sales management salm/sam101 - amazon web …imm-gsm.s3.amazonaws.com/2014/docs/semester2/learner...
TRANSCRIPT
Sales
Management
SALM/SAM101
Revised: November 2013
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 2 of 168
TABLE OF CONTENTS
SECTION A
1. Welcome to Sales Management 4
2. A word from Alumni 4
3. Relationship with other modules 5
4. How to use this guide 6
5. Prescribed Learning Material 7
6. Additional Support 7
7. Assessment 7
8. National Qualification Framework specifications 9
9. Critical cross-field outcomes 9
10. Curriculum 10
11. A summary of Sales Management 11
SECTION B
PART 1: Selling as a Profession
Study Unit 1: The life, times and career of the professional salesperson 12
Study Unit 2: Relationship Marketing 23
Study Unit 3: Ethics First 34
PART 2: Preparation for Relationship Selling
Study Unit 4: The Psychology of Selling 41
Study Unit 5: Communication for Relationship Building 50
Study Unit 6: Sales Knowledge 57
PART3: The Relationship Selling Process
Study Unit 7: Prospecting 66
Study Unit 8: Planning the Sales Call 75
Study Unit 9: Sales Presentations Methods 80
Study Unit 10: Beginning your presentation 90
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 3 of 168
Study Unit 11: Elements with a great Sales Presentation 98
Study Unit 12: Prospects Objections 105
Study Unit 13: Close Begins with the Relationship 112
Study Unit 14: Service and Follow-up for Customer Retention 119
PART 4: Managing yourself, your career and others
Study Unit 15: Time, Territory and Self-Management 126
Study Unit 16: Planning, Staffing & Training 132
Study Unit 17: Motivation, Compensation, Leadership and Evaluation 138
ANSWERS TO STUDY UNIT QUESTIONS 143
GLOSSARY 165
LIST OF REFERENCES 167
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 4 of 168
SECTION A
1. Welcome to Sales Management
Welcome to the module you have registered for being Sales
Management SAM101/SALM. This is a module that forms part
of the core foundation in your marketing academic journey.
Some graduates enter into marketing industry as sales
representatives, this is an great start to your marketing career, with which ever avenue you decide to
branch off to in the future, as in the bigger picture of Marketing one needs how to sell the
product/service before they are able to marketing it and vice versa. You would also be developing
interpersonal skills which will prove to be most valuable in building professional relationships
throughout your career. Below are two past students whom not only successfully completed but
succeeded in the Sales Management module. They have written a brief word of how the module of
sales management has added to their marketing careers
2. A word from Alumni – Natasha Wilcocks
My name is Natasha Willcocks; I am currently a Marketing Research
Scientist at Interwaste Holdings Limited. My journeys began straight
out of high school, with a passion and drive to make a difference in
the way marketing is done in the waste management industry, by
finding new ways to improve our marketing methods. This sparked
my journey with IMM GSM, while gaining work experience. I was
guided towards the Diploma in Marketing Management, which since
then has provided me with all I need to move into a BBA in
Marketing Management.
The Sales Management 101 module gave me a huge advantage when designing a new way for
Interwaste representatives to put together and complete tenders, especially knowing that we needed
to sell a relationship to our customers, and not just a service. We also implemented several
communications techniques that help us give the same consistent message to our clients, showing
stability and consistency. This Sales Management module, helped me understand how to
communicate an effective message to our customers, something that they would understand and
appreciate. Also allowing me to completely understand how marketing and sales are related, and
help one another to achieve the results desired by corporate South Africa.
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 5 of 168
My advice to students starting the Sales Management 101 module would be, to put yourself in the
shoes of the customer and the sales person. Think how you would like to be treated and
communicated with as a consumer, and with that in mind respond in the manner the sales person
would. Good luck, and enjoy it.
A word from Alumni – Dominique Pelser
I should be finishing my Diploma in Marketing Management with the IMM GSM
Institute at the end of this year. I have been able to apply theoretical knowledge
from Sales Management to the real world, through a promotional work and a 6
month work experience at Mercedes-Benz
The fundamental concepts taught in the module are logical and practical for all
business segments; however they are implemented in various ways due to
individual perceptions, values and personalities. Sales Management is key to
business success as it deals directly with customers therefore having an effect
on the business sustainability, growth and development. This module teaches
core skills to achieve business and personal prosperity.
Selling is in every part of our lives, I found it a necessity for providing customer solutions through
effective communication in both correspondence and behavioural responses. It is the best tool for
understanding customer's needs and motivating an internal and external environment for
development.
3. Relationship with other modules
Sales Management SAM101/SALM is a module completed in your first year of either the Higher
Certificate in Marketing Management, the Higher Certificate in Export Management or the Diploma in
Marketing Management. It covers the fundamentals of Sales, specifically being personal selling and
sales management. Once you have completed Sales Management 101 you will be able to enter into
your first sales job having a solid foundation of the personal selling process (from cold calling to
closing a sale) as well as equipped with sales management knowledge you may need to manage a
sales team in the future.
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 6 of 168
So what do you have to know before attempting such a module? The pre-knowledge that is required
in doing this module is that you are sufficiently literate, you have access to the internet and you have
sufficient experience in producing written assignments in a full and clear fashion as well as having a
sound knowledge of the Harvard Referencing System
4. How to use this guide
This learner guide will guide you and fully equip you with the skills and knowledge you need to
prepare for assignments and exams. It is filled with supportive information which may better explain
concepts from your prescribed textbook as well as there are activities with feedback, glossary’s to
provide you with some clarity on some difficult terms as well as referencing to additional material you
may find on the student portal.
Your learner guide is a vital tool that should be consulted throughout your studies of this module. It is
not a summary of the textbook, and therefore should be used in conjunction with the prescribed
textbook when preparing for your assessments.
There is a glossary at the back of your learner guide with explanations of all key terms. There are
also questions within the study units and revision questions at the end of each study unit; all these
questions have answers which can be found at the back of the learner guide
In using the following learner guide, you will need to make use of the below keys to understand the
meaning behind the icons
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 7 of 168
Additional reading Key concepts
Learning outcomes Revision Exercise
Revision Question
5. Prescribed learning material
You need to make use of the following prescribed material throughout your studies of
this module:
Prescribed textbook: Futrell.C.M (ed). 2014. Fundamentals of Selling. 13th
edn. USA: McGraw-Hill.
Prescribed IMM learner guide for SAM101/SALM, dated November 2013.
6. Additional support
Please make use of all materials (additional resources, tutorial letters and relevant past papers)
available to you on the IMM Website and the student portal.
7. Assessment
Assessments comprise of both the assignments and examinations for this module. Please make sure
that you thoroughly read through the IMM GSM Yearbook under the assessment section for a
complete understanding of the rules and regulations when it comes to assignments and exams.Your
assessment for this module consists of submitting an assignment and writing an exam.
Assignment
The assignment constitutes 20% of your mark. Although it may seem like a small
percentage, when calculating your final mark, the assignment mark may be the
difference between a pass, fail, and even a distinction.
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 8 of 168
You need to familiarise yourself with the Year Book as this gives you important guidelines as to font,
styles, formatting and referencing requirements for submitting your assignment. Your assignment will
have 10 marks allocated to presentation; these 10 marks will be awarded to how successfully you
adhered to the assignment formatting requirements. Yet again, it is an easy way to get 10 marks and
these marks in the end could be extremely valuable. So, I urge you to comply with the assignment
guidelines.
An assignment is an open book format; therefore,
you will not receive marks for regurgitating what is
said in the textbook, it is all about the markers
seeing your understanding of the question at hand.
It is therefore imperative that you make use of your own words. The IMM GSM takes copying out the
textbook WITHOUT referencing very seriously, this is known as plagiarism (see Year Book) and you
will be held accountable for disciplinary action if you fail to reference your sources.
The assignment generally consists of a few essay type questions and is usually based on a short
case study.
Examination
The exam incorporates all content that is covered in the referred pages of the textbook
and learner guide. This mark makes up the other 80% of your final mark for
this module.
The final mark/semester mark can be calculated as follows:
Exam mark= 75% Assignment Mark = 65%
75 x 0.8 (as it contributes 80% towards your final mark) = 60
65 x 0.2 (as it contributes 30% towards your final mark) = 13
Therefore your final mark would be 60 + 13 = 73%
The grading system of your marks is as follows
75% or more = Pass with a distinction
50% - 74% = Pass
0% - 49% = Fail
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 9 of 168
8. National Qualifications Framework specifications
This module forms a compulsory module for the Higher Certificate in Marketing, the Higher Certificate
in Export Management and the Diploma in Marketing Management, In terms of the new National
Qualifications Framework (NQF) it is designed as a 20-credit module offered on NQF level 5
9. Critical cross-field outcomes
The critical cross-field outcomes, also known as transferable skills as
identified by the South African Qualifications Authority (SAQA), are
essential for your development as a student within the education and
training system, regardless of the specific are of learning. It is these outcomes that are deemed
critical for your development in the capacity of life-long learning
The critical cross-field outcomes adopted by SAQA are as follows:
Identify and solve problems in which responses display that responsible decisions using
critical and creative thinking have been made.
Work effectively with other as a member of a team, group, organisation and community.
Organise and manage oneself and ones activities responsibility and effectively.
Collect, analyse, organise and critically evaluate information
Communicate effectively using visual, mathematical and/or/language skills in the modes of
oral and/or written presentation
Use science and technology effectively and critically, showing responsibility towards the
environment and health of others
Demonstrate an understanding of the world as a set of related systems by realising that
problem solving contexts do not exist in isolation
Reflecting on and exploring a variety of strategies to learn more effectively
Participating as responsible citizens in the life of local,
national and global communities
Being culturally and aesthetically sensitive across a
range of social contexts
Exploring education and career opportunities
Developing entrepreneurial opportunities
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 10 of 168
10. Curriculum
The curriculum for this module is summarised in the below table.
Study
Unit No.
Topic Prescribed textbook
reference
1 The professional sales person Chapter 1
2 Relationship Marketing: Where personal selling fits Chapter 2
3 Ethics First…Then customer relationships
Chapter 3
4 The psychology of selling Chapter 4
5 Communication for relationship selling
Chapter 5
6 Sales Knowledge Chapter 6
7 Prospecting
Chapter 7
8 Planning the sales call Chapter 8
9 Selecting Sales presentation method Chapter 9
10 Begin your presentation strategically Chapter 10
11 Elements of a great sales presentation
Chapter 11
12 Welcome your prospect's objections
Chapter 12
13 Closing begins the relationship
Chapter 13
14 Service and follow-up for customer retention
Chapter 14
15 Time, Territory and self-management: Keys to success
Chapter 15
16 Planning, staffing and training successful salespeople
Chapter 16
17 Motivation, compensation, leadership and evaluation of
salespeople Chapter 17
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 11 of 168
11. A summary of Sales Management
Part 1: Selling as a profession (comprising of Chapters 1, 2 & 3)
Part 1 provides an overview of the sales profession and the sales presentation; in particular Chapter
1 examines the sales career and introduces the 10-step selling process used through throughout the
textbook. Chapter 2 explains how personal selling fits in to a firms marketing program. Chapter 3
illustrates the impact of social, ethical and legal issues on a firm’s operations.
Part 2: Preparation for Relationship Selling (comprising of Chapters 4, 5 & 6)
Part 2 focuses on the main sales knowledge that sales people need, where specifically Chapter 4
discusses buyer behaviour with a discussion of the communication techniques you will use in your
sales presentation. Chapter 5 introduces you to a basic verbal and nonverbal communications
techniques used by todays salespeople. Chapter 6 provides an overview of sales knowledge required
to call on customers.
Part 3: The relationship selling process (comprising of Chapters 7, 8, 9, 10, 11, 12, 13 & 14)
This part of the textbook is about the selling skills that successful salespeople use. These skills
comprise of a salesperson finding prospects, analysing their needs, creating a presentation that
emphasizes benefits of the sales person’s products and show how their needs to be addressed. They
are also required to address potential objections in order to gain commitment and provide exceptional
service to earn the privilege of repeating the cycle to help the customer in the long-term.
Part 4: Managing yourself, your career and
others (comprising of chapters 15, 16 & 17)
Now that we have covered the main steps in the
selling process, you should now be able to put
together the “show and tell” sales presentation.
The final part of your textbook introduces you to
territory and sales management. Specifically
chapter 16 discusses efficient use of time and
identifying prospects and contacting customers
in a sales territory. Chapters 17 & 18 provide
you with an overview of what is involved in
managing a sales force
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 12 of 168
Part 1: Selling as a profession
Study Unit 1: The professional
sales person
We will be looking at the process of personal selling, the typical characteristics of a salesperson as
well as the different types of sales jobs available. When looking into a salespersons job, we would
also need to consider how relationships have an influence on a salesperson’s career and why a
person would consider a sales career.
“I have never worked a day in my life
without selling. If I believe in something, I sell it,
and I sell it hard.”
Estëe Lauder
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 13 of 168
LEARNING OUTCOMES
After completing this chapter you should be able to:
Define and explain the term “selling”
Explain why everyone sells
Explain the relationship between the personal selling and the golden rule
Discuss the reason as to why people might choose a sales career
Enumerate some of the various types of sales jobs
Describe the job activities of salespeople
Define the characteristics needed for success in building relationships
List and explain the 10 steps in the sales process
1.1 INTRODUCTION
Selling is important because it is an integral part of each and every day. For
example, when you visit you nearest Pick ‘n Pay store and need to purchase
something, which is when the selling process begins. We do not always think of
selling as a process because it is quick and easy but it is a process that we
cannot live without.
This chapter will explain the concept of personal selling, how it works and what is important when
people choose selling as a profession or career. It is also very important to consider the influence that
the sales person can have on a customer or potential customer and finally how to be successful in a
selling career.
1.2 DEFINITION OF SELLING
Before continuing to the aspects of selling and personal selling, it is
important to define and explain what selling means. According to Business
Dictionary (2013), “Selling is the communication between a seller and buyer
where information is exchanged to persuade the buyer to purchase goods
or services that will satisfy his/her needs“
The golden rule of selling is always treating the other person the way that you would like to be
treated. Mercedes Benz has the reputation of treating its customers with dignity, respect and honesty
when they purchase a vehicle from Mercedes Benz.
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 14 of 168
Gary Smith, a British-American business leader, identifies the three different selling methods as it has
evolved over the years. He categorised the different sales persons into traditional, professional and
golden rule. The following is a summary of the characteristics of the different sales persons identified
by Gary.
Figure 1.1: Characteristics of different sales people (Futrell,M. 2014)
1.3 EVERYBODY SELLS
Selling is part of our daily lives from an early age. Selling our skills when applying for a job, selling
ourselves as worthy when going on a date and even urging the teacher to award a good grade are all
examples of how we sell on a daily basis. Therefore, selling is not just for the salesperson trying to
sell you product or service.
1.4 REASONS TO PERSUE SALES CAREER
There are six reasons why an individual would choose to follow a sales career. There are also
different types of sales careers that can be pursued. It is important for a person to understand the
reason why he/she wants to pursue a career in sales before choosing the type of sales career. Let us
consider the different reasons why an individual would choose a sales career.
Service to others
Some people feel the need to be at the service of others. Think of a waiter at a restaurant who is
always friendly and makes you feel comfortable while eating and relaxing. A person with these
characteristics should consider a career where service is important.
Freedom
One of the benefits of a sales career that many people find attractive is the freedom of not spending a
whole day at the office. Many representatives make appointments with customers and drive to meet
them in their own surroundings. This results in representatives planning their working hours and their
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 15 of 168
travelling time. If they feel more comfortable working from home or at the office in the afternoon, they
can schedule all their meetings in the morning.
Challenge
Some people enjoy a challenging job. Sales can become challenging when it comes to difficult
customers.
Advancement
Advancement means going forward or making progress. Due to the nature of sales being driven by
objectives, goals and targets, an individual would have to work hard to reach and exceed goals.
However there is a clear career path you can advance through from your initial sales job, right
through to sales managers, product managers and corporate sales
Rewards
A career in sales could mean rewards when a sale is successful. The reward could be monetary
recognition from the company but it could also be psychological since the sales person will also feel
good about himself, knowing that he played a part in the company’s success.
Types of sales jobs
There are a variety of sales jobs available in the market. This allows a person to choose in which
direction he/she would like to move in. For example:
a. Selling products in a store.
b. Walking from door to door to sell products or services.
c. Visiting a customer to take his order.
d. Phoning prospective customers and advising them of new products via telephone.
1.5 TYPES OF SALES JOBS
When a person realises the reasons why he/she want to pursue a career in sales, choosing a specific
type of job is easier. Consider the following sales career choices:
Retail salesperson
A retail salesperson would typically be a person who would communicate with a customer in a retail
store to find the product that the customer wants. There are three different types of retail
salespersons namely:
In-store salesperson
Direct seller in a fixed store
Telephone salesperson
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 16 of 168
Wholesale selling
A wholesaler would typically employ a person to sell or distribute bulk quantities to other
organisations. If the retailer will agree to purchase a much greater quantity of units from the
wholesaler, the wholesaler will accept a slightly lower sales price for each unit and in this way the
wholesaler can maximise his profit. This salesperson would typically sell the products to the following
parties:
Resale to smaller retailers
Organisations using goods to produce other products (manufacturers)
Other organisations that needs the products for normal operation
Direct selling
This is a method used to sell products to customers in a face-to-face manner. An example would be a
door-to-door salesperson who would typically sell products to customers in their own homes.
Selling for a manufacturer
A manufacturer’s representative is any individual who agrees to represent a company and sell their
product or services on a straight percentage fee, which is automatically added to the selling price of
their product or service. This is commonly known as straight commission selling. A manufacturing
sales representative would typically range from delivering milk to persons specialising is technical
industrial products.
1.6 IS A SALES CAREER FOR YOU?
To survive as a salesperson in a continually changing environment, he/she needs to assess and
evaluate themselves to make sure the job is for them. A love for sales needs to be present or
developed over time to ensure success in this career choice.
The abbreviation ‘SSUCCESS’ is used to describe the eight most
frequent characteristics that a salesperson would need to be
successful in a sales career. Think about a medical sales
representative for Pfizer, who needs to visit doctors daily to promote
and introduce new medication. Consider the SSUCCESS factors of
this sales representative.
S – The sales representative needs to have a passion for pharmaceutical products like medicines.
This is important as it contributes to the sustainability of his/her career. A doctor would not be
interested in a product when a representative does not show any interest in his/her ‘own’ product.
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 17 of 168
S – The representative needs the will to serve the doctor with new and relevant information on
products.
U – The golden rule that was discussed earlier should be applied by placing the doctor’s needs first.
Listen to the doctor and try to understand the needs of the client. Rather than trying to make a doctor
prescribe one of your products, build a relationship in order to mutually fulfil the needs of the doctor
and the selling company (which includes the salesperson), thereby ensuring future sales.
C – Communication is very important when it comes to the medical field. This field is very complex in
terms of different effects medication has on the doctor’s clients. A salesperson needs to be able to
clearly communicate to ensure the doctors understanding with regards to the medication the doctor
will be prescribing to his/her patients. Without this important skill, no salesperson will be able to
survive.
C – A salesperson in the medical field should be a good presenter, a people’s person, well-spoken
and have a broad knowledge of pharmaceuticals.
E – A salesperson needs to think strategically and plan before seeing the doctor. The doctor would
ask questions that the representative needs to be able to answer on the spot.
S – Sales knowledge goes hand in hand with strategic thinking. The representative needs to be able
to know how to approach the doctor with unknown medicines even though the doctor might have
been prescribing the same medicine for the past 20 years.
S – When a doctor decides not to use the representative’s product, he/she needs to know how to
treat the situation. Keeping a positive attitude even though no doctors were interested in your product
is very important for survival. A sales person should have stamina for the challenge because not
every sales attempt is successful.
1.7 CHARACTERISTICS OF A SALES PERSON
Salespeople would usually share some of the same characteristics since it usually requires a certain
type of person to be successful in sales. These characteristics would usually be associated with
those that a ‘nice’ person holds. Think about the friendliest person that you know and use words to
describe this person. These would typically be the same characteristics found with salespeople.
A salesperson needs to be appealing to others as nobody wants to buy a product from a bad-
tempered person. Even though some sales persons do not naturally hold these characteristics, they
would still act as if they do. This builds a feeling of trust between the salesperson and the customer.
The following are ten of the most common traits tha a salesperson should have or project to the
customer.
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 18 of 168
In an exam/assignment you should be able to explain how each of these characteristics relate
specifically to a salesperson successfully doing their job
1.8 WHAT IS A CUSTOMER
The most important aspect of sales is the customer. Without a customer, there cannot be a sale. You
may have the perfect product or service to offer but if there is no one to sell it to, the company (and
the salesperson) will not exist. It is important to know who the customers are and what their needs
are at any given time.
A salesperson should always remember that he/she is dependent on the customer and not the other
way around. The customer is the purpose of the sale and should be the purpose of the salespersons
career. If the customer prefers not to work with a salesperson, he will take his business to a
competitive company and the sale will be lost to the salesperson and the company he is representing.
Therefore, the customer creates a foundation for sales that result in company profits. Customers are
the lifeblood of any business and the reason why a business exists in the market and is able to
continue with sales. It is very important that a salesperson fulfils the needs of the customer since the
customer deserves the most courteous attention.
Revision Question 1
Why should a salesperson depend on a customer?
1.9 RELATIONSHIP SELLING
Many years ago, a salesperson’s goal was to make as many sales as he/she possibly could in order
to maximise profits for themselves and the selling organisation. They typically pushed customers into
buying things that they did not want or need. No consideration was given to the customer – it was all
about making the sale.
The market for salespeople is continually changing. The new
developing market requires salespeople to serve the wants
and needs of their customers so that people will return and
purchase again. These salespeople want themselves, the
organisation and the customer to benefit from the sale.
Johnston (2009) describes relationship selling as creating a
long term relationship with customers to ensure continuing
business between the customer and the salesperson, which
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 19 of 168
represents the company. Salespersons must ensure that they understand the customer’s needs and
wants. In relationship selling the customer has one point of contact and is ensured of constant care
by the salesperson. An unhappy customer will go elsewhere to do his business so it is important that
a sales person keeps contact with the customer to ensure that the customer’s needs are met. In turn,
the customer will be satisfied knowing that his qualms and queries will be attended to professionally
by the sales person. This builds customer loyalty. Losing a customer not only has the immediate
effect of losing the sales, but it also results in losing possible referrals that the customer would have
provided as well as losing follow up sales.
In theory it sounds simple to keep a customer happy, however, when one salesperson has a lot of
customers and to keep them all happy takes a lot of time and patience and good customer service.
The ABCS is a method used by many salespeople to ensure that all their customers are attended to.
Revision Question 2
In your own words what does relationship selling mean?
Selling is hard work but very rewarding. Although other jobs could potentially also be hard work, sales
could sometimes take its toll on salespeople, especially if the salesperson is working purely on
commission. Salespeople have customers in different areas so it results in the salesperson travelling
far distances and sometimes sleeping away from home. These are some of the complexities that a
salesperson faces that makes selling different to many positions.
A salesperson represents the company that he/she works for and it is important that the sales person
remembers this at all times. The salesperson should always be representative of the image that the
company wants to portray because customers judge the company in the way the salesperson
portrays himself/herself
Unlike a normal office bound job, a representative does not have a supervisor looking over his
shoulder the whole time. However, the results of the salespersons work are reflected in the
company’s monthly results and will be measured to see if the salesperson achieved his monthly
goals. A person who decides to follow a career in sales must have a high level of self-discipline to
ensure success.
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 20 of 168
Revision Question 3
What are the main reasons why a sales job is different to other jobs?
1.10 THE PROFESSIONAL SALESPERSON
What does a professional salesperson do? A sales person is often more than a door to door
salesperson. Some people sell expensive equipment to customers – for example – bulldozers and
excavators costing millions of Rands. Depending on the product that the sales person is selling, it is
often required that a salesperson has some technical knowledge that will assist the customer to make
a decision.
A professional salesperson must portray professionalism at all times. He can portray professionalism
by applying the following basic skills (POLC).
Planning
Organising
Leading
Control
There are also nine functions, when applied correctly, can assist the salesperson to flourish in his job.
These nine functions are as follows.
1. Although salespersons strive to build long term relationships, it is also important to create new
relationships and look for new customers. Finding a new customer is difficult; keeping them is
even more of a challenge.
2. One person knows at least 200 people. When a customer is happy, he wants to share his
experience by telling his friends, family and acquaintances about his experience. This attracts
even more customers.
3. Building long term relationships makes the relationship between the salesperson and the
customer comfortable. This will lead to repeat purchases.
4. Customer problems can be solved when a salesperson plans, leads, organises and controls
the environment, product and the business.
5. The salesperson should always be ready to provide a sales service to a customer. After sales
service is the most common type of service that a customer might require.
6. WOM (Word of Mouth) is a very powerful advertising tool and it does not cost any money.
WOM is when one person tells another of a product or service. This is a good example of how
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 21 of 168
one customer can help a salesperson find more customers and in the process, sell more
products.
7. A salesperson should plan to include after sales service in his normal schedule. Customers
often judge a product based on the after sales service.
8. A sales person should be friendly and helpful and honest. If a customer feels that he can trust
the sales person, it could influence him to purchase the product. Influencing a customer’s
decision is not a way of selling something the customer did not need, but rather to educate the
customer on what he/she wants.
9. A salesperson should use his/her POLC skills to gain insight into what the customers want.
This information is used for research and the development of new products.
Revision Question 4
Name and explain any 4 out of the 9 functions a sales person performs
1.11 CATEGORIES OF SKILLS REQUIRED
Although a sales career sounds like an easy job get do, it requires various skills. When an
organisation employs a new representative, they will look for the following skills in the individual to
make sure the person will survive in the position.
