Making the Sales Happening and Staying with It

Making the Sales Happening and Staying with It : 

armolla@energypac-bd.com Making the Sales Happening and Staying with It

Sales Responsibilities : 

armolla@energypac-bd.com Sales Responsibilities Knowing your own information Digging Out Customer Information/Customer Search Knowing the Market/Demand Knowing Competition Reaching Customer in the Right Time Making the Appropriate Presentation Offering the Right Product Following Up Clarification Negotiation Sales Contract Signing/Receipt Communicating the Contract with Appropriate Places Payment Receipt Following Up Delivery Following Up Installation and Commissioning Following Up Formal Handover Following Up After Market Care Maintaining Relationship and Contacts Look for the Next Opportunity

Quality of a Sales Person : 

armolla@energypac-bd.com Quality of a Sales Person Thorough Preparation Time Management Building Relationship and Trust Improve Verbal and Non-verbal Communication Skill Respect the Culture Never Give-up

Negotiation Skill of a Sales Person : 

armolla@energypac-bd.com Negotiation Skill of a Sales Person Determine Objective Plan the Negotiation Identify Factors Influencing the Negotiation Establish Customer’s Preferences Maintain Flexibility Elicit (extract) Information Test for Understanding and Agreement Provide for Review and Revision

Prospecting Method : 

armolla@energypac-bd.com Prospecting Method Category Prospecting Techniques 1. External Sources Referral approach: Ask each prospect for the name of another potential prospect. Community contact: Ask friends and acquaintances for the names of potential prospects. Introduction approach: Obtain introduction by one prospect to others via phone, letter, or in person. Contact Organizations: Seek sales leads from service clubs and chambers of commerce. Non-competing salespeople: Seek leads from non-competing salespeople. Cultivate visible accounts: Cultivate visible and influential accounts that will influence other buyers. 2. Internal Sources Examine Records: Examine company records, directories, telephone books, membership lists, and other written documents. Inquiries to advertising: Respond to customer inquiries generated from company advertising. Phone/mail inquiries: Respond to phone or mail inquiries from potential prospects. 3. Personal Contact Personal observation: Look and listen for evidence of good prospects. Cold canvassing: Make cold calls on potential prospects (phone or in person). 4. Miscellaneous Hold/attend trade shows: Organize or participate in a trade show directed towards potential prospects. Bird Dogs: Have junior salespeople locate prospects that senior salespersons will contact. Sales seminar: Prospects attend as a group to learn about a topic in which the salesperson’s product is involved.

Techniques for Closing the Sales : 

armolla@energypac-bd.com Techniques for Closing the Sales Closing Techniques Action Taken by the Salesperson 1. Direct Close Simply ask for the order. Appropriate in most situations. Often combined with other closing techniques. 2. Summary Close Summarize key points to facilitate a purchase decision. Recommended if sales presentation is complex, or if negotiations have extended over a long time period 3. Contingency Close Isolate the last remaining obstacle to the sale, and make the sale contingent upon removing the obstacle. 4. Assumptive Close Assume the sale has been made, and present the order form for the prospect’s approval. Use when resistance has been weak or nonexistent 5. Choice Close Ask the prospect which version of the product is preferred. Use when the prospect seems interested but is confused or indecisive about which alternative to choose.

Selected Methods for Handling Objections : 

armolla@energypac-bd.com Selected Methods for Handling Objections Method Action Taken by the Salesperson 1. Forestalling Mention the anticipated objection before the prospect does, i.e. take the offensive to address the objection. Use early in the presentation to diffuse commonly encountered objections. 2. Translations Convert the prospect’s reason for not buying into a reason for buying. Use when the basis for the objection cannot be modified (e.g. “this is the very reason you should buy”). 3. Denial In a diplomatic manner, dispute the prospect’s objection. Use when the prospect is incorrect on an important point. 4. Compensation Recognize the validity of the prospect’s objection, then point out other advantages that offset the objection. Use to counteract weaknesses in the salesperson’s offering 5. Question Ask the prospect why he or she objects. Use to clarify an objection and to encourage the prospect to reconsider.

Culture and Sales : 

armolla@energypac-bd.com Culture and Sales 1 1. Communication: Verbal and Non-verbal 2. Religion 3. Education 4. Aesthetics 5. Social Organisations 6. Technology 7. Time 8. Values and Norms The Components of Culture Culture

Understanding Cultures : 

armolla@energypac-bd.com Understanding Cultures Attitudes to Authority Attitudes to Others Attitudes to Managing Yourself Attitudes to Time Attitudes towards Nature The Impact of Culture on Management

Sales Management : 

armolla@energypac-bd.com Sales Management Geographical and Physical Dimensions Level of Market Development Country-level Legislations Local Market Conditions Human Relations Challenge: Standardization or Adaptation ?

