Salesforce Organization and Customer Relationships Presentation
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Questions and Answers

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?

<p>Shared interests from the buyer's perspective (C)</p> Signup and view all the answers

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

<p>The role of relationships in sales management (C)</p> Signup and view all the answers

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

<p>Relationships as one of the key components of sales strategy (B)</p> Signup and view all the answers

What does the OGSM framework stand for?

<p>Objectives, Goals, Strategy, Measures (B)</p> Signup and view all the answers

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

<p>Growth (D)</p> Signup and view all the answers

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

<p>Achieving relationship objectives with customer accounts (D)</p> Signup and view all the answers

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

<p>It leads to excessive micromanagement (A)</p> Signup and view all the answers

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

<p>Shaping business relationships (A)</p> Signup and view all the answers

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

<p>To support relationship objectives (D)</p> Signup and view all the answers

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

<p>By setting measurable goals for objectives (C)</p> Signup and view all the answers

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

<p>Efficiency (C)</p> Signup and view all the answers

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

<p>Number of sales managers levels (B)</p> Signup and view all the answers

How does structure influence an organization's culture?

<p>By shaping employee behavior (B)</p> Signup and view all the answers

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

<p>Process (B)</p> Signup and view all the answers

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

<p>Partnerships between organizations (D)</p> Signup and view all the answers

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

<p>Providing governance (B)</p> Signup and view all the answers

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

<p>By ensuring cross-functional collaboration (C)</p> Signup and view all the answers

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

<p>Focus on hiring and developing salespeople (C)</p> Signup and view all the answers

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

<p>To identify activities that can impact purchasing decisions (A)</p> Signup and view all the answers

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

<p>Customer acquisition, customer expansion, and customer retention (D)</p> Signup and view all the answers

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

<p>Driving profits and shareholder value (D)</p> Signup and view all the answers

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

<p>The value a customer brings to a company over their entire relationship (C)</p> Signup and view all the answers

How is customer equity calculated according to the text?

<p>Cash flow from the customer over the relationship minus associated costs (B)</p> Signup and view all the answers

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

<p>A quarter million dollars (A)</p> Signup and view all the answers

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

<p>It contributes to long-term profits and shareholder value (D)</p> Signup and view all the answers

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

<p>Managing business-to-business customer relationships (B)</p> Signup and view all the answers

How does customer lifetime value contribute to customer equity?

<p>By improving calculations that contribute to customer equity (D)</p> Signup and view all the answers

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

<p>To grow mutual beneficial interests and add value to customer equity (B)</p> Signup and view all the answers

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

<p>Driving customer equity by enhancing relationships with existing customers. (B)</p> Signup and view all the answers

What is the main focus of procedural control?

<p>Preventing interference from outside agents (A)</p> Signup and view all the answers

In the context of the text, who are gatekeepers?

<p>People controlling the buying process (B)</p> Signup and view all the answers

What does a forward-looking firm primarily focus on?

<p>Proactive strategies (A)</p> Signup and view all the answers

Why is the search for information crucial for businesses?

<p>To impact their decision-making process (C)</p> Signup and view all the answers

How does procedural control affect the buying process?

<p>By discouraging outside interference (B)</p> Signup and view all the answers

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

<p>Fostering forward-looking strategies (B)</p> Signup and view all the answers

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

<p>Duration of the customer relationship (D)</p> Signup and view all the answers

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

<p>Reflects the cash flow and costs over the customer's lifetime (D)</p> Signup and view all the answers

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

<p>To achieve relationship objectives with accounts (B)</p> 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?

<p>Increased merger possibilities (B)</p> Signup and view all the answers

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

<p>Customer equity analysis (C)</p> Signup and view all the answers

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

<p>Promoting relationship objectives integration (C)</p> Signup and view all the answers

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

<p>On a continuum between full overlap and no overlap of interests (C)</p> Signup and view all the answers

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

<p>Enhancing merger possibilities (A)</p> Signup and view all the answers

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

<p>Shared interests and overlap between buyer and seller goals (D)</p> Signup and view all the answers

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

<p>Cooperation, legal bonds, relationships, specific adaptations (C)</p> Signup and view all the answers

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

<p>They reassess their needs (A)</p> Signup and view all the answers

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

<p>To evaluate supplier performance (B)</p> Signup and view all the answers

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

<p>Understanding buyers' procurement and decision-making processes (A)</p> Signup and view all the answers

How do strong linkages across organizations affect firm boundaries?

<p>They blur firm boundaries (C)</p> Signup and view all the answers

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

<p>Evaluate different alternatives (A)</p> Signup and view all the answers

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

<p>To enhance coordination and collaboration (B)</p> Signup and view all the answers

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

<p>To structure around serving customers effectively (C)</p> 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?

<p>Assessing supplier performance (A)</p> Signup and view all the answers

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

<p>Fostering innovation and adaptation (C)</p> Signup and view all the answers

What does customer equity represent for a firm?

<p>The total discounted lifetime value of all of its customers (D)</p> Signup and view all the answers

How is customer equity estimated?

<p>By computing the net present value of cash flows derived from customer relationships (D)</p> Signup and view all the answers

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

<p>Number of employees in the firm (D)</p> Signup and view all the answers

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

<p>Turning a new client into an advocate (B)</p> Signup and view all the answers

How are outflows computed in the context of customer equity?

<p>Through the total amount of money spent on customer relationships (A)</p> Signup and view all the answers

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

<p>$Inflows - Outflows$ (B)</p> Signup and view all the answers

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

<p>'Marin' is the margin on purchases (A)</p> Signup and view all the answers

Why are inflows computed based on net present value?

<p>To represent future cash flows in today's terms (A)</p> Signup and view all the answers

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

<p>It generates substantial value for the firm (B)</p> Signup and view all the answers

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

<p>The number of products sold per period (A)</p> Signup and view all the answers

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

<p>Competitive negotiations (B)</p> Signup and view all the answers

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

<p>Personal trust (A)</p> Signup and view all the answers

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

<p>Affective commitment (B)</p> Signup and view all the answers

What concept fits best with a strategy of pursuing mutually-beneficial interests?

<p>Cooperative negotiations (C)</p> Signup and view all the answers

What is the focus of personal trust according to the text?

<p>Affective commitment (D)</p> Signup and view all the answers

Why is efficacy of proposed solutions important in business relationships?

<p>To deliver promised results (B)</p> Signup and view all the answers

What does business trust primarily focus on?

<p>Building a better partnership (D)</p> Signup and view all the answers

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