Conceptual skills: Conceptual skills are the ability to think creatively, understand and analyse
complicated and abstract ideas. If a salesperson can understand the customer’s thinking in a certain
situation, he/she will know what to avoid and what to emphasise.
When a salesperson understands the needs of the customer, he/she will understand how the product
fits each individual customer. This information will assist companies to design better products that
customers will purchase.
Human skills: Human skills are needed to understand people, how they think and how they react.
This information also leads to knowing how people can be influenced in certain situations. A very
important part of human skills is the ability to relate to customers and their needs.
Customers will also rather do business with people that they personally like. This does not
necessarily need to be the personality of the salesperson.
Technical skills: A salesperson needs to have some technical skills as it will be necessary when
demonstrating or presenting the equipment or products to customers. Understanding the technical
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 22 of 168
lingo and the performance of products relating to other market related products can persuade a
customer that your product is the best.
Selling is second nature for everybody as it is part of our daily lives. This is one of the reasons why so
many people pursue a sales career. When choosing this career path, a person will be faced with
many questions to ensure that the correct type of sales career is followed as there are many.
People choose a career in selling as it is different to most other jobs. Although it might seem simple,
there are skills that a person would need to acquire in order to survive this profession. Understanding
the importance of a customer and understanding their needs are important aspects for the success of
a sales person. The importance of building long-term relationships with a customer also ensures on-
going sales.
Revision Exercises (Remember the answers are at the back of the learner guide)
1. Why choose a sales career?
a) The challenge of selling
b) The freedom of being on your own
c) The opportunity to provide service to others
d) You are looking for a behind the desk job
2. Which of the following is not a function that a salesperson performs?
a) Provides service to customers
b) Builds goodwill with customers
c) Forcing the customer to make a purchase
d) Builds long-term relationships with customers
3. The skills required by sales person can be broken into 3 categories, being conceptual,
human and technical. Explain each of these 3 skills and provide an example to show your
understanding.
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 23 of 168
Part 1: Selling as a profession
Study Unit 2: Relationship
Marketing – Where personal
selling fits
This chapter will give insight into what the marketing concept means and how relationship marketing
should be used to create a better customer oriented organisation. Personal selling will also be
discussed in detail together with the roles of personal selling.
“If you are not taking care of your customer, your
competitor will”
Bob Hooey
LEARNING OUTCOMES
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 24 of 168
After completing this chapter you should be able to:
Define the terms marketing and marketing concept
Describe the evolution of customer orientation
Answer the questions, why marketing is important in an organisation
Illustrate how an organisation’s 4P’s are coordinated for maximum sales
Explain why an organisation should listen to its customers
Discuss the role of personal selling
2.1 INTRODUCTION
Marketing is a very important part of business when it comes to customer’s wants and needs.
Marketing is not only needed to boost sales and revenue but also to satisfy the needs of customers
through a sales person.
The way in which salespeople do business has drastically changed over the years as the business
environment changes. Today, it is a critical part of business to maximise sales, develop new
products, develop new markets and provide quality service to its customers.
Some salespeople develop such good relationships that it becomes a partnership in a way that has
positive results for both the salesperson and the customer. E-selling is one new way of using
technology to create and build relationships with customers.
2.2 DEFINITION OF MARKETING
According to Keefe (2008), marketing is the activity that creates value for customers and the society
at large. This broad definition shows that there is more to marketing than just advertising. A firm that
wants to market new flavoured water has to understand the following important concepts:
Need/Want
The most important is to determine whether this flavoured water will satisfy the target market’s needs.
The firm needs to create a want for the product using marketing by advertising a celebrity, like Wayne
Rooney (famous soccer player), drinking the flavoured water.
Product success
The success of a product is determined by the consumers but can be influenced by using different
marketing techniques. Unsatisfying products will be forced from the market over time. The flavoured
water can be placed on the market and perhaps be an immediate success. On the other hand, the
water can be marketed to create a want among potential customers which will ensure success.
Marketing includes…
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 25 of 168
Among other, marketing includes selling, advertising, promotion and product development. This
means that the flavoured water should have an eye catching label, promoted by a special in store
promotion and advertised on television as an example. There are many other methods of marketing
that a marketing manager can use.
When two people exchange products, marketing will always be involved in the exchange process in
some form. This could include two strangers who wish to advertise their product on the internet or in
a book. Two friends agreeing to switch computer games will also require an amount of marketing just
like the two strangers. Some level of marketing will be necessary even if it is as simple as this friend
asking the other what they are planning with the specific product. It is important to realise that no
money exchanged hands but instead something is given in return.
A transaction can be the same two people but with a payment involved. Transactions also need
marketing in some form in order to start the selling process.
Revision Question 5
Write a short definition of marketing in your own words?
2.3 CUSTOMER ORIENTATION EVOLUTION
Businesses have gone through many changes through the years. Consider the illustration below in
terms of how car dealership changed during the years.
Production Concept
In the olden days, the car dealerships would order a car and place it on the showroom floor until
somebody came to the dealership and showed interest. They did not think about what the customer
would like to have but rather how they wanted to produce the product. A very good example is the
famous words of Henry Ford when he said that his customers can have the car in any colour as long
as it is in black.
Selling Concept
Later on, it was clear that the production concept was not going to be able to continue in this way as
the customer’s needs had to be fulfilled. The change came after the war when different products
became available between which customers could choose. For example, not only Ford was available
but other brands like Chevrolet entered the market and took a piece of the market share. This would
mean that these brands had to compete to attract customers.
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 26 of 168
Marketing Concept
The next phase was a marketing phase rather than just selling. In this phase, brands like Ford
realised that their mind set should change to a customer oriented way of doing business. Marketing of
products changed the entire theory of how business should operate. There are three fundamental
beliefs when it comes to the marketing concept which is very important:
Planning and operations is customer oriented. This means planning a product for the
customer.
Goals should be profitable sales volumes. The more customers you satisfy the better sales
volume which will lead to better profits.
Marketing activities should be organisationally co-ordinated. The organisation knows what
they created and how it satisfies customers and should be marketed that way.
2.4 MARKETING IMPORTANCE IN A FIRM
In today’s business environment, marketing has become the most critical factor that guides planning
in an organisation. Marketing people have four basic objectives in any organisation.
Maximising sales of existing products or service to increase profitability and also customer
satisfaction.
Developing new products to satisfy a wider range of customer’s needs.
Developing new markets by creating new unseen products which may attract customers due
to its uniqueness.
Provide quality of service in order to keep customers happy and thereby continue building a
strong organisation.
Excellent service is also part of the marketing in a firm. A product sold with excellent service is worth
much more than a product sold with bad service. When a customer walks into a Ferrari garage,
exceptional service can be expected. This contributes to the price of the product and inflates it.
Together with a good product and using marketing correctly, an organisation can generate sales and
be known for quality products and services. Excellent service creates true customers and will pay off
by means of maximisation of sales.
Revision Question 6
When selling a product with excellent service, what is the benefit to be drawn from the salesperson’s
point of view?
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 27 of 168
2.5 ESSENTIALS OF A FIRM’S MARKETING EFFORT
A firm should have the ability to determine the needs of their customers by understanding:
Firstly who the customers are
Secondly why customers like the product and
Thirdly how the customer perceives the product
Create and maintain an effective marketing mix
The four elements of marketing, called the marketing mix, are very important. These four elements
are also called the 4 P’s of marketing. The marketing manager has the responsibility to determine
how each of these elements would work the best for the specific product. A new product on the
market should be defined in terms of the 4 P’s. Let us analyse a new farmer that wants to sell milk on
the open market.
Product: The farmer’s milk is a tangible product which is considered to fall under the category of
‘goods’.
Price: The farmer needs to decide how the milk will be priced. There are many different pricing
strategies that the farmer can use to get the product on the market. The farmer can decide to sell the
milk cheaper than any other milk product or brand it as an elite type of milk that is more expensive.
Promotion: The product needs to be promoted to the public. The farmer would need to decide which
of the promotional mix (in the diagram above) would work best for the milk product and which will
reach the target market.
Place: The farmer needs to decide which distribution channels will be used to get the product out to
the customers. The farmers should also decide which stores will sell his/her products. Milk is usually
sold by the small to large retailers.
Revision Question 7
If you were the marketing manager of KFC, provide a short explanation of each of the 4 p’s being
applicable to your business
2.6 RELATIONSHIP MARKETING
According to Techopedia (2013), relationship marketing is the process of building customer loyalty,
customer relationship and the value of the product through marketing activities. This can be achieved
by using the 4 P’s of marketing.
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 28 of 168
The objective of relationship marketing is the exact opposite of a single sales transaction like buying
milk from a spaza shop. Instead of a customer walking in, buying the milk and walking out, the shop
staff will attempt to get to know the customer. A relationship will be established to ensure repeated
sales and a better understanding of what the customers wants as well as why they want certain
products.
2.7 RELATIONSHIP MARKETING AND THE SALES FORCE
Salespeople are the ones who should implement relationship marketing, an
example of this using the above example is the salesperson greeting the
person by name and already knowing what the customer wants to purchase
(based on past visits) and telling them what is out of stock before they have
to walk through the entire store trying to find it. This is important in order to
boost sales, revenue and services rendered to customers. Personal selling
through sales force builds relationships and is an essential part of the
marketing mix.
There are a few questions which can be asked to define the role of sales force in an organisation
which are:
How much selling effort is required?
Is sales force the best tool compared to other marketing strategies?
What type of sales activities will be necessary?
Can strength be gained as a result of sales force?
These questions should be asked when the decision arises whether or not to use a sales force. The
answers for these questions would typically come from the organisation itself due to the unique
structure of the organisation.
An industry in South Africa which is very common is the building of swimming pools which is due to
the climate. The organisation who builds swimming pools should make a decision whether they want
to use sales force and how it will benefit the customer and organisation. Let’s implement the question
to the example.
Building a swimming pool can be expensive and needs a lot of persuasion from a seller or
salesperson.
The organisation should ask:” will an advertisement on television or any other marketing tool
work better than a salesperson?”
The salesperson will have to take the customers through the different products as well as after
sales service.
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 29 of 168
Using a salesperson will attract more customers in this case because this industry gets most
of its leads from WOM (Word of Mouth).
2.8 LEVELS OF RELATIONSHIP MARKETING
There are three general levels in which a relationship between a salesperson and a customer can fall.
When the levels of relationship marketing are analysed, the 80/20 principle should always be
considered. Kruger (2010) describes the 80/20 principle as 80% of the sales would usually come from
20% of the customers5. This means that if you keep the regular customers happy, 80% of sales would
already be made. But 80% of the customers cannot be forgotten.
There are 3 levels of relationship marketing being: Transactional, Relationship selling & Partnering,
each explained in depth in your prescribed reading
Revision Question 8
Provide a brief explanation of each of the levels of relationship marketing as well as provide a
practical example of each to show your understanding of each level
2.9 PARTNERING WITH CUSTOMERS
The ultimate outcome of relationship marketing is a partnership. When a customer and a salesperson
decide to create a partnership, the main focus of the partnership would be to look after the needs of
both parties involved for the future. A partnership will be a continual process to ensure satisfaction for
both parties involved. Therefore benefits will increase for both parties.
An added benefit to the organisation will be that the customer can easily share information like
product satisfaction, expectation and what the customer wants and needs. In a partnership, a
customer can tell the salesperson what aspects they like and do not like of the product.
In a partnership the parties are no longer referred to as a buyer and a seller, but rather as partners.
The product will be sold at the lowest possible price and the highest possible margin because these
two parties would work towards the same objective.
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 30 of 168
2.10 THE NEW CONSULTATIVE SELLING
Due to customer’s’ needs becoming more and more complex, salespeople need to adjust to the
market as it changes. The manner, in which sales were made, changed from creating a product and
waiting for it to sell, to a product with additional services and value added products/services which fits
the customer’s actual needs. The current business environment needs salespeople to take on the
roles of team leaders, business consultants and facilitating long term relationships.
Figure 1.2 Roles to consultative selling (Futrell.M. 2014)
According to Business Dictionary (2013), Consultative selling is personal selling where a salesperson
needs to take on the role of a consultant to help the customer identify the needs before suggesting a
product that will satisfy a need. It is a new type of personal selling which rose from the change in the
market as a result of customer needs.
Organisations like Old mutual, Santam, Sanlam and Liberty are leaders in consultative selling and
helped structure the way consultative selling works in South Africa.
These organisations sell products like retirement funds, annuities,
insurance and investments to name only a few. The salesperson
normally meets with the customer in order to understand the customer
needs, thereafter a recommendation is made on the products that will
suit the customer’s needs. These salespeople also provide a
personalised portfolio to ensure that the customer’s needs are completely satisfied.
Revision Question 9
1. What are the three roles of consultative selling?
2. Consultative selling requires a sales person to take on 3 roles, briefly explain each role.
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 31 of 168
2.11 E-SELLING: TECHNOLOGY AND INFORMATION BUILD RELATIONSHIP
In order for a salesperson to become successful in consultative selling, he/she needs to continually
gather information on goods, services, customers and competition to positively influence a customers
buying decision. Technology makes gathering of information possible which is important to improve
sales and service performance.
Computers, cell phones, tablets, internet and email are things that can facilitate e-selling as well as
provide instant access to the above named information. A salesperson who
installs window blinds can use an iPad and internet to instantly show a
customer the products on the organisations website, calculate a quote and
check product availability. A cell phone, email and internet will increase
efficiency and speed of a salesperson which could be the difference between
an accepted quote and a rejected quote. You can just imagine how long it will take the blinds
salesperson to drive to each blind supplier to find prices and buy stock. Today we can easily send an
email or call the supplier with an immediate answer to questions.
A customer will rather do business with a salesperson who is fast and more accurate than someone
who takes and entire week to gather information. In the same way, a
customer would rather do business with a salesperson that makes it easier
to do business with. These days, customers can place orders, check stock
availability and pay on - line. Smaller organisations may not be able to use
expensive technological equipment, but will definitely be worth it to use this type of equipment.
Many organisations believe that new technology like iPad’s are worth the price paid as it will lead to a
decrease in travelling time which increases the productivity of the salesperson. It is also believed that
it makes customer service much easier for these salespeople. Imagine a restaurant where all service
ambassadors have iPad’s which are linked the kitchen. The service ambassador would not even
have to walk all the way to the kitchen to pass the order to the kitchen staff.
2.12 KEY TO SUCCESS
Probably the most important question to be asked is: What is the key to success? The answer is
simple but could be difficult to implement.
Firstly, the organisation should know, understand and satisfy what the target market needs with
excellent products and services.
Secondly, marketing is the vehicle for achieving success. The marketer’s main contact should be the
salespersons as they can give relevant information on how to produce sales, profits and customer
satisfaction.
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 32 of 168
Thirdly, the 4P’s will aid the salespersons efforts. The organisation will provide the 4P’s by telling the
salesperson what products to sell, the place where it should be sold, distributing products and how to
promote the product. The salesperson should provide the following information when the organisation
provided the 4P’s:
Analyse the needs of the customers and provide this information to the organisation. The
salesperson will need to follow customer trends and preferences and provide this information
to the organisation in order for them to ensure their products fit the needs of customers.
Present product benefits to the customers. The salesperson will inform the customer on what
it is that they can buy and the reason why these products will be beneficial to them.
Gain commitment from the customers. The salesperson should gain commitment from the
customer to ensure continual sales to this customer.
Provide the customer with service and after sales service. This is important as it ensures
future business with the customer and after sales service keeps customers happy.
With all these factors in place, the salesperson and customer can establish a long term relationship
together.
Revision Question 10
What is the key to success?
2.13 CONCLUSION
Now that we have a better understanding of how a salesperson builds and maintains relationships
and partnerships, it is very important to understand that the sale is for the benefit of all involved. It will
increase revenue for the organisation and satisfy the customer and salesperson in more ways than
one.
Salespeople need to adjust the way in which they work with customers as the business environment
changes. Ten years ago, door to door was a popular way of marketing and selling products. Today,
other methods of marketing replaced door to door sales as people feel that it is not save to invite a
stranger into your home. This is just one example of how organisations and salespeople have had to
adapt to the changing environment. A more relevant example is the internet and how it has changed
sales.
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 33 of 168
Revision Exercises (Remember the answers are at the back of the learner guide)
1. The 3 levels of relationship marketing are:
a. Transaction selling, relationship selling & personal selling
b. Relationship selling, personal selling & Partnering
c. Sales management, Partnering & transaction selling
d. Transaction selling, Relationship selling & Partnering
2. Which of the following is incorrect?
a. Consultative selling is about wanting a long term relationship with their customer
b. Consultative selling is helping the customer achieve strategic short & long term goals through
the use of the seller’s good/service
a. Consultative selling is when the sales person always focus on the customers’ needs when
developing recommendations
b. Consultative selling is when the sales person consults with his manager to plan his territory
3. Discuss in your own words what the primary goal of business is.
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 34 of 168
Part 1: Selling as a profession
Study Unit 3: Ethics
In this chapter we will explain what the influences on ethical behaviour are and what is involved in
managing the sales ethics. We will describe the management’s ethical responsibilities and the
international side of ethics. Ethical dealings among salespeople, employers and customers are very
important and will be seen in the components of the Golden Rule.
“I do not believe in immortality of the individual,
and I consider ethics to be an exclusively human
concern with no superhuman authority behind it.”
Albert Einstein
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 35 of 168
LEARNING OUTCOMES
After completing this chapter you should be able to:
Explain what influences ethical behaviour
Define management’s ethical responsibility
Discuss ethical dealings among salespeople, employers and customers
Describe the international side of ethics
Explain what is involved in managing sales ethics
Write a short essay on the components of the Golden Rule
3.1 INTRODUCTION
Salespeople are and will always be influenced by ethical decisions. There are many things which can
influence a salesperson’s ethical behaviour but fortunately there are many guidelines which a person
can follow to ensure ethical behaviour.
An organisation’s management should take the responsibility of ensuring ethical behaviour for their
staff as well as managing the ethics in the organisation. Management can send emails and put up
posters to create awareness among employees on how to be ethical.
3.2 INFLUENCE ON ETHICAL BEHAVIOUR
Decisions made by an organisation’s management in terms of ethics will play a major role in how
ethical employees perform in their jobs. It is therefore the organisation and its employees who can
influence a person to be ethical or in some cases unethical. When the CEO of a solar heating
organisation tries to sell cheap fake products from China, claiming it is proudly South African, some of
the organisations employees will follow the same unethical trend.
A person’s moral development can be broken down into 3 different levels.
Level 1: Pre-conventional
On this level a person would look after his/her own interests by behaving ethically. A simple example
would be a person who would drive the speed limit just to stay out of trouble. When driving in a rural
area where there are no police or cameras, this person would break the speed limit without thinking
twice.
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 36 of 168
Level 2: Conventional
Salespeople falling into this level would behave ethically because others would expect it from them.
If an organisation is all about ethical behaviour, a salespersons boss will expect him/her to act in a
certain manner when working with customers.
Level 3: Principle
This individual will be driven by his/her own set of moral and ethical standards. This would be a
person who follows the ‘right’ way of doing things regardless of the consequences. He would also
guide others in behaving ethically. Think of the CEO of the same solar heating organisation. If the
CEO always does the right thing, the employees would follow his example.
Revision Question 11
How does a sales person on the pre-conventional level feel about ethics?
3.3 ETHICAL GUIDELINES
Ethics starts with you. Picking up a wallet with money in it leaves a person with an ethical question of
whether or not to return the wallet. From an ethical perspective there is no difference between
keeping the wallet and an illegal bribe to ensure a big contract for your own company. A person who
has been obtaining contracts unethically for many years would not think much of it as it is just a part
of daily business.
A common problem that is arising in South Africa today is bribing police officers. Many people would
rather bribe a police officer than pay the fine which should have been paid. This is totally unethical
and illegal!
Ethics are all about making a decision about wrong or right. The question is, how a person decides
for him/herself what is right and what is wrong. A person would need to sit and examine the problem
from an outsider’s perspective and make a decision on what is right.
It is important to understand that there is a difference between the
golden rule and reciprocity and how these connect to ethical
behaviour. Reciprocity is beneficial to both parties involved in a
sales transaction for example. The golden rule says that a
salesperson should do something for the client without expecting
something is return. A salesperson should find the link between
these two aspects.
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 37 of 168
Revision Question 12
How does reciprocity fit in with the golden rule?
3.4 MANAGEMENT’S ETHICAL RESPONSIBILITIES
As mentioned previously, the management of organisations plays a big role in influencing employees
with regards to ethics. Employees will follow the leader when management decide to make ethics an
important part of daily operations. An example would be if an organisation makes one of their Golden
Rules, ethics.
According to Business Dictionary (2013), ethical behaviour is to act in a way that is acceptable and
consistent with what others typically think is good values. These values can be remembered as a
couple’s wedding vows.
There is an ethical dilemma which occurs as a result of the fact that there are no published ethical
standards or guidelines. When you are placed in a situation and you have to make a decision, it could
be tricky to make the correct decision because there are no guidelines to ethical behaviour standards.
In South Africa, it would be considered unethical to give a gift to the person who could potentially
award you a contract as this would be seen as bribery. But in China it works exactly the opposite way
where it is considered almost compulsory. The ethical dilemma comes in to play when an African has
to do business with a Chinese organisation as the parties would have to adapt to each other’s
cultures.
Revision Question 13
What are the values a salesperson should possess to be ethical?
3.5 ETHICS IN DEALING WITH SALESPEOPLE
Organisations need to place trust in their salespeople because they use organisational assets.
Sometimes salespeople might misuse these assets in an unethical way. So many times we see
police officers driving around with their families in police vehicles. In the same way, salespeople can
misuse a company car, products and money. This is unethical and could be for one or more of the
following reasons:
Personal gain – You do not have to use your personal car or petrol
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 38 of 168
Bribes – Gaining something above the normal commission. For example, a customer gives
the salesperson monthly soccer tickets in exchange for a free service on equipment bought,
outside of the organisations policy.
Once again, the problem is that salespeople are not closely supervised due to the nature of their job.
Salespeople can easily use work time to do shopping. Another way of being unethical is by delivering
more merchandise to the customers than needed just to show more sales at the end of the month,
resulting in higher commission. This unfortunately affects others due to month end prizes or bonuses
taken from other colleagues. The ‘bad apple’ can also influence these colleagues to follow the trend
of unethical behaviour.
3.6 SALESPEOPLES ETHICS IN DEALING WITH EMPLOYER
Ethics does not only apply when working with customers but also with the employer. It would not help
being 100% ethical in terms of the customer and one do not comply with ethics when it comes to the
employer. There are various common ethical problems that organisations can encounter with regards
to their sales force.
Revision Question 14
Discuss any 3 ethical problems that organisations can encounter with regards to their sales force and
provide a practical example to show your understanding
3.7 ETHICS IN DEALING WITH CUSTOMERS
The most common ethical decisions salespeople could face include bribery, misrepresentation, price
determination, tie-in sales, exclusive dealership, reciprocity and sales restrictions. These should be
avoided at all times.
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 39 of 168
3.8 INTERNATIONAL SIDE OF ETHICS
Although each country has its own laws and regulation, ethics remains the same all around the world.
What is considered ethical in Africa is in principle considered to be ethical in the North America or any
other continent in the world. Remember that when doing business with somebody or an organisation
elsewhere in the world, the laws of your country will still apply. Ethics works in exactly the same way.
3.9 MANAGING SALES ETHICS
An organisation and its management should continually strive to manage ethics in the organisation by
informing employees on the principles of ethics.
Organisations, on average, are concerned about social responsiveness and ethical climate. There
are some methods for management to help an organisation to be more responsiveness.
Revision Question 15
Briefly explain any 4 out of the 7 ways in which management can help an organisation be more
responsive
3.10 ETHICS IS BUSINESS AND SALES
An organisation that manufactures products that are worthwhile and which follow an ethical way of
manufacturing should be supported by its customers. Consider the example of a plastic
manufacturing organisation which dumps its waste in the rivers of South Africa. These organisations
should not be supported as they are not following the ethical and legal way of doing business.
Organisations should be running their businesses responsibly. They should not compromise positive
belief systems. The staff working for an organisation should be more important than the products,
finances etc. All organisations need ethical people to work and create an ethical environment. The
support of an organisation values can be built on the following fundamentals indicated on the diagram
on your right
3.10 GOLDEN RULE OF PERSONAL SELLING
The golden rule of personal selling should apply to more than just the salespeople. It should also
apply to all other aspects of the business like marketing. It is important to know and understand that
ethics should rule an organisation. The golden rule and ethical behaviour therefore means treating
others fairly and truthfully.
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 40 of 168
3.11 CONCLUSION
People in an organisation have to make ethical decisions on a daily basis. Many things can influence
an employee to behave unethically but an organisation can set ethical guidelines in order for
employees to act ethically. Ethical behaviour is especially important between the organisation, its
employees and the customer
Revision Exercises (Remember the answers are at the back of the learner guide)
1) Which of the following is incorrect in terms of examples of common ethical problems
sales personnel face?
a. Bribes, misrepresentation, price discrimination
b. Bribes, exclusive dealership, sales restrictions & price discrimination
c. Tie-in sales, Bribes, joint ventures, reciprocity & sales restrictions
d. Misrepresentation, price discrimination & exclusive dealership
2) In your own words explain the following terms mean, as well as use an example to show
your understanding
a. Price discrimination
b. Reciprocity
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 41 of 168
Part 2: Preparation for
relationship selling
Study Unit 4: The Psychology
of Selling
In this study unit we explain the differences between a feature, advantage and a benefit of a product
and why people will buy benefits rather than features or advantages. We will also be looking at the
techniques for determining a customer’s needs, the factors that influence the customer’s buying
decision and show why buying is a choice decision. A SELL sequence will be constructed in order to
know when and how to use a trail close.
