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8/3/2019 Intro to Sales
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Introduction to Sales
Management
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PICTURE
START
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Company's Strategy is defined
By: Product it sells Price
Target market Kind of employees
Management
These points when answered, define the
company
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Importance of Sales Management:
Nothing happens until someone sells
something
Without sales people, some businesseswould cease to exist
Many people have misconception about
the job of sales persons But professional buyers rely on sales
Persons
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Importance of Sales Management
Sales positions are hardest job to fill
Sales is a very promising career
As a career opportunity, starting with salesis an excellent choice
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From Sales Rep to Sales
Manager Sales Managers are not super Salespeople
Many of the characteristics of the supersales people such as ability to workindependently do not fit the job of salesmanager
Its about managing people Gift of selling skill is not transferred to
sales management
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Functions of a Sales Manager
Coaching people so they can improve
Developing strategies
Delegating the responsibility forimplementation to others
Motivating people
Sales success is not a primary predictor ofa good sales manager
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Definition of Sales Management
The activities required to lead, direct or
supervise the personal selling efforts of an
organization
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Parameters of firms strategy:
Mission Statement A strategy is a plan designed to
accomplish a mission
A mission is set of objectives Often companies summarize their goals in
whats called a mission statement
Corporate planners, which include avariety of personnel from the upper
management
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Parameters of firms strategy:
Mission Statement(Contd) Mission statements should serve to inspire
the members of an organization, give
purpose to the actions, and guide themwhen they are making decisions
A good mission statement does more than
simply organize the companys objectives
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The Strategy Hierarchy
A firms corporate strategy encompasses
its plans and goals for the entire
organization Corporate planners are responsible for
mission of the organization
The corporate strategy will also addressquestions, in a general sense, such as
what markets and sourcing options
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The Strategy Hierarchy
Once the companys strategy isformulated, it is then communicate to thefirms various business units-marketing,
sales, manufacturing etc The flow of the strategy from the
organization level to the unit level is called
the strategy hierarchy Marketing plan is likely to precede its
sales plan
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Questions answered by marketing
plan: What markets Do we serve with what What kind of relationships do we form and
with whom? Level of investment needed and allocation
of resources
Detailed objectives and action plans
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What markets Do we serve with
what In certain situation product define thecompany
For example , Xerox which was builtaround xerographic technology
The challenge is to find a sustainable
competitive advantage, something thatgives a company an edge in the market
over time
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What markets Do we serve with
what A firm can seek increase marketpenetration that is:
It can try to gain more ,market share withits existing product
Its all about trying to find more customers
like the ones who are already buying yourproducts
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What markets Do we serve with
what Secondly a company can grow throughproduct development, which involvescreating new products in order to get more
business out of the companys existingcustomers Third , a company can try to find new
,markets which is called the marketdevelopment approach
Fourth combining new products and newmarkets is called diversification
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What kind of relationships do we
form and with whom? Companies do not operate in vacuum They have:
Suppliers
Customers
And competitors who operate in a network
A strategic plan should consider the network
of relationships within which the companyoperates or wants to operate or wants tooperate
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What kind of relationships do we
form and with whom? This include its relationship with (potential)investors, bankers, suppliers of raw materials
or components, sources of personnel (like
your university), government regulatory
agencies and many more
A firms relationship with its customers is
perhaps the most important aspect of itsrelationship strategy as it can create
competitive advantage
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What kind of relationships do we
form and with whom? Service dominant logic is the idea that being inbusiness is essentially about serving the needs ofothers
Customer life time value is the sum of the all thepurchases made over a customers lifetime
Customer Relationship Management (CRM) isthe process of identifying and grouping customers
in order to develop an appropriate relationshipstrategy so that the company acquire, retain andgrow the business
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What kind of relationships do we
form and with whom? Customer acquisition strategies, orplans to obtain new customers, caninclude marketing activities such as
telephone prospecting Customer retention strategy, or plans
designed to keep customers might include
making quarterly visits Growth strategies are the plans that are
designed to same customers
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What level of investment will be required
and allocation of resources?
