3. 3
Selling
Make a sale
In most companies sales personnel are the single most important link w/ the cust.
Front-line role
Increasing emphasis on professionalism
Required to adapt and change
Type of selling/ Selling function:
Order-takers (already committed cust.): Inside OTs (transactional), Delivery Sp., Outside OTs
Order creators: Missionary Sp. (do not close the sale, medical/architect rep.)
Order-getters (persuade Cust. to make a direct purchase) :
Front-line Sp.: New B. Sp. (win new prospect), Organizational Sp. (maintain close long-term
relationships), Consumer Sp. (more one-off)
Sales support Sp.: Technical support Sp. (to front-line Sp.), Merchandizers (retail & wholesale)
Salespeople key quality
Empathy & an interest in people: identifying needs & understanding customer feelings
Ability to communicate
Determination
Self-discipline and resilience
B2B – B2C
4. 4
Sales Management
Exercise
Planning: sales forecasting, budgeting
Organizing
Controlling
Adapt and change
Play strategic role:
Make key input into formulation cny plans
Less on sales volume, more on profits
Must be aware of developments in HR management
Ensure that sales function makes the most effective contribution to the achievement
of cny objectives and goals.
Determination of SF objectives and goals,
Forecasting, Budgeting
SF organization, size, territory design and planning,
SF selection, recruitment, training, motivation, evaluation, control
Evolution of modern B. practice: production, sales, marketing orientation
5. 5
Implementing the MK concept
Segmentation and Targeting
Clearer identification of mkt opportunities
Designing products more finely tuned to the needs
Focusing MK and SALES efforts on those segments w/ the greatest potential
Segmentation bases:
Consumer products and mkts:
age, sex, income, social class, geographical location type of residence using ACORN (A
Classification of Residential Neighborhoods), personality, benefits sought. usage rate, e.g.
heavy users versus light users
Industrial products and markets:
end-use market, type of industry, product application, benefits sought, company size,
geographical location, usage rate.
6. 6
Marketing Programme/ Mix
Product:
Features, packaging, quality, range
PLC IGSMD
Diffusion of Innovation Theory
Innovators 2.5% Early adopters 13-14% Early majority 34% Late M. 34% Laggards 16%
Diffusion mediated by...
Risk, Relative advantage, Ease of Trial/ Divisibility, Communicability, Compatibility, Relative
simplicity
Price: price levels, credit terms, price changes, discounts.
How it affect selling and sales management
Company objectives (Return on capital, early cash recovery, payback period
MK objectives: mkt penetration, skimming
Demand consideration, what the market will bear. SF can play a key role in the provision of
pricing information
Cost (BEP, Cost-plus or Mark-up), Competition, Customer oriented methods
Place/ Distribution: inventory, channels of distribution, number of intermediaries.
