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CHAPTER 1

Selling ASAP

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Target Company Marketing Scholarships (Juniors) Academics, extra-curricular service Resume, Cover Letter Deadline April 15

Marketing Student of the Year Seniors Resume, cover letter April 15 deadline

Competitive Awards

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1Others…

http://www.pafcolaboratory.com/

Jennifer Mele Contact

The U.S.G.S., Forest and Rangeland Ecosystem Science Center, Headquarters and Corvallis Research Group

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Last Time… Introduction Lecture

Questions on..Syllabus, Schedule?

TodayChapter One: Selling ASAPWe Will Break 10 minutes early Today

for Questions, Waitlist, Drop/Adds, etc.

Overview

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1 Introductory Lecture

Why Are We Here?Required Text and MaterialsClass Format and ScheduleOur PrinciplesSyllabus Details

“I studied the lives of great men and famous women, and I found that the men and women who got to the top

were those who did the jobs they had in hand, with everything they had of

energy and enthusiasm and hard work.”

Harry S. Truman

Selling ASAPSelling is being viewed today as an Art and a Science, with an emphasis on practicing

Agility to enhance Performance

Art and ScienceSelling involves the salesperson’s unique style (art) of applying a systematic process (science) to understanding customers’ needs and wants and matching the benefits of the salesperson’s

product or service to those desires

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1Agility

An agile salesperson is: One who is quick to see opportunities Clever in shortening sales cycles Able to meet customers’ needs faster Capable of creating flexible and customer-

focused values Quick at learning and unlearning

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1Performance

Salespeople must perform

Sales performance is measured in a multitude of ways

Selling requires a continuous emphasis on earning and maintaining long-term customer satisfaction…not just making quota

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1What is Professional Selling?

Professional selling is the interpersonal communication process in which a seller uncovers and satisfies the needs and wants of a prospect to the mutual, long-term benefit of both parties

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1Non-Manipulative Selling

Today’s skillful salespeople practice non-manipulative selling

Only after salespeople and customers reach mutual agreement about value does a sale occur

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1Building Relationships

Satisfied customers repeat their purchases because they are satisfied with the value of the relationship Taking care of existing customers

reduces sales cycle time and increases efficiency

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Thriving in a HighlyCompetitive Selling Environment

Salespeople must do their homework before meeting with prospects Study the market Study the prospects’ needs Put the customer first Engage in continuous learning and

professional development

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1Understanding the Customer

To motivate the prospect to buy a product or service salespeople must: Understand how their prospect’s mind

works Be able to uncover the prospect’s

hidden needs or wants

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1The Power of Influence

The power of influence rests in the skillful salesperson’s ability to: Provide continuous value to customers Engage in long-term relationships with

customers Adapt to changing needs and preferences

of customers

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1Apply What You Learn

Pay close attention to the way people interact with each other

Go shopping Pay particular attention to the many ways

salespeople attempt to persuade you to buy

Talk to others and listen to their opinions about selling

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1Components of ASAP

Understanding the Sales Environment

Implementing the Sales Process

Mastering Sales Agility

Figure 1.1Timely and Timeless Components of Selling ASAP

Preparation

Attention

Examination

Prescription

Conviction & Motivation

Completion & Partnering

Understanding Why Buyers Buy

Selling to Major Accounts

PART IIImplementing the Sales Process ASAP

PART IIIMastering Sales Agility ASAP

ManagingYourself & Your Time

Selling Ethically

Building Lifetime Value

The Changing World of Sales

PART IUnderstanding the Environment ASAP

Figure 1.2Taking a Lifetime View of Customers

Customer

• Age• Gender• Buying Styles• Buying Team• Segment

ProductHoldings

Contacts

Product Use

Events

Adapted from: Puckey, David (2000), “Modeling Customer Relationships,” Sequent Computer Systems Ltd. Sequent House, Weybridge Business Park, Addlestone Road, Weybridge, KT15, 2UF

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1Thoughtware

Thoughtware represents the thinking process salespeople use as they continuously learn about customersCustomers are often grouped by type of relationship Advantages

• Avoidance of unneeded duplication of effort• Knowledge of loyalty patterns • Identification of cross-sell and up-sell opportunities• Identification of significant events in the life of the customer

Figure 1.3Where Selling Fits in the Organization

Manpower Money Materials

Personnel Finance Manufacturing

Marketing

Sales

All OrganizationsPerform Selling Activities

“Nothing happens in the economy until someone sells something to

someone else.”

