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Lecture Dalrymple's sales management: Concepts and cases – Chapter 3: Sales opportunity management

After studying this chapter, you should be able to: Describe effective steps for generating new accounts, explain how to determine the minimum opportunity a salesperson should pursue, describe four methods for setting opportunity priorities, explain why emphasis is shifting from sales volume to profit flow, tell how salespeople can manage their time more efficiently. | Part II SALES FORCE ACTIVITIES Chapter 3: Sales Opportunity Management Sales Opportunity Management Generating New Accounts Managing Existing Accounts Personal Time Management Sales Versus Profits Developing a Prospect List 1. Direct Inquiry Advertising Direct Mail Trade publications Trade shows 2. Directories – Thomas Register 3. Referrals 4. Cold Canvassing Qualifying Prospects 1. Needs for your products/services 2. Authority to make purchase 3. Credit rating & ability to pay 4. Rating scale applied to characteristics by each salesperson Table 3-1 Computing the Cost per Call for an Industrial Products Salesperson Compensation Salary, commissions, and bonus $69,035 Fringe benefits (hospital, life insurance, social security) $10,985 $80,020 Direct 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 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) $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 10.5 Chemicals 3.4 Communications 9.9 Construction 7.1 Electronic components 4.9 Electronics 12.6 Fabricated metals 7.2 Food products 2.7 Instruments 14.8 Machinery 11.3 Manufacturing 6.6 Office equipment 2.4 Paper/allied products 8.2 Pharmaceuticals 5.6 Printing/publishing 22.2 Rubber/plastics 3.6 Wholesale (consumer) 11.2 Sales Opportunity Management Key to Productivity Breakeven Sales Volume (Cost per Call) x (Number of Calls to Close) Sales Calls as a % of Sales How Dell Achieves Selling Efficiencies Traditional Model | Part II SALES FORCE ACTIVITIES Chapter 3: Sales Opportunity Management Sales Opportunity Management Generating New Accounts Managing Existing Accounts Personal Time Management Sales Versus Profits Developing a Prospect List 1. Direct Inquiry Advertising Direct Mail Trade publications Trade shows 2. Directories – Thomas Register 3. Referrals 4. Cold Canvassing Qualifying Prospects 1. Needs for your products/services 2. Authority to make purchase 3. Credit rating & ability to pay 4. Rating scale applied to characteristics by each salesperson Table 3-1 Computing the Cost per Call for an Industrial Products Salesperson Compensation Salary, commissions, and bonus $69,035 Fringe benefits (hospital, life insurance, social security) $10,985 $80,020 Direct 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 Year Total available days 260 days .