Professional Documents
Culture Documents
Importance of Selling
Only activity that generates revenue Everything else is a cost centre only Only opportunity to be in touch with the market This allows for understanding and designing the value offering. Contributes to the image of the company and building of the Brand Equity
Modes of Selling
There can be two approaches to selling: Selling by looking at the short term gains Considering the long term business How practical is the issue of long term approach in the low value products?
Relationship Selling
Retain existing accounts Become the preferred supplier Price for profit Manage each account for long-term profit Concentrate on highprofit-potential accounts
Generate sales:
Precall planning Prospecting Make sales presentations Overcome objections Close by asking for the orders Arrange for delivery Entertain Arrange for credit/financing Collect payments Participate in trade shows
Territory management:
Gather and analyze information on customers, competitors general market developments Disseminate information to appropriate personnel within salespersons company Develop sales strategies and plans, forecasts, and budgets.
Professional development:
Participate in: Sales meetings Professional associations Training programs
Company service:
Train new salespeople
implement a firms marketing strategies in the field. are authorized to spend company funds. represent their company to customers and to society in general. represent the customer to their companies. operate with little or no direct supervision and require a high degree of motivation. develop innovative solutions to difficult problems. need more tact and social intelligence. travel extensively, which takes time from home and family.
implement a firms marketing strategies in the field. are authorized to spend company funds. represent their company to customers and to society in general. represent the customer to their companies. operate with little or no direct supervision and require a high degree of motivation. develop innovative solutions to difficult problems. need more tact and social intelligence. travel extensively, which takes time from home and family.
(Figure 115)
(Figure 116)
Staff assistants available for advice and support at any step along the ladder.
(Figure 117)
Client-team leader
Product engineer
relationship management
(CRM) Sales force diversity Electronic communication systems and computer-based technology Selling teams Complex channels of distribution An international perspective Ethical behavior and social responsibility
philosophy: Achieving organizational goals depends on the firms ability to identify the needs and wants of a target market, and then to satisfy those needs and wants better than the competition does. on three fundamental beliefs
Based
Company planning and operations should be customer or market oriented. Marketing activities in a firm should be organizationally coordinated. The goal of the organization should be to generate profitable sales volume over the long run.
orientation
A natural extension of the marketing-orientation stage. The buyer and seller commit to doing business over a long time.
communication employees
to be included in planning
in teams
Strategic Planning
Set Objectives
Objectives are the broad goals around which a strategic plan is formulated.
Formulate Strategies
Tactics are the specific activities that people must perform in order to carry out the strategy.
Develop Tactics
Company
Objectives
Earn 20% ROI
Marketing
Strategy
Increase marketing share 10%
Objectives
Increase market share 10%
Strategy
Increase share of customer business
Marketing
Objectives
Increase market share
Sales Force
Objectives
Increase share of customer business
Strategy
Increase share of customer business
Strategy
Build long-term customer relations Develop sales teams Provide bonuses for greater customer share
Tactics
Strategic Trends
Selling Multiple Sales Channels Multiple Relationship Strategies
Internet
Transaction selling
In
Consultative selling
this era of global warming, toxic waste, pollution, and other concerns, marketing executives must act in a socially responsible manner if they wish to succeed or even survive.
practices
Involve software application utilizing Information technology. Aggregate all information about customers into a single database. Provide salespeople/customers access to timely and relevant information. Allow effective management of every aspect of the buyer-seller relationship. Needs a different mindset at the top. Only effective if salespeople embrace it willingly.
How to proceed with the process of Selling Critical steps The right steps to be handled carefully
TM 3-2
THE EIGHT STEPS OF THE SALES PROCESS 8. Follow-up 7. Gaining Commitment 6. Meeting objections 5. Presentation 4. Need Assessment 3. Approach 2. Preapproach 1. Prospecting
Qualifying Leads
A
qualified prospect
Has a need for the products being sold. Can afford to buy the products. Is receptive to being called on by the salesperson.
Purchased
Purchased 45%
o onger in ar et P an to buy
*SOURCE: Bob Donath, Ja es K. Ober ayer, Caro yn K. Dixon, and Richard A. Croc er, When Your Prospect Ca s, Marketing Management, Vo . 3, o. 2, 1994.
