Download Customers

Part I
THE BIG PICTURE
Chapter 1:
Introduction to Selling and
Sales Management
Learning Objectives
Describe the major changes taking
place in selling and the forces causing
these changes.
Define sales management.
Describes the sales management
process.
Discuss the competencies required to
be a successful sales manager.
The Customer is King.
Sales Management
“I don’t care how many
degrees you have on the
wall, if you don’t know how
to sell, you’re probably
going to starve.”
Heavyweight boxer George Forman’s
advice to his children
L.A. Times, pg. C2, Tuesday, March 25, 1997
PERSONAL SELLING
 According to the U.S. Department of Labor’s,
people working in sales number close to 12
million, or about 10 percent of the total
workforce in the United States.
 Personal selling is critical to the sale of many
goods and services, especially major
commercial and industrial products and
consumer durables, and can be defined as:
PERSONAL SELLING
Direct communications between paid
representatives and prospects that lead
to transactions, customer satisfaction,
account development, and profitable
relationships.
Marketing Management
Marketing Management (Kotler):
is the analysis, planning, implementation, and
control of marketing programs designed to
create, build, and maintain mutually beneficial
exchanges and relationships with target
markets for the purpose of achieving
organizational objectives.
Personal Selling is the
Core of Marketing.
Marketing and Selling Concepts
Contrasted
Starting
Point
Factory
Focus
Products
Means
Selling
and
Promoting
Example Ends
e.g., Profits
through
Volume
(a) The Selling Concept
Market
Customer
Needs
Integrated
Marketing
e.g., Profits
through
Satisfaction
(b) The Marketing Concept
Marketing and Selling
Concepts Contrasted
– What is the difference between marketing and
selling?
– “The difference between marketing and selling
is more than semantic. Selling focuses on the
needs of the seller, marketing on the needs of
the buyer. Selling is preoccupied with the
seller’s need to convert the product into cash;
marketing with the idea of satisfying the need
of the customer ….”
Figure 1-1:
Positions of Personal Selling and
Sales Management in the Marketing Mix
Marketing
mix
Products
Prices
Promotion
Distribution
Advertising
Public
relations
Personal
selling
Sales
promotion
Internet
Sales
management
Planning
Budgeting
Recruiting and selecting
Training
Motivating
Compensating
Designing territories
Evaluating performance
What Creates Satisfied
Customers?
21% A Total
Customer
Solution
37%
Competence
of the
Salesperson
25% Quality
of Product
or Service
17%
Competitive Price
Personal selling
 involves two-way communication with
prospects and customers that allows the
salesperson to address the special needs of
the customer.
 Perhaps the most important advantage of
personal selling is that it is considerably more
effective than advertising, public relations,
and sales promotion in identifying
opportunities to create value for the customer
and gaining customer commitment.
Sales management
 Sales management can thus be defined as:
 The planning, organizing, leading, and controlling of
personal contact programs designed to achieve the
sales and profit objectives of the firm.
 all managers have two types of responsibilities
 Achieving or exceeding the goals established for
performance in the current period
 Developing the people reporting to them
A CHANGING MARKETPLACE:
A CHANGING MARKETPLACE:
 Competition
Today, the number of competitors in most markets has literally
exploded. In this section, we explore three key reasons for this
development—globalization of markets, shorter product cycles, and a
blurring of market boundaries.
 1-Globalization : (like Chinese product ) , as the huge technological
advances in all parts of our life , there are an increase in the
competition , so every thing become complex.
 2-shorter product cycles : technology decrease the time needed to
convert input to output , so the production life cycle affect our buying
patterns as example :
(if it take 2 years to produce a plane , you couldn’t replace it every 1 year )
Life span : relatively TV modified or produce new model each year ( like
mobile , computers , cars , because ( let people follow new thing ) .
 3- blurred boundaries : remove boundaries for companies .
A CHANGING MARKETPLACE:
 Customers :
 1-Fewer Suppliers : make the cost lower , so people prefer
wholesaler who have directly relationship with the customer .
 2-Rising Expectation :( the customer have more awareness )
and now he able to know everything about the product , and
because he ask always for the information related to the product
, so the company must expect what customer problems are .
