UNIT FMANAGEMENT OF DISTRIBUTION, PROMOTION, AND SELLING 10.04 Summarize sales management.
Types of selling • Retail • Business-to-business • Telemarketing • Internet
Steps in the selling process • Preapproach: The step in the selling process in which the salesperson learns as much as possible about the product and prospective customers before making a sales call. • Prospecting: The step in the selling process in which the salesperson identifies potential customers. • Qualifying the leads – identifying potential customers and screening out poor prospects
Steps in the selling process (cont.) • Approach: The step in the selling process in which the salesperson meets the customer for the first time. • Determining needs: The step in the selling process during which the salesperson observes, asks questions, and listens to uncover the customer’s needs and/or buying motives.
Steps in the selling process (cont.) • Presentation: The step in the selling process in which the salesperson tells the “product story” to the buyer, highlighting customer benefits. • Handling objections: The step in the selling process in which the salesperson seeks out, clarifies, and overcomes customer objections to buying.
Steps in the selling process (cont.) • Closing: The step in the selling process in which the salesperson asks the customer for an order or purchase. • Follow-up and relationship building: The last step in the selling process in which the salesperson follows up after the sale to ensure customer satisfaction and repeat business.
Personal selling • Salesperson: An individual acting for a company by performing one or more prospecting, communicating, servicing, and/or information gathering activities. • Sales representatives • Account executives • Sales consultants • Sales associates • Sales engineers • Agents • District managers • Marketing representatives • Account development representatives
The role of the sales force • Serves as a critical link between a company and its customers • Produce customer satisfaction and company profit. • Represent the company to customers. • Represent customers to the company. • Build long-term relationships with key client decision makers
The role of the sales force • Varies from company to company • Major role in most companies • May have a lesser role if a company does business only through catalogs or on the Internet
Sales force management The analysis, planning, implementation, and control of sales force activities.
Responsibilities of a sales force manager • Design the sales force structure. • Recruit, select, and train salespeople. • Make decisions about and oversee sales staff compensation. • Supervise, direct, and motivate salespeople. • Conduct staff meetings. • Evaluate the sales staff.
Responsibilities of a sales force manager (cont.) • Make decisions about and oversee sales staff compensation. (cont.) • Sales quota: A standard that states the amount a salesperson should sell and how sales should be divided among the company’s products. • Base salary and incentive pay
Responsibilities of a sales force manager (cont.) • Supervise, direct, and motivate salespeople. (cont.) • Conduct sales meetings • Develop and administer positive incentives • Organizational climate: The feeling that salespeople have about their opportunities, value, and rewards for good performance. • Sales contests • Honors and recognition • Rewards, trips, and/or merchandise
Responsibilities of a sales force manager (cont.) Key decisions to manager must make • Structure of the sales force (Slide 15) • Size of the sales force • Specific tasks of the salespeople • Whether to use the individual or team selling approach (Slide 16) • Whether to utilize an inside sales force, an outside sales force, or both (Slide 16)
Sales force management • Sales force structures • Territorial sales force structure – Each salesperson is assigned to an exclusive geographic territory to sell the company’s full line. • Product sales force structure – Salespeople specialize in selling only a portion of the company’s products or lines. • Customer sales force structure –Salespeople specialize in selling to only certain customers or industries. • Complex sales force structure – A combination of structures is used as needed to meet the objectives of the company.
Sales force management (cont.) • Team selling: Use of teams of people from sales, marketing, engineering, finance, technical support, and even upper management to service large, complex accounts. • Outside sales force (field sales force): Salespeople who travel to call on customers at locations away from the business. • Inside sales force: Salespeople who conduct business from their offices via telephone or visits from prospective buyers.