Sales Management

Objectives of Sales Management

1. Sales Volume 2. Contribution to Profits 3. Continuing Growth

Responsibilities of sales Managers

1. 2. 3. 4. They recruit, select and train sales personnel's Provide them with reasonable assignments and goals Motivate them to optimum effort Coordinate with other activities like advertising, marketing activities of the distributive network 5. Implementation of the overall marketing strategy. 6. Control the personal selling efforts assuring achievement of sales objectives. 7. They build and maintain an effective sales organisation

Definition of Personal Selling Personal selling involves oral conversations, either by telephone or face-to-face, between salespersons and prospective customers.

Roles of Personal Selling

a. Identifying decision makers, decision processes, and qualified buyers b. Promoting to corporate, travel trade, and other groups c. Generating increased sales at the point of purchase d. Providing detailed and up-to-date information to the travel trade e. Maintaining a personal relationship with key clients f. Gathering information on competitors promotions

Three Categories of Personal Selling

a. Field sales b. Telephone sales c. Inside sales

Diversity of Personal Selling Situations

Group A (service selling) 1.Inside Order Taker. 2.Delivery Salesperson 3. Route or Merchandising Salesperson 4. Missionary 5. Technical Salesperson

Diversity of Personal Selling Situations

Group B (developmental selling) 1. Creative Salesperson of Tangibles(vacuum cleaners, automobiles, siding , encyclopedia) 2. Creative Salesperson of Intangibles(Insurance, advertising, educational programms) Group C (basically developmental selling, but requiring unusual creativity) 1. Political, Indirect or Back Door Salesperson. 2. Salesperson Engaged in Multiple Sales.

Trends in Selling
Controlled Word of Mouth Customer Information Sharing Mobile and Web Computing Electronic Sales Presentations Electronic Sales Training Use of Customer Teams

 Trend: Cross-Selling: work door-to-door and phone call by phone call to line up new customers and squeeze additional orders from existing ones. Divide and Conquer: It's called cross-selling, or up-selling: a data-driven technique companies use to increase revenue by targeting existing customers with fresh products and services that will most likely match their preferences.

 Fleet of Foot: Fleet with a set of four distinct product linessecurities brokerage, mortgages, small-business banking and personal bankingeach with its own sales force, call center and consumer contact points in branches and on the Web. Channel Conflict: using a cross-selling system as both an analytical tool and the foundation of a marketing campaign, it's possible to figure out how to drive customers from one channel to another without diminishing overall sales.

THEORIES OF SELLING
1. 2. 3. 4. AIDAS Theory of Selling Right Set of Circumstances Buying Formula Behavioural Equation

THEORIES OF SELLING
AIDAS Theory:
ATTENTION INTEREST DESIRE ACTION SATISFACTION

For exampleSecuring attention Telling about RO water purifier and its quality to purify water Gaining Interest by showing flipcharts, presentations and brochures and also focusing on purity and health of the family members. Kindling Desire to make them use the RO water purifier for their use Induction consumer purchase the product due to its effectiveness in providing pure and germ free water Building Satisfaction appreciate the customer by saying that he has made the good purchase by relating its health factor .

RIGHT SET OF CIRCUMSTANCES THEORY

This theory sometimes is also called Situation Response theory, had its psychological origin in experiments with animals and holds that the particular circumstances prevailing in a given selling situation cause the prospect to respond in a predictable way. If the sales person succeeds in securing the attention and gaining the interest of the prospect, and if the salesperson presents the proper stimuli or appeals, the desired response will result.

This is a seller oriented theory: it stresses the importance of the salesperson controlling the situation, does not handle the problem of influencing the factors internal to the prospect, and fails to assign appropriate weight to the response side of the situation response interaction. For example Suppose you provide a Paying guest accommodation as well as provide Tiffin services to those living in PG as well as to others and charge for it.

Buyers Formula
This theory is known as Buyer-oriented theory .It looks out at buyers side i.e. needs and expectation . The theory supports the thinking process that goes on in prospects mind that causes decision to buy/not to buy.

Buyers Formula
Buying Formula Need (problem) solution purchase . Need (problem) solution purchase satisfaction. Need (problem) solution purchase satisfaction/dissatisfaction. Need/problem product & services and Trade name , Purchase satisfaction, Pleasant feeling.

