SALE MANAGEMENT

Cô Phương: 0352841301 (Zalo)

Cuối kì: Làm luận nhóm
Điểm danh, vắng trên 2 lần 0đ điểm danh
Vắng 1 buổi trừ 1đ, đi trễ trừ 1đ (2 lần trễ = 1 vắng)
Vắng có phép không sao
Kiểm tra giữa kì: có 2 hình thức:
- nếu không đủ buổi làm test.
- đủ buổi và thuyết trình lấy điểm này.
Thứ 5 tuần 7 kiểm tra (8h hoặc 8h30) - nội dung từ tuần 1-tuần 6
CHAPTER 1: INTRODUCES TO SALES MANAGEMENTS
1.1. Key concept
Personal Selling: ( Bán hàng cá nhân)
Definition ( Định nghĩa): Direct communications between paid representatives
and prospects (potential) that lead to transactions, customer satisfaction, account
development, and profitable relationships.
- two-way communication ( Giao tiếp từ 2 phía)
- persuasion for transaction ( Thuyết phục)
- for profit ( Vì lợi nhuận)
- relationship ( Vì mqh với khách hàng)
Roles of personal selling:
- Address the special needs of the customers
- Provide appropriate explanation
- Personal selling can effectively target qualified prospects
- Can better identify opportunities to create value and gain customer
commitment.
1.2. A changing marketplace
Competition:
- Globalization:
The most obvious need for a global perspective (quan tâm đến nhu cầu) is for
those companies competing in other countries.
Companies’ growth is likely to depend on how well they manage customer
relationships in global market
-> This means more traveling, hiring the right people, defining new roles and duties,
and developing a global perspective and world-class skills at addressing an
increasingly eclectic sales force.
- Shorter Production Cycle:
Product cycles are shorter, imitation is more rapid, and as a consequence, the
window of product differentiation has narrowed considerably.
(note: introduction và manitury: là 2 giai đoạn cần sale hoạt động nhiều nhất
với introduction: giới thiệu sp mới đến KH
Manitury: kéo dài giai đoạn nhiều nhất có thể
- The Proliferation Challenge:
Recent advances in technology, information, communications, and distribution
have created an explosion of new sales and service channels, media, products, and
brands.
-> Product and competitor knowledge demands on salespeople are greater
-> Developing solutions for customer problems becomes more complex as does the
need for better understanding of customer needs.
Customer:
- Purchase from Fewer Suppliers:
Suppliers need to spend efforts to cover larger territories and service larger
accounts
 Survival had become dependent on maintaining the supplier customer
relationship
- Rising Expectations

Be personally accountable for our desired results

Be easily accessible

Understand our business

Solve our problems

Be on our side

Be creative in responding to our needs

Design the right applications

- Increasing powers
Marketing and sales must take joint decisions about product, price, brand, and
all kinds of support
Requires an integrates approach

Selling Process
- Solution selling:
 - Sales Team:

The switch to sales team incorporating a relational sales orientation has a

number of critical consequences for a firm’s sales program and management process
Sales team require changes in a firm’s organization structure, selection process,
training program, compensation plan, and evaluation process.
- Inside selling:
Success depends on the salesperson knowing where within his or her own
organization the solutions resides
 In many cases sales success depends as much on successful inside networking
as it does on external customer-forcused networking. Salespeople will need to work
with a number of functions across an organization if they are to develop successful
long-term relationships with clients
- Productivity metrics:
Profitability often depends on the following:
+ The amount of time necessary to complete the sale
+ The gross margins associated with the sale
+ The level of price discounting
+ The amount of Promotional support
+ The amount of post-sale support
+ The amount of future sales
1.3

1.4 Sale managment process: (thiên về quản trị đội ngủ sale)
- The sales managment process is the sequence of activities that guides managers
in the creation and administration of sales programs for a firm.
- Focusing on the big picutre
- Roles of the sales force
- Structuring the sale force
- Building sale competencies
- Leading the sales force
 CHAPTER 2
SALES FORCE’S STRATEGIES ROLE
LEVEL 1
1 Business Strategy
Level 1: Quyết định của quản lí cấp trên
level 2; định hướng chiến lược
level 3: quyết định chương trình về salesforce

Mục tiêu càng cao có thời gian càng dài.

Corporate Stragegy: tập trung vào mision và vision đưa ra giá trị cốt lỗi: có mục tiêu
dài hạn (dài hạn trong nhiều năm thương là 10 năm hoặc hơn)
Business Strategy: thường có mục tiêu vào chiến lược trung hạn (lập ra chiến lược dài
trong khoảng 3-5 năm)

- environment constraints: trong vi mô

- Distinct competencies: situation analysis

Function Strategy: tập trung vào mục tiêu ngắn hạn hoặc trung hạn (lập ra kế hoạch và
hoản thành kế hoạch thường dưới 1 năm)

