part 1 understanding the sales environment understanding the sales environment chapter 1:selling...
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PART 1PART 1Understanding theSales EnvironmentUnderstanding theSales Environment
CHAPTER 1: SELLING ASAP
CHAPTER 2: THE CHANGING WORLD OF SALES
CHAPTER 3: SELLING ETHICALLY
CHAPTER 4: BUILDING CUSTOMER LIFETIME VALUE
“I studied the lives of great men and famous women, and I found that the men and women
who got to the top were those who did the jobs they had in hand, with everything they
had of energy and enthusiasm and hard work.”
“I studied the lives of great men and famous women, and I found that the men and women
who got to the top were those who did the jobs they had in hand, with everything they
had of energy and enthusiasm and hard work.”
Harry S. TrumanHarry S. Truman
Selling ASAPSelling ASAPSelling is being viewed today as an Art and a Science, with an emphasis on practicing
Agility to enhance Performance
Selling is being viewed today as an Art and a Science, with an emphasis on practicing
Agility to enhance Performance
Art and ScienceArt and Science
Selling involves the salesperson’s unique style (art) of applying a systematic process (science) to understanding customers’ needs and wants and matching the benefits of the salesperson’s
product or service to those desires
Selling involves the salesperson’s unique style (art) of applying a systematic process (science) to understanding customers’ needs and wants and matching the benefits of the salesperson’s
product or service to those desires
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1AgilityAgility
An agile salesperson is:
One who is quick to see opportunities
Clever in shortening sales cycles
Able to meet customers’ needs faster
Capable of creating flexible and customer-focused values
Quick at learning and unlearning
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1PerformancePerformance
Salespeople must perform
Sales performance is measured in a multitude of ways
Selling requires a continuous emphasis on earning and maintaining long-term customer satisfaction…not just making quota
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1What is Professional Selling?What is Professional Selling?
Professional selling is the interpersonal communication process in which a seller uncovers and satisfies the needs and wants of a prospect to the mutual, long-term benefit of both parties
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1Non-manipulative SellingNon-manipulative Selling
Today’s skillful salespeople practice non-manipulative selling
Only after salespeople and customers reach mutual agreement about value does a sale occur
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1Building RelationshipsBuilding Relationships
Satisfied customers repeat their purchases because they are satisfied with the value of the relationship
Taking care of existing customers reduces sales cycle time and increases efficiency
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Thriving in a HighlyCompetitive Selling Environment
Thriving in a HighlyCompetitive Selling Environment
Salespeople must do their homework before meeting with prospects
Study the market
Study the prospects’ needs
Put the customer first
Engage in continuous learning and professional development
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1Understanding the CustomerUnderstanding the Customer
To motivate the prospect to buy a product or service salespeople must:
Understand how their prospect’s mind works
Be able to uncover the prospect’s hidden needs or wants
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1The Power of Influence The Power of Influence
The power of influence rests in the skillful salesperson’s ability to:
Provide continuous value to customers
Engage in long-term relationships with customers
Adapt to changing needs and preferences of customers
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1Apply What You LearnApply What You Learn
Pay close attention to the way people interact with each other
Go shopping
Pay particular attention to the many ways salespeople attempt to persuade you to buy
Talk to others and listen to their opinions about selling
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1Components of ASAPComponents of ASAP
Understanding the Sales Environment
Implementing the Sales Process
Mastering Sales Agility
Figure 1.1Timely and Timeless Components of Selling ASAP
Figure 1.1Timely and Timeless Components of Selling ASAP
PreparationPreparation
AttentionAttention
ExaminationExamination
PrescriptionPrescription
Conviction & MotivationConviction & Motivation
Completion & PartneringCompletion & Partnering
Understanding Why Buyers BuyUnderstanding Why Buyers Buy
Selling to Major AccountsSelling to Major Accounts
PART IIImplementing the Sales Process ASAP
PART IIImplementing the Sales Process ASAP
PART IIIMastering Sales Agility ASAP
PART IIIMastering Sales Agility ASAP
ManagingYourself & Your Time
ManagingYourself & Your Time
Selling EthicallySelling Ethically
Building Lifetime ValueBuilding Lifetime Value
The Changing World of SalesThe Changing World of Sales
PART IUnderstanding the Environment ASAP
PART IUnderstanding the Environment ASAP
Figure 1.2Taking a Lifetime View of Customers
Figure 1.2Taking a Lifetime View of Customers
Customer
• Age• Gender• Buying Styles• Buying Team• Segment
Customer
• Age• Gender• Buying Styles• Buying Team• Segment
ProductHoldingsProductHoldings
ContactsContacts
Product UseProduct Use
EventsEvents
Adapted from: Puckey, David (2000), “Modeling Customer Relationships,” Sequent Computer Systems Ltd. Sequent House, Weybridge
Business Park, Addlestone Road, Weybridge, KT15, 2UF
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1ThoughtwareThoughtware
Thoughtware represents the thinking process salespeople use as they continuously learn about customersCustomers are often grouped by type of relationship Advantages
• Avoidance of unneeded duplication of effort• Knowledge of loyalty patterns • Identification of cross-sell and up-sell opportunities• Identification of significant events in the life of the
customer
Figure 1.3Where Selling Fits in the Organization
Figure 1.3Where Selling Fits in the Organization
ManpowerManpower MoneyMoney MaterialsMaterials
Personnel Finance Manufacturing
MarketingMarketing
SalesSales
All OrganizationsPerform Selling Activities
All OrganizationsPerform Selling Activities
“Nothing happens in the economy until someone sells something to
someone else.”
