Selling and Sales Mgt S & D

8/3/2019 Selling and Sales Mgt S & D

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Selling and SalesManagementSelling and SalesManagement

Harcourt, Inc.


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ObjectivesObjectives

Identify and understand theIdentify and understand the

critical factors of personalcritical factors of personal

sellingselling

Discuss how selling has evolvedDiscuss how selling has evolved

Evaluate the advantages andEvaluate the advantages anddisadvantages of sales as adisadvantages of sales as a

professionprofession


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Describe the sellingDescribe the selling

environments and types ofenvironments and types of

personal sellingpersonal selling

Understand the sales processUnderstand the sales process

Appreciate the tasks andAppreciate the tasks andfunctions of the sales managerfunctions of the sales manager

Recognize legal/ethical issuesRecognize legal/ethical issues

ObjectivesObjectives


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Personal SellingPersonal Selling


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A form of person to personA form of person to person

communication in which acommunication in which a

salesperson works withsalesperson works withprospective buyer and attemptsprospective buyer and attempts

to influence purchase in theto influence purchase in the

direction of his or herdirection of his or hercompanys products orcompanys products or

servicesservices

Personal Selling DefinedPersonal Selling Defined


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Allows the firm toAllows the firm to

immediately respond to theimmediately respond to theneeds of the prospectneeds of the prospect

Allows for immediateAllows for immediate

customer feedbackcustomer feedbackResults in an actual saleResults in an actual sale

Importance ofPersonal SellingImportance ofPersonal Selling


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Hard sell: Formerly thoughtHard sell: Formerly thought

customers had to be forced intocustomers had to be forced into

making a purchasemaking a purchase Relationship selling: Now sellingRelationship selling: Now selling

requires the development of arequires the development of a

trusting partnership in which thetrusting partnership in which thesalesperson seeks to provide longsalesperson seeks to provide long--

term customer satisfactionterm customer satisfaction

Evolution ofPersonal SellingEvolution ofPersonal Selling


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Employment in sales is growingEmployment in sales is growing

Sales positions offer advantages:Sales positions offer advantages:

Good compensationGood compensation Intrinsic reward from helping customersIntrinsic reward from helping customers

Flexible in dayFlexible in day--toto--day activitiesday activities

HighHigh--visibility career trackvisibility career track

Limited supervisionLimited supervision

Travel opportunitiesTravel opportunities

Increasing responsibilitiesIncreasing responsibilities

Why choose the sales profession?Why choose the sales profession?


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Lawson SoftwareLawson Software

Leading Edge TechnologyLeading Edge Technology


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Desirable Salesperson TraitsDesirable Salesperson Traits

SalespersonSalesperson

Empathetic

Competitive

Goal-oriented

Adaptive

Customer-

oriented

Enthusiastic

Organized

Self-motivated


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Selling Environments and Selling TypesSelling Environments and Selling Types

Selling Environments Selling Types

Over-the-counter yOrder takeryOrder getter

Field Selling yProfessional salespeopleyNational account managersyMissionary salespeopleySupport salespeople

Telemarketing yOutboundyInbound


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Over-the-Counter SellingOver-the-Counter Selling

Order takerOrder taker

Order GetterOrder Getter

A salesperson who only processes the

purchase that the customer has already

selected

Retail outlets that are heavily oriented toward

self-service


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Over-the-Counter SellingOver-the-Counter Selling

Order takerOrder taker

Order GetterOrder Getter

A salesperson who actively seeks to provide

information to prospects, persuade

prospective customers, and close sales

Personal service oriented stores

May practice suggestion selling


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Field SellingField Selling

Help prospective customers to define their needs andthen suggest the best means of meeting those needs,

even if that requires suggesting that the prospects use a

competitive product

National account managersNational account managers

Missionary SalespeopleMissionary SalespeopleSupport SalespeopleSupport Salespeople

Professional SalespeopleProfessional Salespeople


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Highly skilled salespersons who call on key

customers headquarters sites, develop strategic plansfor the accounts, make formal presentations to top-

level executives, and assist with all the product

decisions at that level

Missionary SalespeopleMissionary Salespeople



Support SalespeopleSupport Salespeople


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They do not seek to obtain a direct order from theircustomers

