overview of selling
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Overview of Selling. Personal Selling – Defined. An important part of marketing that relies heavily on interpersonal interactions between buyers and sellers to initiate, develop, and enhance customer relationships. Trust-Based Relationship Selling. - PowerPoint PPT PresentationTRANSCRIPT
1Overview of
Selling
1Personal Selling – Defined
An important part of marketing that relies heavily on interpersonal interactions between buyers and sellers to
initiate, develop, and enhance customer relationships.
1Trust-Based Relationship Selling
Requires that salespeople earn customer trust and that their selling strategy meets customer needs and contributes to the creation, communication, and delivery of customer value.
1Customer Value
The customer’s perception of what they get for what they have to give up.
1Importance of Sales Dialogue
• Allows for more thorough qualifying.• Demonstrates sincere interest in the prospective
customer.• Helps Determine prospective customer’s unique
needs.• Ensures meaningful
presentation of value-added solutions.
• Promotes opencommunication andsatisfaction feedback.
Sales Dialogue: business conversation between buyers& sellers thatoccur as salespeople attemptto initiate, develop, & enhance customer relationships.
1Transaction-Focused Selling
vs. Trust-Based Relationship Selling
1Transaction-Focused Selling
vs. Trust-Based Relationship Selling
1
IndustrialRevolution
Post-IndustrialRevolution
War andDepression
ModernEra
1800s 1900s 2000s
Evolution of Personal Selling
Selling function became more structured
Peddlers selling door to door . . . served as
intermediaries
Business organizations employed salespeople
Selling function becoming more
professional
1Evolution of Personal Selling
(The past several decades)
Canned Sales Presentation: sales presentations that include scripted sales calls, memorized presentations, and automated presentations.
Sales Professionalism: a customer-oriented approach that uses truthful, non-manipulative tactics to satisfy the long-term needs of both the customer and the selling firm.
From reliance on
To greater focus on
1Continued Evolutionof Personal Selling
1Contributions of Personal Selling:
Salespeople and Society
• Salespeople help stimulate the economy.
• Salespeople help with the diffusion of innovation.
1Contributions of Personal Selling:
Salespeople and the Employing Firm
• Salespeople generate revenue.• Salespeople provide market research
and customer feedback.• Salespeople become future leaders in
the organization.
1Contributions of Personal Selling:
Salespeople and the Customer
• Salespeople provide solutions to problems.• Salespeople provide expertise and serve as
information resources.• Salespeople serve as advocates for the customer
when dealing with the selling organization.
1Ethical Dilemma
1Alternative
Personal Selling Approaches
• Stimulus Response Selling• Mental States Selling• Need Satisfaction Selling• Problem Solving Selling• Consultative Selling
Adaptive Selling: the ability of a salesperson to alter his/her sales messages and behaviors during a sales presentation or as they encounter different sales situations and different customers.
1Stimulus Response Selling
Simple indesign; assumes conditionedresponse improves likelihood of success; a risky and unreliable strategy.
1Mental States Selling
Assumes buyercan be led through mental states; promotes one-way communication; a risky and unreliable strategy.
1Ethical Dilemma
1Need Satisfaction Selling
Interact with buyer to determine existing needs; present solutions to needs; solutions limited to seller’s products.
1Problem Solving Selling
Interact with buyer to determine existing and potential needs; present multiple solutions not limited to seller’s products.
1Consultative Selling
The process of helping customers reach their
strategic goals by using the products,
services, and expertise of the
selling organization.
StrategicOrchestrator
Business Consultant
1The Sales Process - Overview
1Role Play
1
1Sales
Management and Sales 2.0
1Sales Management Process
Defining the Strategic Role of the Selling
Function
Developing the
Salesforce
Directing the Salesforce
Determining Salesforce
Effectiveness and
Performance
1Sales Management Process
• Defining the Strategic Role of the Sales Function– Salesforce structure– Sales strategies
• Developing the Salesforce– Recruiting and selecting sales talent– Establishing training strategies/programs
• Directing the Salesforce– Setting salesforce goals and objectives– Implementing incentive programs– Overseeing and coaching salesforce
• Determining Salesforce Effectiveness and Performance– Establishing and administering
evaluation measures & systems– Providing feedback for future
development
1Sales Management Positions (Example)
Vice President of Sales
Regional Sales Manager
Field Sales Manager
Field Sales Manager
Regional Sales Manager
Field Sales Manager
Field Sales Manager
1Sales Management Best Practices
• Create a customer-driven culture throughout the sales organization and firm.
