Chapter 17: Personal selling & sales management

What are some methods of Lead Generation ? (hint 3)

Cold Calling- A form of lead generation in which the salesperson approaches potential buyers without any prior knowledge of the prospects' needs or financial status. *Usually performed by an internal sales support person rather than a top salesperson. Referral- A recommendation from a customer or business associate. * Advantages include: Highly qualified leads, higher closing rates, larger initial transactions, & shorter sales cycles. Networking- A process of finding out about potential clients from friends, business contacts, co-workers, acquaintances, & fellow members in professional & civic organizations to identify potential clients.

How can data mining be used?

To identify the most profitable customers & prospects.

Which of the following is not the type of data companies need to capture?

personal data

Sales Process (Sales Cycle)

the set of steps a salesperson goes through in a particular organization to sell a particular product or service. -Can be unique for each product or service. -Depend on: Features of the product or service. Characteristics of customer segments. Internal processes in place within the firm.

Capture Customer Data

•In a CRM system, the issue is not how much data can be obtained, but rather what types of data should be acquired •The traditional approach for acquiring data is through channel interactions, which include store visits, conversations with salespeople, interactions via the Web, phone conversations, and wireless communications •The large volume of data resulting from a CRM initiative can be managed effectively only through technology

Explain Sales Training the Sales Force

- Sales training includes instruction on company policies & practices, selling techniques, product knowledge, industry & customer characteristics, & non-selling duties. - Training can take place in a classroom environment, in the field, or using online modules.

Explain the sales environment

- The sales environment changes constantly as new competitors enter the market & old competitors leave. - Rapid increase in new sales technologies are changing the ways in which customers interact with sales people & learn about products & suppliers. * In order for companies to successfully sell products or services, they must be effective at personal selling, sales, management, customer relationship management (CRM) & technology*

Comparison of Personal Selling & Advertising or Sales Promotion (Chart)

-Based on certain customer & product characteristics. -Personal selling becomes more important as the number of potential customers decreases, as the complexity of the product increases, & as the value of the product grows.

Concluding by summarizing the approach.

-Creating a customer profile during the approach helps salespeople optimize their time & resources. -This approach is concluded by summarizing the prospect's need, problem, & interest. Salesperson should get a commitment from the customer to some kind of action.

Companies with CRM (Customer relationship management) systems follow what ?

-Customer Centric: A philosophy under which the company based on data generated through interactions between the customer & the company. -CC company customizes its product & service offerings based on data generated through interactions between the customer & the company. -Knowledge Management: The process by which customer information is centralized & shared in order to enhance the relationship between customers & the organization. *Information collected includes experiential observations, comments, customer actions, & qualitative facts about the customer. With CRM, the terms of interaction are defined by the customer & not the organization. Interaction- The point at which a customer & a company representative exchange information & develop learning relationships. -Social media have created numerous ways for companies to interact with customers.

What are the sales managers responsibilities & decisions?

-Defining sales goals & the sales process: A quota is a statement of the salesperson's sales goals, usually based on sales volume alone. -Determining the sales force structure: HP salespeople might also be assigned to specific industries or markets. -Recruiting & training the sales force: GE uses its website to provide prospective salespeople with explanations of different career entry paths. -Compensating & motivating the sales force: Mary Kay Cosmetics offers unique type of incentive, whereby salespeople can earn the use of different types of vehicles. -Evaluating the sales force: The final task of sales managers is evaluating the effectiveness & performance of the sales force. *sales management stems form success-orientated sales force that accomplishes its mission economically & efficiently*

How is closing the sale in different countries/markets conducted?

-In foreign markets, the sales efforts should be tailored to the appropriate way of doing business for that culture. -In European & South American cultures, it is customary to kiss a business associate on both cheeks instead of shaking hands.

Explain Step 5- Handling Objections

-Rarely does a prospect say "I'll buy it" right after a presentation. -The potential buyer may insight that the price is too high or that the good or service will not satisfy the present need. -A good salesperson considers objections a legitimate part of the purchase decision.

What is the focus on building mutual trust between the buyer & seller.

-Relationship salespeople become consultants, partners, & problem solvers. - This form of selling helps retain loyal customers who purchase from the company often with an increased share of purchase.

How do evaluate the Sales Force?

