Mark 470 Selling and Sales Management
Assignment 1: Developing a Sales Account Plan
Assignment Rationale
This assignment has three main purposes. First, the assignment will provide you with an
opportunity to apply the theoretical concepts associated with the strategic planning
process. Second it will give you an opportunity to implement the SPIN selling formula.
Third it will show you how a customer account plan is developed.
The relevant theoretical concepts that are to be applied in this assignment are described in
the following readings:
1. Spiro, Rosann L, Stanton, William J, Rich, Gregory A. (2003) Management of a Sales
Force. 12th Edition, McGraw-Hill Irwin. (Chapter 2)
2. Rackham, Neil. (1988) SPIN Selling. McGraw-Hill Inc. (Chapter 4 The SPIN Strategy
pp. 67-98.)
Instructions
1. Select a real existing product or service you would like to sell to an organizational
buyer (a business).
2. Develop a product profile and identify the key product benefits.
3. Select a real business that you would like to sell this product to.
4. Part 1 - Follow the account plan template. Research the information areas and record
your findings on the template provided. To collect the information required you may use
secondary sources such as company annual reports and newspaper articles. You may also
interview people from the company if necessary.
As you have no history with the company you have selected, do not complete 7.1
Relevant Account History and Trends. It is included only to show you that it is part of an
account plan.
5. Part 2 – As this is an assignment, It is not expected that you will acquire detailed
personal information on organization’s primary contact. Simply record the primary
contact’s name, position and telephone number. Do not complete the personality profile
section. It is included only to show you that it is part of an account plan and the primary
contact’s profile.
6. Part 3 - Account Plan Objectives, Strategies and Tactics.
Part 3.1 – Develop strategies and tactics to develop and maintain a business relationship.
The objectives have been provided for you.
Part 3.2 – Develop a series of interview/assessment questions based on the SPIN formula.
It is acceptable to make assumptions about the buyer’s situation. Make sure the questions
you ask are diagnostic and help you diagnose a problem or need that the buyer has.
Part 3.3 – Develop presentation objectives, strategies and tactics. Generally, presentation
objectives should be aimed at proving to the buyer that you can resolve their unmet need
or problem that they have. You may also have objectives, strategies and tactics that
promote an image of credibility and reliability.
Account Plan Template
________________________________________________
Part 1 – Company Background Information
1.1 General Information
Account company name: Oil City Hospitality Group
Company Phone No.: ______________ Company Webs site URL: _______________________
Address: ______________________________________________________________________
______________________________________________________________________
___________________________________________________________
1.2 Account Class (A, B, or C)
(see note 1) ___________________________________
1.3 Estimated Annual Purchases:
$ _____________________________
1.4 Estimated Annual Cost to Service Account: $ _________________________
(includes expenses associated with travel, relationship development activities, presentations etc.)
1.5 Company Profile
Oil City Hospitality group (OCHG) is a conglomeration of 10 bars, lounges, and clubs in
Edmonton. The list of venues is: Oil City Roadhouse, The Rack, The Bank, Vinyl, The Pint,
Pawn Shop, Buffalo, The Hat, and Filthy McNasty’s. The assortment of Oil City Hospitality
group’s venues is impressive. Each venue is positioned in the market to reach a slightly different
audience but ultimately they all satisfy the need for a late afternoon/evening filled with
entertainment (TV’s, dancing, and atmospheric appeal) and beverages within the city of
Edmonton. All venues are licensed to serve alcohol, however only select venues offer food. All
venues under the Oil City Hospitality group banner are located in relatively close proximity to
one another along either Whyte Avenue (82 Ave) or Jasper Avenue (105 Ave). The largest
demographic of patrons to the venues offered by OCHG are between the ages of 18 – 25.
1.6 Current Competitors (Companies that offer the same or similar products/services to the same
target market in the same geographic region)
1.7. Relevant Account History and Trends
(significant recent changes, current or past significant problems)
Note: It is unlikely that you will be able to complete this section. Therefore you can leave
it blank. It is included only to show you that it is a section within an account plan.
Part 2 - Main Contact Personal Information
Main contact: ____________________________Position:
_________________________
Office Phone No.: ________________________ Cell Phone No.: ________________________
E-mail: _____________________________________________
Work Schedule: ________________________________________________________________
Personality Profile: (i.e. Supportive or Reflective) ______________________________________
Selling Approach Recommendations
Supportives
Emotives
- Spend time learning about what is important in this individuals
personal life.
- Listen carefully to personal opinions and feelings.