“If you do build a great experience, customers tell
each other about that. Word of mouth is very
powerful”
Jeff Bezos
CEO of Amazon.com
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 42 of 168
LEARNING OUTCOMES
After completing this chapter you should be able to:
Explain the differences between a feature, advantage and a benefit
Construct a SELL sequence
Know when and how to use a trial close
Explain why people buy benefits rather that features or advantages
Enumerate techniques for determining a customer’s needs
List factors that influence the customer’s buying decision
Show why buying is a choice decision
4.1 INTRODUCTION
There are many different reasons why a potential customer would decide to buy a specific product. It
is therefore important for a salesperson to understand the thought process to determine the approach
necessary to make a sale.
A salesperson can follow guidelines to ensure the maximisation to a successful outcome. When
attempting to make a sale, the salesperson should be aware of the buying decision, technological
developments and information as well as how satisfied customers respond.
4.2 GOLDEN RULE: BENEFITS
When selling, an employee should understand the psychology behind the reasons why people buy
and the benefits which can be gained. It is important to remember that customers depend on the
seller to tell the truth. Remember that a customer wants to trust you as a salesperson.
Ethical behaviour and ethical service builds a relationship with customers based on the truth. Ethical
behaviour and the truth would mean that the salesperson should be doing the right thing even if it
means that no sale will be made. It would be better to be honest with regards to the functions of the
equipment that you sell, instead of trying to convince a customer to purchase it, whether he needs it
or not.
4.3 WHY PEOPLE BUY
Salespeople want to understand more about how customers make their decision to buy or not to buy
a product. The customer makes the decision based upon an internalised thought process. This
thought process is sometimes referred to as a black box because we cannot see into the buyers mind
and thought process. For example, a customer looks interested and says it is the best product he/she
has ever seen but despite this, still decides not to buy the product. The salesperson needs to
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 43 of 168
understand more about the decisions a customer makes. Salespeople have been looking for the
answers and trying to understand as much as they can about customer responses.
Figure 1.3: The black box approach (Futrell.M. 2014)
Revision Question 16
Briefly explain the black box approach, by using a practical example to show your understanding
4.4 PSYCHOLOGICAL BUYING
There are many psychological methods a salesperson can use to maximise the influence on the
customer or buyer. These would include motivation for buying, best value for money and awareness
of needs. The salesperson should be aware of these motivations for buying, perceptions, attitudes
and personality that might influence the purchasing decision. The salesperson needs to create almost
a necessity for the product when presenting it to the customer which satisfies their needs.
A need can be described as a lack of something that is desired, while a want can be described as a
customer that would like to have something in addition to needs. A person who has to get from Cape
Town to Maputo needs transport but the person probably wants a BMW to ensure comfort.
There is, however, something called economic needs. An economic need would mean that the
product satisfies the customer in more ways than one. This product would include quality and
convenience of service.
The buying decision can be complicated by their need of awareness; the 3 levels of awareness have
been identified below:
Conscious: A customer would be fully aware of his/her needs and also know exactly what product
he/she wants to buy. This customer wants a 42” 3D LED Samsung television.
Preconscious: On this level, the customer is not fully aware of what he/she wants to buy. The
customer is open to discussion and can be persuaded. This customer wants a 42” television but is
unsure of the make. This could mean that the customer can be influenced to buy a Telefunken or LG.
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 44 of 168
Unconscious: A customer on this level is not sure if and why they would buy but despite this would
still buy a product if persuaded. This customer has a television at home and does not need a
television but if a salesperson convinces that the Hi-Sense is the best television, the customer will
buy it.
The diagram below, recreated from Stokes (2008), shows the different levels of products to better
illustrate the product benefits at each level when a salesperson
persuades a customer to buy a product. A core benefit is the basic
benefit that the product will give a customer. The actual product is
the benefit that a customer would expect from the product. The
augmented product has some benefits in addition to the product
which adds value and makes the sale of the product easier.
Revision Question 17
Name a characteristic of a person who is on the conscious level of awareness.
4.5 FABULOUS APPROACH TO BUYER NEED
The additional benefit of a product, or the augmented product, is used by salespeople to ease the
sales process. This is called benefit selling and is one of the most powerful selling techniques. This
method of selling is sometimes referred to as the FAB selling technique.
Organisations train their salespeople on the products features, advantages and benefits in order for
them to sell the product with more confidence and success
Revision Question 18
Explain the difference between feature, advantage and a benefit, in terms of using a car as a practical
example
4.6 DETERMINING IMPORTANT BUYING NEEDS
In order to be successful in sales, the salesperson has to understand the needs that the buyer might
have in order to emphasise the product benefits which would fit the needs of the customer. When a
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 45 of 168
salesperson sells clothing to a store that still has a lot of stock and the manager is worried about the
quality of the material, focus on the quality of material in the sales presentation instead of delivery
time. To better understand the customers buying need, a salesperson can use the LOCATE method.
L – Listen to customers as they will give clues to exactly what it is that they want and need. The
clothing store will make it clear that they want the best quality material for example.
O – Observe the customers body language and reactions when proposals are made, this can also
give clues.
C – Combine all the question, answers, customer’s views and what you have heard to gain a bigger
picture of how to satisfy the needs of the customer.
A – Ask questions to learn more about the needs of the customer. What do they need in addition to
the product? What benefits do they want from the product?
T – Talk to others to gain insight into whether the customer is happy or not. For example, ask the
secretary whether they are happy with the copy machine that the manager bought as the secretary is
the one using it daily.
E – Emphasise the customer’s needs by looking at the situation from the customer’s point of view.
By using the LOCATE method, the salesperson can use these results to match the customers’ needs
to the product benefits. This can also be shown to the customer to prove that the product will satisfy
his/her needs. Asking questions is one way of uncovering needs which is referred to as a trial close.
A trail close is discussed in more detail in the next section.
4.7 THE TRIAL CLOSE
The trial close is that question salespeople ask you in the middle of their presentation or phone call.
Typical questions are:
“This is a good offer, isn’t it?”
“Wouldn’t you like to own this product?”
“Do you like what you hear?”
When asking the trial close question, the salesperson is only asking the customers opinion on the
product.
It is important to understand that the trial close is only asking the prospective customers opinion, not
to make a decision to buy. Recall the positive reactions and show how negative reactions are
changed into positive ideas but do not discuss.
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 46 of 168
Revision Question 19
What does a trial close mean and give an example?
4.8 SELL SEQUENCE
The SELL sequence should be followed when a salesperson sells a product or service to a
prospective customer. When the sales presentation is complete, the salesperson should listen to
what the customer has to say. If the customer has positive feedback, the salesperson would know
that he/she is on track in order to make the sale.
Consider the following example to understand the selling sequence better. Building equipment sold is
made of stainless steel (feature) and won’t rust (advantage). The real benefit is that it reduces your
replacement costs, thus saving you money (benefit). That’s what you are interested in it-right? (trial
close)?
Revision Question 20
Name the four steps that can be used to incorporate the sell sequence into the trial close
4.9 CLASSIFYING BUYING SITUATIONS
The salesperson should analyse the situation that he is in. An example can be the difference between
buying bread and buying a car. A customer would much easier buy bread than a car. When a
customer buys a car, the process of selecting, organising and interpreting becomes more intense and
difficult mainly because of the price and as it is a long term decision. Most people would compare
information on different brands before making a decision to buy. A buying situation can be classified
into three different categories as different situations occur being Routine decision making, limited
decision making & extensive decision making
.
Figure 1.4: Decision making (Futrell.M. 2014)
The challenge from a salesperson’s perspective it to equip a customer with the necessary information
and knowledge to understand how a product will satisfy his/her needs. A good way of understanding
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 47 of 168
a customer’s decision is to determine the customer’s decision making process to better understand
why the customer would accept or decline the offer.
Revision Question 21
Name an example of a product on the extensive decision making category?
4.10 BUYERS AS DECISION MAKERS
Due to this massive exposure to the internet and other continually expanding technology, customers
can gain information on many products quickly which influences the buyer’s decision making. A
potential customer who is interested in buying a personal computer will have to go through the five
basic steps of decision making in order to buy the product that best suite his/her needs.
Purchase dissonance, which is the tension over whether the right decision was made, might occur
after a purchase. A salesperson can help lower the purchase dissonance by:
Showing the customer how to use the product
Be realistic in the claims made about the product as it can create
dissatisfaction. Do not say that the vacuum cleaner can lift a brick if it
cannot even pick up hair from a carpet.
Reinforce a buyer’s decision by reminding, persuading and influencing.
After sales service is very important in this regard as the salesperson
should ensure no problems exist.
Revision Question 22
What are the 5 basic steps in the decision making process, explain using the practical example of
buying a car?
4.11 SATISFIED CUSTOMERS
It seems like many people and organisations forget this very important sentence:
An existing customer is easier to sell to than a new prospective customer. This is
the main reason why after sales service is one of the most important aspects of
selling a product or service.
When selling a telephone to a customer, it may take a while to explain how the telephone works and
what different functions it has. But when that customer returns to buy 20 additional phones for the
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 48 of 168
rest of the office, the sale is much easier as the customer already understands how the telephone
works. Missing out on the sale of 20 additional telephones just because there was not any after sales
service to satisfy the customer would be a huge loss to the company.
4.12 A CHOICE DECISION
A salesperson does not need to be a psychiatrist to understand how a potential customer makes
decisions. Something that would be to the benefit of a salesperson, however, is to understand the
factors which can influence a customer’s decisions. A salesperson can make use of questions to
develop a sales presentation to ensure that it will satisfy the customer. By answering the question a
salesperson would understand how the customer makes the decision to buy or not to buy. The
following are some of the questions.
What type of product is desired? - The salesperson and organisation might see a gap in the
market. A gap in the market means that there is a demand for the product because similar
products do not have the same features.
What type of buying situation is this? - If this is an expensive product, a customer needs a lot
of information to make a decision. The salesperson needs to understand that his/her
presentation must include all relevant information.
How will products be used? - If this product is used every day, it is important to emphasise
that fact that it is very reliable.
Who is involved in the buying decision? - If it is PlayStation 3 console that the salesperson is
selling, you can almost be sure that the children will be part of the purchasing decision. It
should be noted and incorporated to ensure that the children also understand the
presentation.
Finally, the most important factors that should be understood are what the customer needs in order to
make the final buying decision:
They perceive a problem or need. If there is no need, there will be no sale, as easy as that.
Desire to fulfil need. The salesperson can create a need in the mind of a customer but if the
customer does not desire to fulfil the need, the customer will be unlikely to buy the product.
If the customers realise that the product will be able to satisfy their needs better than any of
the competitor’s products.
If there is a will to buy the product specifically from you as a salesperson. This could be due to
a special or additional value to the product.
The customer should have the resources and authority to buy the product. A 10 year old child
would have to be accompanied by his/her parents in order to buy a product.
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 49 of 168
Revision Question 21
What does a potential customer need in order to make the final buying decision?
4.13 CONCLUSION
Approaching a customer could be followed in a certain sequence and with certain actions to
maximise the success of the sale. This chapter gave guidelines on how to interpret the way
customers make buying decisions and how to act to ensure satisfaction. Remember that technology
can be used to the benefit of the customer and the salesperson in a sales situation.
Revision Exercises (Remember the answers are at the back of the learner guide)
1) The correct order of the consumer buying decision process is as follows:
a. Need arousal, collection of information, information evaluation, purchase decision, post
purchase behaviour
b. Information evaluation, need arousal, post purchase behaviour, collection of information,
purchase decision
c. Need arousal, collection of information, information evaluation, post purchase behaviour,
purchase decision
d. Collection of information, information evaluation, need arousal, purchase decision, post
purchase behaviour
2) The term FAB selling techniques stands for:
a. Function, advantage, benefit
b. Feature, average, belief
c. Feature, advantage, benefit
d. Function, advantage, belief
3) In your own words explain the term dissonance and use a practical example to show
your understanding
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 50 of 168
Part 2: Preparation for
relationship selling
Study Unit 5: Communication
for Relationship Building
In this study unit we will discuss the salesperson-buyer communication process to determine a
person’s personality type and ways of developing persuasive communication. We will also be looking
at the importance of nonverbal signals in order to define acceptance, caution, disagreement and
nonverbal signals of the buyer.
“Sales are contingent upon the attitude of the
salesman, not the attitude of the prospect”
W. Clement Stone
Author of The Other Side of the Mind
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 51 of 168
LEARNER GUIDE
After completing this chapter you should be able to:
Discuss the salesperson-buyer communication process
Determine a person’s personality type
Discuss the importance of nonverbal communication
Define acceptance, caution and disagreement of nonverbal signals
Explain ways of developing persuasive communication
5.1 INTRODUCTION
Communication is probably the most important factor when it comes to salespeople who should
convey their message about the product or service to the customer. When communicating with a
customer a salesperson should understand that each person is a potential customer who has his/her
own unique personality which should be acknowledged. The salesperson should adapt to this when
selling although it can be difficult to determine.
Salespeople should not only focus on verbal communication but understand and be able to identify
and interpret nonverbal communication as well. An understanding of persuasive communication is
also important and should be implemented as it might contribute to the success of a sale.
5.2 GOLDEN RULE: COMMUNICATION
As stated in the introduction, without communication a sales career would not exist. The rule on
communication is that a salesperson should note everything that a customer does in terms of verbal
and nonverbal communication. This is very important to the success in a sales situation.
5.3 IT TAKES TWO
Communication is mainly used to carry a message to the buyer. Do not forget what is equally
important is the communication from the buyer to the seller. The seller should facilitate the two way
conversation so that the customers can share their wants and needs specific to the product or
service.
To better understand the process and elements of communication, consider the following diagram
and the explanation that follows.
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 52 of 168
Figure 1.5 Communication process (Futrell.M. 2014)
Gibson (1997) describes communication as the transmitting of information and understanding, using
verbal or nonverbal symbols. Effective communication between the salesperson and the potential
customer and the result of a common understanding between them is most important.
In order for communication to take place, the communicator (salesperson) would send a message
through a medium (oral, advertisement etc.) to the receiver (potential customer).
An organisation wants to communicate the release of their new toothpaste with whitening properties
to their potential customers. The elements of communication are as follows:
Source: The salesperson is communicating the release of the new toothpaste.
Encoding process: The method the salesperson chooses to inform the potential customers about
the product, its features and concepts.
Message: The information must be conveyed to the potential customer through a presentation,
advertisement or other types of marketing methods.
Medium: A medium is the form of communication that was used for example words, body language,
visual material etc.
Decoding process: How the receiver perceives the information. For example, “It looks like that
toothpaste can actually work for whitening ones teeth”.
Receiver: Person the communication is intended, in other words, the potential customers.
Feedback: Feedback includes the reaction by the receiver to the communicator. This can be verbal
and nonverbal reactions.
Noise: Noise is factors that distort communication between buyer and seller – it can be physical
noise or it can be background noise. Sometimes it results in loss of focus in what the buyer/seller is
saying.
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 53 of 168
Revision Question 24
Name the elements of communication.
5.4 CONSIDER THE BUYER’S PERSONALITY
The personality of a buyer or potential customer should also be acknowledged in a selling situation as
it affects the buying decision. Personality has an influence on perceptions, attitudes, beliefs and
therefore, buying behaviour.
The best way to examine a customer’s personality is to understand how the customers view
themselves. The following four are images that can be reflected from the self-concept.
Real self: This is the true personality of a person.
Self-image: How the person sees himself/herself or his personality.
Ideal self: Who this person would like to be in terms of personality.
Looking-glass self: How this person thinks others regard him.
The salesperson should attempt to understand the self-concept to better understand the customer’s
reasons for buying or not buying. If a customer does not want to buy a product based on his/her true
self, the customer might buy because of the ideal self. Brand new upcoming electronic products like a
new 70” LED 3D television should be marketed to customer’s ideal self because it would be more of a
status symbol that what the customer really wants.
Revision Question 25
What does ideal-self mean?
5.5 ADAPTIVE SELLING
Adaptive selling comes into play when a salesperson uncovers more about a potential customer’s
personality which can be used as an advantage to sell the product. The uncovering of personality will
influence the sale dramatically. A salesperson needs to adapt his/her presentation to the customers
buying style. The following are some buying styles that customers can fall in.
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 54 of 168
Thinker Style: Places value on logic, ideas and order. The salesperson should adapt the
presentation to follow a logical order with facts of the product.
Intuitor: Places value on ideas, innovation, new concepts, theory and long range thinking. For this
customer, the presentation should illustrate how the product is new and exciting as well as how it is
different to others.
Feeler: Places value on being people oriented and sensitive to people’s needs. This presentation
should be focused on what the customer wants and not what is on offer.
Sensor: Places value on action. This presentation should be brief and to the point. This customer
would be bored if the presentation is too long and has too many facts.
Determining the specific style that a customer has can be difficult for a salesperson. One style will be
dominant although all could be present. A customer can also have a personal style which is a mixture
of the four different styles. It requires a salesperson to isolate the dominant style of a customer.
Revision Question 26
Which buying style will a customer have when he/she wants everything in an organised order?
5.6 NONVERBAL COMMUNICATION
The Business Dictionary (2013) describes nonverbal communication as behaviour excluding words
that transmit meaning. It can include pitch, speed, tone, volume of voice, gestures, facial expressions,
body posture, eye movement and many more. These types of nonverbal communication reveal
hidden feelings about the topic at hand. People use four major communication channels:
Concept of space
This refers to the personal space around a person that strangers may not enter. When violated, it can
create a barrier in communication. This can also be referred to as ‘broken into intimate space’ or
‘personal space’. Defence barriers defend against space invaders.
Appearance
A salespersons appearance is also important in a sales position as it portrays a picture of the
products and services that are offered. After space, this is the next medium of nonverbal
communication. The following are example of appearance: style hair carefully & dress professionally
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 55 of 168
Communication through handshake
It is said that a person’s handshake tells a story of a person’s character. Shake a customer’s hand
firmly and look them in the eye when greeting.
Body language
Body language can also tell a person something about how another person feels. There are three
broad messages that can be sent through body language.
Acceptance signals
Caution signals
Disagreement signals
With these broad messages in mind, a salesperson ought to:
Recognise nonverbal signals.
Interpret these signals correctly.
Be able to alter strategy as a customer’s body language changes.
Respond with verbal and nonverbal communication.
Revision Question 27
Name different messages of body language a salesperson can use to interpret how a customer
feels.
5.7 PERSUASIVE COMMUNICATION
According to The Free Dictionary (2013), persuasion is a process aimed at changing a person’s
attitude or behaviour towards something by means of written, spoken and nonverbal communication.
Probing is a method of seeking and uncovering information about customers’ needs by asking one or
more questions. These two elements should be used as a way to keep and maintain control of the
buying situation.
An aspect just as important as persuasion and probing is listening and hearing what a customer has
to say. There are three levels of listening:
Marginal: Marginal listening is the first and lowest level involved in communication. A typical listener
can easily be distracted by his/her own thoughts.
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 56 of 168
Evaluate: This requires more concentration and attention to the speaker’s words.
Active: An active listener is the third and most effective level of listening.
Technology, attitude and enthusiasm are three more elements that can make a difference in
persuading a customer. These can be used to prove credibility in the statements that are made in a
sales presentation.
5.8 CONCLUSION
There are certain factors that can influence the communication between a
salesperson and a customer. It is important for a salesperson to understand
how a message is carried across to the customer. The salesperson should
also consider a buyers personality and adapt the sales method to the
customer.
Nonverbal communication will also play a role in understanding a
customer’s needs when selling a product. Lastly, persuasive selling is just as important to complete
the sale.
Revision Exercises 5(Remember the answers are at the back of the learner guide)
1) Which of the below are examples of non-verbal communication are the following:
a. Physical space, handshake, appearance & body movement
b. Handshake, shouting, physical space & body movement
c. Physical space, shouting, whispering & body movement
d. Physical space, handshake, whisper & body movement
2) Which of the following is false? Active listening is
a. A skill that takes practice
b. Is based on courtesy and concentration
c. Involves the salesperson having to learn to listen
d. Is listening whilst doing exercise
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 57 of 168
Part 2: Preparation for
relationship selling
Study Unit 6: Sales Knowledge
It is important for a salesperson to illustrate the knowledge of a product during the sales presentation
and transfer as much knowledge over to the customer. We will also look at the knowledge needed to
increase the sales success and the main technologies used by salespeople to archive this.
“In business, honesty is absolutely essential. The
best principle is under promise and over deliver”
Richard Denny
Commodity Trader
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 58 of 168
LEARNING OUTCOMES
After completing this chapter you should be able to:
Explain why it is so important to be knowledgeable
Discuss the major body of knowledge needed for increased sales success
Illustrate how to use this knowledge during the sales presentation
Explain the main technologies used by salespeople
6.1 INTRODUCTION
In this chapter of the prescribed book, the author wants the student to understand how important it is
to obtain and use different types of knowledge to your advantage. There are different sources where
knowledge can be obtained. These sources can be categorised into: knowledge to build relationships,
knowledge about customers, knowledge about products, knowledge of competitors and knowledge of
technology.
Using the obtained knowledge a salesperson should be able to use it to increase sales successfully
by illustrating it during a sales presentation. Advertising and sales promotion can aid a salesperson
and technology can also influence the sales success.
6.2 GOLDEN RULE: KNOWLEDGE
A salesperson should know everything about the product that he sells to the customer. The customer
will rely on the salesperson to share the true information. This is why integrity and character is
required to build long term relationships.
When a salesperson sells car parts, the customer will expect the salesperson to know what the part
looks like and what it is used for. The customer expects the salesperson to share truthful information
about the product, which is correct and accurate, to ensure that the correct part is bought.
6.3 SOURCES OF SALES KNOWLEDGE
There are two main ways in which a salesperson would obtain knowledge about sales. These are:
Sales training
An organisation will usually provide sales training in order to ensure that the
salesperson knows enough to be successful in the sales process. According to
Salisbury (1998), sales training is a way of training people to identify buyers and
determine needs and wants to realise a profit16. Training a salesperson would
result in improved sales performance.
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 59 of 168
Experience
Experience is gained as a salesperson learns on-the-job. If a salesperson has
made thousands of sales, he/she would know exactly how to work with customers
to maximise success. Experience also improves the ability to show how buyers
perceive product or product lines.
By using these methods of obtaining a high level of sales knowledge, a salesperson can provide
excellent service which leads to the SSUCCESS acronym in chapter one.
Revision Question 28
Name the different ways in which a salesperson can obtain knowledge on how to sell products.
6.4 KNOWLEDGE BUILDS RELATIONSHIPS
A salesperson must be knowledgeable about the organisation, its products and the customer in order
to be effective in his/her job. There are three important reasons why a salesperson should have
knowledge. These three aspects will be explained as examples.
Example one
A salesperson’s self-confidence will increase because he/she will know a lot about the product and
organisation. The salesperson will know that there are not many questions that a customer will ask
which he/she cannot answer.
Example two
Salespeople should do all they can to build the buyers confidence in them, the organisation and its
products - especially the product in which the buyer is interested. When a salesperson builds buyer
confidence, it will also build the relationship between the two due to the trust involved.
Example three
A relationship can also be built through truly listening and hearing what the customer says. This will
increase sales because a customer feels that his/her needs are being addressed.
6.5 KNOW YOUR ORGANISATION
The knowledge a salesperson has of the selling organisation will be projected to the potential
customer. This can be used to help portray an expert image of the organisation, the product and the
salesperson (you). The knowledge of the organisation which a salesperson has will include: history,
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 60 of 168
policies, systems, promotional activities, pricing strategies and technology. This information would be
used in the sales presentation.
Revision Question 29
Provide 4 examples of possible company knowledge a salesperson can include in their sales
presentation
6.6 KNOW YOUR PRODUCT
One of the most important things that a salesperson needs to know and understand is the product
that he/she sells. This would also be applicable to competitor products. Many salespeople do not care
about competitor products because they feel threatened. Understanding the competitors’ products
can create a competitive advantage because the salesperson knows what benefit of the product to
focus on which the competitors product lacks. Product knowledge also includes the technical details
of the product.
It would be very embarrassing for a car salesman to sell a car that he/she knows nothing about.
Imagine a salesperson that does not know how to start the car but wants you to buy it. It is for this
reason why all salespeople need to know their products. Many organisations let their salespeople
work in the warehouse to understand how the product is manufactured and gain product first-hand
knowledge which will be used in the sales presentation.
Salespeople will use product knowledge differently when selling a technical
product. The salespeople of technical products will spend more time in
meetings discussing the product information than working on a sales technique
as the customer will be more interested in the aspects of a technical product.
Revision Question 30
What are the categories of typical product questions a customer would ask?
6.7 KNOW YOUR RESELLERS
It is also important for a salesperson to understand the distribution channel and the channel members
of the organisation. Consider the figure of a typical distribution channel below. The role players would
be the producer, wholesaler, retailer and the customer.
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 61 of 168
Figure 1.6 Distribution channels, Web Books (2013)
A salesperson must be aware of changes in the distribution channel as the salesperson could
typically be between each of these role players in the distribution channel.
Revision Question 31
Who are the role players in a distribution channel and provide an example of each of them
6.8 ADVERTISING AIDS SALESPEOPLE
A firm will use the factors of the marketing mix to assist with the sale of a product. The marketing
managers of Ford can ask the sales force to increase sales in April and
May through a special as well as simultaneously advertising on television
and in magazines. The salesperson should incorporate these marketing
decisions into the sales presentation. If a customer is interested in a
product, the salesperson should inform the customer of the current
specials. There are six basic types of advertising programs that an
organisation can use to influence the customer, refer to your prescribed textbook for a detailed
explanation of each.
