SALES

MANAGEMENT
PHẠM TRẦN KHOA (Lecturer, MBA)

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PART 2 – SALES FORCE ACTIVITIES
Chapter 3
SALES OPPORTUNITY
MANAGEMENT
Daniel Gallego Oliva Wilson

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 Learning objectives

1 Describe effective steps for generating new account.

Explain how to determine the minimum opportunity

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a salesperson should pursue.

3 Describe four methods for setting opportunity priorities.

Explain why emphasis is shifting from sales volume

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to profit flow.

5 Tell how salespeople can manage their time more efficiently.

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Table Of Content
1. Prioritizing opportunities at SHELL
2. A process for generating new accounts
Workshop Purpose Strengths
3. Managing existing accounts
4. Sales versus profits
Marketing Problem Type Digital Marketing
5. Time management
Digital Marketing How To Get Started

4
Table Of Content
1. Prioritizing opportunities at SHELL
2. A process for generating new accounts
Workshop Purpose Strengths
3. Managing existing accounts
4. Sales versus profits
Marketing Problem Type Digital Marketing
5. Time management
Digital Marketing How To Get Started

5
1 Prioritizing opportunities at

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1
Prioritizing opportunities at Shell

Problems:
Slow revenue growth, increasing competition and
consideration of lower priced alternatives.
Cost of sales had risen gradually over the past 5 years.
Sell to and serve both segments in the same manner
→ skewed allocation of resources and high overall sales cost.
No enough penetration for key customers.

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1 Prioritizing opportunities at Shell

Solving: prioritizing customers.

Dedicated sales force to serve appropriate type of customers.

All these efforts were designed to ensure that resources were

allocated to the size of the opportunity.

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1 Sales opportunity management

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Table Of Content
1. Prioritizing opportunities at Hill-Rom
2. A process for generating new accounts
Workshop Purpose Strengths
3. Managing existing accounts
4. SalesMarketing
versusProblem
profits Type Digital Marketing
5. Time management
Digital Marketing How To Get Started

10
2 A process for generating new accounts

2.1 Building a prospect profile

2.2 Building a prospect list
Workshop Purpose Strengths
2.3 Qualifying prospect
Marketing Problem Type Digital Marketing

Digital Marketing How To Get Started

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2 A process for generating new accounts

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2.1 A process for generating new accounts –
Building a prospect profile
- Target market for the products.
Workshop Purpose
- Factors determine Strengths
who is a good prospect
→ prospect profile is simply a profile of
what the bestMarketing
prospectProblem
looks like.
Digital Marketing How To Get Started

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2.2 A process for generating new accounts –
Building a prospect list

• Developing a list of prospects matching the profile developed

Workshop Purpose
in the first step. Strengths

• The traditional method of generating prospects is

Marketing Problem
through cold canvassing.
• Cold canvassing involves
Digital Marketing
contacting prospective customers
How To Get Started
without appointments; that is, salespeople call on firms or
knock on doors until they find good prospects.

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2.2 A process for generating new accounts –
Building a prospect list

Workshop Purpose Strengths

Marketing Problem

Digital Marketing How To Get Started

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2.2 A process for generating new accounts –
Building a prospect list
Some of the more efficient methods being used to identify
good prospects include:
Workshop Purpose Strengths
• Direct inquiries,
• Trade shows,
Marketing Problem
• Directories,
Digital
• Referrals. Marketing How To Get Started

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2.3 A process for generating new accounts –
Qualifying prospect
Salespeople ultimately must qualify a prospect, that is,
determine ifWorkshop
the prospect
Purpose is likely to beStrengths
converted to a
buying customer.
Marketing Problem
Important information about customers:
• Needs, Digital Marketing How To Get Started

• Buying authority,
• Ability to pay.
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Table Of Content
1. Prioritizing opportunities at Hill-Rom
2. A process for generating new accounts
Workshop Purpose Strengths
3. Managing existing accounts
4. SalesMarketing
versusProblem
profits Type Digital Marketing
5. Time management
Digital Marketing How To Get Started

18
3 Managing existing account

3.1 Why is an account to small?

3.2 Four methods for setting account priorities.
Workshop Purpose Strengths

Digital Marketing How To Get Started

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3.1 Managing existing account –
Why is an account too small?
An important starting point in managing existing accounts is
determining the minimum opportunity on which you should
Workshop
be spending your time.Purpose Strengths

Marketing
Salespeople who are Problem
supplied with the necessary direct selling
expense information are in an excellent position to perform a
Digital Marketing How To Get Started
minimum account size analysis.

