Sales Management

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Top Management HR Department Finance Department Marketing Department Sales Management

Transcript of Sales Management

Page 1: Sales Management

Top Management

HRDepartment

Finance Department

Marketing Department

SalesManagement

Page 2: Sales Management

Marketing Department

Marketing MixProductPricePlacementPromotion

Personal SellingAdvertisementSales PromotionPublic Relationing

Sales Management

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Sales ManagementSales Management

““Planning, Directing and control of Planning, Directing and control of Personal Selling, including Personal Selling, including

recruiting, selecting, equipping, recruiting, selecting, equipping, assigning, routing, supervising, assigning, routing, supervising,

paying and motivating”paying and motivating”

““Management of the firms Management of the firms Personal Selling functions”Personal Selling functions”

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Personal SellingPersonal Selling

““Personal communication with Personal communication with consumers/customers through paid consumers/customers through paid personnel of an organization or its personnel of an organization or its

agents in such a way that the agents in such a way that the audience perceives the audience perceives the

communicator’s organization as communicator’s organization as being the source of message”being the source of message”

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History of Personal SellingHistory of Personal Selling

Middle AgesMiddle Ages Modern eraModern era

1919thth century century 2020thth century century

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IndustrialIndustrialRevolutionRevolution

Post-IndustrialPost-IndustrialRevolutionRevolution

War andWar andDepressionDepression

ModernModernEraEra

1800s1800s 1900s1900s 2000s2000s

Evolution of Personal SellingEvolution of Personal Selling

Selling function became more

structured

Peddlers selling door to door . . . served as intermediaries

Business organizations employed salespeople

Selling function became more professional

As we begin the 21As we begin the 21stst century, selling continues to develop, century, selling continues to develop,becoming more professional and more relationalbecoming more professional and more relational

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Contributions of Personal Contributions of Personal Selling: Salespeople and Selling: Salespeople and

SocietySociety

Salespeople help stimulate the economySalespeople help stimulate the economy

Salespeople help with the diffusion of Salespeople help with the diffusion of innovationinnovation

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Contributions of Personal Contributions of Personal Selling: Salespeople and Selling: Salespeople and

the Employing Firmthe Employing Firm Salespeople generate revenueSalespeople generate revenue

Salespeople provide market research and Salespeople provide market research and customer feedbackcustomer feedback

Salespeople become future leaders in the Salespeople become future leaders in the organizationorganization

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Contributions of Personal Contributions of Personal Selling: Salespeople and Selling: Salespeople and

the Customerthe Customer Salespeople provide solutions to problemsSalespeople provide solutions to problems

Salespeople provide expertise and serve Salespeople provide expertise and serve as information resourcesas information resources

Salespeople serve as advocates for the Salespeople serve as advocates for the customer when dealing with the selling customer when dealing with the selling organizationorganization

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Sales PersonSales Person

““An Individual performing for a An Individual performing for a company by performing one or more company by performing one or more of following activities: prospecting, of following activities: prospecting,

communicating, servicing and communicating, servicing and information gathering”information gathering”

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Some common names of Some common names of SalespersonsSalespersons

AgentsAgents Sales consultantsSales consultants Sales representativesSales representatives Account executivesAccount executives Sales EngineersSales Engineers District ManagersDistrict Managers Marketing RepresentativesMarketing Representatives Account Development RepresentativesAccount Development Representatives

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Characteristics of Sales Characteristics of Sales PersonPerson

EmpathyEmpathy Ego DriveEgo Drive Ego StrengthEgo Strength Interpersonal Communication skillInterpersonal Communication skill EnthusiasmEnthusiasm Better listener than talkerBetter listener than talker Relationship OrientedRelationship Oriented Customer OrientedCustomer Oriented PatiencePatience Team PlayerTeam Player Honest, hardworkingHonest, hardworking

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Types of Personal SellingTypes of Personal Selling

Transaction BasedTransaction Based Relationship BasedRelationship Based

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Transaction-Focused vs. Transaction-Focused vs. Relationship Focused Relationship Focused

Short term thinkingShort term thinking Making the sale has Making the sale has

priority over most other priority over most other considerationsconsiderations

Interaction between Interaction between buyer and seller is buyer and seller is competitivecompetitive

Salesperson is self-Salesperson is self-interest orientedinterest oriented

Long term thinkingLong term thinking Developing the Developing the

relationship takes relationship takes priority over getting the priority over getting the salesale

Interaction between Interaction between buyer and seller is buyer and seller is collaborative.collaborative.

