1 intro sales management

8/8/2019 1 Intro Sales Management

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What isWhat is

MarketingMarketing


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The official definition

Marketing is an organizational functionand

a set of processesfor creating, communicating, and delivering

value to customersand

for managing customer relationships in ways thatbenefit the organization and its stakeholders

American Marketing Association Definition


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Marketing Components

A Philosophy

An Attitude

A Perspective

AManagement

Orientation

Set ofActivities,

including:Products

Pricing

PromotionDistribution


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The process through which

VALUE

is exchanged

Marketing at its very core is

The process through which

VALUE

is exchanged

Marketing at its very core is


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1. Monetary costsAcquisition CostUsage CostMaintenance CostDisposal Cost

2. Time costs

AcquisitionUsage CostMaintenance CostDisposal Cost

3. Energy Cost

1. Product benefits

PerformanceDurabilityReliabilityEase of use

2. Service benefits

On time deliveryResponsiveness to problemsTechnical support qualityAvailability of support

3. Image benefitsPsychological needsPersonality enhancementreinforcement

Value CreationPerceived Benefits Perceived Costs

Total customerbenefit

Total customercost

Total CustomerVALUE


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What is Perceived Customer Value?

Product valueProduct value

Services valueServices value

Personnel valuePersonnel value

Image valueImage value

Totalcustomer

benefit

Totalcustomer

benefit

Monetary costMonetary cost

Time costTime cost

Energy costEnergy cost

Psychic costPsychic cost

Totalcustomer

cost

Totalcustomer

cost

Customerdelivered

value


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WHAT IS MARKETING

ExchangeRelationship

VALUE

Buyer Seller


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Customer value and beneficial relationships are the

center

ExchangeExchange

A BA B

Delivering

Value

Communicating

Value

CreatingValue


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Observations

The central role of marketing in the firm is to create value for itschosen customers (in a market driven strategy). Having createdthe value for its customers, the fi rm is then entitled to capture aportion of it through pricing. To remain a viable concern, the firm

must sustain this process of creating and capturing value overtime

In a market driving strategy, you need the product first

A marketing strategy involves two major activities:1. Selecting a target market and determining the desiredpositioning of the product in the customers minds2. Specifying the plan for the marketing activities toachieve the desired positioning

Marketing Analysis (The 5Cs)

Customers

Company Competitors

Collaborators

Context

MarketSegmentation

TargetMarketSelection

Product andServicePositioning

Creating

Value

CapturingValue

SustainingValue

Product& Service

Place/Channels Promotion

Marketing Mix (The 4 Ps)

Pricing

CustomerAcquisition

CustomerRetention

Profits

Company Competitors ContextCompany Competitors

Collaborators

ContextCompany Competitors


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Company

Internal Analysis. Company Strengths & Weaknesses, financialposition

External Analysis. Industry & General Trends

Competitors

Both current and potential competitors need to be identified.Competitors strengths, weaknesses, reactions, objectives, andstrategies need to be assessed. Landscape and barriers to entryalso need to be evaluated

CollaboratorsDownstream trade and upstream suppliers are important partnersin the marketing system and their positions and goals need to beassessed. Value chain analysis (whoa has the power?), buyerselection, supplier strategy, etc.

ContextTechnology, culture, politics, regulation, law, and social norms arenot fixed features of the marketing landscape, but factors toconsider and monitor for signs of disruption

Customers (see also flow chart in promotion)Effective marketing require in depth understanding of customerspurchase and usage patterns. Areas to consider are: The Decision Making Unit

Who is involved in the process? What roles does each play? (1) Initiator, (2) Decider, (3)

Influencer, (4) Purchaser, (5) User The Decision Making Process

Is there search for information? How? What criteria are used to evaluate alternatives? How important are the various attributes? How did DMU member interact?

Other considerations Where do customers wish to buy? How is the product to be used? How frequently will it be used?

How Important is the problem it resolves?

Marketing Analysis (The 5Cs)

Customers

Company Competitors

Collaborators

Context

MarketSegmentation

TargetMarketSelection

Product andServicePositioning

CreatingValue

CapturingValue

Sustaining

Value

Product& Service

Place/Channels Promotion

Marketing Mix (The 4 Ps)

Pricing

CustomerAcquisition

CustomerRetention

Profits

Company Competitors ContextCompany Competitors

Collaborators

ContextCompany Competitors


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The Essence of Marketing

The customer first , last

and always !