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 62 of 168
Revision Question 32
Briefly explain the six basic types of advertising programs that an organisation can use to get
through to the customer?
6.9 PROMOTION GENERATES SALES
Sales promotions include personal selling, advertising and publicity. An example of consumer sales
promotion is free samples of products, coupons and demonstrations. A trade sales promotion
encourages resellers (wholesalers and retailers) to purchase the product and aggressively sell it.
These products are displayed in an eye catching place in store or sold at a special. POS (Point Of
Sale) displays allow products to be seen and purchased. Chocolates and sweets would usually be
displayed at POS.
Shelf positioning can also be used to emphasise some products by physically placing the products
next to each other in the store. These will be products of the same nature like Rama, Flora and Stork
margarines placed next to one another on the shelf. Shelf spacing is a major obstacle in any store
and brands have to compete for shelf space. A premium is an article of merchandise offered as an
incentive to buying a product.
6.10 PRICING YOUR PRODUCT
What is the product worth on the open market? A products price can be determined by
considering the satisfying attributes for which a customer is willing to exchange money
for the product. A Porsche is a product that turns heads. This product has been desired
by most people for years. When determining the price of the Porsche, we will realise that
customers will pay large amounts of money to acquire the product. This type of price
information will become a major part of the sales presentation.
Revision Question 33
How can a product price be determined?
6.11 KNOW YOUR COMPETITION
It is said that one should know your competition better than knowing yourself. The salesperson does
not only need to know the product, but the credit policy, price, features, functions etc. A salesperson
needs to prepare for the sales presentation in terms of comparing the product to the competitors’
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 63 of 168
products. The reason for this is that customers will always ask a salesperson how a product
compares to its competitors.
When a salesperson for MTN makes a sales presentation to a large African organisation, the
salesperson needs to know Vodacom’s products to regain ground when the organisation asks
whether MTN’s product can do what Vodacom product can do. Now salespeople do not have to
embarrass themselves because they cannot answer the question asked.
6.12 PERSONAL COMPUTERS
One way of gaining information on competitors quickly and effectively is by
means of computers and the internet. The salesperson can dramatically
increase productivity when using a computer, not only for research, but for
scheduling, planning etc. This could create a problem for non-technical
people as they would have a problem adjusting to this new technology.
Du Pont & Merch Pharmaceuticals, just like many other organisations, combated this problem by
using training programs that are humorous and easy to use.
6.13 TECHNOLOGY ENHANCES SALES
When salespeople know how to use technology to their advantage, it can positively enhance and
increase sales. Computers enable salespeople to provide top quality services by receiving and
sending information, increasing productivity and effectiveness and gathering information more
efficiently. The use of the internet has dramatically changed the way we do business from a personal
productivity, communications and order processing and customer service perspective
6.14 INTERNET
The internet is a salespersons best friend as it can provide endless
information and it is a great sales tool. Webopedia (2013) states that the
internet is a global network, connecting millions of computers in more
than 100 countries. Although many people think internet and the World
Wide Web (WWW) is the same thing, it is totally different concepts.
Webopedia (2013) also states that the WWW is a complete set of
documents on the internet which can be called the infrastructure of the internet.
Salespeople will use the internet and the WWW to create a web page where potential customers can
have a look at what the organisation has to offer, place orders and even buy and pay online. These
pages have a lot of benefits, like giving instant information to customers and help the salesperson sell
a product. Another term used is surfing which refers to visiting many pages on the WWW.
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 64 of 168
Revision Question 34
What is the difference between the internet and the World Wide Web?
6.15 GLOBAL TECHNOLOGY
In the world that we live today, it is important to gather accurate information as soon as possible at
the right place and the right time. A salesperson needs instant information in order to satisfy a
customer when they require additional information. If a customer asks the salesperson to place an
order or if the salesperson wants to show the customer the different products, he/she can go onto the
internet and easily do this.
As technology evolves, it also presents some new issues. An example is the growing need for data
storage, management and access.
6.16 TECHNOLOGY ETIQUETTE
Just like the sales etiquette that a salesperson needs when working with
customers, the same principles would apply when working on the internet.
According to Couldton (2000), Netiquette is a term used for etiquette on
the internet. An example that a salesperson would come across many
times per day, is sending an email. Netiquette should carefully be
implemented when wording an email as it can create a bad image when the salesperson doesn’t
focus on what was written.
There is a certain etiquette which should be implemented when talking on the phone as well. A bad
image can be portrayed when a salesperson speaks to somebody else while on the phone with a
customer. This is only one example of how salespeople can create a negative image of themselves
and the organisation. According to Golding (2000) there are some short and easy guidelines which a
salesperson can use to improve etiquette.
The person that you are talking to is the most important person.
You can use text or SMS to simplify your life.
Switch off your cell phone in meetings
Do not engage in cell yell which means shouting at somebody with whom you have a cell
phone conversation.
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 65 of 168
Revision Question 35
What does Netiquette mean?
6.17 CONCLUSION
In this chapter we learnt that sales knowledge is one of the most important aspects of a salespersons
presentation to their customers. There are many advantages that can be derived from the different
knowledge that can be gained.
Advertising and promotion are also some important aspects which can help a salesperson to get a
certain message across to the customers. Lastly, the salesperson should be aware of how
technological advance can change the way in which the salespersons job can change.
Revision Exercises 6 (Remember the answers are at the back of the learner guide)
1) Which of the following is not a sales promotion items?
a) Shelf Positioning & Shelf facings
b) POP displays
c) Sampling
d) Premium
2) Which of the following isn’t technical knowledge a sales person should know?
a) How the product operates
b) The exact date the product was manufactured
c) Performance data
d) How well the product is selling in the market place
3) List and briefly explain 5 ways in which technology assists in enhancing a salespersons
productivity
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 66 of 168
Part 3: The relationship selling
process
Study Unit 7: Prospecting
In this study unit we will be looking at why it is important to prospect and the various prospecting
methods needed to set up an appointment with prospect’s or customer. By defining the sales process
and asking for referrals during the referral cycle the salesperson can build up a customer base.
“You can’t build a reputation on what you’re going
to do”
Henry Ford
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 67 of 168
LEARNING OUTCOMES
After completing this chapter you should be able to:
Define the sales process, and list and describe its 10 steps
State why it is important to prospect
Describe the various prospecting methods
Ask for a referral anywhere during the referral cycle
Make an appointment with prospect or customer
7.1 INTRODUCTION
Understanding the way, when, where and how a salesperson should prospect is very important for
the sustainability of a salesperson an organisation. A sales process can be followed before
presenting the product to a customer. A salesperson should be planning a prospecting strategy by
using prospecting methods, guidelines and the referral cycle to achieve success for the future. The
aim is to obtain as many sales interviews as possible.
7.2 GOLDEN RULE: PROSPECTING
Customers can be separated into two categories namely: new customers and repeat customers.
Without repeat customers, a salesperson would need to locate individuals who have the resources,
authority and desire to purchase a product from the salesperson. In order to do this, the salesperson
needs to build new relationships with these customers which could be costly.
A salesperson can obtain new customers through referrals from existing customers. A customer will
divulge referral information when the salesperson demonstrates integrity, trustworthiness and a good
character. When one of these characteristics lack, the chances are that no referrals will be gained by
existing customers. You will not give your loved-ones numbers to a person that you do not trust. A
salesperson can gain new customers when he/she delivers an ethical service and builds relationships
based on trust.
Revision Question 36
What are the two main categories of prospecting?
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 68 of 168
7.3 SALES PROCESS
When a salesperson needs to make a presentation, he/she should ensure that it is
done in a sequential series of actions. If these series of actions or steps are followed,
the chances of making the sales will increase dramatically.
The sales process involves 10 steps. Before the sales presentation, a salesperson
needs to go over the actions or activities to be carried out. This will be disdcussed in the next section.
7.4 SALES PRESENTATION
The first step of making a sale would be for a salesperson to obtain an opportunity to present a sales
presentation to a potential customer. The salesperson should prepare his sales presentation the day
before meeting the customer. A salesperson can be compared to a lawyer who needs to prepare for
his/her case before presenting it to a judge.
The rule of thumb with regards to setting up and presenting the presentation is that 20% of the work
lies with the presentation itself, 40% is preparation and the other 40% is following up after the sales
presentation. It is clear that the statement, “nothing happens until someone sells something” made in
chapter 1, is still applicable.
7.5 THE LIFEBLOOD OF SELLING
As stated above, the first step in the selling process is prospecting. A prospect is
the person who has the potential to buy a product that the salesperson wants to
sell. The reason why this book states that prospecting is the lifeblood of selling is
because of the fact that without continuously prospecting and gaining customers, a
salesperson would not be able to survive in the continually changing environment.
There are two main reasons why salespeople would look for new prospects. These are:
To increase sales
To replace customers who are lost over time.
A lead is the terminology used for a prospective customer. Lefton (1987) stated that once a lead has
been qualified, the lead will become a prospective customer. After a lead has been realised and
turned into a prospect, the salesperson needs to create a desire for the product.
As illustrated in the book, a sales prospect will be funnelled and filtered with all the other possible
prospects in order to realise a qualified prospect. The sales funnel approach is a straightforward one
according to Connet, Abratt & Cant (2010:37), leads are fed into the sales funnel, which is the
metaphor for the start of the personal selling process, these leads are given an basic “once over” to
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 69 of 168
establish that they are at least suspected of being potential prospects, the qualifying phase converts
the suspects into prospects. Ultimately the objective and the last phase is to convert these prospects
into customers
Diagram from Connet et al (2010)
Revision Question 37
Name the two main reasons why salespeople look for new prospects?
7.6 LEAKING BUCKET CONCEPT
The leaking bucket concept is a representation of a salesperson that needs
to find new customers or sell more products to existing customers. To keep
the customer ‘bucket’ full at all times, the salesperson would need to
continuously search for new customers. It is a normal occurrence for a
salesperson to find and lose customers each year. The important thing is to
keep the loss to a minimum. This is called the leaking bucket concept. New customers will come in at
the top of the bucket and old customers will leave at the bottom.
Selling to a known satisfied customer is much easier that selling to a new customer. The cost
involved in the selling is also much lower than acquiring a new customer. Customer retention is
therefore very important to save costs. Customer retention saves time and money.
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 70 of 168
Revision Question 38
What does the leaking bucket concept mean?
7.7 PROSPECTING STRATEGY
A prospecting strategy should be planned very carefully before a prospect is approached to ensure
that the salesperson will look and sound professional. First impressions count. In general,
salespeople prefer working with customers who have similar characteristics as themselves.
Prospecting is a skill which should constantly be improved as a salesperson gains experience.
According to Brady (1987), successful salespeople continually evaluate prospecting methods by
comparing results in order to formulate a prospecting strategy which will maximise success.
Xerox asks their sales force to use a portion of each working day to find and contact new prospects.
By doing this, Xerox ensures new customers will constantly be added into ‘the leaking bucket’ which
is essential for sustainability over the long term. Some organisations rely entirely on contacting new
customer daily.
7.8 PROSPECTING METHODS
As stated before, selling is the lifeblood of a salesperson. The following are 13 of the most popular
prospecting methods.
Prospecting methods
E-Prospecting Public exhibitions and demonstrations
Cold canvassing Centre of influence
Endless Chain Customer referral Direct mail
Orphaned Customers Telephone and telemarketing
Sales Lead Clubs Observation
Prospect lists Networking
Getting published
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 71 of 168
Revision Question 39
Name and explain 5 prospecting methods?
7.9 PROSPECTING GUIDELINES
There are some guidelines that a salesperson can follow but here is no optimal mode of prospecting
to fit all situations but generalisations can be made. There are three criteria that a salesperson should
use in developing the best prospecting method.
Customise prospecting method so that it fits the needs of the individual.
Concentrate on high potential customers first and only thereafter go on the lower potential
prospects.
Always follow up on customers who decided not to buy.
A salesperson can use a prospect pool in order to group prospects. According to Krammick (1994), a
prospect group is a group of names gathered, which is usually created from four main sources: leads,
referrals, orphans and customers
Most salespeople would prefer not to cold call their customers but rather use referrals and orphans.
The secret to reaching this goal is through the referral cycle.
Revision Question 40
From which sources can a group of prospective customers be gained?
7.10 REFERRAL CYCLE
Obtaining referrals is a continual process for a salesperson. The
referral cycle provides guidelines for a salesperson to ask his/her
customers for referrals at the correct time. Selling a product to a customer and obtaining
a referral from a customer or prospective customer is known as a parallel referral sale as two
objectives have been fulfilled
Although a lot of customers would not like to be asked for referrals, it can greatly improve a person’s
sales. If a salesperson decides to ask his/her customers for referrals, the salesperson would have to
know how and when to ask for it.
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 72 of 168
The pre-approach: Effectiveness of approach will be the deciding factor as a customer could put the
phone down while asking for referrals.
The presentation: This is the opportunity to influence a customer to give referrals. A salesperson
could present the desire to get referrals at this stage. If a customer agrees, the referral cycle would
actually begin.
Product delivery: The product delivery phase is more obvious in some products than others. The
delivery of life insurance will be less visible to the customer that the ‘delivery’ of a house that was
bought through a real estate agent. Most customers feel better when a salesperson ask for referrals
at the product delivery stage as they know that they can refer a great product.
Service & Follow up: The Business dictionary (2013) defines customer service as the interaction
between a customer and a salesperson at the time of sale and thereafter. In this phase of the referral
cycle, a salesperson has an on-going opportunity to ask for referrals. At this stage a salesperson can
almost informally ask for referrals as the trust have been built between the customer and
salesperson. A customer will know that he is doing his/her friends and family a favour by referring.
Do not mistreat the referrals
A salesperson that mistreats and abuses referrals can lose an important point of references.
Revision Question 41
List 4 reasons why many salespeople not ask for referrals?
7.11 RELUCTANCE COST
All salespeople can be reluctant to call customers from time to time. A typical reason can be if a
salesperson is too busy to get to all his/her customers. This is sometimes referred to as call
reluctance. This can cost a salesperson a lot of money as the customer can find another organisation
that will provide a similar product.
7.12 SALES INTERVIEW
Whether a salesperson needs to do the sales presentation over the phone, Skype or in person, the
key question is how the salesperson can obtain an interview. There are some benefits that a
salesperson can derive from making an appointment with a customer.
Telephone appointment: When making an appointment via telephone, cost and time can be saved
although it is more difficult to obtain a sales interview.
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 73 of 168
Personally making an appointment: When personally making an appointment for a sales
presentation, the following is important to remember:
Believe in yourself
Develop friends in the prospects organisation
Make an appointment at the right time with the correct person
Do not waste time waiting to make an appointment
7.13 WIRELESS EMAIL
These days, email is a very effective way of communicating with
customers. Wireless internet and wireless devices are relatively
new technology which assists a salesperson to keep connected
with customers permanently. Imagine how a salesperson struggled to make appointments, contacting
and following up with customers before email and cell phones existed. At least today a salesperson
has a cell phone capable of receiving emails in order to keep in contact with customers.
HP always equips their salespeople and representatives with the best mobile equipment in order for
them to keep in contact with customers and the office.
7.14 CONCLUSION
Understanding the sales process is probably one of the most important elements of selling that a
salesperson should know. Prospecting, as a part of the sales process is the life blood of selling from
which a salesperson can derive many benefits for the prospective customer, salesperson and the
organisation.
The salesperson will need to plan, find and use guidelines to prospecting. The referral cycle is also
important to ensure the future sales of the salesperson. Today, all these aspects are much easier for
salespeople due to technological advances.
Revision Exercises 7 (Remember the answers are at the back of the learner guide)
1) Which of the following options isn’t considered to be a prospecting method?
a. Cold canvassing, public exhibitions and networking
b. Endless chain customer referrals, observation and networking
c. Centre of influence, endless chain referrals and direct mail
d. Cold canvassing, repeat business, observation and direct mail
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 74 of 168
2) A prospect pool is a group of names gathered from various sources, the 4 main sources
are:
a. Leads, referrals, orphans and competitors
b. Referrals, your customers, leads and cold calling lists
c. Leads, customers, referrals and orphans
d. Competitors, leads, referrals and orphans
3. List and briefly explain 3 questions that you could ask to help you determine if an
organisation/individual is a qualified prospect
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 75 of 168
Part 3: The relationship selling
process
Study Unit 8: Planning the
Sales Call
In this study unit we will explain the importance of the sales call, list the four planning steps and
understand them. In addition to this the prospect’s five mental steps of buying can be analysed in
order to create a customer development plan. These aspects will contribute to the success of a
salesperson.
“If you fail to plan, you plan to fail.”
Benjamin Franklin
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 76 of 168
LEARNING OUTCOMES
After completing this chapter you should be able to:
Explain the importance of sales call planning
List the four planning steps in order and understand them
Develop a customer development plan
Describe the prospect’s five mental steps in buying
8.1 INTRODUCTION
According to Investor words (2013), planning is the process of setting goals, developing strategies as
well as scheduling tasks to accomplish goals. Planning is also one of salespersons most important
tools, especially when he/she has many customers. Sales planning can help a salesperson in more
way than one, of which the most important is providing a strategic direction.
8.2 GOLDEN RULE: PLANING
Together with the other golden rules of sales management, planning is unique because unlike the
other golden rules, it needs to be attended to long before contacting the prospective customer. The
purpose of planning is basically to list plans, goals and objectives to ensure that the salesperson
knows what needs to be done before speaking to the potential customer.
A salesperson should plan ahead but focus on today and today’s customers. The way in which a
salesperson thinks, acts and what he/she accomplishes will affect the future.
The foundation of a plan must be based on the truth. With purpose comes a plan and with a plan
comes success. But then how can we define success? According to the Business Dictionary (2013),
success is the achievement of something planned.
Unfortunately, planning will not always pan out as expected. There are many reasons why the
planning, that a salesperson did prior to meeting with the customer, will not work out. But a
salesperson can try to do his/her best by showing integrity and trustworthiness. This means that a
salesperson will place others needs before his/her self-concentrated needs. Many people do not trust
a salesperson. The salespeople, however, can create a
bridge between themselves and the customer in order to
create a long term relationship.
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 77 of 168
8.3 STRATEGIC CUSTOMER SALES PLANNING
High performance salespeople tend to be strategic problem solvers, mostly because of their planning
ability. The Business Dictionary (2013) defines strategic planning as a systematic process of
envisioning the future by setting goals. In short a strategic problem solver would mean a strategy that
was well planned long in advance. These salespeople have skills and knowledge in order to:
Uncover customer strategic needs by gaining knowledge of customer’s organisation.
Develop solutions to address customer needs.
Arrive at a mutually beneficial agreement
Strategic Needs: Salespeople who understand the needs of customers are in a better position to
provide efficient and effective problem solving.
Creative Solutions: A salesperson faced with a specific and unique set of problems to solve should
have the ability to provide a customer solution since each individual customer is critical. A
salesperson should be a creative problem solver.
Mutually Beneficial Agreement: A mutually beneficial agreement basically means a ‘win-win’
situation between the salesperson and the customer. To create this ‘win-win’ situation, a salesperson
and customer needs to work together to develop a common understanding of the issues and
challenges at hand.
THE CUSTOMER RELATIONSHIP MODEL
The customer relationship model brings all the elements of consultative selling together in order for
the salesperson and the customer to reach goals.
Reasons for Planning the Sales Call: planning for the sales call is the key to success for the
following four reasons: planning builds self-confidence, develops an atmosphere of goodwill between
the salesperson and customer, reflects professionalism and increases sales because a salesperson
understands the buyer’s needs
Elements of Sales Call Planning
There are four components of sales call planning (4 D’s)
Determine the sales call objectives
Develop customer profile
Develop customer benefits
Develop a sales presentation
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 78 of 168
Revision Question 42
Name the ten steps of creating a strategic relationship with a customer?
8.4 PROSPECT’S MENTAL STAGES
During the sales presentation, a salesperson should consider the different stages that the customer
may be experiencing. The following are the different stages:
Figure 1.7 Mental stages (Futrell.M. 2014)
Attention: From the start of the presentation, right through to the end, a salesperson should hold the
full attention of the customer in order to develop interest in the product.
Interest: Determine the customers buying motive by capturing the interests.
Desire: Strive to transform a customer’s interest into a desire
Conviction: A customer might show interest in a product and even desire a product but still needs to
be convinced that the product is the best on the market for the customer’s specific need.
Purchase: Once the customer has shown interest, desire and is convinced that the product is the
best for his/her needs, the salesperson can make the decision to ask the customer whether he/she
would like to purchase.
Revision Question 42
Name the mental stages customers will go through while a salesperson is presenting a product?
8.5 CONCLUSION
In this chapter, emphasis is placed on the importance of planning, especially when working with
customers for whom the salesperson needs to make a sales presentation. Planning is done to ensure
success in the sales presentation and actual sale of the product through the strategic planning
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 79 of 168
process. It is also important for a salesperson to understand the steps of a prospects mental process
to better understand how to make a sale by interpreting the customer.
Revision Exercises 8 (Remember the answers are at the back of the learner guide)
1) Which of the following is not a reason to plan a sales call
a. It aids in building confidence
b. It reflects professionalism
c. It is part of the daily admin that needs to be completed by a salesperson
d. It generally increases sales as the salesperson better understands the buyer’s needs
2) A prospect goes through certain mental steps when being sold to, identify each of these
mental steps in order and give a practical example for each step to support your
explanation
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 80 of 168
Part 3: The relationship selling
process
Study Unit 9: Selecting Sales
Presentation
We will be looking at the different sales presentation methods, how to select a sales
presentation, selecting the approach and understanding how to give a presentation to a
group of prospects. By understanding why negations can be an important part of the
presentation you will be able to discuss the structure and content of a presentation based on
the parallel dimensions of selling.
“If you're a gifted flirt, talking about the price of
eggs will do as well as any other subject.”
Mignon McLaughlin
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 81 of 168
LEARNING OUTCOMES
After completing this chapter you should be able to:
State why you first select a sales presentation and then select the approach
Describe the different sales presentation methods
Better understand how to give a presentation to a group of prospects
Understand why negotiations can be an important part of the presentation
Be able to discuss the structure and content of a presentation based on the parallel
dimensions of selling
9.1 INTRODUCTION
A sales presentation can be very difficult if the salesperson does not prepare correctly. The
salesperson must understand and look a different presentation strategy and sales presentation
method to suit the customer’s needs. A salesperson should also be prepared for a group
presentation.
Some techniques should be used by the salesperson to ensure a ‘win-win’ situation between him/her
and the customer. One of these very effective strategies is negotiating the deal. Most salespeople
use technology to retain interest and the attention of the customer during the presentation. There are
many other general techniques which the salesperson can consider.
9.2 GOLDEN RULE: PRESENTATION
A salesperson needs the skills to adapt the sales presentation to the different types of prospects that
he may encounter. By presenting truthfully and honestly the prospect will feel that the salesperson
can be trusted.
Once the salesperson knows who the presentation is given to, he/she can select the best suited
presentation method which will improve the chances of success. It is therefore important for the
salesperson to master the art of delivering the presentation. With a great presentation, a salesperson
is able to solve customers’ problems, build relationships and improve lives all at the same time.
9.3 SALES PRESENTATION STRATEGY
It is absolutely important for the salesperson to understand that there are many different situations in
which a sales strategy will need to be adjusted. The following are some of the situations that a
salesperson might face.
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 82 of 168
Salesperson to buyer: This is a typical situation where a salesperson presents
his/her product to a customer, either over the phone or in person. This would be
selling a life policy to an individual.
Salesperson to buyer group: This will be when a salesperson is presenting to
a group of buyers. A salesperson will present to an organisation with a panel of
executives.
Sales team to buyer group: An organisation’s sales team will, consisting of a few people, present
their product to a group of buyers.
Conference selling: An organisation will send their employees to a customer in order to resolve a
problem or for a sales opportunity.
Seminar selling: Apple will conduct a seminar for an organisation (customers) relating to state of the
art technological developments.
Revision Question 44
Provide a brief explanation of what you understand about the term conference selling
9.4 SALES PRESENTATION METHOD
A method of presenting must be selected to explain the business proposition. There are many ways
of making a presentation of which this book will only be explaining four of the most prominent
methods.
Memorised Presentation - This presentation is focused on a quick single transact which will usually
be directed to a new customer. The salesperson will not usually have prior contact with the customer
and it will only take a few minutes.
This method of presentation should be used when a salesperson does not have a lot of time and
when the product presented is simple. A door to door salesperson selling fruit will fall into this
category.
Formula Presentation - The salesperson will have built a relationship with the customer through
repeat sales. This presentation will take approximately an hour, because it is a known customer.
When the need of the prospective customer has been determined, the formula presentation is the
best option.
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 83 of 168
Need Satisfaction Presentation - Here the relationship has moved over to more of a partnership. A
need satisfaction presentation will be the prefect method for industrial customers as well as
customers that the salesperson knows about. In other words, customers who a salesperson would
know well in terms of needs.
Problem Solution Presentation - Selling high cost technical products will need a problem solution
presentation as these customers will have problems which need solutions.
A careful decision must be made to decide which of these methods can be used because each may
lead to success if the method matches the situation. To help improve sales, the salesperson must
understand each of these methods and match the chosen method to a customer correctly.
Revision Question 45
Define a formula presentation?
9.5 GROUP PRESENTATION
When a salesperson presents a new filter to Sasol that they can use for their fuel at the fuel stations,
he/she will most probably be doing the presentation to many stakeholders within Sasol. This will also
mean that there is more than one decision maker in the group.
A group presentation will be less flexible than a one-on-one which means a more structured
presentation will be necessary. The ideal will be to involve all Sasol’s stakeholders in order to better
understand what is needed from the customer. While keeping the example of Sasol in mind, here are
a few steps a salesperson should accomplish in the beginning of a presentation.
