Sales Management

Diverse Selling Situations

Service Selling:

Inside order taker Delivery Sales Person Missionary Field Sales Person Technical Sale Person

or who resist change to customers.

Developmental Selling: Converting non-prospects

AIDAS Selling theory

A Securing Attention I Gaining Interest D Kindling Desire A Inducing Action S Building Satisfaction

Sales Management

Supervising

Sales Managers
Motivating

Planning

Personal Sales Reps

Recruiting

Training

Managing

a sales force involves recruiting, hiring, training, supervising, compensating salespeople, motivating them to become problem solvers, and providing the proper planning and backup support so they can perform their jobs properly.

Sales Management Decision Areas

Set Objectives Determine Sales Force Size Select Territories, Recruiting Selecting

Planning

Organizing

Customer Needs/wants
Evaluate & control Motivate Training & Development

Controlling

Directing

Compensation

The Selling Process

The Sales Process

Prospecting/ Qualifying

Identifying Needs

Preapproach/ Planning Approach Presentation Handling Objections Closing the Sale Follow up

What makes for a good sales presentation? Built on a strategy The sales persons mental preparation

Overall presentation

Strategy

A good sales presentation contains objectives as well as explicit plans of action Good sales strategies should be built from strong selling theory

The Sales Persons Mental Preparation

S-A-L-E-S

S for Self-Confidence A for Appearance L for Listening

E for Enthusiasm
S for Service

Overall aspects of the presentation

People buy benefits not features

The better the salesperson understands the buyers needs, the easier it will be to relate benefits to the prospect Words- use words meaningful to the prospect Showmanship-success stories, demonstrate the product, always handle the merchandise in a way that conveys respect, get the prospects involved, must be tailored to each prospect and salesperson Feedback- After presenting benefits, obtain feedback from the prospects

The Organized Sales Presentation

Consists of five steps

Approach The general problem The specific problem The companys product or service as the preferred solution The close

The Approach (Objectives)

Purpose: Develop mutual trust and empathy

Key elements to building acceptance

Physical appearance Ability to ask questions Willingness to be a good listener Skill in getting the prospects to talk about themselves or something of interest to them Offering a compliment on something the prospect has done

Needs Assessment

Establishing the General Problem

Customers must understand what their needs are

Ask questions and listen

Often easier for a prospect to accept a general problem

The cost of buying, maintaining, and driving an automobile today has become prohibitively expensive
Most people I talk to about

Quote a consensus of other people

Include the prospect in a trade, professional, or business group

I would like to share an idea that has been valuable to other dealers here.

Establishing the Specific Problem

The broad problem is to moved to a specific problem The stronger the prospect needs, the more the prospects will want a solution

The Preferred Solution (Objectives)

Establish value
Create desire for ownership Transaction/Purchase

What Makes A Great Salesperson

PREREQUISITES

Believe in your product Believe in yourself Work on your timing Develop a sense of humor Realize that your customer isnt necessarily telling you 100% of what they want Good Manners

Characteristics Related to Sales Performance

Relatively Important

Relatively less Important

High energy & Stamina Verbal Skills (Persuasiveness) Knowledge of Customer Needs Empathy

Aggressiveness Age and Maturity Formal Education Experience

Move from general need to specific needs for followings

Vacuum cleaner
Car

Computer
Long distance calling plan

Financial services
MP 3 Player

Sales Organisation / Sales Department

Sales organisation as a unit must ensure that the production of the organisation must reach the end consumer. Revenues that are generated from customers move back to the organisation.

Purpose of Sales Organisation

To facilitate development of specialists Co-ordination and balance Complaint registered but not attended Enquiry generated but not passed on Payments received but not passed on timely There could be mismatch in individuals personality and organisational goals

Inter-departmental Conflict

TO Define Authority:
A sales person gets directions from various sources Attempt should be made to define authorities Line Authority:

Authority flows from top to bottom and reporting is upward

Functional Authority: Specialist from different functional areas give required instructions To Economise on executive time:

Setting up of sales organisation It is required from time to time to make necessary Changes due to Expansion of New Markets Extension of New Product Line Change in Management Diversification

