Test one Flashcards
What comes to mind when you here the term Sales Management?
- Retail Sales Management
- Territory Sales Management
- Wholesale Distributor Sales Management
- Customer Sales Management
- Regional Sales Management
- Key Account Sales Management
Marketing Strategy:
specifies a target marketand a related marketing mix.
who specifies a target marketand a related marketing mix.
Sales people
One of the most important, and expensive, tools that company’s wield to promote the purchase of their products
Personal Selling component of Promotion
Promotion:
is concerned with telling the target marketor others in the channel of distributionabout the “right” product for them.
Promotion includes:
- Personal Selling
- Mass Selling
a) Advertising
b) Publicity - Direct Marketing
- Sales Promotion
What are the Top Five Customer Complaints about Salespeople?
- Does not understand our business
- Does not understand their product or how it is applied
- Does not respond to our needs
- Does not listen to our needs
- Should be more of our advocate
What selling approaches exist in professional sales?
Transactional Selling and Relationship Selling
Transactional Selling
- Get new accounts
- Get the order
- Cut the price to get the sale
- Manage all accounts to maximize short-term sales
- Sell to anyone
Relationship Selling
- Retain existing accounts
- Become the preferred supplier
- Price so buyer andseller profit
- Manage all accounts with a focus on long-term mutual benefit
- Concentrate on select accounts
Difference between relationship selling and transactional selling
Transactional selling is primarily found in CONSUMER sales while relationship selling is found in BUSINESS-T0-BUSINESS sales.
What is the most common title for a prosessional sales person?
Account Manager
How do professional sales jobs differ from other jobs?
- Implement the firm’s marketing strategies
- Are authorized to spend company funds
- Represent their company to customers and to society
- Represent the customer to their companies
- Operate with little direct supervision and thus must be self-motivated
- Frequently face rejection
- Need more tact and social intelligence
- Travel extensively, taking time from home and family
- Have large role sets (see Figure 1-3)
- Experience role ambiguity and role conflict–The two dimensions of role stress
What are the primary stressors in a professional sales role?
Role Stress
Salespeople tend to experience Role Stress, which consists of what two dimensions?
Role conflict and Role Ambiguity
Role Conflict
Salespeople are often caught in the middle between what the business customer wants and what the company allows
Role Ambiguity
Because each business customer has a unique set of needs, salespeople often face new situations in which they don’t know what to do
What do customers want most from your sales organization?
More than anything else, customers want their salespeople to provide servicethat solves problemsand responds to their needs.
What are the key sales management responsibilities?
Strategic planning Organizing the sales force Recruiting, selection, assimilation Training and development Motivation and leadership Performance evaluation
Personal Selling and Sales Management are important to…
Our economy–“Nothing happens [in our economy] until somebody sells something.” –The number of sales jobs in the U.S. is large and steadily growing
Individual organizations–Companies typically spend a great deal on their sales force (15-20% of sales)–Salespeople implementthe marketing strategy
To students–Most common first job for college graduates is in entry-level sales–Sales jobs pay well!
Challenges Facing Sales Force Management
1) Selling by, and to, executives
–Important customers expect to interact with top executives
2)Adapting to new technology
–Known as Customer Relationship Management (CRM) and/or Sales Force Automation (SFA) programs
3)Sales force diversity
-Assuring women and minorities are represented in sales jobs of all industries
4)Complex channels of distribution
For example, integrating both outside andinside sales forces to meet customer needs
5)Globalization–Facing increasing competition from foreign firms
How does ethical sales behavior tie-in to sales management?
Sales Ethics and Social Responsibility
Salespeople have the potential to engage in unethical behavior that cheats customers
Sales today is much more ethical than it used to be, yet there are still many high-profile cases of unethical behavior–For example, the Wells Fargo scandal of 2016
Sales managers must strive to maintain ethical standards, which is always the best long-term solution
Personal Selling:
are personal presentations by the firm’s sales force for the purpose of making sales and building customer relationships.
Nature of Personal Selling:
- Is most effective in building up buyers’ preferences, convictions, and actions
- Creates value for your customer(s)!
- Allows all kind of customer relationships to spring up
- Is a company’s most expensive promotion tool
- Buyers feel a greater need to listen and respond to personal selling
How can Salespeople add value in a selling situation to your business customer?
