1 RELATIONSHIP SELLING Discuss the key differences between relationship selling and traditional selling. Copyright 2010 by Cengage Learning Inc. All Rights Reserved

Finding customers and learning key selling concepts are essential to the sales process 1.Are salespeople necessary in today's society? 2. What qualities should a good salesperson possess? 3. Why are business ethics important in selling?

THE FOUR SALES CHANNELS Channels all include both business-to-business and direct-to-customer selling. Over-the-counter selling Personal selling conducted in retail and some wholesale locations in which customers come to the seller’s place of business. Field selling Sales presentations made at prospective customers’ locations on a face-to-face basis. Telemarketing Promotional presentation involving the use of the telephone on an outbound basis by salespeople or on an inbound basis by customers who initiate calls to obtain information and place orders. Inside selling Selling by phone, mail, and electronic commerce. Firms generally blend sales channels in their sales organization.

TRENDS IN PERSONAL SELLING Companies rely on three major personal selling approaches to meet customer needs. Relationship selling Regular contacts between sales representatives and customers over an extended period to establish a sustained buyer-seller relationship. Consultative selling Meeting customer needs by listening to them, understanding their problems, paying attention to details, and following through after the sale. Team selling Selling situation in which several sales associates or other members of the organization are recruited to help the lead sales representative reach all those who influence the purchase decision.

5 RELATIONSHIP SELLING Relationship (Consultative) Selling - A sales practice that involves building, maintaining, and enhancing interactions with customers in order to develop long-term satisfaction through mutually beneficial partnership. Copyright 2010 by Cengage Learning Inc. All Rights Reserved

PERSONAL SELLING 6 Personal Selling is more important if... Customers are concentrated. Customers are concentrated. Product is technically complex. There are few customers. Product is custom made. Product has a high value. Customers are geographically dispersed. Customers are geographically dispersed. Product is simple to understand. There are many customers. Product is standardized. Product has a low value. Advertising & Sales Promotion are more important if... Copyright 2010 by Cengage Learning Inc. All Rights Reserved

7 TRADITIONAL SELLING AND RELATIONSHIP SELLING Sell advice, assistance, counsel Sell products Traditional Personal Selling Focus on closing sales Limited sales planning Discuss product Assess “product-specific” needs “Lone wolf” approach Pricing/product focus Short-term sales follow-up Focus on customer’s bottom line Sales planning is top priority Build problem-solving environment Conduct discovery in scope of customers’ operations Team approach Profit impact and strategic benefit focus Long-term sales follow-up Relationship Selling Copyright 2010 by Cengage Learning Inc. All Rights Reserved

GENERATING LEADS Advertising Publicity Direct Mail/ Telemarketing Direct Mail/ Telemarketing Cold Calling Internet Web Site Internet Web Site Referrals Trade Shows/ Conventions Trade Shows/ Conventions Networking Company Records Copyright 2010 by Cengage Learning Inc. All Rights Reserved

THE SALES PROCESS Steps follow the AIDA concept.

10 REFERRAL AND NETWORKING Referral – A recommendation to a customer or business associate. Networking – A process of finding out about potential clients from friends, business contacts, coworkers, acquaintances, and fellow members in organizations. Copyright 2010 by Cengage Learning Inc. All Rights Reserved

11 THE PREAPPROACH PROCESS Product or service Customers Competition Industry Salesperson must know everything about... Salesperson must know everything about... Copyright 2010 by Cengage Learning Inc. All Rights Reserved

12 NEEDS ASSESSMENT A determination of the customer’s specific needs and wants and the range of options a customer has for satisfying them. Copyright 2010 by Cengage Learning Inc. All Rights Reserved

13 DEVELOPING AND PROPOSING SOLUTIONS Sales Proposal Sales Presentation Copyright 2010 by Cengage Learning Inc. All Rights Reserved

14 POWERFUL PRESENTATIONS Be well prepared Use eye contact Ask open-ended questions Be poised Use hand gestures and voice inflection Focus on the customer needs Incorporate visual elements Know how to operate the A/V equipment Make sure the equipment works PRACTICE, PRACTICE, PRACTICE! Copyright 2010 by Cengage Learning Inc. All Rights Reserved

15 HANDLING OBJECTIONS  View objections as requests for information  Anticipate specific objections  Investigate the objection with the customer  Be aware of competitors’ products  Stay calm  Use the objection to close the sale Copyright 2010 by Cengage Learning Inc. All Rights Reserved

16 CLOSING THE SALE Negotiate Keep an open mind Look for customer signals Tailor to each market Copyright 2010 by Cengage Learning Inc. All Rights Reserved

17 REVIEW LEARNING OUTCOME STEPS IN THE SELLING PROCESS Copyright 2010 by Cengage Learning Inc. All Rights Reserved

18 SALES MANAGEMENT Describe the functions of sales management. Copyright 2010 by Cengage Learning Inc. All Rights Reserved

19 SALES MANAGEMENT RESPONSIBILITIES Evaluate sales force Compensate and motivate sales force Recruit and train sales force Determine sales force structure Define sales goals and sales process Copyright 2010 by Cengage Learning Inc. All Rights Reserved

20 DEFINING SALES GOALS Clear Precise Measurable Time Specific Sales Volume Market Share Profit Level Copyright 2010 by Cengage Learning Inc. All Rights Reserved

21 QUOTA A statement of the individual salesperson’s sales objectives, usually based on sales volume alone but sometimes including key accounts, new accounts, repeat sales, and specific products. Copyright 2010 by Cengage Learning Inc. All Rights Reserved

22 TRAITS OF TOP SALES PERFORMERS  Strong, healthy self esteem  Can bounce back from rejection  Sense of urgency and competitiveness  Persuasive  Assertive  Sociable  Willing to take risks  Understand complex concepts  Creative in developing solutions  Possess empathy Copyright 2010 by Cengage Learning Inc. All Rights Reserved

23 TRAINING THE SALES FORCE Training includes... Nonselling duties Industry and customer characteristics Industry and customer characteristics Product knowledge Selling techniques Company policies and practice Copyright 2010 by Cengage Learning Inc. All Rights Reserved

24 COMPENSATING THE SALES FORCE Commission Salary Combination Plans Combination Plans Copyright 2010 by Cengage Learning Inc. All Rights Reserved

25 MOTIVATING THE SALES FORCE  Ceremonies  Plaques  Vacations  Merchandise  Pay raises  Cash bonuses  Stock options  Tuition assistance  Product discounts Rewards and incentives include: Copyright 2010 by Cengage Learning Inc. All Rights Reserved

26 EVALUATING THE SALES FORCE Contribution to profit Calls per order Sales or profits per call Call percentage achieving goals Sales volume Copyright 2010 by Cengage Learning Inc. All Rights Reserved

27 REVIEW LEARNING OUTCOME FUNCTIONS OF SALES MANAGEMENT Copyright 2010 by Cengage Learning Inc. All Rights Reserved