It may be said that

(1)If the prospect does not feel a need or recognize a problem that can be satisfied by the product or service, the need or problem should be emphasized. (2)If the prospect does not think of the product or service when he or she feels the need or recognizes the problem, the association between need or problem and product or service should be emphasized. (3)If the prospect does not think of the trade name when he or she thinks of the product or service, the association between the product or service or trade name should be emphasized.

 (4)If need or problem, product or service and trade name are well associative, emphasis should be put upon facilitating purchase and use. (5)If competition is felt, emphasis should be put upon establishing in the prospects minds the adequacy of the trade name product or service, and pleasant feelings towards it.

Behavioural Equation
Four essential elements included: 1. Drive: a strong internal stimuli that impel the buyers response i)Innate drive (psychological) -ii)learned drive (status/social) 2. Cue :weak stimuli when the buyers respond. i)Triggering cue-activates decision process for given product. ii) Non triggering cue influences the decision process but not activate. iii) Specific product/information-also functions as triggering cue.

Behavioural Equation
3. Response: What buyer does? 4. Reinforcement: event that strengthens buyers tendency of response. B= P X D X K X V. B=Response. P= Predisposition/inward response tendency habit. D= Present drive level. K= incentive potential i.e. value of the product/potential satisfaction of the buyer. V= Intensity of all customer.

The Personal Selling Process

FOLLOWING UP CLOSING THE SALE HANDLING OBJECTIONS MAKING THE SALES PRESENTATION APPROACHING THE PROSPECT

Pre approach: QUALIFYING

PROSPECTS PROSPECTING: IDENTIFYING POTENTIAL CUSTOMERS

The Personal Selling Process

Sales Process
The set of steps a salesperson goes through in a particular organization to sell a particular product or service.

Steps in the Selling Process

Generate Generate Leads Leads Qualify Qualify Leads Leads Probe Probe Customer Customer Needs Needs Develop Develop Solutions Solutions Handle Handle Objections Objections Close Close the the Sale Sale Follow Follow Up Up

Time Spent in Key Steps of Selling Process

Key Selling Steps Traditional Selling Relationship Selling

Generate Leads Qualify Leads Probe Needs Develop Solutions Handle Objections Close the sale Follow-up

High Low Low Low High High Low

Low High High High Low Low High

What is Prospecting?
It involves locating and qualifying the individuals or businesses that have the potential to buy a product.

What is a Lead?
A person or a business that might be a prospect is a lead.

How to quality the leads?

Is there a real need? Is the prospect aware of the need? Is there a desire to fulfill the need? Does the prospect believe a certain product can be beneficial? Does the prospect have the finances and authority to buy? Are potential sale large enough to be profitable to me?

Prospecting Methods
Blind prospecting(Networking) Cold calling or canvassing(direct mails, e-prospecting, observation, Telemarketing) Sales blitz (public exhibitions and demonstrations, get published) Lead prospecting(customers referrals, sales lead clubs)

Generating Leads
Advertising Advertising Internet InternetWeb Web Site Site Publicity Publicity Direct Direct Mail/ Mail/ Telemarketing Telemarketing Networking Networking Cold ColdCalling Calling Trade TradeShows/ Shows/ Conventions Conventions

Referrals Referrals

Company Company Records Records

Sources Sources of of Sales Sales Leads Leads

On OnLine Line http://www.goleads.com http://www.goleads.com http://www.zapdata.com http://www.zapdata.com

Cold Calling
A form of lead generation in which the salesperson approaches potential buyers without any prior knowledge of the prospects needs or financial status.

Qualifying Leads
Characteristics Characteristicsof of Qualified Qualified Leads Leads Recognized Recognized Need Need Buying Buying Power Power Receptivity Receptivity & & Accessibility Accessibility

On OnLine Line http://www.hoovers.com http://www.hoovers.com http://www.dnb.com http://www.dnb.com

Some lead qualification questions to ask

Have funds been allocated for this project? Can the company afford to not move forward on the project? What are the milestones for key decisions? What is the market position of this customer? What is the financial position of this customer? Who are the influencers and decision makers, and who is the ultimate approving authority? Does the customer really understand the value that my product will create for them? Does this lead share characteristics of high-quality leads based on previous experience? Was this a latent need that I brought to the forefront?

I notice you currently use XYZ Vending. How long have they been your supplier? What do you like most about them? If you could change one aspect about your current arrangement, what would it be? What are the most important issues for you? What have your experiences been with ABC Vending? How manydo you sell in an average week/month? Who is your primary customer? Where have you had the most success with your machine(s)?