Arthur H. “Red” Motley

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1Steps of the Sales Process

Preparation

Attention

Examination

Prescription

Conviction & Motivation

Completion and Partnering

Figure 1.4A Customer-FocusedSelling Framework

Customer Behavior

SalespersonBehavior

Collaboration

InitialInquiry

Time toRespond

Sales Call Decision? Thinking Re-Initiate

Preparation Attention Examination Prescription Conviction Completion Partnering

•Promotion•Web Site•Personal Visits

•Service•Salesperson•Sales Organization

• Promotion• Web Site• Engineering• Finance• Accounting

Motivation

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Break

BA 491 Personal Selling

“Over 70% of new marketing graduates start their careers in sales.” Almost 50% of finance majors start in some type of sales career, and a growing number of other business majors

(e.g., accounting, management, management information systems) are moving towards

beginning their careers in sales.”

Dan Weilbaker (2001)

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Why Become aProfessional Salesperson?

Opportunity

Job Satisfaction

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1I3 Rationale

Independence

Income

Impact

© 2000 Northwestern Mutual Financial Network

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1Rewards of Selling

Intrinsic rewards Include the good feeling one gets from

helping a customer solve a problem

Extrinsic rewards Include pay and promotional

opportunities

Annual Income of Salespeopleand Sales Managers

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1Route to Management

Selling is an excellent route to management

Starting in sales can lead to many other career advancements

Zone Business Mgr.• Financial & HR

responsibility

Category Mgr.

• Customer category strategies• Data-base analysis

Category Analyst

Sales Associate

Human ResourcesDirector of Sales Finance Operations

Key Account Mgr.(5-8 per Area)

• HQ Account Ownership

Regional VP

President

Frito-LayNational HQ Sales

District Sales Leader(8-10 per zone)

• People Leadership- 15 salespersons

• Account relationships

Zone Sales Leader(4-8) per Area)

• 125 + employees

Figure 1.6 - Frito Lay Career Track

Figure 1.7Sales Opportunities

in Large Organizations

President

Vice Presidentof Marketing

Vice Presidentof Sales

NationalSales Manager

DivisionSales Manager

RegionalSales Manager

DistrictSales Manager

Sales Representative

Sales Trainee

Or here…

Or you mightend up here…

You may choose to stay here…

When you enter the workforce here…

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1The Face of Selling

Today’s sales force is made up of people of both genders and various ethnic origins

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1Inside and Outside Sales

At a broad level, professional selling can be divided into two types:Inside sales

• Telemarketing• Retail sales

Outside sales• Prospecting—finding potential

customers/clients

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1B2B and B2C

Business-to-Business (B2B) Selling The salesperson represents a company

and sells to other companies

Business-to-Consumer (B2C) Selling The salesperson sells directly to the

consumer

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1Classifications

Retail selling

Trade selling

Missionary selling

Technical selling

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Types of Selling:A Traditional Look

Responsive selling

Creative selling

Needs-based selling

Consultative-partner selling

Problem-solution selling

Customer-centered selling

Value-based selling

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1Success in Sales

Successful salespeople possess the following: Motivation to succeed Empathy Ego-drive Service motivation Conscientiousness Ego-strength

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Sales Productivity:A Measure of Success

Sales productivity is the ratio of sales revenues to what a salesperson inputs into making those sales