- Strategic planning is employed to make better use of company resources and to

create and sustain an advantage over the competition.
 - Business strategy involves defining and articulating an overall business
mission, developing specific business goals/ objectives, and designing a
strategy for achieving these goal
Defining a business mission -> developing specific business goals -> Designing a
strategy to achieve goals
a. Business mission statement should include information regarding: (thay đổi
khi doanh doanh nghiệp tái định vị)
- The types of customer it wishes to serve
- The specific needs to be fulfilled
- The activities and technologies by which it will fulfill these needs
b. Establishing goals
- Organization’s goal is specific objectives (in terms of profits, sales revenue,
unit sales, market share, survival, and social responsibility) by which
performance can be measured

c. Strategies
- Low cost: giảm giá bán từ kinh nghiệm và chi phí
- Differentiation: khác biệt hoá sp
 - A niche: thị trường ngách
A strategy is the means an organization uses to achieve its objectives.
One of the most popular strategy typologies is Porter’s generic business
strategies.
According to Porter, all successful business focus on creating superior
customer value achieving one of the following market positions: low cost,
differentiation, or a niche

- Lợi thế về sự khác biệt:

Khác biệc về sản phẩm: Tính năng, Hiệu năng; thiết kế, lợi ích cảm tính
Khác biệt về dịch vụ đi kèm: nhanh, thuận tiện, chu đáo, chính xác. Bao gồm
bảo hành, sửa chửa, lắp đặt, tư vấn, đổi trả, vận chuyển
Khác biệt về nghiệp vụ của NV: thái độ tốt, chuyen nghiệp
 Khác biệt về kênh phân phối: độ bao phủ, chuyên gia phân phối, hiệu năng pp
Khác biệt về hình ảnh thương hiệu: biểu tượng, hình ảnh, màu sắc,...riêng biệt,
có tính đại diện cao. Hình ảnh thương hiệu có trách nhiệm đạo đức xã hội

2 Marketing strategy
- Marketing stragegy is the set of integrated decision and action a business
undertakes to achieve its achieve its marketing objectives by addressing the
value requirement of its customer
- Marketing strategy is concerned with decisions related to market segmentation
and targeting the market, development and communication of a positioning
strategy
Measurable:Đo lường đc - Identifiable
Accessible: lựa chọn phân khúc phù hợp cho từng loại sản phẩm tùy theo nhu cầu của
người tiêu dùng (tiếp cận đc)
Substantial: phải đủ lớn (quy mô), đông và tỷ suất mua
Differential: phân biệt các phân khúc rõ ràng
Actionable: đi đôi với stable (stable and actionable)
Positioning strategy (định vị hình ảnh thương hiệu)
(1) Who are you? (brand identify)
(2) What are you? (brand meaning)
(3) What do i think or feel about you? (Brand responses); and
(4) What kind of association and how much of connection would i like to
have with you? (brand relationships)
- Positioning occurs in the mind of consumer and refers to how the consumer
perceives the product, brand, company vis-à-vis competitors.
- A clear and strong position in the customer’s mind is achieved by designing the
proper marketing mix - price product, promotion and channels

LEVEL 2
1. Go to Market Strategy (chiến lược tiếp cận thị trường - khách hàng)
Steps in developing a go to market Strategy?
 (1) What is the best way to segment the market?
(2) What are the essential activities required by each segment?
(3) Which non-face-to-face selling should perform these activities?
(4) Which face-to-face selling participants should be used?
- Go to marke strategy defines who wilk perform an essentials set of activities
must be performed in order to attract and retain customers
- The first step in developing a go to market strategy is to identify markets
segment
Customer characteristics commonly used to segment a market for purposes of
developing a go to market strategy include, but are not limited to, The following:
- Industry (người mua hàng là B2B hay là B2C)
- size (quy mô thị trường đủ rộng hay đủ sức mua hay không - b2B, B2c)
- Geography
- Behaviour (Mua vì mục đích gì,...)
4 tiêu chí trên lựa chọn phân khúc thị trường mục tiêu.

(1) What is the best way to segment the market?

(2) What are the essential activities required by each segment?

(nhấn mạnh vai trò của người sale nếu sales tốt thì khách hàng sẽ tiếp tục quay
lai)
Interest creation include:
- Prospecting (khoanh vùng KH tìm năng), generating leads (tạo ra những người
dùng tiên phong)
- Creating awareness and interest
- Providing information about the company’s products and services
Essential activities include:
- Explaining features and benefits (Educate the market - hướng dẫn sử dụng sản
phẩm cho khách hàng)
- Qualifying prospects
- Assessing customer needs
- Cooperating in the problem solving
- Demonstrating company and product capabilities
Purchase include:
- Negotiating
- Bidding (đấu giá)
- Finalizing terms and condition (điều kiện điều khoản hợp đồng)
- Writing proposals
Post-purchase include:
 - Delivery, installation, and servicing of products
- Addresing customer questions that need answering
- Providing information about new features
- Collecting payment
(3) Which non-face-to-face selling should perform these activities?

Integrators: người cố vấn mua hàng fuck tạp

Alliances: cộng sinh - liên minh

(phối thức truyền thông marketing)

Efficiency: hiệu suất cao chưa chắc hiệu quả cao
Effectiveness: Ngược lại
Salesforce: nó ko lows cost, không efficiency nhưng lại high sales per Exposure
2. Product development management (pdm)

Ý 1 và ý 6 là là bước mà seller cực

Some of the changes companies are likely to make in their sales force programs when
introducing important new products include the following
- Sale quota systems. most likely adjusted upward to include new product sales
- Training program adjusted to develop new sales competencies.
- Supervision program is altered to allow managment so spend more time
accomanying salespeople on sale calls for purposes of training and coaching
 - Compensation plan changes including commissions rates, sales incentive
programs, guanrantee draws
- Sales force organization struture is changed, often to organize around different
types of customer.

