SALES MANAGEMENT

Chapter 3 Evolution of Professional Selling

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 merchants places for business.
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Contribution of Early American Salespeople

The nations 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

1.
2.

3.
4.

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

Selling in the 20th Century

1)
2) 3) 4) 5)

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 buyers market.

College graduates were recruited for sales positions and

emphasis was placed on sales training and career development.

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 1970s (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).

2.

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.

Typical Sales Activities

a. b. c. d. e. f. g. h. i.

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
1.

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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2.

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 buyers interest.
Persuader: convince the buyer to buy their product rather

then their competitors. 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 Ego Drive

Determination to achieve goals

Ego Strength Self-assured and self-accepting Verbal Communication Skills Speaking and listening Enthusiasm

In general, and for sales as a career

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