Presentation on theme: "1 Overview of Selling. 1 Personal Selling – Defined An important part of marketing that relies heavily on interpersonal interactions between buyers and."— Presentation transcript:
1 Personal Selling – Defined An important part of marketing that relies heavily on interpersonal interactions between buyers and sellers to initiate, develop, and enhance customer relationships.
1 Trust-Based Relationship Selling Requires that salespeople earn customer trust and that their selling strategy meets customer needs and contributes to the creation, communication, and delivery of customer value.
1 Customer Value The customers perception of what they get for what they have to give up.
1 Importance of Sales Dialogue Allows for more thorough qualifying. Demonstrates sincere interest in the prospective customer. Helps Determine prospective customers unique needs. Ensures meaningful presentation of value- added solutions. Promotes open communication and satisfaction feedback. Sales Dialogue: business conversation between buyers & sellers that occur as salespeople attempt to initiate, develop, & enhance customer relationships.
1 Transaction-Focused Selling vs. Trust-Based Relationship Selling
1 Industrial Revolution Post-Industrial Revolution War and Depression Modern Era 1800s1900s2000s Evolution of Personal Selling Selling function became more structured Peddlers selling door to door... served as intermediaries Business organizations employed salespeople Selling function becoming more professional
1 Evolution of Personal Selling (The past several decades) Canned Sales Presentation: sales presentations that include scripted sales calls, memorized presentations, and automated presentations. Sales Professionalism: a customer- oriented approach that uses truthful, non-manipulative tactics to satisfy the long-term needs of both the customer and the selling firm.
1 Contributions of Personal Selling: Salespeople and Society Salespeople help stimulate the economy. Salespeople help with the diffusion of innovation.
1 Contributions of Personal Selling: Salespeople and the Employing Firm Salespeople generate revenue. Salespeople provide market research and customer feedback. Salespeople become future leaders in the organization.
1 Contributions of Personal Selling: Salespeople and the Customer Salespeople provide solutions to problems. Salespeople provide expertise and serve as information resources. Salespeople serve as advocates for the customer when dealing with the selling organization.
1 Alternative Personal Selling Approaches Stimulus Response Selling Mental States Selling Need Satisfaction Selling Problem Solving Selling Consultative Selling Adaptive Selling: the ability of a salesperson to alter his/her sales messages and behaviors during a sales presentation or as they encounter different sales situations and different customers.
1 Stimulus Response Selling Simple in design; assumes conditioned response improves likelihood of success; a risky and unreliable strategy.
1 Mental States Selling Assumes buyer can be led through mental states; promotes one-way communication; a risky and unreliable strategy.
1 Need Satisfaction Selling Interact with buyer to determine existing needs; present solutions to needs; solutions limited to sellers products.
1 Problem Solving Selling Interact with buyer to determine existing and potential needs; present multiple solutions not limited to sellers products.
1 Consultative Selling The process of helping customers reach their strategic goals by using the products, services, and expertise of the selling organization. Strategic Orchestrator Business Consultant Long-Term Ally
1 Sales Management Process Defining the Strategic Role of the Selling Function Developing the Salesforce Directing the Salesforce Determining Salesforce Effectiveness and Performance
1 Sales Management Process Defining the Strategic Role of the Sales Function – Salesforce structure – Sales strategies Developing the Salesforce – Recruiting and selecting sales talent – Establishing training strategies/programs Directing the Salesforce – Setting salesforce goals and objectives – Implementing incentive programs – Overseeing and coaching salesforce Determining Salesforce Effectiveness and Performance – Establishing and administering evaluation measures & systems – Providing feedback for future development
1 Sales Management Positions (Example) Vice President of Sales Regional Sales Manager Field Sales Manager Regional Sales Manager Field Sales Manager
1 Sales Management Best Practices Create a customer-driven culture throughout the sales organization and firm. Recruit and hire the best sales talent. Train and coach the right skill set. Focus on key strategic issues by segmenting accounts in meaningful ways and providing differentiated offering to find, win, and retain customers.
1 Sales Management Best Practices Implement formal sales and relationship-building processes. Use information technology effectively to learn about customers. Integrate sales with other business functions, especially marketing.
1 Developing and Implementing Effective Sales Strategies Account Targeting Strategy Classification of accounts into categories Relationship Strategy Type of relationship sought for each category Selling Strategy Develop selling approach for each type or relationship
1 Developing and Implementing Effective Sales Strategies Selling Strategy – Involves the planning of sales messages and interactions with customers. Selling strategy can be defined and executed at three levels. Groups of Customers Individual Customer Customer Encounters Individual Customer Customer Encounters
1 Sales Channel Strategy Determination of how the organization will reach its customers when executing the sales effort. Options include a company salesforce (individual or teams), industrial distributors, independent representatives, internet, telemarketing, and so forth.
1 Sales Structure Issues The degree to which each salesperson could perform all the selling tasks.The degree to which each salesperson could perform all the selling tasks. Specialization The degree to which authority and responsibility are placed at higher management levels.The degree to which authority and responsibility are placed at higher management levels. Centralization The number of individuals who report to each sales managerThe number of individuals who report to each sales manager Span of Control
1 Recruitment and Selection Process – Planning –
1 Recruitment and Selection Process – Locating – Career/Job Fairs Career/Job Fairs College Career Centers College Career Centers On-line Career Sites (e.g., Monster.com and Careerbuilder.com) On-line Career Sites (e.g., Monster.com and Careerbuilder.com) Internal (e.g., employee referral) Internal (e.g., employee referral) Employment Agencies Employment Agencies
1 Recruitment and Selection Process – Evaluating – Resume Screening Interviews Assessments – Role Plays – Written Questionnaires – Ride-Alongs Background Checks
1 The Role of Power Dont be reluctant to use any form of power. Be careful not to overuse the power of position or punishment. Avoid rewarding all desired job outcomes or behaviors. Enhance power through learning and establishing a good working relationship with subordinates. Legitimate Coercive Reward Expert Referent
1 Communication and Coaching Coaching: Focus on continual development of salespeople through provision of feedback and serving as a role model. Encourage open communication. Seek feedback. Use persuasion and promises. Establish a team approach. Encourage self-evaluation and correction. Ensure salespeople diagnose success as well as failures. Recognize salespeople are individuals. Follow-up on coaching sessions. Serve as a role model.
1 Criteria for Evaluating Salesperson Performance Behavior-Based Evaluation of the activities salespeople perform in the generation of sales and in completing non-selling responsibilities (e.g., training, product demonstrations, sales calls, etc.). Outcome-Based Evaluation of the actual sales results salespeople achieve (e.g., sales quota, market share gain, etc.). Evaluation Methods Should Possess: Reliability Validity Standardization Practicality Comparability Discriminability Usefulness
1 Sales 2.0 The use of customer-driven processes enabled by the latest Web technology to co-create value with customers. CRM Social Networking Cloud Computing