Salesforce Organization and Customer Relationships Presentation

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What is the primary way Professor Hunter suggests for organizing the salesforce?

By focusing on technology

By hiring a large number of salespeople

By investing heavily in process automation

Through their desired relationships with customer accounts (correct)

In the context of sales strategy, what does Professor Hunter mention as the other elements that need to integrate with structure?

Marketing tactics

Customer service initiatives

Process, technology, and people (correct)

Financial planning

What key aspect of sales organization design is highlighted as driving much of what Professor Hunter talks about?

Optimization of organizations (correct)

Advertising campaigns

Product development

Market research

According to Professor Hunter, what perspective should be used in driving the relationship objective with the buying organization?

Shared interests from the buyer's perspective Signup and view all the answers

What role does Professor Hunter highlight in sales management as being related to relationships and structure?

The role of relationships in sales management Signup and view all the answers

What does Professor Hunter mention as one of the objectives he wants to reflect on during the presentation?

Relationships as one of the key components of sales strategy Signup and view all the answers

What does the OGSM framework stand for?

Objectives, Goals, Strategy, Measures Signup and view all the answers

Which of the following components is NOT part of the OGSM framework?

Growth Signup and view all the answers

What is the primary focus of the relationship objectives in sales strategy?

Achieving relationship objectives with customer accounts Signup and view all the answers

Why is having too few employees under a manager a concern?

It leads to excessive micromanagement Signup and view all the answers

What major impact does structure have on an organization's strategy?

Shaping business relationships Signup and view all the answers

What is the main purpose of designing and aligning processes in sales strategy?

To support relationship objectives Signup and view all the answers

How does the OGSM framework help managers in planning their operations?

By setting measurable goals for objectives Signup and view all the answers

Which aspect of an organization is primarily influenced by a mechanistic structural focus?

Efficiency Signup and view all the answers

What is the main concern when determining the vertical structure of a sales organization?

Number of sales managers levels Signup and view all the answers

How does structure influence an organization's culture?

By shaping employee behavior Signup and view all the answers

Which component of strategy is heavily impacted by an organization's structure?

Process Signup and view all the answers

In organizational design, what does 'inter-organizational linkages' primarily refer to?

Partnerships between organizations Signup and view all the answers

What main function does the information and control systems serve in an organization?

Providing governance Signup and view all the answers

How does organizational structure impact the coordination of activities in a sales team?

By ensuring cross-functional collaboration Signup and view all the answers

What role do human resources policies play in sales organization design?

Focus on hiring and developing salespeople Signup and view all the answers

Why is understanding the buyer's journey crucial in structuring a sales organization effectively?

To identify activities that can impact purchasing decisions Signup and view all the answers

What are the three components of customer equity mentioned in the text?

Customer acquisition, customer expansion, and customer retention Signup and view all the answers

What is the primary goal of customer equity discussed in the text?

Driving profits and shareholder value Signup and view all the answers

What is Customer Lifetime Value (CLV) defined as according to the text?

The value a customer brings to a company over their entire relationship Signup and view all the answers

How is customer equity calculated according to the text?

Cash flow from the customer over the relationship minus associated costs Signup and view all the answers

What does General Motors estimate about a customer's relationship value based on the text?

A quarter million dollars Signup and view all the answers

In the context of customer equity, what is the significance of customer retention?

It contributes to long-term profits and shareholder value Signup and view all the answers

What is the role of sales organizations in driving customer equity according to the text?

Managing business-to-business customer relationships Signup and view all the answers

How does customer lifetime value contribute to customer equity?

By improving calculations that contribute to customer equity Signup and view all the answers

Why is developing relationships with the best customers emphasized in the text?

To grow mutual beneficial interests and add value to customer equity Signup and view all the answers

What does the text suggest is key to improving firm value through marketing programs?

Driving customer equity by enhancing relationships with existing customers. Signup and view all the answers

What is the main focus of procedural control?

Preventing interference from outside agents Signup and view all the answers

In the context of the text, who are gatekeepers?