Developing Forecasts… : 

armolla@energypac-bd.com Developing Forecasts… Economic Factors Climate and Geography Social and Cultural Factors The Competition Structure of the Competition Prices Factors Affecting Demand

Developing Forecasts… : 

armolla@energypac-bd.com Developing Forecasts… Economic Factors Climate and Geography Social and Cultural Factors The Competition Structure of the Competition Prices Environmental Analysis Opportunity Matrix (Attractiveness [low/high] and success probability [low/high]) Threat Matrix (Seriousness [low/high] and probability of occurrence [low/high]} Environmental Appraisal

Developing Forecasts… : 

armolla@energypac-bd.com Developing Forecasts… Market Potential (highest possible expected industry sales of a good or service for a given time period) Market Forecast (estimate of an industry’s sales for a specified time period) Sales Potential (highest possible expected company sales for a given time period) Sales Forecast (estimate of a company’s sales for a specified period of time)

Type of Forecasts : 

armolla@energypac-bd.com Type of Forecasts Best Possible Results Industry Level FirmLevel Four different types of forecasts are typically important to sales managers, depending upon whether a forecast is needed for the industry or the firm, and whether the best possible or expected results are to be forecast. Expected Results for Given Strategy

…Developing Forecasts : 

armolla@energypac-bd.com …Developing Forecasts Sales Quotas (sales goals sought by sales management) Sales Budget (expenditure plans used to accomplish sales goals) Productivity (sales productivity is the ratio of output [sales revenues] to input [selling expenses])

Sales Force Deployment : 

armolla@energypac-bd.com Sales Force Deployment Analytical Considerations (Sales, Costs) People Considerations (Salesperson-customer relationships, Company-salesperson relationships) Deployment Decisions

Key Sales Force Deployment Decisions : 

armolla@energypac-bd.com Key Sales Force Deployment Decisions How much selling effort is needed to cover accounts and prospects adequately so that sales and profit objectives will be achieved? How many salespeople are required to provide the desired amount of effort? How should territories be designed and salespeople assigned to territories to ensure proper coverage of accounts and to provide each salesperson with a reasonable opportunity for success?

Sales Force Size : 

armolla@energypac-bd.com Sales Force Size Analytical Approaches BREAKDOWN APPROACH: SALESFORCE = FORECASTED SALES SIZE AVERAGE SALES/SALESPERSON WORKLOAD APPROACH: SALESFORCE = TOTAL SELLING EFFORT NEEDED SIZE AVERAGE SELLING EFFORT/SALESPERSON INCREMENTAL APPROACH: SALESFORCE = NUMBER OF SALESPEOPLE WHERE SIZE MARGINAL PROFIT FROM ADDING A SALESPERSON EQUALS THE MARGINAL COST OF ADDING THAT SALESPERSON

Managing Sales Efforts : 

armolla@energypac-bd.com Managing Sales Efforts Recruitment Planning for recruitment Job analysis Job qualifications Job description Set objectives Locating prospective candidates Selection Evaluation and hiring Screening applications Interview (initial and intensive) Assessment Centres Background investigation Physical exam Selection decision (job offer)

Problems Caused by Poor Recruitment and Selection : 

armolla@energypac-bd.com Problems Caused by Poor Recruitment and Selection PROBLEMS FROM POOR RECRUITMENT AND SELECTION Inadequate sales coverage and lack of customer follow-up Increased training costs to overcome deficiencies More supervisory problems Higher turnover rates Difficulty in establishing enduring relationships with customers Total sales force performance is sub-optimal

Managing Sales Effort : 

armolla@energypac-bd.com Managing Sales Effort Assess sales training needs Set sales training objectives Evaluate training alternatives Design sales training program Perform sales training Follow up and evaluate training program Sales Training process

Job Satisfaction in Sales Profession : 

armolla@energypac-bd.com Job Satisfaction in Sales Profession Job Satisfaction Performance and Motivation Turnover and Absenteeism

Evaluating and Controlling Performance : 

armolla@energypac-bd.com Evaluating and Controlling Performance Evaluating sales organizations effectiveness Sales Analysis (Evaluation of sales generated through the sales efforts). Cost Analysis (Evaluation of costs incurred in generating sales through the sales efforts). Profitability Analysis (Evaluation of sales/cost relationship of the sales effort). Productivity Analysis (Evaluation of output/input relationships of the sales effort).

