You Can SeLL

You Can SellAbhishek Banerjee

IIM-Calcutta

Learning Outcomes

Understand the roles and responsibilities of the Sales Managers.

Manage and enhance the sales force productivity and performance.

Plan and implement an effective sales strategy for their organizations.

Design and implement distribution channel strategy.

Manage the Channels efficiency and effectiveness; wholesaling, and retailing.

Some Ground Realities According to a research in US by ES Research Group

in 2008:20% of the sales reps bring in 80% of the business

(standard bell-shaped distribution of sales force performance).

Depending on the industry, 25 to 33% of sales people are unsuited for their job.

Only 37% of companies report forecast accuracy greater than 50%.

Only 43% of companies responding had a formal sales training program.

In 2006, 38.5% of salespeople missed their annual objective , and the turnover among salespeople last year was 40%.

Some more… 51% of sales organizations feel that marketing needs to

improve the quality and quantity of the leads they are providing to reps.

More than 80% of deals lost due either or both of: Ineffective qualification Lack of sales planning

Perception of sales being an “art” versus the “science”

Many sales leaders exhibit competency deficits

Quarter-by-quarter short-term pressures !

Most companies look at lagging measures of performance( e.g., YTD, MTD) than leading indicators (e.g., behavioral measures).

Why is a salesperson important?

Customers think that a salesperson is more important than product or price

Salespersons reduce perceived uncertainty in the buying situation for the customer.

Salespersons more important than their firms in sustaining customer relationships

What does a Salesperson do?

A Salesperson… Acquires new customersAcquires new customers

Builds relationship with customersBuilds relationship with customers Understands customer needs and fulfill themUnderstands customer needs and fulfill them

Provides information to customersProvides information to customers Builds firm and product loyaltyBuilds firm and product loyalty

Services the distribution channelServices the distribution channel Collects competitive intelligenceCollects competitive intelligence

Brings new product and service ideasBrings new product and service ideas Collects dues from customersCollects dues from customers Ensures customer satisfactionEnsures customer satisfaction

13%

29%16%

17%25%

SellingFace-to-Face

Service Calls

AdministrativeTasks

Waiting andTravel

How Salespeople spend their Time

Selling overthe phone

Selling Skills Communication Skills Selling Skills Listening Skills Negotiation Skills EQ Skills-Empathy Personality Aspects-Drive and

Motivation

Personal selling involves thetwo-way flow of communication

between a buyer and seller, often in a face-to-face

encounter, designed to influence a person’s or group’s purchase

decision.

Personal Selling

Transaction-Focused vs. Relationship Focused

Transaction-Focused Relationship-Focused• Short term thinking• Making the sale has

priority over most other considerations

• Interaction between buyer and seller is competitive

• Salesperson is self-interest oriented

• Long term thinking• Developing the

relationship takes priority over getting the sale

• Interaction between buyer and seller is collaborative.

• Salesperson is customer-oriented

Classification ofPersonal Selling Approaches

Stimulus Response Selling Mental States Selling Need Satisfaction Selling Problem Solving Selling

Stimulus Response Selling

Salesperson Provides

Stimuli

BuyerResponses

Sought

Continue Process until

Purchase Decision

Mental States Selling

Attention Interest Conviction Desire Action

Need Satisfaction Selling

Uncover and Confirm

Buyer Needs

Present Offering to

Satisfy Buyer Needs

Continue Selling until

Purchase Decision

Problem Solving Selling

DefineProblem

GenerateAlternativeSolutions

ContinueSelling

untilPurchaseDecision

EvaluateAlternativeSolutions

PERSONAL SELLING PROCESS

PRE-TRANSACTIONAL PHASE Prospecting, Qualifying, Precall

Planning TRANSACTIONAL PHASE

Approach, Needs Discovery, Presentation, Handling Objections, Closing

POST-TRANSACTIONAL PHASE Service and Follow-up


ProspectingExternal Sources

•Direct Inquiries•Referrals•Directories•Cold Canvassing

Internal Sources


QualifyingQualified candidates have a need,

have the authority to buy, and can afford to buy


Precall PlanningWhat do I want to accomplish?What do I know about the

prospect?Where can I find information?What am I going to say?

PERSONAL SELLING PROCESS Precall Planning--”What do I

want to accomplish?”determine information on

historical inventory levels.determine who is involved in the

purchasing decision.arrange for a follow-up meetingagreement to a trial-run

purchase


Precall Planning--”What do I know about the prospect?”Size of business/products

sold/markets servedKey personnelBuying routines/purchasing processPresent supplier(s)/volumes

purchasedFuture plans


Precall Planning--”Where can I find information?”Ask prospect directlyObserve business facilitiesAsk other company salespeopleAsk current customersAsk competitors


Precall Planning--”What am I going to say?”The Sales Mix Model

•Presentation Pace•Presentation Scope•Depth of Inquiry•Two-way Communication•Visual Aids


Precall Planning--”What am I going to say?”Implications for managers

•how to structure the presentation

•product, competitive, industry information

•increase rep confidence


The ApproachSecuring AppointmentsEstablishing Rapport


“Why is the approach important?”It can help capture the buyer’s

attentionIt can help to establish a

harmonious atmosphereIt serves as a good transition to the

presentationIt can help in need determination

PERSONAL SELLING PROCESS The Approach

Types of Approaches• Introductory Approach•Assessment Approach•Product Approach•Consumer Benefit Approach•Referral Approach

PERSONAL SELLING PROCESS Need Discovery

Ascertain buyer benefitsTypes of questions:

permission, fact finding, feeling finding, checking

PERSONAL SELLING PROCESS Presentation Types

CannedOrganizedCustomized


The PresentationFocus on Benefits, not just FeaturesKeep it SimpleTalk the Prospect’s LanguageStress ApplicationGet the Prospect Emotionally

InvolvedSeek Credibility


Overcoming Objections LSCPA Approach to Overcoming

Objections:Listen to the buyer’s feelingsShare the concerns without judgmentClarify the real issue with questionsProblem solve by presenting

options/solutionsAsk for action to determine commitment

PERSONAL SELLING PROCESS Closing

Alternative ChoiceSummary Close


Service and Follow-upEntering OrdersInstallation of Product(if reqd)Training (if reqd)Handling Billing Problems

Thank YOU.

You Can SeLL

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