31225026-Sales-Management

SALES MANAGEMENT :

SALES MANAGEMENT

Strategic Leverage of the Sales Force:

Customer focus Enhances customer loyalty Source of competitive advantage 2 Strategic Leverage of the Sales Force

Enhances Customer Focus:

Allows a targeted market segment approach one customer at a time customize sales calls and presentations by needs important source of market knowledge and customer needs assessment 3 Enhances Customer Focus

Develops Customer Loyalty:

Creates high switching costs salesperson (knowledge, expertise, relationship) creates product/service differentiation, particularly when competitors’ products deliver the same basic benefits Loyalty reduces the customers’ price sensitivity 4 Develops Customer Loyalty

Source of Competitive Advantage:

Creates a barrier to entry costs of creating a sales force market access Creates a medium-to-long term competitive advantage unlike advertising (medium-term) or pricing (short-term) 5 Source of Competitive Advantage

Sales Management Model:

Describing the Personal Selling Function Defining the Strategic Role of the Sales Function Developing the Sales Force Directing the Sales Force Determining Sales Force Effectiveness and Performance Sales Management Model

Sales Management: Importance:

Crucial Function in an Organization. Principle and generating function in an organization. Helps an organization achieve its goals Contributes to profit. Helps in attaining long term growth. Sales Management: Importance

Personal Selling – Defined:

Personal selling refers to personal communication with an audience through paid personnel of an organization or its agents in such a way that the audience perceives the communicator’s organization as being the source of the message. Personal Selling – Defined

Evolution of Personal Selling:

Evolution of Personal Selling Selling function became more structured Peddlers selling door to door . . . served as intermediaries Business organizations employed salespeople Selling function became more professional As we begin the 21 st century, selling continues to develop, becoming more professional and more relational

A Day in a Sales Manager’s Life An Expert’s Viewpoint::

A Day in a Sales Manager’s Life An Expert’s Viewpoint: Von Oliver is currently national sales manager for a division of Lockheed Martin Corp. Von’s typical day starts at 7:30 A.M. going through e-mail and prioritizing the days events. During the morning he will review reports, and spend time with his sales reps. He will have lunch with customers and spend the afternoon making sales calls with his sales reps. He spends late afternoon reconciling the days activities and setting his agenda for the next day. Action

A Day in a Sales Manager’s Life An Expert’s Viewpoint::

A Day in a Sales Manager’s Life An Expert’s Viewpoint: Von Oliver is involved in a variety of different activities. He spends much of his time interacting with individuals, especially salespeople and customers. But, he also plans strategies and continuously monitors performance. In other words, he performs all the major sales management functions. Result

PERSONAL SELLING PROCESS:

PERSONAL SELLING PROCESS PRETRANSACTIONAL PHASE (Prospecting, Qualifying, Precall Planning) TRANSACTIONAL PHASE (Approach, Needs Discovery, Presentation, Handling Objections, Closing) POSTTRANSACTIONAL PHASE (Service and Follow-up)

Stages in the personal selling process:

Stages in the personal selling process

PERSONAL SELLING PROCESS:

PERSONAL SELLING PROCESS Prospecting External Sources Direct Inquiries Referrals Directories Cold Canvassing Internal Sources Company records

PERSONAL SELLING PROCESS:

PERSONAL SELLING PROCESS Pre-approach Precall Planning What do I want to accomplish? What do I know about the prospect? Where can I find information? What am I going to say?

PERSONAL SELLING PROCESS:

PERSONAL SELLING PROCESS The Approach Securing Appointments Establishing Rapport “Why is the approach important?” It can help capture the buyer’s attention It can help to establish a harmonious atmosphere It serves as a good transition to the presentation It can help in need determination

PERSONAL SELLING PROCESS:

PERSONAL SELLING PROCESS The Approach Types of Approaches Introductory Approach Assessment Approach Product Approach Consumer Benefit Approach Referral Approach

PERSONAL SELLING PROCESS:

PERSONAL SELLING PROCESS Presentation Types Canned Organized Tailored

PERSONAL SELLING PROCESS:

PERSONAL SELLING PROCESS The Presentation Focus on Benefits, not just Features Keep it Simple Talk the Prospect’s Language Get the Prospect Emotionally Involved Seek Credibility

PERSONAL SELLING PROCESS Presentation <Cont.>:

PERSONAL SELLING PROCESS Presentation <Cont.> Overcoming Objections LSCPA Approach to Overcoming Objections: L isten to the buyer’s feelings S hare the concerns without judgment C larify the real issue with questions P roblem solve by presenting options/solutions A sk for action to determine commitment

PERSONAL SELLING PROCESS:

PERSONAL SELLING PROCESS Closing Alternative Choice Summary Close Service and Follow-up Entering Orders Installation of Product Training Handling Billing Problems

Classification of Personal Selling Approaches:

Classification of Personal Selling Approaches Stimulus Response Selling Mental States Selling Need Satisfaction Selling Problem Solving Selling

Stimulus Response Selling:

Stimulus Response Selling Salesperson Provides Stimuli Buyer Responses Sought Continue Process until Purchase Decision

Mental States Selling:

Mental States Selling Attention Interest Conviction Desire Action

Need Satisfaction Selling:

Need Satisfaction Selling Uncover and Confirm Buyer Needs Present Offering to Satisfy Buyer Needs Continue Selling until Purchase Decision

Problem Solving Selling:

Problem Solving Selling Define Problem Generate Alternative Solutions Continue Selling until Purchase Decision Evaluate Alternative Solutions

Consultative Selling:

Long-term Ally Consultative Selling The process of helping customers reach their strategic goals by using the products, service, and expertise of the selling organization. Strategic Orchestrator Business Consultant

Sales Teamwork Approaches:

Sales Teamwork Approaches Relatively permanent, customer-focused group Relatively temporary, transaction-focused group Membership determined by job assignment to a specific buying organization Membership determined by involvement in sales transaction One team per buying unit One selling center per sales opportunity Core Selling Team Selling Center

Sales Teamwork Approaches:

Sales Teamwork Approaches Core Selling Team Selling Center Membership relatively stable Membership very fluid Characteristics of team depend on characteristics of buying organization Characteristics of team depend on characteristics of sales opportunity Mission is strategic with respect to the buying organization Mission is tactical with respect to the sales opportunity

SMG Case Study: Solution Selling:

SMG Case Study: Solution Selling

The Challenge:

A global telecommunications leader prospect of losing market share amid stiff competition The client needed to improve its win/loss ratio to maintain and expand sales teams lacked key strategic skills to penetrate major accounts. The Challenge

SMG’s Solution :

a new approach to develop highly innovative and successful strategies SMG's sales consultants worked with the client to target specific accounts and customize the Strategic Selling program. Each two-day Strategic Selling session began by analyzing the target account's business needs, challenges, goals, objectives, and strategies, as well as the key players involved in the decision-making process. The group then divided into teams, where they assessed competitor's vulnerabilities and strengths, and began planning their attack. the teams developed successful response strategies to what-if scenarios as well as a detailed action plan to pursue the sale. SMG’s Solution

Results :

The Strategic Selling program was successful in identifying new strategies for the client's sales professionals During the Strategic Selling session, the client discovered that the automobile company was looking for a suitable business to co-sponsor its racing team. The client focused on trying to win a multi-year information technology contract from a large government agency. For this the company developed a new strategy: to bid as close to the requirements as possible without increasing cost The client lobbied that the procurement requirements artificially raised costs and was anti-competitive. Results

Thank You:

Thank You