MKT340 Exam 3 Study Guide/Textbook Guide
MKT340 Exam 3 Study Guide/Textbook Guide MKT340
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This 10 page Study Guide was uploaded by Jessica Koenig on Saturday October 10, 2015. The Study Guide belongs to MKT340 at University of Miami taught by Mr. Scharf in Winter2015. Since its upload, it has received 115 views. For similar materials see Professional Selling in Marketing at University of Miami.
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Date Created: 10/10/15
Ch 2 Forecasting Market potential estimate of maximum demand in a time period based on the of potential users and their purchase rate actual sales are usually less than this Company Sales potential portion of total industry demand max amount a firm can sell under optimum condition Estimating potentials based on possible of users amp max expected purchase rate Use secondary Sources Buying Power Index help managers allocate selling efforts across geographic regions Sales Forecasting predicting future levels of demand Sales Force Composite sales people project volume for customers in their own territory used more often Jury of Executive Opinion uses judgment of a group of experienced managers to give sales estimates for proposed and current products Leading Indicators Changes in a series 0 When should qualitative forecasting methods be used 0 when there s little numerical date to incorporate into your forecasts 0 new products Quantitative Sales Forecasting based on analysis of historical data to predict future sales 0 Seasonal Adjustments Naive Forecasts simplest numerical forecasting technique and is often used as a standard for comparison with other procedures Mape mean absolute percentage error easy comparison 0 Moving Averages average revenue achieved in several recent periods is used as a prediction of sales in the next period 0 assumes the future will be an average of past achievements 0 issue that all time periods are weighted equally so the oldest and most recent periods are treated the same in making a forecast o Exponential Smoothing emphasizes recent information and systematically discounts old information Time Series Regression the relationship bn sales and a period of time can be represented by a straight line 0 nding best t line 0 limitation the assumption that sales follow a linear pattern also knowing how much past data to include in the calculation of the forecast Multiple Regression use when sales seems to be associated with several independent variables 0 computer model is used by choosing variables like leading factors Turning Point sudden change in a trend Ch 7 0 Job Analysis systematic way to describe how a job is to be performed as well as the tasks that make up the job 0 procedures job analysis interview indepth interviews are conducted with mgt and salespeople observer into the eld to record the diff in amt of time higher and lower performing salespeople spend talking to customers traveling record keeping setting up displays and attending meetings 0 job Description uses information from the job analysis to produce a written document that spells out the job relationships and requirements that characterize each sales position 0 components 1 explains to whom the salesperson reports 2 how the salesperson interacts with other staff marketing people 3 the customers to be called on by the salesperson 4 speci c tasks to be carried out 5 the mental and physical demands 6 types of products sold 0 focuses on activities and responsibilities ofjob Job Quali cations refer to the aptitudes skills knowledge and personality traits necessary to perform the job successfully Recrutiing Classi ed Ads Present Employees Networking Employment Agencies Universities Best source Applications collect personal history data Interviews 0 patterned interviews type of interview in which sales manager asks each prospect a set of questions and records the responses on a form adv structured facilitates comparison of candidates good for an inexperienced interviewer 0 semistructured interviews intended to gather critical pieces of information and candidate is expected to take a more active role in the direction an interview takes 0 eld observation includes taking candidates out to observe a day of eld sales work prospect travels with salesperson see what job entails a followup using form a Background and Credit Checks use credit checks to assess n responsibility of applicants 0 Testing provide more objective information 0 1 Intelligence Tests measure the degree to which a candidate has the minimum mental capabilities to perform the job cognitive ability tests wonderlic personnel test 0 2 Personality Tests evaluate prospect based on numerous personality traits Edwards Personal Preference Schedule 0 3 Aptitude Tests designed to determine whether a candidate has an interest in certain tasks and activities Ch8 Sales Training 0 Increased Productivity 0 Reduced Turnover o turnover ratio of the number of people who leave to the average size of the sales team 0 training reduces salesperson role ambiguity Improved Customer Relations 0 better morale 0 self con dence and enthusiasm 0 improved time and territory ef ciency Planning for Sales Training involves three processes o 1 Assessing Sales Training Needs 0 a training needs analysis a process for determining where problems and opportunities exist and whether training can best address the issue review of firm s strategic objectives mgt observation and survey of salespeople used to identify shortcomings to target for future training customer input and customer informationquestionnaires and a review of company