Sales Management and E-Marketing How

Sales Management and e-Marketing

How can companies best use the Internet as a training tool for their sales people? Is this a good use of the technology?

Given the advances in rich media presentation technologies including J2EE programming languages (Java) and support for exception-based browser updates through the use of AJAX technologies, online training systems for evaluating salesperson's abilities and also teaching them new sales skills have become very popular globally. Using the Internet to first test a salesperson's innate abilities to sell is an excellent use of this technology, specifically focusing in on role-playing and evaluating the judgment of potential sales representatives. The basic mathematical and statistical concepts can also be evaluated using Internet-based applications. In addition, simulations of actual bidding and pricing scenarios can greatly enhance the ability of hiring companies to evaluate potential candidates. There is also the added benefit of seeing how well candidates express themselves in writing by giving them scenarios to write a letter back to a customer about a potentially stressful situation. Seeing online what the salespersons' true knowledge is can greatly alleviate interviewer bias as well, as Internet-based testing takes the persons' race, color, creed and gender completely out of the consideration, which is by far the fairest type of screening there is. In summary, this is an excellent use of Internet-based technologies, as it provides hiring companies with the opportunity to evaluate potential prospects without having to manage the testing process manually, it can be done electronically, testing potential employees directly over the Internet at their convenience as well.

A new office supply company, selling B2B, is about to hire its first sales people. You have been assigned to develop selection procedures to evaluate applicants for the job as new sales personnel. What will you likely do? How will your selection procedure differ if you are hiring sales people for personal selling/outside sales or inside sales?

The key criteria that need to be used in the hiring evaluation process of B2B sales people are significantly different than those that would be used for personal selling, outside sales, or inside sales. For B2B salespeople, there needs to first be a much more of a focus on solution selling, less of a focus purely on just completing the transaction. In addition, as sales cycles for B2B products can be over a year in length, it is critical that B2B salespeople also have previous experience managing more complex sales engagements. The ability to also create solutions for customers based on integrating products and systems together unlike they have been done before also requires a high level of product knowledge on the part of the B2B sales person. What emerges from these requirements then is a set of evaluation criteria that specifically looks to quantify how well prospective employees can manage multiple, often conflicting priorities, their natural skills at project management, and most important, their ability to quickly ascertain complex needs and specific solutions for them. Part project manager, part customer advocate and solution architect, the B2B sales person must be tested for a unique set of needs if they are going to succeed. Personal selling and outside sales representatives on the other hand do not require such a long-term orientation or as much technical expertise, yet these salespeople do require a very high level of communications skill and the ability to quickly ascertain customer problems. Personal selling representatives also require a very high degree of autonomy and ability to get work done on their own - they require high levels of intuitive. Inside sales representatives need to be more adept at building relationships internally and working on cross-functional teams to accomplish tasks for their clients. Like the outside sales representatives, inside sales representative candidates must also have a very high level of intuitive as well. The attributes of being able to quickly get solutions in place for customers, build and strengthen key partnerships through the company to gain cooperation to solve customers' problems, and the ability to define entirely new solution sets based on knowledge of the company's products are all critical.

Most sales managers design their compensation and incentive programs to achieve specific goals. What goals are best achieved with commissions? What goals are best achieved by using incentives? How will employees from different demographic groups respond to different compensation and incentive programs?

The use of commissions and incentives are commonplace in both B2B and B2C selling professions. For many companies the use of commissions is used to reward keeping the price as high as possible, and in certain B2B selling scenarios, commissions are also used to reward salespeople who keep gross contribution margins high as well. Commissions also can be a relatively high percentage of the sales price of a product or service, leading some companies and industries to base compensation for salespeople purely on commission alone. Typically on big-ticket items where price is relatively set and the salesperson is incented to get the highest price possible, commissions are often used. Incentives on the other hand are often more short-term in nature and focused on only one specific product or service for just a short length of time. Incentives can range from cash payments for increasing sales (sometimes called spiffs in sales jargon) or to point-based contests where the salespeople can win a trip or some larger, valuable prize. Incentives almost always have an immediate impact on the salesperson's income or stature in the company. Different demographic groups respond significantly differently to commissions and incentives. Straight commission sales jobs often require much sales prospecting, much cold calling, and lots of activity to keep a salespersons' income at a specific level. Typically salespeople just starting out, younger, and wanting to prove themselves in sales take commission-only jobs. From an income standpoint this is a sales position that can be very lucrative and then completely lacking in income, and as a result many who participate in commission-only sales positions have few financial responsibilities. The fluctuation in income is too great for those salespeople who may have many other financial responsibilities. The demographics of those salespeople who are attracted to incentives spans across age and income groups, with the specific nature of the incentive being the most critical aspect of the attractiveness to a given demographic group.

Every week there are hundreds of ads for non-retail sales jobs on job sites like Monster.com. Pick a Canadian ad from Monster.com or another site, and provide a list of advantages and disadvantages of this job as part of a sales career. (you must include a copy of the ad, or its text, in the answer)

Link: http://jobsearch.monster.ca/getjob.asp?JobID=56989981&AVSDM=2007%2D08%2D16+2 2%3A01%3A59&Logo=1&fn=10&lid=229&cy=CA&dcjvlid=229

The position of Agent Account Manager for Xerox Corporation has the following advantages and disadvantages from the standpoint of helping to be a stepping stone in a career. First, the advantages include Xerox's excellent training programs in sales, which are considered among the best in the industry. There is also extensive role-playing and assistance with prospecting, sales cycle, closing, and account maintenance techniques that Xerox provides as part of its training. Second, the product training that Xerox provides to its sales staff is also exceptionally good. It would be useful to anyone's' sales career to see how Xerox manages the product and sales training function as well. Third, Xerox is considered an excellent company and would add value to any resume. Fourth, the position is taking over existing accounts and prospecting for new ones, which means the sales representative will have the chance to expand their sales network over time both with customers and prospects. The disadvantages include the fact that Xerox is by nature very hierarchical and times can be inflexible in allowing for creativity in sales and account strategies. The culture of the company could be difficult to work in if a person likes much freedom in how they do their work. Second, the job doesn't appear to require much creative thought; it is a job that requires a person very strong at and motivated for completing exectuoin-level sales strategies. For anyone who is a conceptual thinker, this could be a challenge to stay focused. Third, Xerox is known for having very high quotas and to attain the maximum income possible this job will most likely require 50 - 60 hour weeks or more to accomplish the total income potential available. Fourth, small businesses tend to expect high levels of service for little price; which means this job could easily turn into being in account maintenance roles with existing clients if the sales rep allows that to happen. In summary, the job will require much work and commitment and the sales rep will need to balance support for existing accounts with the growth of new ones, as existing accounts will take all their time if the rep is not careful.