 3-Increasing Power :the relationship between customer and
supplier ( in the past the relationship are as follows , first come
the manufacturer then the supplier then the customer ) but now
because a huge numbers of customers , suppliers play as a
representative for the manufacturer .
when supplier deal with many product for manufacturer , the
result is a decrease of cost of suppliers that the company pay for
them or him .
selling process :
1-Relationship Selling :
 Relationship selling involves creating
customer value by addressing important
customer problems and opportunities through
a supplier-customer relationship that is much
more intimate than that of traditional
transactional selling. relationship selling
requires a greater level of trust and
commitment by both parties.
Figure 1-3:
Contrasting Transactional and
Relationship Selling Models
TRANSACTIONAL
Emphasis on
Sales skills
Respond to
Customer needs
Provide good products,
Price, and services
Narrow the
customer focus
Differentiate through
Products
RELATIONSHIP
Emphasis on general
Management skills
Proactive innovation/opportunity
Identification and offers
Value-based offers/
Organizational enablers
Broaden to
Customers’ customer
Differentiate through
People
Sales/revenue
Focus
Profit management focus/
Share of customer
Traditional customer
relationships
Trusted business advisor
and partner
selling process :






2-Sales team :
with multiple contacts being established between
parties . This model allows for a broader transfer of
capabilities and communications. Companies now
give a big deal or great attention to work as teams
because teams mean
experience
low cost
do the job better
this allows for a broader transfer of capabilities and
communications , notice also that both the buyer
and seller must change , but not all buyers and
sellers are prepared to make these adjustments .
Figure 1-4:
Traditional Buyer-Seller Interface
versus A Team Interface
TRADITIONAL
BUYER-SELLER
INTERFACE
Sales
Supplier
Purchasing
Customer
BUYER-SELLER
INTERFACE TEAM
Sales
Team
Supplier
Customer
Team
Customer
Improving Your
Chances of Success
1. Build awareness
2. Get on the short list
3. Demonstrate how your proposal meets
company needs
4. Directly address decision maker’s
personal needs
5. Be prepared for “buyer remorse”
selling process :



3-Inside selling : some people spend more time
selling for customer in the company rather than go
and attack new buyers and make new deals or
make some selling process.
4-productivity metrics :
Productivity = out puts /In puts
Historically, sales performance metrics were
simple—increase revenue over the previous year.
Sales managers typically rewarded and
compensated salespeople by evaluating sales
volume over a certain period of time. Although
sales volume is still important, companies are
discovering that not all sales are equally profitable.
Profitability often depends
on the following:
 • The amount of time necessary to complete
the sale
 • The gross margins associated with the sale
 • The level of price discounting
 • The amount of promotional support
 • The amount of post-sale support
 • The impact of future product sales
A Sales Force Manager’s
Skill Set
 Willingness to Train/Coach
 Willingness to Make Joint Sales Calls
 Ability to Direct and Control Others
 Profit Mentality
 Initiative
THE SALES MANAGEMENT
PROCESS :
The sequence of activities that guides
managers in the creation and
administration of sales programs for a
firm is known as the sales management
process.
THE SALES MANAGEMENT
PROCESS :
Focusing on the Big Picture
Roles of the Sales Force
Structuring the Sales Force
Building Sales Competencies
Leading the Sales Force
THE SALES MANAGEMENT
PROCESS :
 Focusing on the Big Picture:
Mean interpret the company strategy and a firm's marketing
strategy and a firm's strategic sales force program , so when
you work as salesperson or any jobs in sales try to make your
job plans and goals go with the department goals and with the
company goals …
 Roles of the Sales Force:
The role of sales force in implementation market strategy must
appear and have a big portion .
 Structuring the Sales Force:
Affect selling skills and knowledge level required of salespeople
(which affect compensation, recruitment, training , and
evaluation ) which in turn affect how the customers see
the firm .
THE SALES MANAGEMENT
PROCESS :
 Building Sales Competencies:
( we will talk a lot about it later on ) but for now its mean the
abilities and the capabilities that the salespeople must have to
can work effectively in sales job .