records 0 company records 0 crosstabulating examining performance by certain sales force characteristics such as years of experience geographic area or area of specialization 2 Setting Objectives est and put in writing 0 speci c enough and measurable o 3 Setting a Training Budget Developing the Training Program 0 Training Topics depends on the products sold purpose background of trainees 0 Product Knowledge most companies devote a signi cant amount of time presenting product information 0 Selling cognitive selling scripts script knowledge an expert possesses based on remembered similar experiences experts posses two types of knowledge 0 1 declarative knowledge permits them to recognize a selling situation requiring a somewhat unique selling process 0 2 procedural knowledge consists of the processes or sequence of behaviors that are necessary to achieve a successful conclusion in a particular sales situation improving teamwork customer and market information company orientation technologybased selling skills changes in technology and the marketing environment are driving new sales force automation sfa products and new sales training topics 0 other topics such as time and territory management 0000 0 Where to Train o Centralized v Decentralized Training Centralized Training occurs when all the sales people to be trained are brought to one central location adv quality consistent training disadv costly timeconsuming Decentralized Training in eld or regional sales of ces which moves the learning process closer to customers and directly involves eld sales management adv reduces travel expense can see top performers and learn from them disadv sales managers are so busy supervising the existing sales force that they fail to take the time needed to train new recruits 0 also sales managers whose income is based on a percentage of their salespeople s commissions called commission overrides are likely to be most concerned about current income and may give training of new employees a low priority Field Training on the job training 0 most widely used method of sales training for new recruits Who Should Train 0 Staff Specialists disadv lack experience in realistic eldselling situations 0 Outside Specialists variety inspiration and excitement they can bring to the training program I disadv may be unfamiliar with a company s selling situation 0 Line Executives usually sales managers and top performing salespeople adv these people have successful sales backgrounds disadv not trained in how to communicate information to a group of people in classroom setting Evaluating Sales Training 4 levels 0 1 reactions 0 are trainees satis ed with training improve parts they don t like 0 2 learning 0 acquisition and retention of declarative knowledge know what and procedural knowledge know how 0 did training change attitudes and increase knowledge this usually requires testing before and after training 0 3 behavior o are salespeople using their knowledge on the job this may be measured in a variety of ways 4 results 0 what effect does the training have on the company Ch9 Leadership Leadership the ability to in uence and inspire the actions of people to accomplish worthwhile goals 0 innovate develop inspire ask what and why longterm view challenge the status quo do the right things Skills of Effective Leaders 0 ve important skills empowerment sharing power with others intuition ability to anticipate change and take risks selfunderstanding a willingness to receive and understand both positive and negative feedback from others vision ability to conceive what may affect a business in the future value congruence a skill achieved when everyone in the organization is striving for the same business objectives Using Power Effectively 0 Power the ability to in uence the behavior of others 0 Five Sources of Power 1 Legitimate Power based on the manager s position in the organization 2 Reward Power relies on a leader s ability to reward subordinates for outcomes they value 3 Coercive Power leads to compliance due to fear of punishment eg salespeople who believe that they could be red will spend extra time prospecting for new customers 4 Referent Power the leader s in uence on others because of friendship with the leader 5 Expertise Power based on the perception that a manager has special knowledge usually based on past success salespeople tend to be more committed to a manager s request when they feel a sales manager is particularly knowledgeable and makes good decisions and suggestions expert power and when they identify closely with the sales manager referent power Transformational Leadership motivates salespeople by appealing to higher ideals and moral values so that they are motivated to exceed performance expectations 0 more strongly related to salesperson performance than other styles 0 transform people by making them more aware of and accepting of the goals of the organization 0 charismatic leaders Situational Leadership model four types of leadership styles based on two characteristics directive and supportive behavior 0 directive behavior extent to which a leader engages in oneway communication spelling out what where when and how to do it performance is closely supervised and controlled by the leader 0 supportive behavior extent to which leader engages in 2way communication involving listening and providing support and encouragement leader is exible to adapt to changing situations 0 4 Leadership Styles 1 Telling Style when manager provides a LOW SUPPORTIVE HIGH DIRECTIVE behavior managers tell a salesperson what when how and where to do various tasks 2 Selling Style high supportive high