Determining the Sales Objectives Developing Customer Profile Customer Benefits Developing the Sales Call Presentation
all the information-gathering activities salespeople perform to learn relevant facts about the prospects, their needs, and their overall situation. selling:
Adaptive
When a salesperson alters the initial objectives or plans of the sales process because of new information gained from the customer during the actual call.
good approach makes a favorable impression and establishes some degree of rapport between the salesperson and the buyer. A lot can happen in the first minute. What all would you do in the first minute?
good approach makes a favorable impression and establishes some degree of rapport between the salesperson and the buyer. in the U.S.:
Expectations
Need Assessment
The
stage in which the salesperson must discover, clarify, and understand the buyers needs. The best way to uncover and understand needs is by asking questions.
NEED ASSESSMENT
Situational questions
How often do you change the cutting oil in your drill presses? In addition to the hospital administrator, who else has an influence on the decision? Problem discovery questions Have you experienced any delays in getting repair parts? In which part of the production process is quality control the most important? Problem Impact questions How do these delays in getting parts affect your production costs? What impact do the quality consistency problems have on your production costs? Solution value question If your inventories could be reduced by 20%, how much would that save you? If your rejection rate on final inspection was reduced to under one percent, how much would that save you? Confirmatory questions So, you would be interested in an inventory control system that reduced your inventories by 20%? If I can provide evidence to you that our products would lower your rejection rate to under one percent, would you be interested?
The Presentation
A discussion of those product and/or service features, advantages, and benefits that the customer has indicated are important. Built around a forceful product demonstration
Keep it simple Talk the prospects language Stress the application of the product/service to the prospects situation
TM 3-
Product
Camera Bicycle
Advantages
Able to capture image from a distance. Dont get dehydrated.
Can play any round Convenience Multiple drill bits attached Rust inhibitor Can change bits without shutting down the machine. engine to have have longer life.
Motor Oil
The S E L L
S Show Feature E Explain Advantage L Lead into Benefits L Let the Customer Talk the F A B approach Need of the Dialogue
Meeting Objections
Objections should be welcomed because they indicate that the prospect has some interest in the proposition. In responding to an objection
Listen to the buyer Clarify the objection Respect the buyers concern Respond to the objection
6) Meeting Objections
Objections should be welcomed because they indicate that the prospect has some interest in the proposition. In responding to an objection
Listen to the buyer Clarify the objection Respect the buyers concern Respond to the objection
Trial Close: a great way to uncover needs; Push the sale forward
It checks the attitude of the prospect Can be used at the following points After making a strong selling point After the presentation After answering an objection Immediately before closing the sale
How does it sound to you What do you think Is this what you are looking for Is this important to you Does this answer your concern
Gaining Commitment
Asking
the buyer to commit to some action that moves the sale forward. Sales Closes
Common
Summary Close
Planning
Sales Forecasting
Basis for all the activities for the company Help decide the levels of production The need of raw materials required Leads to the level of funds needed Level of working capital required Calls for decisions on the level of activity This helps in the manpower planning Sets the level of activities required Decision on the level of operational expenses
Done by those who will buy the product, so accuracy should be good. Objective and inexpensive Use historical data
For new products When there are a small number of customers For established products When market factors are predictable For aggregate company forecasts
Analysis of market
Projected population, ages 19-30 months Percentage using diapers Number using diapers 2,560,000 Average daily diapers per child Diapers daily, ages 19-30 months 5,606,400
3,200,000 80
2.19
Projected population, ages 31-42 months Percentage using diapers Number using diapers 1,320,000 Average daily diapers per child Diapers daily, ages 31-42 months 1,452,000
3,300,000 40
1.10
Total daily diapers, all ages Percentage disposable diapers Number disposables daily
19,689,100 95 18,704,645
19,298,400 95 18,298,400
the method to the product/market Use more than one method Minimize the number of market factors Recognize the situation limits Use the minimum/maximum technique Understand math and statistics
Sales department expense budgets (advertising, selling costs, administration) Cash budget Revenues Expenses
Revenues Expenses
Sales Territory
Comprises
TM 13-2
a number of present and potential customers, located within a given geographical area and assigned to a salesperson, branch, or intermediary (retailer or wholesaling intermediary).