Give a Proper Introduction: Give a brief history on the organisation, the filters, the proposal and
how the organisations filters can benefit Sasol.
Establish Credibility: Show Sasol the success rate of the filters in other industries or other
organisation. Present actual statistics and facts about the product.
Provide an Account List: Hand out a list of current customers to the stakeholders showing the
various sizes of filters and the types of organisations that use these filters.
State Your Competitive Advantage: Up front, the salesperson can explain where the organisation
stands relative to its competitors. No SWOT (Strengths, Weaknesses, Opportunities and Threats)
analysis is needed but instead just making it clear that the product is better than the competitors
product and why.
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 84 of 168
Quality Assurance - Get Sasol on your side by stating the guarantees and warrantees the filters will
come with.
Behaviour Styles - Referring back to Chapter 4, analyse the group of stakeholders to find the
dominant style in terms of the four behaviour styles. Once this style has been recognised, the
salesperson needs to quickly adapt to the stakeholders.
After these six steps have been addressed in the beginning of the presentation, it is time to involve
Sasol’s stakeholder in the presentation by asking each person’s input to the filter. It is very important
to list questions, doubts and general comments. Be prepared to answer all questions relating to the
filters to show that you know everything about your product.
A proposal document should be prepared to show a customer exactly what they will purchase. This
document should include everything the salesperson and potential customer discussed during the
presentation including questions, problems, success criteria, decision making and the answers to
each of these.
Do not include the price of the filter in the presentation as it could lead to people going straight to the
price without considering content, prejudice of non-decision makers as well as politics just to name a
few. Equally important is to show that you are not hiding the price.
Summarising the benefits will help the salesperson to show the stakeholders that there are many
benefits that can be realised when using this product and how it will solve some of their problems.
The benefits can be compared to the costs in order to support the reason for the product price.
Revision Question 46
List a few things a salesperson should accomplish in the beginning of the sales presentation?
9.6 NEGOTIATING: EVERYONE WINS
Many say that the second nature of a salesperson is negotiating. The reason for this is that a
salesperson should always be prepared to negotiate with the customers. Most salespeople negotiate
during the confirming phase of the sale. Typically, this is when the stakeholders of Sasol will say that
they are interested in the filter but the price is a bit too high. When negotiating, it is important to
remember that the negotiations can affect the business relationship.
There are different negotiation styles that will have a direct effect on the outcome of the negotiation
and the relationship. The salesperson should try to use a ‘win-win’ strategy in order for both parties to
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 85 of 168
‘win’ at the end of the negotiation. This will also mean a ‘win’ for the relationship after the sale to
secure sustainability.
Remember that negotiation is like cooking, a person needs to prepare food before it is ready to eat.
The salesperson should do what he/she can to ensure the best results out of the negotiation. The
following are four important areas of preparation.
Planning - It is said that planning should be 90% of the work, and the presentation itself the other
10%. Plan everything ahead of time. Try to write down and answer all the possible questions that a
customer can possibly ask. It is also said that you should know your enemies better that yourself.
This applies especially when a customer asks, “What makes your product better than your
competitors?”
Meeting - When meeting face to face, people always feel better as they know who they are working
with. Once the salesperson meets the customer face to face, the salesperson can start building the
relationship by proving credibility and trustworthiness. As proof of this concept: selling a car to a
trustworthy friend is much easier for both parties than selling the car to a complete stranger.
Studying - A prospective customer should be analysed in order to understand the needs and the
reasons behind the demand. The salesperson should also find out what competitor products a
prospect is interested in and how these will satisfy them. If the prospective customer is looking at a
competitor’s R8 000 000 CAT scanner for a hospital and the CAT scanner you are selling is R9 000
000, you will know that they are looking at a lower price range than your product. Offer a CAT
scanner that is lower priced in order to keep the customer interested.
Proposing - The successful resolution of a negotiation starts with a commitment to do business
together. It is therefore necessary for both parties to maintain common interest and resolve any
conflicts that might arise.
Revision Question 47
What is the most important outcome of negotiations?
9.7 PARALLEL DIMENSIONS OF SELLING
Exhibit 9.11, Fitzpatrick (2011) can be interpreted as a very complicated sequence of interactions,
but, having a closer look at it, you will realise that it is some of the important aspects covered in this
book up to now. In the textbook you have learned many dimensions of selling. Putting these together
can provide a salesperson with a comprehensive scope in the dimensions of selling.
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 86 of 168
The First Column: The column on the left shows the order in which the sales presentation
discussion should be following. The salesperson should ensure that the discussion begins from the
product, the marketing plan follows, then the business proposition and finally the closure.
Second Column: As per chapter four of this book, the SELL sequence should be used to make the
customer aware of the product.
Third Column: As per chapter 10, the ten steps have to be followed before the sale can be closed.
Fourth Column: As per chapter 8, the AIDCA can be used to illustrate the buyer’s mental steps.
9.8 TECHNIQUES
The salesperson should make an appointment with the potential customer but plan the strategy and
tactics before meeting with the customer. Part of this strategy and tactics, the salesperson should
develop a customer profile, listing all the needs and wants which can be used to ensure that the
customer will remain focused and intrigued with the presentation.
Also list the features, advantages and benefits of the product in order to link it to the customer needs
and wants. This is important because the salesperson needs to show the customer how the product
will satisfy their needs.
Only now a salesperson can develop the sales presentation as he/she will have the information
required. The presentation must be created in a way that takes the buyers personality style into
consideration as well as choosing the method and approach technique.
The Approach
For the approach to be classified as a success, the salesperson needs to capture the attention and
interest of the prospective customer. Using a presentation that is full of interesting facts will keep the
customer interested. It is also important to remain positive, giving a firm handshake, look into
customers eyes, smile etc. The salesperson can also bring a sample of the product along unless the
product is too big, he/she can show pictures or videos to the customer.
The trial close is one of the best methods of communication by asking the customer’s opinion instead
of asking the customer to commit to buying the product. Once again, the SELL sequence allows the
focus on benefits rather than features. The salesperson can also find out a lot about the prospective
customer through non-verbal communication signals as discussed in chapter 1.
Three Presentation Parts
The three parts of the presentation should be: presenting the product, sharing the marketing plan and
sharing the business proposition
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 87 of 168
The product should be discussed with the customer in detail. After the product has been discussed
the marketing plan can be shared with the customer. There are two different types of marketing
plans: firstly the reseller, whereby the salesperson can discuss how the retailer, wholesaler or
distributor could sell the product after it has been bought from the salesperson. Secondly, the
enduser is whereby the salesperson can explain how the product will fit into the organisations
operations.
Show and Tell
Try to tell a story about the product to improve the chances of making the sales. As part of the
presentation, the salesperson can use the following six sales presentation elements:
1. Salesperson and customer participation
2. Using of proof statements to show that other customers are happy with the product
3. Use visual aids in the presentation to ensure the customer will remained interested
4. Dramatisation of the product
5. Demonstrate what the product functions are.
6. Use persuasive communication to influence the buyer in a good way
Price
The overall rule of thumb is that the price should not be shared with the prospective customer until
the product has been discussed thoroughly and when the customer does not have any further
unanswered objections. The salesperson should read the customer and make a decision when to
disclose the price.
Welcome Objectives
The salesperson must welcome any objections from the customer as it can uncover some important
customer needs. When the trial question has been asked with a positive response, the salesperson
will know he/she is on track to close, if not, he/she will have to convince and answer some more
questions.
AIDCA
This approach will draw attention and create an interest while the presentation should also create
more interest. During the presentation, the prospective customer’s desires will begin to arise.
Closing
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 88 of 168
When closing and the prospective customer decides not to buy the product, it should not be taken
personally. Instead, the salesperson should try to understand and thank the prospect as it could be
perused in the future.
Follow Up and Service
The following up is the most important part of these elements as this is the part where referrals can
be gained for future success. The entire presentation should be reviewed to ensure the fixing of all
errors for the next presentation. This will ensure the presentation to continuously improve for future
success.
Revision Question 48
What are the three parts of a presentation?
9.9 PRACTICE AND TIME
Practice makes perfect is a saying that we all know well. This is also relevant, and maybe especially
relevant, to a sales career. All salespeople, new and old, go through a learning process consisting of
three phases.
1. Feeling awkward to use these new techniques because the salesperson is not used to it.
2. Consciously using the new training as part of everyday sales
3. When the new way of doing things becomes part of day-to-day job.
In general, habits are very hard to change or to get rid of. As the salesperson uses the training for a
while, it will become second nature. The salesperson should continue through the three phases to
ensure that the training becomes normal to do every day
9.10 CONCLUSION
When the salesperson understands the use of these concepts, strategies and methods discussed in
this chapter, the presentation will have a high possibility of success. There are many different ways of
getting the attention, interest and desire of the customers which have been used by salespeople all
over the world for many years.
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 89 of 168
Revision Exercises 9
1) The four phases of negotiation in order are as follows:
a. Planning, meeting, studying and proposing
b. Studying, planning, meeting and proposing
c. Preparation, meeting, studying and closing
d. Studying, meeting, planning and closing
2) Briefly discuss the 3 important parts to making a sales presentation, and use a car sales
person as an example to show your understanding of these fundamental parts
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 90 of 168
Part 3: The relationship selling
process
Study Unit 10: Begin Your
Presentation Strategically
In this study unit we will be looking at the four types of questioning techniques and the importance of
being flexible in your approach throughout the presentation. We will explain the importance of using
an approach and provide examples of the different approaches that can be used. The theme of the
presentation should relate to the prospect’s buying motives.
“People don't ask for facts in making up their
minds. They would rather have one good, soul-
satisfying emotion than a dozen facts.”
Nicholas Johnson
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 91 of 168
LEARNING OUTCOMES
After completing this chapter you should be able to:
Explain the importance of using an approach and provide examples of approaches
Illustrate why the approach should have a theme that relates to the presentation
and the prospect’s important buying motives
Present four types of questioning techniques for use throughout the presentation
Understand the importance of being flexible in your approach
10.1 INTRODUCTION
The beginning of the sales presentation is the most important as it is the part where the salesperson
needs to capture the attention of the prospective customers in a way that would leave them wanting
more. This can be achieved by using new technology, questions and a flexible approach when
greeting and presenting. The salesperson would also need to know what to do when the prospect is
not listening and re-capture his attention.
10.2 GOLDEN RULE: THE BEGINNING
When starting the presentation, it is very important that the salesperson understands the key benefits
of the product as well as what is needed by the customer. The salesperson should use this
knowledge to solve the customer’s needs in order to ensure a successful sale. A true salesperson
must be there to help the customer.
This beginning of the sales presentation is called the approach as it is
the first communication that the salesperson has in terms of presenting
the product. The approach must be the best part of the presentation as it
will build the trust between the salesperson and the customer. There is
an old saying that first impressions last- this is also true about sales. A
customer should feel that the sales person is trustworthy and that he cares about his/her needs.
10.3 WHAT IS THE APPROACH?
The approach of a sales presentation can be compared to the shot in golf where
the golfer plays from the fairway to the green since it is also called, ‘the approach’.
In sales, the approach refers to the first time the salesperson greets the customer
until discussing the product with the buyer. This approach can be very quick. The
approach is the 3rd step in the selling process. If the approach is not successful,
an opportunity will be missed by the salesperson and the prospective customer.
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 92 of 168
10.4 THE RIGHT TO APPROACH
The salesperson needs to make a decision on how to approach. The salesperson should present the
product to the prospect by focusing on the benefits which the customer will receive from purchasing
the product. Once again, this can be done by capturing the potential customer’s attention, interest,
desire, and conviction to purchase. The salesperson can use these together with the following to
ensure a successful approach.
Helping others and thereby achieving sales objectives. As stated in the previous section,
caring for the customers will increase the chance of being successful
Exhibiting the product and/or business knowledge. Showing the customer the product will help
the customer understand more about the aspects of the product.
Expressing the desire to solve the buyer’s problems and satisfy his needs. The salesperson
needs to express the need to solve the customer’s problems.
Choosing the correct approach, a salesperson will save money and increase the firm’s profit.
The customer will more easily buy the product.
Display service attitude. When customers receive great service they will feel safe when
purchasing because they assume there will be great after sales services.
Prospects will always want to know how they can benefit from the sale and the product. This is
exactly why it is important to discuss the benefits during the approach. This is a good way of making
a good first impression. When a good impression has been made and the customer’s attention is on
the salesperson, the salesperson can present further aspects of the product.
Revision Question 49
How can a salesperson maximise the possibility of a successful approach?
10.5 THE APPROACH: OPENING THE SALES PRESENTATION
The salesperson needs to do more than just present as he/she needs to stay focused on the
following make or break issues.
The salesperson’s attitude during approach
When presenting in front a prospective customer, the salesperson, especially if he is inexperienced,
will feel some tension. This can be viewed as a negative characteristic of a salesperson. A
salesperson must always envision the best and worst situation and accordingly develop a
contingency plan to increase the outcome when the best situation does not work out as planned.
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 93 of 168
The first impression you make is critical for success
As humans, we make our first impressions based upon a person’s appearance. If the prospect has a
positive impression of the salesperson, he/she will listen to the salesperson. If negative, it could
possibly create communication barriers between the prospect and salesperson. There are some
suggestions a salesperson can follow to make a positive first impression, which are as follows: wear
appropriate attire, be neat and tidy, refrain from bad habits like smoking and chewing gum, and keep
an erect posture amongst others mentioned in your prescribed textbook
Approach techniques and objective
These are grouped into three broad categories namely:
Opening with a statement
Opening with a demonstration
Opening with one or more questions
Statements and demonstrations will be reserved when a salesperson chooses to present by using the
memorised and formula presentation methods. The need satisfaction and problem solving
presentation methods will include questioning the customer
Opening with a statement
There are four different approaches frequently used by salespeople.
Introductory approach: This is the most common and least powerful approach. This is
typically opening with the name of the business and what the business does.
Complimentary approach: A salesperson will give a customer a compliment.
Referral approach: When the salesperson informs the customer he was referred by someone
that he knows.
Premium approach: This method is effective because everyone likes something for free. An
example could be free samples.
Opening with demonstrations
Openings that use demonstrations are especially effective because of their ability to force the
prospect into participating in the interview, here there are 2 different approaches:
Product approach: the sales person places the product in front of the consumer and says
nothing, waiting for the prospect to begin conversation
Showmanship approach: involves doing something unusual to catch the prospects attention
and interest
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 94 of 168
Opening with questions
Salespeople would commonly use questions to open the conversation and to better determine the
prospective customer’s needs.
Customer benefit approach: is when a salesperson asks questions that imply the product
will benefit the prospect. A salesperson should use a benefit statement to communicate the
product benefits.
The curiosity approach: is when a salesperson asks questions that make the prospect
curious about the products offering.
The opinion approach: works well because customers like to be asked their opinion. This
works well for new salespeople as it shows that the salespeople value the prospects opinion.
The shock approach: uses questions which make the prospects think about the subject.
A multiple question approach: uses a mixture of the approaches above. Rackham (1988)
used the SPIN abbreviation for the steps involved.
Revision Question 50
What are the three important objectives a salesperson should achieve?
10.6 TECHNOLOGY IN THE APPROACH
Trying to capture a prospects interest and attention can be difficult, but has been made easier as
technology developed over the years. Technology is used to be creative in the sales presentation
which will grab the attention of the customer. Technology can be used to include and enhance
sounds, visuals and prospect focus.
When visiting a customer, the salesperson can carry a laptop with him/her to present the product with
pictures, sound clips etc.
10.7 IS THE APPROACH IMPORTANT?
The answer to the question above is, ‘Yes’. The approach is important although there is more than
one way of approaching a customer. Just like a golfer has different clubs that is used for different
shots, a salesperson has different communication and sales techniques to open a sales conversation.
The salesperson will need to understand the type of prospect, the needs and the type of sale in order
to change the approach to fit the type of sale.
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 95 of 168
10.8 USING QUESTIONS RESULTS IN SALES SUCCESS
Probing is an excellent technique that is used to ask questions for the following reasons:
Obtaining information from prospects
Developing two-way communication.
Increasing the prospects participation
There are three rules to asking questions:
Only ask questions you anticipate answers to
Pause after submitting a question
Listen
But why do these probing questions draw a prospects attention? A salesperson uses these probing
questions to make the prospect think about the topic at hand. The following are four basic categories
of questions which can be asked during a presentation.
Direct questions: This would mostly be ‘Yes/No’ questions. This is used to move a customer
towards a specific topic. “Do you like the benefits of this product?”
Non directive questions: This is usually two way communication between salesperson and
customer. These questions would typically begin with, What, Why, Who, Where, When and How
(referred to as the 5W’s & H).
Rephrasing questions: A salesperson would respond to a customer’s statement with a question.
“Are you saying that the price is the most important thing you are interested in?”
Redirect questions: This is a question asking for an agreement on a certain subject. “Do we agree
that having a supplier reduces the cost?”
Revision Question 51
Give an example of a direct question?
10.9 IS THE PROSPECT SILL NOT LISTENING?
After using all of these methods but still unable to get the Attention, Interest, Desire, Conviction or
Purchase from a potential customer, the salesperson will need to revert to alternatives. These
alternatives are, for example, forcing the prospective customer to participate in the presentation by
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 96 of 168
using questions to retain attention. It is also important not to confuse a communication problem with a
prospects problem with the product.
Ask a customer questions like:
“What are you looking for in a product”
“What benefits do you want from a product”
“What do you not like from similar products?”
10.10 BE FLEXIBLE IN YOUR APPROACH
A salesperson needs to be flexible to be able to cope when moving
away from the original plan. A salesperson will need to adjust to the
needs of the prospect as the prospect is the most important part of
the sales presentation.
You can imagine when you, as a salesperson, created a presentation of 50 pages, but when you
come to page 10, you realise that the customer is already bored. The salesperson will now need to
do what he/she can to save the situation.
Revision Question 52
Why does a salesperson need to be flexible?
10.11 CONCLUSION
A salesperson needs to start building trust in the beginning of the sales presentation. The beginning
of the presentation is called the approach as it is the first interaction with the prospect or customer. It
is therefore important for the salesperson to use the correct approach by using various techniques to
achieve success.
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 97 of 168
Revision Exercises 10 (Remember the answers are at the back of the learner guide)
1) Make use of a practical example for each of the below approaches
a. Shock approach
b. Curiosity approach
c. Customer benefit approach
2) “So what you are saying is that comfort is more important to you than price when
purchasing a pair of shoes”. This is an example of:
a. Nondirective questioning
b. Direct questioning
c. Rephrasing questioning
d. Redirect questioning
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 98 of 168
Part 3: The relationship selling
process
Study Unit 11: Elements of a
Great Sales Presentation
In this study unit we will discuss the purpose and essential steps of the sales presentation,
the six sales presentations mix elements, difficulties that may arise during the sales
presentation and how to handle them. The needs of a prospect can be determined by
properly diagnosing the individual’s personality. According to this the sales presentation can
be designed.
“People don't ask for facts in making up their
minds. They would rather have one good, soul-
satisfying emotion than a dozen facts.”
Robert Keith Leavitt
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 99 of 168
LEARNING OUTCOMES
After completing this chapter you should be able to:
Discuss the purpose and essential steps of the sales presentation
Give examples of the six sales presentation mix elements
Describe difficulties that may arise during the sales presentation and explain how
to handle them
State how to handle discussion of the competition
Explain the need to properly diagnose the prospect’s personality to determine the
design of the sales presentation
11.1 INTRODUCTION
This chapter will create an understanding of the bigger purpose of a sales presentation as well as the
elements and the three major steps within the presentation. The sales presentation mix will give a
better understanding of what a presentation consist of.
The presentation can also be enhanced by the use of visual aids, technology, dramatisation and
demonstration in order to ensure a successful presentation that will satisfy the needs of a customer.
11.2 GOLDEN RULE: PRESENTATION
Place yourself in front of a panel of customers from an organisation that want to buy a product. The
presentation you deliver can mean the make or break of a million rand deal and a future client base.
As a salesperson, it is important to understand and convey the product to this panel in the best way
you can to ensure a successful sale. It could be nerve wrecking, but it is as easy as showing and
telling the panel everything you know about the product, which is the purpose of a presentation.
11.3 THE PURPOSE OF THE PRESENTATION
The main goal, or purpose, of a presentation is to provide information to the prospective customer in
order for them to realise a need or want for the product. This information could be in the form of a
discussion of the product, marketing plan and the business proposition.
The information that the presentation needs to convey in order to fulfil its purpose is to provide
knowledge via the features, advantages, benefits of the product. This will allow the buyer to develop
personal beliefs which can result in a need or want. If a customer has realised a want/desire, the
salesperson has the duty to attempt to convert the want into a need by using an attitude that will fulfil
the need of a prospective customer. These results are in the conviction stage of the mental buying
process which was discussed in the previous chapter of this book.
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 100 of 168
11.4 THREE ESSENTIAL STEPS WITHIN THE PRESENATION
When presenting the salesperson should understand that there are three essential steps within the
presentation.
Step 1: Discuss the features, advantage and benefits of the product with the prospective customer.
Make sure that these are discussed comprehensively.
Step 2: Present the marketing plan of the selling organisation.
Step 3: Explain the business proposition which shows the customer what he/she is paying in relation
to the benefits gained.
Revision Question 53
Name the three essential steps in a presentation?
11.5 THE SALES PRESENTATION MIX
The sales presentation mix refers to the elements a salesperson will assemble to sell a product to a
customer, which are the following: Participation, Proof, Visual aids, Dramatization, Demonstration and
Persuasive communication
PERSUASIVE COMMUNICATION
There are many different ways that you can make your communication persuasive, they are as
follows
Logical reasoning this requires prospects common sense by requiring them to think about the
proposition and to compare alternative solutions to the problem
Persuasion through suggestions - this is the use of suggestion to arouse attention, interest, desire,
conviction and action.
Sense of fun: The salesperson needs to keep the presentation professional but at the same time
having the right mental attitude to make it fun. A fun presentation can be used to keep the attention of
the prospect.
Personalised relationships: Due to the fact that each sale is different, each presentation must be
personalised in a unique way that builds trust. Being honest in the presentation will build trust
between the salesperson and the customer. Remember that “Honesty is the best policy”.
Trust: As recently mentioned, honesty and trust go hand in hand.
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 101 of 168
Body language: A salespersons body language can project or portray a positive image by smiling for
example. Body language was also explained in chapter three.
Be a diplomat: The salesperson needs to be a diplomat in chases in which tempers rise and
prospects are wrong but feel they are correct and will not change their opinions whereby retreat
would be the best option
PARTICIPATION
The second element is getting the prospect to participate in your presentation, which include
questioning (how you felt how soft this blanket is), product use (you take this vacuum cleaner and
clean those dirty marks for yourself), visuals (showing before and after pictures) and demonstrations
(showing how you can remove tough stains with the new liquid cleaner)
PROOF
This requires proving to the prospect during the presentation that the products benefits and the sales
persons proposals are legitimate, this can be done in various ways, through including past sales in
their presentations, to using the guarantee aspect of the sales, to using testimonials from previous
people that have used the product, to using company proof results and lastly through using
independent research results
VISUAL AIDS
Many companies provide their sales people with visuals for their products with the intent of producing
mental images of the products features, advantages and benefits. This can be in the form of the
actual product, photographs, and charts indicating performance or even a copy of the guarantee
Revision Question 54
Name 3 visual aids that can be used
DRAMATISATION IMPROVES CHANCES
Dramatisation refers to talking or presenting a product in a striking,
showy or extravagant manner. Any salesperson should be able to
dramatise the product sold in order to improve the chances of
making a successful sale. Salespeople use dramatisation to make
the product look and sound good in order for the customer to buy
it. Sometimes, unethical salespeople will dramatise so much that it
is more fiction than reality.
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 102 of 168
A salesperson will tell a customer that the network he/she is selling is so fast that it instantly
downloads any program. In reality, the network could well be very fast but cannot instantly download
a program as the salesperson promised.
We have all seen demonstrations of products, whether it is on television or in real life. Television can
be used as a visual aid to demonstrate how a mop works. The objective will be for a prospect to feel,
see, hear, smell and use the product in order for the customer to understand how well the product
works before purchasing
Revision Question 55
Why do salespeople use visual aids, dramatisations and demonstrations?
11.6 THE SALES PRESENTATION GOAL MODEL
A salespersons decision as to which elements of the sales mix to use will depend on the goal that the
salesperson has with the presentation. The following are questions which can be asked to increase
the understanding of the elements.
What are the objectives of the presentation?
Who is the audience?
How is the presentation structured?
How will the presentation create an impact?
Will visual aids be displayed?
In which stage is the presentation?
The answers of these questions will give the salesperson insight into the goal of the presentation as
well as deciding which elements of the sales mix are important.
11.7 THE IDEAL PRESENTATION
The ideal presentation will be one where the technique used captures the prospects attention and
interest very early in the presentation. The ideal prospect on the other hand is one who is friendly,
polite and relaxed. A friendly prospect will also cheerfully and positively answer questions.
An example is when a customer answers questions enthusiastically thanking you for your valuable
time.
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 103 of 168
11.8 BE PREPARED FOR PRESENATION DIFFICULTIES
There will always be times when a salesperson is confronted by interruptions. The salesperson will
need to know how to handle these interruptions. Consider the following ways in which a salesperson
can handle these interruptions mentioned in your prescribed textbook.
There are three things a salesperson needs to consider before mentioning anything about the selling
organisations competitors.
Do not refer to a competitor unless necessary.
Acknowledge your competitors only briefly and drop it immediately thereafter.
Make a detailed comparison of your product and your competition’s product only if you know
what you are talking about.