3. Supply chain managment (SCM)

Inbound logistics: logistics đầu vào - cung ứng

Outbound logistics: logistics đầu ra - phân phối
Upstream: dòng chảy nguyên liệu vào
Middlestream: dòng chảy từ nguyên liệu -> thành phẩm
Downstream: dòng chảy thành phẩm ra

Supply chain management is the integration and organization of information

and logistics activities across firms in a supply chain for the purpose of creating and
delivering goods and services that provide vale to customer.
 Some important implications of SXM for the evolution of the sales force
- Knowledge of the entire upstream and downstream supply chain
- thinking strategically about partnering
- Establishing good lines of communications and influence with senior corporate
management.
4. Customer Relationship Management (CRM)
Customer relationship management is a comprehensive set of processes and
technologies for managing relationships with potential and current customers and
business partners across marketing, sales, and service regardless of the
communications channel.
At the heart of the CR process ís information, which must be readily
benchmarked, analyzed, critiqued, an shared among all the constituencies in the
buying process.

The 4 skill most important to top sales professionals in a phase 3 CRM environment
are:
- Collaboration
- Relationship management
- Finance and business skills
- Cunsultative skils

Level 3: Sale force program decisions

1. Account Relationship Strategy
A firm’s account relationship strategy refers to the type of relationship it intends to
develop with its customers. The decision encompasses plans for acquiring,
maintaining, and developing customers.

3 types of relationship:
 - A transactional relationship is one in which the relationship is based on the
need for a product of acceptable quality, competitively priced and a process and
relationship convenient for the buyer.
- Consultative relationship, a quite common relationship in industrial markets, is
based on the customer’s demand and willingness to pay for a sales effort that
created new value and provides additional benefits outside of the product itself
- Enterprice relationship is one in which the primary function is to leverage any
and all corporate assets of the supplier in order to contribute to the customer’s
strategic success.

Khi gọi đến 1-2 lần bằng khách hàng quen => phản ứng ít => đồ thị đường ngang

4. Sales process model: focus on where the opportunity is in the selling process
Each sales opportunity is categorized based on the level of uncertain
 PART II: SALES FORCE ACTIVITIES
CHAPTER 3; TERRITORY MANAGEMENT (phân tích về cơ hội để chọn phân
khúc khách hàng tốt cho doanh nghiệp mình)

2 ways to maintain customer:

- Finding new customers (Tìm kiếm khách hàng mới, có chất lượng)
- Maintaining current customers: Duy trì mối quan hệ để khách hàng trung
thành với sản phẩm của mình (quản lí thời gian, trên từng khách là bao nhiêu)
Phải xác định:
- Khoảng lợi nhuận thu về thấp nhất trên từng khách hàng có thể để sinh lời (nếu
mình thu về thấp hơn mức này thì không chất lượng không đủ sức mua)
- Thời gian chốt đơn (dài ->không đủ sinh lời)- thời gian bao nhiêu là vừa đủ?)
3.1. A process for generating new accounts (quản lí khách hàng mới)
Building a prospect profile: which is simply a profile of what the best
prospect look like (phác hoạ chân dung khách hàng tiềm năng)
Building a prospect list: The traditional method of generating prospect it
through cold canvassing which involves contacting prospective customers without
appointment ( xây dựng tệp khách hàng dựa trên cái trên)
Qualifying prospect: This is determine if the prospect is likely to be coveted
to a buying customer. (ai có thể chuyển đổi từ khách hàng tiềm năng -> purchasing
product)
 Customer characteristic commonly used to segment a market:
- Industry:
b2c: khách mua hàng mà mình đang bán
b2b: bạn có thể cung cấp hàng hoá cho bên cần
- Size: đủ đông, đủ sức mua
- Geography
- Behavior
Developing a prospect list:
1. Cold Cavassing (vận động nguội) - B2B telesale/ Cold calling (gọi nguội-hay
dùng trong B2C Telesales) - Khi gọi không dể cảm xúc vào công việc)
2. Direct mail (qua bưu điện)/email(qua điện tử)
3. Trade show
4. Directories - Thomas Register (sổ danh bạ về doanh nghiệp)
5. Internet
6. Referral (người giới thiệu, thu thập thông tin khách hàng từ người giới thiệu)

