Module 2: Sales practices Flashcards
Sales Funnel
The buying process that companies lead customers through when purchasing products
Accounts
Current business clients’ records of transactions
Sales Manager
The person responsible for leading and coaching a team of salespeople
Sales Management
A business discipline which is focused on the practical application of sales techniques and the management of a firm’s sales operations
business-to-consumer (B2C)
Sales made to individual consumers rather than to other businesses
sales channels
A way of bringing products or services to market so they can be purchased by consumers
distribution channels
A chain of businesses or intermediaries through which a good or service passes until it reaches the final buyer or the end consumer
Comparison between B2B and B2C
Company-direct
The producer sells a product to a consumer directly
retailers
Businesses that sell goods to the public in relatively small quantities for use or consumption rather than for resale
wholesalers, distributors, or agents or brokers
Companies that sell goods in large quantities at low prices, typically to retailers
Intermediaries
People or businesses that put buyers and sellers together without taking ownership of the product, service or property
Sales Channels and Intermediaries
Order Takers
Salespeople with responsibility for handling transactions initiated by the customer
order getters
Salespeople who persuade customers to make a direct purchase
Missionary Salespeople
A salesperson who provides information to an individual who will influence the purchase decision.
Trade Salespeople
A salesperson who calls on retailers and helps them display, advertise, and sell products to consumers
Prospectors
A salesperson whose primary function is to find prospects, or potential customers
Technical Salespeople
Sales people who are experts in a specific product or service area. They promote and sell the product by demonstrating how it works along with the benefits it can offer potential customers
Market Influencers
People and organizations who possess an expert level of knowledge and/or social influence in their respective fields
Cold Calling
Making an unsolicited call on (someone), by telephone or in person, in an attempt to sell goods or services
Missionary Salesperson
This is someone who calls on people who make decisions about products but do not actually buy the products. While the missionary salesperson does call on individuals, the relationship is B2B. For example, a pharmaceutical representative might call on a physician to provide the doctor with clinical information about a medication’s effectiveness. The salesperson hopes the doctor will prescribe the drug. Patients, not doctors, actually purchase the medication. Similarly, salespeople call on professors to persuade them to use certain textbooks. But you the student chooses whether or not to actually buy the books.
Trade salesperson
This is someone who calls on retailers and helps them display, advertise, and sell products to consumers. Eddy Patterson is a trade salesperson. He calls on major supermarket chains like H-E-B for Stubb’s Bar-B-Q, a company that makes barbecue sauces, rubs, marinades, and other barbecuing products. He makes suggestions about how Stubb’s products should be priced and where they should be placed in the store so they will sell faster. He also works with his clients’ advertising departments to create effective ads and fliers featuring Stubb’s products. B2B.
Prospector
This is a salesperson whose primary function is to find prospects (potential customers). The potential customers have a need, but for any number of reasons, they are not actively looking for products to meet those needs. Perhaps this is because they lack information about where to look for them or simply have not had the time to do so. Prospectors often knock on a lot of doors and make a lot of phone calls. B2B.
Technical salesperson
This is an expert on a specific product or service area. Technical salespeople participate in sales calls, after the customer shows an interest, to demonstrate or describe the use and applications of the product or service. They work in industries like technology, IT services, manufacturing, and pharmaceuticals.2 The technical sales role is also known as sales engineer in some industries. B2B.