Steps that are involved while setting up a sales department 1. Defining Objectives: There could be general objectives like; Qualitative objectives Industry Leadership Becoming Customer Oriented Company Establishing an image of public responsibility Offering quality product

Bringing these general objectives to more specific By Quantifying

Increase Market Share by .% Sales Revenues by Rs. .. Out of such objectives Sales department brings out its objectives

2. Determining activities and setting up targets and performance standards Many necessary or similar activities can be grouped together These activities can differ from organisation to organisation

3. Setting up and assigning responsibilities and translating them into Jobs or positions.
Each position should contain required activities and Variations It can vary according to size of the organisation

4. Assigning Personnel to Position: Special Individual for the tasks or experienced individual 5. Provision for co-ordination and control

Executive who has others reporting to him (line authority) would Require means to control his subordinates.
This executive should not be over burdened with details and un-delegated responsibilities. Must not be over burdened with too many subordinates Reporting him; weakens the quality of control.

Measures for Control and Coordination

Formal Informal

Job Description
Reporting relationships Job Objective

Good Leadership Qualities

Team Building

Duties
Responsibilities

Lead by example

Performance measurements
Organisational Chart Organisational Manual it contains write ups for job Description, specifications, objectives and policies

Types of Sales Organizational Structure

The structure of sales department evolves from the Need of the business. Factors that affect the organizational structure could be: Marketing Channels Company Size Product or Product Line Competitors Practices Abilities of personnel

Structure of Sales Department can be broadly Categrised into:

Authority Based: Line, Line and Staff, Functional

Product or Division Based

Geographical

Authority Based: Line organizations

The authority flows from top to bottom. Used mainly in small companies

Responsibility is fixed
No cross command Merits Low cost : one manager responsible for various functions Centralised Command, no ambiguity about roles

Speedy Decisions

Demerits Head needs to have outstanding ability

Needs to have right balance He has insufficient time Managerial effectiveness becomes impaired

Line and Staff Sales Organisation Found in Large and Medium size companies

Employing substantial numbers of sales personnel

Selling diversified Product lines

Spread over wide geographical areas.

Top sales executives are facilitated with a group of specialists / Experts in: Dealer and Distribution relations Sales Analysis / Planning / Promotions / Training

Such Experts are recruited to render advisory services to Sales Manager

The control of the market is still handled through Line System of Control.

Sales Executives report in the line authority but would get necessary support from other functional authorities in his territory.

Merits:
Specialisation

Line Executives are eased out of the pressures

Outsourcing costs are reduced

Immediate corrective measures can be taken

Top line managers get more time to attend Human aspects: Team Building, Motivation, Training

Demerits
Costs are high

More co-ordination is required

Possibility of evading responsibility; avoidance of handling Unwanted responsibilities Time between problem recognition and corrective Measures may widen

Functional Sales Organisation

Duty Assignment and delegation are done according to functional area. One executive is responsible to a particular function across the department

All Sales Representatives receive directions from each Functional manager and are also accountable to them.
There is no unity of command, more confusion.

As the organisations become larger the centralised Control becomes difficult

Need for Fragmentation of sales organisation arises due to:

To convert the volume of business into manageable units

More Concentration on each product line / geographic area is desirous

To ensure less conflicts among different executives

Fragmentation could be done mainly in line authority

The fragmentation could be done on the basis of Product Division / Customer Type / Geographic Area

Reason for fragmentation could be : Expansion of the market / product line / customer type Local Problems could be handled effectively and faster by decentralisation Characteristics of customers vary Products or services could be altered according to preferences Local competitors could be countered more effectively

Product / Division Based Structure

Vice-President Sales Snack Foods Sales Manager Sales Rep Eastern Region Sales Rep Western Region Beverages Sales Manager Sales rep Eastern Region Sales Rep Western Region

Customer Type Based Structure

Vice-President Sales
New Accounts Manager New Account #1 New Account #2 Existing Accounts Manager Existing Account #1 Existing Account #2

Geographic Area Based Structure

Vice-President Marketing

Regional Sales Manager

Regional Sales Manager

District Sales Manager

District Sales Manager

District Sales Manager

District Sales Manager

Sales Rep

Sales Rep

Sales Rep

Sales Rep

Lucknow Allahabad

Mumbai

Indore

Recruitment and Selection of Sales Personnel

Careful recruitment and selection of sales personnel is vital Wrong recruitment may lead to problems like: Loss of sales