Qualifying Prospect:
1. Needs for your products/services
- B2B: phải make sure nó đủ lớn để mua hoặc phải chọt sao cho họ ngứa họ mua
2. Authority to make purchase (Initiator, influencer, decider, buyer, user,
gatekeeper)
- initiator:người đầu tiên tìm ra nhu cầu
- Influencer:
- decider:
- buyer; đo lường sức mua của học, họ có sẵn lòng mua hay không
B2C: người mua đóng tất cả vai trò
B2B: có nhìu người trong team sales giữ nhiều vai trò khác nhau
3. Credit rating & ability to pay
Bên tài chính gọi là điểm tín dụng (khả năng vay vốn và trả của tổ chức có cao
ko)
4. Rating scale applied to characteristic by each salesperson
 3.2. Managing existing accounts (quản lý khách hàng cũ, giữ chân khách hàng
trung thành). Quy tắc 80-20: không nên giữ lại toàn bộ khách hàng, những ai có
khả năng chi trả thì giữ lại
Uni: tập trung phát triển đa dạng hoá SP
P&G: tập trung phát triển những cái sp đã tốt
An important starting point in managing existing account is determining the
minimum opportunity on which you should be spending your time
Salespeople who are supplied with the necessary direct selling expense
ìnormation are in an excellent position to perform a minimum accoung size analysis.
(khách hàng đó phải đạt được một mức quy mô tối thiểu để đem loại lợi nhuận cho
mình, ko thì cho chim cook)
This analysis involves two steps: calculating a personal cost per sales call (1.
Chi phí trong 1 lần gọi (trong telesales)) and a breakeven sales volume (2. doanh số
hòa vốn).
Cost per call: Is a function of the number of calls you make per day, the
number of days available to call on customers, and your direct selling expenses.
Direct selling expense:include such expenses as compensation, travel, lodging,
entertainment, and communications (chi phí phải trả cho người sale)

Cost/Call = Direct Selling Expense/Total call per year

Breakeven sales volume (doanh số hòa vốn) (phải thu đc đến cao hơn hòa
vốn thì mới sinh lời): is the sales volume neccessary to cover direct selling expenses.
(doanh thu hòa vốn: (minimum sales: mà doanh nghiệp phải chi tối thiểu để hòa vốn,
tính trên 1 người - 1 khách hàng)
Breakeven Sales Volume = (Cost per call * Number calls to Close)/Sale Calls expense as a % of Sales
(Calculating the breakeven volume requires knowing direct selling expenses as a %
totals of sales)
Hạn chế:
Cái breakeven này ko tính đc mấy cái dúp cắt giảm chi phí như cắt dảm số cuộc
gọi, thuê salespeople ngoài (bỏ recruit, train,...) (này dảm đc cost per call)
 Ko tính tới sự thay đổi theo thời dan dí dụ khách hàng lâu năm, năm nay mua ít
hơn năm trước trong khi các năm trước mua nhìu hơn.
Drawback:
- có thể ko mất tới 2.8 number of calls to close (vd 1 cuộc gọi) ->
breakeven
- Thuê nhân viên ngoài => không tốn tiền: các chi phí trợ cấp hay phúc lợi
- không xác định được lượng mua (vd: năm ngoái mua nhiều, năm nay
mua ít)
Four methods for settign accoung priorities:
1. Single-Factor Model: is the easiest adn probably the most widely used model
for allocating salespeople’s time. This model examines a single customer
characteristic, often sales volume, to arrive at an initial allocation of sales calls

The main limitation ò using sales volume is setting priorities is that offer factors
driving your return on invested time are not taken into account, for instancem
sales potential.
2. Porfolio model: considers multible factors when determining the attractiveness
of individual accounts within a territory.
Hàng dọc: mức độ hấp dẫn của phân khúc khách hàng
Hàng ngang: wallet share (vị trí của mình trong mắt khách hàng)
- This method offer several benefits:
● Help the sales team to identify the important customer and relationship issues.
● Facilitate communication between salespeople and sales managers.
● Help isolate information gaps ans set priorities for customer data collection and
analysis.
 ● Force the sales team to think about the future and consider ways of achieving a
more desirable portfolio configuration.
- Several shortcoming of the portfolio model:
● Account must still be grouped into the four quadrants for the purpose of
allocating the sales calls.
● Differences between firms in the same quadrant are therefore not taken into
consideration.
● The process does not arrive at an optimal allocation of sales calls

Điểm yếu:
- những doanh nghiệp cùng ô được cho là như nhau mặc dù có sự khác biệt
- Không tính được số lượng sale call chốt được
Vị thế tương đối của người bán + người mua
Doanh nghiệp có sức mạnh như thế nào trong mối quan hệ giữa người bán và người
mua

3. Decision model:
Overcomes two shortcoming of portfolio model by focusing on the response
of each account to the number of sales calls made over a period time.
This method consist of 2 parts:
+ Sale response function: develops the relationship between the number of sales
calls over a period of time and sales to a particular account.
+ Individual response functions to allocate calls sa as to maximize

4. Sales process model: focus on where the opportunity is in the selling process
Each sales opportunity is categorized based on the level of uncertainly in
meeting the opportunity:
Unqualified opportunities (khách hàm tiềm năng): cơ hội ko rõ ràng (khả năng chốt
deal thấp)
Qualified opportunities (khách hàng mới): cơ hội khá rõ ràng (khoảng 70%+ chốt
deal) - ko chắc chắn nhưng tỷ lệ thành công cao (VD: 1 bên nào đó sắp hết hợp đồng
và ko có ý định tái kí và doanh nghiệp mình đáp ứng đc bên công ty đó)
Best few opportunities (khách hàng cũ): cơ hội RẤT rõ ràng (khoảng 90%+ chốt
deal) - ít xảy ra (khách hàng tự tìm đến mình, chứ mình không tự tìm đến)