Primary goal is to persuade customers to place

orders with distributors or wholesalers






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Support the sales force in a number of ways Technical support salespeople assist with

technical aspects of sales presentations

Merchandisers may set up product displays






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TelemarketingTelemarketing

Utilizing the telephone for prospecting, selling,

and/or following up with customers

Outbound: the salesperson uses the telephone to call

customers

Inbound: Firms which have customers calling the

vendor company to place orders (toll-free phone

numbers)



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The Personal Selling ProcessThe Personal Selling Process

ProspectingProspectingPrePre--

ApproachApproach

PresentationPresentationHandlingHandling

ObjectionsObjections

ApproachApproach

FollowFollow--UpUpNeedNeed

IdentificationIdentification

GainingGaining

CommitmentCommitment


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ProspectingProspecting

Prospecting involves finding qualified sales leadsProspecting involves finding qualified sales leads

Qualified sales leads: potential customers that have a needQualified sales leads: potential customers that have a need

for the salespersons product, and are able to buyfor the salespersons product, and are able to buy

Referrals: obtained by the salesperson asking currentReferrals: obtained by the salesperson asking current

customers if they know of someone else who might have acustomers if they know of someone else who might have a

need for the salespersons productneed for the salespersons product

ColdCold--calling: means contacting prospective customerscalling: means contacting prospective customers

without a prior arrangementwithout a prior arrangement


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Zip PakZip Pak

Prospecting Through AdvertisingProspecting Through Advertising


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Deloitte & ToucheDeloitte & Touche

ReferralsReferrals


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PrePre--approachapproach

The collection of information about the potentialThe collection of information about the potential

customer and the customers company prior to thecustomer and the customers company prior to the

initial visitinitial visit Researching the prospect and the company willResearching the prospect and the company will

assist the salesperson in planning the initialassist the salesperson in planning the initial

presentation to the prospective customerpresentation to the prospective customer


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ApproachApproach

The development of rapport with the customerThe development of rapport with the customer

The chance to make a good first impressionThe chance to make a good first impression The salesperson should adapt to the potentialThe salesperson should adapt to the potential

customers social stylecustomers social style


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Social StylesSocial Styles

Analytical Analytical DriverDriver

Amiable Amiable ExpressiveExpressive

FactFact--orientedoriented

RiskRisk

TakersTakers

RiskRisk

AdverseAdverse

PeoplePeople--orientedoriented


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RiskRisk

TakersTakers

AnalyticalAnalyticalDriverDriver



RiskRisk

AdverseAdverse


Very factVery fact--andand--detail orienteddetail oriented

Require time to make decisionsRequire time to make decisions

Not interested in socializingNot interested in socializing

The salesperson should inundate the analytical withThe salesperson should inundate the analytical with

facts and figures that can be supported withfacts and figures that can be supported with

documentationdocumentation


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RiskRisk

TakersTakers

AnalyticalAnalyticalDriverDriver



RiskRisk

AdverseAdverse


ActionAction--and goal oriented, and makes quickand goal oriented, and makes quick

decisionsdecisions

Basic facts and not big on socializingBasic facts and not big on socializing

The sales person should provide the bottomThe sales person should provide the bottom--lineline

information first and then work backward to fillinformation first and then work backward to fill--inin

essential detailsessential details


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RiskRisk

TakersTakers

AnalyticalAnalytical DriverDriver

AmiableAmiable ExpressiveExpressive


RiskRisk

AdverseAdverse


A visionary with big ideas for the future but not a detailA visionary with big ideas for the future but not a detail--

oriented individualoriented individual

Hesitant to make quick decisions and will seek consensusHesitant to make quick decisions and will seek consensusfrom othersfrom others

Seeks to socialize with the salespersonSeeks to socialize with the salesperson

The salesperson should provide assurances that will reduceThe salesperson should provide assurances that will reduce

the amiables feeling of riskthe amiables feeling of risk


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RiskRisk

TakersTakers

AnalyticalAnalytical DriverDriver

AmiableAmiable

ExpressiveExpressive


RiskRisk

AdverseAdverse


Loves to socialize and will frequently base the purchaseLoves to socialize and will frequently base the purchase

decision on the relationship with the salespersondecision on the relationship with the salesperson