Tarnished image of the company

High attrition rate and economic loss

Contributions a Sales Person Makes to the organisation

Organisation Perspective Spokes Person Inventory Maintenance Revenue Generation Building Relationship

Customer Perspective Information Solution for Problems After Sales Services Facilitating

To decide what type of applicant is needed, the Manager should first outline the duties the person will Perform.
The sales manager must have a clear picture of the job Requirements before beginning the recruitment.

Job may involve:

Hunting Prospects; locating intermediaries, prospective customers Obtaining and disseminating information Selling the Product / Services; maintaining profitability Inventory turnover

Profit Built Up; revenue generation, ensuring entire Product line / mix are sold, receivables are managed within a time limit.

Minimizing operational expenses; covering territory in Cost effective way.

Information Flow; SWOT, Trends, Feedback, Complaints, Forecasts

Execution of Organisation Policies; discount, distribution, Pricing, promotions

Recruitment Process
After understanding the requirements of a sales job

Analysis and assessment of all activities JOB ANALYSIS should be done In order to find out facts like;
1. What a sales person is supposed to do specifically 2. What system he follows: Sell across the counter Mode to reach customers Demonstrate Order Taking only Developing new territory or assume established one

3. His work place, working hours, day to day activities 4. Kind of people he would be associated and do Business with JOB DESCRIPTION: Organized Factual statement that Covers a. Job Title b. Job Objective c. Position and authority of the job d. Accountability and responsibility in terms of reporting relationship like Accountable to ASM and responsible for Sales in given Territory Handling dealers network Collections

e. Working hours fixed / flexible f. Mode of traveling (local / upcountry) g. Pay package, perks and incentives h. Performance standards

JOB SPECIFICATION: specific qualifications and Characteristics required in the sales person to perform The job. Example: Job of Training Dealers

A Sales Persons Job Specification could include: 1. Academic Qualifications / Technical Qualification 2. Social Characteristics Age, Family Background, Marital Status, Region he belongs to 3. Experience, Positions handled, Staff / Team Handled

4. Personality Traits- Assertive, outgoing, friendly The company should look at internal as well as external Sources for recruiting a person.

Various sources for searching applicants 1. Candidates within the company 2. Competitors Staff; fully trained staff It is attractive they may look for promotion higher salary or conducive work culture Carry a database of their own customers 3. Campus Selections 4. Release of an Advertisements Must be specific Avoid attracting unwanted applications 5. Self Approaches; should be kept in databank and referred at the time of recruitment

6. Placement Agencies They maintain a database of people with different Qualifications, experiences and traits Agencies work mainly on commission basis in varied forms They may undertake the primary work of Issuing / releasing advertisement Screening applications Holding preliminary round of interviews The process saves time and effort.

Compensation Plans
Sensitive decision to take

Manager has to strike a balance between Adequate payment to match the performance;

Sales person is not de-motivated

AND

Keep expenses within specified budget

Profits of the company are kept to the maximum

What is Compensation Plan Monetary as well as non-monetary expenses incurred

Monetary like Salary and Wages; contractual

Non-monetary like welfare expenses; non-contractual

Sales Manager has to plan the levels of compensation for each position in consultation with the HR department

Compensation has Motivational Roles Providing payments for acceptable standard of living Co-relating performance and rewards to keep productivity high and consistent It could be an aid to effective motivation but not the entire motivational program. Motivation has other components also like; Work Culture Policies Working Conditions Growth prospects

Objectives of an effective Compensation Plan from A Sales Managers Perspective

1. Attracting best talents and retaining them 2. Within cost and budget
3. Utilisation of team at optimum cost

4. Accounting for individual differences, attitudes and capacities

5. Considering size and working conditions of each Sales Territory 6. Keeping pace with industry norms Considering salaries of other departments

What a Sales person should look for in a compensation Plan; 1. Meet acceptable living standard

2. Consistency in the income

3. Performance linked incentives 4. Simple and Comprehensive Plan; take home, Deductions, calculations of incentives 5. Timely Payments 6. Scope for future growth

