SELLING
AND
SALES MANAGEMENT
- Arise Roby
Harcourt, Inc.
ARISE TRAINING & RESEARCH CENTER
ARISE TRAINING & RESEARCH
CENTER
Objectives
n Identify and understand the
critical factors of personal
selling
n Discuss h...
ARISE TRAINING & RESEARCH
CENTER
n Describe the selling environments and
types of personal selling
n Understand the sales ...
ARISE TRAINING & RESEARCH
CENTER
n A form of person to person
communication in which a
salesperson works with
prospective ...
ARISE TRAINING & RESEARCH
CENTER
n Allows the firm to immediately
respond to the needs of the
prospect
n Allows for immedi...
ARISE TRAINING & RESEARCH
CENTER
n Hard sell: Formerly thought
customers had to be forced into
making a purchase
n Relatio...
ARISE TRAINING & RESEARCH
CENTER
n WalkerInformation
Relationship Selling
ARISE TRAINING & RESEARCH
CENTER
n Employment in sales is growing
n Sales positions offer advantages:
n Good compensation
...
ARISE TRAINING & RESEARCH
CENTER
n Lawson Software
Leading Edge Technology
ARISE TRAINING & RESEARCH
CENTER
Desirable Salesperson Traits
Salesperson
Empathetic
Competitive
Goal-oriented
Adaptive
Cu...
ARISE TRAINING & RESEARCH
CENTER
Selling Environments and Selling Types
Selling Environments Selling Types
Over-the-counte...
ARISE TRAINING & RESEARCH
CENTER
Over-the-Counter Selling
Order taker
Order Getter
n A salesperson who only processes the
...
ARISE TRAINING & RESEARCH
CENTER
Over-the-Counter Selling
Order taker
Order Getter
n A salesperson who actively seeks to p...
ARISE TRAINING & RESEARCH
CENTER
Field Selling
n Help prospective customers to define their needs and
then suggest the bes...
ARISE TRAINING & RESEARCH
CENTER
Field Selling
n Highly skilled salespersons who call on key
customers’ headquarters sites...
ARISE TRAINING & RESEARCH
CENTER
Field Selling
n They do not seek to obtain a direct order from their
customers
n Primary ...
ARISE TRAINING & RESEARCH
CENTER
Field Selling
n Support the sales force in a number of ways
n Technical support salespeop...
ARISE TRAINING & RESEARCH
CENTER
Telemarketing
n Utilizing the telephone for prospecting, selling,
and/or following up wit...
ARISE TRAINING & RESEARCH
CENTER
The Personal Selling Process
Prospecting
Pre-
Approach
Presentation
Handling
Objections
A...
ARISE TRAINING & RESEARCH
CENTER
The Personal Selling Process
Prospecting
n Prospecting involves finding qualified sales l...
ARISE TRAINING & RESEARCH
CENTER
n Zip Pak
Prospecting Through Advertising
ARISE TRAINING & RESEARCH
CENTER
n Deloitte & Touche
Referrals
ARISE TRAINING & RESEARCH
CENTER
The Personal Selling Process
Pre-approach
n The collection of information about the poten...
ARISE TRAINING & RESEARCH
CENTER
The Personal Selling Process
Approach
n The development of rapport with the customer
n Th...
ARISE TRAINING & RESEARCH
CENTER
Social Styles
Analytical Driver
Amiable Expressive
Fact-oriented
Risk
Takers
Risk
Adverse...
ARISE TRAINING & RESEARCH
CENTER
Social Styles
Risk
Takers
Analytical
Driver
Amiable Expressive
Fact-oriented
Risk
Adverse...
ARISE TRAINING & RESEARCH
CENTER
Social Styles
Risk
Takers
Analytical
Driver
Amiable Expressive
Fact-oriented
Risk
Adverse...
ARISE TRAINING & RESEARCH
CENTER
Social Styles
Risk
Takers
Analytical Driver
Amiable Expressive
Fact-oriented
Risk
Adverse...
ARISE TRAINING & RESEARCH
CENTER
Social Styles
Risk
Takers
Analytical Driver
Amiable
Expressive
Fact-oriented
Risk
Adverse...
