SEGMENT 13: PERSONAL SELLING AND SALES MANAGEMENT



SEGMENT 13: PERSONAL SELLING AND SALES MANAGEMENT

(Related chapter in text: 20)

LEARNING OBJECTIVES

1. Understand the different types of sales positions common in industry

2. Delineate the stages in the personal selling process

3. Distinguish “canned” sales presentations from the need-satisfaction approach

4. Understand how the multiattribute model is useful in personal selling

5. Understand the basic concepts of salesforce management

6. Be able to use the workload method to determine size of salesforce

COMMON SALES POSITIONS

Retail Sales(store) 4.1 Million

Mfr. Sales Reps(manu ) 1.8 Million

Insurance Sales 378 Thousand

Financial Sales 367 Thousand

Real Estate Sales 339 Thousand

Sales Engineers 85 Thousand

THE SELLING PROCESS –the backbone

1. PROSPECTING- prosceptive consumers

2. PREAPPROACH

3. APPROACH

4. PRESENTATION

5. CLOSE

6. FOLLOW-UP

PROSPECTING

--Finding Leads

--Qualifying Prospects

Establish need/want

Ascertain ability to purchase

Determine purchase authority

Verify eligibility

PREAPPROACH-before you approach them

-Gathering Information

-Setting Sales Call Goals

-Preparing Presentation

-PRACTICE, PRACTICE, PRACTICE!

APPROACH-entering into sales interaction

-Making a good first impression

-Building rapport

-Asking questions

-Listening!

-Discovering needs

TIME SPENT BY “ADAPTIVE”SALESPERSON IN SALES CALLS...

100%

TALKING

LISTENING

TIME

PRESENTATION- what format are we going to use

(Determine format to be used)

-Deliver content

-Use of visual aids (laptop)

-Product demonstrations

-Handling objections

SALES PRESENTATION FORMATS

--"CANNED" (FORMULA)- lowest level,

--OUTLINED PRESENTATION- a head of time head line, deviate as neccassary, drive from outline, empathy

--ADAPTIVE SELLING

(MARKETING ORIENTATION)

"CANNED" FORMAT-memorize a script

7. INGRATIATION-false flattery,

8. FOOT-IN-THE-DOOR-make a small request first (glass of water) probability to 2nd request, is greater after 1st request.

9. DOOR-IN-THE-FACE-

10. slam face in door say no, ask first for large number, then ask for smaller number

ADAPTIVE SELLING FORMAT

1. DETERMINE CUSTOMER NEEDS & PERCEPTIONS-ask questions to see where consumer is coming from before making strategy..there needs

2. DEVISE STRATEGY TO SATISFY CUSTOMER NEEDS

3. Deliver content sales presentation, use of visual aids, product demonstrations, handling objections-the kids of things a consumer might make to what your saying (price, comparison)

MULTIATTRIBUTE MODEL APPROACH

| | | |

|ATTRIBUTE |RATING |IMPORTANCE |

| | | | | |

| |ACTUAL |SALESMAN |ACTUAL |SALESMAN |

| |CUSTOMER |ESTIMATE |CUSTOMER |ESTIMATE |

| | | | | |

|RELIABILITY |8 |8 |9 |8 |

| | | | | |

|FLEXIBILITY |6 |9 |8 |6 |

| | | | | |

|SERVICE |4 |7 |7 |5 |

| | | | | |

|ECONOMY |5 |3 |5 |9 |

CLOSE

-Summarize benefits

-Ask for the sale

-Confirm the sale

-Show appreciation

Relationship selling

1. listens

2. express genuine concern

3. keep promises

4. use knowledge to meet consumer needs

FOLLOW-UP

-Ensure on-time delivery

-Ensure customer satisfaction

-Pursue add-on sales

-Build/sustain relationship

HOW TO SELL

11. KNOW YOUR PRODUCT

12. BELIEVE IN IT

13. KNOW YOUR CUSTOMER

14. BELIEVE IN YOURSELF

15. SELL YOURSELF

16. SELL 1/4 INCH HOLES!

SALESFORCE MANAGEMENT

1. SALES PLAN FORMULATION

- SALES OBJECTIVE

- MAKE OR BUY? Make own salesforce, or buy one? Manu reps

- ORGANIZATION- how do we organize

17. REGIONAL- ne, sw, regional managers, etc

18. PRODUCT LINE- differences in product ( Mainframes vs. scientific computers)

19. TYPE OF ACCOUNT- different sales force for different accounts

- SIZE OF SALESFORCE

WORKLOAD METHOD

NS = NC X CF X CL / AST

NS = NUMBER OF SALESPEOPLE

NC = NUMBER OF CUSTOMERS

CF = CALL FREQUENCY (# PER YEAR)

CL = AVERAGE LENGTH OF SALES CALL

AST = AVERAGE AMOUNT OF SALESPERSON SELLING TIME AVAILABLE ANNUALLY

EXAMPLE

NC = 35,000

CF = 26

CL = .50 HOURS

AST = 1400 HOURS

NS = 35,000 X 26 X .50 / 1400

NS = 325

2. SALES PLAN IMPLEMENTATION

- RECRUITING- right people

- TRAINING

- MOTIVATING-recongition

- COMPENSATING-how we go about paying them

- EVALUATING-how well they are doing. Reflect goals and objectives

-

COMMON SALESPERSON EVALUATION MEASURES

1. Conversion Rate

# Sales / # Calls

2. Meeting Quota

$ Actual Sales / $ Sales Goals

SALESFORCE COMPENSATION

20. SALARY

21. STRAIGHT COMMISSION-lower level, insurance, telemarketing, not used by organization who care with relationship

22. COMBINATION

- SALARY PLUS COMMISSION

- SALARY PLUS BONUS-most common, bonus is tied to team goals, etc. profitability.

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