Thứ tự ưu tiên theo lý thuyết: best few > qualified > unqualified
Thứ tự ưu tiên trong thực tế: best few > unqualified > qualified
(vài lần đầu chỉ nên theo lí thuyết, với những lần sau nên chọn unqualified để tìm
ra khách hàng mới)
(Tập trung nguồn lực cho best few trước để ít tốn thời gian và nguồn lực trước,
để có thời gian và đủ chi phí để chuyển đến unqualified)

3.3. Sales versus profits

Companies and salespeople need to be aware of the price, cost, and profit
different between customers ans allocate their sales effort accordingly
Customer Lifetime Value (CLV):
Consistent
(Chép thêm trong sách)

3.4 Time management:

Time management is one of the most frequently mentioned training topics.
Becaouse that significant productivity gains can be made through better time
management.
 Improving the amout of time spent selling is an opportunity for sighificant
productivity gains.

Service calls: khoảng thời gian tạo cuộc gọi

Prospecting: tìm kiếm KH
With customer: trực tiếp deal với KH
Waiting and travel: thời gian di chuyển
Administrative tasks: công việc bàn giấy, giấy tờ (soạn thảo,... aka hành chính
văn phòng)
Overall time management:
Common time wasters: MÀU ĐỎ LÀ MẤY CÁI CÓ THỂ CẢI THIỆN
1. Telephone interruptions 7. Indecision and procrastination
2. Drop-in visitors 8. Attempting too much at once
3. Lack of self-discipline 9. Leaving tasks unfinished
4. Crises 10. Unclear communication
5. Meetings
6. Lack of objectives, priorities and
deadlines
Solutions:
6. Objectives phải SMART
 PART II: SALES FORCEACTIVITIES
CHAPTER 4: ACCOUNT MANAGEMENT
4.1 Describe the steps in the professional purchasing process:

A key determinant of the nature of the purchasing process is the buying

situation faced by an account.
Three different types of situations are possible, each of which will influence the
nature of the four steps in the purchasing process and the opportunity for the seller
toprovide value to the customer in completing the purchasing process
1. Straight rebuy (mua thẳng theo thói quen, mua nhiều): the product has been
previously purchased and there is no change desired in the product or offering;
it often involves replenishing inventories of products. In such a situation, the
seller can add value for the customer by making the purchase easy, convenient,
and as hassle-free as possible.
 2. Modified rebuy (mua lại nhưng khách hàng thay đổi nhu cầu): occurs when
some changes are anticipated in a product that the buyer has previously been
purchasing. The seller can add the most value.
3. New buy (Người mua mới): The most complex purchasing situation and the
seller has the opportunity to add value for the buyer during three of the four
stages of the purchasing process: recognition of the needs, evaluation of
options, and implementation and evaluation.
Trong đó New buy là cực nhất theo thứ tự New buy > Modified > Straight

B1: nhu cầu của KH B2B bắt nguồn từ nhu cầu của KH B2
B2:
Specifications: bảng yêu cầu đc bắt nguồn từ khách hàng, nhưng nếu mqh càng phức
tạp (3 cái relationships) thì cả 2 bên đều có thể giam gia vào việc này
Proposal: đc tạo bởi seller
B3:
B4: có 2 mốc để khách hàng đánh giá: Expectation - Perceived Value
Để khách hàng cảm thấy hài lòng thì Perceived Value > Expectation
PURCHSING PROCESS
1. Recognition of Needs: (Nhu cầu B2B bắt nguồn từ B2C)
Occurs when the account recognizes that a need exists. when identifying
businessto-business buying needs is the concept of derived demand. This refers to the
dynamic in which demand for a product or service is derived from the demand for the
customer’s products and services.
 2. Evaluation of Options:
- Specifications: the development of a precise statement of the requirements and
tolerances. The exact specifications are usually dictated by the anticipated
demand for the organization’s products and by the technological requirements
of its operations.
- Proposals: A sales proposal is a written offer by a seller to provide a product or
service to a purchasing organization
+ The proposal may represent the culmination of sales activities spanning
several months involving extensive client analysis.
+ The proposal may result from receiving a Request for proposal (RFP)
from a buyer.
3. Purchase Decision:
The purchase decision is the final flurry of activit culminating in a sale. This
involve writing orders, persuading, negotiating, finalizing terms, and closing the sale.
4. Implementation and Evaluation:
During the immediate post-purchase phase the seller’s obligation is to ensure
that all promises are fulfilled and customer expectations are met or exceeded.
After the immediate post-purchase activities are performed, the seller’s focus
should shift to customer retention and growth.
- Value Analysis: developed by General Electric as a basis for cost reduction, is a
detailed analysis of a product.
It focuses on the total cost.
- Vendor Analysis: is similar to value analysis but focuses on the vendor by
looking at such items as delivery reliability, price, service, and technical
competence.
SUPPLIER TIER
Companies segmenting their supplier base according to the importance of the
supplier’s product and the difficulty of finding alternative sources for the product.
Recognizing that groups of suppliers should be treated differently, customers
are starting to place their various supplier relationships into separate supplier tiers.
BUYING CENTER
The term buying center refers to all of the people formally or informally
involved in the purchasing decision—that is, all the people who must say yes for a sale
to occur or influence the people who will ultimately say yes or no to the purchase.
A purchasing role refers to the set of issues or concerns that a member of the
buying center will consider when deciding whether to approve or recommend either a
purchaseor a specific supplier. For purposes of clarification and simplification, these
concerns may be grouped into one of three purchasing roles: economic buyers
(decider), user buyers (buyer), and technical buyers (influencer, gatekeeper),
advocates.

