SALES MANAGEMENT
Chapter 3 ‘Evolution of Professional Selling’
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The Early American Experience
Yankee Peddler: early American sellers, traditionally based in New England, who sold to pioneers, in the 17th century. Wagon peddlers: these were nineteen-century salesperson, which covered their territories in covered wagons carrying several tons of merchandize. Credit investigators: supplier employed people who evaluated retailers credit and developed relations. Drummers: 19th century sales people who journeyed to merchant’s places for business.
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Contribution of Early American Salespeople
1. 2. 3. 4.
The nation’s standard of living improved Personal selling served as a vehicle of upward economic and social mobility Served as a rigorous training ground for future entrepreneurs Source of information, communication flow in different parts of America
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SALES MANAGEMENT TRENDS
From To
Transactions Individuals Sales Volume Management Local
Relationships Teams Sales Productivity Leadership Global
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Contributions of Personal Selling :
Salespeople and the Employing Firm
Salespeople as Revenue Producers Market Research and Feedback Salespeople as Future Managers
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Selling in the 20th Century
1) 3) 5) 7) 9)
Production to Sales Era Traditional Sales Approach Emergence of Marketing Concept Strategic Selling Partnering / teamwork in Selling
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1. Production to Sales Era
Previously selling was overshadowed by tremendous
growth of manufacturing. Focus was on producing the product rather then marketing it. Selling was regarded as a secondary activity.
New manufacturing methods led to production surplus
and a buyer’s market.
College graduates were recruited for sales positions and
emphasis was placed on sales training and career development.
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2. Traditional Sales Approach
Canned Sales presentation – structured sales script memorized by the salesperson. Stimulus response theory – sales approach that holds that the prospect will buy upon hearing the right sales message Selling formulas – sales approach in which salespeople lead prospects through distinct stages of the buying process in a persuasive manner.
(AIDR – attention, interest, desire, resolve) (AIDA – attention, interest, desire, action)
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3. Emergence of Marketing Concept
The focus on market driven selling has shifted to
increased emphasis on solving customer problems and build long-term relationship. Effective salespeople have learned the questioning and need analysis have replaced the typical sales presentation
Customer Orientation Coordinating Marketing Activities Profit/Goal Direction
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4. Strategic Selling
Emphasis is on Strategic Marketing Plan Outline the ‘Strategic Selling Model’ Tactics to achieve strategic plan
STRATEGY: Carefully conceived plan required to meet sales objectives TACTICS: Specific techniques, practices, and methods used in customer interaction
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STRATEGIC SELLING MODEL
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STEP 1 : Develop Personal Selling Philosophy
ADOPT MARKETING CONCEPT
VALUE PERSONAL SELLING
BE PROBLEM SOLVER/PARTNER
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STEP 2 : Develop Relationship Strategy
ADOPT WIN-WIN APPROACH
PROJECT PROFESSIONAL IMAGE
MAINTAIN HIGH ETHICAL STANDARDS
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STEP 3 : Develop Product Strategy
BECOME PRODUCT EXPERT
SELL BENEFITS, NOT FEATURES
CONFIGURE VALUE-ADDED SOLUTIONS
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STEP 4 : Develop Customer Strategy
UNDERSTAND BUYER BEHAVIOR
DISCOVER CUSTOMER NEEDS
DEVELOP PROSPECT BASE
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STEP 5 : Develop Presentation Strategy
PREPARE OBJECTIVES
DEVELOP PRESENTATION PLAN
PROVIDE OUTSTANDING SERVICE
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EFFECTIVE RELATIONSHIP STRATEGY FOUR KEY GROUPS
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5. Teamwork in Selling
Support groups like marketing, sales service, sales support, customer service, marketing research team, sales promotion staff etc. ‘Systems selling approach’ developed in the 1970’s (specifically to market computers, scientific instruments, machine tools) calls for a team approach to selling. It requires salespeople to bring all relevant components of the firm to resolve customer problems/difficulties.
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Example of a ‘Systems Approach’
AT&T and IBM use the team approach in developing effective sales techniques that involves sales support personnel. The sales representative has the primary responsibility for assigned accounts, but he/she must allocate other resources and support staff to meet the complex needs of the customers. System engineers design the system, oversee the installations (with the help of the technical support people) and train customers on how to use them.
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Three forms of team selling approach
1.
Member of the sales force working together as a team (example: a field sales manager may accompany a salesperson on a joint call to a key customer). Integrating the efforts of other key personnel and department with sales personnel (systems approach) An even wider range of participants, including buyers and other vendors.
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3.
5.
Typical Sales Activities
• • • • • • • • •
Selling - prospecting, planning, making sales presentation Handling orders - writing orders, locating lost orders Product servicing - delivering and installing products, training customers Information handling - receiving customer feedback Conference/sales meeting - setting trade shows, attending conference/seminar Training - training sales people, traveling with new sales trainees Entertaining - taking a customer for dinner, playing golf etc Traveling - market survey, meeting prospect clients Assisting distributors - establishing relationships with 21 distributors, collecting due from them
Classifying Salespeople
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Creative selling – arousing demand and influencing potential customer (e.g insurance agent who must make potential buyer aware of the need for insurance and convince them to purchase policies) Service selling – aiding a customer in bringing a sale to completion (e.g retail salesperson assist customer in selection)
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THE FUTURE:
Future Changes and Anticipated Salesforce Response
Intensified Competition More emphasis on developing and maintaining trustbased long-term customer relationships More Emphasis on Improving Sales Productivity Increased use of technology (e.g., laptop computers, electronic mail, fax machines) Fragmentation of Traditional Customer Bases Sales specialists for specific customer types Multiple sales channels (e.g., major accounts programs, telemarketing, electronic networks) Globalization of sales efforts
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THE FUTURE:
Future Changes and Anticipated Salesforce Response
Customers Dictating Quality Standards and
Inventory/Shipping Procedures to be met by Vendors
Team selling Salesforce compensation sometimes based on customer satisfaction and team performance
Demand for In-depth, Specialized Knowledge as
an Input to Purchase Decisions
Team selling More emphasis on customer-oriented sales training
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Contributions of Personal Selling :
Salespeople and the Customer Industrial buyers prefer to deal with salespeople who:
Are honest Understand general business and economic trends, as well as
the buyer's business Provide guidance throughout the sales process Help the buyer to solve problems Have a pleasant personality and a good professional image Coordinate all aspects of the product and service to provide a total package.
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Extending the Sales Classification
by Thomas Wotruba (5Ps)
Provider: accepts orders from buyers and supplies the
desired product. There is no need to identify the buyers needs or to tailor a sales presentation to the buyer’s interest.
Persuader: convince the buyer to buy their product rather
then their competitor’s. The success of salesman depends on his/her ability to influence.
Prospector: seeks out selected buyers perceived to have a
need for a product.
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•Problem solver: focus on customers needs and concerns. The customer participates in defining their needs. Salesperson presents a selection of available products and helps the buyer to select from it.
•Procreator: creating a unique offering to match the specific needs of the buyer. Has the authority to adjust prices, credit terms, delivery, and other parts of the marketing mix.
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Qualifications and Skills Required for Success by Salespeople
Empathy
To see things as others Determination to achieve goals Self-assured and self-accepting Speaking and listening In general, and for sales as a career
Ego Drive
Ego Strength
Verbal Communication Skills
Enthusiasm
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