SELLING AND SALES MANAGEMENT

Harcourt, Inc.

Objectives
Identify and understand the critical factors of personal selling Discuss how selling has evolved Evaluate the advantages and disadvantages of sales as a profession
Dr. Rosenbloom

Objectives
Describe the selling environments and types of personal selling Understand the sales process Appreciate the tasks and functions of the sales manager Recognize legal/ethical issues
Dr. Rosenbloom

Potential Go-to-Market Participants

Customers and Prospects

Direct Sales Force

Agents Distributors Retailers

Integrators

Alliances

Advertising Promotion Direct Mail

Telemarketing

Internet

Direct

Indirect
Sales Force Options Non-Sales Force Options

Company

Comparing Various Go-to-Market Alternatives

Low Cost per Exposure

Advertising
Direct Mail Internet

Efficiency Telemarketing

Sales Force High Sales per Exposure

Effectiveness

Personal Selling Defined

A form of person to person communication in which a salesperson works with prospective buyer and attempts to influence purchase in the direction of his or her companys products or services
Dr. Rosenbloom

Importance of Personal Selling

Allows the firm to immediately respond to the needs of the prospect Allows for immediate customer feedback Results in an actual sale
Dr. Rosenbloom

Evolution of Personal Selling

Hard sell: Formerly thought customers had to be forced into making a purchase Relationship selling: Now selling requires the development of a trusting partnership in which the salesperson seeks to provide long-term customer satisfaction

Dr. Rosenbloom

Transaction-Focused vs. Relationship Focused

Transaction-Focused
Short term thinking Making the sale has priority over most other considerations Interaction between buyer and seller is competitive Salesperson is selfinterest oriented

Relationship-Focused
Long term thinking Developing the relationship takes priority over getting the sale Interaction between buyer and seller is collaborative. Salesperson is customer-oriented

Relationship Selling

WalkerInformatio n

Dr. Rosenbloom

Why choose the sales profession?

Employment in sales is growing Sales positions offer advantages:

Good compensation Intrinsic reward from helping customers Flexible in day-to-day activities High-visibility career track Limited supervision Travel opportunities Increasing responsibilities
Dr. Rosenbloom

Leading Edge Technology

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Desirable Salesperson Traits

Empathetic

Self-motivated

Competitive

Organized

Salesperson

Goal-oriented

Enthusiastic Customeroriented
Dr. Rosenbloom

Adaptive

How Salespeople Spend an Average 46-Hour Work Week

Selling Environments and Selling Types

Selling Environments Over-the-counter Field Selling Selling Types Order taker Order getter Professional salespeople National account managers Missionary salespeople Support salespeople Outbound Inbound
Dr. Rosenbloom

Telemarketing

Over-the-Counter Selling
Order taker

Order Getter

A salesperson who only processes the purchase that the customer has already selected Retail outlets that are heavily oriented toward self-service

Dr. Rosenbloom

Over-the-Counter Selling
Order taker

Order 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 Selling
Professional Salespeople

National account managers

Missionary Salespeople

Support Salespeople

Help prospective customers to define their needs and then suggest the best means of meeting those needs, even if that requires suggesting that the prospects use a competitive product
Dr. Rosenbloom

Field Selling
Professional Salespeople

National account managers

Missionary Salespeople

Support Salespeople

Highly skilled salespersons who call on key customers headquarters sites, develop strategic plans for the accounts, make formal presentations to top-level executives, and assist with all the product decisions at that level
Dr. Rosenbloom

Field Selling
Professional Salespeople

National account managers

Missionary Salespeople

Support Salespeople

They do not seek to obtain a direct order from their customers Primary goal is to persuade customers to place orders with distributors or wholesalers
Dr. Rosenbloom

Field Selling
Professional Salespeople

National account managers

Missionary Salespeople Support Salespeople

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
Dr. Rosenbloom

Telemarketing
Telemarketing

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) Dr. Rosenbloom

The Personal Selling Process

Prospecting

PreApproach

Approach

Follow-Up

Need Identification

Gaining Commitment

Handling Objections

Presentation

Dr. Rosenbloom

The Personal Selling Process

Prospecting
Prospecting involves finding qualified sales leads Qualified sales leads: potential customers that have a need for the salespersons product, and are able to buy Referrals: obtained by the salesperson asking current customers if they know of someone else who might have a need for the salespersons product Cold-calling: means contacting prospective customers without a prior arrangement Dr. Rosenbloom

Referrals

Relationship between customer and salesperson deteriorates

Friends and acquaintances P P Directories P P P P P P P Telemarketing advertising and P P

Business failure

New buyer buys from another source

P
Trade publications and trade shows

Acquisitions and mergers

The Ferris Wheel concept, which is aimed at supplying an ongoing list of prospects, is part of world sales record holder Joe Girards customer strategy

Customer moves

Death of customer

Cold calling

Customer has only a one-time need for product

Networking

Customer needs change because of new technology

Prospecting Through Advertising

Zip Pak

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Referrals

Deloitte & Touche

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The Personal Selling Process

Pre-approach

The collection of information about the potential customer and the customers company prior to the initial visit Researching the prospect and the company will assist the salesperson in planning the initial presentation to the prospective customer
Dr. Rosenbloom

Asking the Right Questions

1. Situation Questions
e.g - how many people does your company employ? - what projects are you involved with at present? 2. Problem Questions e.g.- are you satisfied with.....? - what image of quality do you have? 3. Implication Questions e.g. - what effect might cheaper products have on your business? - Are there problems in reliability/compatibility?