BUYING CENTER MEMBERS

 MARKETING When a purchasing decision has an effect on the
marketability of a firm's product, such as altering the
product's materials, packaging, or price.

MANUFACTURING Manufacturing is responsible for determining the

feasibility and economic considerations of producing end
products.

RESEARCH AND Is involved in the initial development of products and

DEVELOPMENT processes and set broad specifications for component and
materials criteria, minimum end-product performance
standards, and occasionally manufacturing techniques.

GENERAL Top management is likely to be involved when the

purchase situation is unusual for the firm or when the
decision is likely to have major consequences on the
firm's operation.

PURCHASING Purchasing agents are specialists who have negotiation

expertise, knowledge of buying products, and close
working relationships with suppliers. They tend to
become most involved in the purchasing situation in the
later stages of a "new buy" situation. Are generally the
dominant decision makers in repetitive buying situations.

ECONOMIC BUYING INFLUENCE

- Role:
Ask “why”
Gives final approval father up on the firm’s leader
- Characteristics:
Access to money
Can release money
Veto power
- Focus:
Total organization
Bottom line
The future
USER BUYING INFLUENCE
- Role:
 To decide on now a purchase will affect job performance
- Characteristics:
Implementation oriented. Narrow focus on their operation
Use or service use of product or service
- Focus:
Tactical, not strategic
The job to be performed
TECHNICAL BUYING INFLUENCE
- Role:
To eliminate alternatives
To recommend alternatives
- Characteristics:
Focuses on qualifiable aspect of product and service
Gate keeper
Can only
- Focus:
Tactical, not strategic
The job to be performed
ADVOCATE
- Role:
Help guide the sale
- Characteristics:
May be inside or outside of the buying organization
Furnishes and interprets information
- Focus:
Your success
Why your “Winning” is a Personal “Win”
● Personal. Wants you to win because he or she knows you, likes you, and wants
to see you be successful.
● Professional. Wins by doing his or her job better, achieving goals, and helping
the companies meet objectives.
 ● Recognition. Wins by receiving recognition from his or her own organization.
● Negative. Really wants someone else to lose.
Ways in Which an Advocate can help
● Personal. Wants you to win because he or she knows you, likes you, and wants
to see you be successful.
● Professional. Wins by doing his or her job better, achieving goals, and helping
the companies meet objectives.
● Recognition. Wins by receiving recognition from his or her own organization.
● Negative. Really wants someone else to lose.
EVOLUTION OF RELATIONSHIP
Marketers would like to establish a long-term relationship with their customers
to ensure a stream of purchases and an upgrading of the equipment a client purchases
over time.
According to research in social psychology, growing relationships evolve
through five general stages:
(1) awareness, (2) exploration, (3) expansion, (4) commitment, and (5)
dissolution.

RELATIONSHIP BINDERS
 Three important underlying factors necessary for a fully developed relationship:
1. Creating Value
Value refers to the perception that the rewards exceed the costs associated with
establishing and/or expanding a relationship.
Customer Value Creation in the Purchasing Process

2. Meeting Expectations
Customer performance expectations include the performance of the product, as
well as a number of service activities such as frequency of sales calls, notification of
price changes, lead time in delivery, order fill rate, emergency orders, and installation.
s
3. Building Trust
Trust refers to the opinion that an individual’s word or promise can be believed
and that the long-term interests of the customer will be served.
Salespeople whom buyers trust possess the following five attributes:
• Honesty. Salespeople who tell the truth.
• Competence. Salespeople who know what they are talking about.
• Dependability. Salespeople who follow through on their promises.
• Customer orientation. Salespeople who put buyers’ interest ahead of their own.
• Likability. Salespeople whom the buyer enjoys knowing.
 CHAPTER 6: SALES FORCE STRUCTURE

Sales Force Organization: Topic

6.1. General versus specialist structure

Sales force organizational structures vary from generalist structure, where each
salesperson sells all product to all customers within a particular geographic area, to
highly specialized sales forces, where teams of salesperson focus on specific product,
market, or functions.
Generalist Structure: referred to as a geographic organization, in which each
salesperson sells the firm’s entire product line to all accounts and prospects, usually
within a specific geographic area.
A generalist organization works best when the product line consists of related
products or services that appeal to a rather homogeneous group of buyers.
Salespeople also have a greater opportunity to gain in-depth knowledge of the
local culture, economic, and competitive conditions.
● Some Shortcoming
+ Salespeople sell many products, they tend to focus their attention on the lines
with which they are comfortable, neglecting the lines that are newer, more
difficult to sell, but possibly more profitable.
 + It is difficult to develop the expertise needed to develop creative solutions for
customers’ problems.
+ salespeople may find themselves at a competitive disadvantage if they are asked
to sell to customers with problems and needs that are diverse and complex.