Key word: customers
TM 13-3
customer coverage
Increases
Increases
Tentatively set territorial boundary lines by combining control units until total calls needed = total calls possible Modify territories as needed
Territory Size and Workload Factors Workload Factor Increase/Decrease Nature of Job: Lots of presale and post-sale activity
Nature of product: A frequently purchased product A limited repeat-sale Market development stage: New market--fewer accounts Established market--more accounts Market coverage Selective coverage Extensive coverage Competition: Intensive Limited
TM 13-8
Territory Size
Decreases Decreases Increases Increases Decreases Increases Decreases Decreases unless market is oversaturated Increases
Sales volume expected from each sales person Tentatively set territorial boundary lines by combining control units total sales potential = total sales volume expected Modify territories as needed
TM 13-13
is the managerial activity that establishes a formal pattern for sales reps to follow as they go through their territories. Reduces travel expenses as it ensures a more Area C efficient territory coverage. Area B Some reps resent it. Area A Best for routine sales x jobs with regular call frequencies.
Area B: Typically the problem area.
TM 13-13
is the managerial activity that establishes a formal pattern for sales reps to follow as they go through their territories. Reduces travel expenses as it ensures a more Area C efficient territory coverage. Area B Some reps resent it. Area A Best for routine sales x jobs with regular call frequencies.
Area B: Typically the problem area.
Sales Manpower
of resources
Qualifications
Lack
Personal Search
Fig. 5-2 Sales Force Staffing Process: Plan for Recruiting & Selection
Establish Responsibility for Recruiting, Selection and Assimilation Determine Number of People Wanted Conduct Job Analysis Prepare Job Description Determine Hiring Qualifications
Number of reps needed = Market workload: Customer class A B Number of x accounts 400 600
Workload Analysis
Calls = per year 20 10
Total workload in market Workload one rep can handle Total calls 8,000 6,000 14,000
Fig. 5-4
Related Ability
To handle rejection To complete the sale To persuade people To be firm in negotiations To be innovative To build relationships To sell ideas To question, to be alert To sell complex products and ideas To understand customer needs
Source: Erika Rasmusson, The 10 Traits of Top Salespeople, Sales & Marketing Management, August 1999, pp. 34-37.
Evaluation
Lower turnover
Is your training aligned with your companys strategic goals? Does top management support your training? Does it reflect the needs of your customers/ Is it immediately relevant to your business? Are the salespeople empowered to leverage what they learn? Is the training reinforced? Are the results of the training measurable?
Leadership Effectiveness
Personal characteristics
Leadership style
(the leader behaviors)
Leadership effectiveness
Managerial skills
SITUATION
Characteristics
Skills
Leadership
Those supervisory activities regarding the day-to-day operation and control of the sales force.
Transformational
Leadership
Transforms the basic values, beliefs, and attitudes of followers such that they are willing to perform at levels above and beyond expectations.
Articulating a vision Fostering group goals Role modeling Providing individualized support
Printed
salespeople when they do well. are role models; salespeople will emulate
Leading by example
Coaches
them.
TM 13-3
Sales volume
In dollars and in units By products and customers (or customer groups) By mail, telephone, and personal sales calls
Gross margin by product line, customer group, and order size Orders
Number of orders Average size (dollar volume) of order Batting average (orders / calls) Number of canceled orders
Accounts
Percentage of accounts sold Number of new accounts Number of lost accounts Number of accounts with overdue payment
per day (call rate) Days worked Selling time versus nonselling time Direct selling expense
In total As percentage of sales volume As percentage of quota
Nonselling
activities
Advertising displays set up E-mails/letters written to prospects Telephone calls made to prospects Number of meetings held with dealers and/or distributors Collections made Number of customer complaints received
Management of their time Planning and preparation for calls Quality of sales presentations Ability to handle objections and to close sales Product Company and company policies Competitors products and strategies Customers
Knowledge
health factors
Cooperativeness Resourcefulness Acceptance of responsibility Ability to analyze logically and make decisions
Ratio Measures
Sales =
Days worked X Calls Days worked X Orders Calls Sales Orders
Days worked
Call rate
Batting average
Average order