Sales Management

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

• Facilitator – Anoop R Ohri (PGDM IIM Lucknow)

• Course – Sales Management

• External Evaluation (Term Exams) – 70

• Internal Evaluation – 30
Quiz
Case Analysis

• Objective – Industry Perspective

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

 Before We Even Begin. . . . .
• What is Marketing? Of course you all know……

• The concept of value

• All of you know the 4 Ps

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

• What is Sales Management?

• What do think about a career in Sales?

• Why?

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

• It’s the only job where you deal with the customer…
you have to satisfy him in order to do your job. Only
revenue earning profile in company

• Only source of real customer feedback

• However, Sales is getting tougher..higher

competition, awareness, expectations and lower
customer loyalty

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

 Introduction

• The salesperson is the front line for many

companies.
• Source of competitive advantage
• Creates high switching costs
• Loyalty reduces customer price sensitivity
• The success or failure of the company rests largely
on the ability of its sales force.
• Issues such as recruiting, training, supervising,
and evaluating sales force are an integral part of
sales management.

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

Sales Management in the 21st Century

• Building long-term relationships with customers

• Creating more nimble and adaptable sales
organizational structures
• Removing functional barriers within the
organization to create greater job ownership and
commitment from salespeople

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

 Sales Management in the 21st Century

• Shifting sales management style from

commanding to coaching
• Leveraging available technology for sales success
• Integrating salesperson performance evaluation to
incorporate all activities and outcomes
• Automation

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

 What Customers Expect

• Responsiveness to needs, problems; provides service.

• Knowledge of products and customer applications.

• Customer advocacy; partnership development.

• Ability to keep customer up-to-date.

• Quality product/service.

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

 What Customers Expect

• Offer of technical support.

• Offer of local or easily accessible representation.

• Ability to provide a total solution.

• Understanding of customer’s business.

• Competitive price.

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

 How Sellers are Responding
• Establishing a customer-driven culture.
• Market segmentation.
• Market adaptability.
• Information technology.
• Customer feedback and measuring customer
satisfaction.
• Sales, service, and technical support systems.
• Recruiting and selecting salespeople.
• Training and development.

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

 Attractiveness of Sales Careers

• Autonomy and opportunities for personal

initiatives
• A variety of challenging activities
• Financial rewards
• Favorable working conditions
• Excellent opportunities for development and
advancement

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

Source: Christine Galea, “2002 Salary Survey,” Sales & Marketing Management, May 2005, pp. 32–36. ©
2005 VNU Business Media. Used with permission.

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

Possible Career Tracks

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

 Selling Success Factors
• Listening skills
• Follow-up skills
• Ability to adapt sales style to situation
• Tenacity
• Well organized
• Verbal communication skills
• Able to interact with people at all levels of an organization
• Ability to overcome objections
• Closing skills
• Personal planning and time management skills

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

 Selling Activities

Servicing
Working Servicing Managing
Selling the account
with others the product information

Attending Training
conferences and Entertaining
Traveling Distribution
and recruiting
meetings

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

 Matrix of New Selling
Communication Activities
Sales Relationship Team Database
Technology

Email Set up appts Web page Conference calls Collect new

Dictaphone Script sales pitch from information
Internet database Enter information on
Use software for laptop
Laptop (CD)
Voicemail customer background Update customer
Laptop for presentation files
Cell Phone
VCR for presentation
Pager
Provide tech ability to
Web page
customers
Newsletters
Audiovideo conference
Provide tech info
Overnight services
Maintain virtual office
Nontechnology

Practice language skills Adaptive selling Bring in Mentor

Conduct research at vendor/alliance Make sale and turn
customers’ site Develop relationship over to someone
Avoid potential litigation Hand-hold customer else
Plan for multiple calls to Write thank-yous Coordinate with
close deal sales support
Purchase dealers
Sell value-added Call on CEOs
services Build rapport w/
Respond to referrals buying center
Write thank-yous Network
Target key accounts Build trust
Pick up sales supplies Train brokers
Consultative sales
Listen
Ask questions
Read body language
Sell unique © 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson
 B2C versus B2B Selling
• Most salespeople are involved in retail selling – selling
goods and services to ultimate consumers (B2C)
• A much larger volume of sales is accounted for by
industrial selling, recently referred to as business-to-
business selling (B2B):
– Sales to resellers
– Sales to business users
– Sales to institutions

