1Overview of

Selling

1Personal Selling – Defined

An important part of marketing that relies heavily on interpersonal interactions between buyers and sellers to

initiate, develop, and enhance customer relationships.

1Trust-Based Relationship Selling

Requires that salespeople earn customer trust and that their selling strategy meets customer needs and contributes to the creation, communication, and delivery of customer value.

1Customer Value

The customer’s perception of what they get for what they have to give up.

1Importance of Sales Dialogue

• Allows for more thorough qualifying.• Demonstrates sincere interest in the prospective

customer.• Helps Determine prospective customer’s unique

needs.• Ensures meaningful

presentation of value-added solutions.

• Promotes opencommunication andsatisfaction feedback.

Sales Dialogue: business conversation between buyers& sellers thatoccur as salespeople attemptto initiate, develop, & enhance customer relationships.

1Transaction-Focused Selling

vs. Trust-Based Relationship Selling

1Transaction-Focused Selling

vs. Trust-Based Relationship Selling

1

IndustrialRevolution

Post-IndustrialRevolution

War andDepression

ModernEra

1800s 1900s 2000s

Evolution of Personal Selling

Selling function became more structured

Peddlers selling door to door . . . served as

intermediaries

Business organizations employed salespeople

Selling function becoming more

professional

1Evolution of Personal Selling

(The past several decades)

Canned Sales Presentation: sales presentations that include scripted sales calls, memorized presentations, and automated presentations.

Sales Professionalism: a customer-oriented approach that uses truthful, non-manipulative tactics to satisfy the long-term needs of both the customer and the selling firm.

From reliance on

To greater focus on

1Continued Evolutionof Personal Selling

1Contributions of Personal Selling:

Salespeople and Society

• Salespeople help stimulate the economy.

• Salespeople help with the diffusion of innovation.

1Contributions of Personal Selling:

Salespeople and the Employing Firm

• Salespeople generate revenue.• Salespeople provide market research

and customer feedback.• Salespeople become future leaders in

the organization.

1Contributions of Personal Selling:

Salespeople and the Customer

• Salespeople provide solutions to problems.• Salespeople provide expertise and serve as

information resources.• Salespeople serve as advocates for the customer

when dealing with the selling organization.

1Ethical Dilemma

1Alternative

Personal Selling Approaches

• Stimulus Response Selling• Mental States Selling• Need Satisfaction Selling• Problem Solving Selling• Consultative Selling

Adaptive Selling: the ability of a salesperson to alter his/her sales messages and behaviors during a sales presentation or as they encounter different sales situations and different customers.

1Stimulus Response Selling

Simple indesign; assumes conditionedresponse improves likelihood of success; a risky and unreliable strategy.

1Mental States Selling

Assumes buyercan be led through mental states; promotes one-way communication; a risky and unreliable strategy.

1Ethical Dilemma

1Need Satisfaction Selling

Interact with buyer to determine existing needs; present solutions to needs; solutions limited to seller’s products.

1Problem Solving Selling

Interact with buyer to determine existing and potential needs; present multiple solutions not limited to seller’s products.

1Consultative Selling

The process of helping customers reach their

strategic goals by using the products,

services, and expertise of the

selling organization.

StrategicOrchestrator

Business Consultant

Long-Term Ally

1The Sales Process - Overview

1Role Play

1

1Sales

Management and Sales 2.0

1Sales Management Process

Defining the Strategic Role of the Selling

Function

Developing the

Salesforce

Directing the Salesforce

Determining Salesforce

Effectiveness and

Performance

1Sales Management Process

• Defining the Strategic Role of the Sales Function– Salesforce structure– Sales strategies

• Developing the Salesforce– Recruiting and selecting sales talent– Establishing training strategies/programs

• Directing the Salesforce– Setting salesforce goals and objectives– Implementing incentive programs– Overseeing and coaching salesforce

• Determining Salesforce Effectiveness and Performance– Establishing and administering

evaluation measures & systems– Providing feedback for future

development

1Sales Management Positions (Example)

Vice President of Sales

Regional Sales Manager

Field Sales Manager

Field Sales Manager

Regional Sales Manager

Field Sales Manager

Field Sales Manager

1Sales Management Best Practices

• Create a customer-driven culture throughout the sales organization and firm.