When dealing with difficulties, the salesperson should be professional, be accurate, be straight
forward and most importantly be honest. Advantages and disadvantages of competitive products can
be mentioned if done professionally.
Revision Question 56
List 4 ways a salesperson can handle interruptions within a sales presentation
11.9 CONCLUSION
There are essential steps that a salesperson can follow to ensure a successful sales presentation. In
addition, the salesperson can use the six sales presentation elements to control the presentation. The
sales presentation will not always be successful because he/she can be faced with difficulties. It is
important to manage these difficulties – ‘think on your feet’. Knowing how to handle the discussions
around an organisations competition and how to link a sales presentation with a prospects personality
are important aspects that must be determined.
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 104 of 168
Revision Exercises 11 (Remember the answers are at the back of the learner guide)
1) Which of the following is not part of the salespersons presentation mix?
a. Persuasive communication
b. Dramatisation
c. Recommendations
d. Demonstrations
2) The order of the five purposes of the sales presentation are as follows
a. Knowledge, beliefs, desire, attitude, conviction
b. Knowledge, desire, beliefs, attitude, conviction
c. Desire, knowledge, beliefs, attitude, conviction
d. Desire, knowledge, attitude, beliefs, conviction
3) Explain the term of countersuggestion as a persuasion technique in your own words, using
an example to show your understanding
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 105 of 168
Part 3: The relationship selling
process
Study Unit 12: Welcome your
prospect’s objectives
In this study unit we will discuss the way in which a relationship can improve the sales
process. It is important that salespeople would be open towards a customer’s objections as
these can give a salesperson valuable insight into why customers might not be happy.
Everything that a salesperson does should reflect and answer the customer’s objection to
ensure no doubt will be left in the customers head.
“A good objective of leadership is to help those
who are doing poorly to do well and to help those
who are doing well to do even
better.”
Jim Rohn
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 106 of 168
LEARNING OUTCOMES
After completing this chapter you should be able to:
Explain why it is important to welcome a prospect’s objectives
Describe what to do when an objection arises
Discuss seven basic points to consider in meeting a prospect’s objectives
Explain six major categories of prospect objectives and give an example of how to
handle each.
Present, illustrate and use techniques in your presentation to meet the prospect’s
objectives
Describe what to do after meeting an objection
12.1 INTRODUCTION
In this chapter we would look at why it is important to welcome a prospect’s objectives, discuss the
seven basic points to consider and describe what to do after meeting an objective. The six major
categories of prospect objectives would be explained in order to handle each of the objectives.
Present, illustrate and the use of techniques in your presentation would assist in meeting the
prospect’s objectives.
12.2 GOLDEN RULE: OBJECTIONS
When selling a product, a salesperson needs to understand how to act when
faced with objections by a customer. For some industries, a salesperson might
face more objections than others but in the end, all salespeople will sometime be
confronted with an objection or objections.
Consider the following example: The salesperson says, “Good day sir, can I interest you in the
product I sell?” The customer answers, “No thank you, my agent sells much better quality products.”
12.3 WHAT ARE OBJECTIONS?
In practice, objections to products are commonly known as a sales objection. This is when a
customer has an opposing idea of information that a salesperson carries over. When customers
object to a product, it could men one of two things:
Interested: Customers could object because they are interested in the product and want to know
more about the benefits of the product that is presented. A customer will typically ask, “But can the
tablet take a picture?” The salesperson should reply by saying, “Yes, indeed it can take pictures with
its HD 13 megapixel camera.”
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 107 of 168
Not interested: A prospective customer can reject a product and therefore object to it based on its
functionality In other words, a customer who does not have interest in a specific product will try to find
a fault with the product.
A customer who has used an Apple Mac computer for the past 10 years will try to degrade a Mecer
computer just because the customer thinks Apple is the best product on the market.
12.4 OBJECTIONS AND THE SALES PROCESS
As discussed in previous chapters, salespeople have realised the importance of a trial close. It is
important to realise that the trial close asks customers for their opinion which will most probably raise
some objections. When an objection is raised, the salesperson should:
First determine the objection
Use an objection handling technique
Address the person’s objections
Ask a trial close to ensure that the customer’s question has been answered.
A salesperson can determine an objection by allowing a customer to talk. Do not try to lead the
conversation too much as this will enable the customers to give their opinion. Exhibit 12.1 illustrates
the cycle that the sales process can follow.
Revision Question 57
What should the salesperson do when an objection is raised?
12.5 BASIC POINTS TO CONSIDER IN MEETING OBJECTIVES
How can a salesperson maximise that chance that he/she meets the customer’s objective? There are
some basic points that can be used.
The salesperson should make different scenarios in order to plan for the different objections
that a customer might have in terms of a product. By doing this, the salesperson will ensure
that he/she will be able to answer all the questions with confidence.
According to The Free Dictionary, forestalling means preventing something from happening
before it happens. Anticipating a potential objection before it happens is a tactic that
salespeople use in order to reduce possible customers concerns, in other words being
proactive.
It is always better to try and resolve objections as they arise because a customer will regard
any unanswered questions as a negative factor of the product or service.
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 108 of 168
Being and thinking positive will reflect in the salesperson’s presentation and body language.
Showing interest in a prospective customer’s opinion is another way of maintaining a positive
environment.
It is very important to listen to the objections a customer makes
as it can benefit both salesperson and customer. The salesperson
and customer are both looking for more information to better
understand each other. By listening, a salesperson can gather
more information about the needs of customers and thereby
improve their needs.
Once a salesperson fully understands how and why customers make objections, the salesperson can
use this to improve the customer’s perception of a product.
Revision Question 58
List the basic points to consider when meeting objections
12.6 SIX MAJOR CATEGORIES OF OBJECTIVES
There are six major categories in which salespeople can place objectives. The following figure
describes each category.
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 109 of 168
Revision Question 59
Name the six major categories of objections?
12.7 TECHNIQUES FOR MEETING OBJECTIONS
When a salesperson understands the different and most common
objectives it is important to understand the different techniques that a
salesperson can use when these objectives arise. The following are
some techniques used to meet an objective raised by a customer.
Dodge: This is one common technique salespeople use is to ‘dodge’ questions and objections that
customers ask. This is not the best way to treat customers as it shows that the salesperson is not
prepared for the presentation. Because a salesperson is the windows of an organisation, the
organisations reputation can be damaged.
Pass up the objection: Sometimes it is better to not reply to a customer’s objection. In other a
salesperson can gain a lot by gaining some insight into a customer. An example is when a customer
says, “I am not interested in your product.” The salesperson can ask, “Why aren’t you interested?”
This could create a gap where a salesperson can present his/her product.
Rephrasing the objection: Many salespeople like to ask a question with the objection that has been
made by the customer for example, “The price is too high?” the salesperson can reply by saying, “I
understand, but for all these extra features, isn’t it actually a bargain?
Postponing an objection: Customers can sometimes ask questions too early in the presentation,
politely informing the customers that the question will be answered in the next couple of slides could
be a good idea.
Boomerang method: The salesperson’s job should always be to reroute an objection into a reason
to buy. This is usually done by convincing a customer that the objection that has been raised is
actually a benefit of the product.
Ask questions: “What product range are you interested in?” By asking questions a salesperson can
learn a lot from the customer. “Why do you not like this product?”
Direct denial: Sometimes customers have their own opinions of products which might not be true.
The salesperson can correct the customer by acknowledging the customers statement and thereafter
answering the question with the correct facts.
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 110 of 168
Indirect denial: When using this method, the salesperson will initially appear to agree with the
customer only to correct him/her in subtle way. “Yes but…”
Counterbalance: A counterbalance means that a few good reasons for buying must be present in
order to balance out a negative factor. The salesperson needs to ensure enough positive factors are
present before trying to sell a product.
Third party: Using an existing customer who gives a testimony is an example of third party answers.
This can influence a customer’s perception.
12.8 TECHNOLOGY CAN EFFECTIVELY HELP RESPOND TO OBJECTIONS
Technology should be used to provide customers with the necessary information in order to change
the objection into a positive factor for a product. Displaying customer information, like average sales,
should be shared with a customer. Technology is such a big part of our daily lives that it should be
used to meeting objectives.
Revision Question 60
How can technology be used to help respond to objections?
12.9 AFTER MEETING THE OBJECTION – WHAT TO DO?
Asking for a customer’s opinion would be the obvious route to follow after the objection has been met.
“As explained, this product has the necessary features in contrast to you objection. Wouldn’t you
agree that it covers your concerns?”
After asking for an opinion, the salesperson can move back to the presentation and eventually close
the sale with the customer. In the case that the sale cannot be closed, the salesperson should be
sure to discuss benefits, features and advantages in order to outweigh the disadvantages a customer
might have realised from the product.
12.10 CONCLUSION
After studying this chapter, you should be able to know the importance of welcoming a prospect’s
objectives and how to handle each of the objectives. You would also be able to present, illustrate and
use techniques in your presentation to assist in meeting the prospect’s objectives.
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 111 of 168
Revision Exercises 12 (Remember the answers are at the back of the learner guide)
1) Which of the following is not an example of the 6 major categories of objections?
a. Hidden objections
b. Money objections
c. Product objections
d. Distribution objections
2) “I know you have a good product and I like what you have had to say, but our present
product works well, I think we will stay with it”, is an example of
a. Money Objection
b. Stalling Objection
c. No-need Objection
d. Hidden Objection
3) Explain in your own words what the boomerang method is
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 112 of 168
Part 3: The relationship selling
process
Study Unit 13: Closing begins
the relationship
In this study unit we will discuss the way in which the presentation should be closed and how this
would affect the relationship between the salesperson and the customer. There are some essential
techniques that can be used to a better chance of closing successful. A salesperson should prepare
for possible difficulties that might arise when closing.
“A person isn't who they are during the last
conversation you had with them - they're who
they've been throughout your whole relationship”
Rainer Maria Rilke
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 113 of 168
LEARNING OUTCOMES
After completing this chapter you should be able to:
Explain when to close
Describe what to do if your prospect asks for more information, gives an objection
or says no when you ask for the order
Explain why you must prepare to close more than once
Discuss the 12 keys to a successful close
Present, illustrate and use several techniques for closing the sale in your
presentation
Construct a multiple-close sequence
13.1 INTRODUCTION
This chapter will explain the aspects of closing a sale. This includes what to do if a prospect rejects
an offer. There are some guidelines which a salesperson must use to ensure success in a sale.
These guidelines include preparing more than one close, 12 keys factors and constructing a multiple-
close sequence.
13.2 GOLDEN RULE: CLOSING
A salesperson will get to a point where he/she has confidence that it is a good time to close the sales.
The traditional salesperson would try to sell the product or service even though the customer is not
100% ready by asking, “When can we deliver the product to you?” The salesperson should rather
focus on ensuring that the customer’s needs are fulfilled when purchasing this product. This will also
contribute to the relationship between the customer and the salesperson.
13.3 WHEN SHOULD I POP THE QUESTION?
According to C. Futrell (2014), closing is the process where we help the customer make a decision
which will also benefit the salesperson. A salesperson will need to trust that his/her presentation was
good enough to convince the customer to buy the product.
Customers think about the end of a sales presentation and what they would want their decision to be
in the end. A salesperson cannot read the mind of the customer, but can look at the signs when a
customer has reached the conviction stage as discussed in previous chapters. As soon as a
salesperson realises this, it is time to close.
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 114 of 168
Revision Question 61
How would a salesperson know when to close?
13.4 READING BUYING SIGNALS
A customer will send out some non-verbal signals which can be realised by the salesperson in order
to realise a customer’s readiness to close. These are called buying signals and will mean that the
customer has reached the conviction stage. The following are signals which will show a customer’s
readiness.
The customer will be asking questions like “How much does it cost?”
Customers will also sometimes ask peoples opinion whom they trust. A husband can ask his
wife the following, “What do you think about this?”
A customer would become relaxed and friendly because the pressure is released from the
situation.
When a customer takes out an order for and starts filling it in, the salesperson can know that
the customer is ready for the close.
When a customer closely analyses and scrutinises the product.
13.5 WHAT MAKES A GOOD CLOSER?
There are some key characteristic that all good closers have in common. These increase the
likelihood of closing successfully:
Strong desire to close each sale successfully
Positive attitude towards the customer
Positive attitude towards the product
Know and understand their customers
Tailor each presentation to suit the specific needs of a customer
Carefully listen to what a customer says in order to define needs
The salesperson will not stop the first time a customer says no to a product.
After closing and the salesperson has asked the customer to place and order or buy a product, the
salesperson should not say anything as it could reduce the chances of a successful sale. Consider
the following example:
Salesperson: “Sir, would you be interested in placing an order for this product”
Customer: “Yes where do I sign?”
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 115 of 168
Salesperson: “You can sign here. Usually other customers wait until they saw the prototype before
signing for a product.”
Customer: “In that case I will wait as well.”
As per the example, a customer’s mind can be changed when speaking any further about the
product. One exception can be asking the customer for referrals.
Revision Question 62
What are the key characteristics that good closers have in common?
13.6 CLOSING UNDER FIRE
Never accept the first no from a customer but rather try to close under fire, meaning that the
salesperson would need to close although he/she might be in a bad mood or unwilling to buy.
13.7 DIFFICULTIES WITH CLOSING
It is said that closing is the easiest part of the sale. A common reason why salespeople have difficulty
in closing a sale is usually because they are not comfortable to close due to confidence. Another
reason why a salesperson can find it difficult to close, is when the/she realises that the customer is
disinterested or demands different quantities. A poor presentation can come from a salesperson who
had not developed a customer profile or a customer benefit plan before the presentation.
Revision Question 63
What is a common reason for difficulty in closing?
13.8 ESSENTIALS OF CLOSING A SALES
In your prescribed textbook there are a number of essential factors necessary for closing a sale. If
these are present in the presentation, it is likely that the presentation could result in a success.
Always be aware that a memorised sales presentation is likely to be unsuccessful
13.9 PREPARE CLOSING TECHNIQUES
The principle on closing techniques is as follows: The more techniques, the better the success rate.
Try to use as many closing techniques as possible. Although the prescribed textbook lists the 11
most common, each salesperson will need to develop his/her own which suits them the best. The
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 116 of 168
techniques are summarised in a table below, it is important you are able to briefly explain each of
them in an exam/assignment
Techniques for closing the sale
Alternative-choice close T-account or balance sheet close
Assumptive close Standing-room-only close
Compliment close Probability close
Summary-of-the-benefits Negotiation close
Continuous-yes close Technology close
Minor-points close
13.10 PREPARE MULTIPLE-CLOSE SEQUENCE
By keeping several different closes ready in any situation, you are in a better position to close more
sales. An example of a multi-close is when a salesperson closes and realise that the statement
should be rephrased to change the viewpoint of the customer. In chapter 11, the five –question
sequence was explained which helps in this situation where a customer does not want to give a
reason for not buying.
13.11 CLOSE BASED ON THE SITUATION
A salesperson should adjust the closing style to suit the situation. For example, if the customer
believes that the competitor has a better product, the T-account approach can be followed. As well as
if the sales presentation comes to a complete halt as everyone is needing to be in another meeting
close it off by saying I will put everything in a sales proposal for you
13.12 RESEARCH
Research is necessary for answering two important questions namely;
What makes one sales call a success and the other a failure?
Do salespeople make common mistakes which could prevent success?
Researching should be used to answer these questions. When these questions are answered, the
salesperson would have a better chance of closing successfully. The following are mistakes which
were found to prevent successful sales:
A salesperson who does not ask enough questions
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 117 of 168
Over controls the conversation with too many close-ended questions
Do not respond to customer needs with the relevant benefits
When a salesperson gives benefits prematurely this means that the customer’s needs were
not recognised.
When not recognising negative attitudes
Weak closing statements
Revision Question 64
Which two questions does research answer?
13.13 CLOSING BEGINS THE RELATIONSHIP
It is said that a relationship between a salesperson and customer starts once a sales has been
successfully closed. A salesperson will now have the opportunity to sell a product to this customer in
the future. Now that customers understand the products sold, and have a relationship with a
salesperson, the future sales will become easier.
13.14 WHEN YOU DO NOT MAKE THE SALE
All salespeople have to get used to rejection in order to survive in the sales industry. There are two
very important things to do when a prospective customer does not want to buy.
Act as a professional
Find out why the prospect does not want to buy
Revision Question 65
What do you do if a customer does not what to buy?
13.15 CONCLUSION
By now we have a better understanding of the close after presenting a product/service to a potential
customer. As we realise in this chapter, preparation of the various techniques to ensure a successful
close is very important. If a salesperson does not prepare these techniques before the presentation,
the chances are greater that the sale will fail.
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 118 of 168
Revision Exercises 13 (Remember the answers are at the back of the learner guide)
1) Which of the following is not an example of a closing technique?
a. Alternative Choice
b. Minor-points
c. Probability
d. Chance
2) “I am not sure if I have your size, would you want them if I have them in stock?” is an
example of:
a. Probability close
b. Minor points close
c. The standing room-only close
d. Compliment close
3) In your opinion how many times should you close a sale?
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 119 of 168
Part 3: The relationship selling
process
Study Unit 14: Service and
follow-up
After the close has been made, a salesperson will continuously need to follow-up and maintain
service levels in order to ensure that customers are 100% satisfied. By doing this, a salesperson can
ensure future and follow-up sales as the customer will not have to look for competitors’ products.
Handling complaints effectively is a major part of a customer’s level of satisfaction towards a product
and/or service.
“Success comes from taking the initiative and
following up... persisting... eloquently expressing
the depth of your love. What simple action could
you take today to produce a new momentum
toward success in your life?”
Anthony Robbins
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 120 of 168
LEARNING OUTCOMES
After completing this chapter you should be able to:
State why service and follow-up are important to increase sales
Building friendship
Discuss how follow-up and service result in account penetration and improved
sales
List the eight steps involved in increasing sales to your customer
Explain the importance of properly handling customer’ returned goods requests
and complaints in a professional manner
14.1 INTRODUCTION
Customer service and follow-up are important as it increases sales and results into account
penetration and improved sales. Handling customer requests in a professional manner would help
build friendship and increase sales to the customers by applying the eight steps explain in this
chapter.
14.2 GOLDEN RULE: SERVICE
Following up with customers and customer service is all about taking care of the customers and their
needs. By following up after a sale has been made, a salesperson shows that he/she really cares.
Many salespersons’ loose sales due to the fact that they cannot put others needs before their own.
Revision Question 66
What is the golden rule of selling?
14.3 THE IMPORTANCE OF SERVICE AND FOLLOW-UP
Following-up through maintaining a contact, a salesperson can almost ensure customer satisfaction.
It is therefore very important to follow-up after making a sale. This also ensures that a long-term
business relationship can be built and maintained.
Salespeople generate ideas of how they can take care of customers over the years. It is important
that salespeople realise that being caring towards customers will build relationships.
Another thing to note is that there is a considerable difference noted in making a sales call for the
sake of making it and making a sales call because you genuinely want to solve someone’s problems
and truly care. The approach you took in the beginning is vital to demonstrate when following up, a
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 121 of 168
customer doesn’t want to find out you were only a friendly guy because you were looking for the sale
and now afterwards you don’t even follow up or your follow up call is abrupt and brief.
14.4 BUILDING A LONG-TERM BUSINESS FRIENDSHIP
In the 21st century things have changed in terms of sales relationships. Today, salespeople are
focused on creating, building and maintaining long term business relationships. A business friendship
is the relationship between a salesperson and a client that revolves around business related issues.
In order to do this, it is important to notice the three different levels relationships might be in.
Acquaintances
Friends
Intimate friends
Any relationship needs a structure to survive. For this reason, a salesperson must ensure that he/she
creates this structure as a foundation on which the relationship can be built. The following are the two
most important ingredients for building this structure.
Truly caring
Placing others interest before your own
Revision Question 67
What are the three levels of relationships?
14.5 RELATIONSHIP MARKETING AND CUSTOMER RETENTION
After looking at the way in which a solid structure and foundation for a long term relationship is built, a
salesperson should also consider the three levels of customer relationship marketing that exists.
Relationship marketing is activities which are aimed at building and managing trust in the form of a
long-term relationship with a customer. It is important to understand the differences between these
three levels of customer relationship being: transaction selling, relationship selling and
partnering.
With this relationship marketing, a salesperson should understand and implement the 4P’s of
marketing to facilitate this relationship. These four P’s are: product, price, promotion and place
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 122 of 168
Revision Question 68
In your own words, provide an explanation of what you think customer service is
14.6 CUSTOMER SATISFACTION AND RETENTION
Customer satisfaction is the degree to which satisfaction is provided in terms of delivered products or
services. By satisfying a customer, a salesperson opens up the door for future sales. There are a few
terms you should familiarise yourself with in this section
Customer satisfaction means how much the customer likes the product, service and relationship.
Customer loyalty is the customer’s commitment to a company and its product for the long run
Value is seen as the ration of benefits to costs. Customers invest a variety of costs into doing
business with you, from financial, time and human resources. The customers achieve a certain
bundle of benefits in return for these investments
Revision Question 69
What is customer satisfaction?
14.7 EXCELLENT CUSTOMER SERVICE AND SATISFACTION REQUIRE TECHNOLOGY
A salesperson should always attempt and aim to provide the best possible service in order to realise
the best possible customer satisfaction. Using modern technology is one way of facilitating this and
making it easier for salespeople to deliver excellent service.
14.8 HOW DOES SERVICE INCREASE YOUR SALES?
All salespeople should continuously strive to obtain new customers day by day. Although this is
important, a much easier way is just to ensure repeat sales from existing customers by means of
good customer service. If a customer receives great customer service and a relationship is
established, the customer is less likely to look around for other products. For this reason, it is
important to keep customers happy by which customers will be retained and reference can be
obtained. By constantly receiving referrals, a salesperson will have a continuous increase in new
customers, reducing the necessity for actively looking for new customers.
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 123 of 168
14.9 TURN FOLLOW-UP AND SERVICE INTO A SALE
As mentioned before, it is very important to follow-up on sales in order to keep customers happy. This
will in turn secure future sales. A simple follow up could be how is the product operating for you, is
there anything you still don’t understand, or something simple as I just wanted to give you a heads up
but your car is due for a service in the next month so you probably want to book it in for a service
14.10 ACCOUNT PENETRATION IS A SECRET TO SUCCESS
Follow-up creates goodwill between the customer and the salesperson. This will reflect back to the
account in order to realise the maximum benefits for all parties involved.
According to C. Futrell (2014), account penetration is the ability to work and contact people
throughout the account, by discussing the product. Account penetration is dependent on knowledge
of the account’s key personnel and their situation.
An example of account penetration is if you meet the need of supplying junior engineers with design
software, you should be able at a future stage to develop a personalised presentation for the seniors
as you would already identify the need for them to effectively and efficiently communicate (their
technology must speak to each other) amongst each other, hence maximising sales within the
account. The account penetration is determined by a number of factors listed in your prescribed
textbook
14.11 SERVICE CAN KEEP YOUR CUSTOMERS
Consider the following six factors which can be used to ensure that customers will continue buying
from you, as a salesperson, in the future.
Try to improve account penetration
Contact new accounts frequently and regularly
Handle customer complaints properly
Do what you say you will do
Provide service as you would with a royalty
Show appreciation
14.12 HANDLE COMPLAINTS FAIRLY
According to Johnston & Marshall (2010), when customer expectations are not met,
customers perceive a performance gap between what you promised and what you
delivered. Performance gaps result in customer complaints
Handling customer complaints should be marked as important as customers might
become angry and frustrated when these complaints are not attended to as soon as
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 124 of 168
possible. This could lead to loosing valuable customers. The following are reasons why customers
can be dissatisfied with products, which are mentioned in your prescribed textbook
When dealing with these types of complaints, the salesperson should always try to be as honest and
calm as possible as this will calm a customer as well. Being hostile towards a customer will just make
the situation worse and anger the customer.
14.13 IS THE CUSTOMER ALWAYS RIGHT?
This is an age-old question that has never been answered. The reason therefore is that salespeople
should decide this for themselves. Although some will easily say that the customer is always right,
salespeople must always be aware of dishonest customers that might require something that they do
not deserve.
In this case, salespeople must have problem solving techniques in place if this problem should
arise. Salespeople should be thick skinned or even armoured to face unethical and dishonest
customers.
14.14 BUILD A PROFESSIONAL RELATIONSHIP
There are eight very important points to remember when it comes to building a professional
relationship with customers.
1. Be truthful and follow through on what you promise customers
2. Maintain intimate knowledge of the firm and product
3. Speak well of others
4. Keep information confidential and
maintain professional relationship
5. Never take advantage of a customer
6. Be active in community
7. Think and act like a professional
8. Provide service above and beyond
the call of duty
14.14 DO’S AND DON’TS FOR BUSINESS SALESPEOPLE
All salespeople should try to follow the trend and characteristics found with top business salespeople.
To better understand the dos and don’ts for salespeople, go through Exhibit 14.10 and 14.11.
14.15 CONCLUSION
It is important to understand the role that service and follow-up helps increasing sales and results in
account penetration and improved sales. After studying the eight steps on how to increase sales to
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 125 of 168
customers you would know that by handling customer request in a professional manner friendship
would be built which in turn result in increased sales.
Revision Exercises 14
Revision Questions (these are based on the “End-of-Chapter Exercises and the Discussion
and Examination Questions at the end of Chapter 1 of the prescribed textbook):
1) On the path to sales success, there are 4 things to remember, which of the below doesn’t
belong:
a. Seek customers to serve and you will find them
b. ask and people will buy
c. be persistent until you get the sale
d. knock and people will open their doors
2) What is customer satisfaction? What is customer loyalty? Is one more important in the
long run than the other?