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

 Participants in the Buying Process

• Initiators – perceive a problem or opportunity requiring a

new product of service
• Users –must use or work with the product or service
• Influencers –provide information for evaluating
alternative products or suppliers
• Gatekeepers – control the flow of information to others
• Buyers – actually contact the selling organization and
place the order
• Deciders – final authority to purchase
• Controllers – determine the budget

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

 Types of B2B Jobs
• Trade selling – increase business by providing customers
with merchandising and promotional assistance
• Missionary selling – persuade customers to buy products
from distributors or other wholesale suppliers
• Technical selling – increase business from by offering
current customers technical/engineering assistance
• New business selling – identify and obtain business from
new customers

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

 Key Themes

• Innovation – thinking outside the box

• Technology – broad spectrum of tools
available to salespersons
• Leadership – capability to make things happen
• Globalization
• Ethics

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

 Innovation

• Classical selling involved . . .

• Transaction Selling – a series of transactions, each one
involving separate organizations entering into an
independent transaction.
• The contemporary shift . . .
• Relationship Selling – narrowing the vendor pool,
improving efficiencies, working directly with customers
to solve problems. In general, salespeople are asked
build relationships.

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

 Technology
• Constant accessibility to people/data via computers
and mobile phones
• Interactive web presences
• Just-in-Time (JIT) delivery
– Electronic Data Interchange (EDI) in manufacturing
– Efficient Customer Response (ECR) in retailing
• Customer Relationship Management Software (CRM)
• Intranets for internal communication
• Extranets to serve all stakeholders

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

 Leadership versus Managing

• Leading (Mentoring) Managing

• Communicate  Control
• Cheerleader/coach  Supervisor/boss
• Empower to make  Direct
decisions

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

 Globalization – bridging the culture
gap
• View customers in terms of ethnic core
values
• Get in sync with customer business practices
• Follow customers’ lead
• See others honestly
• Adopt the perspective of other cultures

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

 Ethics

• Customer loyalty is impossible to maintain

without trust
• Long term relationships require higher ethical
standards
• Federal Sentencing Guidelines designed to
punish unethical firms

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

 Personal Selling
• Person-to-person communication between a company
representative and a prospective buyer
• Focus is to inform and persuade prospect
• Short-term goal: make a sale
• Long-term goal: build a relationship
• Important for B2B sales
• Useful in Japan, where face to face trust is important,
and in countries where cheap sales force is available,
or high diversity

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

 Personal Selling Hurdles
• Political risks—unstable or corrupt governments change the
rules for the sales team
• Regulatory hurdles—governments can set up quotas or tariffs
that affect the sales force : China
• Currency fluctuations—increase and decrease in local
currencies can make certain products unaffordable
• Market unknowns—lack of knowledge of market conditions,
the accepted way of doing business, or positioning of the
product may derail the sales team’s efforts
• Cost factor – Training and retention
• Control

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

DIRECT MARKETING & PERSONAL
SELLING
• The Growth of Direct Marketing
• The Value of Direct Marketing
 Direct Orders
 Lead Generation
 Traffic Generation
• Technological,
Global, and Ethical
Issues in Direct Marketing
© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson
Direct Marketing versus Mass
Marketing

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

SCOPE AND SIGNIFICANCE OF
PERSONAL SELLING AND
SALES MANAGEMENT
• Nature of Personal Selling
and Sales Management
 Personal Selling
 Sales Management
• Selling Happens Almost
Everywhere

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

SCOPE AND SIGNIFICANCE OF
PERSONAL SELLING AND
SALES MANAGEMENT (cont.)
• Personal Selling in Marketing
• Creating Customer Value Through
Salespeople: Relationship Selling
 Relationship Selling