- Study their personal needs as well as their business and technical
needs.
- Can be very sensitive to disagreements.
- Take time to develop the relationship.
- Avoid being to stiff or formal.
- Do not place too much emphasis on facts and details.
- Actively seek their opinions and ideas.
- Help them stay on track and focused.
Reflectives
- Reflective people appreciate a no-nonsense,
businesslike approach.
- Relationship building is not very important with reflectives.
- They respond in a positive way to a well organized approach.
- Never pressure a reflective person to make a quick decision.
Directors
- The key to selling to directors is to keep the relationship business like.
- Developing a strong personal relationship is not important for directors.
- Be efficient, time disciplined, and well organized as possible.
- Provide facts, figures, and success probabilities.
Leisure Interests: _______________________________________________________________
_____________________________________________________________________________
Family: _______________________________________________________________________
_____________________________________________________________________________
Other Notes:
Secondary contacts: (if necessary)
Name: ________________________ Position: _____________________ Ph:_______________
Name: ________________________ Position: _____________________ Ph:_______________
Name: ________________________ Position: _____________________ Ph:_______________
_______________________________________________________
Part 3 - Account Plan Objectives, Strategies and Tactics
(For the year: 20XX)
3.1 - Relationship Development and Maintenance Objectives
(See note 2)
Relationship Development and Maintenance Objectives
Objective 1: To create a strategy to develop and maintain a relationship with Jonathan Cooper.
Strategy 1: To be accepted as an honest and trustworthy sales person.
Tactics (tasks)
Time
Frame
Tactic 1: Perform some basic research on Oil City Hospitality
Group. Know by memory all the bars that are under the control
of OCHG. Make sure to pay close attention to any current
events that may be scheduled to be held at any of the OCHG
venues.
This sales
call
should be
done on:
Thursday,
October
21, 2010
Tactic 2:* Enter the Oil City Roadhouse at around 2:30pm to
3:30pm on a Thursday to find and approach Jon while he is
setting things up for the evening. It is important to approach
him on Thursday as any other day he will more than likely have
worked late and be busy completing left over paper work from
the night before. He has Wednesday off as the bar is not open
so he should be under less stress than any other day.
Tactic 3:* Since the bar is not yet open, Jon and perhaps a few
other staff members will be the only ones present. Ask for John
and explain that you would like just a few moments of his time.
Once John is ready to speak with you, introduce yourself and
that you are a Waterless Urinal sales associate. Display your
familiarity with the OCHG brand and knowledge about any
events that could be coming up. Engage in perhaps some small
talk about your experiences at the bar or a past event that is
similar to something they are doing.
Tactic 4:* Show your understanding to Jon that he is more than
likely very busy at the moment and that you didn’t want to take
too much of his time today but rather that you would like to sit
down later to discuss a cost savings tool for OCHG at his
convenience. Ask him when he would have time for you to call
him to set up another meeting. Exchange cards and leave him
the fact sheet outlining the Waterless Urinals benefits: water
savings, low maintenance, odour reducing abilities, and
durability benefits. Thank him for his time as you leave.
It should
take
about:
3hr
including
driving
time
You
should be
able to
contact
Jon again
in about:
3–5
days
Budget
Comment
It is very
important that
you actually go
to the bar in
person rather
than call or
email. These
forms of
communication
are typically
ineffective
with the
bar/lounge/club
industry as
managers and
owners receive
many calls that
they must
attend to
immediately.
This forces
your call to the
end of the list
and usually
results in them
not having time
to call you
back.
Relationship Development and Maintenance Objectives
Objective 1: To create a strategy to develop and maintain a relationship with Jonathan Cooper.
Strategy 2: To be accepted as caring about the well-being of the customer.
Tactics (tasks)
Tactic 1: Ensure that you contact Jon at exactly when he
mentioned that he would be available to take your call to set up
a later meeting. Failing to do so could lose the potential for a
sale.
Tactic 2: When talking to Jon on the phone do not start off the
conversation immediately about the product. Instead consider
that he may have been working late, ask him how things are
going managing the venues, discuss any events that you may be
aware of happening at any of the venues, and use this as an
opportunity to display any knowledge that you might have about
the company. Do not drone on about the company. This will
have the opposite effect of that which you desire. We want to
display a genuine interest.
Tactic 3: Once you feel comfortable talking and you can feel a
sense of comfort from what Jon is saying, ask him when he is
available to speak in person. Be accommodating to his schedule
and be reassuring that you will make good use of his time as
well as the organizations.
