Presented by : Obed Fuk Liang

(Indonesia’s Youngest Future Business Leader – SWA 2010)

Personnel Selling Strategies

Contents

Conclusions

How to Apply ?

How to Design ?

The Benefits of Personnel Selling

The Concepts of Personnel Selling

The Environment

Formulation of a Sales ProgramMarketing Strategy

Sales Planning• Demand Forecast•Quotas and budgets

Sales Planning• Demand Forecast•Quotas and budgets

Deployment• Territory Design •Routing

Deployment• Territory Design •Routing

Sales Management Activities

Personnel Selling Defined

“Direct face-to-face communication between

sellers and potential buyers.”

Emphasis Should be on Long-Term

Relationship Building

“Sales people and the selling function are key success factors in

modern organizations.”

Sales person has to generate revenue for the company.

“CHANGE is the Central

Theme in Sales Management

Today”

INNOVATION

TECHNOLOGY

LEADERSHIP

SALES SALES MANAGEMENT MANAGEMENT

TODAYTODAY

The Importance of Integrating Sales with Other Business Functions

“Integrating sales with other organizational functions is critical to

firm success”(HR Chally Group, 2007)

SALESSALES

HRHR

ManufacturingManufacturing

MarketingMarketing

ITIT

Source HR Chally Group (2007), The Chally World Class Excellence Research Report: The Route to the Summit Dayton, OH: HR Chally Group

The Importance of Integrating Sales with Other Business Functions

The Concepts of Personnel Selling

The Sales Person has first experience with customers and posses variable knowledge that would be useful to the company.

Market Today

Customer Relationship Management is important in business.

What personal characteristics and

abilities are related to successful sales performance ?

215 Sales Manager

Variety of Industry To rate from

60 key SF

TOP 20 key SF

By Greg W. Marshall, Daniel J. Goebel and William C. Moncrief

Key Success Factor in Selling

Source Greg W. Marshall, Daniel J. Goebel, and William C. Moncrief, “Hiring for Success at the Buyer-Seller Interface, “ Journal of Business Research 56 (2003), pp. 247-55. Copyright 2003, reprinted with permission from Elsevier.

Sales Managers’ importance ratings of success factors for professional sales people

Mean S.D.

Listening skills 6.502 0.683

Follow up skills 6.358 0.772

Ability to adapt sales style from situation to situation

6.321 0.687

Tenacity-sticking with a task 6.107 0.924

Well organized 6.084 0.889

Verbal communication skills 6.047 0.808

Proficiency in interacting with people at all levels of a customer’s organization

6.000 0.991

Stages of the Selling Process

4. Presenting the Sales Message

3. Qualifying the Prospect

2. Opening the Relationship

1. Prospecting for customer

6. Servicing the Account

5. Closing the Sales

Source: F. Robert Dwyer and John F. Tanner, Business Marketing: Connecting Strategy, Relationships, and Learning (New York: McGraw Hil/Irwin, 2008)

The Customer’s Perspective

Sales Force as . . . 1.Be personally accountable for our

desired results2.Understand our business3.Be on our side4.Design the right applications5.Be easily accessible6.Solve our problems7.Be creative in responding to our need

Customer Orientation

Customer Centric

Market Orientation

The Actions taken by a firm that is market oriented would be focused on aligning all the various organizational processes and functions toward maximizing the firm’s success in the competitive market place.

The Successful market orientation requires that the firm placed the customer in the center of all strategic decisions and firm activities.

They have the customer at the center of their BUSINESS MODEL

CRM is a comprehensive business model for increasing revenues and profits by focusing on customers

CRM as “a journey of strategic, process, organizational, and technical change where by a company seeks to better manage its enterprise around customer behaviors.” (Price Waterhouse

Coopers)

Acquisition of the right customers, based on known or learned characteristics, which drive growth and increased margins.

The ability to retain loyal and profitable customers and channels to grow the business profitably

Increased individual customer margins, while offering the right products at the right time

The TOP Three of CRM Objectives

Customer Retention

CustomerAcquisition

CustomerProfitability

CRM Process Cycle

CustomerInteraction

Analysis &Refinement

KnowledgeDiscovery

Market Planning

Learning

Action

Source: Ronald S. Swift, Accelerating Customer Relationship: Using CRM and Relationship Technologies (Upper Saddle River, NJ: Prentice Hall PTR, 2001, p.40.

The advantages of CRM

1. Reduce advertising/promotional costs

2. Make it easier to target specific customers by focusing on their need

3. Make easier to track the effectiveness of a given promotional campaign

4. Allows organizations to compete for customers based on service, not prices

5. Prevents over spending on low-value clients or understanding on high-value ones.

6. Speed the time it takes to develop and market product

7. Improves use of the customer channel

CRM: The Failures Are Your Fault

1. Lack of FOCUS

2. No Change Management Initiative in Place

3. Minimal buy-in

4. Business unit are SILOS

5. Complicated procedures

6. Poor Training

Source: Kathleen Cholewka, “CRM: The Failures Are Your Fault,” Sales and Marketing Management 154 (January 2002), pp.23-24

Advantages of Personnel Selling

Disadvantages of Personnel Selling

1. More Persuasive Small number of customer

2. More detail and complex information than can be transmitted

More costly per person reached

3. Open to price negotiation

Needed the negotiation skills

CONCLUSIONS

The key success factors needed in personnel selling all point to professionalism, strong skills, and broad and deep content knowledge that allow sales person to maximize his/her performance and thus rewards.It is especially interesting to examine the sales activities performed by sales people today. Quite a few new activities have been added in recent years, DRIVEN LARGELY by TECHNOLOGY and the move from transactional to relationship selling approaches.

“The cost five times as much to attract

new customers than

to maintain

existing ones.”

Source :

-Johnston I Marshall (2009), “Sales Force Management” : Ninth Edition, Churchill/Ford/Walker’s

-Matthew Schwartz (2006), “Fundamentals of Sales Management for the Appointed Sales Manager “

-Renie McClay (2010), “Fortify your Sales Force – Leading and Training Exceptional Teams “

© Giang Nam™© Giang Nam™

March 31, 2011 - Aryaduta Hotel