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

How salespeople create value for
customers

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

Advantages of Personal Selling
• Provides a detailed explanation
or demonstration of product
• Message can be varied to fit the
needs of each prospective customer
• Can be directed to specific
qualified prospects
• Costs can be controlled by
adjusting sales force size
• Most effective method to obtain sales
and gain satisfied customers

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

 Personal Selling
Personal Selling Advertising & Sales Promotion
is more important if... are more important if...
Product
Product has
has aa high
high value
value Product
Product has
has aa low
low value
value

Product
Product isis custom
custom made
made Product
Product isis standardized
standardized

Product
Product isis Product
Product isis
technically
technically complex
complex simple
simple to
to understand
understand

There
There are
are few
few customers
customers There
There are
are many
many customers
customers

Customers
Customers are
are Customers
Customers areare
concentrated
concentrated geographically
geographically dispersed
dispersed

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

 Relative Importance of
Advertising and Personal Selling
Pre-transaction:
Pre-transaction:
❧ Create
❧ Create recognition
recognition Post-transaction:
Post-transaction:
and
and info
info •• Reminder
Reminder and
and
understanding
understanding reassurance
reassurance
Personal
Personal
selling
Transaction:
Transaction: selling
Advertising ❂
❂ Persuasion
Persuasion Advertising
Personal
selling Advertising

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

 Characteristics of Personal Selling
Pro
Con
Flexibility
• Adapt to situations ❧ Can not reach mass
• Engage in dialog audience
❧ Expensive per
Builds Relationships contact
• Long term ❧ Numerous calls
• Assure buyers receive needed to generate
appropriate services sale
• Solves customer’s ❧ Labor intensive
problems

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

• So what is the difference between Personal
Selling & Salesmanship?

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

• Salesmanship is a skill.
• It is the art of persuading prospects to buy
your product, from which they can derive
suitable benefits and increase total satisfaction

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

 Buyer Seller Dyads

• Buyer seller interaction at core of Personal

Selling
• This interaction is called Dyad
• Other examples of dyads – advertising, sales
promotion
• Sales personnel should be assigned to
prospects with most similar characteristics

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

 THE MANY FORMS OF
PERSONAL SELLING

• Order Taker
 Outside Order Takers
 Inside Order Takers, Order Clerks,
or Salesclerks
 Inbound Telemarketing

• Order Getter
 Outbound Telemarketing
© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson
Comparing order takers and order
getters

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

How outside order-getting
salespeople spend their time each
week

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

 Theories of Selling

• AIDAS theory
– Attention
– Interest
– Desire
– Action
– Satisfaction

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

• ‘Right Set of Circumstances’ theory
– Situation response model

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

• ‘Buying Formula’ theory
– Prospect need based theory
– Need : Solution : Purchase : Satisfaction

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

• ‘Behavioral Equation’ theory
– Sophisticated stimulus response model
– Drive : Cue : Response : Reinforcement

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

Stages in the personal selling
process

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

 Stages and
objectives of
the personal
selling
process

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

 THE PERSONAL SELLING
PROCESS: BUILDING
RELATIONSHIPS
• Personal Selling Process
• Prospecting
 Lead
 Prospect
 Qualified Prospect
 Cold Canvassing
• Preapproach
• Approach
© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson
 Time Spent in Key Steps
of Selling Process
Key Selling Steps Traditional Relationship
Selling Selling
Generate Leads High Low
Qualify Leads Low High
Probe Needs Low High
Develop Solutions Low High
Handle Objections High Low
Close the sale High Low
Follow-up Low High

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

 Generating Leads
Direct
DirectMail/
Mail/
Advertising
Advertising Publicity
Publicity Cold
ColdCalling
Calling
Telemarketing
Telemarketing

Internet
InternetWeb
Web Trade
TradeShows/
Shows/
Referrals
Referrals Networking
Networking
Site
Site Conventions
Conventions
Company
Company
Records
Records

Sources
Sources of
of
Sales
Sales Leads
Leads

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

Cold Calling

A form of lead generation in

which the salesperson
approaches potential buyers
without any prior knowledge
of the prospects’ needs or
financial status.

