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Vinod Puri
potential accounts
Selected Activities of
Salespeople
Salesperson
Sales Management
5)
5)
Responsibilities
Strategic
Planning
Organizing
Performanc
the sales
e Evaluation
force
Communication
Coordination
Integration
Motivation Recruiting,
and selection,
supervision assimilation
Training and
developmen
t
(Figure
(Figure 1-
1-
6)
6)
Executive Ladder in Personal
Selling
President
Customer
sales/service
representative
Sales Force Management
Challenges in the 21st
Century
Customer relationship management (CRM)
computer-based technology
Selling teams
An international perspective
coordinated.
The goal of the organization should be to generate
long time.
Relationship Marketing:
Four key issues
Open communication
Empowered employees
Customers to be included in planning
Working in teams
Strategic Planning Set
Objectives
Objectives are the broad goals
around which a strategic plan is
formulated.
Formulate
Strategies are the plans of
action.
Strategies
Tactics are the specific activities
that people must perform in order
to carry out the strategy.
Develop Tactics
Company Strategy-
Marketing Objectives and Strategy
Company
Objectives Marketing
Earn 20% ROI
Strategy
Objectives
Increase marketing share 10% Increase market
share 10%
Strategy
Increase share of customer business
Marketing Strategy-
Sales Force Objectives, Strategy and
Tactics
Marketing
Objectives
Increase market share 10%
Sales Force
Strategy
Increase share of customer business
Objectives
Increase share of
customer business
Strategy
Build long-term
customer relations
Tactics
Develop sales teams
Provide bonuses for greater customer share
Strategic Trends
Internet Selling
Multiple Sales Channels
In
this era of global warming, toxic waste,
pollution, and other concerns, marketing
executives must act in a socially responsible
manner if they wish to succeed or even survive.
Customer Relationship
Management
CRM practices
Involve software application utilizing Information
technology.
Aggregate all information about customers into a
single database.
Provide salespeople/customers access to timely and
relevant information.
Allow effective management of every aspect of the
buyer-seller relationship.
Needs a different mindset at the top. Only effective if
8. Follow-up
7. Gaining Commitment
6. Meeting objections
5. Presentation
4. Need Assessment
3. Approach
2. Preapproach
1. Prospecting
1) Prospecting: The method or system by
which sales-people learn the names of people who need the
product and can afford it.
Leads can be identified through…
Referrals from customers
Referrals from internal company sources
Sales manager; Marketing dept.; Telemarketing dept.
Referrals from external agencies
Published directories
Industrial directories, Published data,
governmental records
Networking by the Salesperson
Cold canvassing
Qualifying Leads
A qualified prospect…
Has a need for the products being
sold.
Can afford to buy the products.
the salesperson.
Lead Conversion Ratio: Inquiry to
Decision 12 Months After Inquiring
Plan to
Purchased
buy 25% Purchased
45% No longer in
No longer market
in market Plan to buy
30%
Share of
buyer’s
business if
not followed
up 40%
Share of buyer’s
business if
followed up 83%
Adaptive selling:
When a salesperson alters the initial objectives or
plans of the sales process because of new
information gained from the customer during the
actual call.
The Approach: The first minute or so of
the call.
prospects situation
Seek credibility at every turn.
TM 3-
S Show Feature
E Explain Advantage
L Lead into Benefits
L Let the Customer Talk
the F A B approach
Need of the Dialogue
Meeting Objections
Objections should be welcomed because they indicate
that the prospect has some interest in the proposition.
In responding to an objection…
Listen to the buyer
Clarify the objection
Procastinating objections
Hidden objections
6) Meeting Objections
Objections should be welcomed because they indicate
that the prospect has some interest in the proposition.
