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2
Managing the Selling Process
This is the concern this presentation will address.
Is your sales force actively
covering the market?
Ron McFarland, Tokyo, Japan
3
Whether you are a sales
manager or a salesman
selling to distributors, you
must manage the selling
process to produce
volume results and cover
the total market.
Managing the Selling Process
Ron McFarland, Tokyo, Japan
4
Sales Manager's Responsibilities to Sales People
There are three reasons sales people do not perform well!
1. They do not know what to do.
The sales manager must make sure his staff know what the sales activities are. The
best place to explain this is right during the job interview. It should be in his job
description.
2. They do not know how to do it.
The sales manager must make sure the staff know how to perform each step in the
selling process. If the salesmen do not use a quality selling process, then
management must train them. The better we sales managers know and can perform
the selling process ourselves, the more we can help our sales people sell cutting tools.
It is an on-going development process.
3. Something or someone interferes with their ability or desire
to do the job.
The sales manager must create an environment which encourages sales people to
perform the steps in the selling process on a daily basis.
Ron McFarland, Tokyo, Japan
5
Meeting
& Greeting
Market for a
product/service
7
Qualifying
& Counseling
Product
Selection
Product
Presentation
Product
Demonstration
Product
Supply
One Sale
Made
Asking Trail
Close Question
Customer
Follow Up
Closing
The Sale
Prospecting
for customers
8
9
10
11
6
5
4
3
2
1
Yes, we are covering the market.
Managing the Selling Process
I’m fishing for
cutting tool needs.
Selling is
like fishing.
Ron McFarland, Tokyo, Japan
6
What are your salesmen’s or distributors’ daily sales activities?
How well are those activities being performed?
Managing the Selling Process
Quality Contacts – Are they contacting a
reasonable amount of the right people?
Quality Impression – Do they make a good first
impression?
Quality of Determining Needs – Are they
determining what the distributors can market
successfully? Are they determining how much a
distributor can reasonably sell?
Quality of Product Presentations – Are they
presenting the products and explaining their end-
user benefits?
Quality of Demonstration - Does the customer
know the performance of the product? Are the
sales people demonstrating?
Quality of Closing – Is the salesmen asking the
distributor to buy the product?
Ron McFarland, Tokyo, Japan
7
1. What is my chance of success?
2. What is the value to me?
Two things must exist to improve and change the selling habits
of sales people. They must give positive answers to two
questions.
Changing Selling Habits
I can successfully present these
products to distributors and end users!
My presentation skills are going to make
me a lot of sales and money!
Ron McFarland, Tokyo, Japan
8
(low) (high)
Basic Sales Manager Leadership StylesS
up
po
rtiv
e B
eh
avio
r
Supportive Behavior is only being available when the
sales person needs or asks for help, and is giving
recognition when warranted.
High Supportive
Low Directive
Behavior
High Directive
High Supportive
Behavior
SUPPORTING COACHING
DELEGATING DIRECTING
High Directive
Low Supportive
Behavior
Low Supportive
Low Directive
Behavior
Directive Behavior is usually one-way communication.
It is giving the sales person sales activities to perform.
(lo
w)
(hig
h)
Directive Behavior
Ron McFarland, Tokyo, Japan
9
Competence: The level of knowledge and skills the person has to do the selling job.
Commitment: A combination of confidence and motivation to do the selling job.
Highly Developed Developing
Very High
Competence
Higher
Competence
Four Levels of Salesmanship Development
High
Commitment
Varying
Commitment
Low
Commitment
Low
Competence
High
Commitment
Higher
Competence
D1D2D3D4
Level of professionalism
Ron McFarland, Tokyo, Japan
10
Matching Leadership Style
To Sales Person’s Development
Development Level of Sales Person
The Four Leadership Styles
Su
pp
ort
ive B
eh
avio
r
Ron McFarland, Tokyo, Japan
11
Deciding How to Manage Each Sales Person
Prospecting
Meeting & Greeting
Qualifying-Counseling
Presentation
Demonstration
Closing
Delivery
Follow-up
Salesman
He should
not perform
Needs
training
Will improve
in time
Maintains minimum
standard
Above
average
Outstanding, could
be example to all
b
b
b
b
b b
b
b
Ron
Ron McFarland, Tokyo, Japan
12
Obtaining the Right Sales People
What is the cost of hiring the wrong sales people, the
cost of having high sales people turnover or the cost of
not having enough sales people?
• Sales losses
• Loss of company reputation
• Extra salesmen training costs
• Sales losses during training period
• Reduced advertising effectiveness
• Extra recruiting costs¥
Ron McFarland, Tokyo, Japan
13
Organizing before Recruiting Sales People
I’ve got to get more salesmen
talking about these products!