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

 Qualifying Leads

Characteristics
Characteristics of
of
Qualified
QualifiedLeads
Leads

Receptivity
Receptivity &&
Recognized
Recognized Need
Need Accessibility
Accessibility

Buying
Buying Power
Power

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

Needs Assessment

A determination of the
customer’s specific needs
and wants and the range
of options a customer has for
satisfying them.

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

 Probing Needs

Product
Product or
or service
service

Salesperson
Salesperson Customers
Customersand
andtheir
theirneeds
needs
must
must know
know
everything
everything
about...
about... Competition
Competition

Industry
Industry

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

THE PERSONAL SELLING
PROCESS: BUILDING
RELATIONSHIPS (cont.)
• Presentation
 Stimulus-Response Format
• Stimulus-Response Presentation

• Suggestive Selling

 Formula Selling Format

• Formula Selling Presentation

• Canned Selling Presentation

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson
 THE PERSONAL SELLING
PROCESS: BUILDING
RELATIONSHIPS (cont.)
• Presentation (cont.)
 Need-Satisfaction Format
• Need-Satisfaction Presentation

• Adaptive Selling
• Consultative
Selling

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

 THE PERSONAL SELLING
PROCESS: BUILDING
RELATIONSHIPS (cont.)
• Presentation (cont.)
 Handling Objections
• Acknowledge and Convert the Objection
• Postpone
• Agree and Neutralize
• Accept the Objection
• Denial
• Ignore the Objection
© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson
Techniques for handling objections

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

 THE PERSONAL SELLING
PROCESS: BUILDING
RELATIONSHIPS (cont.)
• Presentation (cont.)
 Close
• Trial Close

• Assumptive Close
• Urgency Close

• Final Close

 Follow-up
© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson
Servicing the Sale

• To ensure customer
satisfaction
– Implementation
process must be
outlined
– Customer service
program established
– Feedback from sales
force to service
personnel
– Quality of service
essential – expatriate v
locals?
© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson
 Sales Force Nationality

• Expatriates
• Host-country nationals
• Third-country nationals
• Other options

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

 Expatriates
• Advantages • Disadvantages
– Superior product – Higher cost
knowledge – Higher turnover
– Demonstrated – Cost for language and
commitment to service cross-cultural training
standards
– Train for promotion
– Greater HQ control

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

 Host Country Nationals
• Advantages • Disadvantages
– Economical – Needs product training
– Superior market – May be held in low
knowledge esteem
– Language skills – Language skills may not
– Superior cultural be important
knowledge – Difficult to ensure
– Fast implementation loyalty

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

 Third Country Nationals
• Advantages • Disadvantages
– – May face identification
Cultural sensitivity
problems
– Language skills – May be blocked for
– Economical promotions
– Allows regional sales – Income gaps
coverage – Needs product and/or
company training
– Loyalty not assured

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

 Other Options

• Sales agents
• Exclusive license arrangements
• Contract manufacturing or production
• Management-only agreements
• Joint ventures

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

The sales management process

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson
 THE SALES MANAGEMENT
PROCESS

• Sales Plan Formulation

 Sales Plan
 Setting Objectives
 Organizing the Sales Force
• Major (or Key) Account Management
• Own employees v Agents

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

THE SALES MANAGEMENT PROCESS

• Sales Plan Formulation: Setting Direction

 Organizing the Salesforce—Size
• Workload Method
• Developing Account Management Policies

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson Slide 20-47

Account management policy grid grouping
customers according to the level of
opportunity and a firm’s competitive sales
position

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson Slide 20-48

U.S. sales force composition and change

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson Slide 20-51

U.S. sales force composition and change

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson Slide 20-52

U.S. sales force composition and change

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson Slide 20-53

U.S. sales force composition and change

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson Slide 20-54

 THE SALES MANAGEMENT
PROCESS (cont.)

