A. Complete and Submit Chapter Review Q’s 16.1
– 16.9
16.1 Describe how a salesperson is much like the individual
who owns and operates a business.
16.2 Opportunity management has been described as a four.dimensional
process. Describe each dimension.
16.3 List and briefly describe the four goal.setting
principles.
16.4 List four techniques the salesperson should use to make
better use of valuable selling time.
16.5 Effective territory management involves two major
steps. What are they?
16.6 What is a sales call plan? Explain how it is used.
16.7 Describe the most common records kept by salespeople.
16.8 What is the definition of “stress”? What are some
indicators of stress?
16.9 Table 16.2 (on page 345) describes six “five.minute
stress busters” to reduce stress. Which of these do you think are most
important for persons employed in the sales field? Explain
B. Complete and Submit Chapter 17 Review
Q’s17.1 – 17.9
17.1 What is the difference between leadership and
management?
17.2 Are all sales managers’ duties the same? Explain.
17.3 What are the two main leadership qualities displayed by
most successful sales managers? Define and explain each of these qualities.
17.4 List and describe the four basic steps involved in
coaching.
17.5 What is a job description? Explain the importance of
job descriptions in selecting salespeople.
17.6 What are four sources of recruiting new salespeople?
17.7 What should sales managers look for in selecting new
salespeople? Describe at least three important qualities.
17.8 List and describe three guidelines that should be
followed when you design a sales motivation program based on external rewards.
17.9 List and describe the five basic compensation plans for
salespeople.
chapter_16.pdf
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16 Opportunity Management: The Key to Greater
Sales Productivity
Source: Julio Melara
Learning Objectives
When you finish reading this chapter, you should be able to
1 Discuss the four dimensions of opportunity management
2 List and describe time management strategies
3 Explain factors that contribute to improved territory management
4 Identify and discuss common elements of a records management system
5 Discuss stress management practices
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MyMarketingLab™
Improve Your Grade!
Over 10 million students improved their results using the Pearson MyLabs. Visit mymktlab.com for
simulations, tutorials, and end-of-chapter problems.
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Julio Melara, President, Baton Rouge
Business Report
Julio Melara (pictured above), born to Honduran immigrant
parents, made work the centerpiece of his life at an early age.
Throughout high school, he cut grass, worked as a busboy,
delivered newspapers, and sold newspaper subscriptions. While
attending college, he worked as a courier with New Orleans
City Business, a local business newspaper. By age 23, he was
top producer and head of national sales. Later he left the
newspaper and went into radio-advertising sales. By age 28,
Melara had broken all sales records at radio station WWL and
had become the radio’s first million-dollar producer. He is a
self-motivated person who says that he has learned a great deal
from such books as The Power of Positive Thinking by Norman
Vincent Peale. He is also someone who believes in management
of self. Goal setting is the central theme of Melara’s sales
philosophy ([no longer online] www.juliomelara.com). He
believes that written goals (personal and professional) facilitate
growth and success.1
Today, Julio Melara is sharing his no-nonsense steps for
achieving success with audiences throughout America. Selling
Power magazine has named him one of America’s top
motivational speakers. He has shared the platform with such
distinguished Americans as Zig Zigler, Secretary of State Colin
Powell, Brian Tracy, and numerous business leaders.2
A salesperson is much like the individual who owns and
operates a business. The successful sales representative, like the
successful entrepreneur, depends on good self-management.
Both of them must keep their own records, use self-discipline in
scheduling their time, and analyze their own performance.
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Opportunity Management—A Four-Dimensional Process
1
Discuss the four dimensions of opportunity management
What makes a salesperson successful? Some people believe the most important factor is hard work. This
is only partly true. Some people work hard but do not accomplish much. They lack purpose and
direction. This lack of organization results in wasted time and energy. Hard work must be preceded by
careful planning. Every moment spent planning, according to some experts in self-management, saves
three or four moments in execution.3
Wasting time and energy is the key to failure in the age of information. Many salespeople are drowning
in information, and the flood of messages each day leaves little time to think and reflect. Sales and sales
support personnel, like most other knowledge workers, are working under tighter deadlines. The
response time to customer inquiries has been shortened and customers are less tolerant of delays. Thus,
prioritizing different sales-force decisions becomes important to managing productivity.4
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Most people who achieve success in selling have a strong work ethic. They are “self-starters” who are
committed to achieving their personal and professional goals.
Source: ABW Photography/Superstock
As pressures build, it’s easy to overlook opportunities to identify prospects, make sales, and improve
service to customers. The ability to perceive opportunities and seize them is an important characteristic
of high-achieving salespeople.5 Opportunity management
process consisting of the following components:
should be viewed as a four-dimensional
1. Time management. There are only about 250 business days per year. Within each day, there is
only so much time to devote to selling. Selling hours are extremely valuable. When salespeople
are asked to evaluate the major challenges they face in their work, “Not enough time” is often
rated number one. Dealing with information overload and achieving balance in their lives are
also major challenges.