The salesperson should establish a personal relationshipThe salesperson should establish a personal relationship

with the expressive by telling anecdotal stories, bywith the expressive by telling anecdotal stories, by

socializing outside the office and by relating personalsocializing outside the office and by relating personal

informationinformation


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NeedNeed

IdentificationIdentification

Requires asking probing questions of theRequires asking probing questions of the

prospective customer to determine needsprospective customer to determine needs

The salesperson should ask openThe salesperson should ask open--ended questionsended questions

Make sure that the customers needs and potentialMake sure that the customers needs and potential

concerns are addressedconcerns are addressed


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PresentationPresentation

The focus of the sales presentation is theThe focus of the sales presentation is the

salespersons explanation of how the features of thesalespersons explanation of how the features of the

product provide benefitsproduct provide benefits

Presentation may be flexible or memorizedPresentation may be flexible or memorized

The salesperson should be prepared to provideThe salesperson should be prepared to provide

documentation for any statements of fact that aredocumentation for any statements of fact that are

mademade


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HandlingHandling

ObjectionsObjections

The salesperson may have failed to provideThe salesperson may have failed to provide

adequate information, or have not demonstratedadequate information, or have not demonstrated

how the product meets the needs of the prospecthow the product meets the needs of the prospect

Objection as a sign of interest on the part of theObjection as a sign of interest on the part of theprospectprospect

Provide information that will ensure the prospectsProvide information that will ensure the prospects

confidence in making the purchaseconfidence in making the purchase


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GainingGaining

CommitmentCommitment

Commitment is gained when the prospect agrees toCommitment is gained when the prospect agrees totake the action sought by the salespersontake the action sought by the salesperson

The salesperson must ask for commitmentThe salesperson must ask for commitment


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FollowFollow-- UpUp

The salesperson complete any agreed upon actionsThe salesperson complete any agreed upon actions

The salesperson should stay in touch after the sale byThe salesperson should stay in touch after the sale by

writing thankwriting thank--you notes, clipping and mailingyou notes, clipping and mailingnewspaper articles of interest to the prospect andnewspaper articles of interest to the prospect and

calling on the customer to ensure the customerscalling on the customer to ensure the customers

satisfactionsatisfaction


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Sales CertificationSales Certification

Several organizations now offer certification

programs that are designed to increase theprofessionalism and expertise of the salespeople

IGNOUIGNOU

N I SN I S


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Sales ManagementSales Management

Recruit, train, motivate, and evaluate their

sales representatives

Manage territories Develop sales plans and sales forecasts

Identify business opportunities and create

appropriate strategies Encourage the sales team to create added-

value for the customer


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RecruitingRecruitingSales ManagementSales ManagementSales ManagementSales Management

Individuals with desirable salesperson traits

Individuals whose values and goals match

those of the firm

SalespersonSalesperson

Empathetic

Competitive

Goal-oriented

AdaptiveCustome

r-

oriented

Enthusiastic

Organized

Self-motivated


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Sales Force TrainingSales Force Training

Train the new sales representatives on product

and customer knowledge and selling skills

Sales training is expensive but the pay off is

worth it.

All sales representatives should periodically

receive training to keep up-to-date and to keep

their skills honed

Sales ManagementSales ManagementSales ManagementSales Management


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Motivating the Sales ForceMotivating the Sales Force

Provide further motivation to salespeople and to

encourage salespeople to focus on the priories ofthe company

Reward when the pre-specified performance level

(quota) is reached


Sales Force QuotasSales Force Quotas


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Motivating the Sales ForceMotivating the Sales Force

Regular praising of salespeople and let them know

their efforts are appreciated Rapport-building, open communication, and

modeling behavior

Good sales management feedback


Sales CoachingSales Coaching


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Sales Force CompensationSales Force CompensationSales Force CompensationSales Force Compensation

RegionalSalaries


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The sales force have greater security butThe sales force have greater security but

no desire to put extra effortsno desire to put extra efforts


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A great deal of insecurity due toA great deal of insecurity due to

uncontrollable factors like economicuncontrollable factors like economic

recessionrecession


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Bonus paid onBonus paid on

this differencethis difference

Salaryplus CommissionSalaryplus Commission


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Evaluation of PerformanceEvaluation of Performance

Sales managers should provide continualguidance and feedback

Use more quantitative methods of evaluation

to reduce bias in the evaluation process


Qualitative

factors

communication skills, product knowledge,

attitude, selling skills, initiative/aggressiveness,

appearance/manner, and knowledge of the

competition

Quantitativefactors

sales volume in dollars, sales volume to previousyears sales, number of new accounts, net dollar

profits and sales volume by dollar quota


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Territory Organization andManagementTerritory Organization andManagement

Whichmethod to organize the territory?

