Sales management 5

1. SALES AND DISTRIBUTION MANAGEMENT Swarit Yadav

2. PGDM (IIM Raipur) Bakhresa FMCG (South Africa) Relationship Manager (HDFC Bank) MD- Shyam Hospital Faculty(MBA)- GLA University, Mathura Swarit Yadav

3. Discussion  United Machines

4. Selling Process Follow-up Closing the Sale Handling Objections Sales Presentation and Demonstration Discovering and Understanding Approach Pre-approach Prospecting and Qualifying

5. Prospecting and Qualifying  Prospecting  Qualifying

6. Prospecting  First comes sales lead  Sales lead is not same as prospect  Prospect is a potential customer  Example  German machine tool manufacturing company provides sales leads to united machines  Apart from sales team, marketing team is also contributing to generate leads

7. Prospecting  Methods for Identifying Leads  Obtaining names and addresses  Consulting Existing Customers  Effective way of generating leads  Referrals from External Sources  Suppliers  Intermediaries  Bankers  Trade associations  Chambers of Commerce

8. Prospecting  Referrals from Internal Company Sources  Company websites  Trade shows  Direct mail  Company advertisements  Telemarketing  Inbound telemarketing  Outbound telemarketing to call prospects

9. Prospecting  Standard Industrial Classification (SIC) System  Secondary data source for B2B  Each company assigned 4 digit number  For generating leads  Used for calculating market potential  ISIC system  Publications  Newspapers  Yellow pages  Directories  Trade journals  Computer generated databases  Commercial publications published by the government  Private publishers

10. Prospecting  Networking by Salespeople  Joining the social clubs  Civic organizations  Professional bodies  Friends and relative  Cold Canvassing  Usage is declining  Internet  Advanced Google search

11. Qualifying  Conditions  Customer should have a need  Financial capacity and affordability  Lead should have a capacity to take decisions

12. Qualifying  Hot Prospects  Likely to buy in near future  Has financial capacity  Handed over to sales team for conversion  Warm Prospects  Want to buy but non-commital  Given to telemarketing team for follow-up  Cold Prospects  Will take long time to buy  Requires a lot of effort  Pending list for future follow-up

13. Process of Prospecting and Qualifying

14.  Pre Approach  Information Gathering  Regarding the company, products, buying pattern etc.  Builds confidence in sales person

15.  Planning the sales call  4 questions  Whom to see?  Where to go?  What are the call objectives  How to approach the prospects  Approach as high in the hierarchy and possible  It takes 4 calls to convert enquiry into sales  Set objective for each of the sales call  Should plan the approach for the call

16.  Approach  Appearance  Attitude  Opening line of sales person  Introductory approach  Opening benefit statement  Product approach

17.  Discovering and Understanding Buyer's Needs  IBM and Xerox came up with SPIN model  Find needs by asking questions  Situational questions  Questions on buyers current condition  How many people will be in this room for A/C?  Who is involved in buying decision?  How often do you carry out maintenance of these machines?  Questions should be asked early in the meeting  But accordingly and not in a rigid sequence

18.  Problem questions  Have you experienced any problems with the servicing of the machine?  Do you have any problems with the quality of the previous product?  Was there any delay in the shipping of the product?  How satisfied are you with the response time of the current service provider?

19.  Implication questions  Asking questions for implication of not solving the problem  What is the impact of delay in the delivery on your production?  Have these staff problems led to any client lose?  What is the consequence of the error on you customers?  Plan implication question before the sales call

20.  Need-payoff questions  Solution-value or need-payoff questions  To increase the acceptability of the solutions  Positive and constructive  By using our material handling equipment if you could save 2000sq. ft. area in your warehouse, how much of saving would that mean?  How important is it if the response time to your customer would improve by 50%?  Help Selling to buying committee and buying centre

21.  The sales presentation  Written proposal  Technical specifications  Price  Terms of payment  Delivery schedule  Taxes and duties  Proof of claims  Additional benefits  Service  Training  Guarantees

22.  Understanding sales presentation methods  Stimulus-Response Method  Also called canned approach  Demonstrating the product feature without asking for the needs  Not very effective in creative situations  Good for new sales people  Will not be effective for sophisticated buyers

23.  Formula Method  Formulated approach/mental states selling  AIDA model  Attention  Favorable first impression  Formal dress  Neatness  Opening statement  Firm handshake  Eye contact  Manners  Compliment and positive statement