Direct, Intermediaries – Intensive, Selective, Exclusive
Level of Cust. Sce: delivery & transporation methods – increase inventory hence costs –
trade-offs
Promotion: Advertising, Personal selling, Sales promotion, PR
7. 7
Sales and MK relationship
Marketing strategy affect personal selling through:
Creation of Differential advantage
Strategic objectives: Build, Hold, Harvest, Divest
Selling obj. and strategies are derived from MK strategy decisions
and should be consistent w/ other elements of the MK mix
Selling objectives
Sales volume, Market share, Profitability, Service levels, SF costs
SF strategy (define how obj. will be achieved)
Call rates, calls % existing vs. new accounts, discount policy, improving cust./mkt
feedback and cust. Relationships,
% of resources targeted at - new vs. existing product
- selling vs. after-sales service
- field selling vs. telemarketing
- different types of cust. (high/low potential)
8. 8
Marketing Plan Contents
Sales Planning process:
Setting objectives, Determining operations necessary to meet objectives, Organizing for action,
Implementing, Measuring results against standards, Revaluating and controlling
MOST: Mission, Objectives (where), Strategy (how), Tactics (details)
Situational Analysis mkt analysis or Mk audit
Market Situation S (analysis of cust. needs and trends)
Competitive Situation S
Macro-environmental Situation - PEST, STEEPLE S
Past Product Performance
Mkt and sales potential, Sales Forecast S and Key Assumptions
Key Issues: SWOT
Objectives SMART S (setting sales objectives)
Financial (profit, ROI)
Marketing (sales volume, market share, targeting, pricing, cust. retention)
Marketing Strategies (one per objectives, competitors’ counter-strategies) S (Sales Mgr consulted and input)
Marketing Action Plan Implementation OR Integrated mkt program/mix S (Sales Mgr consulted and input)
Target, Who, What, When, How Much… Communicated to everyone involved
Projected Profit & Loss Budget – Allocating resources S
Control - Contingency Plans S
Measurement, corrections, modifications
If threats/opportunities materialize, if situation/assumptions change
9. 9
Mk plan influences sales
Inside-out planning, financially driven
Outside-in planning, customer-oriented
Promotional mix:
Advertising, Personal selling, Promotion, PR , Direct mk, Interactive/Internet mk
Where to place emphasis influenced by
Type of make
Stage in the buying process (hierarchy of effects model)
Unawareness, Awareness, Comprehension Ad.& PR
Conviction, Purchase Pers. Selling
Push vs. Pull strategies, depending of channel of distribution
Stage in the PLC
Advertising-Selling relationship
Reputation, awareness, new products, leads
Consumer goods, branding/ brand image crucial, Advertising most effective promotional tool
Brand or supplier loyalty: conscious decision – superiority perception
Learning theory: tendency to repeat experiences that give us pleasure and to avoid those that do not
Sales strategies to Tactics
The SMgr must decide the specific actions required to achieve sales goals, ie. Tactics
10. 10
Consumers
Who buys? Buying centre:
Initiator
Influencer
Decider
Buyer
User
How to buy?
Need id./ Pb. Awareness
Info gathering
Evaluation of alternative
Evaluative criteria
Beliefs (imply knowledge)
Attitudes (imply liking or disliking)
Intentions
Selection
Post-purchase evaluation (cognitive dissonance)
Choice criteria?
Economic: perf., reliability, price
Social
Personal
11. 11
Factors Affecting Consumers
Buying situation
Extensive pb.-solving New purchase High involvement
Limited pb.-solving Modified rebuy Limited involvement
Automatic response Straight rebuy Low involvement
Personal influences
Personality: Dominant, Submissive, Warm, Hostile
D-H, SH, S-W, D-W Modify selling accordingly
Motivation Needs to satisfy
Perception Selective exposure/ perception/ retention
Learning Changes as result of experiences
Lifestyle/ psychographics: beliefs, activities, values, demographics
Young sophisticates
Home-centered
Traditional Working class
Middle-aged sophisticates
Social influences
Social class ACORN
Reference groups
Coronation Street housewives
Self-confident
Homely
Penny-pinchers
Culture
Family
12. 12
Organisational Buyer
Content WHAT or CHOICE CRITERIA
Functional (Economic)
Psychological (Emotional)
Avoid
Working in comfort zone
Spending too much time with naysayers
Organisational buyer
Fewer customers
Concentrated markets
Relationships
More rational
Product specifications
Reciprocal buying
More risky
More complex
Negotiation important
Structure: WHO – DMU
Initiators
Users
Deciders
Influencers
Buyers
Gatekeepers
Decision-making process
1. Problem/ Need recognition
2. Determination characteristics, spec, qty
3. Search for, qualification potential suppliers
4. Proposals
5. Selection
6. Order Routine
7. Feedback and evaluation
Production type
Job/ unit/ project
Batch
Flow/ mass/ line
Process/ continuous
13. 13
Factors Affecting Org. Buyers
Factors Affecting Org. Buyers
Buy class
Straight rebuy
Modified rebuy
New purchase
Product type
Importance of purchase
Development in Purchasing Practice
JIT
Centralized Purchasing
Reverse MK
Leasing financial vs. operating lease
Relationship Management
Interaction
Strategic Partners
14. 14
Sales Technique
Responsibility of a salesperson
Primary to conclude a sales successfully
Secondary:
Prospecting
Records, feedback
Self-management
Handling complaints
Providing service
Implementing Sales & MK strategies: eg. Diversion
Preparation
Sales negotiations vs. Pure selling
Relate product features to consumer benefits
Competitors products/benefits knowledge
Sales presentation planning
Sales objectives: w. the Sp. Wants the Cust. to do
Understanding buyer behavior
Sales negotiations
Balance of power
# options available to ea. party
Knowledge is power
Need recognition & satisfaction
Pressures
Negotiation objectives: BATNA, ‘WOULD LIKE’, ‘MUST HAVE’
Concession analysis (valued by the cust.)