• Sales Plan Implementation

 Sales Force Recruitment and Selection
• Job Analysis
• Job Description

 Sales Force Training

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

 THE SALES MANAGEMENT
PROCESS (cont.)

• Sales Plan Implementation

• Sales Force Evaluation
 Input = activities and efforts
 Output = results

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

 THE SALES MANAGEMENT
PROCESS (cont.)
• Sales Force Automation and Customer
Relationship Management
 Sales Force Automation
 Sales Force
Computerization
 Sales Force
Communication

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

 Environmental Impact on Selling

• Environmental forces constrain the ability to

pursue certain marketing strategies or activities
• Environmental variables determine the ultimate
success or failure of marketing strategies
• Changes in the environment create new marketing
opportunities
• Environmental variables are affected by
marketing activities

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson
 Economic Environment

• Buyer-seller interactions take place within the

context of current economic conditions
• The economy impacts real potential demand
• Global economic conditions are important
• Competitive structure affects selling success

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

 Legal-Political Environment
• Many of the changes in society’s values
reflect new laws and new government
regulations.
• Three broad categories of laws are relevant:
• Antitrust
• Consumer Protection
• Equal Employment Opportunity

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

 Technological Environment
• Changing the way salespeople and sales managers
do their jobs
• Influences sales strategies
• Provides increased opportunities for product
development
• Transportation, communications, and data
processing technologies change sales territories,
sales rep deployment and sales performance
evaluation

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

 Social and Cultural Environment
• Ethics - concerned with development of moral
standards by which actions and situations can be
judged.
• Of concern to sales managers:
– Their relationships with salespeople
– Interactions between salespeople and their customers
• Managers must influence ethical performance by
example
• Ethical standards reflect integrity of the firm

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

 Natural Environment

• Nature influences demand for products

– Weather
– Natural disasters
– Availability of raw materials
– Energy resources
• Demarketing may result from shortages caused by
nature
• Growing social concern about the possible negative
impact of product and production have important
implications for marketing and sales programs
© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson
© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson
 Direct Orders

“Direct
“Direct orders
orders are
are the
the result
result of
of offers
offers
that
that contain
contain all
all the
the information
information
necessary
necessary for
for aa prospective
prospective buyer
buyer to
to
make
make aa decision
decision to to purchase
purchase and
and
complete
complete thethe transaction.”
transaction.”

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

 Lead Generation

“Lead
“Lead generation
generation isis the
the result
result of
of an
an
offer
offer designed
designed to
to generate
generate interest
interest in
in aa
product
product or
or service
service and
and aa request
request for
for
additional
additional information.”
information.”

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

 Traffic Generation

“Traffic
“Traffic generation
generation is is the
the outcome
outcome of
of
an
an offer
offer designed
designed to to motivate
motivate people
people
to
to visit
visit aa business.”
business.”

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

 Personal Selling

“Personal
“Personal selling
selling involves
involves the
the
two-way
two-way flow
flow of
of communication
communication
between
between aa buyer
buyer and
and seller,
seller, often
often in
in aa
face-to-face
face-to-face encounter,
encounter, designed
designed toto
influence
influence aa person’s
person’s or
or group’s
group’s
purchase
purchase decision.”
decision.”

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

Sales Force Automation

“Sales
“Sales force
force automation
automation (SFA)
(SFA) is
is the
the
use
use of
of technology
technology to
to make
make the
the sales
sales
function
function more
more effective
effective and
and efficient.”
efficient.”

What are the pros and cons of

SFA?

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

Sales-Force Management

“Sales-force
“Sales-force management
management involves
involves
planning
planning the
the selling
selling program
program and
and
implementing
implementing andand controlling
controlling the
the
personal
personal selling
selling effort
effort of
of the
the firm.”
firm.”

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

 Sales Management

Sales
Sales management
management involves
involves planning
planning
the
the selling
selling program
program and
and implementing
implementing
and
and controlling
controlling the
the personal
personal selling
selling effort
effort
of
of the
the firm.
firm.

