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1. Want to scale our sales force so it can be successful (What size sales force do we want?) 2. To better measure and manage the sales process 3. Look at the sales process as manager so we can design it how the customer buys it 4. Team selling - requires clearly defined roles for each member

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why focus on the sale process

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1) building long term relationships 2) nimble and adaptable sales structures 3) gaining commitment from salespeople 4) shifting sales management styles 5) integrating performance evaluations

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Drivers of change

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a. Assessing customer value b. Focusing on high priority customers

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1. Building long-term relationships with customers

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a. Sales people don't work as individuals anymore b. Sales people follow a 7-step selling method to ensure consistency c. Use a universal reporting system d. Less meetings

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2. Creating sales organizational structures there are more nimble and adaptable to the needs of different customer groups

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a. Removing functional barriers within the organization b. Leveraging the team experience

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3. Gaining grater job ownership and commitment from salespeople

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a. Allows salespeople to use their talents and abilities to successfully secure, build, and maintain relationships with profitable customers

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4. Shifting sales management style from commanding to coaching

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a. The sales organizations that make the best use of technology will have a strong competitive advantage over the others

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5. Leveraging available technology for sales success

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a. The move from transactional to relationship selling along with the use of selling teams and more coaching style management necessitates rethinking the performance evaluation and reward process for sales organizations

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6. Better integrating salesperson performance evaluation

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o Responsive o Knowledgeable (an advocate for them) o Providing the total solution (ex. General contractor) o Understanding of their business and to keep them competitive

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Customers expect us to be

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matched = satisfied exceeded = delighted not met = disappointed - always have to be changing what is satisfactory

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expectations

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ability to think from different angles

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cognitive flexibility

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1. develop a customer driven culture 2. Market segmentation 3. Market adaptability 4. Information technology 5. More intentional in the selection and recruitment process

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sellers response to customer expectations

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cant afford to hire the people we want so we hire the people we can afford

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management theory

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• Negative attitudes towards selling as a career as a result of stereotypes based on the old style of selling (hard selling techniques)

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selling as a career

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1) autonomy 2) sales activities 3) financial rewards 4) favorable working conditions

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attractive aspects of selling

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freedom of action and opportunities for personal initiative

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autonomy

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multifaceted and challenging activities as part of the job - high job variety - something different everyday

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sales activities

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salespeople hired right out of college tend to stat at higher salaries than most other professions and also tend to keep upwell during their careers with the compensation of their peers outside of sales

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financial rewards

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telecommuting with a virtual office and less minute-to-minute direct supervision than most other careers - work-family conflict not encountered

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favorable working conditions

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intrinsic - satisfaction, opportunities for growth extrinsic - given to the sale person by the company

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rewards

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many salespeople move up in the organization from the sales ranks into executive positions

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*moving up in the organization

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- Don't want to give up their high paying jobs to move to managerial positions - Most managerial talent is rewarded appropriately

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*reluctant to move on from sales

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Successful selling often requires different personal skills and abilities than does successful management

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*problems with promotions

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Recent trends toward corporate downsizing, flatter organizational structures, and cross-function selling have changed the number and nature of these opportunities for successful salespeople

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*managerial opportunities

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sales trainee>>salesperson>>sales manager OR brand manager>>sales director/vice president OR marketing director/vice president>>CEO

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*moving up in the organization diagram

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1) listening skills 2) follow-up skills 3) tenacity 4) well organized 5) overcome objectives 6) appreciates all types of people

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selling success factors

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buyer-seller relationships are significantly strengthened when salespeople consistently employ effective listening skills, especially using active listening

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listening

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Hear what they say, how they say it, and what they don't say (NOW)

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listening EXAMPLE

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Ongoing maintenance and management of the relationship (especially between actual face-to-face encounters with the customer)

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follow-up skills

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Do what you say you're going to do (LATER)

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follow-up EXAMPLE

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sticking with a task - Nurturing customer relationships is a long term proposition

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tenacity

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Activity - doing little things to make sure the end result happens (ONGOING)

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tenacity EXAMPLE

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- Content and responsibility of the sales job have increased in complexity - Buying organizations have become more complicated to navigate

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well organized

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Involves communication and interaction with many people within the client firm besides the purchasing agent

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appreciates all types of people

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Objections are a natural and expected part of any sale process

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overcome objectives

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- Developing a trusting relationship over the long run - By working to negotiate win-win solutions

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objections can be minimized by

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listen to how it was said: - they will never buy it - they wont buy it right now

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rejection

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- follow-up - training and recruiting - entertaining - traveling - services - distribution

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non-selling activities

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mostly: administrative tasks and waiting/traveling

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*how salespeople spend their time

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salespeople are doing more tasks because of new technology

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*administrative tasks

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has changed over time, easier to find now because of technology

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*prospecting

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mostly done with technology now

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communication

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retail selling

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B2C

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selling goods and services to end-user consumers for their own personal use