This analysis involves two steps: calculating a personal cost per

sales call and a breakeven sales volume.
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3.1 Managing existing account –
Why is an account too small?
Cost per call:

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3.1 Managing existing account –
Why is an account too small?

Cost per call:

Digital Marketing

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 Managing existing account –
3.1
Why is an account too small?

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3.1 Managing existing account –
Why is an account too small?

Breakeven sales volume:

Workshop Purpose Strengths
Breakeven sales volume is the sales volume necessary to cover
direct sellingMarketing
expenses.Problem

Digital Marketing How To Get Started

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 Managing existing account – Why is an
3.1
account too small? Breakeven sales volume

Workshop Purpose Strengths

Marketing Problem

Digital Marketing How To Get Started

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 Managing existing account –
3.2
Four methods for setting
account priorities

Workshop Purpose Strengths

Digital Marketing How To Get Started

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 Managing existing account –
3.2
Method 1: Single – Factor Model

→ The easiest and 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.
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3.2 Managing existing account –
Method 1: Single – Factor Model
The main limitation of single-factor models based on sales
volume, such Workshop
as the ABC account
Purpose classification procedure,
Strengths is that
they may not include all the factors that should be considered
when evaluating an account’s sales potential and life-time value.

→ Need alternative
Digital Marketing
models to overcomeHow To Get
that Started
limitation.

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 Managing existing account –
3.2
Method 2: Portfolio Models

Workshop Purpose Strengths

Digital Marketing How To Get Started

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 Managing existing account –
3.2 Method 2: Portfolio Models

Workshop Purpose Strengths

Digital Marketing How To Get Started

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 Managing existing account –
3.2 Method 2: Portfolio Models

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 Managing existing account –
3.2
Method 2: Portfolio Models
Shortcomings:
• First, accounts must still be grouped into the four quadrants
for the purpose of allocating sales calls. Differences between
firms in the same quadrant are therefore not taken into
consideration.

• Second, the process does not arrive at an optimal allocation

of sales calls.

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3.2 Managing existing account –
Method 3: Decision Models

Decision models for allocating sales calls overcome these two

shortcomings by focusing on the response of each account to
the number of sales calls made over a period of time.

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 Managing existing account –
3.2 Method 3: Decision Models

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 Managing existing account –
3.2
Method 3: Decision Models

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 Managing existing account –
3.2
Method 4: Sales process Models

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 Managing existing account –
3.2
Method 4: Sales process Models

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 Managing existing account –
3.2 Method 4: Sales process Models

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Table Of Content
1. Prioritizing opportunities at Hill-Rom
2. A process for generating new accounts
Workshop Purpose Strengths
3. Managing existing accounts
4. SalesMarketing
versusProblem
profits Type Digital Marketing
5. Time management
Digital Marketing How To Get Started

39
4 Sales versus Profits

Companies and salespeople need to be aware of the price,

cost, and profit differences between customers and allocate
their sales effort accordingly.

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4 Sales versus Profits –
Customer lifetime value
Consistent with the shift from a transaction view of revenues
and profits to a relationship perspective, marketers are starting
to adopt Customer Lifetime Value (CLV) as an appropriate
metric for measuring marketing performance.

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 Sales versus Profits –
4
Customer lifetime value
Customer Lifetime Value is based on the notion that the value
of a customer is the sum of the customer’s discounted flow of
profit contributions into the future. Calculating CLV requires
knowing or making judgments about the following inputs:

• The company’s discount rate (cost of capital)

• The company’s planning horizon (3 years, 5 years, 10 years)
• The customer’s product category purchases in each period
• The average contribution from purchases
• Each supplier’s share of total category purchases20
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Table Of Content
1. Prioritizing opportunities at Hill-Rom
2. A process for generating new accounts
Workshop Purpose Strengths
3. Managing existing accounts
4. SalesMarketing
versusProblem
profits Type Digital Marketing
5. Time management
Digital Marketing How To Get Started

43
5 Time management

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5 Time management

In most surveys of business training programs, time

management is one of the most frequently mentioned training
topics.
The reason is that significant productivity gains can be made
through better time management.

Improving the amount of time spent selling is an opportunity

for significant productivity gains.

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5 Time management –
Overall time management
A key aspect of managing time effectively is to recognize and
control things that tend to waste time. Following is a list of
what many salespeople consider some of the most common
time wasters:

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 Time management –
5
Overall time management

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 Time management –
5
Overall time management

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 Larana, Inc.

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