ARISE TRAINING & RESEARCH
CENTER
The Personal Selling Process
Need
Identification
n Requires asking probing questions of t...
ARISE TRAINING & RESEARCH
CENTER
The Personal Selling Process
Presentation
n The focus of the sales presentation is the
sa...
ARISE TRAINING & RESEARCH
CENTER
The Personal Selling Process
Handling
Objections
n The salesperson may have failed to pro...
ARISE TRAINING & RESEARCH
CENTER
The Personal Selling Process
Gaining
Commitment
n Commitment is gained when the prospect ...
ARISE TRAINING & RESEARCH
CENTER
The Personal Selling Process
Follow- Up
n The salesperson complete any agreed upon action...
ARISE TRAINING & RESEARCH
CENTER
Sales Certification
n Several organizations now offer certification
programs that are des...
ARISE TRAINING & RESEARCH
CENTER
Sales Management
n Recruit, train, motivate, and evaluate their
sales representatives
n M...
ARISE TRAINING & RESEARCH
CENTER
Recruiting
Sales Management
n Individuals with desirable salesperson traits
n Individuals...
ARISE TRAINING & RESEARCH
CENTER
Sales Force Training
n Train the new sales representatives on product
and customer knowle...
ARISE TRAINING & RESEARCH
CENTER
Motivating the Sales Force
n Provide further motivation to salespeople and to
encourage s...
ARISE TRAINING & RESEARCH
CENTER
Motivating the Sales Force
n Regular praising of salespeople and let them know
their effo...
ARISE TRAINING & RESEARCH
CENTER
Sales Management
Sales Force Compensation
Regional Salaries
ARISE TRAINING & RESEARCH
CENTER
Sales Management
Sales Force Compensation
n The sales force have greater security but
no ...
ARISE TRAINING & RESEARCH
CENTER
Sales Management
Sales Force Compensation
n A great deal of insecurity due to
uncontrolla...
ARISE TRAINING & RESEARCH
CENTER
Sales Management
Sales Force Compensation
Bonus paid on
this difference
n Salary plus Com...
ARISE TRAINING & RESEARCH
CENTER
Evaluation of Performance
n Sales managers should provide continual
guidance and feedback...
ARISE TRAINING & RESEARCH
CENTER
Territory Organization and Management
n Which method to organize the territory?
n By prod...
ARISE TRAINING & RESEARCH
CENTER
Territory Organization and Management
n Each salesperson should feel his/her territory of...
ARISE TRAINING & RESEARCH
CENTER
Territory Organization and Management
n The sales manager should help the sales force max...
ARISE TRAINING & RESEARCH
CENTER
Sales Force Technology
n The use of technology among sales
forces is growing
n Sales mana...
ARISE TRAINING & RESEARCH
CENTER
Sales Force Technology
nPalm
Computing,
Inc.
ARISE TRAINING & RESEARCH
CENTER
Legal and Ethical issues
n Obey the instructions of the company
n Act with “due diligence...
ARISE TRAINING & RESEARCH
CENTER
Legal and Ethical issues
Company’s Responsibility
n Comply with any agreement made betwee...
ARISE TRAINING & RESEARCH
CENTER
Unethical/Illegal Behaviors
n Price discrimination and unfair pricing
n Gifts, gratuities...
ARISE TRAINING & RESEARCH
CENTER
Selling Activities
n Performing the sales
function
n Working with orders
n Servicing the ...
ARISE TRAINING & RESEARCH
CENTER
Missionary Selling
Technical Selling
New-business Selling
Retail Selling
n Build sales vo...
ARISE TRAINING & RESEARCH
CENTER
Trade Selling
Technical Selling
New-business Selling
Retail Selling
n Where trade
salespe...
ARISE TRAINING & RESEARCH
CENTER
Missionary Selling
Trade Selling
New-business Selling
Retail Selling
n Often technically
...
ARISE TRAINING & RESEARCH
CENTER
n Used in industries
that have one time
or very infrequent
sales, thus,
salespeople must
...