Tactic 4: Be on time for your meeting! Show that you are
prepared for the meeting. These are critical steps in displaying
that you care about the potential client and are proactively
building the relationship.
Tactic 5: Be flexible in your meeting. Make sure that you are
responding to Jon and his needs and not simply spouting out
information to him. Help him to understand why the No Flush
Urinal would be an advantage in cleaning, maintenance, and
water costs. Discuss his issues with the current situation and
help him understand how you can help the future situation.
Time
Frame
Between:
October,
24 – 26
Set up
meeting:
20 – 40
minutes
Meeting
date
should be
no later
than:
Nov. 2
unless
Jon
really
needs
more
time
Meeting
should
take
about: 5h
including
driving
time
Budget
Comment
Relationship Development and Maintenance Objectives
Objective 1: To create a strategy to develop and maintain a relationship with Jonathan Cooper.
Strategy 3: To develop an image of personal and/or corporate credibility.*
Tactics (tasks)
Time
Frame
Tactic 1: To display our corporate credibility we will be sure to
inform Jonathan of our distributors’ membership with many
international associations: U.S Green Building Association,
GreenSpec Listed, ISSA, Rebuild America, GSA, and
Greenhotels.com; and how we must achieve the same integral
standards to be an authorized dealer.
Should
occur
when you
have your
meeting
before:
Nov. 2
Tactic 2: Inform Jonathan about our bigger corporate buyers
utilizing our services to switch all of their urinals: Edmonton
Public Schools, Royal Canadian Mounted Police, and other
government bodies. Many municipal and federal governments in
Canada and the United States are switching to waterless urinal
systems.
Budget
Comment
3.2 - Customer Needs Assessment Objectives
Customer Needs Assessment Objectives
Objective 1: To develop a needs assessment strategy.
Strategy 1: Create a Benefit List for (insert product name). (Benefits are solutions to unmet needs and
problems)
Tactics (Tasks) – Identify benefits of product
Benefit 1: Savings on water bill/ OVERFLOWS
Benefit 2: Environmentally friendly—recyclable material, biodegradable product
Benefit 3: Less cost on vandalism/ repairs of urinal flusher valve/ censors
Benefit 4: Less overall maintenance
Benefit 5: Less Odor
Notes:
You must identify at least one benefit or need. However, you do not have to have multiple benefits if only
one benefit exists.
Customer Needs Assessment Objectives
Objective 1: To develop a needs assessment strategy.
Strategy 2: Develop a list of situation questions that identify whether a potential problem or unmet need
may exist.
Tactics (Tasks): For each benefit, identified in the Customer Needs Assessment Objectives, Objective 1,
Strategy 1 develop a situation question to determine if the prospect has an unmet need (problem) that the
product can resolve.
Summary of Product Benefits
Situation questions to determine if prospect has an unmet need
(problem)
Benefit 1:
Situation question associated to benefit 1:
Benefit 2:
Situation question associated to benefit 2:
Benefit 3:
Situation question associated to benefit 3:
Benefit 4:
Situation question associated to benefit 4:
Benefit 5:
Situation question associated to benefit 5:
Notes: There are two types of situation questions. Some situation questions are relative to the prospect’s
buying environment. These situation questions assess the buyer’s decision making process, time and
budget constraints, company politics and success criteria and expectations.
In this section you are trying to develop situation questions are used to explore the buyer’s present situation
relative to the product being sold. Therefore, the type of situation questions you want to ask are questions
relative to whether a “situation” exists. In the next section you define what problems are created by this
situation.
Customer Needs Assessment Objectives
Objective 1: To develop a needs assessment strategy.
Strategy 3: Based on the situation questions previously asked, develop a list of problem
questions to determine what problems , unmet needs or dissatisfactions exist as a result
of the current situation.
Tactics (Tasks): Create a list of questions relative to the problems that you have the
ability to solve.
Problem Questions
Question 1: Have you ever had to replace the urinal sensors?
Question 2: Have you had any maintenance issues with the flush levers?
Question 3: Do you ever have complaints about the odour in the mens washroom?
Question 4: What issues have you had with maintain the cleanliness of your urinals
during office hours?
Do your urinals ever flood?
Notes:
1. If it is determined that the prospect has no unmet needs or problems that need to be
resolved, the sales rep has two options. First, the rep could end the relationship
permanently . Second, if the rep feels there may be potential for a sale in the future the
rep could develop low cost relationship development and maintenance objectives.
