UNIT F MANAGEMENT OF DISTRIBUTION, PROMOTION, AND SELLING 10.04 Summarize sales management.

Types of selling Retail Business-to-business Telemarketing Internet

Steps in the selling process Preapproach: The step in the selling process in which the salesperson learns as much as possible about the product and prospective customers before making a sales call. Prospecting: The step in the selling process in which the salesperson identifies potential customers. Qualifying the leads – identifying potential customers and screening out poor prospects

Steps in the selling process (cont.) Approach: The step in the selling process in which the salesperson meets the customer for the first time. Determining needs: The step in the selling process during which the salesperson observes, asks questions, and listens to uncover the customer’s needs and/or buying motives.

Steps in the selling process (cont.) Presentation: The step in the selling process in which the salesperson tells the “product story” to the buyer, highlighting customer benefits. Handling objections: The step in the selling process in which the salesperson seeks out, clarifies, and overcomes customer objections to buying.

Steps in the selling process (cont.) Closing: The step in the selling process in which the salesperson asks the customer for an order or purchase. Follow-up and relationship building: The last step in the selling process in which the salesperson follows up after the sale to ensure customer satisfaction and repeat business.

Personal selling Salesperson: An individual acting for a company by performing one or more prospecting, communicating, servicing, and/or information gathering activities. Sales representatives Account executives Sales consultants Sales associates Sales engineers Agents District managers Marketing representatives Account development representatives

The role of the sales force Serves as a critical link between a company and its customers Produce customer satisfaction and company profit. Represent the company to customers. Represent customers to the company. Build long-term relationships with key client decision makers

The role of the sales force Varies from company to company Major role in most companies May have a lesser role if a company does business only through catalogs or on the Internet

Sales force management The analysis, planning, implementation, and control of sales force activities.

Responsibilities of a sales force manager Design the sales force structure. Recruit, select, and train salespeople. Make decisions about and oversee sales staff compensation. Supervise, direct, and motivate salespeople. Conduct staff meetings. Evaluate the sales staff.

Responsibilities of a sales force manager (cont.) Make decisions about and oversee sales staff compensation. (cont.) Sales quota: A standard that states the amount a salesperson should sell and how sales should be divided among the company’s products. Base salary and incentive pay

Responsibilities of a sales force manager (cont.) Supervise, direct, and motivate salespeople. (cont.) Conduct sales meetings Develop and administer positive incentives Organizational climate: The feeling that salespeople have about their opportunities, value, and rewards for good performance. Sales contests Honors and recognition Rewards, trips, and/or merchandise

Responsibilities of a sales force manager (cont.) Key decisions to manager must make Structure of the sales force (Slide 15) Size of the sales force Specific tasks of the salespeople Whether to use the individual or team selling approach (Slide 16) Whether to utilize an inside sales force, an outside sales force, or both (Slide 16)

Sales force management Sales force structures Territorial sales force structure – Each salesperson is assigned to an exclusive geographic territory to sell the company’s full line. Product sales force structure – Salespeople specialize in selling only a portion of the company’s products or lines. Customer sales force structure –Salespeople specialize in selling to only certain customers or industries. Complex sales force structure – A combination of structures is used as needed to meet the objectives of the company.

Sales force management (cont.) Team selling: Use of teams of people from sales, marketing, engineering, finance, technical support, and even upper management to service large, complex accounts. Outside sales force (field sales force): Salespeople who travel to call on customers at locations away from the business. Inside sales force: Salespeople who conduct business from their offices via telephone or visits from prospective buyers.