MKTG Ch. 12
New-Business Salespeople
Sales reps who are responsible primarily for finding new customers and securing their business (often clients of competing firms)
Technical Specialists
Sales reps who contribute expertise in the form of product demonstrations and trials, offer recommendations for equipment and setup of machinery, and provide systems integration support
Consultative Sellers
Sales reps who focus on developing long-term relationships by developing a deep knowledge of the customer's industry, business issues, and needs
Key-Account Sellers
Sales reps who focus on establishing and maintaining partnership relationships with a small set of 3-5 named accounts; able to add value to the relationship by developing a deeper understanding of the customer's business
Missionary Salespeople
Sales reps who generate sales by promoting the firm and encouraging demand for its products (don't actually get or take orders from customers)
Order-Taker Salespeople
Sales reps who primarily process orders that a customer initiates -Most commonly found within retail and inbound call-center settings
Delivery Salespeople ("route salespeople")
Sales reps whose chief role is product delivery -Often employees of manufacturers and wholesalers
Pre-Approach
Salesperson does research and preparation before contacting the customer -Research the company and the environmental forces at work in the customer's life or in the organization's industry
Farmer (salesperson)
Salesperson who cultivates existing accounts and current customer relationships to drive revenue growth and minimize churn
Hunter (salesperson)
Salesperson who focuses on acquiring accounts new to the selling firm
What is arguably the most important, and most difficult, step in the sales process?
Setting the first appointment
Once a prospect has been qualified, the salesperson can adjust the amount of _____________ directed toward securing a sale. What is it based on?
effort; based on probability of obtaining the sale and on the amount of expected revenue
What elevates the most highly successful sales professionals above other who are equally knowledgeable and skilled?
In rough times they're able to muster the necessary mental and emotional discipline to stay focused and constructive
What is a common cost-based approach to sizing for sales organizations?
Incremental Productivity Method
Benefits (FAB approach)
Individual values attached to the advantages offered by various product features
Sales 2.0
Refers to how salespeople are using Web 2.0 tools and social media to sell more effectively
Selling-Related Knowledge
Sales abilities and understanding of selling techniques
Feature-Advantage-Benefit (FAB) Approach
Sales approach that conveys the product's major features, describes its advantages compared with alternatives, and details the benefits it'll provide the customer
The width of the span of control has certain advantages for a sales organization, such as?
-A flat sales organization (one with a wide span of control) creates greater efficiency -On the other hand, multiple levels of management, each with a narrower span of control, allow managers to spend more time with each employee and key customers
Assumptive Close
-Act like buyer has already decided to purchase -"What date would you like the product delivered?" If customer responds with a specific date, the salesperson knows the customer has decided to make the purchase
Describe the technique of acknowledging the objection.
-Allows salesperson an additional opportunity to stress the benefits of the product -"Yes, our prices are higher because our product is better"
What are problem questions?
-Ask about buyers' problems, difficulties, or dissatisfactions with an existing situation -Clarify and make more explicit buyers' implied needs -Provide the raw material upon which to build the rest of the presentation
What are implication questions?
-Ask about the consequences or effects of the buyer's situation -Show that the buyer's problem is significant enough to justify action -Help transform problems into explicit needs in the mind of the buyer and expand the perceived value of finding a solution
Describe the specialization by selling activity dimension of a specialist sales force.
-Best illustrated by the delineation between the "hunter" and "farmer" types of salespeople
Describe the specialization by industry dimension of a specialist sales force.
-Calls for the creation of a separate sales operation for each major industry a company is selling into -Assuming products of equivalent quality, this dimension is recommended when hiring a sales professional with deep industry knowledge will provide a competitive edge over a generalist representative
Specialist Sales Force
Sales force structure in which sales reps are grouped along 1 of 3 dimensions: product, selling activity, or industry vertical
Describe the follow-up stage of the personal selling process.
-Checking in after the sale to ensure customer satisfaction -Critical step in creating customer satisfaction and building long-term relationships with customers
Give some examples of how various selling job roles use sales playbooks.
-Corporate marketing develops the content in a playbook to maintain consistency around a company's brand and other promotional elements -Salespeople use assets (collateral info sheets, proposals, and contracts for individual prospects or customer accounts) in the playbooks to customize and configure their presentations -Some even allow sales reps to provide ratings/comments that provide peer-driven guidance about the most effective marketing and sales messaging
What are need-payoff questions?
-Designed to get the buyer thinking about the value of finding a solution to the problem -By focusing on the solution, these questions reduce objections, moving the discussion toward action and commitment
Generalist Sales Force
Sales force structure in which sales reps sell all of the company's market offerings within their assigned territory -Often cover smaller areas, spend more time with customers & are more efficient
Describe how sales managers have oversight of selling efforts at varying levels of the organizational hierarchy.
