D099 Sales Management Notes
Sales Management
(Western Governors University)
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,D099 – Sales Management
UNIT 2: Selling and Buying
MODULE 1:
Marketing - Business function that identifies, satisfies, and retains customers through a set of activities related to
creating, communicating, delivering, and exchanging offerings that have value for the customer.
Relationship Selling - Sales technique that focuses on the interaction between the buyer and the salesperson rather than
the price or details of the product.
Value Creation - the performance of actions that increase the worth of goods, services, or even a business.
Lesson 1
Sales Process - incorporates actually selling the company's products or service to its customers.
Customer Loyalty - having a positive attitude toward a product or brand, which induces supportive behavior from the
customer.
Brand Trust - the willingness of the average consumer to rely on the ability of the brand to perform its stated function.
Personal Selling - a type of selling that uses person-to-person interaction to sell products and services.
Key Objectives of a Sales Department:
1. Generating customers and converting sales
2. Retaining current customers
3. Developing a sales forecast
4. Ensuring product-market fit
Conversion Rates - the percentage of prospective customers who take a specific action you want.
Sales Forecast - the process of estimating future sales.
Operational Budget - a plan for expenditures required to maintain the functioning of a business venture or public
organization.
Profitability - the ability of a company to use its resources to generate revenues in excess of its expenses.
Product-Market Fit - the degree to which a product satisfies a strong market demand.
Corporate Structure - an organization's different departments or business units within a company to achieve its overall
mission and goals.
Functional Structure - an organization structure that groups employees according to a specialized or similar set of roles
or tasks.
Modular Structure- divides the business into small, tightly knit strategic business units (SBUs), which focus on specific
elements of the organizational process.
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, Strategic Business Units (SBUs) - a profit center that focuses on product offering and market segment.
Value Chain - the process or activities by which a company adds value to a product, including production, marketing, and
the provision of after-sales service.
Competitors - firms that provide similar products or services and try to attract the same customers.
Competitive Advantage - a condition or circumstance that puts a company in a favorable or superior business position.
Sustainable Competitive Advantage - company assets, attributes, or abilities that are difficult to duplicate or exceed and
provide a superior or favorable long-term position over competitors.
Several Factors to Develop Sustainable Competitive Advantage:
1. Customer loyalty
Loyalty Card - a card issued by a store to a customer and used to record credit points awarded for money
spent in the store. Can also be a credit card tied to a brand, which then tracks what and where clients
purchase.
2. Location
3. Distribution and information systems
4. Unique merchandise
5. Vendor relations
6. Customer service
7. Multiple source advantage
Algorithm - a process or set of rules to be followed in calculations or other problem-solving operations, especially by a
computer.
Customer Relationship Management (CRM) - processes implemented by a company to handle its contact with
customers with the goal of creating a unified customer experience to maximize retention.
Business Intelligence (BI) - the use of data in an enterprise to facilitate decision-making. It encompasses understanding
the actual operation of the company, as well as the anticipation of future events, with the aim of providing knowledge to
support business decisions.
Big Data Analytics - large, complex data sets that require non-traditional data processing software to predict trends and
forecasts.
Business-to-Business (B2B) - sales to another company that consumes the product or services as part of operating the
business or uses the product in the assembly of the final product it sells to consumers.
Ethics - a set of moral standards for judging whether something is right or wrong.
Organizational Ethics - the principals and standards by which businesses operate and it is how an organization responds
to an internal or external stimulus. Organizational ethics is interdependent with the organizational culture.
Code of Ethics - a document that outlines the mission and values of the business or organization, how professionals are
supposed to approach problems, the ethical principles based on the organization's core values, and the standards to
which the professional is held.
Uniform Commercial Code (UCC) = a comprehensive set of laws governing all commercial transactions in the United
States.
American Marketing Association Code of Conduct/Ethics (AMA) - American Marketing Association's standard of
professional ethical norms and values for its members (practitioners, academics and students).
Lesson 2
Marketing Concept - identifying consumer needs and then producing the goods or services that will satisfy those needs
while making a profit for the organization.
"Right" Principle - getting the right goods or services to the right people at the right place, time, and price, using the
right promotional techniques.
Exchanges - the process in which two parties give something of value to each other to satisfy their respective needs.
Output - the act of producing something, the amount of something produced, or the process in which something is
delivered.