Probing Questions (Open Ended):

Lets assume Im selling software solutions. If you could improve the way youre doing business today what are some of the steps you would take? What are the most important and missing elements in your products today? What do you like the most about the way your competitors are doing business? Where are the places within your business you think productivity could be improved?

Needs Assessment
A determination of the customers specific needs and wants and the range of options a customer has for satisfying them.

Probing Needs
Product Product or or service service

Salesperson Salesperson must must know know everything everything about... about...

Customers Customersand andtheir theirneeds needs

Competition Competition

Industry Industry

What is it that you value most about doing business with us (me)? In what ways are we (am I) helping you to achieve your goals? In what ways can we (I) improve? If you could change one thing about our relationship, what would it be? How can we (I) make your job easier? Would you be willing to serve as a reference for my product or company? If so, can you elaborate on what you would say about us? If not, why not? What will it take on our (my) part to win that portion of the business you are currently giving to our competition?

RADAR
* "R" is for rapport-building questions, * "AD" is for questions that ask about difficulties, * The second "A" is asking questions to affirm understanding of those difficulties, * The last "R" is asking questions that will tell you the results a person is looking for from your product.

Here are three key tools that sales superstars use in probing a prospect: (1) They set outcomes and goals for the prospect; (2) They listen for the prospect's key words and phrases; (3) They are sensitive to the prospect's emotions during the interviews.

Developing and Proposing Solutions

Sales Sales Proposal Proposal

Sales Sales Presentation Presentation

Proposal writers play an important role in the sales process:

You are responsible for describing the features, benefits, and value of your product or service You need to persuade the prospect that your company and product is the best choice You must organize the information in an appealing and easy-to-read format And you need to ensure it is free of grammar errors

Sales Presentation

Handling Objections
View View objections objections as as requests requests for for information information

Handling Handling Objections Objections

Anticipate Anticipate specific specific objections objections Use Use the the objection objection to to close close the the sale sale

Handling Objections
Hidden Objections Stalling Objections No-Need Objections Money Objections Product Objections Source Objections

Objections - Preventing and Responding

Hidden Objections: Stop Listening until you address Feels you are hiding something Not interested in your opinion Some Gestures and non-verbal communications

Objections - Preventing and Responding

Stalling Objections: I have to think this over Im too busy Im too busy talk to-----first I plan to wait until nest fall

Objections - Preventing and Responding

No-Need Objections: Im not interested The___we have is still good. We are satisfied with what we have now.

Objections - Preventing and Responding

Money Objections: Your price too high I cant afford it Give me a 10% discount and Ill give you an order now. You have got to do better than that.

Objections - Preventing and Responding

Product Objections: Your competitors product is better The machine we have is still good. Ill buy a used one. I dnt want to take risk.

Objections - Preventing and Responding

Source Objections: Im sorry we wont buy from you. I want to work with a more established company. We have done business withfor five years. Why should we change?

Techniques for meeting objections

Dodge. Pass up the objection Rephrase the objection as a question Postpone the objection Boomerang the objection Ask questions regarding the objection Directly deny the objection Indirectly deny the objection Anticipate the objection Compensate for the objection Obtain a third party answer to the objection

Objections - Preventing and Responding

Missing Belief: Need Exists 1. Not Interested. 2. Already have someone. 3. We are satisfied with whom we have now. 4. Don't need it. 5. We do it internally with our own people. 6. I can't use anymore ________.

Objections - Preventing and Responding

Missing Belief: Responsibility & Authority 7. My boss won't authorize anything. 8. It will never get through the system. 9. I have to consult with ________. 10. That's not my area. 11. That has value, but not for me. 12. Home office requires we use ______. 13. We have to use your competitor. 14. He/she isn't here anymore.

Objections - Preventing and Responding

Missing Belief: Discomfort Felt 15. Just send me your literature. 16. Don't have time to discuss this now. 17. No one paying attention to this area. 18. We'll muddle through. 19. It's too much hassle. 20. We won't use it.

Objections - Preventing and Responding

Missing Belief: Need has Priority 21. No money budgeted, call me next year. 22. We're cutting back. 23. Not a priority now. 24. Timing's not right, see me next mo/yr.. 25. I need to think this over. 26. Too many things in front of this.