-Sales managers must evaluate the effectiveness & performance of the sales force. -Performance measures include sales volume, contribution-to-profit, calls per order, sales or profits per call, or percentage of calls achieving specific goals such as sales of products that the firm is heavily promoting. -Performance information helps the sales manager monitor a salesperson's progress through the sales cycle.

During the assessment, the salesperson must know about what?

-The product or service: A product knowledge is the cornerstone for conducting a successful needs analysis. -Customers & their needs: The professional salesperson brings each client business- building ideas & solutions to problems. - The competition: The salesperson must know as much about the competitor's company & products as he or she knows about his or her own company. -The industry: Knowing the industry requires active research by the salesperson.

Explain the 8 traits sales managers look for in applicant?

1) Ego Strength- Great salespeople have a strong, healthy self-esteem & the ability to bounce back from rejection. 2)Sense of urgency & competitiveness- These traits push their sales to completion, as well as help them persuade people. 3) Assertiveness- Effective sales people have the ability to be firm in 1-1 negotiations, to lead the sales process, & to get their point across confidently without being overbearing or aggressive. 4) Sociable- Wanting to interact with others is a necessary trait for great salespeople. 5) Risk Takers- Great salespeople are willing to put themselves in less-than-assured situations, & in doing so, often are able to close unlikely sales. 6) Capability to understand complex concepts- Quick thinking & comprehension allow salespeople to quickly grasp & sell new products or enter new sales areas. 7) Creativity- Great sales people develop client solutions in creative ways. 8) Empathy- The ability to place oneself in someone else's shoes, enables salespeople to understand the client.

What are the 3 limitations of personal selling

1. Cost per contact is much greater than for mass forms of communication. 2. If the sales force is not properly trained, the message provided can be inconsistent & inaccurate, so continual sales force management & training are necessary. 3. Salespeople can convince customers to make unnecessary purchases.

What are the 7 steps in the selling process?

1. Generating Leads 2. Qualifying Leads 3. Approaching the customer & probing needs 4. Developing & proposing solutions 5. Handling objections 6. Closing the sales 7. Following up

What are the 5 advantages of personal selling?

1. Provides detailed explanation or demonstration of the product. 2. Sales message can be varied according to motivations & interests of each prospective customer. 3. Directed only to qualified prospects. 4. Costs can be controlled by adjusting the size of the sales force in 1-person increments. 5. More effective in obtaining a sale & gaining a satisfied customer in comparison to other forms of promotion.

Explain Step 7- Following Up

A salespersons responsibilities do not end with making the safe & placing the order. Follow-up: The final step of the selling process, in which the salesperson ensures delivery schedules are met, goods or services perform as promised, & the buyers' employees are properly trained to use the products. *Today's customers are less loyal to brands & vendors. Therefore, follow-up is critical in relationship building.Marketers are using automated email follow-up marketing in an effort to enhance customer satisfaction.

Explain Step 4- Developing & Proposing Solutions

After compiling information about the client's needs & wants, the salesperson develops a solution in whihc the salesperson's product or service solves the clients's problem or need. These solutions are typically presented as a sales proposal during a formal sales presentation. Sales proposal- A formal written document or professional presentation that outlines how the salesperson's product or service will meet or exceed teh prospect's needs. Sales presentation- A meeting in which the sales person presents the sales proposal to a prospective buyer. *Usually, there is only 1 opportunity to present solutions & sales people must be able to present the proposal & handle any customer objections confidently & professionally.

Define Touch Points

Areas of a business where customers have contact with the company & data might be gathered. -Touch points might include a customer registering for a particular service; a customer communicating with customer service for product information; a customer completing and returning the warranty information card for a product; or a customer talking with salespeople, delivery personnel, and product installers. *Web-based interactions: Web-based interactions are an increasingly popular touch point for customers to communicate with companies. *Social CRM- As social media have become more popular, many companies have begun to use these media for "social CRM". * Point-of-sale interactions: Another touch point is through point of sale interactions in stores or at information kiosks.

Explain Step 3- Approaching the Customer & Probing Needs

Before approaching customer, the salesperson should learn as much as possible about prospect's organization & its buyers. This process, is called Preapproach. Preapproach- A process that describes the "homework" that must be done by a salesperson before he or she contacts a prospect. -Visiting website, social media sites, & standard reference sources. -Determining if the client should be approached by a personal visit, phone call, or a letter. * Ultimate goal for this approach is to conduct an assessment to find out as possible aobut the prospect's situation. Needs Assessment- A determination of the customer's specific needs & wants & the range of options the customer has for satisfying them.