directive great deal of direction of their own ideas but also solicit salespeople s ideas 3 Supportive Style highly supportive low amounts of directive allows salesperson to share in decision making 4 Delegating Style low supportive low directive focus of interaction is to reach agreement on cause of problem but control of how to deal with problem is left to salesperson Ch11 Motivation Individual s Willingness to exert effort to achieve the organizations goals While satisfying individual needs 1 Drive to initiate action on a task 2 Quality of effort on a task 3 Persistence to expend efforts o Theories O Hierarchy of Needs Abraham maslow ERG Theory Clayton P Alderfer hierarchically classi es needs as existence relatedness and growth needs Motivationhygience Frederick Herzeberg argues that instrinsic job factors motivate whereas extrinsic factors pay only placate employees Theory of learned needs David McClelland proposes that there are 3 major professional needs l achievement affiliation and power Equity Theory J Stacy Adams proposes that people will evaluate their treatment in comparison tot hat of quotrelevant othersquot and that motivation will suffer if treatment is perceived to be inequitable Personality Types Competitor satisfaction from beating rivals verbalize then do it EgoDriven they just want to win like to be experts take things too personally and changes jobs frequently Achiever completely selfmotivated high goals like accomplishment ServiceOriented strengths lie in building and cultivating relationships 0 Career Stages 0 0 Exploration Stage nding the right occupation stress lower performance Establishment Stage change focus from searching for best occupation to committing themselves to getting ahead in their current jobs long hours to improve performance Maintenance Stage reassessment of their careers longest phase introduce rewards for meeting and mastering new challenges Disengagement Stage withdrawing from career giving greater priority to issues other than work and career Effort lexpectancy Performance lnstrumentality Rewards Valence EffortPerformance Relationships Expectancy salesperson s belief that greater effort will lead to greater performance Attribution Theory suggests that people are motivated to generate reasons for why an event occurred esp when the outcome is unexpected or unfavorable 0 the type of attributions in uence how we respond to the situation 0 PerformanceReward Relationship belief that higher level of performance will lead to greater personal rewards 0 Importance of Rewards Reward Valence how much salespeople desire a particular reward I compare their rewards with other people 0 equity theory people make inputs effort experience territories versus outcomes comparisons with relevant others to determine relative equity SelfManagement o Intrinsic Motivation motivation to engage in an activity for its own sake Behavioral SelfManagement BSM encourages intrinsic motivation consists of a series of steps involving monitoring goalsetting rehearsal rewards and selfcontracting 2st Quotas quantitative goals assigned to individual salespeople for a speci ed period of time o appr 85 of US companies use some type of quota system for their salespeople Five Reasons for Establishing Quotas o 1 to help management motivate salespeople o 2 to direct salespeople where to put their efforts 0 3 to focus management attention 0 4 to measure salesperson accomplishment o 5 to provide a standard for evaluation 0 Types of Quotas 0 Sales Volume Quotas speci c volume targets established for each territory and possible for each product line for a speci c period of time o Pro tBased Quotas similar to sales quotas but focus on pro ts generated instead of just sales volume usually not based on bottomline pro ts but on gross margin most likely to be used when salespeople make decisions that dramatically affect the pro ts of the company 0 Activity Quotas set targets on speci c activities that will help meet a rm s sales and pro t objectives eg number of calls per day display racks installed and calls on new accounts adv based on behavior that are largely under the salesperson s control disadv the information necessary to track activities in obtained from a salesperson s call reports 0 When are Quotas Effective Goal Theory examines rel bn goal setting and subsequent performance proposes that difficult goals will lead to higher performance than moderateeasyno goals salespeople internalize performance goals for two reasons 0 higher performing salespeople have a need to demonstrate competence and gain favorable judgments from others 0 they work to avoid negative evaluations ie fear of failure for goal setting to be effective management must be concerned with providing feedback gaining goal commitment and building selfcon dence o Administering Quotas l past amp forecasted sales compute sales potential in each territory 0 When not to use quotas l when a signi cant portion of sales depends on cooperation between salespeople in different territories or when sales are infrequent with a long selling cycle but dollar value is high Incentive Programs 0 Incentive Programs shortterm promotional events intended to inspire salespeople to a greaterthanusual performance level and provide them with rewards o proven motivational device with widespread acceptance Recognition Programs 0 Recognition Programs similar to incentives in that individualgroup receives award for exceptional performance yet the primary award is recognition by management not monetary and it is also much longer as a focus on overall performance
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