Give every man a chance. Do not recruit more people at one time than you can properly train and
supervise.
Start a new employee with an income which will keep him on a sound basis and enable him to
maintain his proper place in his community.
Try to avoid a new man contacting customers until has had enough training to do the job
intelligently.
Build the organization with a minimum of wastage of the new man's time and effort as well as your
own.
Devote an adequate amount of time in preparation for the introduction of the job to the new recruit.
Concentrate the search in the most productive areas and endeavor to locate people who can tap
certain natural markets: economic, social, industrial, educational, or geographical.
Do your search among groups with a good reputation.
Start searching ahead of your sales staff needs, so that you will have the courage to turn down
mediocre prospective sales personnel.
Set up a timetable showing in detail your recruiting, processing, training and supervising activities.
Get your sales staff in order by eliminating any failing sales people you have given many chances
and much help to succeed.
Set your manpower objective in terms of how many people you need to reach your sales targets.
Ron McFarland, Tokyo, Japan
14
Profile of a Sales Person
The man I seek should have:
1. Aptitude for cutting tool selling, effectively
measured.
2. Specified background qualifications
a. Schooling/Grades (reading, speaking,
mathematics)
b. Stability and being part of the
community
c. Record of reliability and integrity
d. Financial circumstances
e. Voice and speaking clarity
f. Physical condition
g. Appearance
h. Mannerisms
Ron McFarland, Tokyo, Japan
15
Keys to a good recruiting advertisement
1. Make the advertisement different from others.
2. Mention what the job offers, not what you need.
3. Avoid simply saying "Salesmen Wanted“
4. Avoid unnecessary prescreening
5. State the advantages of working with you
(products, history, reputation)
Quality
people will
respond
to a job with
a future!Ron McFarland, Tokyo, Japan
16
The interview is the best
place to make sure your
sales people know what the
job is through a detailed
job description.
Keys to a Good Interview
Ron McFarland, Tokyo, Japan
17
Keys to a Good Interview
Below are other things to consider when interviewing
a person for a sales position:
1. Study the candidate's personal history beforehand.
2. Do not accept interruptions during the interview.
3. Give full attention to the applicant during the interview.
4. Explain the interview process.
1-let applicant ask questions first
2-describe the job
3-ask the applicant about his background
4-ask applicant if he minds being tested
5. Let applicant answer questions fully.
6. Avoid making opinion too soon.
7. Get applicant to talk as much as possible.
8. Listen to what the applicant is saying and how he is saying it.
9. Ask direct and detailed questions of concern.
10. Have 3-4 people in the company interview the person separately
using the same format.
11. All interviewers should discuss their evaluations of the candidate.
Ron McFarland, Tokyo, Japan
18
Interview Evaluation for Sales Candidate, Name:________
Characteristic Not at all Developmental Definitely
Empathy and concern for others 1 2 3
Socially outgoing 1 2 3
Leadership ability 1 2 3
Reserved 3 2 1
Desire to do the exceptional 1 2 3
Enthusiasm 1 2 3
Need to avoid being alone 3 2 1
Need to avoid the limelight 3 2 1
Need to avoid conflict 3 2 1
Need for respect 1 2 3
Need to avoid busy work 3 2 1
Need to achieve goals 1 2 3
Good appearance and manner 1 2 3
Voice clarity 1 2 3
Speaking ability 1 2 3
Good work habits and organization 1 2 3
Sales interest high 1 2 3
Sales experience high 1 2 3
Stability and perseverance 1 2 3
Maturity and responsibility 1 2 3
Ability to get along with others 1 2 3
Ron McFarland, Tokyo, Japan
19
Salesman’s Job Description
Title: Regional Salesman
Reports to: The National/Regional Sales Manager
PROSPECTING:
1. The salesman will develop prospect lists to make distributor contacts.
2. The salesman will conduct name gathering activities at exhibitions
and other sales events.
3. The salesman will develop a customer contact filing system and
make reports of each contact.
4. For each working day, the salesman will contact customers by
telephone, email, FAX and direct visits.
MEETING & GREETING:
1. Representing the image of the company, the salesman will make the
best first impression he can.
2. He will do this by his dress, gestures, posture, speech and the way he
handles himself in front of the customer.
Ron McFarland, Tokyo, Japan
20
Salesman’s Job Description
QUALIFYING AND COUNSELING:
1. After meeting the customer, the salesman will ask the
customer questions about his business and get him talking
about his market as much as possible.
2. The salesman will consult the customer to determine the
situation.
3. He will determine which products he can and is willing to
successfully promote and sell in his region.
PRODUCT PRESENTATION AND DEMONSTRATION:
1. After determining which products the customer can market in
his area, the salesman will then recommend a product and
present its features using product pamphlets, instructions
with the product, displays and product assortments.