Proposal analysis (objection anticipation)
15. 15
Personal Selling Skills
Personal selling process
1. Opening Cardinal sin: ‘Can I help you?’ ‘No thank you. I’m just looking’
2. Need & Pb. Recognition question-and-listen - open/closed question
3. Presentation & Demonstration
4. Objections
5. Negotiation
6. Closing
7. Follow-up call
Presentation & Demonstration
Chinese proverb ‘Tell me and I’ll forget, show me and I may remember, involve me and I’ll understand’
Relating Features & Benefits
Which means that
Which results in
Which enables you to
Reducing risk
Reference selling
Demonstration 1. brief features description/ ‘u’ benefits description 2. actual demo.
Guarantees (warranty, service…)
Trial orders
16. 16
Personal Selling Skills
Objections
Preparation
Techniques:
1. Listen and do not interrupt
2. Agree and counter
3. Straight denial
4. Question the objection
5. Forestall the objection
6. Trial close
7. Hidden objections – Is there anything …so far which you are unsure about? …on your mind? –
– What would it take to convince you? –
Negotiation
Start high but Be realistic
Concession for concession: ‘if…then’
Buyer’s negotiation techniques
Shotgun approach: unless you agree to cut…, we’ll look elsewhere
Sell cheap, the future looks bright
Noah’s ark: do better, competition is much lower
Closing
At highest interest, buying signals, trial close
1. Simply ask for the order
2. Summarize and ask
3. Concession close
4. Alternative close: red or blue, Tue. or Fri.
5. Objection close: if I can convince you…, will you buy it?
6. Action agreement: never display emotions – leave as quickly as possible
17. 17
KAM
Advantages
Close relationships
Improved communication and coordination
Better f/up sales/service
In-depth DMU penetration
Higher sales
Advancement opportunities for career Sp.
Lower costs thru joint agreement prod/delivery/forecast
Cooperation on R&D
Risks
Dependence, vulnerability of few customers
Pressure on Profit
Ever-increasing demand
Neglect smaller accounts
At odds w/ career aspiration
When
Small # of cust. = high proportion of sales
Differentiation potential
Complex buying behavior
Multifunction contacts
Cost savings
Danger of different Sp.
Tailoring products and services
Centralized cust.