Inputs - the resources invested in accomplishing a task, and typically include time, money, and effort.
messages.downloaded_by
Sales Management
(Western Governors University)
messages.downloaded_by
,D099 – Sales Management
UNIT 2: Selling and Buying
MODULE 1:
Marketing - Business function that identifies, satisfies, and retains customers through a set of activities related to
creating, communicating, delivering, and exchanging offerings that have value for the customer.
Relationship Selling - Sales technique that focuses on the interaction between the buyer and the salesperson rather than
the price or details of the product.
Value Creation - the performance of actions that increase the worth of goods, services, or even a business.
Lesson 1
Sales Process - incorporates actually selling the company's products or service to its customers.
Customer Loyalty - having a positive attitude toward a product or brand, which induces supportive behavior from the
customer.
Brand Trust - the willingness of the average consumer to rely on the ability of the brand to perform its stated function.
Personal Selling - a type of selling that uses person-to-person interaction to sell products and services.
Key Objectives of a Sales Department:
1. Generating customers and converting sales
2. Retaining current customers
3. Developing a sales forecast
4. Ensuring product-market fit
Conversion Rates - the percentage of prospective customers who take a specific action you want.
Sales Forecast - the process of estimating future sales.
Operational Budget - a plan for expenditures required to maintain the functioning of a business venture or public
organization.
Profitability - the ability of a company to use its resources to generate revenues in excess of its expenses.
Product-Market Fit - the degree to which a product satisfies a strong market demand.
Corporate Structure - an organization's different departments or business units within a company to achieve its overall
mission and goals.
Functional Structure - an organization structure that groups employees according to a specialized or similar set of roles
or tasks.
Modular Structure- divides the business into small, tightly knit strategic business units (SBUs), which focus on specific
elements of the organizational process.
messages.downloaded_by
, Strategic Business Units (SBUs) - a profit center that focuses on product offering and market segment.
Value Chain - the process or activities by which a company adds value to a product, including production, marketing, and
the provision of after-sales service.
Competitors - firms that provide similar products or services and try to attract the same customers.
Competitive Advantage - a condition or circumstance that puts a company in a favorable or superior business position.
Sustainable Competitive Advantage - company assets, attributes, or abilities that are difficult to duplicate or exceed and
provide a superior or favorable long-term position over competitors.
Several Factors to Develop Sustainable Competitive Advantage:
1. Customer loyalty
Loyalty Card - a card issued by a store to a customer and used to record credit points awarded for money
spent in the store. Can also be a credit card tied to a brand, which then tracks what and where clients
purchase.
2. Location
3. Distribution and information systems
4. Unique merchandise
5. Vendor relations
6. Customer service
7. Multiple source advantage
Algorithm - a process or set of rules to be followed in calculations or other problem-solving operations, especially by a
computer.
Customer Relationship Management (CRM) - processes implemented by a company to handle its contact with
customers with the goal of creating a unified customer experience to maximize retention.
Business Intelligence (BI) - the use of data in an enterprise to facilitate decision-making. It encompasses understanding
the actual operation of the company, as well as the anticipation of future events, with the aim of providing knowledge to
support business decisions.
Big Data Analytics - large, complex data sets that require non-traditional data processing software to predict trends and
forecasts.
Business-to-Business (B2B) - sales to another company that consumes the product or services as part of operating the
business or uses the product in the assembly of the final product it sells to consumers.
Ethics - a set of moral standards for judging whether something is right or wrong.
Organizational Ethics - the principals and standards by which businesses operate and it is how an organization responds
to an internal or external stimulus. Organizational ethics is interdependent with the organizational culture.
Code of Ethics - a document that outlines the mission and values of the business or organization, how professionals are
supposed to approach problems, the ethical principles based on the organization's core values, and the standards to
which the professional is held.
Uniform Commercial Code (UCC) = a comprehensive set of laws governing all commercial transactions in the United
States.
American Marketing Association Code of Conduct/Ethics (AMA) - American Marketing Association's standard of
professional ethical norms and values for its members (practitioners, academics and students).
Lesson 2
Marketing Concept - identifying consumer needs and then producing the goods or services that will satisfy those needs
while making a profit for the organization.
"Right" Principle - getting the right goods or services to the right people at the right place, time, and price, using the
right promotional techniques.
Exchanges - the process in which two parties give something of value to each other to satisfy their respective needs.
Output - the act of producing something, the amount of something produced, or the process in which something is
delivered.
Inputs - the resources invested in accomplishing a task, and typically include time, money, and effort.
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