“Nothing happens in the economy until someone sells something to
someone else.”
Arthur H. “Red” Motley
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1Steps of the Sales ProcessSteps of the Sales Process
Preparation
Attention
Examination
Prescription
Conviction & Motivation
Completion and Partnering
Figure 1.4A Customer-FocusedSelling Framework
Figure 1.4A Customer-FocusedSelling Framework
Customer Behavior
Customer Behavior
SalespersonBehavior
SalespersonBehavior
CollaborationCollaboration
InitialInquiryInitial
InquiryTime to
RespondTime to
RespondSales Call
Sales Call Decision?Decision? ThinkingThinking Re-InitiateRe-Initiate
Preparation Preparation AttentionAttention ExaminationExamination PrescriptionPrescription ConvictionConviction CompletionCompletion PartneringPartnering
•Promotion•Web Site•Personal Visits
•Promotion•Web Site•Personal Visits
•Service•Salesperson•Sales Organization
•Service•Salesperson•Sales Organization
• Promotion• Web Site• Engineering• Finance• Accounting
• Promotion• Web Site• Engineering• Finance• Accounting
MotivationMotivation
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Why Become aProfessional Salesperson?
Why Become aProfessional Salesperson?
Opportunity
Job Satisfaction
“Over 70% of new marketing graduates start their careers in sales.” Almost 50% of finance majors start in some type of sales career, and a growing number of other business majors
(e.g., accounting, management, management information systems) are moving towards
beginning their careers in sales.
“Over 70% of new marketing graduates start their careers in sales.” Almost 50% of finance majors start in some type of sales career, and a growing number of other business majors
(e.g., accounting, management, management information systems) are moving towards
beginning their careers in sales.
Dan Weilbaker (2001)Dan Weilbaker (2001)
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1Rewards of SellingRewards of Selling
Intrinsic rewards
Include the good feeling one gets from helping a customer solve a problem
Extrinsic rewards
Include pay and promotional opportunities
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1Route to ManagementRoute to Management
Selling is an excellent route to management
Starting in sales can lead to many other career advancements
Zone Business Mgr.• Financial & HR
responsibility
Zone Business Mgr.• Financial & HR
responsibility
Category Mgr.
• Customer category strategies• Data-base analysis
Category Mgr.