Competition doing KAM
WHO
Best person
Support from top management
Relationship-building skills
KA relational development model
Per-KAM prospecting
Early-KAM build trust/performance/communication
Mid-KAM
Partnership-KAM share sensitive information
Synergistic-KAM transparent costing systems
Uncoupling KAM anytime, transactions/interactions cease
GAM
Relationship building
Personal trust
Technical support
Resource support
Service levels
Risk reduction
KA information system
18. 18
KAM
KA planning system
Account audit
SWOT: Suppliers, Competitors, External
changes
Account plan
Objectives in terms of cust. responses
Strategies
Control progress/achievement/corrective actions
19. 19
Relationship Selling
From market-driven TQM to Customer care
From Transactional to Relational selling
2 business basics: MK (cust. Orientation/knowledge) and innovation
Relationship MK
Differentiate via actual and augmented product (holistic view: sales support, guarantees, after-sales care)
First priority, customer satisfaction (perceived quality)
From JIT to Relationship MK
Part-time marketer of non-marketing staff
BPB
Reverse MK
SCI: Looking at the Supply chain as a whole to find new opportunities to improve overall effectiveness
From RMK to Relationship selling
JIT based on open accounting
Serve cust. present and future needs (holistic needs)
Simultaneous engineering: Japanese subcontractors’ ability to participate in product design
20. 20
Relationship Selling
Tactics of relationship selling
Customers' needs focus
Trustworthy relationships
Internal MK concept
Determination, self-motivation, tenacity - overtaken by – acceptability, attention to detail, get along
w/ people
Sales visits longer
Less calls
Permanently at the cust.
Information gathering
MkIS: Market Intelligence + Market Research + Cny internal accounting syst. => Strategic MK plans
Reducing selling costs
More sales per cust.
Superior business forecasting
21. 21
Direct Marketing
DM attempts to acquire and retain cust. by contacting them w/o the use of an intermediary.
Objectives:
Purchase
Literature/catalogue request
Visit a location
Participation
Demonstration
Salesperson’s visit
Rise in DM fuelled by: Market fragmentation, Computer technology, List explosion,
Sophisticated Analytical techniques, Coordinated MK systems (integrated mk communications).
Database MK is defined as an interactive approach which uses individually addressable mk
media and channels (such as mail, phone, and the salesforce) to
Provide information to a target audience
Stimulate demand
Stay close to customers by keeping records
Actual & potential cust./ Transactional/ Promo/ Product/ Geodemographic (ACORN) info
Applications:
Direct Mail, Telemarketing, Loyalty mk, Campaign planning, Target mk, Distributor mgt syst., Mk evaluation
22. 22
Managing a DM Campaign
MK plan
Identifying and understanding the target audience
Consumer: ACORN – Business: organization/ individual type
Setting campaign objectives: financial – communication – marketing
generating sales, making a sale
Creative decisions
communication, target market analysis, brand benefits/weaknesses, offer dvpt , message communication, action plan
Media decisions
Direct mail: consumer lists, consumer lifestyle lists, directory, house list
who, what , why, where, when
Telemarketing: inbound, outbound
Direct response marketing: DRTV = teleshopping – 25mn product demo = infomercial
Catalogue marketing:
Campaign execution and evaluation
in-house or through a specialist DM agency
23. 23
Internet and IT applications
IT revolution: impact on salesforce productivity
Remote access email Word processing/ Spreadsheet
Time mgt software Database files Mobile phones
Desktop publishing Presentation software PPT Diary packages
CRM Internet Telemarketing software
SF software
MyYahoo or else: attract and hold users – B2C, B2B – improved efficiency, enhanced buyer-seller R and processes
E-COMMERCE: Internet keys: email and ecommerce
Publish/ Interact/ Transact/ Integrate (B2B extranet: e-network linking cnies to their trading partners)
EDI (e-data interchange) used for invoices
Barriers: locating websites, design, reluctance of new medium, security fears
NEW ERA: popularity, profitability
Back to REALITY: setting lasting R between cnies and cust.
Key IMPACTS: - Building Customer-centric Selling Arenas
- Focusing on the right cust.
- Creating quality in Communications
- Understanding buyer behavior patterns (1. Whether the b. builds a R, 2. Scope of goods)
4 competitive landscape: Opportunity spot, Opp. Store, Loyal links, Loyal chains
- Changing approach to brand management
- Pricing
- Creating interactive opportunities with cust.
- Building cust. R.
- Performance measurement
24. 24
CRM & IT applications
Cust.-Cny contact points:
SF, email, websites, phone, distributors, fax
QCi customer management model
CRM software: sharing information
Software: Territory mgt, journey planning, recruitment
and selecting, sales training (CBT), sales forecasting,
determining salesforce size, salesperson evaluation.