ARISE TRAINING & RESEARCH
CENTER
n Wide range of skills
required
n Can require
knowledge,
communication
skills, and abilit...
ARISE TRAINING & RESEARCH
CENTER
n Telemarketing uses
outbound calls to:
n Open new accounts
n Qualify advertising
leads
n...
ARISE TRAINING & RESEARCH
CENTER
n Aptitude
n Skills Level
n Motivational Level
n Role Perceptions
n Personal
Characterist...
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Selling & sales management arise roby

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A form of person to person communication in which a salesperson works with prospective buyer and attempts to influence purchase in the direction of his or her company’s products or services

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Selling & sales management arise roby

  1. 1. SELLING AND SALES MANAGEMENT - Arise Roby Harcourt, Inc. ARISE TRAINING & RESEARCH CENTER
  2. 2. ARISE TRAINING & RESEARCH CENTER Objectives n Identify and understand the critical factors of personal selling n Discuss how selling has evolved n Evaluate the advantages and disadvantages of sales as a profession
  3. 3. ARISE TRAINING & RESEARCH CENTER n Describe the selling environments and types of personal selling n Understand the sales process n Appreciate the tasks and functions of the sales manager n Recognize legal/ethical issues Objectives
  4. 4. ARISE TRAINING & RESEARCH CENTER n A form of person to person communication in which a salesperson works with prospective buyer and attempts to influence purchase in the direction of his or her company’s products or services Personal Selling Defined
  5. 5. ARISE TRAINING & RESEARCH CENTER n Allows the firm to immediately respond to the needs of the prospect n Allows for immediate customer feedback n Results in an actual sale Importance of Personal Selling
  6. 6. ARISE TRAINING & RESEARCH CENTER n Hard sell: Formerly thought customers had to be forced into making a purchase n Relationship selling: Now selling requires the development of a trusting partnership in which the salesperson seeks to provide long- term customer satisfaction Evolution of Personal Selling
  7. 7. ARISE TRAINING & RESEARCH CENTER n WalkerInformation Relationship Selling
  8. 8. ARISE TRAINING & RESEARCH CENTER n Employment in sales is growing n Sales positions offer advantages: n Good compensation n Intrinsic reward from helping customers n Flexible in day-to-day activities n High-visibility career track n Limited supervision n Travel opportunities n Increasing responsibilities Why choose the sales profession?
  9. 9. ARISE TRAINING & RESEARCH CENTER n Lawson Software Leading Edge Technology
  10. 10. ARISE TRAINING & RESEARCH CENTER Desirable Salesperson Traits Salesperson Empathetic Competitive Goal-oriented Adaptive Customer- oriented Enthusiastic Organized Self-motivated
  11. 11. ARISE TRAINING & RESEARCH CENTER Selling Environments and Selling Types Selling Environments Selling Types Over-the-counter Order taker Order getter Field Selling Professional salespeople National account managers Missionary salespeople Support salespeople Telemarketing Outbound Inbound
  12. 12. ARISE TRAINING & RESEARCH CENTER Over-the-Counter Selling Order taker Order Getter n A salesperson who only processes the purchase that the customer has already selected n Retail outlets that are heavily oriented toward self-service
  13. 13. ARISE TRAINING & RESEARCH CENTER Over-the-Counter Selling Order taker Order Getter n A salesperson who actively seeks to provide information to prospects, persuade prospective customers, and close sales n Personal service oriented stores n May practice suggestion selling
  14. 14. ARISE TRAINING & RESEARCH CENTER Field Selling n Help prospective customers to define their needs and then suggest the best means of meeting those needs, even if that requires suggesting that the prospects use a competitive product National account managers Missionary Salespeople Support Salespeople Professional Salespeople
  15. 15. ARISE TRAINING & RESEARCH CENTER Field Selling n Highly skilled salespersons who call on key customers’ headquarters sites, develop strategic plans for the accounts, make formal presentations to top-level executives, and assist with all the product decisions at that level Missionary Salespeople Professional Salespeople National account managers Support Salespeople
  16. 16. ARISE TRAINING & RESEARCH CENTER Field Selling n They do not seek to obtain a direct order from their customers n Primary goal is to persuade customers to place orders with distributors or wholesalers National account managers Support Salespeople Professional Salespeople Missionary Salespeople
  17. 17. ARISE TRAINING & RESEARCH CENTER Field Selling n Support the sales force in a number of ways n Technical support salespeople assist with technical aspects of sales presentations n Merchandisers may set up product displays National account managers Missionary Salespeople Professional Salespeople Support Salespeople