Preparing a Compensation Plan Things to be kept in mind 1. Simplicity; easily understood 2. Adequacy; to maintain a decent standard of living

3. Flexibility; to cater to different market conditions, territories & competition

4. Fairness; no bias,

5. Maintain Economy
6. Helpful in attaining organisational and individual goals

Preparing a Compensation Plan 1. Define Sales Job; Job Description

2. Consider Companies General Compensation Structure;

Job Evaluation: orderly approach to judge relative importance of the job. Focus is on the activities involved in the job, without Considering the ability or personality Purpose is to arrive at fair compensation relationships among jobs

Methods of Job Evaluation

a. Simple ranking based on job description and their worth Worth: total expense to be incurred for hiring or appointing the person and the revenues that an individual can generate b. Classification of Grading; individual jobs are compared with the help of assigning grades

Jobs are segregated into different classes according to Job responsibilities, skills required, duties, reporting Relationships, working conditions

All jobs within a grade are treated alike with respect to base compensation c. Point System: Involves defining and combining Factors common to most jobs and points are given. Mental & Physical Skills, minimum level of education, Supervision, personality traits etc 3. Consider Compensation standards in the Industry 4. Provide for various compensation elements

5. Special Company needs and problems related to gaining revenue

6. Consult The present sales force 7. Bring out tentative plan in writing 8. Revise the plan 9. Implement the Plan

Types of Compensation Plans

Four Basic Elements of Compensation are: Fixed Elements Variable Elements

Fringe Benefits
Reimbursement These can be combined to arrive at various unique Compensation plans

Types of Compensation Plan Straight Salary Plan

Assumption is; the executive will achieve the expected Volumes of sales within the specified period.
Specified period could be different for different products. The executive is paid irrespective of sales volume he achieves The plan could include the Basic Salary, HRA, TA/DA, Conveyance etc. in addition to statutory Payments

Merits: A. Strong Financial Control: Field work & Selling activities can be flexibly Adjusted without affecting the sales personnels Monetary gains B. Security to Sales Personnel: Safety against uncertainties like, Seasonal Fluctuations in sales

Change in demand & Supply equations

Other measures like; Advertising drive, events, change in price

C. Simple to administer Used for industrial sales personnel, those working in Distribution network, as delivery personnel. Demerits

A. Lack of incentives; leads to general performance

B. Common yardstick is used for compensating all; no considerations for different situations C. May lead to under or over compensation D. Inflexible to adjust to changing conditions

Straight Commission Plan No permanent liability of recurring salary expense. Sales personnel get paid for the sales volume that he achieves Different organisations use different types of commission Plans like; Per unit, As a percentage to sales, Differential Rates progressive or regressive changes in commission

Merits: A. Performance oriented; payments made only if sales are generated

Low performers are not over compensated.

B. Incentives and Motivation are in built;

C. Means of Cost Control;

Liability of paying occurs only if sales are generated Direct selling expenses fluctuate with sales volume. D. Freedom of Operations; sales person is not subjected to any extra pressure of annual increments and reviews. Sales personnel can decide his own salary

Demerits: A. Uncertainty;

B. Lack of Control over operations for a company

Sales person is his own boss & not liable to fall in the System of reporting; submitting reports; time frames. Difficult for Sales Manager to control and manage. C. Market prices can be dropped to sell higher quantities. D. Difficult to fix up the commissions; Differences in potential markets, brand acceptance, Selling efforts

E. Rate of attrition may be high Loyalty of sales person remains only till he gets lucrative business F. Easy to sell products may be pushed other could be neglected G. Sales person may use pressure tactics to sell; leads to lost goodwill H. Sales Persons efficiency may drop due to uncertainty of income.

Determining Commission Base Selection of the base could be done keeping in mind

Selling Policies; Needs & Problems of the company like

Obtaining sales volume is main concern Collection on sales Excess of cancellations; commission could be fixed on payments billing or shipments.

