Sales Management: Shaping Future Sales Leaders

The Selling ProcessThe Selling Process

The Selling Process : 8 Steps

Qualifying & Preparing

Prospecting

Prospecting involves identifying potential customers involves identifying potential customers

for a particular product or service for a particular product or service

Not an easy jobNot an easy job

Can take longer Can take longer

FrustratingFrustrating

May face rejectionMay face rejection

Prospecting

Successful salespeople develop a strategy that involves an organized and active system to generate sales leads and qualify potential buyers.

Networking – an active process of acquiring new contacts and cultivating existing ones.

3 Step strategy Define Target Market

Generate Sales Lead

Qualify Prospect

Identifying Prospects

Sources Present Customer

Former Customers

Cold Calling (knocking the door)

Spotters (sales trainee, internship)

Directories & Mailing List (telephone, trade associations, professional associations)

Referrals (satisfied customers, center of influence, endless chain

Personal Contacts

Trade Shows

Direct Mailing

Sales Lead

Lead Management Program to generate better leads and more prospect

information

Telemarketing and direct mail to generate sales lead

20% of all sales lead and inquiries through advertising, promotion, trade shows & direct mail will result in sales with in six months.

Qualifying Prospects

Avoid selling to people who can not make a buying decision

MAN – MAD Approach

Money – Does potential homeowner have enough money to buy a new house or department manager has enough budget for new office furniture.

Authority – Has authority to buy

Need or Desire – Does the prospect want or need the good or service

Preparing

Pre-Approach - the salesperson tries to gather additional information about the prospect & his/her needs

Who is the customer Who is actual purchase decision maker

Who can influence the decision

Who is responsible for using good or service

With whom the salesperson must maintain a continuing favorable relationship.

Preparing

Pre-Approach - the salesperson tries to gather additional

information about the prospect & his/her needs

Who is the customer

W/S Retail selling – One or two decision makers

Medicines/Medical Equipment – Purchase Committee

Industrial Selling – Different Persons/Departments

Gatekeepers are helpful - secretaries, admin assistants & receptionists

Economic Buyers – CEOs, Users & Technical Personnel

Preparing

The salesperson tries to gather as many additional information about the prospect, as he can

Personal Information Required

• Family background, hobbies, membership of clubs & professional organizations, credit rating, product line, industry reputation

Some companies have developed standard questionnaire to compile relevant information about the customers

Specifying the objectives

Salesperson MUST establish objective of the call

Why am I going on this interview ?

What am I trying to make happen ?

What am I going to recommend ? (if customer agrees)

Developing Strategy

salesperson MUST develop a strategy or plan of actions to achieve his sales objectives

Make an appointment

The most professional way

Call Planning

Other planning preparation requires knowledge Product

Company

Industry

Competition

Prices

Call Planning

SSpecific

Sets a clear direction, where you want to go

MMeasurable compare your achievement versus planned

AAchievable –(yet challenging)

Keeps you motivated, you can do it

RRealistic

Makes you confident, you have some basis, grounds

TTime bound

Makes you organized, disciplined, you have to finish the task/job with in time limit

SMART objectives

Approach

Approach:Approach:

salesperson asks buyer for meetingsalesperson asks buyer for meeting

Presentation

First Impression First Impression

First Impression First Impression

Wear neat clean, conservative clothes

Be clean and carefully groomed

Know the prospect’s name and pronounce it correctly

Be alert and pleasant

Let the prospect offer to shake hands

Forget about your self and concentrate on the prospect

Avoid smoking or chewing gum

Switch off your mobile

Probing

To identify need - To identify need - Ask questions Ask questions • Open ended questionsOpen ended questions

• Reflective questionReflective question

• Directive/LeadingDirective/Leading

• Close ended questionsClose ended questions

Probing

Open ended questionsOpen ended questions• Tell me what you had in your mindTell me what you had in your mind

• Will you please tell me a little bit about your Will you please tell me a little bit about your investment portfolio investment portfolio

• What type of car do you want?What type of car do you want?

Directive/Leading questionsDirective/Leading questions• Designed to point the prospect towards area of Designed to point the prospect towards area of

agreementagreement

Close ended questionsClose ended questions• Put pressure on the prospect to make a Put pressure on the prospect to make a

decision decision

Presentation

salesperson describes the product and how it meets buyer’s salesperson describes the product and how it meets buyer’s needs. Applies feature benefit strategyneeds. Applies feature benefit strategy

FEATUREFEATURE – CHARACTERISTIC OF A PRODUCT – CHARACTERISTIC OF A PRODUCT

Provides/demonstrates evidenceProvides/demonstrates evidence

BENEFITBENEFIT – NEED SATISFACTION CUSTOMER GETS – NEED SATISFACTION CUSTOMER GETS

Gets agreementGets agreement

Presentation

Presentation: salesperson describes the product and how it meets buyer’s salesperson describes the product and how it meets buyer’s needsneeds

Feature Evidence

Benefit Agreement

Presentation

What is required to make an What is required to make an

effective presentation? effective presentation?

