Mark W. Johnston | Greg W.

Marshall

McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.
Part 1
Formulation of a
Sales Program
2 The Process of Selling and
Buying
 Case for Focus on the Sales
Process
 Scale sales force by teaching
how to succeed
 Measure and manage
 Design selling process
according to how customer
buys
 Team sales require clearly
defined roles for each member
Source: HR Chally Group (2009). 2-4

Recognize key drivers of change in selling and
sales management.
 Understand best practices in selling.
 Explain historical basis for stereotypical views of
selling.

Point out reasons why sales jobs can be highly
satisfying.

Identify and explain key success factors for
salesperson performance.

Discuss and give examples of types of selling
jobs.

List and explain roles in an organizational buying
center.

Describe relationship between buying and selling
centers and the nature of team selling.

Outline stages in organizational buyer decision
making.
 Point out nature of different organizational buying
situations.

2-5
Drivers of Change in Selling and
Sales Management
 Building long-term customer relationships
 Creating sales organizational structures
that are more nimble and adaptable to
customer needs
 Gaining greater job ownership and
commitment from salespeople
 Shifting management style from
commanding to coaching
 Leveraging technology for sales success
 Integrating salesperson performance
evaluations

2-6
 2.1 IBM More Nimble by Gaining
Clarity
 Nimble firms
 Monitor and communicate w/ customers
 Proactive to meet customer needs
 Practice adaptive selling
 Flexible, open to creative solutions
 Strategies
 Group salespeople into teams to serve
selected customers
 Seven-step selling method
 Universal reporting system
 Single 30-minute meeting w/ managers per
week

Source: Erin Strout, “Blue Skies Ahead?” Sales & Marketing Management, March 2003, 2-7
pp. 25-29. Reprinted with permission.
Attractiveness of Sales Careers

 Autonomy and opportunities for personal

initiatives
 Variety of challenging activities
 Financial rewards
 Favorable working conditions
 Excellent opportunities for development
and advancement

2-8
 2.2 Create Your Own Creativity

 Balance routine with change

 Take time to play
 Optimism
 Courage
 Seek to creatively solve crises
 Take responsibility

Source: Bill Brooks, “How to Create Your Own Creativity,” American Salesman,
October 2002, pp. 3-6; Michael Malon. “A Creative Approach to Sales.” Broadcasting & 2-9
Cable, May 11, 2009.
 2.1a

Compensation trends in selling

2-10
 2.1b

Compensation trends in selling

2-11
 2.1c

Compensation trends in selling

Source: Joseph Kornik, “2007 Compensation Survey.” Sales & Marketing Management, 2-12
May 2007, pp. 27–39.
 2.3 Virtual Office

 Benefits
 Better work-life balance
 Real estate and overhead cost savings
 Environmental impact of fewer
commuters
 Drawbacks
 Out of sight out of mind?
 Isolation

2-13
 2.2

Possible career tracks for salespeople

2-14
 Selling Success Factors


Listening skills

Follow-up skills

Ability to adapt sales style to situation

Tenacity

Well organized

Verbal communication skills

Able to interact with people at all levels
of an organization

Ability to overcome objections

Closing skills

Personal planning and time management
skills
2-15
 2.4 Active Listening Skills

 Pay attention

Withhold judgment

Reflect

Clarify
 Summarize

Share

2-16
 Selling

Working with
Distribution
Others

Servicing the
Traveling
Product

2.4
Selling Job Factors

Job sales factors

Managing
Entertaining
Information

Training and Servicing the

Recruiting Account
Attending
Conferences
and Meetings

Source: Adapted from William C. Moncrief III, “Selling Activity and Sales Position Taxonomies 2-17
for Industrial Salesforces,” Journal of Marketing Research 23 (August 1986), pp. 266–71.
 Communication Sales Relationship Team Database
Technology
Email Set up appts Web page Conference calls Collect new information
Dictaphone Script sales pitch from Enter information on laptop
Internet database Update customer files
Laptop (CD) Use software for
Voicemail customer background
Cell Phone Laptop for presentation
VCR for presentation
Pager
Web page Provide tech ability to
customers
Newsletters
Audiovideo conference
Provide tech info
Overnight services
Maintain virtual office
Nontechnology