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retail selling

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direct sellers, residential real estate brokers, and retail stores salespeople

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B2C salespeople

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industry selling - products are more expensive and complex - customers are larger - management decisions are broader

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B2B

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the sale of goods and services to non-end user consumers

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industry selling

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1) sales to resellers 2) sales to business users 3) sales to institutions

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B2B customers

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- Salesperson for Hanes sells underwear to a retail store, which in turn resells the goods to its customers - Business sells to walmart

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sales to resellers

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A salesperson for general electric sells materials or parts to Boeing (to another business)

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sales to business users

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- Dell sells a computer to a not-for-profit hospital or government agency - Ex) college, hospital, church - One product could go to 4 categories

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sales to institutions

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1) trade servicer 2) missionary seller 3) technical seller 4) new business seller

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B2B sales jobs

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increase business from current and potential customers by providing them with merchandising and promotional assistance

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trade servicer

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P&G salesperson selling soap and laundry products to chain-store personnel

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trade servicer EXAMPLE

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increase business from current and potential customers by providing then with product information and other personal selling assistance - persuade customers - encourage the sales process

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missionary seller

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- andheuser-busch salesperson calls on bar owners and encourages them to order a particular brand of beer from the local distributor - detailers (pharmaceutical reps) call on doctors as representatives of pharmaceutical manufacturers

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missionary seller EXAMPLE

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increase business from current customers and potential customers by proving them with technical and engineering information and assistance - cross-functional selling teams - customizing a solution

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technical seller

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used because the complexity of many of the products and associated services involved in technical selling make it difficult for any one salesperson to master all aspects of this sale

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cross functional selling teams

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identify and obtain business from new customers - lifeblood of every company, you have to find new customers

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new business seller

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1) prospecting for customer 2) opening the relationship 3) qualifying the prospects 4) presenting the sales message 5) closing the sale 6) servicing the account

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stages in the selling process

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Core competency, fundamental to sales, takes hard work and disciple, happens by organization and design, has a delayed payoff, technology is helpful (access to call lists)

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1) prospecting for customers

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o Trade association and industry directories o Telephone directories o Other salespeople o Other customers o Suppliers o Non sales employees of the firm o Social and professional contacts

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information sources for identifying relevant prospects

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calling potential customers at their home or office, either to make a sale or make an appointment for a field presentation

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outbound telemarketing

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prospective customers call a toll-free number for more information (used to identify and qualify prospects)

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inbound telemarketing

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Transactional strategy, product is in introductory stages of its life cycle, if it is an infrequently purchased durable good, or if the typical customer does not require much service after the sale

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substantial time spent prospecting

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insurance and residential construction

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substantial time spent prospecting EXAMPLE

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Large market shares, sell frequently purchased nondurable products or products that require substantial service after the sale to guarantee customer satisfaction

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substantial time spent servicing existing customers

question

food manufacturers that sell products to retail supermarkets and firms that produce component parts and supplies for other manufacturers

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substantial time spent servicing existing customers EXAMPLE

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initial approach to a prospective customer - research - listen

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2) opening the relationship

question

- determine who has the greatest influence or authority to initiate the purchase process - determine who will ultimately purchase the product - generate interest to - obtain information needed to qualify the prospect as worthwhile

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goals of opening the relationship

question

identify their desires and relative influence

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key decision makers

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inexpensive and routinely purchased products

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deal entirely with the purchasing department

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technically complex and expensive

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seek appointments with influencers and decision makers

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complex purchase decisions - adopt policy of multilevel or team selling

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involves many people within the customers organization

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determine if he or she qualifies as a worthwhile potential customer

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3) qualifying the prospects

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1) do they have a need, will they benefit 2) are they aware of the need so the sale can be made 3) will it be a profitable sale

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qualifies as a worthwhile potential customer

question

- operations - type of products it makes - its customers - future demand for its product - present suppliers - relationship with present suppliers - financial health - credit rating

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learn about the prospects:

question

- Minimum acceptable standards for prospects annual dollar value of purchases - Minimum order size to avoid dealing with very small customers and to improve the efficiency of their ordering processing and shipping operations

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qualification policies include

question

• The salesperson transmits information about a product or service and attempts to persuade the prospect to become a customer (persuading is only short term)

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4) presenting the sales message

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1. Running down competitors 2. Being too aggressive or abrasive 3. Having inadequate knowledge of competitors' products or services 4. Having inadequate knowledge of the clients business or organization 5. Delivering poor presentation

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presentation related complaints

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Best way to convince prospects of a products advantage, particularly if the product is technically complex

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demonstration

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Xerons salespeople learn about their clients office operations so they can demonstrate their products actually doing the tasks they would do after they are purchased

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demonstration EXAMPLE

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o Given to multiple members of a client organization o Involve the buying team and selling team as well as members of management from both sides

