Sales Force Management PDF

Mar k W. Johnston | G r eg W. Marshall McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. The Process of Selling and Buying Part 1 Formulation of a Sales Program  Recognize key drivers of change in selling...

Mar k W. Johnston | G r eg W. Marshall McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. The Process of Selling and Buying Part 1 Formulation of a Sales Program  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 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 2-7  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 & 2-8 Cable, May 11, 2009.  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 2-9  2.2 Possible career tracks for salespeople 2-10  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 2-11 Different Types of Selling Jobs  Different selling jobs:  Involve different tasks and responsibilities  Require different training and skills  Offer varying compensation and opportunities for personal satisfaction and advancement.  Bring different levels and types of opportunities for managing customer relationships.  Two broad categories of selling are:  selling in business-to-consumer markets &  selling in business-to-business markets. 2-12  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 2-13  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 2-14  2.6 Selling process stages 2-15  Prospecting  Core competency  Sales fundamental  Critical to increasing sales  Hard work  Delayed payoff  Requires design and discipline  Enhanced by software 2-16  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 2-17  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? 2-18 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 2-19  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 2-20  Servicing the Account  Excellent service bolsters loyalty  Follow up to check satisfaction  Product  Installation  Training  Maintenance  Billing  Satisfied customers = Repeat customers 2-21 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 2-22 Selling and Buying Centers  Sales planning involves:  Knowing who to contact.  Timing each contact.  Deciding who makes each contact.  Providing useful and persuasive info to each buying center member. 2-23  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 2-24  2.7 Organizational buying decision stages 2-25  2.8 Consumer versus organizational buyer behavior 2-26 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 2-27  Mar k W. Johnston | G r eg W. Marshall McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.