the territory is composed of major metropolitan areas and territory is split into series of geometric shapes reflecting each one’s concentration and pattern of accounts  Levels and types of sales goals o Personal- Salesperson’s individual desired accomplishments such as achieving desired annual income over a specific period of time. o Territory- Salesperson’s desire of selling a certain amount of product within an area or territory in order to achieve a personal goal. o Account- Salesperson’s desire of selling a certain amount of product to one customer or account in order to achieve territory & personal goals. o Sales call- Salesperson’s desire of selling a certain amount of product per each sales call in order to achieve account, territory and personal goals.  Intranet- Networks within organization using the Internet or commercial channels to provide direct linkages between company units & individuals.  Extranets- Special form of intranet that is still proprietary and restricted use but links to specific suppliers & customers to allow them controlled and secure access to organization’s network.  CRM system- A system that dynamically links buyers and sellers into a rich communication network to establish and reinforce long-term, profitable relationships.  Salesplanning o Results in a schedule of activities that can be used as a map for achieving objectives o Long term plan spans 6-12 months o Highlights commitments and deadlines and facilitates setting up activities to meet deadlines o Provides basis for shorter time frame plans  Account classification- Places existing customers and prospects into categories based on their sales potential and assists salespeople in prioritizing accounts for call planning and time allocation purposes. 80-90% of sales potential comes from 10-20% of accounts.  Synergy- Interaction of 2 or more organizations to produce a combined effect greater than the sum of separate effects. Chapter 11: Sales Management and Sales 2.0  Four stages of sales management process o Defining the strategic role of the sales function  Salesforce structure, sales strategies o Developing the salesforce  Recruiting and selecting sales talent  Establishing training strategies/programs o Directing the salesforce  Setting salesforce goals & objectives, implementing incentive programs, overseeing and coaching salesforce o Determining salesforce effectiveness and performance  Establishing and administering evaluation measures and systems- provides feedback  Account targeting- Classification of accounts within a target market into categories for the purpose of developing strategic approaches to sell to each group.  Relationship selling- A determination of the type of relationship to be developed with different account groups.  Sales channel strategies- Ensures accounts receive proper selling effort and coverage. Strategies include company salesforce, Internet, distributors, independent representatives, team selling, telemarketing and trade shows.  Firm’s selling strategy should develop a specific approach for selling to individual accounts within a target market.  Sales structures o Specialization- Each person performs selling tasks, manager does all management activities. Allows individuals to be experts on tasks. o Centralization- Authority and responsibility are placed at higher levels. o Span of Control- Number of individuals who report to each sales manager. Larger span of control = more salespeople the sales manager must manage  Flat- Few sales management levels, manager has larger span of control  Tall- More sales management levels, smaller span of control  Alternate bases for organizing salesforce o Geographic  Advantage- Low cost, no geographic/customer duplication  Disadvantage- limited specialization, lack of management control over product emphasis o Product  Advantage- Salespeople become experts in product attributes, management has control over selling efforts  Disadvantage- High cost, geographic/customer duplication o Market  Advantage- Salespeople develop better understanding of unique customer needs  Disadvantage- Management control over selling effort allocated to different markets o Functional  Advantage- Efficiency in performing selling activities  Disadvantage- Geographic/ customer duplication, need for coordination  Guidelines for recruiting o Don’t wait until you need someone to hire them (should be an ongoing activity) o Manager/who person reports to should be involved o Never use one avenue to promote o Have a profile of an ideal employee-takes out emotions o Pay enough money for these people to live comfortably during training o Prepare questions o Test and profile candidates o Never hire based on resume  Sales leadership approaches o Leadership style- A general orientation applied to leadership activities o Transactional style- Relies heavily on use of rewards & punishments, based on performance. o Transformational style- Concentrates on inspiring employees to engage in certain behaviors and to perform at high levels. Include articulating a vision, leading as a role model, encouraging intellectual stimulation and group goals.  Sales training process o Assess sales training needs- needs assessment determine what skills workers possess o Set training objectives- specific, measurable, attainable o Evaluate training alternatives- Evaluate options. Criteria includes cost and time constraints o Design sales training program- Committing resources so previous steps can be done o Conduct follow-up and evaluation- Feedback, exams, observations  Sales 2.0- Use of customer- driven processes enabled by the latest Web 2.0 technologies to co-create value with customers. o CRM- Offerings have evolved from large software installations at individual firms to Web-based products using a software-as-a-service model o Makes it available to sales organizations of all sizes o 2ndtrend is commercial open-source model (customize software to meet customer needs) o 3 trend CRM vendors provide wireless access by salespeople and managers from smartphones  Directing the Salesforce o Sales leadership- Activities that influence others to achieve shared goals to advance the organization o Supervision- Working with subordinates on an going basis o Motivation- Has 3 dimensions  Intensity- Amount of mental and physical effort salespeople expend  Persistence- Salesperson’s ongoing choice to expend effort (when faced with adversity)  Direction- Recognizes that salespeople may make choices about how they spend their time on the job o Rewards- Salaries, bonuses, commissions, recognition  Dimensions of Motivation o Motivated by pay and formal recognition programs o Can develop or modify reward system o Reward system should be consisted with employers financial objectives and strategic priorities  Types of Power o Legitimate o Coercive o Reward o Expert o Referent  Outcome-based evaluations- Focus on actual results salespeople archive. Evaluation includes total sales volume, current year’s sales compared to last years, and increases in sales volume, sales volume by product line, and sales volume per customer. One challenge is outcomes by themselves do not reflect the differing situations faced by salespeople.  Behavior-based evaluations- Consist of criteria related to activities salespeople perform. Criteria includes activities, directly related to generation of sales as well as non-selling activities. Most common sales behaviors include number of sales calls, number of sales calls per day and completion of administrative requirements (submit reports).  Evaluating Salesperson performance o 360-degree feedback- Involves performance assessments from multiple sources having a relationship with the salesperson. Could be sales managers, internal & external customers and salesperson. o Performance management- Involves sales managers and salespeople working together on setting goals, giving feedback, reviewing and rewarding. Salespeople participate in setting realistic quotas and budgets, create own development plan and assume responsibility for their careers.  4 stages o Manager and salesperson discuss evaluation. o Sales manager rates the salesperson according to predetermined criteria to see if person is above/below expectations. o Review salesperson’s performance relative to previous evaluations to find accomplishments/room for improvement. o Focus on future. Mutual agreements are reached, action plans for improvement, resources and training.


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