2. He will also demonstration the product to insure that
the customer knows how well the product performs.
Ron McFarland, Tokyo, Japan
21
Salesman’s Job Description
CLOSING THE SALE:
1. After fully presenting and demonstrating the product, the
salesman will close the sale by offering the prices on all the
products in every size and in various product assortments
(display assortment, assortments for specific applications,
etc.) After giving the prices, he will ask for an initial order.
DELIVERY AND SHIPMENT:
1. The salesman will follow up on the first shipment to the
customer and make sure it has arrived as planned.
2. He will help the customer set up the products for sale after
the shipment arrives.
3. He will advise his customer on how to promote the product
and give demonstrations at exhibitions in the area.
4. He will help market the product with point-of-purchase
material.
Ron McFarland, Tokyo, Japan
22
Salesman’s Job Description
CUSTOMER FOLLOW-UP:
1. After the customer has started selling and marketing the
product, the salesman will regularly contact the customer to
check on stock, support promotion programs and gain
information regarding users’ opinions.
GOAL SETTING:
1. The salesman and his manager will determine the number of
contacts per month to be made to both current customers
and new customers.
2. The salesman sets goals as to the number of presentations,
demonstrations and exhibitions each month.
3. The salesman reports on contacts monthly including market
information and sales opportunities.
4. He performs at or above the minimum standards set by the
company.
Ron McFarland, Tokyo, Japan
23
The need for minimum standards
Ethical & Moral Standards - Quality sales people want to be able to trust the people
they are around in the working environment.
Dress - Quality sales people have a minimum dress standard to maintain respect
with their customers.
Manners - Quality sales people have a certain level of behavior with other people.
Sales Volume Minimum Standard - A quality sales person wants to maintain a high
level of value for the customers, for the organization, for his family and for himself.
He does not want to be around low value producing people.
Having minimum standards encourages quality people to
stay and work for you, the sales manager!
Winners love to gather with other winners. They train and
motivate each other.
Failures love to gather with other failures which can destroy
the working environment!
Ron McFarland, Tokyo, Japan
24
If you can say all of your salesmen are doing a good job in
these activities, you probably have a good training program in
place. If you can not, then training is probably required. Like
McDonald’s, all the customers are treated the same by all
employees.
During the interview, the manager should make sure the
salesman knows what he is supposed to do. During training
the manager makes sure the salesman knows how to do it.
How well is the sales force performing the selling process?
Are they meeting a reasonable amount of people?
Are they determining the situation of the distributor and selecting the products, quantities and
sizes for his market?
Are they giving presentations and demonstrations?
Are they explaining promotional programs?
After the sale, are they contacting the customer from time to time to make sure things are going
well?
Training should always make you money or save you money in
more sales or lower salesmen turnover!!
Training for Profit
Ron McFarland, Tokyo, Japan
25
Training Goals
Telephone
Prospecting
Distributor
Visits
Training is not education.
Education is to provide knowledge.
Training is to create action to do a specific task.
Therefore, practice and role playing are vital for training to be
successful.
Through practice, coaching and role playing, confidence is built.
Through confidence, selling activities increase, and sales are the result.
Ron McFarland, Tokyo, Japan
26
Types of Salesman Training
Product Training - Product knowledge and product presentation.
New Salesman Training - The selling process and product
knowledge.
On-going Training - Addresses a specific competitor or customer
problem.
Low Producing Salesman Training - Addresses poor selling
salesmen's problems.
Field Training - Training in front of a customer.
Ron McFarland, Tokyo, Japan
27
Customer
The salesman should make the
appointment. If he can not do that, he
should not be meeting customers.
Field Training Contact Type #1
Salesman
Ron McFarland, Tokyo, Japan
28
The salesman should
introduce the manager.
Salesman
Sales Manager
Customer
Field Training Contact Type #1
Ron McFarland, Tokyo, Japan
29
The sales manager should follow the entire selling
process from meeting & greeting, to qualifying and
counseling, to product selection, to presentation,
closing, etc. The salesman should just observe.
Field Training Contact Type #1
Ron McFarland, Tokyo, Japan
30
After leaving the customer, the sales manager
should ask the salesman how he did. What was
a surprise? How should it be done differently?
Field Training Contact Type #1
Ron McFarland, Tokyo, Japan
31
Field Training Contact Type #2
CustomerSalesman
The salesman should make
the appointment.
Ron McFarland, Tokyo, Japan
32
Field Training Contact Type #2
Salesman
Customer
The salesman should introduce
the manager as an associate.
Sales Manager
Ron McFarland, Tokyo, Japan
33
Field Training Contact Type #2
The salesman starts the selling
process up to a decided point, like
counseling or product presentation.
