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Personal Selling - Definition. Use of personal selling depends partially on the nature of productUse personal selling when products areNew and differentCustomizableTechnically complexExpensive and require negotiationInstallable. Sales Process. Two basic factorsThe objectives the salesperson
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2. Personal Selling, Relationship Building, and Sales Management
3. Personal Selling - Definition Use of personal selling depends partially on the nature of product
Use personal selling when products are
New and different
Customizable
Technically complex
Expensive and require negotiation
Installable
4. Sales Process Two basic factors
The objectives the salesperson is trying to achieve while engaged in selling activities
The sequence of stages or steps the salesperson should follow to achieve the objectives
5. Sales force Objectives Information provision – especially in the case of new products
Persuasion – distinguishing attributes, creating repeat customers, maximizing sales as a percent of presentations, etc.
After-sale service – delivery, installation, resolve concerns
Assure customer satisfaction
Maximize benefits and margin
6. Building Relationships with Sales
7. Sales Force Objectives
8. Prospecting – Locating Potential Customers Lead – a candidate to whom a sale can be made – target of prospecting process
Random lead generation – mass appeals that require a high number of contacts to generate qualified leads
Selected-lead searching – uses existing contact to generate new ones – often called referrals
9. Prospecting – A Screening Process Does the lead have a want or need that can be satisfied by the purchase of the firm’s products or services?
Does the lead have ability to pay?
Does the lead have authority to pay?
Can the lead be approached favorably?
Is the lead eligible to buy?
10. Common Sources Of Sales Leads Satisfied customers
Endless chain
Center of influence
Promotional activities
List and directories
Canvassing
Spotters
Telemarketing
Sales letters
Other sources
11. Planning the Sales Call Research and know your prospect
Know your product and product line thoroughly
Know your competitor’s products and product line
Know the market for your product(s) and the needs they satisfy
Schedule time with the prospect
12. Presenting Be well prepared and set a goal for your presentation
Develop a checklist of items for discussion
Schedule an appointment
Put your contacts at ease
Strive to make a good impression
Adapt your style to the prospect
Work toward your goal
Schedule follow-up to achieve a sale
13. Overcoming Objections Expect objections to occur at any time
During efforts to secure appointments
During the presentation
During attempts to obtain a commitment
During the after-sale follow-up
In response to an objection, a sales person should not challenge the customer
Make the necessary presentation in order to help the client make an intelligent decision
14. Obtaining Commitment Moving toward commitment begins with a scheduled presentation
Know why a purchase will benefit your prospect
Ask for commitment (the order)– some trainers say, “Ask early and often”
An experienced salesperson knows when and how to ask for commitment
Follow-up with a clear, mutually acceptable action plan
Be persistent
15. Long-term Relationships Establish and maintain a prospect and customer database
Monitor orders to deliver on-time, on-budget
Ensure appropriate use of your product
Provide customers ongoing guidance and support
Analyze customer feedback and respond to anticipate needs and problems
Assure customer satisfaction through attention and response
16. Cross-Functional Teams Improved sales productivity
More flexible and quicker decisions
Better decisions
Increased customer satisfaction
17. Relationships Lead To Partnerships Functional Relationships: A relationship where the buyer and the sales person start relying on each other and communicate honestly
Strategic partnerships/alliances: Long term relationships where both the parties make significant commitments and investments in each other in order to pursue mutual goals and improved profits
18. Sales Specialists Missionary salespeople – focus on detailing existing products and introducing new ones. (e.g.: pharmaceuticals)
Technical sales specialists – support the field sales staff by providing technical assistance and client counsel, when appropriate
Cross-functional sales team – blend the talents and knowledge of functional areas to better meet client needs
19. Supporting Selling Efficient and effective sales tools, continuous training, and adequate advertising support
Efficient follow-up, delivery and reorder systems
Equitable compensation to reward performance
Adequate supervision and evaluation of performance for continual improvement
20. Organizing The Sales Force
21. Organizing The Sales Force
22. Supporting Selling
23. Sales Force Control Forecasting sales accurately
Establishing territories and quotas that benefit the firm and the sales person mutually
Analyzing expenses and realigning to improve sales results
Motivating individual sales persons
Compensating performance for satisfaction and improvement
24. Sales Force Control Used to establish quotas
Used to plan the personal selling efforts and other types of promotional activities
Used to budget expenses
Used to plan and coordinate production, logistics, inventories, personnel and so forth
25. Forecasting Methods Jury of executive method – combines and averages view of top management from various departments
Sales force composite –the sales force becomes the jury
Customer expectations – asking customer how much they expect to purchase and by what date
Time-series analysis – using past data to forecast future sales
Correlation analysis – analyzing dependent and independent variables driving sales volume
Other quantitative functions – growth functions and simulation models
26. Sales Territories And Quotas Provide incentives for salespeople
Provide a quantitative standard for performance measurement
Evaluate and control the efforts of the sales force
Assist individuals with personal goal setting
27. Sales Force Technology Selected technology can improve performance
These elements top the list
Cell phones - 89%
E-Mail – 85%
Presentation Software – 85%
Desktop PCs – 68%
Notebook Computers – 63%
Contact Management Software – 55%
28. Sales Force Technology – Tangible Benefits Better business results
Increased time spent with customers / clients
Increased customer satisfaction
Increased number of promising projects
Consistent and prompt follow up correspondence
Increased revenue per salesperson
Improved customer service
Better time management
Improved internal communication
29. Sales Force Technology – Intangible Benefits Improved employee motivation and satisfaction
Better trained personnel
Most recent and pertinent information with easier access
Increased customer service
Improved control and understanding of selling expense
30. Performance Evaluation:Effort-Oriented Measures Number of sales call made
Number of MRO calls made
Number of complaints handled
Number of checks on resellers stocks
Uncontrollable lost job time
Number of inquiries followed up
Number of demonstrations completed
31. Performance Evaluation:Results Oriented Measures Sales volume
Sales volume as a percentage of quota
Sales profitability
Number of new accounts
Number of stock outs
Number of distributors participating in programs
Number of lost accounts
Number of customer complaints
Distributor sales-inventory ratios
32. Performance Incentives Positive feedback
Company praise
Bonus
Salary increase
Pay for performance for specific new ideas
Paid educational allowance
Earned time off
Stock options
Fringe benefits
Vested Retirement Plan
Profit Sharing
33. Performance Outcomes Sell a greater dollar volume
Increase sales of more profitable products
Push new products
Push selected items at designated seasons
Higher degree of market penetration
Increase the number of calls made
34. Performance Outcomes Secure large average orders
Secure new customers
Service and maintain existing business
Reduce turnover of customers
Achieve full-line (balanced) selling
Reduce direct-selling costs
Submit reports and other data promptly