2. Territory management. A sales territory is a group of customers and prospective customers
assigned to a single salesperson. Every territory is unique. Some territories consist of one or two
counties, whereas others encompass several states. The number of accounts within each territory
also varies. Today, territory management is becoming less of an art and more of a science.
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3.
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Records management. Every salesperson must maintain a certain number of records. These
records help to “systematize” data collection and storage. A wise salesperson never relies on
memory. Some of the most common records include planning calendars, prospect forms, call
reports, summary reports, and expense reports.
4. Stress management. A certain amount of stress comes with many selling positions. Some
salespeople have learned how to take stressful situations in stride. Others allow stress to trigger
anger and frustration. Learning to cope with various stressors that surface in the daily life of a
salesperson is an important part of the self-management process.
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Selling is Everyone’s Business Bill Blass
Connected with His Customers
Richard Drew/AP Images
The late Bill Blass, American fashion designer, understood the power of personal contact. He
also understood that he was working for his customers, not the other way around. Growing up in
Fort Wayne, Indiana, during the Depression, he often went to the movies to see Carole Lombard
and other stars. He sold his first fashion drawings to New York manufacturers when he was 14.
By 17, he had moved to New York and started to build relationships among the city’s social elite.
Although New York City became his home, he frequently traveled to places like St. Louis,
Houston, and Detroit for trunk shows. Bill Blass was one of the first designers to travel with his
collections and was generally regarded as the king of the trunk show. He felt it was important to
connect with women who were willing to spend $3,500 for a suit. Thus, he built his global
reputation one woman at a time.a
Time Management
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2
List and describe time management strategies
A salesperson can increase sales volume in two major ways. One is to improve selling effectiveness, and
the other is to spend more time in face-to-face selling situations. The latter objective can be achieved
best through improved time and territory management.
Improving the management of both time and territory is a high-priority concern in the field of selling.
These two closely related functions represent major challenges for salespeople.
Let us first look closely at the area of time management. There is definitely a close relationship between
sales volume and the number of customer contacts made by the salesperson. You have to make calls to
get results.
Time-Consuming Activities
Some salespeople who have kept careful records of how they spend their time each day are surprised to
learn how little is spent in face-to-face selling situations. A national survey of 1,500 salespeople from 13
industries found that, on average, salespeople spend 60 percent of their time
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on administrative duties or travel.6 Administrative duties can include such things as completion of sales
records and time spent on customer follow-through and follow-up. Salespeople need to carefully
examine all of their activities and determine whether too much or too little time is spent in any area. One
way to assess time use is to keep a time log. This involves recording, at the end of every hour, the
activities in which you were engaged during that time.7 At the end of the week, add up the number of
minutes spent on the various activities and ask yourself, “Is this the best use of my time?”
Once you have tabulated the results of your time log, it should be easy to identify the “time wasters.”
Pick one or two of the most wasteful areas, and then make plans to correct the problem. Set realistic
goals that can be achieved. Keep in mind that wasting time is usually a habit. To manage your time more
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effectively, you need to form new habits. Changing habits is hard work, but it can be done.8
Time Management Methods
Sound time management methods can pave the way to greater sales productivity. The starting point is
forming a new attitude toward time conservation. You must view time as a scarce resource not to be
wasted.9 The time-saving strategies presented here are not new, nor are they unique. They are being used
by time-conscious people in all walks of life.
Develop a Series of Personal Goals
According to Alan Lakein, author of How to Get Control of Your Time and Your Life, the most important
aspect of time management is knowing what your goals are. He is referring to all goals—career goals,
family goals, and life goals. People who cannot or do not sit down and write out exactly what they want
from life lack direction. Brian Tracy, who developed the “Law of Direction,” says, “Your ability to set
clear, specific goals will do more to guarantee you higher levels of success and achievement than any
other single skill or quality.”10
The goal-setting process requires that you be clear about what you want to accomplish. If your goal is
too general or vague, progress toward achieving that goal is difficult to observe. Goals such as “I want to
be a success” or “I desire good health” are much too general. The major principles that encompass goal
setting are outlined in Table 16.1
.
TABLE 16.1 Goal-Setting Principles
The following goal-setting principles give you the power to take control of the present and the future.
Source: Based on Personal Development Seminars presented by Barry L. Reece
1. Reflect on the things you want to change in your life. Then prepare written goals that are specific,
measurable, and realistic.
2. Develop a written goal-setting plan that includes the steps necessary to achieve the goal. Review
your plan daily—repetition increases the probability of success.
3. Modify your environment by changing the stimuli around you. This may involve finding a mentor
or spending less time with persons who are negative.
4. Monitor your behavior, and reward your progress. Reinforcement from yourself and/or others is
necessary for change.
Goals have a great deal of psychological value to people in selling. Sales goals, for example, can serve
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as a strong motivational force. To illustrate, let us assume that Maria Paulson, sales representative for a
cosmetics manufacturer, decides to increase her sales by 15 percent over the previous year. She now has
a clear goal to aim for and can begin identifying specific steps to achieve the new goal.