People controlling the buying process Signup and view all the answers

What does a forward-looking firm primarily focus on?

Proactive strategies Signup and view all the answers

Why is the search for information crucial for businesses?

To impact their decision-making process Signup and view all the answers

How does procedural control affect the buying process?

By discouraging outside interference Signup and view all the answers

What role does the idea of a proactive focus play in businesses?

Fostering forward-looking strategies Signup and view all the answers

What is the main factor driving retention costs according to the text?

Duration of the customer relationship Signup and view all the answers

How does customer equity relate to sales, as described in the text?

Reflects the cash flow and costs over the customer's lifetime Signup and view all the answers

What is the purpose of building a sales structure according to the text?

To achieve relationship objectives with accounts Signup and view all the answers

In the context of business buyer-seller relationships, what does a full and complete overlap of interests between buyer and seller often lead to?

Increased merger possibilities Signup and view all the answers

Which concept helps in determining whether spending X amount of money on acquiring new customers is justified?

Customer equity analysis Signup and view all the answers

What is an important aspect of designing structure in business relationships as mentioned in the text?

Promoting relationship objectives integration Signup and view all the answers

How do most business buyer-seller relationships exist according to the text?

On a continuum between full overlap and no overlap of interests Signup and view all the answers

What is the significance of promoting shared interests in business relationships as mentioned in the text?

Enhancing merger possibilities Signup and view all the answers

What determines whether firms merge in business buyer-seller relationships according to the text?

Shared interests and overlap between buyer and seller goals Signup and view all the answers

What are the four major ways of creating and strengthening linkages across organizations?

Cooperation, legal bonds, relationships, specific adaptations Signup and view all the answers

In the buyer's decision-making process, what typically happens after they evaluate different alternatives?

They reassess their needs Signup and view all the answers

Why is it important to maintain a relational cycle with the buyer even after the sale is completed?

To evaluate supplier performance Signup and view all the answers

What is the main focus of the second block mentioned in the text?

Understanding buyers' procurement and decision-making processes Signup and view all the answers

How do strong linkages across organizations affect firm boundaries?

They blur firm boundaries Signup and view all the answers

What does the buyer typically do after determining some decision criteria?

Evaluate different alternatives Signup and view all the answers

What is one of the main reasons for blurring boundaries between firms?

To enhance coordination and collaboration Signup and view all the answers

Why is it essential to understand buyers' procurement processes according to the text?

To structure around serving customers effectively Signup and view all the answers

Which of the following is NOT a stage of the buyer's decision-making process as described in the text?

Assessing supplier performance Signup and view all the answers

What is one potential outcome of maintaining strong linkages across organizations, as mentioned in the text?

Fostering innovation and adaptation Signup and view all the answers

What does customer equity represent for a firm?

The total discounted lifetime value of all of its customers Signup and view all the answers

How is customer equity estimated?

By computing the net present value of cash flows derived from customer relationships Signup and view all the answers

Which factor is NOT considered when computing inflows for customer equity?

Number of employees in the firm Signup and view all the answers

What is considered an achievement that generates substantial value for the firm?

Turning a new client into an advocate Signup and view all the answers

How are outflows computed in the context of customer equity?

Through the total amount of money spent on customer relationships Signup and view all the answers

What is the formula for estimating the lifetime value of a customer?

$Inflows - Outflows$ Signup and view all the answers

What does 'marin' represent in the computation of inflows?

'Marin' is the margin on purchases Signup and view all the answers

Why are inflows computed based on net present value?

To represent future cash flows in today's terms Signup and view all the answers

What is the significance of turning a new client into an advocate?

It generates substantial value for the firm Signup and view all the answers

What is represented by 'capital Q' in computing inflows?

The number of products sold per period Signup and view all the answers

What type of negotiation focuses on serving our own self-interest?

Competitive negotiations Signup and view all the answers

What is a key component for successful relationships according to the text?

Personal trust Signup and view all the answers

What type of trust is more important in business-to-consumer selling?

Affective commitment Signup and view all the answers