Retail and MK
SCM is the concept of product provision from suppliers’
production lines to retailers’ tills. The right products, in
the right quantities, at the right times.
EPOS and EFPTOS, Cust. Loyalty cards
mfrs do buy EPOS data from their cust.
Space mgt systems
DPP systems (Direct Product Productivity) low
essential generates in-store cust. Flow – modify its
packaging, trading terms, stocking, store position &
other variables
Category mgt: customized merchandizing (tailored pdt
assortments, space allocations, pricing, promotions)
EDI (Electronic Data Interchange) order/ invoice pdts
Analyzing
and
planning
The
proposition
Measuring
the effect
Processes
People and organizations
Information and Technology
Cust. Experience measurement
Competitors
CM activities
Targeting
Win-back
Pb. Mgt
Cust. Dvpt
Enquiry mgt
Getting to know
cust.
Welcoming
QCi customer management model
25. 25
Sales settings
Forces affecting selling and sales management
Behavioral forces
Rising cust. Expectations and being concerned w/ fulfilling of higher-order needs
More professionally minded org. buyers
Cust. avoidance of buyer-seller negotiation
Expanding power of major buyers
Globalization / Fragmentation
Technological forces
Sales force automation: laptop, EDI, videoconferencing, extranet
Virtual sales offices
Credit cards as charging platforms, used for databases
Electronic sales channels: internet, TV home shopping
Managerial forces to respond to the environmental changes, strategies and tactics to enhance sales effectiveness
Direct marketing: direct mail, telemarketing
Blending of sales and mk: intranet
Qualification of Sp. and sales managers
26. 26
Sales Settings
A sales channel is the route that goods take through the selling process from supplier to customer.
Selecting / Reappraising Sales Channels
Market
Channel costs
Profit potential
Channel structure pull strategy: advertising to create brand loyalty, pre-sell the product
PLC
Non-marketing factors amount of finance available
Characteristics of Sales Channels
Direct – Intensive – Selective – Exclusive
Industrial, Commercial, Public authority selling (= org. buyers)
Resale
Outlet category: Multiples (≥10, similar range of merchandize), Variety chains (≥5), Cooperative
societies, Department store, Independents, Mail order, Direct selling
Trade marketing focus: which product / sizes / packaging / prices / promotion retailer want
Franchising (VMS) – franchisor & franchisee – franchise
Mfrs to retailers (cars) – Mfrs to wholesalers (Pepsi, Coke) – Wholesalers to retailers (Spar) –
Sce firms to retailers (hotels, car rentals, fast foods…)
Agreement: expertise, promotion, central purchasing, standard of operations, training, royalty
27. 27
Sales settings
Services
Intangible, inseparable, variable (non-standard), perishable (inability to stock), no ownership
7Ps= 4Ps + People + Process + Physical evidence
Trust is essential
Sales promotion
Objectives: encourage repeat purchase, build loyalty, encourage visit,
build up retail stock level, widen/ increase distribution
Price reductions, vouchers or coupons, gifts, contests/ competitions, lotteries, cash bonuses
Techniques: consumer promo (pull), trade promo (push), salesforce/ personnel promo (2-6 months)
Promotion integrated in the marketing communications
Premium offers: Self-liquidating premiums, On-package gifts, Continuities, Coupons plans, Free samples
Exhibitions
Activities promoting the organization: trade show, events (concerts, races…), conferences
Objectives: define the market (segments) / potential purchase value / status of contact to aim at /
potential customers / new product / communication level
28. 28
Sales settings
PR
Public: community, employees, government, financial community, distributors, consumers, opinion leaders
Definition: PR consists of all forms of planned communication, outwards, and inwards, between an
organization and its publics for the purpose of achieving specific objectives concerning mutual
understanding
Corporate identity, Corporate PR
PR is not: free advertising, propaganda, publicity
Objectives: create a better environment for the organization and its activities
Attract sales inquiries
Reinforce cust. Loyalty
Attract investors/ merger partner/ smooth acquisition
Attract employees
Dissolve or block union problems
Integration: technician or policy-making (corporate strategic plans) role
Consultancies: in-house and/or external specialist
Minimize competitor advantage while catching up
Open a new market
Launch a new product
Reward key people with recognition
Bring about favorable legislation
29. 29
International / overseas selling
Balance of payment, the ≠ between export earnings and import expenditure
Trade surplus/ deficit, Invisibles= Services – Capital account, surplus, net capital inflow
EU: removing taxation differentials, frontier controls and other forms of restriction open market
Advantage in terms of selling: 1. How to reach the customers, 2. How can you sell into this market, 3.