  18. 18. ARISE TRAINING & RESEARCH CENTER Telemarketing n Utilizing the telephone for prospecting, selling, and/or following up with customers n Outbound: the salesperson uses the telephone to call customers n Inbound: Firms which have customers calling the vendor company to place orders (toll-free phone numbers) Telemarketing
  19. 19. ARISE TRAINING & RESEARCH CENTER The Personal Selling Process Prospecting Pre- Approach Presentation Handling Objections Approach Follow-Up Need Identification Gaining Commitment
  20. 20. ARISE TRAINING & RESEARCH CENTER The Personal Selling Process Prospecting n Prospecting involves finding qualified sales leads n Qualified sales leads: potential customers that have a need for the salesperson’s product, and are able to buy n Referrals: obtained by the salesperson asking current customers if they know of someone else who might have a need for the salesperson’s product n Cold-calling: means contacting prospective customers without a prior arrangement
  21. 21. ARISE TRAINING & RESEARCH CENTER n Zip Pak Prospecting Through Advertising
  22. 22. ARISE TRAINING & RESEARCH CENTER n Deloitte & Touche Referrals
  23. 23. ARISE TRAINING & RESEARCH CENTER The Personal Selling Process Pre-approach n The collection of information about the potential customer and the customer’s company prior to the initial visit n Researching the prospect and the company will assist the salesperson in planning the initial presentation to the prospective customer
  24. 24. ARISE TRAINING & RESEARCH CENTER The Personal Selling Process Approach n The development of rapport with the customer n The chance to make a good first impression n The salesperson should adapt to the potential customer’s social style
  25. 25. ARISE TRAINING & RESEARCH CENTER Social Styles Analytical Driver Amiable Expressive Fact-oriented Risk Takers Risk Adverse People-oriented
  26. 26. ARISE TRAINING & RESEARCH CENTER Social Styles Risk Takers Analytical Driver Amiable Expressive Fact-oriented Risk Adverse People-oriented n Very fact-and-detail oriented n Require time to make decisions n Not interested in socializing n The salesperson should inundate the analytical with facts and figures that can be supported with documentation
  27. 27. ARISE TRAINING & RESEARCH CENTER Social Styles Risk Takers Analytical Driver Amiable Expressive Fact-oriented Risk Adverse People-oriented n Action-and goal oriented, and makes quick decisions n Basic facts and not big on socializing n The sales person should provide the bottom-line information first and then work backward to fill-in essential details
  28. 28. ARISE TRAINING & RESEARCH CENTER Social Styles Risk Takers Analytical Driver Amiable Expressive Fact-oriented Risk Adverse People-oriented n A visionary with big ideas for the future but not a detail- oriented individual n Hesitant to make quick decisions and will seek consensus from others n Seeks to socialize with the salesperson n The salesperson should provide assurances that will reduce the amiable’s feeling of risk
  29. 29. ARISE TRAINING & RESEARCH CENTER Social Styles Risk Takers Analytical Driver Amiable Expressive Fact-oriented Risk Adverse People-oriented n Loves to socialize and will frequently base the purchase decision on the relationship with the salesperson n The salesperson should establish a personal relationship with the expressive by telling anecdotal stories, by socializing outside the office and by relating personal information
  30. 30. ARISE TRAINING & RESEARCH CENTER The Personal Selling Process Need Identification n Requires asking probing questions of the prospective customer to determine needs n The salesperson should ask open-ended questions n Make sure that the customer’s needs and potential concerns are addressed
  31. 31. ARISE TRAINING & RESEARCH CENTER The Personal Selling Process Presentation n The focus of the sales presentation is the salesperson’s explanation of how the features of the product provide “benefits” n Presentation may be flexible or memorized n The salesperson should be prepared to provide documentation for any statements of fact that are made
  32. 32. ARISE TRAINING & RESEARCH CENTER The Personal Selling Process Handling Objections n The salesperson may have failed to provide adequate information, or have not demonstrated how the product meets the needs of the prospect n Objection as a sign of interest on the part of the prospect n Provide information that will ensure the prospect’s confidence in making the purchase
  33. 33. ARISE TRAINING & RESEARCH CENTER The Personal Selling Process Gaining Commitment n Commitment is gained when the prospect agrees to take the action sought by the salesperson n The salesperson must ask for commitment
