Presented by : Obed Fuk Liang (Indonesia’s Youngest Future Business Leader – SWA 2010) Personnel Selling Strategies
Contents Conclusions How to Apply ? How to Design ? The Benefits of Personnel Selling The Concepts of Personnel Selling
Formulation of a Sales Program The Environment Marketing Strategy <ul><li>Sales Planning </li></ul><ul><li>Demand Forecast </li></ul><ul><li>Quotas and budgets </li></ul><ul><li>Deployment </li></ul><ul><li>Territory Design </li></ul><ul><li>Routing </li></ul>Sales Management Activities
Personnel Selling Defined “ Direct face-to-face communication between sellers and potential buyers.”
Emphasis Should be on Long-Term Relationship Building
<ul><li>“ Sales people and the selling function are key success factors in modern organizations.” </li></ul>Sales person has to generate revenue for the company.
<ul><li>“ CHANGE </li></ul><ul><li>is the Central Theme in Sales Management Today” </li></ul>
The Importance of Integrating Sales with Other Business Functions “ Integrating sales with other organizational functions is critical to firm success” (HR Chally Group, 2007)
IT Source HR Chally Group (2007), The Chally World Class Excellence Research Report: The Route to the Summit Dayton, OH: HR Chally Group The Importance of Integrating Sales with Other Business Functions SALES HR Manufacturing Marketing
The Concepts of Personnel Selling The Sales Person has first experience with customers and posses variable knowledge that would be useful to the company. Market Today Customer Relationship Management is important in business.
What personal characteristics and abilities are related to successful sales performance ?
Key Success Factor in Selling Source Greg W. Marshall, Daniel J. Goebel, and William C. Moncrief, “Hiring for Success at the Buyer-Seller Interface, “ Journal of Business Research 56 (2003), pp. 247-55. Copyright 2003, reprinted with permission from Elsevier. 215 Sales Manager Variety of Industry To rate from 60 key SF TOP 20 key SF By Greg W. Marshall, Daniel J. Goebel and William C. Moncrief
Sales Managers’ importance ratings of success factors for professional sales people Mean S.D. Listening skills 6.502 0.683 Follow up skills 6.358 0.772 Ability to adapt sales style from situation to situation 6.321 0.687 Tenacity-sticking with a task 6.107 0.924 Well organized 6.084 0.889 Verbal communication skills 6.047 0.808 Proficiency in interacting with people at all levels of a customer’s organization 6.000 0.991
Stages of the Selling Process Source: F. Robert Dwyer and John F. Tanner, Business Marketing: Connecting Strategy, Relationships, and Learning (New York: McGraw Hil/Irwin, 2008) 4. Presenting the Sales Message 3. Qualifying the Prospect 2. Opening the Relationship 1. Prospecting for customer 6. Servicing the Account 5. Closing the Sales
The Customer’s Perspective <ul><li>Sales Force as . . . </li></ul><ul><li>Be personally accountable for our desired results </li></ul><ul><li>Understand our business </li></ul><ul><li>Be on our side </li></ul><ul><li>Design the right applications </li></ul><ul><li>Be easily accessible </li></ul><ul><li>Solve our problems </li></ul><ul><li>Be creative in responding to our need </li></ul>
Customer Orientation Customer Centric The Successful market orientation requires that the firm placed the customer in the center of all strategic decisions and firm activities. They have the customer at the center of their BUSINESS MODEL Market Orientation The Actions taken by a firm that is market oriented would be focused on aligning all the various organizational processes and functions toward maximizing the firm’s success in the competitive market place.
<ul><li>CRM is a comprehensive business model for increasing revenues and profits by focusing on customers </li></ul>CRM as “a journey of strategic, process, organizational, and technical change where by a company seeks to better manage its enterprise around customer behaviors.” (Price Waterhouse Coopers)
The TOP Three of CRM Objectives Acquisition of the right customers, based on known or learned characteristics, which drive growth and increased margins. The ability to retain loyal and profitable customers and channels to grow the business profitably Increased individual customer margins, while offering the right products at the right time Customer Retention Customer Acquisition Customer Profitability
CRM Process Cycle Action Source: Ronald S. Swift, Accelerating Customer Relationship: Using CRM and Relationship Technologies (Upper Saddle River, NJ: Prentice Hall PTR, 2001, p.40. Customer Interaction Analysis & Refinement Knowledge Discovery Market Planning Learning
The advantages of CRM <ul><li>1. Reduce advertising/promotional costs </li></ul><ul><li>2. Make it easier to target specific customers by focusing on their need </li></ul><ul><li>3. Make easier to track the effectiveness of a given promotional campaign </li></ul><ul><li>4. Allows organizations to compete for customers based on service, not prices </li></ul><ul><li>5. Prevents over spending on low-value clients or understanding on high-value ones. </li></ul><ul><li>6. Speed the time it takes to develop and market product </li></ul><ul><li>7. Improves use of the customer channel </li></ul>
CRM: The Failures Are Your Fault <ul><li>Lack of FOCUS </li></ul><ul><li>No Change Management Initiative in Place </li></ul><ul><li>Minimal buy-in </li></ul><ul><li>Business unit are SILOS </li></ul><ul><li>Complicated procedures </li></ul><ul><li>Poor Training </li></ul>Source: Kathleen Cholewka, “CRM: The Failures Are Your Fault,” Sales and Marketing Management 154 (January 2002), pp.23-24
Advantages of Personnel Selling Disadvantages of Personnel Selling 1. More Persuasive Small number of customer 2. More detail and complex information than can be transmitted More costly per person reached 3. Open to price negotiation Needed the negotiation skills
CONCLUSIONS The key success factors needed in personnel selling all point to professionalism, strong skills, and broad and deep content knowledge that allow sales person to maximize his/her performance and thus rewards. It is especially interesting to examine the sales activities performed by sales people today. Quite a few new activities have been added in recent years, DRIVEN LARGELY by TECHNOLOGY and the move from transactional to relationship selling approaches.
<ul><li>“ The cost five times as much to attract </li></ul><ul><li>new customers than </li></ul><ul><li>to maintain </li></ul><ul><li>existing ones.” </li></ul>
<ul><li>Source : </li></ul><ul><li>Johnston I Marshall (2009), “Sales Force Management” : Ninth Edition, Churchill/Ford/Walker’s </li></ul><ul><li>Matthew Schwartz (2006), “Fundamentals of Sales Management for the Appointed Sales Manager “ </li></ul><ul><li>Renie McClay (2010), “Fortify your Sales Force – Leading and Training Exceptional Teams “ </li></ul>
THANK YOU VERY MUCH! March 31, 2011 - Aryaduta Hotel