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PART 1 Understanding the Sales Environment Understanding the Sales Environment CHAPTER 1:SELLING ASAP CHAPTER 2:THE CHANGING WORLD OF SALES CHAPTER 3:SELLING.

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Presentation on theme: "PART 1 Understanding the Sales Environment Understanding the Sales Environment CHAPTER 1:SELLING ASAP CHAPTER 2:THE CHANGING WORLD OF SALES CHAPTER 3:SELLING."— Presentation transcript:

1 PART 1 Understanding the Sales Environment Understanding the Sales Environment CHAPTER 1:SELLING ASAP CHAPTER 2:THE CHANGING WORLD OF SALES CHAPTER 3:SELLING ETHICALLY CHAPTER 4:BUILDING CUSTOMER LIFETIME VALUE

2 CHAPTER 1 CHAPTER 1 Selling ASAP Selling ASAP

3 “I studied the lives of great men and famous women, and I found that the men and women who got to the top were those who did the jobs they had in hand, with everything they had of energy and enthusiasm and hard work.” Harry S. Truman

4 Selling ASAP Selling is being viewed today as an Art and a Science, with an emphasis on practicing Agility to enhance Performance

5 Art and Science Selling involves the salesperson’s unique style (art) of applying a systematic process (science) to understanding customers’ needs and wants and matching the benefits of the salesperson’s product or service to those desires

6 1 1 Agility An agile salesperson is:  One who is quick to see opportunities  Clever in shortening sales cycles  Able to meet customers’ needs faster  Capable of creating flexible and customer- focused values  Quick at learning and unlearning

7 1 1 Performance Salespeople must perform Sales performance is measured in a multitude of ways Selling requires a continuous emphasis on earning and maintaining long-term customer satisfaction…not just making quota

8 1 1 What is Professional Selling? Professional selling is the interpersonal communication process in which a seller uncovers and satisfies the needs and wants of a prospect to the mutual, long-term benefit of both parties

9 1 1 Non-manipulative Selling Today’s skillful salespeople practice non- manipulative selling Only after salespeople and customers reach mutual agreement about value does a sale occur

10 1 1 Building Relationships Satisfied customers repeat their purchases because they are satisfied with the value of the relationship  Taking care of existing customers reduces sales cycle time and increases efficiency

11 1 1 Thriving in a Highly Competitive Selling Environment Salespeople must do their homework before meeting with prospects  Study the market  Study the prospects’ needs  Put the customer first  Engage in continuous learning and professional development

12 1 1 Understanding the Customer To motivate the prospect to buy a product or service salespeople must:  Understand how their prospect’s mind works  Be able to uncover the prospect’s hidden needs or wants

13 1 1 The Power of Influence The power of influence rests in the skillful salesperson’s ability to:  Provide continuous value to customers  Engage in long-term relationships with customers  Adapt to changing needs and preferences of customers

14 1 1 Apply What You Learn Pay close attention to the way people interact with each other Go shopping  Pay particular attention to the many ways salespeople attempt to persuade you to buy Talk to others and listen to their opinions about selling

15 1 1 Components of ASAP Understanding the Sales Environment Implementing the Sales Process Mastering Sales Agility

16 Figure 1.1 Timely and Timeless Components of Selling ASAP Preparation Attention Examination Prescription Conviction & Motivation Completion & Partnering Understanding Why Buyers Buy Selling to Major Accounts PART II Implementing the Sales Process ASAP PART II Implementing the Sales Process ASAP PART III Mastering Sales Agility ASAP PART III Mastering Sales Agility ASAP Managing Yourself & Your Time Selling Ethically Building Lifetime Value The Changing World of Sales PART I Understanding the Environment ASAP PART I Understanding the Environment ASAP

17 Figure 1.2 Taking a Lifetime View of Customers Customer Age Gender Buying Styles Buying Team Segment Product Holdings Contacts Product Use Events Adapted from: Puckey, David (2000), “Modeling Customer Relationships,” Sequent Computer Systems Ltd. Sequent House, Weybridge Business Park, Addlestone Road, Weybridge, KT15, 2UF

18 1 1 Thoughtware Thoughtware represents the thinking process salespeople use as they continuously learn about customers Customers are often grouped by type of relationship  Advantages Avoidance of unneeded duplication of effort Knowledge of loyalty patterns Identification of cross-sell and up-sell opportunities Identification of significant events in the life of the customer

19 Figure 1.3 Where Selling Fits in the Organization Manpower MoneyMaterials PersonnelFinanceManufacturing Marketing Sales

20 All Organizations Perform Selling Activities “Nothing happens in the economy until someone sells something to someone else.” Arthur H. “Red” Motley

21 1 1 Steps of the Sales Process Preparation Attention Examination Prescription Conviction & Motivation Completion and Partnering