  34. 34. ARISE TRAINING & RESEARCH CENTER The Personal Selling Process Follow- Up n The salesperson complete any agreed upon actions n The salesperson should stay in touch after the sale by writing thank-you notes, clipping and mailing newspaper articles of interest to the prospect and calling on the customer to ensure the customer’s satisfaction
  35. 35. ARISE TRAINING & RESEARCH CENTER Sales Certification n Several organizations now offer certification programs that are designed to increase the professionalism and expertise of the salespeople n Sales and Marketing Executives International (SMEI) n Hospitality Sales and Marketing Association International (HSMAI) n National Association of Sales Professionals (NASP)
  36. 36. ARISE TRAINING & RESEARCH CENTER Sales Management n Recruit, train, motivate, and evaluate their sales representatives n Manage territories n Develop sales plans and sales forecasts n Identify business opportunities and create appropriate strategies n Encourage the sales team to create added- value for the customer
  37. 37. ARISE TRAINING & RESEARCH CENTER Recruiting Sales Management n Individuals with desirable salesperson traits n Individuals whose values and goals match those of the firm Salesperson Empathetic Competitive Goal-oriented Adaptive Customer- oriented Enthusiastic Organized Self-motivated
  38. 38. ARISE TRAINING & RESEARCH CENTER Sales Force Training n Train the new sales representatives on product and customer knowledge and selling skills n Sales training is expensive but the pay off is worth it. n All sales representatives should periodically receive training to keep up-to-date and to keep their skills honed Sales Management
  39. 39. ARISE TRAINING & RESEARCH CENTER Motivating the Sales Force n Provide further motivation to salespeople and to encourage salespeople to focus on the priories of the company n Reward when the pre-specified performance level (quota) is reached Sales Management Sales Force Quotas
  40. 40. ARISE TRAINING & RESEARCH CENTER Motivating the Sales Force n Regular praising of salespeople and let them know their efforts are appreciated n Rapport-building, open communication, and modeling behavior n Good sales management feedback Sales Management Sales Coaching
  41. 41. ARISE TRAINING & RESEARCH CENTER Sales Management Sales Force Compensation Regional Salaries
  42. 42. ARISE TRAINING & RESEARCH CENTER Sales Management Sales Force Compensation n The sales force have greater security but no desire to put extra efforts
  43. 43. ARISE TRAINING & RESEARCH CENTER Sales Management Sales Force Compensation n A great deal of insecurity due to uncontrollable factors like economic recession
  44. 44. ARISE TRAINING & RESEARCH CENTER Sales Management Sales Force Compensation Bonus paid on this difference n Salary plus Commission
  45. 45. ARISE TRAINING & RESEARCH CENTER Evaluation of Performance n Sales managers should provide continual guidance and feedback n Use more quantitative methods of evaluation to reduce bias in the evaluation process Sales Management Qualitative factors communication skills, product knowledge, attitude, selling skills, initiative/aggressiveness, appearance/manner, and knowledge of the competition Quantitative factors sales volume in dollars, sales volume to previous year’s sales, number of new accounts, net dollar profits and sales volume by dollar quota
  46. 46. ARISE TRAINING & RESEARCH CENTER Territory Organization and Management n Which method to organize the territory? n By product line or by geographical area n Around customer Sales Management u The salesperson calls on customers that represent dozens of different industry (more traditional) u The salesperson is asked to call on customers in one or two specific industries, regardless of where the customer is located geographically
  47. 47. ARISE TRAINING & RESEARCH CENTER Territory Organization and Management n Each salesperson should feel his/her territory offers as much potential as each colleagues’ territory n Each salesperson should feel the territory division does not require that he/she work any harder than any other salesperson Sales Management Territory Allocation
  48. 48. ARISE TRAINING & RESEARCH CENTER Territory Organization and Management n The sales manager should help the sales force maximize their territories’ potential n Make sure that the salespeople are not meeting their quotas from the large purchases of one key buyer n Utilize market research to ensure no potential accounts are being overlooked in any given territory Sales Management Territory Potential
  49. 49. ARISE TRAINING & RESEARCH CENTER Sales Force Technology n The use of technology among sales forces is growing n Sales managers must be computer literate n Notebook computers, cellular phones, and portable fax machines
  50. 50. ARISE TRAINING & RESEARCH CENTER Sales Force Technology nPalm Computing, Inc.