Salesperson is customer-Salesperson is customer-orientedoriented

Transaction-FocusedTransaction-Focused Relationship-FocusedRelationship-Focused

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Classification ofClassification ofPersonal Selling ApproachesPersonal Selling Approaches

Stimulus Response SellingStimulus Response Selling Mental States SellingMental States Selling Need Satisfaction SellingNeed Satisfaction Selling Problem Solving SellingProblem Solving Selling Consultative SellingConsultative Selling

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Stimulus Response SellingStimulus Response Selling

Salesperson Salesperson Provides Provides

StimuliStimuli

BuyerBuyerResponsesResponses

SoughtSought

Continue Continue Process until Process until

Purchase Purchase DecisionDecision

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Stimulus Response SellingStimulus Response Selling

Sales message structuredSales message structured Stimuli is repeated until the desired responseStimuli is repeated until the desired response Conditions the prospective buyer to Conditions the prospective buyer to

answering “yes”answering “yes” Used for When product is simple or when Used for When product is simple or when

time limitedtime limited Examples; Sale call by medical Examples; Sale call by medical

representative, selling simple household representative, selling simple household items items

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Mental States SellingMental States Selling

AttentionAttention InterestInterest ConvictionConviction DesireDesire ActionAction

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Mental State SellingMental State Selling

Highly Structured Sales Presentation Highly Structured Sales Presentation (like Stimulus response selling)(like Stimulus response selling)

Sales Person is forced to plan the Sales Person is forced to plan the presentation prior to sales callpresentation prior to sales call

Difficult to predict customers mental Difficult to predict customers mental statestate

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Mental State SellingMental State Selling

AttentionAttention Get your customer excitedGet your customer excited Get your customer to like youGet your customer to like you

InterestInterest Interview to create interestInterview to create interest Try to find wants and need of the customerTry to find wants and need of the customer

ConvictionConviction Tell your customer what there is for himTell your customer what there is for him Tell your customer the product is going to fullful his Tell your customer the product is going to fullful his

needsneeds DesireDesire

Overcome his hesitationOvercome his hesitation CloseClose

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Need Satisfaction SellingNeed Satisfaction Selling

Uncover and Uncover and Confirm Buyer Confirm Buyer

NeedsNeeds

Present Present Offering to Offering to

Satisfy Buyer Satisfy Buyer NeedsNeeds

Continue Continue Selling until Selling until Purchase Purchase DecisionDecision

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Need Satisfaction SellingNeed Satisfaction Selling

This Method focuses on customerThis Method focuses on customer Customer response dominates early Customer response dominates early

portion of sales interactionportion of sales interaction Salesperson more focused on Salesperson more focused on

customer than being defensivecustomer than being defensive

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Problem Solving SellingProblem Solving Selling

DefineDefineProblemProblem

GenerateGenerateAlternativeAlternativeSolutionsSolutions

ContinueContinueSellingSelling

untiluntilPurchasePurchaseDecisionDecision

EvaluateEvaluateAlternativeAlternativeSolutionsSolutions

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Long-term AllyLong-term Ally

Consultative SellingConsultative Selling

The process of helping The process of helping customers reach their customers reach their

strategic goals by using strategic goals by using the products, service, the products, service, and expertise of the and expertise of the selling organization.selling organization.

Strategic OrchestratorStrategic Orchestrator

Business ConsultantBusiness Consultant

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The Sales Process: The Sales Process: Selling FoundationsSelling Foundations

Possess Excellent Possess Excellent Communication SkillsCommunication Skills

Understand Buyer BehaviorUnderstand Buyer Behavior

Be Trustworthy and Be Trustworthy and Behave EthicallyBehave Ethically

In order to be successful in today’s global business In order to be successful in today’s global business environment, salespeople must have a solid relationship environment, salespeople must have a solid relationship building foundation. They must: building foundation. They must:

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The Sales Process:The Sales Process:Selling StrategySelling Strategy

In order to be successful in today’s global business In order to be successful in today’s global business environment, salespeople must also think and act environment, salespeople must also think and act strategically. The must develop strategies for:strategically. The must develop strategies for:

Their Sales TerritoryTheir Sales Territory

Each Sales CallEach Sales Call

Each CustomerEach Customer

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The Sales ProcessThe Sales Process

• Prospecting• Preapproach• Presentation Planning• Approaching the Customer

Developing Developing Customer Customer

RelationshipsRelationships

Initiating Initiating Customer Customer

RelationshipsRelationships

Enhancing Enhancing Customer Customer

RelationshipsRelationships

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The Sales ProcessThe Sales ProcessSalespersonAttributes

• Sales Presentation Delivery • Earning Customer Commitment

Developing Developing Customer Customer

RelationshipsRelationships

Initiating Initiating Customer Customer

RelationshipsRelationships

Enhancing Enhancing Customer Customer

RelationshipsRelationships

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Adding Value through Follow-up, Self-leadership, and Teamwork

The Sales ProcessThe Sales Process

Developing Developing Customer Customer

RelationshipsRelationships

Initiating Initiating Customer Customer

RelationshipsRelationships

Enhancing Enhancing Customer Customer

RelationshipsRelationships

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Personal Selling ProcessPersonal Selling Process

Prospecting and QualifyingProspecting and Qualifying Identifying Potential CustomersIdentifying Potential Customers

PreapproachPreapproach Learning as much as possible about potential customer prior to making Learning as much as possible about potential customer prior to making

a sales calla sales call ApproachApproach

Meets the customer for the first timeMeets the customer for the first time Presentation and DemonstrationPresentation and Demonstration

Benefit of product are presentedBenefit of product are presented Understanding need is importantUnderstanding need is important

Handling ObjectivesHandling Objectives ClosingClosing

Asking for the orderAsking for the order Follow UpFollow Up

Helps ensure customer satisfactionHelps ensure customer satisfaction