Combination Plan
Objective is to employ a team that is secures as well As satisfied The incentives may start from unit ONE or from a cut off Point Merits: A. Security and Motivation for sales personnel B. Management has better control on sales activities C. More loyal and dedicated sales executives

Demerit:

Administrative costs increase

BONUS These are different from commissions

Could be of two types:

Statutory; On sales Plan; Paid for accomplishing a specific sales task; a fixed amount of % A Sales Quota

Performing certain promotional activities

Successfully carrying out assigned tasks

Sales Bonuses are not used alone; a part of main compensation plan Bonus conditions could be made clear at the time of fixing up the compensation plan FRINGE BENEFITS

These Benrfits do not have any direct relationship to the job performance
Some of the benefits are statutory

Pension Plans, Fund Deductions, Medical Benefits

Accident Covers

Companies also provide these benefits for; Being competitive in the industry

To retain talent
Basically provide to fulfill safety and security needs

Help to prevent job-dissatisfaction

Different Fringe Benefits based on Time; Holidays, Vacations, Leaves Insurances Laundry, Lunch, Education for kids, Training etc.

Motivating the Sales Staff

Basic Responsibility High productivity of sales force does not come naturally; very few are self motivated.

Normally each individual is motivated at a given point; this should be recognised by the sales manager.
Identifying motivating factors which act as a catalyst to act, is crucial.

Isolating the factors that are exclusive for each individual as well as the group

Certain Factors which emphasize the need for Motivation are

Inherent Nature of the Job: Sales job involves UPS and DOWNS & series of experiences that lead to EXHILARATION or DEPRESSION long working hours, interaction with different types of customers , turn down, being away from home

 Role Conflict: Sales Executive has interaction with Sales Management, Distribution Network, Customers, Peers Each Group has separate set of expectations While satisfying these an individual faces role conflicts like Conflict of Identification: arises out of being members of Multiple groups. Advocacy Conflict: customers position as well that of organisation

Tendency towards apathy : Monotonous job leads to lost interest & enthusiasm

Gradually sale calls are degenerated into routine order taking

In order to find out what dissatisfies or to identify motivating factors a sales manager can take the help of Various Motivation Theories

MASLOWS THEORY OF NEED HIERARCHY

Humans are wanting beings. Their needs are unlimited as soon as one set of needs are satisfied Another set appears. A satisfied need is no more a motivator, and looses its Strength or power as a motivator. A manager can harmonise the individual goals with that of the organisation.

CREATIVITY PROMOTIONS GROWTH IDENTIFICATION IN THE TEAM

JOB SECURITY JOB, COMPENSATION

HERZBERGS TWO-FACTOR THEORY Motivation Hygiene theory

Factors that lead to motivation and job satisfaction are not The same as those leading to apathy and job dissatisfaction
Job satisfaction is not opposite to job dissatisfaction Two separate groups of needs are related to Job satisfaction Avoiding job dissatisfaction

Hygiene Factors Interpersonal relationships Work conditions Company policies Job security Salary Personal life
Motivating Factors Achievement Work itself Recognition Growth Potential Responsibility Promotions

Absence

Job Dissatisfaction
Presence

Motivation, Opportunity

Fair days work

Motivation

Job Satisfaction

ACHIEVEMENT MOTIVATION THEORY All individuals are self motivated but extent of Need achievement feeling varies If a person spends considerable time thinking about doing His job better, he would have need for achievement

Individuals with high need for achievement possess certain Traits:

They like problem solving

Take personal responsibility for finding solutions

Want continuous feedback on how they are doing

EXPECTANCY MODEL

Extent to which an individual will act in a certain way depends upon the strength of an expectation that The act will give desired outcome

Strength of motivation To act in a particular Manner

Directly proportionate

Strength of Expected outcome

Individual needs

Individual Efforts

Perceived Effort- Performance Perceived Reward- Punishment

Performance

Organisational Rewards/ Punishments

A sales person needs counseling to view their own Competencies realistically.

Sales Managers Tools for Motivation Sales Manager can use many systems and methods To motivate his field staff He can use financial as well as non-financial tools to Keep motivation high. He can motivate his team at individual as well as group level Individual Level Motivation

Personal Counseling
Correspondence: congratulatory letters, mementoes Personal Rewards: monetary

Group Level Contests

Sales Meetings, Seminars

In house publications

Sales Territories
Taking the cues from need for fragmentation Total market place is divided into smaller manageable And commercially viable units.

