Sales Objectives by Product and Market
Sales objectives should be made clear for specific products or services and for specific markets. Without that focus, sales representatives may spend their selling effort on the products they prefer and on the customers they prefer, rather than on those where the company would like selling effort. For example, Exhibit 22.3 shows a growth matrix (similar to what was discussed in Chapter 13).
Sales objectives should be made clear for specific products or services and for specific markets.
Suppose you are a salesperson. Who would you rather call on: a customer you know really well or someone you have never met? Many people prefer to talk to people they already know. Similarly, would you rather try to sell a product that you know very well because you have been selling it for a long time or a product that you have just heard about? It is true that salespeople want new products, but the comfort level for selling current products is often higher.
If sales representatives are spending their time on current customers and on current products, then what happens to the organization? It may die— strangled by its sales force—because new customers or new products are not receiving sufficient sales effort.
You can solve this effort problem a variety of ways. The most direct way is for you to assign objectives to specific products or services and to specific
TRUMP UNIVERSITY MARKETING 101 Exhibit 22.3 Allocating Sales Effort
Current Products New Products or Services or Services
Current Products New Products or Services or Services
markets, and then pay for attainment of each of those objectives. For example, some companies do not pay any sales bonus unless the objectives for every product or service and for every market are achieved. Another way for you to encourage attaining sales objectives for new customers and new markets is to improve training of salespeople through joint calls or product seminars. Such training can increase the comfort level of selling in new areas. Finally, you can establish two sales forces. Members of one sales force—the "farmers"— maintain relationships for current customers and current products. Members of the other sales force—the "hunters"—focus their efforts on new sales, new products, or new customers. Of course, to have two sales forces, there must be sufficient sales opportunities to support both of them.
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