Customer focus

Enhances customer loyalty

Source of competitive advantage

2
Allows a targeted market segment approach
 one customer at a time
 customize sales calls and presentations by needs
 important source of market knowledge and customer
needs assessment

3
Creates high switching costs
 salesperson (knowledge, expertise, relationship) creates
product/service differentiation, particularly when
competitors’ products deliver the same basic benefits
Loyalty reduces the customers’ price sensitivity

4
Creates a barrier to entry
 costs of creating a sales force
 market access
Creates a medium-to-long term competitive
advantage
 unlike advertising (medium-term) or pricing (short-
term)

5
Describing
the
Personal
Selling
Function

Defining the Determining

Strategic Developing Directing Sales Force
Role of the the Sales the Sales Effectiveness
Sales Force Force and
Function Performance
Crucial Function in an Organization.
Principle and generating function in an organization.
Helps an organization achieve its goals
Contributes to profit.
Helps in attaining long term growth.
Personal selling refers to personal
communication with an audience
through paid personnel of an
organization or its agents in
such a way that the audience
perceives the communicator’s
organization as being the source
of the message.
Peddlers selling door Selling function
to door . . . served became more
as intermediaries structured

As we begin the 21st century, selling continues to develop,

becoming more professional and more relational

Selling function
Business organizations
became more
employed salespeople
professional
Von Oliver is currently national sales manager for a
division of Lockheed Martin Corp. Von’s typical day starts
at 7:30 A.M. going through e-mail and prioritizing the days
events. During the morning he will review reports, and
spend time with his sales reps. He will have lunch with
customers and spend the afternoon making sales calls
with his sales reps. He spends late afternoon reconciling
the days activities and setting his agenda for the next day.

Action
 Result

Von Oliver is involved in a variety of different activities.

He spends much of his time interacting with
individuals, especially salespeople and customers.
But, he also plans strategies and continuously
monitors performance. In other words, he performs all
the major sales management functions.
PRETRANSACTIONAL PHASE (Prospecting,
Qualifying, Precall Planning)

TRANSACTIONAL PHASE (Approach, Needs

Discovery, Presentation, Handling Objections,
Closing)

POSTTRANSACTIONAL PHASE (Service and

Follow-up)
Prospecting
 External Sources
Direct Inquiries
Referrals
Directories
Cold Canvassing

 Internal Sources
Company records
Pre-approach

Precall Planning
 What do I want to accomplish?
 What do I know about the prospect?
 Where can I find information?
 What am I going to say?
The Approach
 Securing Appointments
 Establishing Rapport

“Why is the approach important?”

 It can help capture the buyer’s attention
 It can help to establish a harmonious atmosphere
 It serves as a good transition to the presentation
 It can help in need determination
The Approach
 Types of Approaches
Introductory Approach
Assessment Approach
Product Approach
Consumer Benefit Approach
Referral Approach
Presentation Types
 Canned
 Organized
 Tailored
The Presentation
 Focus on Benefits, not just Features
 Keep it Simple
 Talk the Prospect’s Language
 Get the Prospect Emotionally Involved
 Seek Credibility
Overcoming Objections
LSCPA Approach to Overcoming Objections:
 Listen to the buyer’s feelings
 Share the concerns without judgment
 Clarify the real issue with questions
 Problem solve by presenting options/solutions
 Ask for action to determine commitment
Closing
 Alternative Choice
 Summary Close

Service and Follow-up

 Entering Orders
 Installation of Product
 Training
 Handling Billing Problems
 Stimulus Response Selling
 Mental States Selling
 Need Satisfaction Selling
 Problem Solving Selling
 Continue
Salesperson Buyer
Process until
Provides Responses
Purchase
Stimuli Sought
Decision
Attention Interest Conviction Desire Action
 Present Continue
Uncover and
Offering to Selling until
Confirm
Satisfy Purchase
Buyer Needs
Buyer Needs Decision
 Continue
Generate Evaluate Selling
Define
Alternative Alternative until
Problem
Solutions Solutions Purchase
Decision
 Business Consultant

The process of helping

customers reach their
strategic goals by using Strategic Orchestrator
the products, service,
and expertise of the
selling organization.
Long-term Ally
 Core Selling Team Selling Center

Relatively permanent, Relatively temporary,

customer-focused group transaction-focused group

Membership determined by Membership determined by

job assignment to a specific involvement in sales
buying organization transaction

One selling center per

One team per buying unit
sales opportunity
 Core Selling Team Selling Center

Membership Membership
relatively stable very fluid

Characteristics of team Characteristics of team

depend on characteristics depend on characteristics
of buying organization of sales opportunity

Mission is strategic with Mission is tactical

respect to the buying with respect to the
organization sales opportunity
A global telecommunications leader
prospect of losing market share amid stiff competition
The client needed to improve its win/loss ratio to
maintain and expand
sales teams lacked key strategic skills to penetrate
major accounts.
 a new approach to develop highly innovative and successful strategies
 SMG's sales consultants worked with the client to target specific
accounts and customize the Strategic Selling program.
 Each two-day Strategic Selling session began by analyzing the target
account's business needs, challenges, goals, objectives, and strategies,
as well as the key players involved in the decision-making process.
 The group then divided into teams, where they assessed competitor's
vulnerabilities and strengths, and began planning their attack.
 the teams developed successful response strategies to what-if
scenarios as well as a detailed action plan to pursue the sale.
 The Strategic Selling program was successful in identifying new
strategies for the client's sales professionals
 During the Strategic Selling session, the client discovered that the
automobile company was looking for a suitable business to co-
sponsor its racing team.
 The client focused on trying to win a multi-year information
technology contract from a large government agency. For this the
company developed a new strategy: to bid as close to the
requirements as possible without increasing cost
 The client lobbied that the procurement requirements artificially
raised costs and was anti-competitive.