-Establish sales objectives, and forecast and develop annual sales quotas for their assigned territories -Work with HR personnel to recruit, select, train, supervise, and evaluate sales employees -Often work directly in the field with their assigned reps -Serve as a conduit for info received from the front lines to senior management about ongoing market trends and competitive actions
Describe the technique of denial (objections).
-If a customer mentions something that is completely false, the salesperson should strongly deny the point, but only in a way that isn't offensive or insulting to the customer -"That is not accurate. Here's what the situation actually is..."
Describe the product specialization dimension of a specialist sales force.
-Most effective when vast knowledge is required to sell the good/service you're taking to the market (like in high-tech and medical fields)
Alternative Close
-Offer more than 1 clearly defined alternative to the customer -Works well in many different situations when you're seeking agreement, not just selling products
What are some factors that make B2B sales more complex?
-Often larger financially and take longer to complete -Often multiple decision makers -Buyers are often knowledgeable and experienced negotiators
Summary Close
-Repeating what has already been agreed to in the course of the presentation, typically via earlier trial closes -Summarize key benefits and how they meet customer's stated needs before asking for the sale
Describe the technique of postponing (objections).
-Salespeople should postpone addressing objections if the full context of an appropriate answer hasn't been developed -Works best if salesperson plans to address objection shortly; postponing too long frustrates customers and reduces trust
Customer-oriented sales approaches are most effective when the salesperson has what 3 resources/abilities?
1) A positive self-concept 2) Market-related knowledge 3) Sales-related knowledge
Ideally, the sales presentation will do what 3 things?
1) Accurately convey the product's major features 2) Describe its advantages in comparison with alternatives 3) Detail how it'll provide benefits for the potential customer
What are 3 common techniques of overcoming objections?
1) Acknowledging the objection 2) Postponing 3) Denial
What are 3 characteristics that a new-business sales person needs to exhibit high levels of?
1) Credibility 2) Creativity 3) Professionalism
What are 2 common market-based approaches to sizing for sales organizations?
1) Equalized workload method 2) Competitive benchmarking
What are the two types of sales force structures?
1) Generalist 2) Specialist
A sales force's need for generalists or specialists is guided by what 2 factors?
1) Market consideration 2) Firm's overall marketing strategy
What are the 5 factors that influence the degree to which a firm uses personal selling (what makes it more effective)?
1) New-to-the-world (like a self-driving vehicle) 2) Infrequently purchased (like a young couple buying a new home) 3) Highly technical or complex (require salesperson to educate customer on benefits & proper use) 4) Viewed as risky (salesperson builds trust; investments) 5) Customizable (salesperson helps configure to match customer needs)
What are 3 important by-products of the follow-up stage?
1) Positive word of mouth 2) Customer testimonials 3) Direct referrals
What 2 steps of the personal selling process take place before the sales call?
1) Prospecting 2) Pre-Approach
What are the 7 steps to the personal selling process?
1) Prospecting and qualifying 2) Preapproach 3) Approach 4) Presentation 5) Handling Objections 6) Gaining commitment 7) Follow-up
What are 2 common nonquantitative forecasting approaches?
1) Sales Force Composite 2) Survey of Buying Intentions
SPIN is an acronym that refers to the questions that feature most prominently in successful sales calls, which are?
1) Situation questions 2) Problem questions 3) Implication questions 4) Need-payoff questions
What are 3 common closing approaches?
1) Summary close 2) Alternative close 3) Assumptive close
What are some techniques salespeople use to qualify prospects?
1) Talking with the target customer 2) Doing market research to better understand the target customer's needs, wants, and ability to pay
What 4 steps of the personal selling process take place during the sales call?
3) Approach 4) Presentation 5) Handling Objections 6) Gaining Commitment
Which step of the personal selling process takes place after the sales call?
