Sales Management Week 1 Note: This lecture draws heavily from the content in the textbook: Sales Management (Analysis and Decision Making), 6th Edition, Ingram et al.
Agenda • Getting Started • Review of Course Outline • Expected Learning Outcomes: • List the advantages and disadvantages of personal selling as a marketing communications tool • Flow/Activities/Discussion • What is marketing communications? • What drives the decision to utilize personal selling in the mix? • Which of the 5 personal selling approaches should be deployed? • In-Class Practice Exercises • Group – Analyze quick case & make a recommendation • Individual – Analyze a case scenario and make a recommendation • Review Key Terms & Concepts • Next Class
Thinking about Sales Mgmt • Why is common for personal selling to be emphasized in business markets and advertising emphasized in consumer markets? • What are some of the problems a firm might face when undertaking a major restructuring of its sales organization? • What are some of the problems associated with improperly executed recruitment and selection activities? • Describe an optimal salesforce reward system? • Discuss why it is important to differentiate between sales organization effectiveness and salesperson performance.
Course Outline Review • Get textbook • Review grading elements • Key Dates • Quiz #1 …... Jan 26 • Quiz #2 …… Feb 12 • Midterm …… Feb 19 • Quiz #3 …… Mar 9 • Final Exam .. Apr 2
Marketing Communications? • Marketing Strategy • Target Market(s) • Positioning • Marketing Mix Development • Product Strategy • Price Strategy • Distribution Strategy • Marketing Communications Strategy • Advertising Strategy • Publicity Strategy • Sales Promotion Strategy • Personal Selling Strategy
Marketing Communications? • B2B Marketing Strategy • Market entry for Newco’s Business Laptops • Target Market Selection • Mid-size companies across Europe • Marketing Mix Development • Product Strategy • Internationalized • Most reliable, Longest battery life • Superior customer service • Price Strategy • Lowest cost for moderate volume purchases (25-50) • Distribution Strategy • Fulfillment through central manufacturing and distribution center in Berlin • Marketing Communications Strategy • Advertising Strategy == Top 5 European daily newspapers • Publicity Strategy == Key Influencer articles, Press releases • Sales Promotion Strategy == Direct marketing, Give-a-way contest, Major Conferences • Personal Selling Strategy == <<????>>>
Personal Selling – Defined Personal selling refers to person to person communication with a prospect. It is the process of developing relationships ; discovering customer needs; matching appropriate products with these needs; and communicating benefits through informing, reminding or persuading.
Why Use Personal Selling? • Buyer market is few and concentrated • Buyer needs a great deal of information • Purchase is important • Product is complex • Service after the sale is important… e.g. personal selling is preferred tool in many B2B environments
Describing the Personal Selling Function Defining the Strategic Role of the Sales Function Developing the Sales Force Directing the Sales Force Sales Management Model Determining Sales Force Effectiveness and Performance
Short term thinking • Making the sale has priority over most other considerations • Interaction between buyer and seller is competitive • Salesperson is self-interest oriented • Long term thinking • Developing the relationship takes priority over getting the sale • Interaction between buyer and seller is collaborative. • Salesperson is customer-oriented Transaction vs. Relationship Transaction-Focused Relationship-Focused
Personal Selling Approaches • Stimulus Response Selling • Mental States Selling • Need Satisfaction Selling • Problem Solving Selling • Consultative Selling
Continue Process until Purchase Decision Salesperson Provides Stimuli Buyer Responses Sought Stimulus Response Selling
Mental States Selling Attention Interest Conviction Desire Action
Present Offering to Satisfy Buyer Needs Continue Selling until Purchase Decision Uncover and Confirm Buyer Needs Need Satisfaction Selling
Continue Selling until Purchase Decision Generate Alternative Solutions Evaluate Alternative Solutions Define Problem Problem Solving Selling
Business Consultant The process of helping customers reach their strategic goals by using the products, service, and expertise of the selling organization. Strategic Orchestrator Long-term Ally Consultative Selling
Group Exercise • Get into 5 groups • Take 5 minutes to discuss which type of selling approach and why might be used by the following salespeople: • Chemical company selling raw materials to paint mfg • Financial company selling credit cards • Pharma company selling anti-coagulant meds to heart surgeons • Insurance sales people • FutureShop or electronics retailer • Think in terms of the expectation of the customer, size of deal, geographic coverage, information exchange, risks
Personal Selling Stimulus Response Mental States Need Satisfaction Problem-Solving Consultative Marketing Com Review Key Terms and Concepts
Career Planning in Sales • Develop a framework for career planning • Action Plan • ID industries in which you have passion • Shortlist top 10 companies by industry • ID 2-3 people working in those companies • Find a connection/IN to those people • Make contact with those people and gather insights • List types of entry-level jobs available • Compare existing strengths with job reqs • ID key contacts for jobs with best fit today. • Make contact with these people • Schedule a presentation with them
Next Class • Read Modules 1-2 & Appendix A • Prepare Cases 2.1 & 2.2