  51. 51. ARISE TRAINING & RESEARCH CENTER Legal and Ethical issues n Obey the instructions of the company n Act with “due diligence” n Be responsible for the company’s property n Exhibit loyalty n Relay information to the company that is relevant Salesperson’s Obligations
  52. 52. ARISE TRAINING & RESEARCH CENTER Legal and Ethical issues Company’s Responsibility n Comply with any agreement made between the company and the salesperson n Reimburse the sales expenses incurred while carrying out the business n Warn the salesperson of any risks associated with business practices n Protect the salesperson against legal liability
  53. 53. ARISE TRAINING & RESEARCH CENTER Unethical/Illegal Behaviors n Price discrimination and unfair pricing n Gifts, gratuities, and bribes n Misleading advertising n Unfair competitive practices n Defrauding customers n Unfair credit practices n Price collusion with competitive firms
  54. 54. ARISE TRAINING & RESEARCH CENTER Selling Activities n Performing the sales function n Working with orders n Servicing the product n Servicing the account n Providing the information to management n Participating in conferences/meetings n Training and recruiting n Entertaining customers n Traveling n Working with distributors
  55. 55. ARISE TRAINING & RESEARCH CENTER Missionary Selling Technical Selling New-business Selling Retail Selling n Build sales volume by providing customers with promotional assistance in the form of advertising and sales promotion Trade Selling Specific Types of Sales Jobs Telemarketing
  56. 56. ARISE TRAINING & RESEARCH CENTER Trade Selling Technical Selling New-business Selling Retail Selling n Where trade salespeople sell to, missionary salespeople sell for its direct consumers Missionary Selling Specific Types of Sales Jobs Telemarketing
  57. 57. ARISE TRAINING & RESEARCH CENTER Missionary Selling Trade Selling New-business Selling Retail Selling n Often technically trained in chemistry, engineering, and computer science n Support the regular sales force or help sell the product Technical Selling Specific Types of Sales Jobs Telemarketing
  58. 58. ARISE TRAINING & RESEARCH CENTER n Used in industries that have one time or very infrequent sales, thus, salespeople must constantly develop new leads to generate sales Specific Types of Sales Jobs Missionary Selling Trade Selling Technical Selling Retail Selling New-business Selling Telemarketing
  59. 59. ARISE TRAINING & RESEARCH CENTER n Wide range of skills required n Can require knowledge, communication skills, and ability to work with diverse customers Specific Types of Sales Jobs Missionary Selling Trade Selling Technical Selling New-business Selling Retail Selling Telemarketing
  60. 60. ARISE TRAINING & RESEARCH CENTER n Telemarketing uses outbound calls to: n Open new accounts n Qualify advertising leads n Service existing business Specific Types of Sales Jobs Missionary Selling Trade Selling Technical Selling New-business Selling Telemarketing Retail Selling
  61. 61. ARISE TRAINING & RESEARCH CENTER n Aptitude n Skills Level n Motivational Level n Role Perceptions n Personal Characteristics n Adaptability Salesperson Performance
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