Evaluation of Sales Performance : 

armolla@energypac-bd.com Evaluation of Sales Performance Behavioral Criteria Base Percent Using Calls Calls per period 57 Number of calls per number of customers (by product class) 17 Ancillary Activities Number of required reports turned in 44 Number of customer complaints 31 Training meetings conducted 28 Number of letters/phone calls to prospects 25 Number of demonstrations conducted 25 Number of service calls made 24 Number of dealer meetings held 15 Advertising displays set up 12

Relationship Marketing : 

armolla@energypac-bd.com Relationship Marketing Relationship marketing is a tactful, sincere communication that nurtures a close connection between BUYER and SELLER.

Sales Management : 

armolla@energypac-bd.com Sales Management Win-win Win-lose Building Partnerships Marketing to Customers Formal Negotiations Win-Win Win-Lose

Sales Management : 

armolla@energypac-bd.com Sales Management Using the win-win method of negotiation 1. Identify a complaint that you have had as seller/buyer. 2. Invite someone to role-play the other party in negotiating a win-win solution.a) Describe the problem, including both persons’ unmet needs.b) Identify criteria the solutions must meet.c) Brainstorm at least three solutions.d) Evaluate these alternative solutions.e) Decide on the best solution.

Sales Management : 

armolla@energypac-bd.com Sales Management What can be Negotiated: Inventory levels that must maintain;Inventory levels that must be kept on hand to be able to restock the Buyer quickly;Details about the design of the product or service,How the product will be delivered;Delivery terms and conditions;Price and pricing policy for distributors;Service levels and after sales support;Credit terms;How conflict will be resolved;Type and frequency of communication between the parties; andPerformance requirements.

Sales Management : 

armolla@energypac-bd.com Sales Management Tactics that affect the Relationship Bad Tactics Make only call backsMake justificationsUse correspondenceWait for misunderstandingsWait for customers’ requestsUse “owe us” legal languageRespond only to problemsHide personality problemsTalking about making good in the pastUse emergency-type responsivenessShift blameRehash the past

Sales Management : 

armolla@energypac-bd.com Sales Management Tactics that affect the Relationship Good Tactics Initiate positive telephone callsMake recommendationsUse candid languageShow appreciationMake service suggestionsUse “we” problem solving languageGet to problemsAir personality problemsTalk of our future togetherUse routine responsesAccepts responsibilityPlan the future

Organizational Buying Behavior : 

armolla@energypac-bd.com Organizational Buying Behavior Group forces: The Buying Centre USERS: Personnel who will be using the product. GATEKEEPERS: People who control the information to be reviewed by other members of the buying centre. INFLUENCERS: People who influence the buying decision by supplying information for the evaluation or alternatives or by setting buying specifications. DECIDERS: People who actually make the buying decision, whether or not they have the formal authority to do so. BUYER: This person has formal authority to implement all procedures connected with securing the product.

Are You a Good Negotiator ? … : 

armolla@energypac-bd.com Are You a Good Negotiator ? … Place a check by each item that accurately reflects your personality and traits on an average, normal day. 1. Helpful 14. Tactful (diplomatic) 2. Risk taker 15. Perfectionist 3. Inconsistent 16. Stubborn (immovable) 4. Persistent (remaining) 17. Flexible 5. Factual (realistic) 18. Competitive 6. Use high pressure 19. Gambler (game player) 7. Self-confident 20. Receptive (willing to accept) 8. Practical 21. Easily influenced 9. Manipulative (devious) 22. Planner 10. Analytical 24. Stingy (ungenerous) 11. Arrogant (disregard for others) 25. Listener 12. Impatient 26. Controlled 13. Seek new approaches 27. Thinks under pressure

… Are You a Good Negotiator ? : 

armolla@energypac-bd.com … Are You a Good Negotiator ? 28. Passive (reactive) 33. Tolerate ambiguity (uncertainty) 29. Economical 34. Have strong need to be liked 30. Gullible (easy to fool) 35. Organized 31. Afraid of conflict 36. Honest 32. Endurance (patience) 37. Belligerent (quarrelsome) How to score the checklist: This is a secret to be revealed after you have completed this exercise. Remember: Cultural difference do exist

How to Score the Checklist: : 

armolla@energypac-bd.com How to Score the Checklist: All of the traits listed are positive except for the following negative traits:3, 6, 11, 12, 15, 16, 19, 21, 24, 28, 30, 31, 34 and 37. To arrive at a total score, give yourself one point for all positive traits and subtract one point for all negative traits. To interpret your total score: 19-22 Excellent 15-18 Good 11-14 Fair Remember: Cultural differences do exist

Slide 35: 

armolla@energypac-bd.com Thank You for Your Participation