CH.13

Transactional selling

"Putting on the hard sell" High-pressure process hat focuses on making an immediate sale with no concern for developing long-term customer relationship

Channels

-Direct Channel -Retailer Channel -Wholesaler Channel -Agent/Broker Channel

Trade Promotion Tools - B2B

-Discounts -Allowances -Free goods -Push money -Specialty advertising items

advantages of personal selling

-Flexibility -Detailed Explanations -Variable Sales Message -Direct at Qualified Prospects -Variable/Adjustable Sales Costs -Effective at gaining Customer Relationships

Key Decisions When Developing the Sales Promotion Program

-Size of the incentive -Conditions for participation -Promotion and distribution of the actual sales promotion program -Length of the promotional program -Evaluation

Basic compensation plans

-Straight salary -Straight commission -Salary plus bonus -Salary plus commission

Types of sales force structures

-Territorial -Product -Customer (or market)

Tools of supervision

-call plan -time-and-duty analysis -Sales force automation system

role of the sales force

-links the company with its customers - coordinates marketing and sales - two-way personal communication -more effective than advertising in complex selling situations -works to produce customer satisfaction and company profit

Compensation elements

-salary -bonuses -commissions -expenses -fringe benefits

Personal Selling Process

1) Presentation and Demonstration -Benefits of the product are presented/demonstrated - Product Story, Benefits -Understanding prospect needs is key 2) Handling Objections -Seeking Out, clarifying, and overcoming customer objections to buying 3) Closing -Asking for the order 4) Follow Up -Following up after the sale to ensure customer satisfaction and repeat business

Personal Selling Process -Solving Customer Problems

1) Prospecting and Qualifying 2) Preapproach 3)Approach 4) Question Based Selling

Partnership Selling

Buyers and Sellers work together to create customized solutions

compensating Salespeople

Compensation plans should direct the sales force toward activities that are consistent with overall marketing objectives -gain market share -solidify market leadership -maximize profitability

Supervising Salespeople

Effective supervisors: -provide direction to the sales force -motivate the sales force -help salespeople work smart by doing the right things in the right ways

Business Promotion Tools

Includes many of the same tools used in trade and consumer promotions -Conventions & trade shows -Sales contests

Preapproach

Learning as much as possible about a prospective customer prior to making a sales call

Question Based Selling

Listen and learn, ask a minimum of five questions; personalize the relationship

SaaS

Salesforce.com

Sales Force Management

The analysis, planning, implementation, and control of sales force activities. It includes setting and designing sales force strategy; and recruiting, selecting, training, supervising, compensating, and evaluating the firm's salespeople

handling objections

The sales step in which a salesperson seeks out, clarifies, and overcomes any customer objections to buying

product sales force structure

a sales force organization in which salespeople specialize in selling only a portion of the company's products or lines

customer (or market) sales force structure

a sales force organization in which salespeople specialize in selling only to certain customers or industries

territorial sales force structure

a sales force organization that assigns each salesperson to an exclusive geographic territory in which that salesperson sells the company's full line

sales quota

a standard that states the amount a salesperson should sell and how sales should be divided among the company's products

Salesperson

an individual acting for a company by performing one for a company by performing one or more of the following activities: prospecting, communicating, servicing, and information gathering

salesperson

an individual who represents a company to customers by performing one or more of the following activities: prospecting, communicating, selling, servicing, information gathering, and relationship building

sales force management

analyzing, planning, implementing, and controlling sales force activities

event marketing (or event sponsorships)

creating a brand-marketing event or serving as a sole or participating sponsor of events created by others

CRM

customer relationship management

Prospecting

identifying potential customers

Approach

knowing how to meet the buyer to get the relationship off to a good start

PRM

partner relationship management

personal selling

personal presentations by the firm's sales force for the purpose of engaging customers, making sales, and building customer relationships

Relationship selling

process of building long-term customer by developing mutually satisfying, win-win relationships with customers

business promotions

sales promotion tools used to generate business leads, stimulate purchases, reward customers, and motivate salespeople

trade promotions

sales promotion tools used to persuade resellers to carry a brand, give it shelf space, promote it in advertising, an push it to consumers

consumer promotions

sales promotions tools used to boost short-term customer buying and engagement or enhance long-term customer relationship

inside sales force

salespeople who conduct business form their offices via telephone, online and social media interactions, or visits from buyers

outside sales force (or field sales force)

salespeople who travel to call on customer in the field

Qualifying

screening leads

sales promotion

short-term incentives to encourage the purchase or sale of a product or a service

Sales Promotion

short-term incentives to encourage the purchase or sale of a product or service -short shelf life

closing

the sales step in which a salesperson asks the customer for an order

follow-up

the sales step in which a salesperson follows up after the sale to ensure customer satisfaction and repeat business

preapproach

the sales step in which a salesperson learns as much as possible about a prospective customer before making a sales call

approach

the sales step in which a salesperson meets the customer for the first time

prospecting

the sales step in which a salesperson or company identifies qualified potential customers

presentation

the sales step in which a salesperson tells the "value story" to the buyer, showing how the company's offer solves the customer's problems

selling process

the steps that salespeople follow when selling, which include prospecting and qualifying, preapproach, approach, presentation and demonstration, handling objections, closing and follow-up

Sales management's challenge

to transform salespeople into company advocates for value

social selling

using online, mobile, and social media to engage customers, build stronger customer relationships, and augment sales performance

team selling

using teams of people from sales, marketing, engineering, finance, technical support, and even upper management to service large, complex accounts