Byproduct line or by geographical area

Around customer


The salesperson calls on customers that

represent dozens of different industry(more traditional)

The salesperson is asked to call oncustomers in one or two specific industries,

regardless of where the customer is located

geographically


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Each salesperson should feel his/her territory offers as

much potential as each colleagues territory Each salesperson should feel the territory division does

not require that he/she work any harder than any other

salesperson


Territory AllocationTerritory AllocationTerritory AllocationTerritory Allocation


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The sales manager should help the sales force maximize

their territories potential

Make sure that the salespeople are not meeting theirquotas from the large purchases of one key buyer

Utilize market research to ensure no potential accounts

are being overlooked in any given territory


Territory PotentialTerritory PotentialTerritory PotentialTerritory Potential


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Sales Force TechnologySales Force Technology

The use of technology among sales

forces is growing

Sales managers must be computer

literate

Notebook computers, cellular phones,

and portable fax machines


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Legal and Ethical issuesLegal and Ethical issues

Obey the instructions of the company Act with due diligence

Be responsible for the companys property

Exhibit loyalty Relay information to the company that is

relevant

Salespersons ObligationsSalespersons Obligations


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Legal and Ethical issuesLegal and Ethical issues

Companys ResponsibilityCompanys Responsibility

Comply with any agreement made between thecompany and the salesperson

Reimburse the sales expenses incurred while

carrying out the business

Warn the salesperson of any risks associated withbusiness practices

Protect the salesperson against legal liability


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Unethical/Illegal BehaviorsUnethical/Illegal Behaviors

Price discrimination and unfair pricing

Gifts, gratuities, and bribes

Misleading advertising

Unfair competitive practices

Defrauding customers

Unfair credit practices

Price collusion with competitive firms


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Selling ActivitiesSelling Activities

Performing the salesPerforming the sales

functionfunction

Working with ordersWorking with orders

Servicing the productServicing the product

Servicing the accountServicing the account

Providing theProviding the

information toinformation tomanagementmanagement

Participating inParticipating in

conferences/meetingsconferences/meetings

Training andTraining and

recruitingrecruiting

EntertainingEntertaining

customerscustomers

TravelingTraveling Working withWorking with

distributorsdistributors


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MissionarySellingMissionarySelling

TechnicalSellingTechnicalSelling

NewNew--businessSellingbusinessSelling

RetailSellingRetailSelling

Build sales volumeBuild sales volume

by providingby providing

customers withcustomers withpromotionalpromotional

assistance in theassistance in the

form of advertisingform of advertising

and sales promotionand sales promotion

TradeSellingTradeSelling

Specific Types of Sales JobsSpecific Types of Sales Jobs



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Where tradeWhere trade

salespeople sell to,salespeople sell to,

missionarymissionarysalespeople sell forsalespeople sell for

its direct consumersits direct consumers





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Often technicallyOften technically

trained intrained in

chemistry,chemistry,engineering, andengineering, and

computer sciencecomputer science

Support the regularSupport the regularsales force or helpsales force or help

sell the productsell the product





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Used in industriesUsed in industries

that have one timethat have one time

or very infrequentor very infrequentsales, thus,sales, thus,

salespeople mustsalespeople must

constantly developconstantly develop

new leads tonew leads to

generate salesgenerate sales









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Wide range of skillsWide range of skills

requiredrequired

Can requireCan requireknowledge,knowledge,

communicationcommunication

skills, and ability toskills, and ability towork with diversework with diverse

customerscustomers









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Telemarketing usesTelemarketing uses

outbound calls to:outbound calls to:

Open new accountsOpen new accounts Qualify advertisingQualify advertising

leadsleads

Service existingService existing

businessbusiness









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AptitudeAptitude

Skills LevelSkills Level

Motivational LevelMotivational Level

Role PerceptionsRole Perceptions

PersonalPersonal

CharacteristicsCharacteristics

AdaptabilityAdaptability

Salesperson PerformanceSalesperson Performance

Documents

Selling and Sales Mgt S & D