22 Figure 1.4 A Customer-Focused Selling Framework Customer Behavior Salesperson Behavior Collaboration Initial Inquiry Time to Respond Sales Call Decision?ThinkingRe-Initiate PreparationAttentionExaminationPrescriptionConvictionCompletionPartnering Promotion Web Site Personal Visits Service Salesperson Sales Organization Promotion Web Site Engineering Finance Accounting Motivation

23 1 1 Why Become a Professional Salesperson? Opportunity Job Satisfaction

24 “Over 70% of new marketing graduates start their careers in sales.” Almost 50% of finance majors start in some type of sales career, and a growing number of other business majors (e.g., accounting, management, management information systems) are moving towards beginning their careers in sales. Dan Weilbaker (2001)

25 1 1 I 3 Rationale Independence Income Impact © 2000 Northwestern Mutual Financial Network

26 1 1 Rewards of Selling Intrinsic rewards  Include the good feeling one gets from helping a customer solve a problem Extrinsic rewards  Include pay and promotional opportunities

27 Annual Income of Salespeople and Sales Managers

28 1 1 Route to Management Selling is an excellent route to management Starting in sales can lead to many other career advancements

29 Zone Business Mgr. Financial & HR responsibility Category Mgr. Customer category strategies Data-base analysis Category Analyst Sales Associate Human ResourcesDirector of SalesFinanceOperations Key Account Mgr. (5-8 per Area) HQ Account Ownership Regional VP President Frito-Lay National HQ Sales District Sales Leader (8-10 per zone) People Leadership -15 salespersons Account relationships Zone Sales Leader (4-8) per Area) employees Figure Frito Lay Career Track

30 Figure 1.7 Sales Opportunities in Large Organizations President Vice President of Marketing Vice President of Sales National Sales Manager Division Sales Manager Regional Sales Manager District Sales Manager Sales Representative Sales Trainee Or here… Or you might end up here… You may choose to stay here… When you enter the workforce here…

31 1 1 The Face of Selling Today’s sales force is made up of people of both genders and various ethnic origins

32 1 1 Inside and Outside Sales At a broad level, professional selling can be divided into two types:  Inside sales Telemarketing Retail sales  Outside sales Prospecting—finding potential customers/clients

33 1 1 B2B and B2C Business-to-Business (B2B) Selling  The salesperson represents a company and sells to other companies Business-to-Consumer (B2C) Selling  The salesperson sells directly to the consumer

34 1 1 Classifications Retail selling Trade selling Missionary selling Technical selling

35 1 1 Types of Selling: A Traditional Look Responsive selling Creative selling Needs-based selling Consultative-partner selling Problem-solution selling Customer-centered selling Value-based selling

36 1 1 Success in Sales Successful salespeople possess the following:  Motivation to succeed  Empathy  Ego-drive  Service motivation  Conscientiousness  Ego-strength

37 1 1 Sales Productivity: A Measure of Success Sales productivity is the ratio of sales revenues to what a salesperson inputs into making those sales How salespeople use their time is critical to sales productivity success

38 The Essence of Selling ASAP The right knowledge used the right way to improve the salesperson’s ability to do the right things for customers more expeditiously

39 Approximately 50% of time spent on account-specific sales and service focuses on current account development 20 % = new accounts30 % = account maintenance Administrative tasks Meetings Travel time Face-to-face selling Phone/other selling Source: Adapted from information in the article: “Increase Your Sales without Adding Personnel” by Mike Rose, Director of Development, SalesLobby.com, Sales Compensation Consultant, Online Magazine, The Alexander Group, Inc., July OnlineMagazine/0700/salescomp_MRose.asphttp://www.saleslobby.com/ Figure 1.8 How Salespeople Spend Their Time

40 1 1 CRM Customer Relationship Management CRM is a strategy and process that utilizes technology  To identify, attract, and retain customers  To leverage the sales organization’s relationships with its customers The agile salesperson uses CRM technology to assist him in managing customer interactions and transactions

41 1 1 Technology: Tools for the Salesperson Central role  Store and share information  Communicate  Collaborate  Transact business

42 1 1 The Customer-Focused Salesperson Willing to learn Manages what they learn Realizes improved results Achieves customer loyalty

43 Business Perspective Finding/Obtaining/ Keeping Customers Efficiency Competition Communication Why CRM Is Important To Salespeople

44 Figure 1.9 The Customer-Driven Selling Model Results Increased Customer Loyalty Higher customer retention rates Lower customer defections Less need to find new customers Improved Dialogue with Customers Fewer customer complaints Improved complaint resolution Increased referrals Improved Customer Lifetime Value Up-selling and cross-selling with existing customers yields more sales Customer relationships become solidified as value is improved Customers spend a larger share of their purchase dollar with one sales organization Customers Drive Markets Core Value Optimize the salesperson/customer fit Knowledge Management Core Value A commitment to on-going learning Customer Relationship Management (CRM) Core Value A way to obtain, store, analyze, share and use knowledge


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