Maria Paulson has established a long-term goal as part of a yearly plan. Some goals require considerable
time and should be part of a one-year plan. Next, Maria should set aside an hour or so at the end of each
month to decide what she wants to accomplish during the coming month. Weekly planning is also
important. Once a week—Friday is a good time—set goals for the next week and develop a plan for
reaching them. Finally, Maria should develop a daily plan.11
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Prepare a Daily “To Do” list
Sales professionals who complete the time management course offered by FranklinCovey are
encouraged to engage in event control. This involves planning and prioritizing events every day.12 Start
each day by thinking about what you want to accomplish. Then write down the activities (
Figure 16.1
). Putting your thoughts on paper (or in your computer) forces you to clarify your
thinking. Heather Gardner, a regional director with the Chicago investment firm William Blair &
Company, records her daily planned activities in her BlackBerry and Microsoft Outlook calendar. On a
typical day, the BlackBerry will show entries for every half hour. Gardner works through her detailed “to
do” list by adhering to one unshakable rule: Avoid nonpaying activities during working hours.13
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FIGURE 16.1
A daily list of activities can help us set priorities and save time. Today, this list is recorded electronically
in most CRM systems. The list is one of the first things salespeople see when they access the software
each day.
Now you should prioritize your “to do” list and do not let outside distractions interfere with your plan.
Begin each day with the highest-priority task.
Maintain a Planning Calendar
Ideally, a salesperson needs a single place to record daily appointments (personal and business),
deadlines, and tasks. Unfortunately, many salespeople write daily tasks on any slip of paper they can
find—backs of envelopes, three-by-five cards, napkins, or Post-it notes. Hyrum W. Smith, author of The
10 Natural Laws of Successful Time and Life Management, calls these pieces of paper “floaters.” They
just float around until you either follow through on them or lose them. It’s a terribly disorganized
method for someone who wants to gain greater control of his or her life.14
The use of floaters often leads to the loss of critical information, missed appointments, and lack of focus.
Select a planning calendar design (the FranklinCovey Day Planner is one option) that can bring
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efficiency to your daily planning efforts. You should be able to determine at a glance what is coming up
in the days and weeks ahead (Figure 16.2
).
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Many salespeople are using personal digital assistants
(PDAs) to organize information. Small
PDAs available from Apple or BlackBerry offer many of the features common to laptop computers. The
salesperson can send and receive e-mails or text messages and download important customer
information. Salespeople can also input their customer notes immediately after a sales call. The PDA
also serves as an electronic memo pad, calendar, expense log, address book, and more. These organizers
can be used to keep track of appointments and serve as a perpetual calendar.
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FIGURE 16.2 Monthly Planning Calendar Sample
Shown are 11 days of a monthly planning calendar for a computer-service sales representative. Monthly
planning calendars such as this one are now a key function of most CRM systems.
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Organize Your Selling Tools
You can save valuable time by finding ways to organize sales literature, business cards, order blanks,
samples, and other items needed during a sales call. You may waste time on a callback because some
item was not available during your first call. You may even lose a sale because you forgot or misplaced a
key selling tool.
If you have a great deal of paperwork, invest in one or more file systems. Some salespeople purchase
small, lightweight cardboard file boxes to keep their materials organized. These boxes can be placed
easily in your car trunk and moved from one sales call to another. The orderly arrangement of selling
tools is just one more method of time conservation.
The key to regular use of the four time-saving tools described previously is commitment. Unless you are
convinced that efficient time management is important, you will probably find it difficult to adopt these
new habits. A salesperson who fully accepts the “time is money” philosophy uses these methods
routinely.
Saving Time with Meetings in Cyberspace and Other Methods of
Communication
As the cost of travel increases, more salespeople are asking the question, “Is this trip necessary?” Instead
of traveling to a customer’s office, some salespeople schedule a conference call. A modern alternative to
this type of call is a meeting in cyberspace. The voice of each meeting participant travels over an audio
connection and attendees view visuals on their desktop computers. Nerac Inc., an information-services
company, often schedules a Web conference for potential customers. The sales representative can bring
online a Nerac researcher who presents an introduction to the company’s closely guarded databases.
Clients get to watch the researcher at work over the Internet.15
Some customers actually prefer telephone contact for certain types of business transactions. Some
situations in which the phone call is appropriate follow:
Call the customer in advance to make an appointment. You save time, and the customer knows when
to expect you.
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Use the telephone to keep the customer informed. A phone call provides instant communication with
customers at a low cost.
Build customer goodwill with a follow-up phone call. Make it a practice to call customers to thank
them for buying your product and to determine whether the customer is satisfied with the purchase.
Some customers prefer to be contacted by e-mail, and it would be a mistake to ignore their preference.
Busy people often discourage telephone calls as a means of minimizing interruptions.
Voice mail–au …
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