• Customer category strategies• Data-base analysis
Category AnalystCategory Analyst
Sales AssociateSales Associate
Human ResourcesHuman ResourcesDirector of SalesDirector of Sales FinanceFinance OperationsOperations
Key Account Mgr.(5-8 per Area)
• HQ Account Ownership
Key Account Mgr.(5-8 per Area)
• HQ Account Ownership
Regional VPRegional VP
PresidentPresident
Frito-LayNational HQ Sales
Frito-LayNational HQ Sales
District Sales Leader(8-10 per zone)
• People Leadership- 15 salespersons
• Account relationships
District Sales Leader(8-10 per zone)
• People Leadership- 15 salespersons
• Account relationships
Zone Sales Leader(4-8) per Area)
• 125 + employees
Zone Sales Leader(4-8) per Area)
• 125 + employees
Figure 1.6 - Frito Lay Career TrackFigure 1.6 - Frito Lay Career Track
Figure 1.7Sales Opportunities
in Large Organizations
Figure 1.7Sales Opportunities
in Large Organizations
PresidentPresident
Vice Presidentof Marketing
Vice Presidentof Marketing
Vice Presidentof Sales
Vice Presidentof Sales
NationalSales Manager
NationalSales Manager
DivisionSales Manager
DivisionSales Manager
RegionalSales Manager
RegionalSales Manager
DistrictSales Manager
DistrictSales Manager
Sales RepresentativeSales Representative
Sales TraineeSales Trainee
Or here…Or here…
Or you mightend up here…Or you mightend up here…
You may choose to stay here…
You may choose to stay here…
When you enter the workforce here…
When you enter the workforce here…
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1The Face of SellingThe Face of Selling
Today’s sales force is made up of people of both genders and various ethnic origins
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1Inside and Outside SalesInside and Outside Sales
At a broad level, professional selling can be divided into two types: Inside sales
• Telemarketing
• Retail sales
Outside sales• Prospecting—finding potential customers/clients
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1B2B and B2C B2B and B2C
Business-to-Business (B2B) Selling
The salesperson represents a company and sells to other companies
Business-to-Consumer (B2C) Selling
The salesperson sells directly to the consumer
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Types of Selling:A Traditional Look
Types of Selling:A Traditional Look
Responsive selling
Creative selling
Needs-based selling
Consultative-partner selling
Problem-solution selling
Customer-centered selling
Value-based selling
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1Success in SalesSuccess in Sales
Successful salespeople possess the following:
Motivation to succeed
Empathy
Ego-drive
Service motivation
Conscientiousness
Ego-strength
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Sales Productivity:A Measure of Success
Sales Productivity:A Measure of Success
Sales productivity is the ratio of sales revenues to what a salesperson inputs into making those sales
How salespeople use their time is critical to sales productivity success
The Essence of Selling ASAP The Essence of Selling ASAP
The right knowledge used the right way to improve the salesperson’s ability to do the right things for customers more expeditiously
The right knowledge used the right way to improve the salesperson’s ability to do the right things for customers more expeditiously
Selling activities
41%
Service-related activities
15%
Non-selling activities
44%
Approximately 50% of time spent on account-specific sales and service focuses on current account development
Approximately 50% of time spent on account-specific sales and service focuses on current account development
20 % = new accounts 30 % = account maintenance
• Administrative tasks• Meetings• Travel time
• Face-to-face selling• Phone/other selling
Source: Adapted from information in the article: “Increase Your Sales without Adding Personnel” by Mike Rose, Director of Development, SalesLobby.com, Sales Compensation Consultant, Online Magazine, The Alexander Group, Inc., July 2000. http://www.saleslobby.com/ OnlineMagazine/0700/salescomp_MRose.asp
Figure 1.8How Salespeople Spend Their Time
Figure 1.8How Salespeople Spend Their Time
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CRMCustomer Relationship Management
CRMCustomer Relationship Management
CRM is a strategy and process that utilizes technology
To identify, attract, and retain customers
To leverage the sales organization’s relationships with its customers
The agile salesperson uses CRM technology to assist him in managing customer interactions and transactions
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Technology:Tools for the Salesperson
Technology:Tools for the Salesperson
Central role
Store and share information
Communicate
Collaborate
Transact business
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1The Customer-Focused SalespersonThe Customer-Focused Salesperson
Willing to learn
Manages what they learn
Realizes improved results
Achieves customer loyalty
BusinessPerspective
Finding/Obtaining/Keeping Customers
Efficiency
Competition
Communication
Why CRM Is ImportantTo Salespeople
Why CRM Is ImportantTo Salespeople
Figure 1.9The Customer-Driven Selling Model
Figure 1.9The Customer-Driven Selling Model
ResultsResults
Increased Customer Loyalty• Higher customer retention rates• Lower customer defections• Less need to find new customers
Improved Dialogue with Customers• Fewer customer complaints• Improved complaint resolution• Increased referrals
Improved Customer Lifetime Value• Up-selling and cross-selling with existing
customers yields more sales• Customer relationships become solidified as
value is improved• Customers spend a larger share of their
purchase dollar with one sales organization
CustomersDrive Markets
Core Value
• Optimize the salesperson/customer fit
KnowledgeManagement
Core Value
• A commitment to on-going learning
Customer RelationshipManagement (CRM)
Core Value
• A way to obtain, store, analyze, share and use knowledge