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					A-Selling




                Overview of Professional Selling




            • What is Professional Selling?
               – Personal communication by a rewarded (usually financially)
                 individual(s) with another individual(s) with the express purpose of
                 eventually persuading the other party/parties to (1) believe the
                 communicator’s message comes from his/her organization, and (2)
                 exchange something of value (usually money) for the product,
                 service or idea being offered.

               – Or….Getting people to buy stuff


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            • Remember the 4 P’s? (Product, Place, Price
              and Promotion)
              – Sales falls into promotion


            • Creativity, skill levels and pay vary
              depending on the complexity and
              importance of the type of sales job


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            Communicating with Customers


               Impersonal       Personal

               Advertising     Professional
                                 Selling



               Publicity     Word of Mouth



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                Overview of Professional Selling

            • What do salespeople do?
               – Locate and qualify prospective buyers

               – Convert potential buyers to customers

               – Understand customers’ needs, wants, and goals

               – Help customers question their needs, wants, and goals

               – Provide solutions to customers’ problems

               – Translate customers’ needs to own company

               – Help customers resell their products to their customers

               – Help customers use products

               – Collect and provide company and customer with market
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                 information
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                     Overview of Professional Selling
            • Types of sales jobs:
               – Inside sales--(1) the customer comes to you (usually order-takers),
                 or (2) manage daily interaction with long-term buyers
                   • Retail sales
                   • Catalog sales / teleseller
                   • Industrial sales (sales service)


               – Outside sales--you go to the customer (more likely to be order
                 getters)
                   • wholesale selling
                   • selling for a manufacturer
                        – Account Representative / National Account Manager
                        – Sales Engineer
                        – Manufacturer's representative
                        – Service Support
                        – Sales trainee                                           5
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                          Seven Sales Job Categories




             Inside              Entry Level                         Creative     Creative
                      Outside                            Sales
             Retail              Consumer Missionary                  Sales of     Sales of
                      Delivery                         Engineers
              Sales                Goods                             Tangibles   Intangibles




            Order           (Increasing Complexity and Difficulty)               Order
            Takers                                                               Getters




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                            Some Necessary Skills

            •   Motivation
            •   Verbal communication (including presentation)
            •   Ambition
            •   Problem recognition and resolution skills
            •   Self discipline
            •   Ability to work both independently and in teams




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                Professional Selling is a form of
                communication that is HIGH in:


            •   Cost per contact
            •   Flexibility
            •   Ability to make quick adjustments
            •   Amount of information conveyed
            •   Ability to demonstrate product
            •   Ability to hold customer’s interest


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                    The Selling Process



            Prospecting          Determine Objections

            Pre-Approach          Address Objections

             Approach                Trial Close

            Presentation                Close

             Trial Close             Follow-up




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            Where do Sales People Spend Their Time? It’s
                        all about golf, right?


                     Weekly Time Expenditures
                     Traveling /      Service
                      Waiting          Calls
                        18%            11%
                                             Selling
                    Admin.                  Face-to-
                     15%                      Face
                       Selling over           31%
                        the Phone
                           25%
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                   Typical American Sales Person Profile

               33 years old                    Average length of service—
               71% male                         6.3 years
               29% female                      Mostly paid:
               18% black, Hispanic, Asian              20% salary
               81% some college or degree              30% commission
               9% graduate degree                      50% combination
               Most likely to leave after      Trainee makes $33,000;
                4.3 years                        experienced makes $80,000
                                                Costs $22,000 to train




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                     Profile of the American Salesperson

           Length of training—3            Spends 41 hours per week in
            months                           selling activities within the
           Sales call cost—$95.00 to        territory
            $400.00                         Spends 18 hours per week in
           Sales calls per day—6.5          nonselling activities, such as
           Number of calls to close—5       paperwork and planning sales
                                             calls
           Field expenses cost—
            $30,000                         Turnover rate: 20% per year
           Value of benefits—$16,000
           Average sales volume—
            $600,000



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                               A Sales Career Path


                                                             President
                                            Vice president of marketing
                                        National sales manager
                                  Divisional sales manager
                             Regional sales manager
                        District sales manager
                  Key account salesperson
                 Salesperson
            Sales trainee



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              Compensation and Expenses by Industry

                                                 Travel and
                                                 entertainment
                                 Compensation*   expenses†         Total

            Top-level salesperson
             Consumer goods       $ 80,000        $16,606        $ 96,606
             Industrial goods     110,000          16,880        126,880
             Services               85,000         15,000        100,000

            Sales superior
              Consumer goods       $ 82,000       $28,000        $110,000
              Industrial goods     112,000         29,200        141,200
              Services               87,000        28,198        115,198




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                          Main Elements in the
                     Customer Relationship Process

                                 Analyze
                                customer
                                  needs

              Maintain                          Recommend
            and grow the                        solution and
            relationship                      gain commitment


                                Implement
                                   the
                             recommendation


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            Benefits and Drawbacks of Selling Career

            • Benefits
               –   Compensation potential
               –   Challenge
               –   Responsibility
               –   Flexibility in work activities
               –   Rewards from making a tough sale
               –   Learning the business
               –   Opportunity for senior management positions


            • Drawbacks
               –   Limited supervision
               –   Potential conflict between company and customer demands
               –   Depression form lost sales
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               –   Discomfort from asking people to buy
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                                         Trends

            •   Springboard to leadership
            •   Every sales job is different
            •   Competition is intense for top sales positions
            •   Sales doesn’t necessarily last forever
            •   Technology is having an impact
            •   May require extensive travel
            •   Entry level jobs moving from F500 to growing companies
            •   Financial services and franchise sales are areas of growth
            •   Often cited good companies to sell for:
                 – AT&T (NY)                               HP (Palo Alto, CA)
                 – Coca-Cola (Atlanta)                     Kimberly Clark (Irving, TX)
                 – Westinghouse (Pittsburgh)               Adolph Coors (Golden, CO)
                 – Cummins Engine (Columbus, IN)           P&G (Cincinnati, OH)
                 – Du Pont (Wilmington, DE)                                         17
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                                     Trends


            • From Transactions to Relationships
            • From Individuals to Teams (in some areas)
            • From Sales Volume to Sales Productivity
            • From Management to Leadership
            • From Local to Global




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                              Questions to think about

            • Myth or not?
               –   Salespeople do not serve a useful role in society.
               –   Sales people are born, not made.
               –   Selling is just a big bag of tricks.
               –   A salesperson should never take no for an answer.
               –   A good salesperson can sell anything to anyone.


            • What are some rewards of a selling career?
            • Why are some outstanding sales people poor managers?
            • Why do many people have a negative opinion of
              salespeople?

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                       So What Do I Need To Know?

            •   You need to know about your own company!
            •   You need to know about your own products/services!
            •   You need to know how your channel of distribution works!
            •   You need to know other parts of the promotion strategy!
            •   You need to know your competition and your industry!
            •   You need to know what you can and cannot do in pricing!
                – Discounts
                    • Quantity discounts
                        – Cumulative
                        – Non-cumulative
                    • Cash discounts
                    • Trade discounts
                    • Consumer discounts                             20

				
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posted:3/12/2008
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