 Leading the Sales Force:
(models of behaviors develop trust between you as a manger
And your employees in sales department, rapport or good
relation with subordinates can be build as a result )
Figure 1-5:
A Model of Sales
Management Competencies
Technology
Competency
Global
Perspective
Competency
Strategic
Action
Competency
Sales
Management
Effectiveness
SelfManagement
Competency
Coaching
Competency
Team
Building
Competency
Strategic Action Competency
Dimensions
Understanding the Industry:
 Understands the history and general trends in
the industry and their implications for the
future
 Stays informed of and anticipates the actions
of competitors and strategic partners
 Identifies attractive market segments and
their buying needs
Strategic Action Competency
Dimensions
Understanding the Organization:
 Understands the vision, overall strategy, and
goals of the organization
 Appreciates the distinctive competencies of
the organization with respect to market
opportunities and limitations
 Understands how to marshal organizational
resources to meet the needs of the customers
Strategic Action Competency
Dimensions
Taking Strategic Actions:
 Assigns priorities and making decisions that are consistent
with the firm’s mission and strategic goals
 Implements specific account selection, retention, and
dominance strategies
 Develops an appropriate portfolio of account relationships
 Considers the long-term implications of actions in order to
sustain and further develop the organization
 Establishes tactical and operational goals that facilitate the
firm’s strategy implementation
Coaching Competency
Dimensions
Providing Verbal Feedback:
 Provides specific and continuous performance
and selling skills feedback
 Builds a feeling of appreciation and recognition
by taking the time to acknowledge a job sell done,
and effort beyond the call of duty or an important
victory
 Reinforces successes and nice-tries to support
desirable behaviors
Coaching Competency
Dimensions
Role Modeling:
 Leads by example, rather than decree
 Provides role models, either themselves or
others, and sharing best practices
 Models professional attitudes and behaviors
Coaching Competency
Dimensions
Trust Building:
 Maintains good rapport with the sales team and
fosters open communications, collaboration,
creativity, initiative, and appropriate risk taking
 Adds value through communicating relevant
selling experiences
 Helps salespeople to “look good” through twoway communications
Teambuilding Competency
Dimensions
Designing Teams:
 Implements an organizational architecture that
will support teams
 Creates a reward system that is fair within the
context of a team effort
 Coordinates team goals with the overall goals of
the organization
 Coordinates team activities with the requirements
of functional areas within the organization
Teambuilding Competency
Dimensions
Creating a Supportive Environment:
 Hires people that will be successful in a team
environment
 Trains programs that encourage teamwork
 Integrates the individual members of the
sales team together to form a functioning
supportive team
Teambuilding Competency
Dimensions
Managing Team Dynamics:
 Understands the strengths and weakness of
team members and using their strengths to
accomplish tasks as a team
 Facilitates cooperative behavior and keeps
the team moving towards its goals
Self-Management Competency
Dimensions
Fostering Integrity and Ethical Conduct:
 Has clear personal standards that serve as a
foundation for a sense of integrity and ethical
conduct by the sales team
 Projects self-assurance and does not just tell
people what they want to hear
 Willing to admit mistakes and accepts
responsibility for own actions
Self-Management Competency
Dimensions
Managing and Balancing Personal Drive:
 Seeks responsibility, works hard and is willing to
take risks
 Shows perseverance in the face of obstacles and
bounces back from failure
 Ambitious and motivated to achieve objectives, but
does not put personal ambition ahead of the
organization’s goals
 Understands that goals are achieved through the
success and development of the salespeople
Self-Management Competency
Dimensions
Developing Self-Awareness and
Management Skills:
 Has clear personal and career goals and knows
own values, feelings and areas of strengths and
weaknesses
 Analyzes and learns from work and life experiences
 Willing to continually unlearn and relearn as
changing situations call for new skills and
perspectives
Global Perspective Competency
Dimensions
Cultural Knowledge and Sensitivity:
 Stays informed of political, social, and economic
trends and events around the world
 Recognizes the impact of global events on the
market and the organization
 Sensitivity to cultural cues and ability to adapt
quickly in novel situations
 Travels regularly and has a basic business
vocabulary in languages relevant to the position
Global Perspective Competency
Dimensions
Adapting Global Selling Program:
 Adopts an appropriate sales force architecture for
global accounts
 Appropriately adjusts sales force measurement,
competency creation and motivation systems to the
local culture
 Appropriately adjusts own behavior when
interacting and managing people from various
national, ethnic and cultural backgrounds
Technology Competency
Dimensions
Understanding of New Technology:
 Awareness of the potential for technology to
increase sales force efficiency and
effectiveness
 Experience in using new technology
 Attitude toward adopting new technology
Technology Competency
Dimensions
Implementing Sales Force Automation:
 Knows what is to be accomplished and the
benefits that are possible
 Adapts personal management style and
procedures
 Fosters sales force acceptance and use of
selling technology