2. A minimum of one benefit is required to move onto the next stage. There is no
maximum number of benefits that can be used.
Customer Needs Assessment Objectives
Objective 1: To develop a needs assessment strategy.
Strategy 4: Quantify the negative financial implication or impact of the problems identified on the
company.
Tactics (Tasks): Develop a list of questions that lead to a calculation of the financial cost of each problem
identified.
Problem (Unmet Need)
Financial costs associated with problem over a period of one year
(the period is usually one year but may be longer)
Problem 1:
replacement/maintenance parts
Financial Implication Question 1:
Problem 2: cleanliness
Financial Implication Question 2:
Problem 3: water bill
Financial Implication Question 3:
Problem 4: flooding
Financial Implication Question 4:
Notes:
3.4. Sales Presentation Objectives
Sales Presentation Objectives
Objective 1: To summarize the problems created by the situation and, the negative financial impact on
the person or company.
Strategy 1: To illustrate the value equation scale and show calculations to support the conclusion that
the cost of the solution (product/service) is less than the cost of continuing to live with the problem.
Tactics
Tactic 1:
booklet
Tactic 2:
Ppt of damages/potential problems
Tactic 3:
Time
Frame
Budget
Comment
Sales Presentation Objectives
Objective 2: To develop the belief that the product/service being offered will meet the
customer’s unmet needs or resolve the existing problem.
Strategy 1:
Tactics
Tactic 1:
Tactic 2:
Tactic 3:
Bring product in and give a “demo”
Time
Frame
Budget
Comment
Notes
Note 1: Account class refers to whether the prospect/buyer is or has the potential to become a high, medium
or low volume buyer. An “A” class account is or has the potential to become a high volume buyer.
Whereas a “C” class account is or has the potential to become a low volume buyer. This designation is
important because the time and money you invest and, your strategies and tactics will vary depending on
the expected return from each customer class.
Note 2: Rapport development is a component of the Approach stage in the consultative selling model. Sales
reps must have a basic level of rapport before the buyer will feel comfortable answering the questions that
the sales rep asks.
Note 3: Top of mind awareness refers to a sales rep, product or company being part of the consumer’s
evoked set. An evoked set is a limited number of products or service providers that comes to mind when a
person has a need for a product or service. For example, a person may have an evoked set of colas as
follows: Coke, Pepsi, RC Cola, and President’s Choice Cola. Sales people do not want their customers to
forget about them or their company. You want your company to be included in the consumer’s evoked set.
Note 4: It is important to remember that consumers are motivated to buy for reasons beyond the product
itself. They may buy for a variety of reasons such as price, convenient delivery schedules, promotional
support, security, warranties and guarantees among others. Thus, when thinking about unmet needs think
about more than just the product.
Note 5: While situation questions are important, the more situation questions you ask the buyer the less
likely you are to make the sale. This is because asking too many situation questions annoys the buyer. The
recommendation is to find basic factual information from alternative sources, i.e. company website and
annual reports. Ask the buyer only a few select situational questions that could not be answered from
alternative sources.
Note 6: Problem questions can be quantitative (financial) or qualitative (non-financial). There purpose is to
reveal the buyers implied needs, clarify the buyer’s difficulties and dissatisfactions, and gain a shared
understanding of the buyer’s problems.
Note 7: You only want to identify problems that you can offer a solution to.
Note 8: Implication questions develop implied needs into explicit needs. The main purpose of implication
questions is to help the buyer understand the real significance of the problem so that the buyer sees the
problem as something that should be resolved.
Note 9: People often do not understand the difference between Implication questions and Need Pay-off
questions. Implication questions are problem-centered. That is, they are negative and make the buyer sad.
Whereas Need Pay-off questions are solution-centered. They are positive and make the buyer happy.
Note 10: Need Pay-off questions should clarify the existence of an explicit need and, clarify that it is
important for the buyer to resolve their problem or unmet need. In addition, Need Payoff questions could
invite the buyer to specify additional payoffs not previously mentioned.
Appendix B - Sales Call Interview Sheet (for reference only)
1. Call Plan Objective:
2. Situation: (any further facts we need)
3. Problems: (problems that might exist
and that we can solve)
Problem 1:
4. Implications:
1._________________________________
__________________________________
2._________________________________
__________________________________
Problem 2:
3. ________________________________
__________________________________
4. ________________________________
__________________________________
Problem 3:
5. ________________________________
__________________________________
__________________________________
Explicit Needs: (we hope to develop)
Benefits: (we can offer)