Product specialization: A product-based specialization is most appropriate

when a firm has a large, diverse, and complex line of products.
A product-specialized sales force structure each salesperson specializes by
selling only a few of the products in the organization’s total product portfolio and
reports to a management structure.
A product-based specialization is probably the most effective way to ensure that
a product or product line receives the desired level of selling effort.
● Some Shortcominr:
+ Low geographic efficiency, each product specialist must usually cover a large
geographic area.
=> Increases travel expenses and reduces the amount of face-to-face time with
customers; it may also create confusion on the part of customers.
 Customer specialozation: referred to as vertical marketing, each salesperson
or sales team sells the entire product line to select types of buyers.
Some advantage of customer specialization:
+ Salespeople to gain a better understanding of the customer’s special needs and
problems and become experts in a particular customer or industry.
+ Very adaptive as well to changes in customer needs and buying behavior.
+ Result in an important selling advantage when an organization wishes to
execute a consultative or enterprise-level relationship strategy with its
customers.
+ Customer or market receives the appropriate level of selling resources.
Some disadvantage of customer specialization:
+ Lead to conflict with the marketing organization
+ Product expertise may be lacking
+ More expensive
 Function specialization: focuses on the activities or functions performed by
customer contact people
Some specific function or activities:
+ New customer specialist
+ Retention specialists
+ End-user Specialists
+ Sales engineers
+ Service consultants

New customer specialists. These people are charged with gaining new
customers. The type of person and the skills needed to successfully call on prospects
are believed to be quite different from those needed to service existing accounts.
Retention specialists. Between 80 and 90 percent of most companies’ annual
revenue is from current customers. Retaining customers and, more importantly,
realizing revenue growth are critical to profitability.
End-user specialists. Companies that sell through distributors face the
challenge of creating demand among end-users. (Chủ yếu làm việc nhiều với B2C)
Sales engineers. In high-tech companies, such as 3M, a new role has been
developed, called sales engineers, who are responsible for developing applications for
their products within an existing customer’s business. (Ví dụ ĐMX: có nhiều sản phẩm
thiết bị cần phải có nhiều salespeople chuyên môn cao để sale)
 Service consultants. It is not uncommon for salespeople to spend 15 to 30
percent of their time in service-related activities: finding the status of orders,
answering questions about shipments, resolving billing disputes, and the like. To
increase selling time, some or all of these service activities are being assigned to
specialists. (Ví dụ: Tư vấn trong trung tâm ngoại ngữ chịu trách nhiệm tư vấn và cung
cấp thông tin) - Hỗ trợ cho người sale chính
Comoaring sales organization structure

Organizational Advantages Disadvantages

Structure

Generalist • Low cost • Limited product line

(Geographic) • No geographic overlap knowldge
• No customer overlap • Limited customer knowledge
• Lack of management control over
product or customer emphasis

Product • Product knowledge • Low geographic efficicency

• Control over product • Customer duplication
emphasis • Geographic duplication

Customer • Deeper customer • High cost

knowledge • Less product knowledge
• Control over customer • More geographic duplication
emphasis • Diffcult coordination with
product
managers

Functional • Effectiveness in • Coordination

performing selling • Geographic duplication
activities • Customer duplication
Strategic account management program
Strategic account management program is a marketing philosophy directed at a
select group of customer that account for a disproportionately large share of the
seller’s total revenues.
 Two issue have been particularly problematic with new strategic account
programs is Account seletion and organization structure.
+ Strategic account selection:
Customers who best quality for a strategic account program are those who purchase a
significant volume and exhibit one or a combination of the following characteristics:
● Involve multiple people in the buying process
● Purchase centrally
● Desire a long-term, cooperative working relationships
● Expect specialized attention and service
● Align strategic intent
+ How to organize: The major organizational alternatives are as follow:
● Existing Sales force:
Low risk; little change
● Managements: => Người bán hàng ra quyết định
Keeps management close to customer
● Separate sales force: => Customer nào ok thì tập trung vào nó
More aggressive; more expensive; alternative to sales management
for promotion for sale staff
● Cross-Functional sales teams
Use when selling process is complex
Strategic account management represents a significant opportunity for many
companies to grow through meeting the needs of their customers.
Management needs to consider and debate the following questions:
• To what extent are we able to gain greater customer investment in the relationship,
sharing of information, and trust?
• Are we able to proactively respond to changing customer needs? Is top management
significantly involved with our strategic account program?
• Is there a high level of esprit de corps within the program?
• Are sufficient marketing and sales resources committed to the program?
TELEMARKETING
Telemarketing refers to customer contacts utilizing telecommunications
technology for personal selling without direct, face-to-face contact.
Business-to-business telemarketing is growing at a rate of 30 to 40 percent a
year and generated sales in excess of $200 billion.

Sales force organization: Scope of Telemarketing

Activity Description

Customer Service Companies provide customers with a number they can call if
they have questions.

Prospecting and Firms are taking a proactive approach to prospecting by

Lead Qualification having telemarketers call prospects or qualify them for
face-to-face selling.