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formal presentations

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- Starts with 1st contact - Should be paced by the sales person - Obtaining a final agreement to purchase - The longer it takes to close, the more profit could go down and the risk of losing the sale goes up - Continuous improvement; look back on performance

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5) closing the sale

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- asking for an order (dont assume they want to do it) - ask the client to chose between two alternative decisions

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ways to close

question

Many types of services and assistance must be provided to customers after a sale to ensure their satisfaction and repeat business

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6) servicing the account

question

Customer service increases customer loyalty and fosters long term relationships with customers

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advantages of servicing the account

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- Make sure no problems exist with delivery schedules, quality good or customer billing - Supervise the installation of equipment - Train customers employees in its use - Ensure proper maintenance in order to reduce problems that may lead to customer dissatisfaction

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follow-up

question

Computer analysts, customer service representatives, procurement personnel, users and others

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Individuals in a client firm that may participate in the decision process:

question

- Initiators, users, influencers, gatekeepers, buyers, deciders and controllers - All the people who participate in buying or influencing the purchase of a particular product

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Participants in the buying process (buying center)

question

start the buying process - perceive a problem or opportunity that may require the purchase of a new product or service

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initiators

question

complaints from maintenance workers about outmoded and inefficient equipment might trigger the purchase of new machinery

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initiators EXAMPLE

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people who use or work with the product - could also be the initiator

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users

question

drill press operators might request that the purchasing agent buy drill bits from a particular supplier because they last longer

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users EXAMPLE

question

provide information for evaluating alternative products and suppliers - determine specifications and criteria - usually technical experts from various departments

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influencers

question

flight engineers or pilots often influence purchase decisions on the basis of their experience with the performance of various vendor options

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influencers EXAMPLE

question

control the flow of information to other people involved in the purchasing process - Purchasing agents, suppliers' salespeople, others on the selling and buying teams

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gatekeepers

question

- Screens - secretaries who can decide whose call to put through - Filters - purchasing agent who gathers proposals from 3 different companies and decides what to tell others in the buying center about each company

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types of gatekeepers

question

contacts the selling organization and places the order - authority to negotiate price

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buyers

question

person with final authority to make a purchase decision - sometimes buyers, usually higher executives

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decider

question

determines budget for the purchase (set independent of purchase)

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controller

question

May be an engineer or a line manager who is trying to keep the cost of the new maintenance procedure within a certain budget

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controller EXAMPLE

question

A function of the complexity of the product and situation, the relative importance of the purchase, time pressure to make a decision and the degree of uncertainty about the products efficacy

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perceived risk

question

bring together individuals from around the organization (marketing, customer service, sales, engineering and others) to help the salesperson do their job more effectively

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selling center

question

1) anticipation 2) determination 3) search 4) acquisition 5) evaluation 6) selection 7) performance

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organizational buying decision stages

question

depends on derived demand -a small change in the market can result in a large change in the organizations sales

answer

1. Anticipation or recognition of a problem or need

question

demand for luggage depends on the demand for air travel

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1. Anticipation or recognition of a problem or need EXAMPLE

question

- automatic - computerized - a better way is realized - when focus changes

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recognition

question

- quantity is dictated by demand - communicate what is needed, how much, and when

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2. Determination and description of the characteristics and quantity of the needed items

question

depends on what type of item is being purchased

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3. Search for and qualification of potential suppliers

question

limited to one or a few suppliers that have performed satisfactorily in the past

answer

item has been purchased before

question

minimize the variation in quality of product inputs

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single source suppliers

question

complex and expensive (risky decision) - search for several suppliers to ensure they can select the one with the best product and most favorable terms

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a new item

question

- non-extensive process - frequently purchased, standardized or technically simple product - extensive lengthy process - complicated and expensive goods and services

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4. Acquisition of proposal or bids

question

Members of the buying center examine the acceptability of the various proposals and potential suppliers - negotiation - evaluate offerings

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5. Evaluation of offerings and selection of suppliers

question

purchasing department often tries to match the delivery of the goods with the company's need for the product - received, inspected, paid for, entered into inventory - slotting allowances charged by retailers

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6. Selection of an order routine

question

Focuses on both the product and the suppliers service performance - follow up is crucial

answer

7. Performance evaluation and feedback

question

o Promptness of delivery o Quality of the product o Service after the sale

answer

evaluated on:

question

relatively complex and expensive product or service for the first time

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new task purchases

question

a new piece of production equipment

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new task purchases EXAMPLE

question

interested in modifying the product specifications, prices or other terms it has been receiving from existing suppliers and is willing to consider dealing with new suppliers to these things happen - creates opportunity for a new vender to come in

answer

modified rebuy

question

reordering an item it has purchased many times (sales rep has been taken out)

answer

straight rebuy

question

office supplies, bulk chemicals

answer

straight rebuy EXAMPLE

question

move the customer away from the automatic reordering procedures of a straight rebuy toward the more extensive evaluation processes of modified rebuy

answer

out supplier

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