Explain effective sales management

Begins with a determination of sales goals. -Sales force goals are usually stated in terms of dollar sales volume, market share, & or profit level. Quota- A statement of the salesperson's sales goals, usually based on volume. Sales departments are most often organized by geographic regions, product lines, marketing functions performed, markets, industries, individual clients, or accounts. - Market or industry-based structures & key account structures are gaining popularity.

Explain the business-focused sales person.

Business-focused salespeople call on other companies to sell their products.

Explain the consumer-focused sales person.

Consumer-focused salespeople require customers to come directly to a retail store, but some salespeople travel to their customer's locations.

What is generating leads?

Creating a list of prospects who may have an interest in purchasing the product.

Explain Step 6- Closing the Sale

Customers usually give signals when they are ready buy or not interested. Negotiation- The process during which both the salesperson & the prospect offer special concessions in an attempt to arrive at a sales agreement. Effective negotiators avoid: -Using price as their negotiation tool & show increased value in their products or services instead. -Giving unilateral concessions.

Which of the following is a responsibility for sales management? Which of the following is a responsibility for sales management?

Defining sales goals

Which of the following is not a step in CRM?

Deleting old data every year.

Which step provides the opportunity for a company to impress on the buyers the value of its offerings?

Developing & proposing solutions.

Define Campaign Management

Developing product or service offerings customized for the appropriate customer segment & then pricing & communicating these offerings for the purpose of enhancing customer relationships. -Campaigns are based on data obtained from customers through various interactions. -If a company has identified its best customers, it should make every effort to maintain & increase their loyalty. - Loyalty programs reward loyal customers for making multiple purchases. -CRM provides opportunities to cross-sell related products to each customer.

What does newer thinking in personal selling emphasize?

Developing relationships with the buyers.

Explain Compensating & Motivating the Sales Force

Good planning will ensure that compensation attracts, motivates, & retrains good salespeople. -Companies with low levels of compensation suffer higher turnover rates & higher costs. -Compensation-based plans should be paired with rewards or incentives : *Recognition at ceremonies, plaques, monetary-based awards such as vacations, merchandise, pay raises, or cash bonuses. -Recognition & rewards can help increase overall sales volume, add new accounts, improve morale & goodwill, move slow items, & bolster slow sales. Managers must be careful not to encourage unethical behavior.

What does face-to-face communication aim for?

Informing & influencing customers to increase sales.

Companies create a centralized database that can be shared by everyone. This is called:

Knowledge management

Explain Step 1- Generating Leads

Lead Generation (prospecting): Identification of those firms & people most likely to buy the seller's offerings. -Sales leads in many different ways: *Advertising *Trade shows & *conventions *Social Media *Webinars *Direct mail & *telemarketing programs.

How should companies solve the high turnover of salespeople?

Make an extra effort to select the appropriate people.

Why do salespeople have a high turnover at the beginning of their careers?

Sales performance can be clear in a very short period.

A formal document that outlines how the company will deliver is called:

Sales proposal

What is ideal for personal selling?

Small Customers

Customer-Centric Approach for Managing Customer Interaction

This approach can occur through different communication channels, such as phone, the internet, or a salesperson. -Any activity or touch point a customer has with an organization, either directly or indirectly, constitutes an interaction.

Explain Step 2: Qualifying Leads

When prospect shows interest in learning more about a product, the salesperson has the opportunity to qualify the lead. Lead Qualification- Determination of sales prospect's (1) recognized need (2) buying power, & (3) receptivity & accessibility. Recognized Need: Preliminary questioning can often provide the salesperson with enough information to determine whether there is a need. Buying power: Buying power involves both authority to make the purchase decision & access to funds to pay for it. Receptivity & accessibility- The prospect must be willing to see the salesperson & be accessible tot he sales person. -Lead qualification is usually handled by prequalification systems. These systems help the sales force spend more time with interest customers.

Relationship Selling ( Consultative Selling)

a sales practice that involves building, maintaining, and enhancing interactions with customers in order to develop long-term satisfaction through mutually beneficial partnerships. -Multistage process that emphasizes personalization & win-win outcomes. -Emphasis shifts from one-time sale to a long-term relationship.