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 126 of 168
Part 4: Managing yourself,
your career and others
Study Unit 15: Time, territory
and self-management
This chapter gives insight on how to manage ones time and territory. Time is especially important as
it is a limited source. A territory should be established by a salesperson towards the needs of the
prospective customers in a geographical area.
“Most people would like their own ways and other
people's means.”
Robert Keith Leavitt
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 127 of 168
LEARNING OUTCOMES
After completing this chapter you should be able to:
Discuss the importance of the sales territory
Explain the major elements involved in managing the sales territory
Explain why salespeople need to segment their accounts by size
Calculate a salesperson’s break-even point per day, hour and year
15.1 INTRODUCTION
In this chapter the importance of the sales territory and the major elements in managing the sales
territory would be discussed. Time management is important as salespeople need to segment their
accounts by size and calculate the break-even points per day, hour and year.
15.2 GOLDEN RULE: TIME
Due to the limitedness of time, it is a very precious, if not the most important
asset of each and every person. Time is money, is therefore a lifestyle for all
salespeople as time wasted is time that could have been used to make another
sale.
15.3 CUSTOMER FORM SALES TERRITORIES
According to C. Futrell (2014), sales territory is a geographical area or group of customer assigned to
a salesperson. Refer to Exhibit 15.1 on page 444 to better understand the reasons why organisations
develop and use sales territories. Below is a table with a few more reasons of why Time and territory
management is important for both the sales person and the sales manager
Reasons for sales people Reasons for sales managers
Increased productivity Ensure territory and customer coverage
Improve Customer relationships Minimize sales expenses
Enhance personal confidence Asses sales performance
Align company policies with customers’ expectations
Table: Johnston & Marshall (2010)
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 128 of 168
Although most sales organisation use sales territories, there is a minority that do not use sales
territories. There are four reasons why organisation will choose not to use sales territories.
Salespeople might be motivated if not restricted
Some organisations are too small to segmented
Management might not have the needed know-how for territory development
Personal friendship might be basis for attracting customers
Revision Question 70
Why would an organisation choose not to use sales territories?
15.4 ELEMENTS OF TIME AND TERRITORY MANAGEMENT
Time and Territory Management (TTM) is a continuous process of planning,
executing and evaluating sales and service provided to customers. There are 7 key
elements used to determine TTM which will ensure the salesperson will provide
excellent service they will be explained briefly below
SALESPERSONS SALES QUOTA: This is determined by the manager for the sales person, the
amount/quota the salesperson is expected to reach
ACCOUNT ANALYSIS: Firstly the salesperson should identify all prospects and present customers
and secondly analyse their sales potential. You could be given a poor area out in the country side,
whereby everyone has the need but no one has the money. There are two general approaches in
which a salesperson can analyse an account.
Undifferentiated selling – whereby the sales person recognises that their territory is filled with
people having the same needs, for example being given an industrial area filled with
engineers, they could all have similar needs
Account segmentation approach – when the salesperson recognises that their territory is filled
with a bunch of different people with different needs, for example they may be given a city
centre, consisting of various different companies in malls, with headquarters of various
different businesses
Also, there are two ways of segmenting an account, namely:
Multiple selling strategies
Multivariable account segmentation
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 129 of 168
It is important to understand these segmentation strategies as it is a major part of sales management
in practice.
DEVELOP ACCOUNT OBJECTIVES AND SALES QUOTAS: Now that the salesperson has been
given an overall quota he needs to develop objectives and sales quotas for the individual products for
current and potential accounts, which can be done through product assortment or just increasing
current distribution
TERRITORY-TIME ALLOCATION: Is determining how a salesperson should allocate their time
within their territory, which includes time taken for making sales calls, travel time, non-selling time etc.
Typically you would allocate time directly proportional to the potential of the sale that the account
represents.
RETURN ON TIME INVESTMENT: This requires the sales person to use their time effectively.
Determining how much sales volume a salesperson must generate to meet costs in a territory. It is all
about time management and using your time wisely, for example if you are early for a meeting try one
or 2 cold calls from your car, or taking a prospect to lunch as you need to eat anyways so you might
as well make it productive, also cold calling early in the morning from the office while there is still
traffic and make your meetings during times when there is no traffic.
You need to determine a breakeven point which determines how much sales volume a salesperson
must generate to meet costs in a territory; this can be done in a simple calculation below:
For example the sales persons fixed costs of petrol, sales brochures and telephone calls adds up to
R500. The gross profit percentage, meaning the profit divided by the amount the goods were sold for,
is 30%.
Hence the breakeven point for the sales person, the amount of money the sales person should
generate to meet the costs is R1666
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 130 of 168
Revision Question 71
Calculate the break-even point, the fixed cost percentage is 25% and the sales persons fixed costs
are as follows:
Petrol: R150, Telephone calls: R50 & printing of brochures: R100
Revision Question 72
Discuss 3 ways an effective salesperson can manage time
CUSTOMER SALES PLANNING: this involves developing a sales plan for each customer from call
objective, customer profile and customer benefit program
SCHEDULING & ROUTING: Scheduling, according to Futrell (2014), is the fixed time of day for
visiting customers, as mentioned earlier it would probably be between the hours of 9:30 – 15:00 when
there isn’t traffic. Routing is the travel pattern used in working a territory; therefore the route should
flow from start to finish and should cover all of your territory.
15.5 CONCLUSION
After studying this chapter you would be able to manage your time and segment accounts by size,
calculate the break-even points by day, hour and year. You would also understand the importance of
the sales territory and the major elements in managing the sales territory.
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 131 of 168
Revision Exercises 15 (Remember the answers are at the back of the learner guide)
1) Which of the following doesn’t explain the best way to design a route?
a. It should improve territory coverage
b. Spending the most possible time in your car
c. Establish communication between management and the sales force
d. Minimize wasted time
2) Which of the following isn’t an example of a time and territory management element?
a. Territory and customer evaluation
b. Mileage calculation
c. Account analysis
d. Customer sales planning
3) You are vice-president for your company and are speaking with your sales managers from
around the country. You have been asked by the CEO to prepare a five minute
presentation on why time and territory management is so important to the company. List
and describe 3 reasons of why it is so important
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 132 of 168
Part 4: Managing yourself, your career and others
Study Unit 16: Staffing and
training salespeople
Training is a very important part of managing a sales force. You can imagine how difficult a new
employee will adapt to processes when no training is provided. This is especially true when a
salesperson needs to take the role of a sales manager because these two jobs are worlds apart. By
means of sales force planning, an organisation can keep up to speed with the training and staffing of
sales force.
“Confidence comes from discipline and training”
Robert Kiyosaki
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 133 of 168
LEARNING OUTCOMES
After completing this chapter you should be able to:
Discuss the relationship between a firm’s marketing plan, sales force and the sales
force’s budget
Describe the organisation of a sales force
Explain the two major elements involved in staffing the sales force – personnel,
planning and employment planning
Discuss what is involved in training the sales force
16.1 INTRODUCTION
In this chapter we will discuss the relationship between a firm’s marketing plan, sales force and the
sales force’s budget. The organisation of a sales force will be described, the two major elements
involved in staffing the sales force and what is involved when training the sales force.
16.2 GOLDEN RULE: MANAGEMENT
Management in a sales organisation is a bit different to other departments. In a sales organisation,
the sales personnel managers fulfil the same role of a sports coach. They are paid to keep
salespeople on track in order to ensure customers satisfaction with a product and service.
Even if salespeople do not have the characteristics needed, they should ensure that customers feel
that they have. These characteristics include caring, joyfulness, helping and the unselfish treating of
others.
16.3 TRANSITION FROM SALESPERSON TO SALES MANAGER
There is a difference in qualities which one will usually find between a salesperson and a sales
manager. When a salesperson is promoted to a sales manager’s job, there are some changes and
transitions that the person will have to go through. Thee major changes are as follows.
Qualities are different for salespeople and sales managers especially in attitude towards job and
responsibility.
Perspective changes
Goal changes
Responsibility changes
Satisfaction changes
Job skill requirement changes
Relationship changes
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 134 of 168
The transition from salesperson to sales manager will typically move through 7 predictable phases as
they don’t make the transformation overnight. Together with these seven phases, also make sure you
understand the problems new managers experience as well as the key to making a successful
transition.
Revision Question 73
How do the qualities for salespeople and sales managers differ?
16.4 WHAT IS THE SALARY FOR MANAGEMENT
Most people strive towards a higher position. This is due to the personal reward
of operating and managing an organisation as well as the financial rewards
linked to a ‘promotion’. This is based on the assumption that larger
organisation’s usually have higher revenues, heavier responsibility, and thus
higher remuneration. Salaries are usually related to various different things
mentioned in your prescribed textbook
Revision Question 74
To what do salaries relate to?
16.5 OVERVIEW OF THE JOB
According to C. Futrell (2014), sales management is the achievement of set goals through 5 functions
being planning, staffing, training, directing and evaluating organisational resources. According to
AMA is defined as the planning, direction and control of personal selling, including recruiting,
selecting, equipping, assigning, routing, supervising, paying and motivating as these tasks apply to
the personal sales force
One major factor that influences a manager’s success is the ability to influence the behaviour of all
involved.
It is important, in terms of effective leadership, for a sales manager to recruit and provide motivation
to a sales force. In order to better understand the basic functions of a sales manager, read through
exhibit 16.3.
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 135 of 168
Revision Question 75
List and briefly explain the five basic functions for sales managers?
16.6 SALES FORCE PLANNING
It is important that the sales force in an organisation also plans in terms of developing plans as well
as strategy and tactics for meeting business objectives. Sales forecasting and budgeting is also a
form of planning from the sales force. It is important that a salesperson understands the difference
between the organisational design and organisational structure.
Not only should the sales force plan, but the organisation should also plan the sales force and how
they will fit into the organisation.
Organisational design: The organisational design is a formal, coordinated process of
communication, authority and responsibility for a sales groups or sales force.
Organisational structure: An organisational structure is a formally defined relationship among jobs
within an organisation. This is usually in the form of an organisational chart.
16.7 STAFFING: HELPING THE RIGHT PEOPLE TO SELL
Staffing is the activity that an organisation does to attract people to work at the organisation. This
comprises of 2 elements, namely people and employment planning
PEOPLE PLANNING: The planning of people (otherwise known as people planning) in an
organisation can be determined by the following four factors:
Sales force size – depends on the product mix, market coverage and nature of the product
being sold
Type of people – through developing a job analysis and job descriptions they can get the right
applicants applying
Job specification – qualifications necessary for the position
EMPLOYMENT PLANNING: The term employment planning refers to recruitment and selection of
applicants for the sales job right from the start of recruiting all the way through to the applicant
accepting the employment offer
Recruitment involves searching for, finding and interviewing people for the job.
The entire process includes understanding what the recruiters are looking for in a candidate, putting
an application letter together which briefly describes the company to the candidate as well as the role
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 136 of 168
and experience the candidate has, then next the candidate will submit a resume. The resume will
either adhere to the requirements and be asked for an interview or it won’t adhere and will be kept on
the database for possible future usage. From the interview you may be asked for a follow up interview
after which a job offer or no job offer will be presented.
Revision Question 76
What is the difference between employment planning and recruitment?
16.8 TRAINING THE SALES FORCE
Organisations focus a lot on training employees especially when it comes to
its sales force. It is important to understand the purpose of training, training
methods, how training takes place as well as who is involved in training.
First things first you need understand the purposes of sales training which
you can familiarise yourself with a list of reasons in your prescribed textbook
There are 3 basic training methods being the following:
Discussion: whereby a case study is presented of a success story and discussion starts around that
or a video tape is shown, where a meeting of a particular salesperson was filmed and discussion can
stem from how well or not well the salesperson conducted the meeting
Role playing: When sales people team up and the one acts out the sale to a hypothetical buyer being
their team mate, the presentation is video-taped and discussed afterwards. Role playing makes it real
for the sales person, having hands-on training is sometimes best for the trainee to learn where they
are going wrong and what they can improve.
On-the-job Training: whereby new salespeople may accompany their managers and learn from
visiting real clients
16.9 WHERE DOES TRAINING TAKE PLACE & WHO IS INVOLVED IN TRAINING
Training can occur in a centralized space whereby all salespeople all over the country needing
training come together to one point, which can be a resort, a conference centre etc. Another option is
decentralized training, whereby it occurs in a branch office or at the salespersons house or in their
car
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 137 of 168
The people involved in the sales training are the corporate staff trainers (the internal trainers who
have an ongoing relationship with the sales force), staff force personnel (the people getting trained)
and outside training specialists (outside company’s specialising in sales training)
16.10 CONCLUSION
By understanding the two major elements involved in staffing the sales force you would now be able
to identify the necessary training the sales force needs. After describing the organisation of a sales
force you would understand the relationship between a firm’s marketing plan, sales force and the
sales force’s budget.
Revision Exercises 16 (Remember the answers are at the back of the learner guide)
1) Which of the following are not examples of purposes of sales training?
a. to add it to your resume
b. Lowering selling costs
c. Obtaining feedback
d. Improving knowledge regarding product, company, competitors and selling skills
2) Which of the following is not a major change a sales person experiences when they
become a manager?
a. Goals change
b. Relationships change
c. Personality change
d. Responsibilities change
3) Mention 3 problems new managers experience and then 3 ways the can overcome these
challenges to make a successful transition
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 138 of 168
Part 4: Managing yourself,
your career and others
Study Unit 17: Motivation,
compensation, leadership and
evaluation
Although most people think and act as if motivation can only be implemented through a salary or pay
cheque, motivation can be implemented in different ways and forms. There is a difference between
remuneration and salary which is very important to understand in the sales sector. This is because
most salespeople receive different forms of remuneration instead of a fixed salary.
“Do your job and demand your compensation - but
in that order.”
Cary Grant
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 139 of 168
LEARNING OUTCOMES
After completing this chapter you should be able to:
Present and discuss the five elements of the motivation mix
Explain the basic methods of compensating salespeople
Review three approaches to leadership and suggest leadership techniques for
improving the sales manager’s effectiveness
Discuss why salespeople must be evaluated, who should evaluate them, when
they should be evaluated, what performance criterion should be evaluated and
how evaluations should be conducted
17.1 INTRODUCTION
Motivation, compensation and leadership would be discussed and all the elements needed to apply
them to a salesperson. We will also discuss why salespeople must be evaluated, who should
evaluate them, when they should be evaluated, what performance criterion should be evaluated and
how evaluations should be conducted.
17.2 GOLDEN RULE: MANAGEMENT
The golden rule of management in the form of motivation, compensation, leadership and evaluation is
all based on the principle of integrity, trust and good moral. Self-centred sales leaders will only look
after their own interests instead of the customer’s interests. This attitude will never work in a sales
environment, which is why it is critical to employ the right person.
17.3 MOTIVATION OF THE SALES FORCE
Sales managers should motivate the sales force at two levels, namely:
Motivation of the individual Salesperson
Motivation of entire Salesforce
According to C. Futrell (2014), motivation means arousal, intensity, direction and persistence.
17.4 THE MOTIVATION MIX
There are five broad factors in the motivational mix being: the basic
compensation plan, special financial incentives, non-financial rewards,
leadership techniques and management control procedures
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 140 of 168
Revision Question 77
What are the five broad factors in the motivational mix and provide a brief description of each?
THE BASIC COMPENSATION PLANS
It is very important that anybody working in sales should realise that a salesperson’s compensation
means something more than just money. When looking at the motivational mix, it is important to
realise that there are other methods of rewarding a person other than just money. There are even
non-financial ways of motivating a person which sales managers could implement. Sales
performance can be rewarded in 3 fundamental ways being: direct financial rewards (salary increase,
bonus), career advancement (larger accounts, bigger territories) and nonfinancial compensation
(recognition dinners, small gifts and certificates).
Straight salary: where the sales person is paid a set salary a month
Straight commission plan: whereby if you don’t sell anything you don’t earn anything, with there
being 2 types of commission straight commission and draw against commission
Combination plan: whereby a proportion of the salesperson’s total pay is guaranteed while some of
it comes from commissions
With each of these methods comes advantages and disadvantages, familiarise yourself with a few of
each
Revision Question 78
In your own words define draw against commission
THE TOTAL COMPENSATION PACKAGE
When choosing a sales career, the salesperson must take the financial and non-financial factors into
consideration. Whereby your pay cheque could be made of finance, as well as incentive plans and 10
additional benefits
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 141 of 168
Revision Question 79
What are the two major parts of compensation?
NON-FINANCIAL REWARDS
Many organisation, use non-financial rewards to motivate employees. For example, Google
employees have fun offices and are allowed to play sports in lunch time. Some salespeople who do
well can be transferred to bigger departments with better opportunities and more challenges or
receive recognition through achievement awards
LEADERSHIP IS IMPORTANT TO SUCCESS
A survey showed that the most important factors to manage a sales force is the sales manager’s
ability to motivate and secondly the ability to lead. Therefore, leadership is also a very important
factor for success. There are 2 extreme types of leadership being Task orientated (telling people what
to do, how to do it and when to do it) to the other end being relationship behaviour (which involves
two-way communication and is people orientated. There are 4 basic leadership styles being: tells,
persuades, participation and delegates.
Revision Question 80
Provide a brief explanation of the four basic leadership styles?
17.5 PERFORMANCE EVALUATIONS LET PEOPLE KNOW WHERE THEY STAND
Acceptable levels of performance should be evaluated to better understand the position an
organisation’s sales force are in, this is where a management control systems is established.
There are many reasons why performance evaluation should be done, when the evaluation should be
done and the performance criteria.
Revision Question 81
When should salespeople be evaluated?
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 142 of 168
17.6 CONCLUSION
After studying this chapter you would be able to understand the evaluation process on salespeople
and what it entitles. You would also now why motivation, compensation and leadership elements is
needed by the salespeople.
Revision Exercises 17 (Remember the answers are at the back of the learner guide)
1) If a salesperson is new to the job and is unsure of how to develop a sales presentation,
the best type of leadership style chosen should be:
a. Participates
b. Delegates
c. Persuades
d. Tells
2) Which of the following is not a reason for a performance evaluation?
a. To review your paycheque
b. To motivate salespeople to improve their performance
c. Appraise a salespersons past performance
d. Develop a sales plan to increase the salespersons future sales
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 143 of 168
ANSWERS TO STUDY UNIT QUESTIONS
CHAPTER 1:
Exercise 1: Why should a salesperson depend on a customer?
Without a customer, there is no sale.
The customer is the purpose, or foundation of the sale.
Customers can easily buy similar product elsewhere.
Exercise 2: Shortly, what does relationship selling mean?
You would draw exhibit 1.10 of your textbook, showing the customer is at the center of the
sales solar system thus showing that your customer is the centre of your organisation, hence
your organisation is customer centric, with the four below characteristics surrounding the
customer.
Service – providing a value added service, Mercedes Benz always ensures your car is
washed after you send it in for a service
Gain Commitment – getting the customers commitment that they do see the need to purchase
the product, this would be done by you addressing their needs correctly
Present product benefits – in terms of presenting the features, attributes and benefits of the
products
Analyze needs – ensure you successfully analyze the customer’s needs, don’t try sell them a
Ferrari when you speaking to a mother with 4 children
Exercise 3: What are the main reasons why a sales job is different to other jobs?
Rewarding
A lot of travelling
Salesperson takes sole responsibility for reputation of the organisation
High level of self-discipline
Salesperson has separate goals from an organisation
Hard work has a direct impact on salary every month
Exercise 4: Name and explain any 4 of the 9 functions of a sales person?
Example: Builds long term relationships with customers – when a customer trusts a sales person a
long term relationship is established, they will continue purchasing from you, you should continue to
go the extra mile for these customers as they are perceived as less effort and a cheaper customer to
maintain than acquiring a new customer
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 144 of 168
Revision Exercises Answers
Question 1: D
Question 2: C
Question 3: Having conceptual skills, is the ability to see the selling process as a whole and the
relationship among its parts. For example selling to a mother would require the sales person use his
conceptual skills and have empathy throughout the entire selling process as she is tired, with less
disposable income, however a sales person could use this to his advantage as she would buy
anything that would make her life easier. Again a sales person conceptual skills would come into
account towards the end of the process offering a flexible payment plan due to the fact that providing
for a baby makes finances tight.
Human skill – is the skill to be able to relate to other people. An example would be a sales person
would need to be able to relate to a mother and then in the next meeting adapt his approach and be
able to talk to a lady high up in the corporate world
Technical Skill – is the mastery of the methods, techniques and equipment involved in selling. An
example is a sales person can’t arrive at a meeting with no idea of how to link his computer with the
projector, or he can’t not try demonstrating a product he hasn’t been educated on how to do it
correctly.
CHAPTER 2
Exercise 5: Write a short definition of marketing in your own words?
Marketing is the activity that creates value for customers and the society at large.
Exercise 6: When selling a product with excellent service, what is the benefit to be drawn from
the salesperson’s point of view?
Profit
Satisfaction of happy customers
Building new relationships
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 145 of 168
Exercise 7: if you were the marketing manager of KFC, provide a short explanation of each of
the 4 p’s being applicable to your business?
Product – The product which will be sold to the customer being the products mentioned on the
menu from chicken burgers, chicken wraps to ice creams.
Price – At what price the product will be sold, this would be influenced if they take an entire
meal it would be cheaper than buying the burger and the chips on their own, thus encouraging
customers to buy the meal.
Promotion – How the product will be promoted, KFC is generally promoted through the
mainstream advertising being television and outdoor media.
Place – Where the product will be sold, the product is only sold at KFC outlets, you have the
option of sitting at the franchise to eat or if they have drive through you can purchase your
meal at the KFC and eat it at home
Exercise 8: Provide a brief explanation of each of the levels of relationship marketing as well
as provide a practical example of each to show your understanding
Transactional Selling: this is when customers are sold to and not contacted again, an example
would be KFC, when going through the drive through on holiday in Durban, when your holiday
is finished you won’t be visiting that branch again
Relationship selling: the seller contacts the customer after the purchase to determine if they
are satisfied and have future needs, for example a blinds company, after installation would
contact you asking if it meets your expectations and also phone every year to see if they need
repairing.
Partnering: the seller works continually to improve its customers operations, sales & profits for
example an engineering software company such as Autodesk, works closely with the big
engineering company’s in training their employees on the latest upgrades as well as new
features to the software as well as constantly trying to improve their way and efficiency of
doing business hence showing better ways to save their massive files.
Exercise 9: a) What are the three roles of consultative selling
They should be committed to helping customers succeed in satisfying their needs in the long
term.
To remain involved with the customer over time.
To remain focused on the customer needs when developing recommendations and
suggesting products
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 146 of 168
b) A salesperson doing consultative selling of requires them to take on 3 roles, briefly explain
each of the roles
The team leader role – whereby the sales person coordinates all the information, resources
and activities need to support customers before, during and after the sale
The business consultant role – the sales person gives advice and service, using internal and
external resources to gain an understanding of customers business and market place
The long-term alley role – Salesperson acts as a helper in meeting the customers’ needs
Exercise 10: What is the key to success?
Understand the target market
Use marketing as a vehicle
Use the 4P’s to aid a salesperson
Revision Exercises Answers
Question 1: D
Question 2: D
Question 3: The purpose of a business is to make a profit, as no business will survive without one, it
is a means to an end. A profit allows for the production of goods/services as well as marketing of
these goods and services. Ultimately the goal of a business is one in which the market place and
work place is a mutually respected environment
CHAPTER 3
Exercise 11: How does a person on the pre-conventional level feel about ethics?
This person is not interested in ethics and would rather look after his/her own interests.
Exercise 12: How does reciprocity fit in with the golden rule?
Reciprocity is beneficial to both parties involved in a sales transaction, however the golden
rule says that a salesperson should do something for the client without expecting something is
return.
Exercise 13: What are the values a salesperson should possess to be ethical?
Honesty
Trust
Following the rules
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 147 of 168
Conducting yourself in the proper way
Treating others fairly
Demonstrating loyalty to the organisation
Carrying your share of the work
Exercise 14: Discuss any 3 ethical problems that organisations can encounter with regards to
their sales force and prove a practical example to show your understanding
Example of just 1: Misusing companies assets: sales person often misuse automobiles, expense
accounts, samples for personal benefit. For example if I am a sales person for a bottling company, an
example of unethical practice misusing companies assets, would be to take samples home for my
child’s arts and crafts day
Exercise 15: Briefly explain any 4 out of the 7 ways in which management can help an
organisation be more responsive
Example: Create ethical structures – creating ethical committees who oversee company ethics and
provide rulings on questionable ethical issues. For example if the workforce feels the amount they are
being refunded for fuel per kilometre is too small, and people have started claiming they have
travelled further to make ends meet, this should be bought forward to the ethics committee who
would rule that this is unethical however they will propose to the board that the amount remunerated
per kilometre should be increased
Revision Exercises Answers
Question 1: C
Question 2a) The term price discrimination means selling the same quantity of the same
product to different buyers at different prices. An example of such would be the Kruger National Park
charging cheaper entrance rates to South Africans than tourists
Question 2b) Reciprocity refers to buying a product from someone if the person or organisation
agrees to buy from you, hence illuminating competition. An example of this would be South Africa
accepting Ethiopia’s coffee as sole provider in return for South Africa being the sole gold provider for
Ethiopia, however this puts all other coffee industries at a disadvantage as they are unable to expand
their business into our country
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 148 of 168
CHAPTER 4
Exercise 16: Briefly explain the black box approach by using a practical example
When a person is exposed to a sales message for example a person looking to buy a car, gets the
entire presentation from the car sales person of its fuel consumption, service plan, speed etc.