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson Slide 20-83

 Relationship Selling

“Relationship
“Relationship selling
selling isis the
the practice
practice
of
of building
building ties
ties to
to customers
customers
based
based on
on aa salesperson’s
salesperson’s attention
attention
and
and commitment
commitment to to customer
customer
needs
needs over
over time.”
time.”

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

 Relationship Selling
vs. Traditional Selling
Traditional
Relationship Selling
Personal Selling
Sell products Sell
Sell advice,
advice, assistance,
assistance, counsel
counsel
Focus
Focus on
on closing
closing sales
sales Focus
Focus on
on customer’s
customer’s bottom
bottom line
line
Limited
Limited sales
sales planning
planning Sales
Sales planning
planning is
is top
top priority
priority
Discuss
Discuss product
product Build
Build problem-solving
problem-solving environment
environment
Assess
Assess “Product-specific”
“Product-specific” Conduct
Conduct discovery
discovery inin scope
scope of
of
needs
needs operations
operations
“Lone
“Lone wolf”
wolf” approach
approach Team
Team approach
approach
Profit
Profit impact
impact and
and strategic
strategic
Pricing/product
Pricing/product focus
focus benefit
benefit focus
focus
Short-term
Short-term sales
sales follow-up
follow-up Long-term
Long-term sales
sales follow-up
follow-up
© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson
 Partnership Selling

Partnership
Partnership selling
selling is
is the
the practice
practice
whereby
whereby buyers
buyers and
and sellers
sellers combine
combine their
their
expertise
expertise and
and resources
resources toto create
create
customized
customized solutions,
solutions, commit
commit to to joint
joint
planning,
planning, and
and share
share customer,
customer,
competitive,
competitive, and
and company
company information
information
for
for their
their mutual
mutual benefit,
benefit, and
and ultimately
ultimately
the
the customer.
customer. Also
Also called
called enterprise
enterprise
selling.
selling.
© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson Slide 20-85
 Order Taker

“An
“An order
order taker
taker processes
processes routine
routine
orders
orders or
or reorders
reorders for
for products
products that
that
were
were previously
previously sold
sold by
by the
the company
company
to
to existing
existing customers.”
customers.”

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

 Order Getter

“An
“An order
order getter
getter sells
sells in
in aa conventional
conventional
sense
sense and
and identifies
identifies prospective
prospective
customers,
customers, provides
provides customers
customers with
with
information,
information, persuades
persuades customers
customers toto
buy,
buy, closes
closes sales,
sales, and
and follows
follows up
up on
on
customers’
customers’ use
use of
of aa product
product or
or
service.”
service.”

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

Personal Selling Process

“The
“The personal
personal selling
selling process
process consists
consists
of
of six
six stages:
stages: (1)
(1) prospecting,
prospecting,
(2)
(2) preapproach,
preapproach, (3)
(3) approach,
approach,
(4)
(4) presentation,
presentation, (5)
(5) close,
close, and
and
(6)
(6) follow-up.”
follow-up.”

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

 Adaptive Selling

“Adaptive
“Adaptive selling
selling involves
involves adjusting
adjusting
the
the presentation
presentation toto fit
fit the
the selling
selling
situation,
situation, such
such asas knowing
knowing whenwhen toto
offer
offer solutions
solutions and
and when
when to to ask
ask for
for
more
more information.”
information.”

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

Consultative Selling

“Consultative
“Consultative selling
selling focuses
focuses on
on
problem
problem identification,
identification, where
where the
the
salesperson
salesperson serves
serves as
as an
an expert
expert on
on
problem
problem recognition
recognition and
and resolution.”
resolution.”

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

 Sales Plan

“The
“The sales
sales plan
plan isis aa statement
statement describing
describing
what
what is
is to
to be
be achieved
achieved and
and where
where and
and
how
how the
the selling
selling effort
effort of
of salespeople
salespeople
is
is to
to be
be directed.”
directed.”

