Sales
Fundamentals

History

The Purpose of Business is to:
 Increase the general well being of humankind through
the sales of goods and services

Profit is a Means to an End
 Profit is needed to serve humankind
 Profit is needed to operate the business
 Profit is needed to provide products to the marketplace

The Two Basic Functions
of Business
 Production of goods or creation of services
 Marketing those goods and services

What is Marketing?
 Marketing is a process of planning:
The conception, pricing, promotion, and distribution of goods,
services, and ideas
To create exchanges that satisfy individual and organizational
objectives

Customer Orientation’s Evolution
The production concept
The selling concept
The marketing concept

The Production Concept
Companies were production oriented
We know what people
want – they want our
product.

Personal Characteristics Needed to Sell for Building
Long-term Relationships

The Marketing Group is the Link
Between Customers and the
Organization

The Selling Concept
Characterized by product demonstrations and
unsophisticated sales techniques
Emphasis on the product
Product created and then sold
Management is sales-volume oriented
Stresses needs of the seller

The Marketing Concept
Emphasis is on customer’s wants
Customer’s wants drive production
Management is profit-oriented
Planning is long-term
Stresses wants of buyers

 Selling is just one of many marketing
components
 Personal selling includes
Personal communication
of information
Persuasion
Helping others
Goods
Services
Ideas
What is Selling?
1-13

What Salespeople are Paid to
Do
 Salespeople are paid to sell – that is their
job
 Performance goals are set for:
Themselves – In order to serve others and earn a
living and keep their job
Their employers – So the companies will survive
Their customers – To fulfill needs and help
organizations grow
1-14

What Does A Salesperson Do?
 Creates new customers
 Sells more to present customers
 Builds long-term relationships
 Provides solutions to customer’s problems
 Provides service to customers
 Helps customers resell products to their
customers
 Helps customers use products after purchase
 Builds goodwill with customers
 Provides company with market information
1-15

A Sales Personnel Career Path
1-16

Success in Selling–What Does it Take?
Love of Selling is the Heart of Helping Others
1-17

The Customer is at the Center of the
Sales System: ABC’s
1-18

Product: It’s More Than You Think
A good is a physical object that can be purchased
A service is an action or activity performed for a fee
Value-added refers to benefits received that are not
included in the purchase price of a good or service

Four Elements of the Marketing
Mix and Four Promotion Activities

Sales Jobs Are Different
 Salespeople:
Represent their companies to the world
Work with little or no supervision
Require more people skills
Are often allowed to spend company funds
May require travel and being away from home
1-21

The Future of Salespeople:
Skills Required
Learning conceptual skills
Example: planning
Learning human skills
Example: working with customers
Learning technical skills
Example: selling skills
1-22

Salespeople Rely on Technology to
Serve Their Customers
GPS Device
Cell Phone
Tablet

Know Your Company
General Company Information
Company growth and accomplishment
Policies and procedures
Production facilities
Service facilities

Knowledge Builds RelationshipsKnowledge increases a salesperson’s confidence
Knowledge increases a buyer’s confidence in
salesperson
More knowledge leads to more sales and more
relationships

Know Your Customers
Find out all you can

Know Your Resellers
Understand the channel of distribution
Know as much about each channel member as possible

Advertising Aids Salespeople
Main ingredients of a firm’s promotional effort
Types of Advertising Differ
National advertising
Retail advertising
Cooperative, or co-op, advertising
Trade advertising
Industrial advertising
Direct-mail advertising
Internet advertising

Know Your Competition, Industry,
and Economy
Understand competitors’
products, policies, and
practices

Steps Before the Sales
Presentation
Prospecting  Appointment  Planning
Rule of thumb:
40% preparation
20% presentation
40% follow-up

Web Sites Can Provide Valuable
Information to Salespeople

Prospectin
g &
qualifying
Pre-
approach
Approac
h
Presentation
&
demonstratio
n
Handling
objection
s
Closing
Follow-
up
Identify
qualified
potential
customers
Learn as
much as
possible
about
customer
Make a
relationship
Tell the product “story” &
focus on customer benefits
Overcome customer
objections
Ask for
an order
To insure customer
satisfaction &
repeat business

