Transcript CHAPTER 1

PART 1
Understanding the
Sales Environment
CHAPTER 1:
CHAPTER 2:
CHAPTER 3:
CHAPTER 4:
SELLING ASAP
THE CHANGING WORLD OF SALES
SELLING ETHICALLY
BUILDING CUSTOMER LIFETIME VALUE
CHAPTER 1
Selling ASAP
“I studied the lives of great men and famous
women, and I found that the men and women
who got to the top were those who did the
jobs they had in hand, with everything they
had of energy and enthusiasm and hard work.”
Harry S. Truman
Selling ASAP
Selling is being viewed today as an Art and a
Science, with an emphasis on practicing
Agility to enhance Performance
Art and Science
Selling involves the salesperson’s unique style
(art) of applying a systematic process (science)
to understanding customers’ needs and wants
and matching the benefits of the salesperson’s
product or service to those desires
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Agility
An agile salesperson is:
 One who is quick to see opportunities
 Clever in shortening sales cycles
 Able to meet customers’ needs faster
 Capable of creating flexible and customerfocused values
 Quick at learning and unlearning
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Performance
Salespeople must perform
Sales performance is measured in a
multitude of ways
Selling requires a continuous emphasis on
earning and maintaining long-term customer
satisfaction…not just making quota
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What is Professional Selling?
Professional selling is the interpersonal
communication process in which a seller
uncovers and satisfies the needs and wants of
a prospect to the mutual, long-term benefit of
both parties
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Non-manipulative Selling
Today’s skillful salespeople practice nonmanipulative selling
Only after salespeople and customers reach
mutual agreement about value does a sale
occur
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Building Relationships
Satisfied customers repeat their purchases
because they are satisfied with the value of
the relationship
 Taking care of existing customers reduces sales
cycle time and increases efficiency
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Thriving in a Highly
Competitive Selling Environment
Salespeople must do their homework before
meeting with prospects
 Study the market
 Study the prospects’ needs
 Put the customer first
 Engage in continuous learning and professional
development
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Understanding the Customer
To motivate the prospect to buy a product or
service salespeople must:
 Understand how their prospect’s mind works
 Be able to uncover the prospect’s hidden needs
or wants
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The Power of Influence
The power of influence rests in the skillful
salesperson’s ability to:
 Provide continuous value to customers
 Engage in long-term relationships with
customers
 Adapt to changing needs and preferences of
customers
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Apply What You Learn
Pay close attention to the way people interact
with each other
Go shopping
 Pay particular attention to the many ways
salespeople attempt to persuade you to buy
Talk to others and listen to their opinions
about selling
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Components of ASAP
Understanding the Sales Environment
Implementing the Sales Process
Mastering Sales Agility
Figure 1.1
Timely and Timeless Components of Selling ASAP
PART I
Understanding the Environment ASAP
The Changing World of Sales
Selling Ethically
Building Lifetime Value
PART II
Implementing the Sales Process ASAP
Understanding Why Buyers Buy
Preparation
Attention
Examination
Prescription
Conviction & Motivation
Completion & Partnering
PART III
Mastering Sales Agility ASAP
Selling to Major Accounts
Managing
Yourself & Your Time
Figure 1.2
Taking a Lifetime View of Customers
Product
Holdings
Product Use
Customer
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•
•
•
•
Contacts
Age
Gender
Buying Styles
Buying Team
Segment
Events
Adapted from: Puckey, David (2000), “Modeling Customer Relationships,” Sequent Computer Systems Ltd. Sequent House, Weybridge
Business Park, Addlestone Road, Weybridge, KT15, 2UF
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Thoughtware
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Thoughtware represents the thinking process
salespeople use as they continuously learn
about customers
Customers are often grouped by type of
relationship
 Advantages
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Avoidance of unneeded duplication of effort
Knowledge of loyalty patterns
Identification of cross-sell and up-sell opportunities
Identification of significant events in the life of the
customer
Figure 1.3
Where Selling Fits in the Organization
Manpower
Money
Materials
Personnel
Finance
Manufacturing
Marketing
Sales
All Organizations
Perform Selling Activities
“Nothing happens in the economy
until someone sells something to
someone else.”
Arthur H. “Red” Motley
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Steps of the Sales Process
Preparation
Attention
Examination
Prescription
Conviction & Motivation
Completion and Partnering
Figure 1.4
A Customer-Focused
Selling Framework
Customer
Behavior
Salesperson
Behavior
Collaboration
Initial
Inquiry
Preparation
Attention
•Promotion
•Web Site
•Personal Visits
Time to
Respond
Examination
Sales
Call
Decision?
Prescription
Conviction
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•
•
•
•
Promotion
Web Site
Engineering
Finance
Accounting
Thinking
Motivation
Re-Initiate
Completion
Partnering
•Service
•Salesperson
•Sales Organization
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Why Become a
Professional Salesperson?