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

Major-Account Management

“Major
“Major account
account management
management is is the
the
practice
practice of
of using
using team
team selling
selling to
to focus
focus
on
on important
important customers
customers soso as
as to
to build
build
mutually
mutually beneficial,
beneficial, long-term,
long-term,
cooperative
cooperative relationships.”
relationships.”

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson

 Missionary Salespeople

Missionary
Missionary salespeople
salespeople are
are sales
sales support
support
personnel
personnel who
who dodo not
not directly
directly solicit
solicit
orders
orders but
but rather
rather concentrate
concentrate on
on
performing
performing promotional
promotional activities
activities and
and
introducing
introducing new
new products.
products.

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson Slide 20-88

 Sales Engineer

A
A sales
sales engineer
engineer is is aa salesperson
salesperson who
who
specializes
specializes in
in identifying,
identifying, analyzing,
analyzing, and
and
solving
solving customer
customer problems
problems and and brings
brings
know-how
know-how and and technical
technical expertise
expertise to
to the
the
selling
selling situation
situation but
but often
often does
does not
not
actually
actually sell
sell products
products andand services.
services.

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson Slide 20-89

 Team Selling

Team
Team selling
selling is
is the
the practice
practice of
of using
using an
an
entire
entire team
team ofof professionals
professionals in
in selling
selling to
to
and
and servicing
servicing major
major customers.
customers.

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson Slide 20-90

Stimulus-Response Presentation

Stimulus-response
Stimulus-response presentation
presentation isis aa
presentation
presentation format
format which
which assumes
assumes that
that
given
given the
the appropriate
appropriate stimulus
stimulus by
by aa
salesperson,
salesperson, the
the prospect
prospect will
will buy.
buy.

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson Slide 20-92

Formula Selling Presentation

Formula
Formula selling
selling presentation
presentation isis aa
presentation
presentation format
format that
that consists
consists of
of
information
information that
that must
must be
be provided
provided in in
an
an accurate,
accurate, thorough,
thorough, and
and step-by-step
step-by-step
manner
manner to
to inform
inform the
the prospect.
prospect.

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson Slide 20-93

Need-Satisfaction Presentation

Need-satisfaction
Need-satisfaction presentation
presentation is is aa
presentation
presentation format
format that
that emphasizes
emphasizes
probing
probing and
and listening
listening by
by the
the salesperson
salesperson
to
to identify
identify needs
needs and
and interests
interests of
of
prospective
prospective buyers.
buyers.

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson Slide 20-94

 Workload Method

The
The workload
workload method
method is is aa formula-
formula-
based
based method
method for
for determining
determining the the size
size of
of
aa salesforce
salesforce that
that integrates
integrates the the number
number of of
customers
customers served,
served, call
call frequency,
frequency, callcall
length,
length, and
and available
available selling
selling time
time to
to arrive
arrive
at
at aa figure
figure for
for the
the salesforce
salesforce size.
size.

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson Slide 20-99

Account Management Polices

Account
Account management
management policies
policies specify
specify
whom
whom salespeople
salespeople should
should contact,
contact, what
what
kinds
kinds of
of selling
selling and
and customer
customer service
service
activities
activities should
should be
be engaged
engaged in,
in, and
and how
how
these
these activities
activities should
should be
be carried
carried out.
out.

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson Slide 20-100

 Emotional Intelligence

Emotional
Emotional intelligence
intelligence is
is the
the ability
ability to
to
understand
understand one’s
one’s own
own emotions
emotions and
and the
the
emotions
emotions ofof people
people with
with whom
whom one
one
interacts
interacts on
on aa daily
daily basis.
basis.

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson Slide 20-101

 Sales Quota

AA sales
sales quota
quota contains
contains specific
specific goals
goals
assigned
assigned to to aa salesperson,
salesperson, sales
sales team,
team,
branch
branch sales
sales office,
office, or
or sales
sales district
district for
for
aa stated
stated time
time period.
period.

© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson Slide 20-102

You are part of the total product
© 2004 McGraw-Hill Companies, Inc., McGraw-Hill Ryerson