Sales Process Management Overview

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Questions and Answers

What is a primary characteristic of hybrid selling?

It is applicable only to large organizations.

It combines physical and digital sales methods. (correct)

It uses only digital methods for sales.

It focuses solely on customer preferences.

Which organizational model is likely to focus on balancing power dynamics and functional alignment?

Divisional model

Flat structure

Matrix model (correct)

Hierarchical model

In the context of sales channels, when would a company prefer direct sales over indirect sales?

When aiming for cost-effectiveness.

When dealing with complex products and high bargaining power. (correct)

When utilizing frequent intermediaries.

When products are simple and widespread.

What is the primary focus of behavior-based control in sales management?

Activities performed by sales staff. (A) Signup and view all the answers

What compensation method is most suitable for a 'hunter' type salesperson?

Performance-based incentives (A) Signup and view all the answers

What is one of the main benefits of implementing process management in sales?

Reduces waste and enhances outcomes (D) Signup and view all the answers

Which step of the selling process involves addressing customer concerns?

Overcoming objections (D) Signup and view all the answers

What is NOT an element of the lead generation process?

Closing the sale (A) Signup and view all the answers

Which strategy is primarily focused on retaining and growing existing customers?

Farming (D) Signup and view all the answers

What is a key measure used in the lead generation process?

Cost per lead (B) Signup and view all the answers

Which complaint management process element focuses on evaluating the resolution and feedback?

Evaluation (B) Signup and view all the answers

What can increase customer engagement and revenue through their products or services?

Increasing frequency of utilization (D) Signup and view all the answers

Which production approach is characterized by creating products only after receiving an order?

Make-to-order (D) Signup and view all the answers

Study Notes

Process Management in Sales

Process management ensures efficiency, effectiveness, and adaptability in sales.
A structured process helps provide value to both the company and customers by managing resources, reducing waste, and improving outcomes.

Main Elements of the Selling Process

The 7 steps in the selling process include prospecting, pre-approach, approach, presentation, overcoming objections, closing, and follow-up.

Lead Generation Process

Involves inbound (marketing) and outbound (cold calling/emailing).
Identifies, qualifies, nurtures, and converts leads.
Sales and marketing teams collaborate, communicate, and share tools.
Measured by lead number, conversion rate, and cost per lead.

Core and Farming Concept

Focuses on retaining and growing existing customers.
Farming emphasizes nurturing relationships to maximize customer loyalty and wallet share.

Increasing Frequency of Utilization

Encourages customers to use a product/service more frequently.
Strategies include promotions and rewards to increase engagement and revenue.

Sales Process Analysis

Reviews and refines sales processes to boost efficiency, reduce costs, and improve customer satisfaction.
Evaluates key performance indicators (KPIs) to identify bottlenecks.

Complaint Management Process

Elements include complaint receipt, processing, response, control, and evaluation.
Aims to enhance customer satisfaction, prevent negative reactions, improve products/services, and foster loyalty.

Benefits of Professional Complaint Management

Improves customer satisfaction and retention.
Enhances product quality and service.
Reduces churn and cost management.

Four Production Approaches and Order Processing

Make-to-stock (inventory-based)
Assemble-to-order (customized assembly)
Make-to-order (built per order)
Engineer-to-order (custom solutions).
Order processing aligns with pre-production, production, and post-production phases.

Face-to-Face Communication

Necessary when the product is complex, high-stakes, or the customer demands personal interaction.

The Future of Selling

Combines physical and digital sales methods.
Addresses varied customer preferences, and enhances efficiency.

Designing a Sales Organization

Organizations can choose models like hierarchical, matrix, or modular structures.
Balances power dynamics and functional alignment.

Structure/Processes Follow Strategy

Organizational design and processes should align with strategic goals.
May involve restructuring teams to focus on customers.

Direct vs. Indirect Sales Channels

Direct: Suitable for complex products with high bargaining power and limited intermediaries.
Indirect: Effective for simple products with widespread customers and cost-effectiveness.

Upsala Model

Provides a framework for international companies to expand incrementally.
Starts with low-risk methods like exporting before moving to subsidiaries or joint ventures.

Behavior-Based vs. Outcome-Based Control

Behavior-Based: Focus on sales activities (e.g., number of calls).
Outcome-Based: Focus on results (e.g., sales revenue).

Compensation Methods

Includes salary, commissions, expense reimbursements, and hybrid models.
Plans are tailored to specific roles and organizational goals.

Motivating Different Types of Salespeople

Hunters: Focus on performance-based incentives (bonuses).
Farmers: Focus on customer retention and upselling.
Supporters: Focus on recognition and role enrichment.

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Description

This quiz covers the essential aspects of process management in sales, including the selling process steps, lead generation techniques, and the importance of customer retention. Learn how effective management can improve outcomes and foster collaborations between sales and marketing teams.