Prospectin
g &
qualifying
Pre-
approach
Approac
h
Presentation
&
demonstratio
n
Handling
objection
s
Closing
Follow-
up
Identify
qualified
potential
customers
Learn as
much as
possible
about
customer
Make a
relationship
Tell the product “story” &
focus on customer benefits
Overcome customer
objections
Ask for
an order
To insure customer
satisfaction &
repeat business

The sales process
is a sequential
series of actions:
10. Follow-up & Service10. Follow-up & Service
9. Close9. Close
8. Trial close8. Trial close
7. Meet objections7. Meet objections
6. Determine objections6. Determine objections
5. Trial close5. Trial close
4. Presentation4. Presentation
Building Relationships through the
Sales Process
2. Preapproach/Panning2. Preapproach/Panning
3. Approach3. Approach
1. Prospecting/Customer1. Prospecting/Customer
1-34

Excellence in Selling
First Impression
Depth of knowledge
Breadth of knowledge
Adaptability
Sensitivity
Enthusiasm
Self-esteem
Extended focus
Sense of humor
Creativity
Taking risks
Honesty & ethics

Exhibit 6-4: Prospecting Methods
that Work!

Exhibit 6-5: The Processing System
Within a Telemarketing Center

The Telephone Appointment
Plan and write down what you want to say
Clearly identify yourself and your company
State the purpose of your call and outline how prospect
may benefit from the interview
Prepare brief sales message – stressing benefits over
features and only enough info to stimulate interest
Do not take no for and answer – be persistent
Ask for an interview so you can further explain benefits
Phrase your appointment request as a question

Example of Markup on Selling Price
in Channel of Distribution

The Top 10 Sales Methodologies You Should Consider for Your Business
Sales is the air a company breathes. Without sales, growth stagnates – which can end the
life of an organization. It’s one thing to secure sales, but another to scale a company based
on measurable sales performance.
A common challenge for growing businesses is building a scalable sales model. Most
organizations start with a business owner selling themselves and a product they are
passionate about. People who believe deeply in what they do can often sell a product – if
only because their blood, sweat, and tears are intoxicating to customers. But what happens
when that next seller comes into the organization? And then another, and then yet another?

The Top 10 Sales Methodologies You Should Consider for Your Business
1. Target Account Selling : Over the past 25 years, Target Account Selling has become a
standard in the sales world, with more than 1,000,000 sellers trained to convert smaller
customers (or smaller groups within larger environments) into bigger and more permanent
customers. This methodology breaks larger deals down into smaller components. Using a
strategic plan throughout the life of the sales cycle deemphasizes the politics of an account.
Target Account Selling is popular because it automates the entire sales process via
Salesforce, making it easier to integrate with existing workflows. The cost of training the staff
for target account selling is high, but most experienced people you hire will already
understand this methodology.
2. SPIN Selling : When Neil Rackham wrote the book SPIN Selling in 1989, I doubt he knew
it would still be in use decades later. “SPIN” stands for Situation, Problem, Implication, and
Need-Payoff.
It involves asking questions to understand the buyer’s situation, issues, consequences, and
situation, respectively.
3. SNAP Selling : SNAP Selling, introduced by Jill Konrath in 2012, makes the assumption
that everyone is busy and frazzled. The goal is to speed up the sales process by being
Simple, Invaluable, Aligned with the needs of the customer, and a Priority. Part of the focus
is about getting “in the head” of your customers. The most important part of this book isn’t
the methodology itself – it’s the value chain that it demonstrates.
4. The Challenger Sale: The Challenger Sale breaks sellers up into five buckets:
Relationship Builders, Hard Workers, Lone Wolves, Reactive Problem Solvers, and
Challengers. The Challengers are the most successful today, given the prevalence of large
sales in enterprise environments.

Good time management skills = academic
success.
Time management has two parts:
managing time and managing goals.
Time Management

Term Calendar
Weekly Schedule
To-do list

Review of Time Management
 Manage your time
• Term Calendar
• Weekly Calendar
• To do list
 Manage your goals:
• Write out your goals.
• Discuss your goals with a mentor.

Sales
Fundamentals