Ron McFarland, Tokyo, Japan
34
Field Training Contact Type #2
Then, the sales manager finishes the
selling process with the customer.
Ron McFarland, Tokyo, Japan
35
Field Training Contact Type #2
After leaving the customer, the sales manager should ask the
salesman how things went again. How would they have done it
differently? What information did we forget to get? What other
questions should we have asked?
Ron McFarland, Tokyo, Japan
36
Field Training Contact Type #3
CustomerSalesman
The salesman should make
the appointment.
Ron McFarland, Tokyo, Japan
37
Field Training Contact Type #3
Salesman
Customer
The salesman should introduce
the manager as an associate.
Sales Manager
Ron McFarland, Tokyo, Japan
38
Field Training Contact Type #3
The salesman follows the entire selling process
from meeting & greeting to qualifying &
counseling, etc. The sales manager only
observes. He never helps at all.
Ron McFarland, Tokyo, Japan
39
Field Training Contact Type #3
After leaving the customer, the sales manager should ask the
salesman how things went again. How would he have done it
differently? When did he think he got or lost the sale? What
information did we get? What questions should we have asked?
Ron McFarland, Tokyo, Japan
40
Field Training Contact Type #3
The important point for the sales manager to
make is that he is dedicated to the development
of the salesman, not just making the sale.
Future sales will be the result.
Ron McFarland, Tokyo, Japan
41
Basic Principles of Sales Meetings
All sales meetings should be forecast and prepared in advance. The sales manager should
follow an agenda.
Participants should arrive at least five minutes early. Notifications should be given for lateness or absence.
Meeting should be held to address mutual concerns, leaving individual concerns and
issues out of the sales manager’s and staff’s control aside.
All sales people should be assigned to present something about his sales activities.
Listen to others thoroughly.
Conclusions or plan of action should be made on one subject before moving to the next.
Carefully control time.
Write minutes to confirm understanding of what was discussed and decided.
Ron McFarland, Tokyo, Japan
42
To avoid being "Mr. Nice
Guy", the sales manager
must care about his
sales people's success.
What Type of Sales Manager Are You?
Mr. Nice Guy
MR. NICE GUY:
There is no stress in
the company to sell,
if the sales manager
is too nice, and there
is no discipline for
non-performance.
If your people do well, praise them for what
they have done. If they fail to perform, talk to
them privately and help them improve. Take
responsibility for their performance.
Here are four ways sales people see their boss. There are
advantages to all of them, but one will build long-term success.
Consider how your sales people think of you as a sales manager.
Ron McFarland, Tokyo, Japan
43
What Type of Sales Manager Are You?
To avoid being "Mr. Policeman",
show respect for the people.
Keep the lines of communication
open so that they feel "safe" in
coming to you and admitting
they have problems. Knowing
that, you will be able to give
them the help they need.
Mr. Policeman
MR. POLICEMAN: Although short-
term results are sometimes
achieved, if you are perceived to be
a "Mr. Policeman", all manager-
salesman communication stops.
You do not communicate with a
policeman, and the sales staff do
not communicate with that type of a
sales manager. "Mr. Policeman"
give orders only. There is little or
no real communication, and
performance will never reach the
team's full potential. The sales
manager will not know how to
manage his sales people because
he will not know how they think.
Ron McFarland, Tokyo, Japan
44
To avoid being a "Superman", the sales manager must realize that his job is
not to sell the products, but to manage people. Sales people sell the
products. The sales manager is to help them do it, not sell for them.
What Type of Sales Manager Are You?
SupermanSUPERMAN: If the success of the company
and the penetration market are dependent on
one skilled, talented, do-it-himself sales
manager, he is playing "Superman". The
company can not grow, and it is very
vulnerable.
"Superman" does everything himself. His
staff is never required to develop selling skills
because the sales manager will do the job for
them. They do not develop competitive
selling techniques and activities because they
have never had a need.
Ron McFarland, Tokyo, Japan
45
What Type of Sales Manager Are You?
Coach
COACH: The person who can develop ten men is stronger than the
person who can do the work of ten. He teaches his people to be better.
He gives them direction and support.
A good sales manager recognizes that his number one job priority and
responsibility is to coach and train his sales people to sell.
He coaches his staff by using procedures similar to the below:
He sets minimum standards of sales performance that he
expects of his sales staff.
Together with each sales person individually, he sets
personal performance goals which are at or higher than
the minimum standard.
If a sales person is not maintaining his activities
(prospecting, presentations, etc.) or not achieving his
goals, the manager discusses it with the salesman.
He makes sure the sales people know it is the sales
manager's job to help them reach their personal
performance goal.