A sales territory is comparatively homogeneous in a heterogeneous market.

A sales territory may represent:

Geographical area
Customer Type Industry Type

Companies normally emphasise on geographical division as it is easy to divide and administer, no overlapping

Companies that may ignore geographical division could be From: Highly technical products; require specialised persons New or innovative products

Sales territories are set up mainly to facilitate planning & Control of sales operations

Need for dividing territories 1. Break up of companies objectives Budget, Activities, Full focus and due attention 2. Efficient Market Coverage All perspective areas, Sufficient Time, Effort & attention. Allocation of required adequate selling effort

3. Cost Effectiveness
While assigning a territory, service requirement and cost of providing the service should match profitably

A good territory design combined with careful assignment of salesperson will lead to low selling expense and high volume of sales. Too large territory: High expense, high time spent on road.
4. Helpful in Evaluating Sales Personnel:

Volumes of sales and problems vary largely in different Market areas

Management can evaluate each individuals performance against sales and cost responsibility 5. Sales Force Morale:

Well designed territory would be; a. Conveniently covered by sales person b. He would have reasonable workload c. Less conflict on duplicity of calls d. Sense of ownership 6. Better customer relationship A sales person can meet the customer at regular interval For orders To disseminate policies, information

Handle complaints faster and solve them

Procedure for setting up a sales territory 1. Selecting the basis for territory Geographic: Region, zone, cities, districts etc. Industry: for office supplies, maintenance etc. Customer: Institutional, Consumer 2. Determining Sales Potential: Maximum possible sales opportunities open to a specific company during stated future period. Combine geographical unit with potentials to justify a particular territory

3. Shaping up a tentative territories: Assuming that all sales persons are of average ability; number of territories are decided. How the territory could be covered during a given Time period.

4. Adjustment for difference in coverage difficulty:

Each territory though may be similar in potential would require different selling effort. Adjustments could be made in size of the territory & number of sales force assigned. Things to be kept in mind for adjustments Number and location of customers & prospects Estimated average time required for each sales call Time required in traveling from one customer to another; density Call frequency Number of calls possible during a day, in a week or A month.

What factors effect the global sales organizations?

1) Developed infrastructures
2) Education level of the consumers 3) How affluent is the population 4) Ethnic Composition 5) Religious Orientation 6) Social Class Environment 7) Education

8) Gender Bias

9) Differences in negotiation styles

10) Differences in decision making

11) Status and Protocol

12) Social aspects of international negotiations

13) Perceptions of time 14) Personal Relationships

Managers Decision Making Styles in Different Countries

United States
Delegation of Authority Yes. Believed to be essential in increasing subordinates capabilities

Japan

Mexico
No. Authoritarian style reflects mgrs individualism; subordinate development is not mgrs function No. May indicate to subordinates that mgr is unsure of own job; maintaining social distance is important Low. Plans appear to restrict mgrs personal expression

Middle East
No. Authority rests at the top; delegation depends on personal relationship

Participation in Decision Making

Importance of Planning

Emphasis in Communication Style Commitment to Firms Objectives

Yes. Subordinate development is primary mgt. Function; worker suggest-ions are sought and accepted Yes. Subordinates Yes. Subordinates contribute to decisions; participate in and believed to improve initiate decisions; motivation and per consensus of all employees is sought High. Problem solving High. Planning is is valued, planning is a valued, more emphasis tool for decision on long-term planning making emphasis on short-term planning Direct and frank Polite, respectful; patience in difficult topics Doing well for the firm is an essential component of career success

No. Chain of command is rigidly followed

Low. Ad hoc planning

Maintenance of pleasant relationships; avoidance of difficult issues Firms and mgrs goals Career success is are one and the same; based on personal mgr identifies with relations with firm superiors

Tone depends on position, power, or family influence Success dependent on contacts and being of the right social position

Selling in France

Dress conservatively, except in the south where more casual clothes are worn.
Do not refer to people by their first names; the French are formal with strangers.

Selling in Germany

Be especially punctual. An American businessperson invited to someones home should present flowers, preferably unwrapped, to the hostess. During introductions, greet women first and wait until they extend their hands before extending yours.