However when it comes to the sales person asking for the sale the consumer says no and walks of
the show room floor, the black box is the information in the buyer’s mind that tells us why they buy or
do not buy. For this situation the black box could reveal the information that the only thing the
consumer wanted to do was to take the car for a test drive because his friend said it was an
awesome car, therefore he had with no real intention of buying
Exercise 17: Name a characteristic of a person who is on the conscious level of awareness?
These people know what they want.
Exercise 18: Explain the difference between feature, advantage and a benefit in terms of using
a car as a practical example?
Feature – Physical characteristic, This is the physical characteristics of a product like size,
colour, flavour, shape, taste, uses etc. The VW Golf 6 has a 2L turbo engine.
Advantage – Increase the products attractiveness, This refers to the performance
characteristics. When the product is classified as an augmented product, the advantages can
be used to increase the chances of making a sale. For example, the VW Golf 6 has a built in
GPS which other cars do not usually have
Benefit – Favourable results a customer will receive, This is a favourable result that a
customer receives from the product. Benefits of the VW Golf 6 would be that it can accelerate
0-100 in 6.9 seconds.
Exercise 19: What does a trial close mean and give an example?
The trial close is that question salespeople ask you in the middle of their presentation or
phone call.
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 149 of 168
Exercise 20: Name the four steps that can be used to incorporate the sell sequence into the
trial close?
Show the products features
Explain the advantages
Lead into benefits
Let the customer talk and listen
Exercise 21: Name an example of a product on the extensive decision making category?
Exclusive cars, mining equipment, expensive jewellery etc.
Exercise 22: How does a buyer make decisions? What are the 5 basic steps in the decision
making process?
Need arousal – when the consumer knows that using public transport to get to work is too
unreliable hence the need to buy a car
Collection of information – going on the internet to collect information about all the possible
car brands
Information evaluation – the buyer evaluates his needs being a mode of transport to get him
from point a to b, hence it needs to be affordable and safe
Purchasing decision – he decides to go with a Chevy Aveo as it is within his budget and has
airbags for safety
Post purchase thinking process – the buyer’s needs will be exceeded when the car arrives
with a bottle of champagne and the fuel consumption is incredible.
Exercise 23: What does a potential customer need in order to make the final buying decision?
Customer should perceive a problem, desire to fulfil need, realise that the product will satisfy
needs, a will to buy and the necessary resources.
Revision Exercises Answers
Question 1: A
Question 2: C
Question 3: Purchase dissonance is experiencing tension over whether the right decision was made
in buying the product. An example of such is when woman go shopping and they buy a new pair of
shoes, knowing full well they have an entire cupboard full of shoes, they get home and they can’t
really find an outfit to wear the shoes with, they start doubting if they should have bought the shoes in
the first place, this is an example of purchase dissonance
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 150 of 168
CHAPTER 5
Exercise 24: Name the elements of communication?
Source, encoding process, message, medium, decoding process, receiver, feedback and
noise.
Exercise 25: What does ideal-self mean?
How the person sees himself/herself or their personalities
Exercise 26: Which buying style will a customer have when he/she wants everything in an
organised order?
Thinker style
Exercise 27: Name different messages of body language a salesperson can use to interpret
how a customer feels?
Acceptance signals
Caution signals
Disagreement signals
Revision Exercise Answers
Question 1: A
Question 2: D
CHAPTER 6
Exercise 28: Name the different ways in which a salesperson can obtain knowledge on how to
sell products?
Only through sales training and experience.
Exercise 29: Provide 4 examples of possible company knowledge a salesperson can include
in their sales presentation
The growth of the organisation. The customers would like to know that the organisation is
successful and that the product warrantee and after sales service is still applicable after the
purchase has been made.
The organisational policies. An example of a policy is a warrantee that states that if the
product breaks within the first year, it will be repaired free of charge.
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 151 of 168
The organisational procedures. This is the way in which the organisation handles and
processes orders for example. The salesperson should know how long the process will take to
get the product to the customer and needs to explain this process to the customer.
The production. The salesperson would need to know how the production of the organisation
works. The customer could ask for 200 units of a certain product. The salesperson would
need to know whether the organisation would be able to produce 200 additional units and how
long it will take.
What service facilities the organisation has. This is very important to a customer as they want
to know that the salesperson and the organisation will not ‘disappear’ after the purchase has
been made.
Exercise 30: What are the categories of typical product questions a customer would ask? Why
is it important to know these categories?
Product performance
Physical size and characteristics of the product
How the product operates
Specific features and, advantages and benefits
How well the product sells
A salesperson needs to prepare so that he/she has the answer before the customer asks it.
Exercise 31: Who are the role players in a distribution channel and provide an example of
each of them?
Producer – the farmer farming the fruits and vegetables
Wholesaler – The PNP wholesale factory, which collects the stock from the producer and
packages it for it to be distributed to all the different retailers
Retailer – The PNP Hyper, PNP Supermarket & PNP Mini market
Customer – the end user of the product
Exercise 32: Name the six basic types of advertising programs that an organisation can use to
get through to the customer?
National advertising which is designed to reach all users of the product
Retail advertising used to reach people within a particular geographic area
Co-operative advertising – advertising the retailer conducts with cost paid for by the
manufacturer. For example, PNP advertising the new Sony Television, and its features on
television, at a special price only at PNP
Trade advertising – undertaken by the manufacturer and directed towards the wholesaler or
retailer
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 152 of 168
Direct mail advertising – mailed directly to the consumer, this to be a huge part of readers
digest advertising, whereby you would get mail delivered to your door of a catalogue of the
latest books available
Exercise 33: How can a product price be determined?
By considering the satisfying attributes for which a customer is willing to exchange money for
the product
Exercise 34: What is the difference between the internet and the World Wide Web?
Internet is a global network connecting millions of computers in more than 100 countries
The WWW is a complete set of documents on the internet which can be called the
infrastructure of the internet
Exercise 35: What does Netiquette mean?
It is a term used for etiquette on the internet.
Revision Exercises Answers
Question 1: C
Question 2: B
Question 3: Personal Productivity
Contact management software is a listing of all customers and suppliers contact details which
a salesperson gains through the course of business
Calendar management is a function that will make remembering an appointment easy
Automated sales plan is where an automatic reply can be sent to customers immediately after
an initial sales call – normally to thank them for their time with contact details, should they
wish to contact the salesperson again.
Geographic information system allows a salesperson to view and manipulate customer’s
information on an electronic map.
Computer based presentation such as PowerPoint can be used to imbed video clips, sound
clips, pictures etc.
CHAPTER 7
Exercise 36: What are the two main categories?
New customers
Repeat (existing customer)
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 153 of 168
Exercise 37: Name the two main reasons why salespeople look for new prospects?
To increase sales and to replace customers who are lost over time
Exercise 38: What does the leaking bucket concept mean?
The leaking bucket concept is a representation of salesperson that needs to find new
customers or sell more products to customers as the older customers reduce
Exercise 39: Name and explain 5 prospecting methods?
a. E-prospecting is a new method of prospecting online through websites and email. This is used
by most organisations these days.
b. Cold canvassing is when a salesperson calls random people presenting their product in the
hope that a customer will like the idea. This would usually be used by real estate agents or
banks.
c. Chain customer referral is a method of asking a customer for referrals. When the referral
changes into a customer, the salesperson would ask for referrals.
d. Orphaned customers are customers who left the organisation which a salesperson will contact
again.
e. Sales lead clubs are groups of salespeople in various fields who share leads and prospecting
tips.
Exercise 40: For which sources can a group of prospective customers be gained?
Leads
Referrals
Orphans
Own customers
Exercise 41: Why do many salespeople not ask for referrals?
Clients do not want to provide referrals as they are afraid of upsetting friends and relatives.
Clients do not want friends to think they are talking about them behind their backs.
Clients may believe in the product but not in the salesperson.
Clients fear the salesperson may not be around for the years to come.
Revision exercises answers
Question 1: D
Question 2: C
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 154 of 168
Question 3: Does the prospect have the money to buy – Does the product you are trying to sell them
fit with in their budget, does the consumer have disposable income to purchase the product you are
offering them
Does the prospect have the authority to buy – in terms of a child buying a toy, they don’t have the
authority to buy it even though there clearly seems to be a need, the person of authority that is
actually is going to do the purchasing is the adult, therefore you would need to be able to recreate
that need and get the buy-in from the parent
Does the prospect have the desire to buy: is there an actual need for this product or is the consumer
just doing window shopping, does the consumer see a need to purchase your product
CHAPTER 8
Exercise 42: Name the ten steps of creating a strategic relationship with a customer?
Prospecting
Pre-approach
Approach
Presentation
Trial close
Determine objection
Meet objections
Trial close
Close
Follow-up and services
Exercise 43: Name the customers mental stages they would go through while a salesperson is
presenting a product?
Attention
Interest
Desire
Conviction
Purchase
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 155 of 168
Revision Exercise Answers
Question 1: C
Question 2: Attention- this is about getting the prospects attention, which can be hard
sometimes. Perhaps it is you making an interesting first slide, or raising your voice slightly before the
presentation begins.
Interest – before you approach them you have done research to understand the company’s different
buying motives, why do they need your product, therefore in the presentation you need to address
this specific need to get interest
Desire – this is to bring prospects from having a luke warm interest in your product to having a boiling
hot interest in your product. Hence if you were selling an IPad, luke warm would be the product, but
such an expensive product going on sale, to create the boiling point it would mean a price reduction
to create the desire
Conviction – in this step you try to develop a strong belief that the product you are offering is the best
suited to their needs, with regards to the IPad, this could be for an academic institution saying only an
iPad allows you to download textbooks for students in an easily readable format
Purchase or Action – where the prospect takes action by purchasing, for example would you like me
to get one out the store room and gift wrap it for you, it is forcing the customer to take action
CHAPTER 9
Exercise 44: Define conference selling?
An organisation will send their employees to a customer in order to resolve a problem or for a
sales opportunity.
Exercise 45: Define a formula presentation?
The salesperson will have built a relationship with the customer through repeat sales. This
presentation will usually take around a half an hour as it is a known customer.
Exercise 46: List a few things a salesperson should accomplish in the beginning of the sales
presentation?
Give a Proper Introduction
Establish Credibility
Provide an Account List
State Your Competitive Advantage
Quality Assurance
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 156 of 168
Behaviour Styles
Exercise 47: What is the most important outcome of negotiations?
A ‘Win-Win’ situation
Exercise 48: What are the three parts of a presentation?
Presenting the product
Share the marketing plan
Share the business proposition
Revision Exercise Answers
Question 1: A
Question 2: The 3 important parts to a sales presentation are discuss product, present
marketing plan and explain business proposition
Discuss Product – it is in this section of your presentation you will talk all about the features,
attributes and benefits of the car, especially within the car industry there are a lot of features a sales
person can use to see, from colour of the car, to ABS brakes, air-conditioning and sunroof.
Present Marketing Plan – this is when you present the maintenance plan, warranty plans and in
particular with a car sales man you would show the customer the service plan of the car as well as
when they can expect the car to arrive
Explain Business proposition – this would be the nitty and gritty’s of the deal, in your presentation you
would talk about the different financing options and discounts
CHAPTER 10
Exercise 49: How can a salesperson maximise the possibility of a successful approach?
Helping others
Exhibiting the product and/or business knowledge
Expressing the desire to solve the buyer’s problems and satisfy needs.
Choosing the correct approach
Display service attitude
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 157 of 168
Exercise 50: What are the three important objectives a salesperson should achieve?
Uncover needs
Determine if prospect wishes to fulfil needs
Try to involve the prospect in order for him/her to share needs. This can be done by asking
questions
Exercise 51: Give an example of a direct question?
Does my product offer you everything you need?
Exercise 52: Why does a salesperson need to be flexible?
To be able to adjust a sales presentation to the customer’s needs.
Revision Exercise Answers
Question 1: An example of the shock approach is when a car wheel sales person says
that did you know with the current tread on your tire you will have to break 8 meters
before you want to come to a complete stop, however the average time it takes a driver to stop is 4
meters, so you could be finding yourself faced with a very dangerous situation
An example of curiosity approach would be giving the number 50 at the very start of your
presentation and then at the end you say are you still wondering why you holding the number 50 in
your hand, it is because through our product your productivity of your staff will increase by 50%
An example of opinion approach is used by a new sales person, saying that I am new to the industry
but I have been hearing word that after sales service is particularly poor in this industry, what’s your
opinion on this, this will show you what the real needs of the customer are in terms of after sales
service
Question 2: C
CHAPTER 11
Exercise 53: Name the three essential steps in a presentation?
Step 1: Discuss the features, advantage and benefits of the product with the prospective
customer.
Step 2: Present the marketing plan of the selling organisation.
Step 3: Explain the business proposition which shows the customer what he/she is paying in
relation to the benefits gained.
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 158 of 168
Exercise 54: Name three visual aids that can be used?
Product itself
Charts, graphics
Photos and videos
Exercise 55: Why do salespeople use visual aids, dramatisations and demonstrations?
Capture attention and interest
Create two-way communication
Involve the prospect through participation
Afford a more complete, clear explanation of the product
Obtain positive commitments on product’s single features, advantages and benefits
Exercise 56: List 4 ways a salesperson can handle interruptions within a sales presentation
Wait quietly and patiently until the attention is regained.
Briefly restate selling points that the prospect was interested in.
By showing the product, using other visuals or asking questions, the salesperson can
determine if interest is regained.
Once attention is regained, the salesperson can move on or deeper into the presentation.
Revision Exercises Answers
Question 1: B
Question 2: A
Question 3: countersuggestion evokes an opposite response from the prospect, for example in the
sales presentation the sales person would ask “is a monthly instalment really what you want” the
customer will reply saying we are such a new business with limited capital so a monthly instalment is
exactly what we want
CHAPTER 12
Exercise 57: What should the salesperson do when an objection is raised?
First determine the objection
Use an objection handling technique
Address the person’s objections
Ask a trial close to ensure that the customer’s question has been answered.
Exercise 58: List the basic points to consider when meeting objections
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 159 of 168
Plan for objections
Anticipate and forestall
Handle objections as they arise
Be positive
Listen - hear them out
Exercise 59: Name the six major categories of objections?
Hidden
Stalling
No-need
Money
Product
Source
Exercise 60: How can technology be used to help respond to objections?
Displaying customer information, like average sales, should be shared with a customer
Revision exercises answers
Question 1: D
Question 2: C
Question 3: The boomerang method is when you are able to turn an objection into a reason to buy,
convincing the prospect that an objection is a benefit. For example the objection could be we can’t
possibly take on a new software program it will impact our productivity, the boomerang response
would be, yes in the beginning it would interrupt productivity but that’s the entire goal of implementing
it to improve your current productivity
CHAPTER 13
Exercise 61: How would a salesperson know when to close?
look at the signs when a customer has reached the conviction stage
Exercise 62: What are the key characteristics that good closers have in common?
Strong desire to close each sale successfully
Positive attitude towards the customer
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 160 of 168
Positive attitude towards the product
Know and understand their customers
Tailor each presentation to suit the specific needs of a customer
Carefully listen to what a customer says in order to define needs
The salesperson will not stop the first time a customer says no to a product.
Exercise 63: What is a common reason for difficulty in closing?
Because they are not comfortable to close due to confidence
Exercise 64: Which two questions does research answer?
What makes one sales call a success and the other a failure?
Do salespeople make common mistakes which could prevent success?
Exercise 65: What do you do if a customer does not what to buy?
Act as a professional
Find out why the prospect does not want to buy
Revision Exercises Answers
Question1: D
Question 2: C
Question 3: Using courtesy and common sense should give you a limit to the number of times you
should close, however 3 closes is a minimum for successful salespeople, so between 3-5 should not
offend anyone
CHAPTER 14
Exercise 66: What is the golden rule of selling?
Following up
Taking care of customers’ needs
Putting a customer’s needs first
Exercise 67: What are the three levels of relationships?
Acquaintances
Friends
Intimate friends
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 161 of 168
Exercise 68: In your own words, provide your understanding of the term customer service
Refers to the activities and programs the seller provides to make the relationship satisfying for the
customer, it is these activities that add value to the customer that can either lead to them being
satisfied and ultimately a loyal customer, or unsatisfied going to your competitor
Exercise 69: What is customer satisfaction?
Satisfaction is the degree to which satisfaction is provided in terms of delivered products or
services
Revision Exercises Answers
Question 1: C
Question 2: Customer satisfaction means how much the customer likes the product,
service and relationship. Customer loyalty is the customer’s commitment to a company and its
products for the long run. Customer loyalty is more important than customer satisfaction in the long
run because it means that a company value proposition is strong enough to move customers past
short-run satisfaction into long-run loyalty. Concluding that loyal customers will experience a high
level of satisfaction but not all satisfied customers are loyal
CHAPTER 15
Exercise 70: Why would an organisation choose not to use sales territories?
Salespeople might be motivated if not restricted
Some organisations are too small to segmented
Management might not have the needed know-how for territory development
Personal friendship might be basis for attracting customers
Exercise 71: Calculate the breakeven point
= 300 divided by 25%, = 300/0.25 giving you an answer of R1200
Exercise 72: Discuss 3 ways a salesperson can manage their time effectively
Use waiting time: if a salesperson is early for a meeting he can return some sales calls, do a
few cold calls as well as prepare promotional material in a folder for the next meeting
Have a productive lunch break: a salesperson needs to eat anyways so why doesn’t he take
one of his most valued customers to lunch and work on the deal at the same time
Records and reports: most salespeople do their admin work in their free time from filling in
sales records and reports in performance
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 162 of 168
Revision Exercises Answers
Question 1: B
Question 2: B
Question 3: To evaluate performance: whereby individual territory performance is compared to
district performance and district compared to regional
To reduce sales expenses: avoid duplicating efforts if you are in one area, ensure you visit all
customers in that area, this will reduce mileage on the car, fuel as well as time
To obtain thorough coverage of the market: to ensure you cover your territory effectively and
efficiently, not having to go back to areas explored the previous day as you ran out of time to meet
with a customer.
CHAPTER 16
Exercise 73: How do the qualities for salespeople and sales managers differ?
Perspective changes
Goal changes
Responsibility changes
Satisfaction changes
Job skill requirement changes
Relationship changes
Exercise 74: To what do salaries relate to?
Annual sales volume of units managed
Number of salespeople supervised
Length of experience in sales
Annual sales volume of the organisation
Exercise 75: What are the five basic functions for sales managers?
Planning: establishing goals, policies and procedures that will accomplish objectives
Staffing: Attracting, hiring and retaining an effective sales team
Training: Deciding on which mentions to use, who to train and when
Directing: dealing with people positively and persuasively regarding motivation and
compensation
Evaluation: Comparing actual performance to planned performance goals
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 163 of 168
Exercise 76: What is the difference between employment planning and recruitment
Employment planning is the whole process of finding a person through to the end of them signing the
contract, whereby recruiting fits into the employment planning process, being the first step of finding
the people and interviewing them, recruitment happens before the steps of negotiations and offers
being made
Revision Exercises Answers
Question 1: A
Question 2: C
Question 3: Challenges: New managers obviously experience problems stepping into the new role,
these vary from the company expecting the sales person stepping into the new role being fully
functional immediately, the skills of a sales person and a sales manager differ and they often don’t
have a peer group support
Overcoming these challenges, salespeople should adapt a learning attitude, whereby they are open
and willing to learn new things, they should also have realistic expectations that not all their skills
acquired through being a salesperson will work in their new role, with a new role comes new
responsibilities therefore they to a certain extent they should leave their old jobs behind. They have
the responsibility to make the new adjustments, but it shouldn’t be done all at once.
CHAPTER 17
Exercise 77: What are the five broad factors in the motivational mix?
The basic compensation plan
Special financial incentives
Non-financial rewards
Leadership techniques
Management control procedures
Exercise 78: In your own words describe draw back commission
Whereby the firm makes a monetary account for everyone, with an expectation of what an individual
needs to survive, any sales made above this amount is added as commission, if the salesperson fails
to meet this amount the money is deducted
Exercise 79: What are the two major parts of compensation?
Financial
Non-financial
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 164 of 168
Exercise 80: What are the four basic leadership styles?
Tells: whereby the sales manager makes all the decisions exhibiting a task behaviour
Persuades: The sales manager makes the decision however the salespersons cooperation is
sought by explaining what needs to be done and persuading the sales person to carry out the
instruction
Participation: above average levels of relationship behaviour and below-average levels of task
behaviour
Delegates: which shows little direction, low levels of personal contact and little supportive
behaviour
Exercise 81: When should salespeople be evaluated
At the end of each performance cycle which is related to a specific product goals or job
activities
Revision Exercise answers
Question 1: D
Question 2: A
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 165 of 168
GLOSSARY
Adaptive Selling The way in which a salesperson changes to accommodate the needs of a customer.
Augmented product Products, services and benefits in addition to the product
B2B Business to Business
Conference Selling An organisation will send their employees to a customer in order to resolve a problem or for a sales opportunity.
Competitive Advantage The advantage that an organisation has over its competition
Etiquette A way in which people are expected to act and behave
Ethics Doing the right thing when nobody looking
E-selling The sales process on the internet
Manufacturer The creator of a certain product
Marketing Communication Mix The different methods of communicating with customers through marketing
Marketing Mix The different aspects of a product aka 4P’s
Moonlighting When an employee takes on another job in addition to
one’s full time job
Mutually Beneficial Agreement Win-Win situation
Non-verbal Communication Nonverbal communication is a person’s behaviour that creates or represents meaning
Pharmaceuticals Medicines and medical products
Prospect A possible future customer
Prospecting Looking for prospective customers
Reputation Others opinions or beliefs about something or someone
Retail
Relationship Marketing
Sales of goods to the public
Marketing to current customers
Reciprocity
Where all parties benefit from a situation
Referral Directing a salesperson to another customer
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 166 of 168
Sales Force Sales employees for an organisation
Sustainability Working efficiently to insure future availability
Wholesale Selling in large quantities, mostly to retailers
WOM Word Of Mouth. When customers speak to others about a certain product which could create a potential customer
Whistle Blowing A person who raised concern of any wrongdoing
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 167 of 168
LIST OF REFERENCES
Arszulowicz, M. (2011), Whistleblowing in defence of proper action, pp.84.
Brady, D.L. (1987), Determining the value of an Industrial prospect, pp.27.
Couldron, S. (2000), Virtual Manners, pp.31,32.
Fitzpatrick, D. (2001), IBM Executive in Residence.
Gibson et al. (1997), Communication and Management.
Golding, S. (2000), City of San Diego Mayor’s Press Release.
Johnston, P. (2009), Relationship Selling, McGraw-Hill.
Krammick, S. (1994), Expecting referrals: The resurrection of a lost art.
Keefe, L.M. (2008), Marketing Defined, Marketing News, pp.28.
Kruger, E.R. (2010), Top Marketing Strategy: Applying the 80/20 Rule, pp.15.
Lefton, A.P. (1987), The lucky seven: How to roll into sales, p86-89.
Futrell, C. (2014).Fundamentals of selling:Customers for Life through Service.McGraw Hill: New York.
Rackham, N. (1988), SPIN Selling.
Ronicki, K. (1998), Managing channels of distribution, pp.151-162.
Salisbury, F. (1998), Sales training: A guide to developing effective salespeople, pp.8.
Stokes et al. (2008), Marketing: A brief introduction, pp.117.
Business Dictionary. (2013). Available from: http://www.businessdictionary.com/definition/selling-
process.html (Accessed 15 September 2013)
Technopedia. (2013). Available from: http://www.techopedia.com/definition/23326/customer-
relationship-marketing-crm (Accessed 15 September 2013)
Business Dictionary. (2013). Available from:
http://www.businessdictionary.com/definition/consultative-selling.html(Accessed 15 September 2013)
Business Dictionary. (2013). Available from: http://www.businessdictionary.com/definition/ethical-
behavior.html (Accessed 15 September 2013)
The Free Dictionary. (2013). Available from: http://www.thefreedictionary.com/moonlighting
(Accessed 15 September 2013)
The Free Dictionary. (2013). Available from: http://medical-
dictionary.thefreedictionary.com/Ethics+Committee (Accessed 17 September 2013)
Business Dictionary. (2013). Available from: http://www.businessdictionary.com/definition/non-verbal-
communication.html (Accessed 18 September 2013)
Business Dictionary. (2013). Available from:
http://www.businessdictionary.com/definition/persuasion.html (Accessed 18 September 2013)
Business Dictionary. (2013). Available from: http://www.businessdictionary.com/definition/non-verbal-
communication.html (Accessed 18 September 2013)
The Free Dictionary. (2013). Available from: http://www.thefreedictionary.com/probing
Business Dictionary. (2013). Available from: http://www.businessdictionary.com/definition/non-verbal-
communication.html (Accessed 18 September 2013)
Web Books. (2013). Available from: http://www.web-books.com/eLibrary/ON/B0/B66/074MB66.html
(Accessed 18 September 2013)
Business Dictionary. (2013). Available from: http://www.businessdictionary.com/definition/non-verbal-
communication.html (Accessed 20 September 2013)
The Free Dictionary. (2013). Available from: http://www.thefreedictionary.com/Cognitive+dissonance
Business Dictionary. (2013). Available from: http://www.businessdictionary.com/definition/non-verbal-
communication.html (Accessed 19 September 2013)
Webopedia. (2013). Available from: http://www.webopedia.com/TERM/I/Internet.html(Accessed 18
September 2013)
IMM GSM Learner Guide Sales Management SALM/SAM101 Page 168 of 168
© Copyright (First edition) 2014
In terms of the Copyright Act 98 of 1978, no part of this study material may be reproduced, be stored in retrieval system, be transmitted or used in any form or be published, redistributed or screened by any means (electronic, mechanical, photocopying, recording or otherwise) without the written permission of IMM. However, permission to use any material in this work that was derived from other sources must be obtained from the original sources.