Ron McFarland, Tokyo, Japan
46
Confronting Deviations
When a salesman is performing below the minimum standard,
here is a method how to confront it.
Sales Manager
Salesman
Set up a private meeting after the first deviation.
Pinpoint the deviation and express how it makes you feel.
Tell the salesman why you feel that way.
Ask the salesperson how he feels about the deviation.
Have discussions as to how to overcome the deviation.
Once an agreement has been reached, praise the
salesman.
Ron McFarland, Tokyo, Japan
47
Handling Salesman’s Problems
Follow these procedures if a sales person comes to you, the sales
manager, with a given problem.
Sales Manager
Salesman
Stop what you are doing.
Look at the salesman intently and analyze his mood and be
concerned with his situation.
Listen to what he has to say and what his problem is.
Ask what he proposes to do.
Guide and counsel him to reach a solution.
Make sure he leaves with the problem and has a plan of action to
solve it.
Ron McFarland, Tokyo, Japan
48
Developing customer contact routes
If you can get the job
done on the phone,
email, website or FAX,
do it!!
Ron McFarland, Tokyo, Japan
49
Developing customer contact routes
But in many cases, getting face-to-face with a customer is the best way to
turn his attention toward your product.
Meeting customers is expensive, time consuming and tiring. Therefore,
deciding what to achieve in every contact and planning your routes are
very important.
Ron McFarland, Tokyo, Japan
50
WEEK/MONTH______SALESMAN'S NAME___________________
DateDirectMailing
Telephone Prospecting
SeenContacts
HotProspects
Presentation &Demonstration
ClosingSituation
Current Customer Contacts
Sales
(Quota/Actual)
( / )1st
2nd
3rd
4th
5th
( / )
( / )
( / )
( / )
( / )
( / )
( / )
( / )
( / )
( / )
( / )
( / )
( / )
( / )
( / )
( / )
( / )
( / )
( / )
( / )
( / )
( / )
( / )
( / )
( / )
( / )
( / )
( / )
( / )
( / )
( / )
( / )
( / )
( / )
( / )
( / )
( / )
( / )
( / )
WeekDirectMailing
Telephone Prospecting
SeenContacts
HotProspects
Presentation &Demonstration
ClosingSituation
Current Customer Contacts
Sales
( / )1st ( / ) ( / ) ( / ) ( / ) ( / ) ( / ) ( / )
WEEKLY TOTALS AND AVERAGES (Total/Daily Average)
Salesman's Daily Effort Sheet
Ron McFarland, Tokyo, Japan
51
There are three reasons why sales people do not do their job:
The Goals of Incentives & Campaigns
(1) They do not know the selling process. This should have been explained when interviewed for the job.
(2) They do not know how to do the selling process.This should have been learned during training just after employment.
(3) Something or someone interferes with their ability
or desire to do the selling job.
This section
addresses
this third reason.Ron McFarland, Tokyo, Japan
52
The Psychology of Selling
There is a lot of psychology and emotions in the business of
selling, both for the salesman and the customer. Salesmen
must learn to understand and master these emotions.
Ron McFarland, Tokyo, Japan
53
The Psychology of Selling
How does a salesman react
when the customer directly
attacks him, his company
products?
Sometimes the salesman feels the customer is in full control.
He feels helpless and at a loss, as to what to do next.
Ron McFarland, Tokyo, Japan
54
The Psychology of Selling
One response to customer rejection
“ MR. DEFENSIVE”: You are completely wrong!
If the customer says he has no interest in the salesman or his company because the
company is no good, the salesman could respond like this:
"You are wrong! We are the best company in the country. Where did you get such
a silly opinion?"
Feelings
Anger, frustration,
rejection
Ron McFarland, Tokyo, Japan
55
The Psychology of Selling
One response to customer rejection
“ MR. DEFENSIVE”: You are completely wrong!
If the customer says he has no interest in the salesman or his company because the
company is no good, the salesman could respond like this:
"You are wrong! We are the best company in the country. Where did you get such
a silly opinion?"
Chance of making
the sale
Low,
below average
Ron McFarland, Tokyo, Japan
56
The Psychology of Selling
One response to customer rejection
“ MR. DEFENSIVE”: You are completely wrong!
If the customer says he has no interest in the salesman or his company because the
company is no good, the salesman could respond like this:
"You are wrong! We are the best company in the country. Where did you get such
a silly opinion?"
Chance of building
a business relationship
Very poor
Ron McFarland, Tokyo, Japan
57
The Psychology of Selling
One response to customer rejection
“ MR. DEFENSIVE”: You are completely wrong!
If the customer says he has no interest in the salesman or his company because the
company is no good, the salesman could respond like this:
"You are wrong! We are the best company in the country. Where did you get such
a silly opinion?"