Important aspect of the strategic planninginvolves finding the capital. Or resources,necessary to accomplish the firms plan
This includes money but it can also take formof the human and social capital Human capital refers to the people that
make up an organization
Social capital, or the ties that the firm haswith others can also be drawn upon as aresource
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What level of investment will be required
and allocation of resources? For the sales executive, human capital
decisions include :
Determining how many sales people thefirm needs
What skills and experience they must
have What training they require
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What are the detailed
objectives? One set of criteria for establishingobjectives is the SMART format:
Specific Measurable
Achievable
Realistic Time-Based
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Selling Approaches
A company should have a standard salesmethod
However because customers make buyingdecisions differently, there will beobviously be variations in the sellingtechniques successful salespeople use
Buyers can be grouped by how they makedecisions, and formal sales processes canbe designed for each group
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Selling Approaches
Research show that there are four basic
models of selling:
Transactional selling is designed to getthe sale over with as quickly and as easily
as possible
The key to success is making as manycalls as possible; little thought is given to
lifetime value of customers
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Selling Approaches
Affiliative selling is based on the friendshipbetween the salesperson and the individualbuyer
For example Tupperware and PremierJewelery
Consultative selling involves identifying and
solving a clients problem: for this reason, it isalso called needs-satisfaction selling orproblem/solution selling
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Selling Approaches
Enterprise selling is a business tobusiness (B 2 B) concept that reflects, atits best, a strategic partnership between
the buying and selling organization It is based on company to company
relationship
The salespersons choice of selling modelin this case depends on how the buyerneeds to buy at that time
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The Selling Process
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The Selling Process
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The Selling Process Prospecting:
Prospecting involves identifying potentialcustomers for a particular product or service
A prospect is a MAD buyer
M: Money to spend A: Authority to buy
D: Desire to buy
The first step is to identify a lead, or someonewho appears to have characteristics of aprospect
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The Selling Process
Pre-Approach:
During pre-approach stage, the salespersontries to learn everything he can about the
account Approach
The approach step can be difficult because at
this stage the salesperson must ask thebuyer to commit to a meeting without reallyknowing what she wants or need
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The Selling Process
Needs Identification:
The next step in the needs identification step,the step in which the salesperson confirms
that the prospect has money, authority anddesire to purchase
Its comprises three steps:
Use ofSPIN( A series of questions) The questioning process can take quite a
while in complex, custom sales siuation
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The Selling Process
Needs Identification:
The second element is the identification ofthe decision process elements facing the
customer (Authority to purchase) The third step is gaining pre-commitment. A
pre-commitment is an agreement that all thecustomers needs have been identified, abudget has been identified and the decisionmaking process is known
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The Selling Process
Presentation: During the presentation, the sales person describes
the product and how it meets the buyers needs
One approach to presentations is to string togethera series ofFEBAs. Means statements of feature, evidence, benefit and
agreement One advantage of this approach is that the
potential buyer participates in the process; thepresentation is no just one sided
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The Selling Process
Handling objections: Objections are the reasons a buyer offers to
not buy a product
This can occur anytime during the sales call Most objections, though, come near the end
of the sales call. No matter the reason behind the objection,
the salesperson should probe to determinewhat lies at the root of the concern and thenseek to resolve it
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The Selling Process
Closing the Sale: A salesperson ask the buyer for the sale
during the close, but thats not the only time
the salesperson asks for the commitment Closing the sale should be the natural part ofthe selling process and no surprise to thebuyer.
In addition to asking for the order, though, agood close accomplishes several otherobjectives:
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The Selling Process Closing the Sale:
The decision should b reinforced by the
seller and implementation schedule
confirmed
If the salesperson reaches the close of the
sales call but it is turned down, a thank
you is still appropriate
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The Selling Process
Implementation/ Follow- Up: Following the close and assuming a sale has
been made, the customer has to accept the
delivery of the product The sales persons job may then be ensurethe the customer has a good experience withthe product
The responsibility might include training thebuyer on how the product works, how toobtain services, and regarding procedures
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The Selling Process versus the
Selling Approach The selling process is a constant cycle ofprospecting, presenting and closing,
Regardless of the model, fundamentals
remain the same In transactional selling little time is spent
on needs identification
Affiliataive selling may not require longneeds identification process
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The Selling Process versus the
Selling Approach Consultative selling emphasize the needsidentification stage
The different models and their variationson the process of selling create many
challenges for the sales leader
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Sales Leaders:
There are different levels of sales
managers:
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Sales Leaders:
A sales executive might also be
responsible for choosing the companys
distributors, deciding how the firms
product are sold on the website and
making other broad sales decision
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The Sales Executive
The first responsibly of the sales executive
is to lead the sales force in achieving
sales goals.
In general they have following
responsibilities:
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Sales executive are involved in overall planningThey are responsible for making specific sales
planThe sales plan might include quotas
The executives also assign regional or divisionalquotas and allow the sales managers in those
areas to set quotasThey also outline a general strategy to achieve
those objectivesProduct positioning strategies are emphasized
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Organizing involves determining what type
of sales force will be utilized It also includes creating policies and
strategies regarding how salespeople
should be hired or trained Recruitment and selection is critical
Organizing
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Rolling out the plan to sales force is the
key activity for the sales executive
It must be communicated to salesmanagers
Sales executive should also keep the
check on ethical behavior of sales force Creating the right culture is a delicate
balance
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Sales executives of course monitor sales
levels, but they are also responsible formonitoring other aspects of the firm as:
Customer Satisfaction level
How salespersons are recruited Selected and trained
Corrective action
Monitoring