4. Need - Payoff Questions

- What effect would specifying higher quality products have? - What benefits do you see in using this type of product?

The Personal Selling Process

Approach

The development of rapport with the customer The chance to make a good first impression The salesperson should adapt to the potential customers social style
Dr. Rosenbloom

Social Styles
Fact-oriented

Analytical Risk Adverse

Driver Risk Takers

Amiable

Expressive

People-oriented

Dr. Rosenbloom

Social Styles
Fact-oriented Analytical Risk Adverse Amiable Expressive Driver Risk Takers

People-oriented

Very fact-and-detail oriented Require time to make decisions Not interested in socializing The salesperson should inundate the analytical with facts and figures that can be Dr. Rosenbloom supported with documentation

Social Styles
Fact-oriented Analytical Risk Adverse Amiable Expressive Driver Risk Takers

People-oriented

Action-and goal oriented, and makes quick decisions Basic facts and not big on socializing The sales person should provide the bottomline information first and then work backward Dr. Rosenbloom to fill-in essential details

Social Styles
Fact-oriented Analytical Risk Adverse Amiable Expressive Driver Risk Takers

People-oriented

A visionary with big ideas for the future but not a detailoriented individual Hesitant to make quick decisions and will seek consensus from others Seeks to socialize with the salesperson The salesperson should provide assurances that will reduce the amiables feeling of risk Dr. Rosenbloom

Social Styles
Fact-oriented Analytical Risk Adverse Amiable Expressive Driver

Risk Takers

People-oriented

Loves to socialize and will frequently base the purchase decision on the relationship with the salesperson The salesperson should establish a personal relationship with the expressive by telling anecdotal stories, by socializing outside the office and by relating personal information Dr. Rosenbloom

The Personal Selling Process

Need Identification

Requires asking probing questions of the prospective customer to determine needs The salesperson should ask open-ended questions Make sure that the customers needs and potential concerns are addressed
Dr. Rosenbloom

The Personal Selling Process

Presentation

The focus of the sales presentation is the salespersons explanation of how the features of the product provide benefits Presentation may be flexible or memorized The salesperson should be prepared to provide documentation for any statements of fact that are made Dr. Rosenbloom

The Personal Selling Process

Handling Objections The salesperson may have failed to provide adequate information, or have not demonstrated how the product meets the needs of the prospect Objection as a sign of interest on the part of the prospect Provide information that will ensure the prospects confidence Dr. inRosenbloom making the purchase

The Personal Selling Process

Gaining Commitment

Commitment is gained when the prospect agrees to take the action sought by the salesperson The salesperson must ask for commitment
Dr. Rosenbloom

The Personal Selling Process

Follow- Up

The salesperson complete any agreed upon actions The salesperson should stay in touch after the sale by writing thank-you notes, clipping and mailing newspaper articles of interest to the prospect and calling on the customer to ensure Dr. Rosenbloom the customers satisfaction

SmartSource At-Shelf Sampling (Prospecting)

SmartSource AudioInk (Preapproach)

SmartSource Carts (Approach)

SmartSource Coupon Machine (Presentation)

SmartSource Electronic Shelftalk (Close)

SmartSource Floortalk (Follow-up)

AIDAS Theory
this theory is based on the premise that during a sales presentation, the prospect consciously goes through five different stages: Attention, Interest, Desire, Action and Satisfaction. Attention: The salesperson should attract the prospect to his presentation

before he actually goes into the details of the same.

Interest: He/she should maintain the interest of the prospects throughout the presentation. Desire: The next step in the sales process, as per the AIDAS theory, is to

create a strong desire in the prospects mind to purchase his product.

Action: Once the salesperson has been successful in taking his prospect through the three stages, as discussed above, he should induce the Cont. prospects into actually buying the product.

Right Set of Circumstances Theory

The advocates of this theory opine that all the circumstances, which led to the
sales, were appropriate or right for the sales to have taken place. In other words, if the salesperson is successful in securing the prospects attention, maintaining his interest and inducing his desire to buy the product, sales will result. Moreover, if the salesperson is highly skilled, he will take control of the presentation, which would lead to sales.

Cont.

Buying Formula Theory

The buying formula theory is based on the analysis of the sequence of events that goes on in the buyers mind during the sales presentation. Thus, the theory emphasises on the factors internal to the prospect and the factors which are external, i.e., influence of the salesperson on his prospects decision to buy his product. The theory is based on the presumption that the salesperson will take care of the external factors. The sequence of events in a prospects mind can be represented as
Need Solution Purchase

There are all the chances that a continuous relationship will develop between the prospect and the salesperson. As a result of sales, the satisfaction will also come in the sequence. This sequence can be presented as
Need Solution Purchase Satisfaction

Asking the Right Questions

1. Situation Questions
e.g - how many people does your company employ? - what projects are you involved with at present? 2. Problem Questions e.g.- are you satisfied with.....? - what image of quality do you have? 3. Implication Questions e.g. - what effect might cheaper products have on your business? - Are there problems in reliability/compatibility?

4. Need - Payoff Questions

- What effect would specifying higher quality products have? - What benefits do you see in using this type of product?

Strategic/Consultative Selling Model