bmgt 204 chapter_5
TRANSCRIPT
C H A P T E R 5 : S A L E S K N O W L E D G E : C U S T O M E R S , P R O D U C T S , T E C H N O L O G I E S
B M G T 2 0 4 : S A L E S S T R A T E G I E S A N D T E C H N I Q U E S
C H A P T E R O V E R V I E W : T H E G O L D E N R U L E : K N O W L E D G E
• Be an expert on everything associated with your product(s)
• Use wisdom when applying knowledge
• Remember, customers rely on you to truthfully provide knowledge and wisdom
• Realize that people do not care how much you know until they know how much you care
J O B S E A R C H I M P L I C AT I O N S
• Pulse provides daily stories from your industry
• You can follow influencers to gain a POV
• In an interview, you should ask more questions than they do
• Understand their business, their challenges, before you even walk in the door
2 0 1 1 V I R T U A L W A L L E T I N T E R V I E W M AT E R I A L S
S O U R C E S O F S A L E S K N O W L E D G E
• Sales training
• Experience
• Living and breathing your clients brand
• MOOC’s
K N O W L E D G E B U I L D S R E L AT I O N S H I P S
• Knowledge increases a salesperson’s confidence
• Knowledge increases a buyer’s confidence in salesperson
• More knowledge leads to more sales and more relationships
K N O W Y O U R C U S T O M E R S
• Find out all you can
K N O W Y O U R C O M PA N Y
• General Company Information
• Company growth and accomplishment
• Policies and procedures
• Production facilities
• Service facilities
C O S T C O C E O I N T E R V I E W
• http://youtu.be/wkBGM7mkvdc
K N O W Y O U R P R O D U C T
• Product knowledge may include:
• Performance data
• Physical size and characteristics
• How the product operates
• Specific features, advantages, and benefits of the product
• How well the product is selling in the marketplace
K N O W Y O U R R E S E L L E R S
• Understand the channel of distribution
• Know as much about each channel member as possible
• Likes and dislikes of each channel member’s customers
• Product lines and the assortment each one carries
• When each member sees salespeople
• Distribution, promotion, and pricing policies
• What quantity of which product each channel member has purchased in the past
A D V E R T I S I N G A I D S S A L E S P E O P L E
• Main ingredients of a firm’s promotional effort
• Types of Advertising Differ
• National advertising
• Retail advertising
• Cooperative, or co-op, advertising
• Trade advertising
• Industrial advertising
• Direct-mail advertising
• Internet advertising
W H Y S P E N D M O N E Y O N A D V E R T I S I N G ?
• Companies advertise because they hope to:
• Increase overall sales and sales of a specific product
• Give salespeople additional selling information for sales presentations
• Develop leads for salespeople through mail-ins and ad response
• Increase cooperation from channel members through co-op advertising and promotional campaigns
• Educate the customer about the company’s product
W H Y S P E N D M O N E Y O N A D V E R T I S I N G ? , C O N T…
• Inform prospects that a product is on the market and where to buy it
• Reduce cognitive dissonance over the purchase
• Create sales or pre-sell customers between sales calls
S A L E S P R O M O T I O N G E N E R AT E S S A L E S
• Consumer sales promotion
• Trade sales promotion
• Point-of-purchase (POP) displays
• Shelf positioning
• Shelf facings
• Premiums
• Sales promotion on the Internet
W H AT ’ S I T W O R T H ? P R I C I N G Y O U R P R O D U C T
• Price refers to the value or worth of a product that attracts the buyer to exchange money or something of value for the product
Maximum Profit
Minimum Price to Break Even
Competitive Pressure
P R I C I N G I S O F T E N V E R Y P S Y C H O L O G I C A L
T E C H N O L O G Y I S A I D I N G S A L E S P E O P L E L I K E N E V E R B E F O R E
https://www.salesforce.com/form/conf/crm-sales-indexpage-demo.jsp
B E F O R E S A L E S F O R C E : W H AT S A L E S P E O P L E N E E D T O B E S U C C E S S F U L
• Customer/ Prospect profile.
• Lead tracking.
• Call reports.
• Sales forecasts.
• Sales data analysis
• Sales presentation.
• Time/territory management.
• Order entry.
• Travel and expense report.
• Checking inventory/shipping status.
K N O W L E D G E O F T E C H N O L O G Y E N H A N C E S S A L E S A N D C U S T O M E R S E R V I C E
• Personal Productivity
• Contact management
• Calendar management
• Automate sales plans, tactics, and tickets
• Geographic information system
• Computer-based presentations
K N O W L E D G E O F T E C H N O L O G Y E N H A N C E S S A L E S A N D C U S T O M E R S E R V I C E , C O N T…
• Communications with Customers and Employer
• Word processing
• Fax capabilities and support
• Customer Order Processing and Service Support
• Salespeople's mobile offices
H O W C A N A S A L E S P E R S O N U S E E - S A L E S , D I G I TA L M E D I A A N D S O C I A L N E T W O R K I N G T O I N C R E A S E S A L E S A N D C U S T O M E R S E R V I C E ?
• E-Sales is a strategic process of such as discovering the desires of customers, distributing, promoting, using digital media and digital marketing
• Digital Sales uses all digital media to develop communication and exchanges with customers and prospects
• Social Networking to connect for getting acquainted, keeping in touch, to build a work-related network
• LinkedIn Ok - others - probably not
S I M P LY A S K
• How do you prefer to be contacted?
• Useful for sales
• Useful for in a job search
• Useful in your career
C H A P T E R 5 A P P E N D I X : P R I C I N G E X A M P L E S
T Y P E S O F P R I C E S
• List price – standard price
• Net price – after discounts
• Zone price – based on geographicallocation
• FOB (Free on Board) shipping point – buyer pays
• FOB destination – seller pays
D I S C O U N T S L O W E R T H E P R I C E
• Quantity discounts
• Non-cumulative
• Cumulative
• Cash
• Trade
• Consumer
E X H I B I T C : E X A M P L E O F M A R K U P O N S E L L I N G P R I C E I N C H A N N E L O F D I S T R I B U T I O N
W H AT I S T H E P E R C E N T M A R K U P ?
$1.00 = cost to retailer!$1.00 = dollar markup!$2.00 = selling price
W H AT I S T H E P E R C E N T M A R K U P ? , C O N T…• It depends on whether you use
• Selling Price, or
• Cost
• Dollar markup is divided by either selling price or cost to retailer
• Selling price = 50%
• Cost = 100%
• We use selling price in calculating the percent of markup