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TheMarketing Mix

Four marketing activities

ProductProduct

PlacePlace

PromotionPromotion

PricingPricing

TargetTarget

MarketMarket


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Developing Marketing Mixes forTarget Markets

Place

PromotionPrice

Product

C


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Salesmanagement

Salesmanagement

Planning MotivatingBudgeting CompensatingRecruiting and selecting Designing territoriesTraining Evaluating performance

Planning MotivatingBudgeting CompensatingRecruiting and selecting Designing territoriesTraining Evaluating performance

Products Prices

Advertising Public

relations

Personal

selling

Sales

promotion

Promotion Distribution

Marketingmix


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Marketing Elements

Product

Price

Place

Promotion

Advertising

Public Relations

Personal Selling

Sales Promotion


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Personal Selling


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Personal selling is usually anecessity for

complex products,high-involvement buyingsituations,

andtransactions involving trade-ins.


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High Pressure Selling trying every means to get theprospect to buy, regardless of

whether it is in the prospects bestinterest.

This in not Selling - The pushingsomeones something that they

dont want, dont need,

and certainly cant afford.

Old Attitude towards SellingOld Attitude towards Selling


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To

Sales Management Trends

From

Transactions Relationships

Local Global

Management Leadership

Individuals Teams

Sales Volume Sales Productivity


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IndustrialRevolution

Post-IndustrialRevolution

War andDepression

ModernEra

1800s1800s 1900s1900s 20002000ss

Evolution of Personal Selling

Selling functionbecame more

structured

Peddlers selling doorto door . . . servedas intermediaries

Business organizationsemployed salespeople

Selling functionbecame moreprofessional

As we begin the 21st century, selling continues to develop,becoming more professional and more relational


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The process of:Developing customer relationships,

Discovering customer needs,Matching appropriate products withthese needs, and communicating

benefits.


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Modern Selling Philosophy

Based on trust and mutual agreement

Customer-driven

Act as if on customers payroll

After-sales service is key

Professionalism and integrity are essential


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Salesperson focuses on developing atrusting partnership in which the

salesperson seeks to provide long-term

customer satisfaction by listening,

gathering information, educating, andadding value for the customer.

Relationship SellingRelationship Selling


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Transaction- vs. Relationship

Focused

Transaction-Focused

Short term thinking

Making the sale haspriority over most

other considerations

Interaction between

buyer and seller is

competitive

Salesperson is self-

interest oriented

Relationship-Focused

Long term thinking

Developing therelationship takes priority

over getting the sale

Interaction between

buyer and seller is

collaborative.

Salesperson is customer-

oriented


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The Sales Process: Selling

FoundationsIn order to be successful in todays global business

environment, salespeople must have a solid

relationship building foundation. They must:

Possess Excellent Communication SkillsPossess Excellent Communication Skills

Understand BuyerBehaviorUnderstand BuyerBehavior

Behave EthicallyBehave Ethically

Be TrustworthyBe Trustworthy


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Adding Value through Follow-up,Self-leadership, and Teamwork

The Sales Process

Prospecting

Preapproach Presentation Planning

Approaching the Customer

Sales Presentation Delivery

Earning Customer Commitment

Developing

CustomerRelationships

Initiating


Enhancing



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What buyers want from

salespeople Knowledge

Empathy

Organization

Quick turnaround

Follow-through

Solutions

Punctuality

Hard work

Energy

Honesty


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W

hat buyers DONT want Lack of preparation

Lack of knowledge

Aggressiveness

Lack of dependability

Poor follow-through

Presumption

Walk-ins

Hot air

Problem avoidance

Lack of personal

respect


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Selling Philosophy of Good

Salespeople:

1. Selling is problem solving2. Selling is a caring activity

3. A customer is a person to be served, not aprospect to be sold

4. Treat people as human beings, not $ signs

5. Be customer driven, not product driven

6. Long-term success depends on customers

relations7. Selling is a win-win activity

8. Adherence to ethics, mutual trust, and honesty

is essential


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Argument-- Discussion

Throws Heat

Throws light

Stems from Ego and closed mind

Open mind

Exchange ofIgnorance

Exchange of Knowledge

Expression of temper

Expression of Logic

Tries to prove who is right

Tries to prove What is Right


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Course Introduction

The foundation of good selling is the desireto help people.

Professional salespeople typically viewthemselves as problem solvers and sellingas problem solving.

People tend to respond better to beingtreated as human beings than as dollarsigns.


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Course Introduction

A salesperson is no longer a vendor outto sell a product, but rather a consultantout to help their customers business.

There is no such thing as soft sell andhard sell, there is only smart sell andstupid sell.

Selling should be a friendly act. It issomething we do WITH and FOR people,not TO them.


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Course Introduction

Forget about the sales you hope to make andconcentrate on the service you want to render.The moment peoples attention is centered onservice to others, they become more dynamic,more forceful and harder to resist. How canyou resist someone who is trying to help yousolve a problem? . . . Start out each morningwith the thought, I want to help as many people

as possible today, instead of I want to make asmany sales as possible today . . .

The object of a salesperson is not to make

sales, but to make customers.

1 intro sales management

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