What sales literature is necessary, 4. How should you advertise, 5. How will you provide after-sale service.
Each country will adopt a particular expertise
WTO, GATT: 1. Non-discrimination, 2. Consultation, 3. Tariff negotiation, 4. Trade liberalization
Overseas benefits: 1. Non-availability, 2. Competitive costs, 3. Differentiation
Culture is the distinctive way of life of a people that is not biologically transmitted, evolving and changing
over time.
Reward and punishment principle.
Abstract (values, attitudes, ideas and religion)
Material (level & type of technology, consumption patterns)
Achieve the balance ‘Think global, Act local’
Develop cultural skills: convey respect, cope w/ ambiguity and frustrations, show empathy, avoid judging
others, control self-reference use, humor to prevent frustration
Aesthetics, Religion, Education, Language, Social organization, Political Factors, Attitudes and values,
cultural change.
31. 31
Law and ethical issues
Contract: legally binding
An invitation to treat (negotiate) is not an offer, it is an invitation to shoppers to make an offer to buy
Terms and conditions: state the circumstances under which the buyer is prepared to purchase and the
seller is prepared to sell; define the limit of responsibility for both buyer and seller.
Terms of Trade: overseas – Define the aspects of delivery and costs per Incoterms
Bill of lading: is a receipt for the goods shipped, a transferable document of title to the goods allowing
the holder to claim his or her goods, and evidence of the terms of the contract of shipping.
Ex-words – FOB – FOR (Rail) – FOW (Wagon) – FAS – CIF – C&F – Free delivered (import license)
Business practices and legal controls
False description
(misleading statement, made-in, price)
Faulty goods
Inertia selling (unsolicited goods/ services)
Exclusion clauses (limit mfr liability)
Buying by credit
(disclose APR, cooling off period for doorstep sell)
Collusion between sellers
Consumer protection
By the law
Code of practice
(advertising, market research, direct selling)
Trade associations
Consumers’ associations
Salespeople Ethical issues
Bribery
Deception
Hard sell (high pressure sales tactics)
Reciprocal buying
32. 32
Effective SF Selection 1
Sales attraction
1. Working methods 2. Independence 3. Earning
International sales
Expatriates, Host-country nationals, Third-country nationals
Job description
Title, duties and responsibilities, direct supervisor, technical understanding degree, area, degree of control
Personnel specification
Physical requirement – Attainment – Aptitudes and qualities – Disposition – Interests – Personal
circumstances
Central dynamics of sales ability
Empathy – Ego drive – Ego strength – Self-motivation
Sources
Own staff – Agency – Schools – Competition – Other industries – Unemployed
33. 33
Effective SF Selection 2
Communication
Achieve impact: ad size, content, headline, major job attraction
Application Form
Personal – Education – Employment history – Other interest
Purpose: shortlisting, interview, post-interview
Interview
Type: Screening – Selection
Objectives: form a clear and valid impression of the strengths and weaknesses
of the candidates
Setting: relaxed, informal, low table
Conduct: Establish rapport, reduce anxiety, themselves, experiences, attitudes, behavior, expectation
Interview techniques: Playback - Rewards: ‘uh, uh’ ‘mmm, yes, I see’ eye/head behavior –
Silence – Probes – Summarizing – Neutral questions – Selling the job/ control the interview
Psychology tests
Multiple personal inventory test: based on the forced choice technique
Different test might be required for different situations
Role playing
Short-term relationship sales, one-off sales
34. 34
Motivation
Relationship between needs, drives and goals: ‘The basic process involves needs (deprivations) which set drives in
motion (deprivation w/ direction) to accomplish goals (anything which alleviates a need and reduces a drive)’.