7) Follow-up
Sales Managers
Sales personnel who have oversight of selling efforts at varying levels of the organizational hierarchy
Approach
Sales rep meets the customer for the first time
Incremental Productivity Method
A cost-based sales force sizing approach that compares the cost of adding one salesperson to expected additional sales revenue -company will keep adding salespeople as long as the revenue exceeds the added cost
Customer Advocacy
A form of customer service in which companies focus on what's best for the customer -For a salesperson, it builds credibility with the customer
Competitive Benchmarking
A market-based sales force sizing approach in which sales managers match the size of competitors' sales forces
Equalized Workload Method
A market-based sales force sizing approach in which sales managers use sales-activity calculations to determine proper staffing levels -Determine segment's market potential, tally average number of sales calls need to close each sale
Sales Forecast
A projection of achievable revenue over an identified future period
Relationship Selling
A sales approach that involves building and maintaining customer trust over a long period of time (not just meeting periodic sales quotas)
Personal Selling Process
A sequence of 7 steps that salespeople follow to acquire new customers and obtain orders
Prospect
An individual (or group) capable of making the decision on a good/service a salesperson is selling
Market-Related Knowledge
An understanding of the goods, services, and processes within one's firm and of key business issues that affect the customer's success -How products/services can create value for customers
Lead Scoring
Analytics-based sales approach in which a company numerically rates its best prospective customers -Runs internal and external data through statistical models to identify traits that make the customer more likely to purchase
What is a drawback of a generalist sales force?
As the complexity of a firm's portfolio of products develops, and as the needs of customer segments grow more diverse, a single generalist salesperson may not be able to perform the job effectively
Gaining Commitment
Asking a sales prospect to move forward with the sales process, ultimately leading to a purchase -Requires salesperson to overcome basic human fear of rejection
Features (FAB approach)
Attributes or facts relating to the product being sold or demonstrated
Describe the trial closes approach used in sales training programs.
Sales reps ask questions throughout the sales presentation that test the buyer's readiness to commit -These questions enable salesperson to ascertain 1) where the buyer is in the process and 2) the right time to ask for the sale
Personal selling has emerged as arguably the most important decision factor in the large, complex sales that are common in ___________ settings.
B2B
Team Selling
Sales reps organizes experts from across the extended firm to support new-customer acquisition and ongoing customer relationship management -Team differs from situation to situation, depending on the specific needs of the customer
What are situation questions?
Designed to obtain background facts about the buyer's current circumstances -Answers provide a starting point for deciding which potential problems and dissatisfactions to explore
Advantages (FAB approach)
General statements about what the features do; may or may not be connected to an expressed or actual customer need
What are some bases on which sales territories can be defined?
Geography, sales potential, history
______________ and ______________ sales prospects in search of new business opportunities is the lifeblood of most businesses.
Identifying & qualifying
Qualifying
Identifying potential customers within the firm's target market who have a desire for the product, the authority to purchase it, and the resources to pay for it
Feature Dumping
Listing features without tying them to benefits
Quantitative Forecasting
Methods that apply algorithms to estimate sales in future periods -Use historical data or data from sales of similar products/services
Nonquantitative Forecasting ("Subjective forecasts")
Methods that rely heavily on the expert judgement of knowledgeable individuals inside and outside of the organization
Channel Sales Representatives
New-business sales reps who focus on securing new distribution channel outlets
Sales Force Composite
Nonquantitative forecasting method that asks each member of the sales force for his/her best estimate of sales for their individual territories over the coming year, which sales manager then adjusts and aggregates into an overall forecast
Survey of Buying Intentions
Nonquantitative forecasting method that develops a forecast based on how much of a product a sample of customers intend to purchase
Whether they sell directly to customers or seek to secure new distribution intermediaries, all new-business sales people may be accurately described as ___________________.
Order-getters
Sales Playbooks
Technology-enabled tools and processes that provide guided selling assistance to various selling job roles
Personal Selling
The 2-way flow of communication between a salesperson and a customer that is paid for by the firm and seeks to influence the customer's purchase decision
Customer-Oriented Selling
The adoption of the marketing concept at the level of the individual salesperson and customer
Adaptive Selling
The altering of sales behavior during a customer interaction based on perceived info about the selling situation
Objections
The concerns or reasons customers offer for not buying a product
What is a major drawback of professional selling?
The cost involved (sales visits are very expensive)
Sales Territories
The customer groups or geographic districts to which an individual salesperson or a sales team sells
Lifetime Value
The net present value of a customer's business over the span of their relationship with an organization; emphasis on keeping customers for long periods by focusing on customer relationships
Span of Control
The number of salespeople who report to a common manager
Sales Force Management
The planning, direction, and control of personal selling activities, including recruitment, selection, training, motivating, compensation, and evaluation as they apply to the sales force
Prospecting
The search for potential customers
Social Selling
The use of online, mobile, and social media to engage customers, build strong customer relationships, and increase sales
T/F: The cost of acquiring a new customer is up to 5 times more than retaining an existing one.
True
Sales organizations use a number of sizing approaches, which can be broadly categorized as ___________-based or ______________-based.
cost; market
Once the salesperson has succeeded in obtaining a meeting, the next goal is to build ___________ - a friendly relationship - with the decision maker or key influencers.
rapport
To reduce the uncerainty and tension associated with a final close, many sales training programs emphasize the use of ____________ closes.
trial