- Provide interface between the buying& sellingcompanies
- Identify/Activate key players in task of co-creating value 3.Build a “bond” by encouraging two-way communication
- Create climate of co-market leadership
- Encourage mutual understanding of each organization
- Facilitate “useful/fruitful” meetings between organizations
- Manage break-down of value added activities between org’s
- Help foster trust and commitment
- Help to provide closure on value added solutions
Salesperson:
an individual representing a company to customers by performing one or moreof the following activities: •Prospecting •Communicating •Selling•Servicing •Information gathering •Relationship building
Role of the Sales Force:
- Serve as a critical link between a company and its customers
- Coordinate marketing and sales
- Implementing sellers “go-to” market strategies
Types of Sales Force Structure:
1) Territorial
2) Product
3) Customer(or market)
Territorial:
Assigns each salesperson to an exclusive geographic territory in which that salesperson sells the company’s full line
Product:
Salespeople specialize in selling only a portion of the company’s products or lines
Customer(or market):
Salespeople specialize in selling only to certain customers or industries (also called “account” and “channel” managers)
8 generic steps in the Selling Process:
Prospecting-> Planning the Sales Call->Making the Sales Call->Needs Assessment->Strong Presentation-> Responding to Objections->Obtaining Commitment-> Follow-up
- Prospecting
The method or system used by the sales force to find new customers.
Identyifying and qualifying leads
Identifying leads
Names and addresses of good prospects can be obtained via:
–Referrals
•Customer referrals
•Internal referrals (e.g., “C” level managers)
–Outside agencies and publications
•LinkedIn, Sales Genie, etc.
–Networking by the salesperson
Qualifying leads
A prospect is qualified if these three conditions are met:
- The customer has a need for the products being sold
- The customer can afford to buy the products
- The customer is receptive to being called on by the salesperson
- Planning the sales Call
- Planning the sales Call
•Include all the information gathering activities salespeople perform to learn relevant facts about the prospects, their needs, and their overall situation
•Key to this step is to define the objectivefor the sales call
–However, the objective may have to be altered on the fly based on new information discovered during the sales call this is known as adaptive selling
- Making the Sales Call
•The first minute or so of the sales call
–Make a favorable first impression
–Establish rapport
•Small talk
•Gain the buyer’s agreement to move into need assessment
- Need Assessment
•Salesperson uncovers buyer’s needs by asking a series of probing questions
•Listening is key
•SPIN technique
–Situation questions
–Problem questions
–Implication questions
–Need-payoff questions- The Presentation
•A discussion of how the product/service will benefit the customer
–Should focus on customer needs
–How does it make their business better
•Built around a forceful product demo
•Prepared presentation vs. Adaptive selling•
Tips for effective presentations
–Keep it simple
–Talk the prospect’s language ($s)
–Stress the application of the product to the prospect’s situation
–Seek credibility at every turn
- 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, clarifythe objection
–Respondto the objection
–Confirmthat it’s no longer a concern
- Gaining commitment
Asking the buyer to commit to some action that moves the sale forward.
- Follow-up
Following up to ensure that the customer is fully satisfied builds trust and is consistent with the concepts of relationship marketing.
Professional Sales:
is the process of selling goods and services to target organizations (your customer) rather than individual customers or households. This variety of “sales” isallbutinvisibletothegeneralpublic.
“Organization” (ie. Company, Firm):
A profit generating corporate or non-corporate entity.
“Supplier” (ie. Vendor):
Companies that sell goods and services to other companies.
“Customer”:
is an economic entity that purchases goods and services.
“Prospect”:
is a potential customer.
“End User Groups”:
The departments of a company that actually use, incorporate, consume or re-sell the products or services that the purchasing department procures.
“Purchasing Departments” (ie. Purchasing):
The department within a company responsible for procuring products and services used, incorporated, consumed or re-sold by the company.
“Purchasing Agent”:
is the individual within a company responsible for the procurement, of all or specific product and services used, incorporated, consumed or re-sold.
Will Consumer Sales experience help us in Pro sales?Source: “B2B Sales”, Trimnell, Chapter 1, 1stedition & Instructor notes…Why or Why not?
- A majority of commonly taught sales tactics were created for Consumer selling!
- Businesses (you are selling to) do not behave like consumers!
- Businesses’ (you are selling to) needs, decision making processes, and communications methodsare usually unfamiliar to most Consumer experienced sales personnel!
Will Consumer Sales experience help us in Pro sales?
“Tactics that work in Consumer sales are ineffective–and sometimes detrimental –when applied to Pro Sales
How and Why is Pro Sales different from Consumer Sales”
What are the 5 primary differences?
1) Greater rewards
2) More complexity
3) Multiple customers and stake holders
4) High dollars and higher stakes
5) Longer deal cycles
1) Greater reward
YOU make more money in pro sales
Most Consumer Sales people have a much lower compensation level because: (1) The products they sell have very low profit margins (2-5%) at the end of the supply chain. (2) of the low level skills and experience needed for most Consumer sales.