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Presentation

Knowledge

- Company

- Customer

- Industry

- Products (Product expert)

- Competition

- Prices

Presentation Techniques

During presentation

- Eye contactEye contact

- Sales storySales story

- Visual aidVisual aid

- SamplesSamples

- ExamplesExamples

- GuaranteesGuarantees

- Testimonials Testimonials (Reports from satisfied customers)

- Demonstration Demonstration (check the product)(check the product)

Presentation

During presentationDuring presentation

- Body languageBody language

- Third party referenceThird party reference

- Ask questionsAsk questions

- Listen carefullyListen carefully

Buying Signal

• VERBAL VERBAL - Price, availability, delivery schedulePrice, availability, delivery schedule

• NON VERBALNON VERBAL- Facial expressions, physical action, gestureFacial expressions, physical action, gesture

- Positive actions- Moving forward, nodding head up & down, - Positive actions- Moving forward, nodding head up & down, open handed gestures, friendly gestureopen handed gestures, friendly gesture

- Arms crossed over the body, movement away from the Arms crossed over the body, movement away from the salesperson ?salesperson ?

Handling Objections

Sales resistance – Actions or statement by a prospect, customer, that postpone, hinder or prevent the completion of a sales

Reasons a buyer offers to not buy your product

Outward expressions of prospect, customer’s doubts or negative feeling about a sales proposal or product

Handling Objections

ObjectionsObjections Reasons a buyer offers to not buy

your product

Helpful to identify customer’s need

Can occur at any time

Salesperson should find out root of concern and resolve it

Type of Objections

Timing- Your proposal is ok but I have to discuss it

with my partner, give me some time - (SR should mention the advantages of the decision

right now)

Price (Prospect’s Financial Constrains)

- I think I can get a better deal elsewhere or X company is offering more economical price

- (additional benefits, durability, longer warranty, after sales service, convenience of repair)

Type of Objections

Source- Your company salesperson misled me about

your product’s performance record or I have heard that your company has a poor delivery record

- (SR should not be defensive or argumentative)

Competition

- I am doing business with abc company for many years and I like Saleem who has done good job for us. Why should I change?

- (ask questions, identify any dissatisfaction with supplier, emphasis competitive edge, guaranty warranty period, after sales service )

Handling Objections

Steps, Techniques, Methods Keep yourself cool

Listen carefully & show patience

Don’t interrupt

Ask questions

Use boomerang technique

Handling Objections

Respond to the objections

Use yes & but technique Boomerang method

(I can’t afford insurance policy)

Comparison method

Compensation method

Case history method

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Customer Objection - Reasons

Why ? Poor sales presentation

Lack of knowledge

Customer need, not addressed

Needs more information

Previous experience

Salesman’s appearance

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Handling Objections

Closing the Sale

Close When salesperson asks buyer for the order/business

“well planned and structured closing techniques move the prospect into making a decision after he convinced that he wants and needs the product”

When to close

Buying signals

Closing Techniques

Direct Close (Need identified, benefits thoroughly explained and

asking for decision)

Trial order close – How does this sound or In your opinion

Special offer (gift) close

Alternative proposal close Assumption close – Prospect will make a

commitment

Action close – SR take an action which will consummate the sale

Closing Techniques

One more yes close (SR restates the benefits & asks for order)

Balance sheet close (SR & prospect list the reason for acting now against

delaying)

Implementation/Follow-Up

Follow-UpFollow-Up After delivery, ensure that the customer

has good experience with product

Training, service, after sales service contract, annual maintenance contract, policies and procedures

Helps to build long term relations

To remove any post purchase doubt

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Implementation/Follow-Up

Customer RelationsCustomer Relations Handle complaints promptly &

pleasantly

Maintain contact with customers

Keep serving the customer

Show appreciation

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Implementation/Follow-Up

Self AnalysisSelf Analysis Were the planned sales objectives

achieved?

What could I have done better?

What did I learn from this call that will contribute to my future success?

The Selling Process : 8 Steps

Qualifying & Preparing

THANKS

Selling Approaches

Enterprise

Business-to-business (B2B) concept Based on not only person-to-person relationships

but on company-to-company relationships

Identify and solve a client’s problems Also called needs-satisfaction selling or

problem/solution selling

Problem Solvingor Consultative

Affiliative

Transactional

Based on the friendship between the salesperson and the individual buyer

Finish sale as quickly and as easily as possible Key to success is making as many calls as

possible to as many people as possible

Quiz - 1Field sales manager Rehan Nawaz knows that one of his salesperson has serious personal problem which has distracted the individual from selling. The poor sales performance may prevent the salesteam to achieve its goals for the quarter.This, in turn, may result in the loss of the yearend bonus for the entire sales team . What should Rehan do?

Sales Management (Mkt 403)