How salespeople use their time is critical to sales productivity success

The Essence of Selling ASAP

The right knowledge used the right way to improve the

salesperson’s ability to do the right things for customers

more expeditiously

Selling activities

41%

Service-related activities

15%

Non-selling activities

44%

Approximately 50% of time spent on account-specific sales and service focuses on current account development

20 % = new accounts 30 % = account maintenance

• Administrative tasks• Meetings• Travel time

• Face-to-face selling• Phone/other selling

Source: Adapted from information in the article: “Increase Your Sales without Adding Personnel” by Mike Rose, Director of Development, SalesLobby.com, Sales Compensation Consultant, Online Magazine, The Alexander Group, Inc., July 2000. http://www.saleslobby.com/ OnlineMagazine/0700/salescomp_MRose.asp

Figure 1.8How Salespeople Spend Their Time

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CRMCustomer Relationship Management

CRM is a strategy and process that utilizes technology To identify, attract, and retain customers To leverage the sales organization’s

relationships with its customers

The agile salesperson uses CRM technology to assist him in managing customer interactions and transactions

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Technology:Tools for the Salesperson

Central role Store and share information Communicate Collaborate Transact business

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The Customer-Focused Salesperson

Willing to learn

Manages what they learn

Realizes improved results

Achieves customer loyalty

BusinessPerspective

Finding/Obtaining/Keeping Customers

Efficiency

Competition

Communication

Why CRM Is ImportantTo Salespeople

Figure 1.9The Customer-Driven Selling Model

ResultsIncreased Customer Loyalty• Higher customer retention rates• Lower customer defections• Less need to find new customers

Improved Dialogue with Customers• Fewer customer complaints• Improved complaint resolution• Increased referrals

Improved Customer Lifetime Value• Up-selling and cross-selling with existing

customers yields more sales• Customer relationships become solidified as

value is improved• Customers spend a larger share of their

purchase dollar with one sales organization

CustomersDrive Markets

Core Value

• Optimize the salesperson/customer fit

KnowledgeManagement

Core Value

• A commitment to on-going learning

Customer RelationshipManagement (CRM)

Core Value

• A way to obtain, store, analyze, share and use knowledge

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1Questions

Key Elements of Quality Professional Selling?

Everyone is a Salesperson…Agree or disagree, Why?

Likes/Dislikes about Salespeople?

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1CT Image of Upper Abdomen

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1Questions

Consumers are Rational and Sovereign Assumptions…Comment, How Would this Affect Salespeople Doing their Jobs?

Describe Types of Selling Presented in this Chapter, How are they Different? How are they Similar?

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1Role-Playing Scenario (5 Min Each)

Why are You Interested in the Sales Engineer Position?

What Does it Take to be Successful in Sales?

Relate Your Personal Strengths to Being a Sales Engineer for Mediquip NOT “I work hard” NOT “I Like People”

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1Knowledge Building Case

Understanding of what the Customer Values?

3 things of Value in a Notebook Computer?

Difference between Price and Value?

CHAPTER 2

The Changing World of Sales

Figure 2.1A Framework for Change in the Sales

Force

Globalization

Roar ofTechnological

Innovation

IntensifiedCompetition

CustomerExpectations

ChangeForces

Is OurSales Force Current?

How the Sales Organization

Is PositionedFor Change

OrganizationCulture/Climate

Organization Structure

MarketOrientation

LeadershipSupport

Learning

Is OrganizationAnd IndividualPerformanceSatisfactory?

How IndividualSalespeople Respond to

Change

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1Assignments

Chapter Two

Questions 1, 2, 6, 9, 10

Knowledge-Building Questions 2, 4, 6 (p. 62)

Three-Minute Drill

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1Review - Preview

Today… Chapter One – Selling ASAP Questions Role Play Knowledge Building Case Chapter 2 preview

Tuesday Chapter 2 (the changing world of sales) Questions 1, 2, 6, 9, 10 Mediquip Knowledge Building Questions 2, 4, 6

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1BA 491

Be Safe, and Have a Great Weekend!