Opportunity
Job Satisfaction
“Over 70% of new marketing graduates start
their careers in sales.” Almost 50% of finance
majors start in some type of sales career, and a
growing number of other business majors
(e.g., accounting, management, management
information systems) are moving towards
beginning their careers in sales.
Dan Weilbaker (2001)
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I3 Rationale
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Independence
Income
Impact
© 2000 Northwestern Mutual Financial Network
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Rewards of Selling
Intrinsic rewards
 Include the good feeling one gets from helping a
customer solve a problem
Extrinsic rewards
 Include pay and promotional opportunities
Annual Income of Salespeople
and Sales Managers
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Route to Management
Selling is an excellent route to management
Starting in sales can lead to many other
career advancements
Figure 1.6 - Frito Lay Career Track
President
Frito-Lay
National HQ Sales
Regional VP
Director of Sales
Human Resources
Finance
Operations
Zone Sales Leader
(4-8) per Area)
• 125 + employees
Zone Business Mgr.
• Financial & HR
responsibility
Category Mgr.
• Customer category strategies
• Data-base analysis
Category Analyst
Key Account Mgr.
(5-8 per Area)
• HQ Account Ownership
District Sales Leader
(8-10 per zone)
• People Leadership
- 15 salespersons
• Account
relationships
Sales Associate
President
Or here…
Vice President
of Marketing
Vice President
of Sales
Figure 1.7
Sales Opportunities
in Large Organizations
National
Sales Manager
Or you might
end up here…
Division
Sales Manager
Regional
Sales Manager
District
Sales Manager
Sales Representative
You may choose to stay
here…
Sales Trainee
When you enter the
workforce here…
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The Face of Selling
Today’s sales force is made up of people of both
genders and various ethnic origins
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Inside and Outside Sales
At a broad level, professional selling can be
divided into two types:
 Inside sales
• Telemarketing
• Retail sales
 Outside sales
• Prospecting—finding potential customers/clients
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B2B and B2C
Business-to-Business (B2B) Selling
 The salesperson represents a company and sells
to other companies
Business-to-Consumer (B2C) Selling
 The salesperson sells directly to the consumer
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Classifications
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Retail selling
Trade selling
Missionary selling
Technical selling
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Types of Selling:
A Traditional Look
Responsive selling
Creative selling
Needs-based selling
Consultative-partner selling
Problem-solution selling
Customer-centered selling
Value-based selling
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Success in Sales
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Successful salespeople possess the
following:
 Motivation to succeed
 Empathy
 Ego-drive
 Service motivation
 Conscientiousness
 Ego-strength
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Sales Productivity:
A Measure of Success
Sales productivity is the ratio of sales
revenues to what a salesperson inputs into
making those sales
How salespeople use their time is critical to
sales productivity success
The Essence of Selling ASAP
The right knowledge used the right
way to improve the salesperson’s
ability to do the right things for
customers more expeditiously
Figure 1.8
How Salespeople Spend Their Time
• Administrative tasks
• Meetings
• Travel time
• Face-to-face selling
• Phone/other selling
Selling
activities
41%
Non-selling
activities
44%
Service-related
activities
15%
Approximately 50% of time spent on account-specific sales
and service focuses on current account development
20 % = new accounts
30 % = account maintenance
Source: Adapted from information in the article: “Increase Your Sales without Adding Personnel” by Mike Rose, Director of Development, SalesLobby.com,
Sales Compensation Consultant, Online Magazine, The Alexander Group, Inc., July 2000. http://www.saleslobby.com/
OnlineMagazine/0700/salescomp_MRose.asp
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CRM
Customer Relationship Management
CRM is a strategy and process that utilizes
technology
 To identify, attract, and retain customers
 To leverage the sales organization’s relationships
with its customers
The agile salesperson uses CRM technology
to assist him in managing customer
interactions and transactions
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Technology:
Tools for the Salesperson
Central role
 Store and share information
 Communicate
 Collaborate
 Transact business
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The Customer-Focused Salesperson
Willing to learn
Manages what they learn
Realizes improved results
Achieves customer loyalty
Why CRM Is Important
To Salespeople
Business
Perspective
Finding/Obtaining/
Keeping Customers
Communication
Efficiency
Competition
Figure 1.9
The Customer-Driven Selling Model
Results
Customers
Drive Markets
Core Value
Increased Customer Loyalty
• Higher customer retention rates
• Lower customer defections
• Less need to find new customers
• Optimize the
salesperson/customer fit
Knowledge
Management
Core Value
• A commitment to on-going
learning
Customer Relationship
Management (CRM)
Core Value
• A way to obtain, store, analyze,
share and use knowledge
Improved Customer Lifetime Value
• Up-selling and cross-selling with existing
customers yields more sales
• Customer relationships become solidified as
value is improved
• Customers spend a larger share of their
purchase dollar with one sales organization
Improved Dialogue with Customers
• Fewer customer complaints
• Improved complaint resolution
• Increased referrals