Practice language skills Adaptive selling Bring in vendor/alliance Mentor

Conduct research at Develop relationship Make sale and turn
customers’ site Hand-hold customer over to someone else
Avoid potential litigation Write thank-yous Coordinate with sales
Plan for multiple calls to Purchase dealers support
close deal
Call on CEOs
Sell value-added services Build rapport w/ buying
Respond to referrals center
Write thank-yous Network
Target key accounts Build trust
Pick up sales supplies Train brokers
Consultative sales
Listen 2.5
Ask questions
Read body language
Sell unique competencies Updated selling activities
matrix

Source: Greg W. Marshall, William C. Moncrief, and Felicia G. Lassk, “The Current State of Sales Force Activities,”
2-18
Industrial Marketing Management 28 (January 1999), pp. 87–98.
 B2C vs. B2B

 Most salespeople are involved

in retail selling (B2C)
 Larger volume of sales
accounted for by industrial
selling (B2B)
 Sales to resellers
 Sales to business users
 Sales to institutions
2-19
 B2B Jobs

 Trade servicer – provides customers

with merchandising and promotional
assistance
 Missionary seller – persuades
customers to buy products from
distributors
 Technical seller – offers current
customers technical/engineering
assistance
 New business seller – identifies and
obtains business from new customers

2-20
 2.6
Selling process stages

2-21
 Prospecting

 Core competency
 Sales fundamental
 Critical to increasing sales
 Hard work
 Delayed payoff
 Requires design and discipline
 Enhanced by software
2-22
 Opening the Relationship

 “The approach”
 Who is likely to have the
greatest influence to initiate
the purchase process?
 Generate interest to obtain
information needed to qualify a
prospect
 Identify key decision makers,
desires, and relative influence
2-23
 Qualifying the Prospect

 Does prospect have a need for

product?
 Possible to make prospect
aware of need?
 Will the sale be profitable to
the company?

2-24
 Sales Message Presentation

 Purpose
 Transmit information
 Persuade prospect to become a customer
 Common complaints about sales
presentations:
 Running down competitors
 Too aggressive or abrasive
 Inadequate knowledge of competitors’
products and services
 Inadequate knowledge of client
business/organization
 Poor delivery

2-25
 Closing the Sale

 Begins with first contact

 Requires
 “Asking for the order”
 Trial Close
 Understanding the prospect and
buying process
 Paced by the salesperson
 Requires continual
improvement
2-26
 Servicing the Account

 Excellent service bolsters loyalty

 Follow up to check satisfaction
 Product
 Installation
 Training
 Maintenance
 Billing
 Satisfied customers = Repeat customers

2-27
 2.5 Improving Closing Chances

 Greet with a smile


Customer should feel in control

Be product neutral

Actively listen
 Give space

Learn customer’s goals

Enquiry before presentation
 Never answer unasked questions

Ask for contact information
 Make every experience remarkable
2-28
 Buying Process Participants


Initiators – perceive
problems/opportunities requiring new
product or service

Users –use or work with product or
service

Influencers –provide information for
evaluating products or suppliers
 Gatekeepers – control flow of
information

Buyers – contact selling organization
and place order

Deciders – final authority to purchase

Controllers – determine budget
2-29
 Selling and Buying Centers

 Bring together individuals to help

salespeople be more effective
 Establish team selling structure to
meet customer needs
 Matrix organization – direct
reports and internal consultants
provide expertise
 Key account – team managed by
senior salesperson dedicated to
serving important customer
2-30
 2.7
Organizational buying
decision stages

2-31
 2.8

Consumer versus
organizational buyer
behavior

2-32
Organizational Buying Situations

 New-task purchase – first-time

purchase of complex and expensive
product or service
 Modified rebuy – requires
modification to existing purchase
decision and may open the door for
new suppliers
 Straight rebuy – reorder item
purchased many times in the past

2-33
 Mark W. Johnston | Greg W. Marshall

McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.