24.  Interest  Which feature or aspect is liked by the customer  Carrying sample of the product if possible  Visual aids like CD for videos  Product leaflet/product photographs  Focusing on special needs of the customer  Desire  How the product can solve the buyer’s problem  Objections need to be answered properly  Action  Buying action/closing the sale  Closing the sale will be discussed later

25.  Need satisfaction method  Most challenging and creative form of selling  Features  Facts/information or characteristics of the salesperson’s product, service or market offering  Ex- our ceilling fan has 2 ball bearings  Advantages  Demonstrate the help to the prospect  Due to our ball bearing, noise level is low  Benefits  Shows the need of the prospect fulfilled with the product  Our ceiling fan can be effectively used in the classroom where noise level should be low as needed by you

27.  Team selling method  Latest development in selling  Multi person sales team for multi person buying team  For buying committees and centres  See figure on next slide  Strategic issues  Team selling is expensive  Only used for high profit customers  Complex selling situations  Long term contracts  New customers  Should not use in repeat purchase  IBM/Xerox/HP/3M/Wipro/Siemens use this approach  Emphasis on building relation with the company not just only products

28. Relationship process b/w sales team and Buying centre

29.  Group presentation  Need analysis  Introduction  Convincing about company credibility  Specific benefits they are looking for  Well prepared for questions

30.  Consultative selling method  Also called as problem solving method  Software supplier uses this approach  Wipro and SAP  Requirements  In depth knowledge of customer’s company/industry/need and problems  Aware of key members of buying center  Prepare proposal early and then team selling approach  Build long term relationship using relationship selling techniques

31.  How to make an effective presentation  Planning  Use technology  Adapt presentation  Benefit Plan  Do not overload  Buyer’s language  Convincing-by 3rd party proofs

32.  Demonstrating the product  Planning and Conducting Demonstration  Rehearse the presentation  Contingency plan for power failure/product breakdown  1st- explain features and specification  2nd demonstration of product  Avoid jargons  Summaries important points  Types of Demonstration  Manufactures/industrial product demonstration at trade fair in delhi  Take your customer for visit in other customer’s facility for demonstration  Take product to customer’s premise for demonstration  Invite customer to your facility  Technical seminar

33. Methods with sales situations

34.  Handling Objections  Handling psychological/Hidden objections  Best way is to ask questions  Would you mind sharing your objection?  Why do you feel that way?  What seems to be your concern?  Never argue and hurt sentiments/ego

35.  Handling Logical Objections  Ask questions  Ask objections  Don’t interrupt  Buyer : “It seems price of your product is higher than your competitor”  Salesperson : “I accept your concern. Do you want to know why the price of my product is slightly higher than that of another supplier?”  Buyer: “Yes , that what I want to know”

36. Turn an objection into a benefit

37. Deny objections tactfully

38.  Third Party Certificate  Show customers testimony of other consumers  Compensation  Reliance were considering buying material handling equipment for the first time for their factories  Factory located in Gujarat  Suppler is in Karnataka  Reliance raised objection on warranty service/aftersales service  Senior marketing executive promised a engineer onsite for 1 year  Promised to open a service center near reliance plant

39.  Handling Price Objections  Typical objection/always comes  Go back to SPIN model(Implication question/need pay-off question)  Increase buyers perception of the problem/solution of the problem  If not convinced | Show lower cost version | Compare both of them  Compare price and value of competing alternatives  Other way is to break the price into smaller units of value

40.  Handling Product/Service Objections  Demonstration of product  Testimonials  Trial use  Independent tests  Case histories  Expert opinion

41.  Trial Close and Closing the sale  Before closing a sale, perform trail close

42. Steps to be followed by a salesperson

43.  Trail close  Examines the product  Asks another person’s opinion  Asks questions  Becomes friendly

44.  Closing Techniques  Alternative-choice close  Minor points close  Assumptive close  Summary of benefits close  T-account or balance sheet close  Special offer close  Probability close  Negotiation close

52.  Follow up  Check customer order  Plan follow-up visit at the time of delivery  Account penetration  Relationship marketing  Negotiation skills  When to negotiate  Preparing for negotiation with customers  Planning  Building relationship  Purpose  Styles of negotiation

63. Style of Negotiation  I win, you lose  Both of us win  You win, I lose  Both of us lose

64.  Success factors in selling  Communication skills  Nonverbal communication  Eye contact  Posture  Gestures  Facial expressions  Overall grooming  Verbal communication  Listening skills  Characters of an effective salesperson

75. Character of an effective sales person  Burning desire  Cooperativeness  Technology savvy  Empathy  Attitude  Discipline

Sales management 5

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Sales management 5