Chance of continuing
to make other contacts that day
Below average
Ron McFarland, Tokyo, Japan
58
The Psychology of Selling
One response to customer rejection
“ MR. DEFENSIVE”: You are completely wrong!
If the customer says he has no interest in the salesman or his company because the
company is no good, the salesman could respond like this:
"You are wrong! We are the best company in the country. Where did you get such
a silly opinion?"
Below average
Chance of making
better contacts in the future
from what you have learned
Ron McFarland, Tokyo, Japan
59
The Psychology of Selling
Second response to customer rejection
If the same customer says the same thing to you, you could respond like this:
"You are probably right. How did you find out about me, my company and our
products?"
DEFEATIST: You are right. Our products are not all that good.
Feelings
Helplessness, defeat,
depression, dejection
Ron McFarland, Tokyo, Japan
60
The Psychology of Selling
Second response to customer rejection
If the same customer says the same thing to you, you could respond like this:
"You are probably right. How did you find out about me, my company and our
products?"
DEFEATIST: You are right. Our products are not all that good.
Chance of making
the sale
Very low,
below average
Ron McFarland, Tokyo, Japan
61
The Psychology of Selling
Second response to customer rejection
If the same customer says the same thing to you, you could respond like this:
"You are probably right. How did you find out about me, my company and our
products?"
DEFEATIST: You are right. Our products are not all that good.
Chance of building
a business relationship
Very poor
Ron McFarland, Tokyo, Japan
62
The Psychology of Selling
Second response to customer rejection
If the same customer says the same thing to you, you could respond like this:
"You are probably right. How did you find out about me, my company and our
products?"
DEFEATIST: You are right. Our products are not all that good.
Chance of continuing
to make other contacts that day
Below average
Ron McFarland, Tokyo, Japan
63
The Psychology of Selling
Second response to customer rejection
If the same customer says the same thing to you, you could respond like this:
"You are probably right. How did you find out about me, my company and our
products?"
DEFEATIST: You are right. Our products are not all that good.
Chance of making
better contacts in the future
from what you have learned
Below average
Ron McFarland, Tokyo, Japan
64
The Psychology of Selling
Third response to customer rejection
If the same customer says the same thing to you, you could respond like this:
"Why do you say that? You may know something I do not know, as I have
never heard that opinion before." Then, get the customer to give you solid data.
He may have good facts or no facts at all!
"RATIONAL OBSERVER": What makes you say that?
Feelings
Confidence, through
questions in control, secureQuestioning, observing, listening
Ron McFarland, Tokyo, Japan
65
The Psychology of Selling
Third response to customer rejection
If the same customer says the same thing to you, you could respond like this:
"Why do you say that? You may know something I do not know, as I have
never heard that opinion before." Then, get the customer to give you solid data.
He may have good facts or no facts at all!
"RATIONAL OBSERVER": What makes you say that?
Chance of making
the sale
Average to above
averageQuestioning, observing, listening
Ron McFarland, Tokyo, Japan
66
The Psychology of Selling
Third response to customer rejection
If the same customer says the same thing to you, you could respond like this:
"Why do you say that? You may know something I do not know, as I have
never heard that opinion before." Then, get the customer to give you solid data.
He may have good facts or no facts at all!
"RATIONAL OBSERVER": What makes you say that?
Chance of building
a business relationship
Average to
Very goodQuestioning, observing, listening
Ron McFarland, Tokyo, Japan
67
The Psychology of Selling
Third response to customer rejection
If the same customer says the same thing to you, you could respond like this:
"Why do you say that? You may know something I do not know, as I have
never heard that opinion before." Then, get the customer to give you solid data.
He may have good facts or no facts at all!
"RATIONAL OBSERVER": What makes you say that?
Very good
Chance of continuing to make
other contacts that day
Questioning, observing, listening
Ron McFarland, Tokyo, Japan
68
The Psychology of Selling
Third response to customer rejection
If the same customer says the same thing to you, you could respond like this:
"Why do you say that? You may know something I do not know, as I have
never heard that opinion before." Then, get the customer to give you solid data.
He may have good facts or no facts at all!
"RATIONAL OBSERVER": What makes you say that?
Very good
Chance of making
better contacts in the future
from what you have learned
Questioning, observing, listening
Ron McFarland, Tokyo, Japan
69
The Psychology of Selling
Mastering Emotions
The successful sales person always makes his actions control his emotions.
No matter what his emotions, he continues the activities in the selling process.
The unsuccessful sales person always lets his emotions control his actions.
He stops selling when he does not feel good.
Some people motivate themselves
When they feel stress…
They act quickly.When they are afraid….
When you are angry….. They try to relax.
They listen to music.
Incentives can help us control our emotions
and keep the whole sales force motivated.