Maslow’s Hierarchy of Needs
Physical (physiological, safety) – Social (belongingness/ love, Esteem/ status) – Self (self-actualization)
Satisfied need is not a motivator of behavior – Different Sp. will have different combination of needs
Herzberg’s dual-factor Theory
Hygiene: physical working conditions, security, salary, interpersonal relationships
Motivator: nature of work, achievement, recognition, responsibilities, interest value
Vroom’s Expectancy Theory
Effort Expectancy Performance Instrumentality Reward Valence Value of reward
SM spec and communicate these perf. Criteria, relate R. to criteria, attainable target perf.,
VET = a diagnostic model
Adam’s Equity Theory
Unfairness can arise when an individual’s effort or perf. exceeds the reward which s/he receives.
Likert’s Sales Management Theory
SMs provide a set of standard – Sales meeting ‘group method’ vs. Monopolist’
Churchill, Ford, Walker Model of SF Motivation
… Motivation Effort Performance Rewards Satisfaction …
Implication: convince Sp. harder and smarter work, reward worth the extra effort
35. 35
Motivation in practice
Importance of SM relationship
Motivating factors
Self-satisfaction of doing a good job, Achievement targets, Acknowledgement of effort,
Satisfy Cust. Needs
Financial incentives: Commission/ Bonus (fair, attainable)
Setting sales targets and quotas
Meeting between SM and Sp.
Regularly, to better understand the motivators/ demotivators, understand their values
and expectations
Discuss more: 1. Analyse job problems and try to find solutions together, 2.
Sales targets
Positive/ Negative stroking
Merit-based promotion (dual route)
Sales contest (consumer SFs)
Leadership is the process of influencing the behavior of people towards the
accomplishment of objectives.
1. Coercive (-) 2. Authoritative 3. Affiliate 4. Democratic 5. Pacesetting (-) 6. Coaching
36. 36
Training
Skills development
Unconsciously unable
Consciously unable
Consciously able
Unconsciously able
Training program components
Cny objectives, policies and organization
Products
Competitors
Selling procedures and techniques (M5)
Work organization and reporting
Methods
Lectures
Films
Role Playing
Case studies
In-the-field training
Evaluation of training
Training SMs
Sp. requires self-mgt, selling,
negociation skills
SM requires managerial,
administrative, leadership skills
37. 37
Organizing a Salesforce
Structure
Geographical full range
Product specialization overlap
Customer-oriented
1. Market-centered industry type
2. Account size KAM, 3 tier-systems (KA, Sp., telemarketing team), team selling
3. New or Existing account prospecting vs. current cust.
4. Functional specialization development vs. maintenance
Mixed organization
SF organization considerations:
Geographical size
Potential
Cust. expectations
Product line width
Current selling practices
Language
38. 38
Number of Salespeople
Workload method
# of Sp. = # of Cust. X Call frequency .
Average weekly call rate X # of working weeks per year
Establishing Sales territories
Workload = ni ti + n tk ni = # of calls to be made to cust. in category i
ti = average time per call for ea. category i
n = total call # to be made
tk = average traveling time to ea. call
Designing territories calls for a blend of sound analysis and plain common sense
Sales potential
Territory Revision
39. 39
Compensation
Objectives
1. Motivate by linking achievement to monetary reward
2. Attract and hold successful Sp. by providing a good standard of living,
rewarding outstanding performance, providing regularity in income
3. Selling costs fluctuation in line with sales revenue
4. Direct sales to specific company sales objectives
Type of Sp.
