Selling & sales management arise roby

SELLING
AND
SALES MANAGEMENT
- Arise Roby
Harcourt, Inc.
ARISE TRAINING & RESEARCH CENTER

ARISE TRAINING & RESEARCH
CENTER
Objectives
n Identify and understand the
critical factors of personal
selling
n Discuss how selling has evolved
n Evaluate the advantages and
disadvantages of sales as a
profession

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

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n 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
company’s products or
services
Personal Selling Defined

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n Allows the firm to immediately
respond to the needs of the
prospect
n Allows for immediate
customer feedback
n Results in an actual sale
Importance of Personal Selling

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

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n WalkerInformation
Relationship Selling

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n Employment in sales is growing
n Sales positions offer advantages:
n Good compensation
n Intrinsic reward from helping customers
n Flexible in day-to-day activities
n High-visibility career track
n Limited supervision
n Travel opportunities
n Increasing responsibilities
Why choose the sales profession?

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n Lawson Software
Leading Edge Technology

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Desirable Salesperson Traits
Salesperson
Empathetic
Competitive
Goal-oriented
Adaptive
Customer-
oriented
Enthusiastic
Organized
Self-motivated

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

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Over-the-Counter Selling
Order taker
Order Getter
n A salesperson who only processes the
purchase that the customer has already
selected
n Retail outlets that are heavily oriented toward
self-service

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Over-the-Counter Selling
Order taker
Order Getter
n A salesperson who actively seeks to provide
information to prospects, persuade
prospective customers, and close sales
n Personal service oriented stores
n May practice suggestion selling

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Field Selling
n 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
Missionary Salespeople
Support Salespeople
Professional Salespeople

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Field Selling
n 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
Support Salespeople

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Field Selling
n They do not seek to obtain a direct order from their
customers
n Primary goal is to persuade customers to place
orders with distributors or wholesalers
Support Salespeople

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Field Selling
n Support the sales force in a number of ways
n Technical support salespeople assist with
technical aspects of sales presentations
n Merchandisers may set up product displays
Support Salespeople

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Telemarketing
n Utilizing the telephone for prospecting, selling,
and/or following up with customers
n Outbound: the salesperson uses the telephone to call
customers
n Inbound: Firms which have customers calling the
vendor company to place orders (toll-free phone
numbers)
Telemarketing

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The Personal Selling Process
Prospecting
Pre-
Approach
Presentation
Handling
Objections
Approach
Follow-Up
Need
Identification
Gaining
Commitment

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

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n Zip Pak
Prospecting Through Advertising

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n Deloitte & Touche
Referrals

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Pre-approach
n The collection of information about the potential
customer and the customer’s company prior to the
initial visit
n Researching the prospect and the company will
assist the salesperson in planning the initial
presentation to the prospective customer

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Approach
n The development of rapport with the customer
n The chance to make a good first impression
n The salesperson should adapt to the potential
customer’s social style

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

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Social Styles
Risk
Takers
Analytical
Driver
Amiable Expressive
Fact-oriented
Risk
Adverse
People-oriented
n Very fact-and-detail oriented
n Require time to make decisions
n Not interested in socializing
n The salesperson should inundate the analytical with
facts and figures that can be supported with
documentation

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Social Styles
Risk
Takers
Analytical
Driver
Amiable Expressive
Fact-oriented
Risk
Adverse
People-oriented
n Action-and goal oriented, and makes quick
decisions
n Basic facts and not big on socializing
n The sales person should provide the bottom-line
information first and then work backward to fill-in
essential details

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Social Styles
Risk
Takers
Analytical Driver
Amiable Expressive
Fact-oriented
Risk
Adverse
People-oriented
n A visionary with big ideas for the future but not a detail-
oriented individual
n Hesitant to make quick decisions and will seek consensus
from others
n Seeks to socialize with the salesperson
n The salesperson should provide assurances that will reduce
the amiable’s feeling of risk

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Social Styles
Risk
Takers
Analytical Driver
Amiable
Expressive
Fact-oriented
Risk
Adverse
People-oriented
n Loves to socialize and will frequently base the purchase
decision on the relationship with the salesperson
n The salesperson should establish a personal relationship
with the expressive by telling anecdotal stories, by
socializing outside the office and by relating personal
information

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Need
Identification
n Requires asking probing questions of the
prospective customer to determine needs
n The salesperson should ask open-ended questions
n Make sure that the customer’s needs and potential
concerns are addressed

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Presentation
n The focus of the sales presentation is the
salesperson’s explanation of how the features of the
product provide “benefits”
n Presentation may be flexible or memorized
n The salesperson should be prepared to provide
documentation for any statements of fact that are
made

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

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Gaining
Commitment
n Commitment is gained when the prospect agrees to
take the action sought by the salesperson
n The salesperson must ask for commitment

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Follow- Up
n The salesperson complete any agreed upon actions
n 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 the customer’s
satisfaction

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Sales Certification
n Several organizations now offer certification
programs that are designed to increase the
professionalism and expertise of the salespeople
n Sales and Marketing Executives International (SMEI)
n Hospitality Sales and Marketing Association International
(HSMAI)
n National Association of Sales Professionals (NASP)

