Chapter 5 Global Selling Process, II

1. Chapter 5Global Selling Process, II Sales Management: A Global Perspective Earl D. Honeycutt John B. Ford Antonis Simintiras

2. Introduction • This chapter builds upon Chapter 4: • Interpersonal communication process • Sales negotiation process • Initial steps of the global selling process • Interpersonal communication and sales negotiation processes interwoven into the global selling process

3. Sales Process • Finding customers • Preparing • Relationship building • Product offering • Offer clarification • Securing the purchase • Maintaining the relationship

4. Relationship Building • Making a favorable impression and gaining trust of potential customer • Time required varies by culture • Number of ways to meet client: • Guaranteed introduction • Referral introduction • Personal introduction • Benefit introduction

5. Relationship Building • Should know appropriate greeting and phrases in customer’s language • Business cards in English and customer’s language • Business cards have taken the place of personal introductions in Japan

6. What is a Buying Center? • One or more people in the B2B customer firm that play different, but important, roles in the buying process. They include: • Initiators • Users • Influencers • Buyer • Gatekeeper • Salesperson must identify and interact correctly with each group of clients playing specific roles

7. Product Offering • Salesperson must select an appropriate method to offer the product to the client • This step normally includes one or more of the following styles: • Stimulus response • Mental States • Need satisfaction • Problem solving • Consultative selling

8. Stimulus Response • Salesperson provides appropriate stimulus through words and actions that will derive desired response • Utilized with canned sales presentations • Seen with low involvement products • Purchaser involvement limited • Often not flexible • Used for one-time interactions

9. Mental States • Salesperson attempts to move customer through the purchase stages (attention, interest, desire, action) • Presentation must be well-planned • Limited purchaser involvement • Hard to know what stage customer is in • Difficult when used across cultures • Not well received by professional purchasers

10. Selling Approaches • Need satisfaction – meets and asks questions in an effort to identify and satisfy a customer need • Focuses on customer’s need(s) • Problem solving – extension of Need Satisfaction that includes study or team of experts • Consultative selling – salesperson functions as a consultant and may even recommend a competitor’s product that best satisfies customer need(s)

11. Buyer-Seller Meeting • Meet with customer at appointed time • Punctuality more important in some cultures • Make favorable impression • Sharing information through small talk • Presenting gifts • Begin meeting by restating last communication as understood • Insure customer’s goals understood • No slick presentations • Explain how the solution solves goals and needs

12. Offer Clarification • Once presentation finished, expect questions • Clarify offer or ask for price concessions • Remember that negotiations take place during the entire process • May request test data or testimonials from satisfied customer • View this step as normal negotiations

13. Securing the Purchase • Simply asking the customer to purchase • Difficult to manipulate buyer into purchase • This is especially true in B2B interactions • Best approach is the direct one • Since our product addresses your need(s), shall we agree to the purchase? • Some countries, like China, seller may await the buyer to raise issue of purchase

14. Maintaining the Relationship • Final, but very important step in sales process • Satisfied customers purchase again and again • Customer wants supplier they can trust and who will be there when problems arise • Customer satisfaction very important in Japan • B2B firms track customer satisfaction levels • Salesperson must have authority to keep customer satisfied

15. Ethical Considerations • Personal selling generates buyer complaints • Salespersons believed to have low ethical standards • Some firms operate from a selling orientation • Most complaints attributable to management • Setting unrealistic sales goals/quotas • Rewarding for sale even when questionable behavior is involved

16. Role of Salesperson • That of a boundary spanner • Must bring buyer and seller together • Initial positions often far apart • Seller wants: highest price, standard product, longest delivery, and no service • Buyer wants: lowest price, custom product, shortest delivery, and service contract • Salesperson must mediate

17. Role Conflict • Salesperson experiences role conflict when two or more parties want her to comply with their expectations • Each party can reward or punish salesperson • Sales manager can give or withhold raise • Customer can order or withhold purchase • Family can give or withhold love, approval • Salesperson must attempt to satisfy concerns of all parties – not an easy task!

18. Chapter 5 Summary • The sales process is completed • Approach must be modified based upon culture of buyer • No “tricks” to selling; just hard work! • Salesperson may be viewed as being less than ethical because of role played • Role conflict can occur in B2B sales • Ethical behavior always the best approach

19. Discussion Questions • What is the benefit of the global salesperson making informal sales presentations? • What kinds of questions might the prospective buyer have for the global salesperson after the presentation? • What is role conflict and how might it affect the global selling process?