Ron McFarland, Tokyo, Japan
70
The Goals of Incentives & Campaigns
Therefore, incentives and
campaigns are not just to
get sales!
They are to help a person
who is tired of making
customer contacts and
may have stopped.
Ron McFarland, Tokyo, Japan
71
The Goals of Incentives & Campaigns
They are to help a
person who is tired of
telephoning his
customers.
Ron McFarland, Tokyo, Japan
72
The Goals of Incentives & Campaigns
They are to help him
overcome the natural
amount of rejection he
must take.
Ron McFarland, Tokyo, Japan
73
The Goals of Incentives & Campaigns
It is to get him energized
to get going again and
build his confidence.
Ron McFarland, Tokyo, Japan
74
The Goals of Incentives & Campaigns
There are actually several goals of incentives and campaigns:
1. They can help an organization sell products which are hard
to sell or have been in inventory a long time.
2. They can be used with training to encourage sales people to
use the techniques and product knowledge they learned.
3. They can help pull the attention of the salesmen to the
launch of a new product.
4. Most importantly, incentives and campaigns can be fun and
take the stress out of always making sales targets.
Ron McFarland, Tokyo, Japan
75
Sales Campaign Cost Analysis
For any investment, whether facilities, inventory or a sales campaign, an analysis of
that investment of time and money must be considered.
What is the forecast sales and gross profit without
a campaign?
What is the forecast sales and gross profit with a
campaign?
What is the difference?
What is the expense of the campaign?
Subtract the difference from the expense, and you
have your gross profit or loss of the campaign.
Sales & Gross Profit AnalysisSales & Gross Profit Analysis
Sales & gross profit without campaign: $ $
Sales & Gross Profit Analysis
Sales & gross profit without campaign: $ $
Sales & gross profit with campaign: $ $
Sales & Gross Profit Analysis
Sales & gross profit without campaign: $ $
Sales & gross profit with campaign: $ $
Difference: $ $
Sales & Gross Profit Analysis
Sales & gross profit without campaign: $ $
Sales & gross profit with campaign: $ $
Difference: $ $
Campaign expenses: $
Sales & Gross Profit Analysis
Sales & gross profit without campaign: $ $
Sales & gross profit with campaign: $ $
Difference: $ $
Campaign expenses: $
Gross profit or loss due to campaign: $
Sales & Gross Profit Analysis
Sales & gross profit without campaign: $ $
Sales & gross profit with campaign: $ $
Difference: $ $
Campaign expenses: $
Gross profit or loss due to campaign: $
Ron McFarland, Tokyo, Japan
76
Money Motivators
for commissioned
sales people:
The Goals of Incentives & Campaigns
First Sale of the Day - US$50.00 extra is given for the first hole saw
order of the day for $1,000. Each sale after that receives US $5.00
less (2nd - US $45.00, 3rd US $40.00, 4th US $35.00, and so on.......)
Free Lunch - A free lunch is given for all distributor sales people
making a certain number of dollar sales before 12:00.
Mystery product in stock - A bonus is placed on a mystery product
for the day. The sales representative or distributor who orders it gets
the bonus discount for it.
Ron McFarland, Tokyo, Japan
77
The Goals of Incentives & Campaigns
Set sales quotas for each representative –
As sales performance varies greatly by
salesman and region, individual quotas are set
for each representative. If it is achieved a
bonus is given each month. Then, every 3-6
months a ¼ year and ½ year bonus is given.
Drawing - For every dollar amount sale made
by a sales representative a card with a given
prize or money written on it is put into a
drawing box.
Some of the cards are very valuable. Some
are not. At a weekly, monthly, quarterly or
yearly sales meeting, each distributor (sales
representative) takes turns pulling out one of
the tickets until all the tickets in the drawing
box are gone.
Ron McFarland, Tokyo, Japan
78
The Goals of Incentives & Campaigns
(1) Incentives and campaigns help prevent something or
someone interfering with sales people doing their cutting
tool selling job.
(2) It can get an inactive sales force going.
(3) But, it does not replace good sales management. Incentives
and campaigns can be very expensive and the more often
you do them, the more expensive they become!!
Ron McFarland, Tokyo, Japan
79
l Failure to manage himself - The manager must manage his time, his own personal problems
and the salesmen’s problems in a professional way.
l Failure to recognize the importance of profit - Even though the manager in on salary, he must
recognize that his department must be profitable.
l Develop improper relationships - All people in the sales department must be treated the same.
l Supervising individuals in groups - Individual performance problems should be handled one-
on-one in private, not in sales meetings.
l Managing problems not objectives - Management must keep attention on what it wants to
achieve, not just handling day-to-day problems.
l Being a personal friend instead of the boss - When with the sales staff, it is always business
and never pleasure. He must maintain the respect of his people in order for them to follow his
directions. Professional respect is far more important than friendship.
l Attacking people instead of dealing with performance or activities - Management must
concentrate on performance and how to improve it. Attacking a sales person is counter-
productive. He will withdraw, and you can not communicate with him anymore.
l Failure to recognize the importance of development - Learning by sales people should get as
much praise as sales results.
l Recognizing only top sales people - Sales people making their first sale should be recognized.
