Chapter 1
Introduction to
Sales Management
SALES MANAGEMENT:
SHARPING FUTURE SALES LEADERS
Tanner, Honeycutt, and Erffmeyer,
2e Wesser 2014.
Copyright © 2014 Wesser Publiser
Objectives
When you finish this chapter, you should understand
why:
Define strategy hierarchy and understand how
sales and marketing strategies affect overall
strategy.
Identify the different types of selling approaches
and selling process.
Describe the sales management process and
responsibilities and activities of sales managers
Copyright © 2013 Pearson Education
Selling career –Pros and Cons.
Sales starting salaries are
higher than other positions
Many CEOs get their start in
sales
Sales managers earn more
than managers in other areas More pressure, not within the
Sales jobs predicted to grow company but also from
at a faster rate than other outside.
professions Unfixed schedule
Easier to making the social ….
relationship than other
From Sales Rep to Sales Manager
Most successful sales reps are eventually
pressured to make the transition to sales
management.
Super salespeople maybe not a good Sales
manager
• “Manager of people”
• Coaching salespeople
• Developing strategies
• Delegating the responsibility
• Motivating…
• Convincing with other department in the company
• ….
Executive Ladder in Personal Selling
President
Vice president of sales
National sales manager
Regional/divisional sales manager
District sales manager
Staff assistants
Sales supervisor available for advice
and support at any
step along the ladder.
Salesperson
The Strategy Hierarchy
Corporate strategy
encompasses plans and goals
for the entire organization
Corporate
Strategy Marketing strategy
STP strategy.
Marketing mix…
Marketing
Strategy
sales strategy
Sales target for individuals
Sales Strategy
Sales structure, sales outsources
Sales process and approaches
How to motivate salespeople… …. 1-6
Marketing vs. Sales strategy
What markets do we serve Coaching salespeople so
Markets Coaching they can improve
with what products?
Developing strategies and
What types of
Deve delegating the
Relationships
relationships do we form
loping responsibility for
and with whom? implementation to others
What level of investment
Invest will be required, and how Figuring out how to
Moti
will we locate and allocate motivate people, some
ment vating who are older than you
the needed resources?
What are the detailed Convincing others that
Convin what is right for the sales
Objectives objectives and action force is right for their
plans? cing
departments, too
1-7
Selling Process vs. Selling Approach
Selling Approach Selling Process
Transactional Prospecting
Affiliative
Consultative
Closing Presenting
Enterprise
1-8
The Selling process: 8 Steps
It is more relevant is B2B
business sales where the
sales cycle might take a
longer duration to close.
In B2C the selling process
may be transient and shorter.
1-9
Selling process
Prospecting
A prospect is a MAD buyer
• the Money to spend
• the Authority to buy
• the Desire to buy it
Leads can be from
• Referrals from customers
• Referrals from internal company
sources
• Referrals from external agencies
• Published directories, Yellow Pages
• Networking by the Salesperson …
Selling process
Pre-approach
salespeople collect all the
information about the prospects:
their needs, financial and overall
situation.
Approach
A good approach makes a
favorable impression and
establishes some degree of
rapport between the salesperson
and the buyer.
Selling process
Need Identification
The stage in which the salesperson must
discover, clarify, and understand the buyer’s
needs.
The best way to uncover and understand needs
is by asking questions.
1
Questioning
2
Identification
3
Pre-commitment
Selling process
Presentation
Feature
Tips for effective
presentations
o Keep it simple Evidence
o Talk the prospects language
o Stress the application of the
product/service to the
prospects situation
Benefit
o Seek credibility.
FEBA
Agreement
Presentation of Product, Features, Benefits, Advantages
Product Features Benefits Advantages
Camera Telephoto lens Take pictures Able to capture
from longer images of animals distances.
or people from a distance.
Bicycle Attached water Can hold a water Don’t get dehydrated.
bottle holder bottle. Don’t have to stop
for water. Feel more refreshed.
Drill Press Multiple drill Can change bits Saves time.
bits attached without shutting Saves money. down
the machine.
Motor Oil Rust inhibitor Oil and engine Saves money.
have longer life.
Selling process
Handling Objections
Objections should be welcomed
because they indicate that the
prospect has some interest in the
proposition.
In responding to an objection…
• Listen to the buyer
• Clarify the objection
• Respect the buyer’s concern
• Respond to the objection
Selling process
Closing or Gaining Commitment
Asking the buyer to commit to some action that moves the
sale forward.
• The Assumptive Close
“Now what size do you want?”
• Special Offer Close
“If you buy this product today, we’ll
double the length of the warranty.”
• Summary Close
“You have agreed that our product is
the best on the market. Correct? Then
I suggest that you place your first
order today so we can have it to you
Selling process
Follow-Up
Reps must learn that the sale is not
over when they get the order.
It is much more expensive to
acquire new customers than it is to
retain existing customers.
Ensure that the customer is fully
satisfied
More and more products an be
sold during follow .
Selling Approaches
Finish sale as quickly and as easily as possible
Key to success is making as many calls as
Transactional possible to as many people as possible
For simple products without helps from
Salesperson.
Based on the friendship between the
salesperson and the individual buyer
Affiliative the buyer needs a significant amount of
expertise needed from the seller and trust is an
issue
1-19
Selling Approaches
Identify and solve a client’s problems
Consultative Also called needs-satisfaction selling or
problem/solution selling
Business-to-business (B2B) concept
Enterprise Based on not only person-to-person relationships
but on company-to-company relationships
Sales Manager’s responsibilities
Devise sales plan to meet strategic objectives
Plan Develop general strategies that specify sales
approach
Determine type of sales force
Organize Create hiring and training policies and strategies
Communicate and roll out the plan
Implement Create the right culture
Choose a compensation model
Sales and customer satisfaction
Monitor Salesperson recruitment, selection, training
Take corrective action as necessary
Sales Management
“I
“I don’t
don’t care
care how
how many
many
degrees
degrees you you have
have on
on the
the
wall,
wall, if
if you
you don’t
don’t know
know how
how
to
to sell,
sell, you’re
you’re probably
probably
going
going toto starve.”
starve.”
Heavyweight boxer George Forman’s
advice to his children
L.A. Times, pg. C2, Tuesday, March 25, 1997
Group Discussion ( Ex # 1)
1/ Which steps in the selling process is/ are the most
important in
Transactional selling approaches ?
Affiliative selling approaches?
Consultative selling approaches?
2/ in B2B selling process, which step may be the most
difficult ? Why?
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