Inside Salespeople
People who routinely work inside the business taking orders and handling transactions
customer service representatives
Employees that handle customer inquiries, questions, and complaints, and general information about the company or products
Outside salespeople
Sales personnel who go out into the field to meet with customers
Account Management
Maintaining a long-term relationship with customers who purchased from the firm in the past
Account-based Marketing (ABM)
Concentrates sales and marketing resources on a clearly defined set of target accounts within a market and employs personalized campaigns designed to resonate with each account
key account management (KAM)
Developing and maintaining long-term, sustainable and mutually beneficial relationships with key accounts (customer)
metrics
Numeric data that allow marketers to evaluate their performance against organizational goals
Inactive accounts
Clients who have not made a purchase for a specified period of time
Passive accounts
Bring in revenue without active sales engagement
Active accounts
Have consistent transactions and engagement with the business
80/20 rule
Suggests that 20 percent of your activities will account for 80 percent of your results
Key Account Management
The process of distinguishing a portfolio of accounts (customers) based on a set of criteria of strategic importance to the company’s long-term success. Then internal resources are allocated to deliver services or products tailored to the customers’ individual needs. KAM involves developing and maintaining long-term, sustainable, and mutually beneficial relationships with these key accounts.
Pareto principle
The law of the vital few, or the principle of factor sparsity, states that, for many events, roughly 80 percent of the effects come from 20 percent of the causes
business development
Activities to develop and implement growth opportunities within organizations
sales quotas
The sales goal or figure set for a product line, company division, or sales representative
power skills
Personal attributes that enable someone to interact effectively and harmoniously with other people
Empathy
The ability to understand and share the feelings of another
Verbal communication
Verbal communication is about language, both written and spoken
Responsive listening
Listening with the intent of understanding instead of replying
Conflict resolution
A set of ideas and ways to reduce sources of conflict
Analytical decision-making
An approach where a leader or manager only makes important business decisions with solid data or information in hand
Power Skills for Salespeople
Product knowledge
Salespeople must entirely understand the product they are selling to be effective in their presentation to the customer. They must have the ability to explain in detail how the product works, what its best features are, and what value it brings to the customer. They must know enough about the product to honestly answer whether that product will solve the customer’s need.
Proposals and contracts
In many sales situations (especially in B2B sales), the prospect requests a proposal—a document that proposes the specific terms of the deal, including the pricing, delivery time frame, and scope of the products or services offered. The next step, assuming the proposal is accepted, is to create a sales contract that includes the negotiated details from the proposal. Companies usually train their sales teams to use a standardized template for proposals and contracts and customize these documents so both parties are satisfied with the terms.
Technology proficiency
The proliferation of technology to help with work performance means that salespeople must rely more and more on tools such as computers, mobile devices, and payment systems (for example, cash registers, credit card machines, mobile card readers) to do their jobs. Being proficient in the use of these technological tools is imperative for good performance. Salespeople must also be familiar with the specific tools used by the company they work for in order to produce documentation, to communicate, and to present information to their leaders, peers, and customers.
Software skills
Salespeople must be proficient in using software such as CRM, competitive analysis tools, social media, and websites to gather data and conduct sales research. Use of these tools helps a salesperson make informed decisions, effectively engage customers, and ideally make sales in a shorter sales cycle. Additionally, it is vital to know workplace productivity apps, online chat and instant messaging tools, and presentation software. Many of these tools are on the market, and each company has its preference. Most importantly, salespeople become familiar with the software their company and its customers use so that they can communicate and present information in a way that builds trust in the brand.
four essential skills needed for any salesperson
Ability to build rapport, Time management, Ability to conduct research, Critical thinking and problem-solving
strategic thinking
A process applied by an individual in the context of achieving a goal or set of goals in an endeavor
strategic partnerships
A partnership in which the buyer and seller commit resources to generate growth for both parties
approach
The salesperson meets the buyer and introduces the company
Six Steps of Sales Process
- Prospecting and Qualifying
- Approach
- Presenting and demonstrating
- Handling Objections
- Closing the sale
- Following up on the sale
Prospecting and qualifying
Searching for potential customers and deciding whether they have the ability and desire to make a purchase
Presenting and demonstrating
Explaining how the product meets customer’s needs
Handling objections
Answering customer questions and concerns
Closing the sale
Agreeing on the terms of the sale and finalizing the transaction
Following up on the sale
Ensuring the customer is satisfied with the product or service that was delivered
