Part II

SALES FORCE ACTIVITIES

Chapter 3:
Sales Opportunity
Management
Sales Opportunity Management

Generating Managing Sales Personal

New Existing Versus Time
Accounts Accounts Profits Management
Developing a Prospect List

1. Direct Inquiry
Advertising
Direct Mail
Trade publications
Trade shows
2. Directories – Thomas Register
3. Referrals
4. Cold Canvassing
Qualifying Prospects

1. Needs for your products/services

2. Authority to make purchase
3. Credit rating & ability to pay
4. Rating scale applied to characteristics
by each salesperson
Table 3-1 Computing the Cost per Call for an Industrial Products Salesperson
Compensation
Salary, commissions, and bonus $69,035
Fringe benefits (hospital, life insurance, social security) $10,985 $80,020
Direct Selling Expenses

Automobile 8,000
Lodging and meals 6,250
Entertainment 3,250
Communications 4,500
Samples, promotional material 1,750
Miscellaneous 1,700 25,450
Total Direct Expenses $105,470
Calls Per Year
Total available days 260 days
Less:
Vacation 10 days
Holidays 10 days
Sickness 5 days
Meetings 18 days
Training 12 days 55 days
Net Selling Days 205 days
Average calls per day 3 calls
Total Calls per Year (205 X 3) 615 Calls
Average Cost per Call ($105,470/615) $171.50
Table 3-2 Sales Force Costs Across Selected Industries

Industry Sales Force Costs as

A Percentage of Sales
------------------------------------------------------------------------------------------------
Banking 0.9%
Business services 10.5
Chemicals 3.4
Communications 9.9
Construction 7.1
Electronic components 4.9
Electronics 12.6
Fabricated metals 7.2
Food products 2.7
Instruments 14.8
Machinery 11.3
Manufacturing 6.6
Office equipment 2.4
Paper/allied products 8.2
Pharmaceuticals 5.6
Printing/publishing 22.2
Rubber/plastics 3.6
Wholesale (consumer) 11.2
Sales Opportunity Management
Key to Productivity

Breakeven Sales Volume

(Cost per Call) x (Number of Calls to Close)

Sales Calls as a % of Sales
How Dell Achieves Selling Efficiencies
Traditional Model Internet Model
100,000 100,000
Catalog Drops Website Visits

5,000
10,000
Calls
Calls

2,000 500 1,750

Orders E-Orders Orders
 Table 3-3: ABC Account Classification

No. of Total Sales Total Total calls Sales ($)

Account Accts. Accts. (000) Sales Per Classif. Per Call
Classification (1) (2) (3) (4) (5) (6)

A 21 15% $910 65% 105 $8,667

B 28 20 280 20 140 2,000
C 91 65 210 15 455 462
Totals 140 100% $1,400 100% 700 $2,000
 Figure 3-1: Portfolio Model

Competitive Position
Strong Weak
Core Growth
Accounts Accounts
High Accounts are very Accounts are potentially
attractive. attractive.
Invest heavily in selling May want to invest
resources. in heavily
Drag Problem
Accounts Accounts
Low Accounts are moderately Accounts are very
attractive. unattractive.
Invest enough to maintain Minimal investment
current position. of selling resources.
 $20,000

$10,000

1 2 3 4 5 6
Number of Sales Calls Per Quarter

Figure 3-2: Number of Sales Calls Response Function

 24 19 17
Unqualified 20 16 14
15 23
13 21 22 18

12 11 50% closure
9 probability
10
Qualified
7 5 75% closure
probability
8 6

3 4 90% closure
Best few probability
1 2

Figure 3-3: The Sales Funnel

Figure 3-4: How Salespeople Spend Their Time

Service
Calls
Selling
Administrative 13% Face-to-Face
Tasks
29%
16%

25%
17% Selling over
the phone
Waiting and
Travel
 Importance
High Low

High Emergencies Time

Wasters

Low Personal Recreation

Growth

Figure 3-5: Time Management