1. Creatures of habit
2. Satisfiers
3. Trade-offers
4. Goal-oriented
5. Money-oriented
Compensation plans
Fixed salary
Commission only
Salary + commission
40. 40
SF Forecasting
Planning: allocate company resources so as to achieve sales forecasts/ anticipated sales
Market forecasting
Forecast: Short-Medium-Long term
Levels: international, national, industry, company, product
seasonally, geographically, salesperson
Qualitative
1. Consumer/ User Survey method (market research method)
2. Panels of Executive Opinions (jury method, top-down method) then cny determines its share of ind. forecast)
3. Salesforce Composite (grass-roots approach, bottom-up) ea. Sp. Aggregated – Detecting ≠ in figures Sp+SMgr reconcile)
4. Delphi Method members do not meet
5. Bayesian Decision Theory subj. & obj. techniques
6. Product Testing and Test Marketing
41. 41
Quantitative forecasting techniques
Quantitative
Time series techniques: time is the only variable too much on past events
Causal techniques: independent variable – forecasted dependent variable relationship
Time Series Techniques
Moving averages averaging and smoothing time series data, unable to predict up/downturn
Exponential smoothing apportions ≠ weightings
Time series analysis seasonality, fashion
Z charts Moving annual total, Cumulative sales, Monthly sales
Causal Techniques
Leading indicators (correlation analysis) Define & establish linear regression relationship between some
measurable phenomenon and whatever is to be forecasted
Simulation iteration, trial and error
Diffusion models new products, diffusion of innovation theory
Computer software dates very quickly
42. 42
Budgeting
Sales department budget is the b. for running the mk function for the b. period ahead
Selling expense b.
Advertising b. (above/under-the-line promotion)
1. Last year’s sales %
2. Competitor parity
3. Left over
4. Objective and task
5. ROI
6. Incremental
Administrative b.
Sales budget total revenue, statement of projected sales, other b. represent expenditures
Budget allocation
individual Sp. sales quota/ target, in order to achieve the forecasted sales
consumer products: disposable incomes and number of people in the target
industry: number and size of potential customers, workload
43. 43
SF Evaluation
SF evaluation process
Set SF objectives
Financial (sales revenues, profit & expenses)
Market oriented (market share)
Customer-based (cust. satisfaction, service levels)
Determine sales strategy
Set SF objectives: cny, territories, products, Sp., accounts
Measure results and compare with standard
Action taken to improve performance
Purpose of evaluation
Attainment and setting of objectives
Motivation
Training
Compensation
44. 44
SF Evaluation
Setting standards of performance
Gathering information Sp., SMgt field visits, Cust. research, cny records
Quantitative measures of performance
Input measures: # calls, calls/ potential accounts, calls / active account, # quotes, # calls on prospects
Output measures: Sales revenue, profits, % gross profit margin, sales/ potential / per active account,
sales revenue as a % of sales potential, # orders, sales to new cust., # new cust.
Hybrid ratios: Strike rate (# orders ÷ # quotes), Sales revenue/ call ratio, Profit / call ratio,
Ā order value (sales revenue ÷ # orders), Ā profit contribution / order (profits ÷ # orders)
Expense analysis: ex/ sales revenue, ex/ profit, ex/ call, ex/ per square mile of territory
Compensation analysis: total salary/ sales revenue, total salary/ profits
Qualitative measures of performance field visits
Sales skills
Cust. relationships
Self-organization
Product knowledge
Cooperation and attitudes
45. 45
SF Evaluation
Winning or Losing Major Orders
Are we going to win or lose this order?
SMgr asks: who, when, where, why, how
Appraisal interviewing
Identify a Sp. strengths and weaknesses
Give praise
Sp. to write down 5-10 expectations to achieve during the next year
Quaterly meeting to review expectation (met or shifted), give or withdraw recognition
and acceptance