• Recruit and hire the best sales talent.• Train and coach the right skill set.• Focus on key strategic issues
by segmenting accounts in meaningful ways andproviding differentiatedoffering to find, win,and retain customers.
1Sales Management Best Practices
• Implement formal sales and relationship-building processes.
• Use information technology effectively to learn about customers.
• Integrate sales with other business functions, especially marketing.
1Developing and Implementing Effective
Sales Strategies
Account Targeting Strategy
Classification of accounts into
categories
Relationship Strategy
Type of relationship
sought for each category
Selling Strategy
Develop selling approach for each type or relationship
1Developing and Implementing Effective
Sales Strategies
Selling Strategy – Involves the planning of sales messages and interactions with customers. Selling strategy can be defined and executed at three levels.
Groups of Customers
Individual Customer
Customer Encounters
Customer Encounters
Individual Customer
Customer Encounters
Customer Encounters
1 2 3
1Selling and Relationship Strategies
1Sales Channel Strategy
Determination of how the organization will reach its customers when executing the sales effort. Options include a company salesforce (individual or teams), industrial distributors, independentrepresentatives, internet,telemarketing, and so forth.
1Sales Structure Issues
• The degree to which each salesperson could perform all the selling tasks.
Specialization
• The degree to which authority and responsibility are placed at higher management levels.
Centralization
• The number of individuals who report to each sales manager
Span of Control
1Staff vs. Line Positions
1Sales Organization Alternatives
1Recruiting and Selecting Sales Talent
1Recruitment and Selection Process
– Planning –
1Recruitment and Selection Process
– Locating –
• Career/Job Fairs• College Career Centers• On-line Career Sites
(e.g., Monster.com and Careerbuilder.com)
• Internal (e.g., employee referral)
• Employment Agencies
1Recruitment and Selection Process
– Evaluating –
• Resume Screening• Interviews• Assessments– Role Plays– Written
Questionnaires– Ride-Alongs
• Background Checks
1Sales Training Process
1Ethical Dilemma
1Directing the Salesforce
1Directing the Salesforce
1Directing the Salesforce
1Directing the Salesforce
1The Role of Power
• Don’t be reluctant to use any form of power.
• Be careful not to overuse the power of position or punishment.
• Avoid rewarding all desired job outcomes or behaviors.
• Enhance power through learning and establishing a good working relationship with subordinates.
Legitimate
Coercive
Reward
Expert
Referent
Sources Advice
1Communication and Coaching
Coaching: Focus on continual development of salespeople through provision of feedback and serving as a role model.
• Encourage open communication.• Seek feedback.• Use persuasion and promises.• Establish a team approach.• Encourage self-evaluation and correction.• Ensure salespeople diagnose success as
well as failures.• Recognize salespeople
are individuals.• Follow-up on coaching
sessions.• Serve as a role model.
1Ethical Dilemma
1Determining Salesforce
Effectiveness and Performance
Sales organization structure, strategies, deployment, management, and uncontrollable environmental influences also impact sales organization effectiveness.
1Evaluating Sales
Organization Effectiveness
1Evaluating Sales
Organization Effectiveness
1Evaluating Sales
Organization Effectiveness
1Evaluating Salesperson Performance
1Criteria for Evaluating
Salesperson Performance
Behavior-BasedEvaluation of the activities salespeople perform in the generation of sales and in completing non-selling responsibilities (e.g., training, product demonstrations, sales calls, etc.).
Outcome-BasedEvaluation of the actual sales results salespeople achieve (e.g., sales quota, market share gain, etc.).
Evaluation Methods Should Possess: • Reliability• Validity• Standardization• Practicality• Comparability• Discriminability• Usefulness
1Sales 2.0
The use of customer-driven processes enabled by the latest Web technology to co-create value with customers.
CRMSocial NetworkingCloud Computing
1Sales 2.0
1Role Play