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Sales Management
n Recruit, train, motivate, and evaluate their
sales representatives
n Manage territories
n Develop sales plans and sales forecasts
n Identify business opportunities and create
appropriate strategies
n Encourage the sales team to create added-
value for the customer

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Recruiting
Sales Management
n Individuals with desirable salesperson traits
n Individuals whose values and goals match
those of the firm
Salesperson
Empathetic
Competitive
Goal-oriented
Adaptive
Customer-
oriented
Enthusiastic
Organized
Self-motivated

CENTER
Sales Force Training
n Train the new sales representatives on product
and customer knowledge and selling skills
n Sales training is expensive but the pay off is
worth it.
n All sales representatives should periodically
receive training to keep up-to-date and to keep
their skills honed
Sales Management

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Motivating the Sales Force
n Provide further motivation to salespeople and to
encourage salespeople to focus on the priories of
the company
n Reward when the pre-specified performance level
(quota) is reached
Sales Management
Sales Force Quotas

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Motivating the Sales Force
n Regular praising of salespeople and let them know
their efforts are appreciated
n Rapport-building, open communication, and
modeling behavior
n Good sales management feedback
Sales Management
Sales Coaching

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Sales Management
Sales Force Compensation
Regional Salaries

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Sales Management
n The sales force have greater security but
no desire to put extra efforts

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Sales Management
n A great deal of insecurity due to
uncontrollable factors like economic
recession

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Sales Management
Bonus paid on
this difference
n Salary plus Commission

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Evaluation of Performance
n Sales managers should provide continual
guidance and feedback
n Use more quantitative methods of evaluation
to reduce bias in the evaluation process
Sales Management
Qualitative
factors
communication skills, product knowledge,
attitude, selling skills, initiative/aggressiveness,
appearance/manner, and knowledge of the
competition
Quantitative
factors
sales volume in dollars, sales volume to previous
year’s sales, number of new accounts, net dollar
profits and sales volume by dollar quota

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Territory Organization and Management
n Which method to organize the territory?
n By product line or by geographical area
n Around customer
Sales Management
u The salesperson calls on customers that
represent dozens of different industry
(more traditional)
u The salesperson is asked to call on
customers in one or two specific industries,
regardless of where the customer is located
geographically

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n Each salesperson should feel his/her territory offers as
much potential as each colleagues’ territory
n Each salesperson should feel the territory division does
not require that he/she work any harder than any other
salesperson
Sales Management
Territory Allocation

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n The sales manager should help the sales force maximize
their territories’ potential
n Make sure that the salespeople are not meeting their
quotas from the large purchases of one key buyer
n Utilize market research to ensure no potential accounts
are being overlooked in any given territory
Sales Management
Territory Potential

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Sales Force Technology
n The use of technology among sales
forces is growing
n Sales managers must be computer
literate
n Notebook computers, cellular phones,
and portable fax machines

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Sales Force Technology
nPalm
Computing,
Inc.

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Legal and Ethical issues
n Obey the instructions of the company
n Act with “due diligence”
n Be responsible for the company’s property
n Exhibit loyalty
n Relay information to the company that is
relevant
Salesperson’s Obligations

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Legal and Ethical issues
Company’s Responsibility
n Comply with any agreement made between the
company and the salesperson
n Reimburse the sales expenses incurred while
carrying out the business
n Warn the salesperson of any risks associated with
business practices
n Protect the salesperson against legal liability

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Unethical/Illegal Behaviors
n Price discrimination and unfair pricing
n Gifts, gratuities, and bribes
n Misleading advertising
n Unfair competitive practices
n Defrauding customers
n Unfair credit practices
n Price collusion with competitive firms

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Selling Activities
n Performing the sales
function
n Working with orders
n Servicing the product
n Servicing the account
n Providing the
information to
management
n Participating in
conferences/meetings
n Training and
recruiting
n Entertaining
customers
n Traveling
n Working with
distributors

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Missionary Selling
Technical Selling
New-business Selling
Retail Selling
n Build sales volume
by providing
customers with
promotional
assistance in the
form of advertising
and sales promotion
Trade Selling
Specific Types of Sales Jobs
Telemarketing

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Trade Selling
Technical Selling
Retail Selling
n Where trade
salespeople sell to,
missionary
salespeople sell for
its direct consumers
Missionary Selling
Telemarketing

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Missionary Selling
Trade Selling
Retail Selling
n Often technically
trained in
chemistry,
engineering, and
computer science
n Support the regular
sales force or help
sell the product
Technical Selling
Telemarketing

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n Used in industries
that have one time
or very infrequent
sales, thus,
salespeople must
constantly develop
new leads to
generate sales
Missionary Selling
Trade Selling
Technical Selling
Retail Selling
Telemarketing

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n Wide range of skills
required
n Can require
knowledge,
communication
skills, and ability to
work with diverse
customers
Missionary Selling
Trade Selling
Technical Selling
Retail Selling
Telemarketing

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n Telemarketing uses
outbound calls to:
n Open new accounts
n Qualify advertising
leads
n Service existing
business
Missionary Selling
Trade Selling
Technical Selling
Telemarketing
Retail Selling

CENTER
n Aptitude
n Skills Level
n Motivational Level
n Role Perceptions
n Personal
Characteristics
n Adaptability
Salesperson Performance

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