Management Board Strategy
The paper discusses three sales management strategies that are currently being used. Each of the strategy is analyzed in detail. The entity benefits, disadvantages and practical applications are discussed for each of the strategies.
Today, the world economy is becoming more and more complicated because it is becoming increasingly global. As a result, this leads to the development of unrivaled competitiveness. Of course in such a situation, it is extremely important that survival remains in the market to remain competitive, demanding the most advanced technologies, including not only technical aspects but also management. This means that a company that uses the most advanced and most effective management strategies can be competitive and have more chances of success. This is especially important when the company handles the sales management.
The sales management is one of the most important parts of any company’s job as it can eventually sell the company its products or services to customers due to sales management. The overall success of the company depends largely on the effectiveness of the sales management. Consequently, it is imperative to use the recent trends and strategies used today well by the most successful companies that will realize what strategies are the most perspective, what are their advantages and disadvantages, and lastly, it would be possible to define what strategies may be used in the future or in which way current strategies need to be adapted to be most effective. In terms of this paper, three sales management strategies will basically analyze and discuss. These strategies are: Establish a never-before-sale quote, establish and build a team sales program, use Advanced Prospecting
Establish a never-before-
sale quote This sales management strategy deals with the market visibility issue, as companies often experience problems in this regard and, consequently, cannot afford competitiveness and their sales rate will gradually decrease as the company is not known or recognizable under the consumers. Traditionally, it is said that if the company’s percentage percentage of new equipment sales to customers who have never done business with this particular company and its retailer is 20-23% or even lower if the company clearly has visibility issues. Consequently, the circle of the company’s influence in such a situation is not expanded, as well as the rate of sales, and is unlikely to increase if certain measures are not taken. Basically, such companies can work for about three years as they should retire.
However, if a company intends to work in a long-term perspective, the company should set a 30-35% rate as a never-before-purpose for each of its equipment and product support vendors. For example, 30-35% should be with accounts that have never before done business with the merchant and may not even know it exists. As a result, such an increase in the company’s visibility in the market will increase its sales figure proportionally.
By the way, it should be pointed out that if the company only starts a business in a new area, the rate should be even higher. Basically, specialists point out that it would only be about 45-50% (George 2002) if such conditions would gradually increase the sales and influence of the company.
Nonetheless, this is only theory and the benefits of this strategy are obvious as the growing visibility is of great importance for increasing company sales, but in real life the company using this strategy may have some disadvantages to the disadvantage. the strategy can be seen. It should be mentioned that the ‘Never-Before Sales Quota’ strategy is based on the never-before-motivation of clients and almost always feels the customers fear. They are afraid of the company’s reliability, its equipment, which, as they were scared, would not work as promised, and the list could continue.
Of course, the question arises: how can the company overcome the fear of customers best in the eternal account? Basic specialists (Reilly 2000 and Goerge 2002) set out two main ways to overcome this problem. So, the problem can be solved by short-term rental and product support.
Obviously the two ways mentioned above are not the only ones, but they are probably the easiest. The use of short-term lease and product support is relatively easy to never penetrate, as strong, knowledgeable customer service capabilities are demonstrated with an aggressive, short-term rental program and highly responsive parts and service programs. A company can quickly build a positive build. relationship in the new account (Reilly 2001, p.184).
Furthermore, a very effective maintenance and maintenance tool is the planned maintenance contract. For example, the planned maintenance and maintenance leases are currently being rapidly adopted in North America in construction equipment and heavy truck operations.
Finally, the benefits of this strategy can be mentioned, among other things, that short-term lease and product support capabilities can ultimately eliminate the fear and sales friction in the eternal account. So, summarizing the Never-Before Sales Quota Strategy, it is possible to say that it can be quite effective on the one hand and increase the visibility of the company, but there is still a risk that customers may be scared will not be overcome.
Establish and Build a Team Sales Program
This is another strategy that can improve the company’s sales volume and overall market position. Traditionally, traders have three or four different employees working in the same area. Traditionally, they are: a salesperson for capital equipment, a full-time customer service and sales representative, one or more field service technicians and, as a rule, a rental and used equipment sales representative.
The problem, however, is that team sales sometimes do not work. But the root of the problems lies in the fact that the equipment salesperson is in conflict with these other merchant representatives and does not regard their allies or partners in development activities. Today, such a situation is no longer affordable and such representatives should be eliminated, or it would be better to say, change.
Establishing and building a team sales program strategy implies quite the opposite of the role of all company representatives. Nowadays, this strategy is becoming increasingly common. Therefore, in some very successful merchant organizations, it prefers the thoughtful formation of territorial sales teams, but it should be pointed out that not only the composition of field workers is too coarse and the equipment providers with clues (McBride 2001, p.311). Team sales require enlightened leadership. Due to the unity of all the reps as a team, it is necessary to organize team activities.
In practice, this means that sales team activity is a regular meeting of specialists to share insights, set strategies, establish goals for gathering information, which will ultimately complement one another and work together to help the general business development of the merchant in the promote given market area. .
It should also be said that this strategy requires team-selling recognition awards that will stimulate the work of the entire team, but not its separate participants. It is also particularly effective in account management and penetration, new account development, problem-solving success, market share profit.
A very important positive feature of team sales is the fact that it allows you to make use of all the resources. Team sales capture the mind and spirit of the company’s business and can offer total solutions to clients (McBride 2001, p.349). An effective sales team creates the highest possible revenue and profit for the business.
Summary of the strategy, it has just been pointed out that its main drawbacks are the difficulty of organizing all representatives in an effective sales team with a strong leader.
Using Advanced Prospecting Technologies
This strategy implies the use of advanced and prospective technology as tools to achieve better sales figures. The most effective technology that can be used nowadays is telecommunications. It is reasonably effective and inexpensive. The purpose of the telecommunications prospecting program is to contact, profile and identify short-term needs, problems and opportunities of a large number of inactive and prospective clients.
To achieve such a goal, it is necessary to train a teleprojector by updating the company’s current client’s mailing list for the correct contact mail promotion. It is also important to train a telecoms caller for cold calling by having his / her first test a survey questionnaire or maintenance guide on five very friendly clients for constructive feedback. In addition, proper facilities and resources must be set up.
However, this strategy also has its own disadvantages. To be effective, the prospecting program will require intensive administrative support to avoid wasted, non-productive time. Otherwise, the effectiveness of the program would be low.
Finally, challenging incentives are needed. For example, it is possible to set three goals for the completion of the week and provide a 20% base hourly rate increase for the entire week if that goal is met. This can be done as follows: