MKTG Chapter 17

Sales process (sales cycle)

- The set of steps a salesperson goes through in a particular organization to sell a particular product or service - The process depends on the features of the product or service, characteristics of customer segments, and internal processes in place within the firm.

Sales proposal

a formal written document or professional presentation that outlines how the salesperson's product or service will meet or exceed the prospect's needs

Customer-centric

a philosophy under which the company customizes its product and service offerings based on data generated through interactions between the customer and the company

Referral

a recommendation to a salesperson from a customer or business associate

The success of CRM

building lasting and profitable relationships—can be directly measured by the effectiveness of the interaction between the customer and the organization.

Step 5: Handling Objections

- After a presentation, the prospect often raises objections about price or suitability or asks questions about the proposal and the product, so the sales person should: − Anticipate specific objections, such as concerns about price − Fully investigate the objection with the customer − Be aware of what the competition is offering − Stay calm - Often salespeople can use objections to close the sale.

Step 1: Generating Leads

- Initial groundwork must precede communication between the potential buyer and the salesperson. - Lead generation (_________________) - identification of the firms and people most likely to buy the seller's offerings - Sales leads can be obtained in many different ways, most notably through advertising, trade shows and conventions, social media, webinars, or direct mail and telemarketing programs.

If salespeople do not stay well informed about the products they are selling—which they can accomplish in part through technology—consumers may enter the store knowing more than the salespeople do, which will damage the salesperson's credibility.

- It is also important for salespeople to be aware of and to understand what is being posted about the firm, products, competitors, and even the salespeople.

CROSS-SELLING OTHER PRODUCTS AND SERVICES

- Marketers can use the database to match product profiles and consumer profiles so that they can cross-sell products to customers that match their demographic, lifestyle, or behavioral characteristics. - Internet companies use product and customer profiling to reveal cross-selling opportunities while customers surf their sites. -Past purchases, tracking programs, and the site a surfer is referred from give online marketers clues about the surfer's interests and what items to cross-sell. -Customers can rate products, review products, add products to wishlists, recommend products, and save products for a later purchase to get a more customized experience.

Market or industry based structures...

...are gaining in popularity because they allow personal selling reps to become experts in their fields, which enables them to offer better solutions and service.

Limitations of personal selling:

Cost per contact is __________________ than for mass forms of communication, leading companies to be highly selective about using salespeople. Continual sales force management and training are necessary to ensure the sales message is consistent and accurate. Buyers may experience increased levels of ____________________if a salesperson is too aggressive in selling unneeded items.

Advantages of personal selling:

Detailed product explanations or demonstrations can be provided as needed. Sales messages can be ________________ to the motivations, interests, questions, and objections of each prospective customer. Efficiency comes from only selling to _____________ prospects. Costs can be controlled by adjusting the size of the sales force and resulting expenses in one-person increments. Personal selling is the most effective way of obtaining a sale and gaining a satisfied customer.

RETAINING LOYAL CUSTOMERS

If a company has identified its best customers, it should make every effort to maintain and increase their loyalty. The objective is to build long-term, mutually beneficial relationships between a company and its key customers.

Evaluating the Sales Force

To evaluate the sales force, the sales manager needs feedback—that is, regular information from salespeople. Typical performance measures include sales volume, contribution to profit, calls per order, sales or profits per call, customer satisfaction, or percentage of calls that achieve 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 and pinpoint where breakdowns might be occurring.

DESIGNING TARGETED MARKETING COMMUNICATIONS

Using transaction and purchase data, a database allows marketers to track customers' relationships to the company's products and services and modify the marketing message accordingly. Customers can also be segmented into infrequent users, moderate users, and heavy users. A segmented communications strategy can then be developed based on which group the customer falls into.

Needs assessment

a determination of the customer's specific needs and wants and the range of options the customer has for satisfying them

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

Networking

a process of finding out about potential clients from friends, business contacts, coworkers, acquaintances, and fellow members in professional and civic organizations

Pre-approach

a process that describes the "homework" that must be done by a salesperson before he or she contacts a prospect

Quota

a statement of the salesperson's sales goals, usually based on sales volume

Touch points

areas of a business where customers have contact with the company and from which data might be gathered

Step 7: Following Up

A salesperson's responsibilities do not end with making the sale and 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, and the buyers' employees are properly trained to use the products Most businesses depend on repeat sales, and repeat sales depend on thorough and ___________________________ by the salesperson.

Video about lacrosse equipment

About selling process Connections are important

Outside sales people are more common in...

B2B sales

Leverage Customer Information

Data mining can be used to identify the most profitable customers and prospects. Managers can then design tailored marketing strategies to best appeal to the identified segments, commonly referred to as leveraging customer information.

Defining Sales Goals and the Sales Process

Effective sales management begins with a determination of sales goals. Like any marketing objective, sales goals should be stated in clear, precise, and measurable terms and should always specify a time frame for their completion. ______________ - a statement of the salesperson's sales goals, usually based on sales volume

Compensating and Motivating the Sales Force

Good compensation planning will ensure that compensation attracts, motivates, and retains good salespeople. Firms sometimes take profit into account when developing their compensation plans. Instead of paying salespeople on overall volume, they pay according to the profitability achieved from selling each product. Other companies tie a part of the salesperson's total compensation to customer satisfaction. Sales managers often offer additional rewards or incentives.

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 and how the data can be used effectively for relationship enhancement. A large amount of information can be captured from one individual customer across several touch points, resulting in a high volume of data that can be hard to manage.

POINT-OF-SALE INTERACTIONS

Information collected through point-of-sale interactions is used for marketing and merchandising activities and to accurately identify the store's best customers and the types of products they buy. -Point-of-sale interactions - a touch point in stores or information kiosks that use software to enable customers to easily provide information about themselves without feeling violated Data collected at point-of-sale interactions are also used to increase customer satisfaction through the development of in-store services and customer recognition promotions.

With CRM, the customer defines the terms of the interaction, often by stating his or her preferences. The organization responds by designing products and services around customers' desired experiences.

Interaction - the point at which a customer and a company representative exchange information and develop learning relationships

Each unit of a business typically has its own way of recording what it learns, and perhaps, even has its own customer information system.

Knowledge management - the process by which customer information is centralized and shared in order to enhance the relationship between customers and the organization

Step 4: Developing and Proposing Solutions

Once the salesperson has gathered the appropriate information, he or she should determine whether the company's products or services meet the customer's needs and develop one or more solutions. Sales __________________ - a formal written document or professional presentation that outlines how the salesperson's product or service will meet or exceed the prospect's needs Sales presentation - a meeting in which the salesperson presents a sales proposal to a prospective buyer

After the sales recruit has been hired and given a brief orientation

initial training begins

Understand Interactions of the Current Customer Base

Only through effective interactions can organizations learn about the expectations of their customers, generate and manage knowledge about them, negotiate mutually satisfying commitments, and build long-term relationships. _____________________ - areas of a business where customers have contact with the company and from which data might be gathered Data gathered at these touch points, once interpreted, provide information that affects touch points inside the company (marketing, production, accounting, and sales).

The salesperson should determine how to maximize the fit between what he or she can offer and what the prospective customer wants by knowing everything there is to know about:

Products and services Customer needs Competitors The industry

Determining the Sales Force Structure

Proper design of the sales department helps the sales manager organize and delegate sales duties and provide direction for salespeople. Sales departments are most often organized by geographic regions, product lines, marketing functions performed (such as account development or account maintenance), markets, industries, individual clients, or accounts. ____________________________ structures are gaining in popularity because they allow personal selling reps to become experts in their fields, which enables them to offer better solutions and service.

Fast food burger

Sales promotion, coupon, etc

SOCIAL CRM

Social CRM takes the most successful aspects of traditional CRM, such as behavioral targeting, and expands them to include ways to engage customers through social media. To use social CRM effectively, companies must understand which sites customers use, whether they post opinions, and who the major influencers in the category are. They can then marry this information with behavioral data like purchases and purchase frequency.