• Recruit and hire the best sales talent.• Train and coach the right skill set.• Focus on key strategic issues

by segmenting accounts in meaningful ways andproviding differentiatedoffering to find, win,and retain customers.

1Sales Management Best Practices

• Implement formal sales and relationship-building processes.

• Use information technology effectively to learn about customers.

• Integrate sales with other business functions, especially marketing.

1Developing and Implementing Effective

Sales Strategies

Account Targeting Strategy

Classification of accounts into

categories

Relationship Strategy

Type of relationship

sought for each category

Selling Strategy

Develop selling approach for each type or relationship

1Developing and Implementing Effective

Sales Strategies

Selling Strategy – Involves the planning of sales messages and interactions with customers. Selling strategy can be defined and executed at three levels.

Groups of Customers

Individual Customer

Customer Encounters

Customer Encounters

Individual Customer

Customer Encounters

Customer Encounters

1 2 3

1Selling and Relationship Strategies

1Sales Channel Strategy

Determination of how the organization will reach its customers when executing the sales effort. Options include a company salesforce (individual or teams), industrial distributors, independentrepresentatives, internet,telemarketing, and so forth.

1Sales Structure Issues

• The degree to which each salesperson could perform all the selling tasks.

Specialization

• The degree to which authority and responsibility are placed at higher management levels.

Centralization

• The number of individuals who report to each sales manager

Span of Control

1Staff vs. Line Positions

1Sales Organization Alternatives

1Recruiting and Selecting Sales Talent

1Recruitment and Selection Process

– Planning –

1Recruitment and Selection Process

– Locating –

• Career/Job Fairs

• College Career Centers

• On-line Career Sites(e.g., Monster.com and Careerbuilder.com)

• Internal (e.g., employee referral)

• Employment Agencies

1Recruitment and Selection Process

– Evaluating –

• Resume Screening• Interviews• Assessments– Role Plays– Written

Questionnaires– Ride-Alongs

• Background Checks

1Sales Training Process

1Ethical Dilemma

1Directing the Salesforce

1Directing the Salesforce

1Directing the Salesforce

1Directing the Salesforce

1The Role of Power

• Don’t be reluctant to use any form of power.

• Be careful not to overuse the power of position or punishment.

• Avoid rewarding all desired job outcomes or behaviors.

• Enhance power through learning and establishing a good working relationship with subordinates.

Legitimate

Coercive

Reward

Expert

Referent

Sources Advice

1Communication and Coaching

Coaching: Focus on continual development of salespeople through provision of feedback and serving as a role model.

• Encourage open communication.• Seek feedback.• Use persuasion and promises.• Establish a team approach.• Encourage self-evaluation and correction.• Ensure salespeople diagnose success as

well as failures.• Recognize salespeople

are individuals.• Follow-up on coaching

sessions.• Serve as a role model.

1Ethical Dilemma

1Determining Salesforce

Effectiveness and Performance

Sales organization structure, strategies, deployment, management, and uncontrollable environmental influences also impact sales organization effectiveness.

1Evaluating Sales

Organization Effectiveness

1Evaluating Sales

Organization Effectiveness

1Evaluating Sales

Organization Effectiveness

1Evaluating Salesperson Performance

1Criteria for Evaluating

Salesperson Performance

Behavior-BasedEvaluation of the activities salespeople perform in the generation of sales and in completing non-selling responsibilities (e.g., training, product demonstrations, sales calls, etc.).

Outcome-BasedEvaluation of the actual sales results salespeople achieve (e.g., sales quota, market share gain, etc.).

Evaluation Methods Should Possess: • Reliability• Validity• Standardization• Practicality• Comparability• Discriminability• Usefulness

1Sales 2.0

The use of customer-driven processes enabled by the latest Web technology to co-create value with customers.

CRMSocial NetworkingCloud Computing

1Sales 2.0

1Role Play