Objections - Preventing and Responding

Missing Belief: Type of Solution Will Work 27. It just won't work for us. 28. Never had good results with _________. 29. This isn't for us. 30. Don't want to stick our necks out on this. 31. You don't have what we need. 32. Your lead times are too long. 33. Management is taking a different track. 34. I need better quality than what you offer.

Objections - Preventing and Responding

Missing Belief: Capability & Credibility 35. We want someone in our industry. 36. How do you know it will do that? 37. Never heard of you. 38. You're not large enough to handle the job. 39. I don't like your company. 40. I don't like your products/services. 41a. You don't understand our problems (Insufficient diagnostic interview). 41b. You don't understand our problems (Failure to present your situational analysis before the solutions phase of the presentation).

Objections - Preventing and Responding

41c. You don't understand our problems (Unfamiliar with industry/company). 42. Your track record isn't strong enough. 43. Had a bad experience with your company. 44. That can't be done. 45. I don't believe it. 46. I've never heard of your company. 47. You'll have to prove that to me. 48. Never had good results with _________. 49. Your ________ is not good enough. 50. We only buy name brands. 51. You don't have what we need.

Objections - Preventing and Responding

Missing Belief: Best Solution - Competitor Ruled Out 52. Don't see any reason to change. 53. We've got to look at a number of suppliers. 54. Been doing business with them for years. 55. Not sure yours will work as well. 56. My brother-in-law is in the business. 57. Don't see any difference. 58. What makes you different? 59. Why should I buy from you? 60. We do it internally with our own people. 61. We want a band aid not a full work over. 62. Costs too much to change to your products. 63. We just like your competitor's product.

Objections - Preventing and Responding

Missing Belief: Return On Investment 64. Not in the budget. 65. Your competitor does it for less. 66. Your price is way out of line. 67. Costs too much to change to your products. 68. I can't justify spending that much money. 69. My boss will never approve it (money). 70. Your price is too high. 71. We need a better price. 72. Can't afford it. 73. You'll have to do better than that. 74. Sharpen your pencils. 75. No one will use it.

Objections - Preventing and Responding

Missing Belief: Plan will Succeed 76. Can't see how we could implement it. 77. Too much risk. 78. Change is tough to do around here. 79. Too much trouble. 80. They will never buy into it. 81. I'm not comfortable with this idea yet. 82. This is a lot to think about. 83. They will resist doing it. 84. We need time to adjust to this. 85. Don't know how to tell my supplier "no."

Closing the Sale

Look Look for for customer customer signals signals

Closing Closing the the Sale Sale

Keep Keep an an open open mind mind Negotiate Negotiate

When The Prospect is Ready?

Buying Signals Ask questions: How much is it? What is the earliest time I can receive it? Do you have model 6400 in stock? Ask another Persons opinion:

Relaxes and Becomes friendly: Pulls out a purchase order form: Carefully examines the Merchandise:

Essentials of closing sales: Be sure your prospect understands what you say. Always present a complete story to ensure understanding. Tailor your close to each prospect. Everything you do or say should consider the customers point of view. Learn to recognize buying signals. Before you close attempt a trial close. Develop and maintain positive attitude towards yourself and your product and prospects.

Seven Possible Strategies for Closing Sales

1. Trial closes 2. Assumptive close 3. Summary or summary-of-thebenefits close 4. Special concession close 5. Eliminating-the-single-objection or final-concern close 6. Limited-choice close 7. Direct-appeal close

Seven Possible Strategies for Closing Sales

8. Compliment close 9. Continuous yes close 10. Minor- point close 11. T-Account or Balance sheet close 12. Standingroomonly close 13. Probability close 14. Negotiation Close 15. Technology Close.

Closing Techniques Based on Situations

Customer in indecisive Customer is expert or egotistical Customer is Hostile Customer is a friend Customer has predetermined beliefs Customers are greedy, wants a deal

Following Up
Ensure Ensure delivery delivery schedules schedules are are met met

Responsibilities Responsibilities in in Following Following Up Up

Goods Goods or or service service perform perform as as promised promised Employees Employees are are trained trained

Prospecti ng & qualifying

Identify qualified potential customers

Preapproac h
Learn as much as possible about customer

Approa ch

Presentation & demonstratio n

Tell the product story Make a & focus on customer relationship benefits

Handlin g objectio ns

Closing
Ask for an order

Followup

To insure customer satisfaction & repeat business

Overcome customer objections