Selling in Italy

Whether you dress conservatively or go native in a Giogio Armani suit, keep in mind that Italian businesspeople are style conscious. Make appointments well in advance. Prepare for and be patient with Italian bureaucracies.

Selling in the United Kingdom

Toasts are often given at formal dinners.

Business entertaining is done more often at lunch than at breakfast or dinner.

Selling in Saudi Arabia

An American women should wait for a man to extend his hand before offering hers. When a Saudi offers refreshment, accept; declining it is an insult.

Selling in Japan

Dont imitate Japanese bowing customs unless you understand them thoroughly--who bows to whom, how many times, and when.
Its a complicated ritual. Carry many business cards, present them with both hands so your name can be easily read, and hand them to others in descending rank. Examine and acknowledge Japanese business cards handed to you. Expect Japanese business executives to take time making decisions and to work through all the details before making a commitment.

THANK YOU VERY MUCH FOR PATIENTLY CARRYING THROUGH THE ENTIRE SEMESTER ALL THE BEST

Selling Theories

Stimulus-Response Theory
Mental States Theory

Need Satisfaction Theory

Problem-Solution Theory

Stimulus-Response Theory

States: When a subject is exposed to a given stimulus, he or she will respond in a certain manner When reinforced by multiple exposures, the response becomes virtually automatic Good for canned presentations Best used in simple or straightforward situations Low priced items Limited time Unsophisticated salespeople

Stimulus-Response Theory

Assumes the prospects needs can be stimulated by exposure to the product The salesperson does not know what the prospects needs are All aspects of the product are covered and then the prospect is asked to buy Everyone is told the same thing Problems with this method:

1) Talks about features and not benefits 2) Uses the same pitch or canned presentation 3) Assumes the salesperson is in total control 4) Limited prospect participation

Mental States Theory

A prospects mind goes through a logical sequence of states in any buying situation

Awareness Interest Desire Action

Good for canned presentations Allows for a logical sequence of events (know when to move from one stage to the next)

Mental States Theory

Mental States Theory/ Formula Method AIDA approach

A (Attention) and I (Interest)- Can the presentation to get quick attention and interest so the prospect will listen D (Desire)- Translates features into benefits A (Action)- used to make the sale

Need Satisfaction Theory

People buy products and services to solve problems/meet needs Typically has three parts

Determining the prospects needs Getting the prospects agreement on the need Offering a solution to that need

Allows the prospect to be more involved in the presentation Focuses on the needs of the prospect Two-way communication Need experienced salespeople for this approach

Need Satisfaction Theory

The salesperson will usually start with a probe

What are you looking for? What type of computing needs does you company have?

Listen to the prospect then show how the product or service will satisfy the prospects needs. Salesperson may feel less control using this method More challenging and more experience is needed

Problem-Solution Theory

Combination of need satisfaction theory and the scientific approach to problem solving

1) Helps the prospect identify the problem or needs 2) Help suggest possible alternative solutions 3) Explores the advantages and disadvantages of each alternative 4) Identifies the best solution

Customer oriented Helps build strong and close professional relationships with the prospects Time and talent intensive

What is the difference in a canned vs. a flexible presentation?

Summary (What makes a Good Sales Presentation)

Sales Techniques

Product Knowledge

Operational Knowledge

Customer Service

Summary (What makes a Good Sales Presentation)

Sales Techniques

Product Knowledge

Are you using the right presentation style?

Did you built trust?

Did your sales technique built value for the customer?

Operational Knowledge

Customer Service

Did features get explained as benefits?

Summary (What makes a Good Sales Presentation)

Do you know about your product? Sales Techniques Product Knowledge

Operational Knowledge

Customer Service

Summary (What makes a Good Sales Presentation)

Sales Techniques

Product Knowledge

Do you know how to complete the sale from an operational view? Paperwork Delivery Legalities

Operational Knowledge

Customer Service

Summary (What makes a Good Sales Presentation)

Sales Techniques

Product Knowledge

Did you treat the customer in a way that would gain their respect? Did you provide the level of service needed?

Operational Knowledge

Customer Service