In responding to an objection…
Listen to the buyer
Clarify the objection
Procastinating objections
Hidden objections
Trial Close: a great way to
uncover needs;
Push
thethesale
It checks forward
attitude of the prospect
Can be used at the following points
After making a strong selling point
After the presentation
After answering an objection
Immediately before closing the sale
Using Trial Close
Sales Forecasting
Survey of Done by those who will buy Time consuming For new products
buyers the product, so accuracy High cost When there are a small
intentions should be good. number of customers
Customer may not
cooperate
Trend Objective and inexpensive No consideration for major For established products
projections: Use historical data product or market changes When market factors are
-moving average
Require some statistical predictable
-exponential
smoothing analysis For aggregate company
-regression
analysis
forecasts
Sales budget
Revenues Revenues
Expenses Expenses
Sales Territory
TM 13-2
Workload capacity:
Total calls possible per rep per year =
number of daily calls x days selling
Increase/Decrease
Nature of Job:
Lots of presale and post-sale activity Decreases
Nature of product:
A frequently purchased product Decreases
A limited repeat-sale Increases
Market development stage:
New market--fewer accounts Increases
Established market--more accounts Decreases
Market coverage
Selective coverage Increases
Extensive coverage Decreases
Competition:
Intensive Decreases – unless
market is oversaturated
Limited Increases
Breakdown Method of Territorial Design TM 13-9
(Fig. 13-5)
Management must determine
Recruitment
Training
Assimilation
Recruiting and Selection
Problems
Lack of resources
Lack of job specification and qualifications
Qualifications not objectively established
Lack of managerial training
Personal prejudices
Search for managerial talent
Fig. 5-2 Sales Force Staffing Process: Plan for Recruiting & Selection
Recruit Applicants
Select Applicants
Design a Measure Applicants
Make Selection
System For Against Hiring
Decisions
Measuring Qualifications
Applicants
5 x 5 x 50 = 1250
14,000
Number of reps needed = = 112 reps
1250
Fig. 5-4
Source: Erika Rasmusson, “The 10 Traits of Top Salespeople, “ Sales & Marketing Management, August
1999, pp. 34-37.
Recruiting for the Team
• Willingness to share
• Cooperative
• Trusting
• Empathetic
• Accepting of others
• Selflessness
• Leadership skills
Developing and Conducting a Sales
Training Program
Establish program objectives
Content of training
Reinforcement
Determine how training will be reinforced
Improved
Self- Lower
Managemen turnover
t
Sales training
program
objectives
Improve
customer Improve
relations morale
Improved
communica-
tion
Examples of Specific Training
Objectives
Company Understand company goals and objectives
orientation and Understand company selling philosophy
administrative Understand organizational structure
Understand company policies and procedures
skills: Improve call reports
Improve call patterns
Improve time management
Compensation
Evaluation
Leadership Effectiveness
Personal
characteristics
Energy
Creativity
Maturity
Managerial Skills
Problem-solving skills
Interpersonal skills
Communication skills
Persuasive skills
Two Leadership Styles
Transactional Leadership
Those supervisory activities regarding the day-to-day
operation and control of the sales force.
Clarifying rules
Providing verbal feedback
Transformational Leadership
Transforms the basic values, beliefs, and attitudes of
followers such that they are willing to perform at levels
above and beyond expectations.
Articulating a vision
Fostering group goals
Role modeling
Providing individualized support
Tools and Techniques of
Leadership
Personal contact
Sales reports
Telecommunications
Better customer and industry information
Selling assistance
Sales support
Reporting responsibilities
Communication
Printed aids
Meetings
Indirect supervisory aids
Compensation plans
Territories
Quotas
Expense accounts
Sales analysis procedures
Coaching Sales Reps
Threeelements of leadership most often
used to describe coaching
Verbal feedback
Praising salespeople when they do well.
Leading by example
Coaches are role models; salespeople will emulate
them.
Mutual trust and respect
Created through two-way communication
TM 13-3
•Better Performance
•Sales Force Morale
•A sense of common purpose and a belief among members
that group goals can be attained.
Problems Encountered in
Leadership
Poorperformance
Substance abuse
3. Set 4. Compare
performance performances
standards standards
5. Discuss
results with
salespeople
Output Factors Used as
Evaluation Bases
Sales volume
In dollars and in units
By products and customers (or customer groups)
By mail, telephone, and personal sales calls
Sales volume as a percentage of:
Quota
Market potential (i.e., market share)
Gross margin by product line, customer group,
and order size
Orders
Number of orders
Average size (dollar volume) of order
Batting average (orders / calls)
Number of canceled orders
Accounts
Percentage of accounts sold
Number of new accounts
Number of lost accounts
Number of accounts with overdue payment
Quantitative Input Factors Used as
Evaluation Bases
Calls per day (call rate)
Days worked
Selling time versus nonselling time
Direct selling expense
In total
As percentage of sales volume
As percentage of quota
Nonselling activities
Advertising displays set up
Emails/letters written to prospects
Telephone calls made to prospects
Number of meetings held with dealers and/or
distributors
Collections made
Number of customer complaints received
Qualitative Input Factors Used as
Evaluation Bases
Personal efforts of the sales reps
Management of their time
Planning and preparation for calls
Quality of sales presentations
Ability to handle objections and to close sales
Knowledge
Product
Company and company policies
Competitor’s products and strategies
Customers
Customer relations
Personal appearance and health
Personality and attitudinal factors
Cooperativeness
Resourcefulness
Acceptance of responsibility
Ability to analyze logically and make decisions
Ratio Measures
Sales =