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 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 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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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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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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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

Intro to Sales

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