Sales people with improved sales should be recognized. Sales people with improved sales
techniques should be recognized too.
l Knowing that he can only create a motivational environment - Management can only do so
much to help the sales person. The salesman has got to want to succeed on the job and be
willing to put in the effort. A sales manager can work too hard to help a salesman with no return.
Sales Manager’s Most Common Mistakes
Ron McFarland, Tokyo, Japan
80
l HAVE EMOTIONAL MATURITY - The closer our personal image of ourselves is to the image we project to
the outside world, the more mature we are. He basically has a good understanding of reality.
l HAVE FINANCIAL STABILITY - The manage must be able to remain calm even when sales are lost. By
being calm, both the salesman and the manager learns from the lost sale. If there is financial stress, very
little learning can take place.
l HAVE SALES SKILLS AND TECHNICAL KNOWLEDGE – Simply, a manager is a leader and a teacher. He
can not teach what he, himself does not know.
l HAVE DEVOTION TO THE ORGANIZATION - The manager must always be selling the value of the
organization, the value of the product and the needs and wants the customer has of the product.
l HAVE GOOD JUDGMENT - The manager must convey to the sales people what is important and what is
not. He must set strong priorities.
l HAVE EMPATHY - This is acquired over time when working with each sales person. In time, the manager
will know if the salesman is results-oriented, status-oriented, a quick decision-makers, etc.
l HAVE THE ABILITY TO COMMUNICATE WELL - The manager must know what to communicate, how to
communicate it, and get feedback to confirm it. He must also know what not to communicate.
Successful Sales Managers
Ron McFarland, Tokyo, Japan
81
Getting the sales you want
The more a sales person
helps his customers sell, the
more the sales person
himself will sell in his region.
The more a sales manager
helps his sales people sell
in their respective regions,
the more the sales
manager himself will make
nationwide.
Ron McFarland, Tokyo, Japan
82
If the market is large, or the economy is strong products will sell.
Special events, like earthquakes, interest rate changes, new
regulations, etc. can create demand.
New technology and new products can create demand and make
others obsolete. The higher performance of a product will create
demand on its own.
What affects sales?
1. The economy or market activity2. Demand influencing events3. Technology & advanced products
CCFactors that affect sales
XXX
Ron McFarland, Tokyo, Japan
83
Competition creates demand, as when one company advertises
it creates demand for all similar products, not just their own
product. That is why car dealers are very close to each other.
Sometimes availability and delivery is everything. If you have it,
you get the sale.
What affects sales?
1. The economy or market activity2. Demand influencing events3. Technology & advanced products4. Competition5. Product availability
CCFactors that affect sales
XXXXX
Ron McFarland, Tokyo, Japan
84
If it has an aggressive advertising and promotion program in
place and offer many interesting and motivating incentives to its
sales staff, products will sell.
What affects sales?
1. The economy or market activity2. Demand influencing events3. Technology & advanced products4. Competition5. Product availability6. Merchandising activities
CCFactors that affect sales
XXXXXX
Ron McFarland, Tokyo, Japan
85
If a salesman is actively involved in a prospecting program; If he
does a good job of meeting his customers and making a good
first impression; If he counsels his customers well; If he gives
outstanding presentations and demonstration, uses good
closing techniques, follows up on shipments, and regularly
contacts his customers, products will sell.
What affects sales?
1. The economy or market activity2. Demand influencing events3. Technology & advanced products4. Competition5. Product availability6. Merchandising activities7. The salesman's own efforts
CCFactors that affect sales
XXXXXX
b
Ron McFarland, Tokyo, Japan
86
Control
Six out of seven of these factors are out of the
salesman’s control. He should put more attention on
what he can control and less on the other factors.
C
What affects sales?
Factors that affect sales
b
XXXXXX
1. The economy or market activity2. Demand influencing events3. Technology & advanced products4. Competition5. Product availability6. Merchandising activities7. The salesman's own efforts
Ron McFarland, Tokyo, Japan
87
In conclusion
Looking at all levels of the sales network, the
international distributor salesmen, national
salesmen, regional salesmen, or local
distributor sales staff selling to the user, if we
can say all the sales people are putting in a
sales effort, we will cover the market…..
…..and our sales will go through the roof.
Thank you
Ron McFarland, Tokyo, Japan