Sales managers often look for certain traits in applicants:

Strong ego Risk taking Sense of urgency Quick thinking Competitive Creative Assertive Empathetic Sociable Relationship-oriented

Follow-up

The final step of the selling process, in which the salesperson ensures delivery schedules are met, goods or services perform as promised, and the buyers' employees are properly trained to use the products

CAMPAIGN MANAGEMENT

Through campaign management, all areas of the company participate in the development of programs targeted to customers. - Campaign management - developing product or service offerings customized for the appropriate customer segment and then pricing and communicating these offerings for the purpose of enhancing customer relationships Customizing product and service offerings requires managing multiple interactions with customers, as well as giving priority to the products and services that are viewed as most desirable.

WEB-BASED INTERACTIONS

Through web-based interactions, web users can evaluate and purchase products, make reservations, input preferential data, and provide customer feedback on services and products. Data from these web-based interactions are then captured, compiled, and used to segment customers, refine marketing efforts, develop new products, and deliver a degree of individual customization to improve customer relationships.

Step 2: Qualifying Leads

When a prospect shows genuine interest in learning more about a product and is prepared to answer questions and discuss budgets, the salesperson has the opportunity to follow up, or qualify, the lead. Lead qualification - determination of a sales prospect's (1) recognized need, (2) ______________________ , and (3) receptivity and accessibility Some organizations use prequalification systems or a registration process on their websites to free sales representatives from the time-consuming task of following up on leads.

Step 3: Approaching the Customer and Probing Needs

_____________________ - a process that describes the "homework" that must be done by a salesperson before he or she contacts a prospect In B2B sales, it involves learning as much as possible about the prospect's organization and its buyers and determining the best method for initiating contact. Experts on relationship selling suggest that salespeople should begin developing mutual trust with their prospect during the sales approach.

Buyers may experience increased levels of ___ if a salesperson is too aggressive in selling unneeded items.

cognitive dissonance

Most businesses depend on repeat sales, and repeat sales depend on thorough and ___________________________ by the salesperson.

continued follow-up

Companies that have CRM systems follow a _______________ focus or model.

customer-centric

Lead qualification

determination of a sales prospect's ... (1) recognized need (2) buying power (3) receptivity and accessibility

Lead generation (prospecting)

identification of the firms and people most likely to buy the seller's offerings

Women's shoes

iffy...little bit of both

Social selling is also useful for the ______________ stages of the selling process, such as asking customers to provide feedback and complete reviews using social media platforms.

later

B2B salespeople often travel to customer locations to make sales calls, and the sales process generally takes a _________ period of time.

longer

Cost per contact is __________________ than for mass forms of communication, leading companies to be highly selective about using salespeople.

much greater

Closing a sale often requires ___

negotiation

A ride-on law mower

personal selling

Laptop

personal selling

Ski equipment

personal selling

Effective negotiators avoid using...

price as a negotiation tool and are able to show the greater value in their products or services.

Efficiency comes from only selling to _____________ prospects

qualified

Fitness magazine

sales promotions, free subscriptions, free sales promotions

After entering a store, consumers often evaluate the products or services first-hand and then use mobile technology to compare products for a potential purchase across a number of competing channels and companies in a process called "______________________."

show-rooming

Sales messages can be ________________ to the motivations, interests, questions, and objections of each prospective customer.

tailored

Negotiation

the process during which both the salesperson and the prospect offer special concessions in an attempt to arrive at a sales agreement

Most direct face-to-face selling of consumer products take place at ___

the sales person's place of business.

What is the opposite method of show-rooming (online searching then buying in-store):

web-rooming

Step 6: Closing the Sale

• At the end of the presentation, the salesperson should ask the customer how they would like to proceed .• If the customer exhibits behavior or actions indicating they are ready to purchase, all questions have been answered, and objections have been met, the salesperson can try to close the sale. • A salesperson should be prepared for either a positive or a negative outcome. • Salespeople selling in foreign markets should tailor their presentations and closing styles to each market.

A CRM system has two key factors:

− Customers take center stage in any organization. − The business must manage the customer relationship across all points of customer contact throughout the entire organization.