Account Secondary product lines are sold or small customers are

Management serviced by phone, thereby freeing their salespeople to
concentrate on larger customers and strategic product lines.

Promotion Support Newspaper and magazine ads are developed that feature
either a local or an 800 number to get additional product
information or place an order.
Advantages:
+ It allows companies to make cost-effective sales calls
+ Make many more calls per day thaaan field salespeople
+ Profitablely serve small to medium customers
+ Speed/time saving of telephone ordering
Challenges
 + Acceptance by field salespeople
+ Management
+ Motivation
+ Role of the internet
SOME ADDITIONAL ISSUES
• If a company’s objective is to reduce costs, then full-line salespeople and
telemarketing are the best low-cost options.
• If a company’s objective is to increase revenue, then specialization (product,
customer, functional, and major accounts) supported by telemarketing should be
considered.
• Exceptional training capabilities are frequently critical to the success of specialized
salespeople. Specialization by itself is rarely sufficient to produce exceptional results;
development of specialized skills must be fostered and enhanced by appropriate
training programs.
• When specializing, a firm must have the capability of developing new products and
modifying existing products for individual product lines and/or markets. Sales force
reorganization cannot solve a product problem.
• If your market is susceptible to demand or margin downturns, then specialists may
prove too expensive and too difficult to redeploy.
INDEPENDENT SALES AGENTS
An important alternative is to hire independent sales agents (sometimes referred
to as manufacturers’ reps) to perform the selling function.
Sales agents are not employees, but independent businesses given exclusive
contracts to perform the selling function within specified geographic areas.
When to use sales agents: Management should consider three factors: (1) economic
consequences, (2) level of control, and (3) market environment.
Economic Consequences: The economic issue centers on the fixed-cost nature
of a dedicated sales force versus the largely variable cost nature of sales agents.

Suppose that independent sales agents receive a 5 percent commission on sales

and that administrative overhead costs $50,000. Company sales personnel receive a 3
percent commission plus a salary. Total salary and administrative expenses are
estimated at $550,000. At what sales level would the cost of a company sales force
equal that of sales agents?

Cost of company sales force = Cost of sales agents

-> 0.03x + 550,000 = 0.05x + 50,000
x: the breakeven sales volume
Solving for x -> x = $25,000,000
If sales are expected to be below $25 million, the sales agents are less expensive.
The cost of a company sales force is less when sales exceed $25 million.

Level of control
Costs are not the only consideration. Managers can control a company sales
force through the selection, training, and supervision of salespeople; establishment of
operating policies and procedures; and various evaluation and reward programs.
Market environment.
Market conditions favoring sales agents:
• The market is fragmented, and customers are difficult to find or understand.
• Buying is decentralized.
• Local knowledge and local distribution are important.
• The company is selling only a few products.
• There is a good potential sales agency who has significant marketing expertise in the
industry.
• The company is not well known and has little equity in the market.
• The products are easily understood commodities that have been around for a long
time.
• The selling cycle is short, and orders are typically small.
• It is not necessary to tightly control the selling effort.
• Ongoing support activities are not important, and the company does not need
customer information.
EMERGING SALES FORCE ORGANIZATION ISSUES
Five issues related to sales force organization are getting increasing management
attention:
- Marketing-sales disconnect
- Cross-functional coordination
- Global account organizations
- Sales teams
- Selling partners
Marketing-Sales Disconnect
What can be done to encourage greater alignment between sales and marketing?
1. Encourage disciplined communication. Hold regular meetings between
sales and marketing. Make sure the agenda include major opportunities and problems.
Focus the discussion on action items.
2. Create joint assignments and rotate jobs. Create opportunities for
marketing and sales to work together, such as marketers going along on sales calls and
salespeople helping to develop marketing plans and sit in on product-planning reviews.
3. Co-locate marketers and salespeople. By locating in physical proximity,
they will interact more often and are more likely to work better together.

Cross-Functional Coordination
 Depending on the organization and situation, sales will often need to work
harmoniously with the following departments to successfully address customer needs.
• Engineering new product and product modification ideas
• Marketing advertising themes and media, cooperative advertising efforts,
development of sales aids, channel issues, competitive pricing, and competitive market
information
• Production product availability, sales forecasting, production scheduling,
technical product information, special product features and characteristics, and
delivery schedules
• Accounting and finance special pricing and credit schedules, customer credit
information, budgets and quotas, compensation programs, and control of expenses
• Operations/Customer Service equipment installation, customer training,
equipment upgrades, ordering problems, warranty servicing, and emergency needs of
customers
Global Account Organizations
Global account management programs treat a customer’s operations worldwide
as one integrated account with coherent terms for prices, product specifications, and
service.
Sales Teams
 Consisting of salespeople, customer service, technical specialists, and other
functional areas. The objective of these teams is to consolidate greater knowledge and
skills to focus on a more creative and complete solution to a customer’s needs in order
to build stronger customer relationships.
Selling Partners

These are salespeople who are not on the payroll and who not only sell but also
provide technical and operating support.
Example is Siebel CRM, a division of Oracle Corporation, which uses partner
companies to customize its software for large- and medium-size customers.