1. Understanding the Sales Environment
PART 1
Understanding the
Sales Environment
CHAPTER 1: SELLING ASAP
CHAPTER 2: THE CHANGING WORLD OF SALES
CHAPTER 3: SELLING ETHICALLY
CHAPTER 4: BUILDING CUSTOMER LIFETIME VALUE

2. CHAPTER 1
Selling ASAP

3. “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

4. Selling ASAP
Selling is being viewed today as an Art and a Science, with an emphasis on practicing Agility to enhance Performance

5. Art and Science
Selling 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

6. Agility 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

7. Performance 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

8. What 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

9. Non-manipulative Selling
Today’s skillful salespeople practice non-manipulative selling
Only after salespeople and customers reach mutual agreement about value does a sale occur

10. Building 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

11. Thriving in a Highly Competitive 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

12. Understanding 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

13. The 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

14. Apply 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

15. Components of ASAP Understanding the Sales Environment
Implementing the Sales Process
Mastering Sales Agility

16. Figure 1.1 Timely and Timeless Components of Selling ASAP
Preparation
Attention
Examination
Prescription
Conviction & Motivation
Completion & Partnering
Understanding Why Buyers Buy
Selling to Major Accounts
PART II
Implementing the Sales Process ASAP
PART III
Mastering Sales Agility ASAP
Managing
Yourself & Your Time
Selling Ethically
Building Lifetime Value
The Changing World of Sales
PART I
Understanding the Environment ASAP

17. Figure 1.2 Taking a Lifetime View of Customers
Age
Gender
Buying Styles
Buying Team
Segment
Product
Holdings
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

18. Thoughtware
Thoughtware represents the thinking process salespeople use as they continuously learn about customers
Customers 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

19. Figure 1.3 Where Selling Fits in the Organization
Manpower
Money
Materials
Personnel
Finance
Manufacturing
Marketing
Sales

20. All Organizations Perform Selling Activities
“Nothing happens in the economy until someone sells something to someone else.”
Arthur H. “Red” Motley

21. Steps of the Sales Process
Preparation
Attention
Examination
Prescription
Conviction & Motivation
Completion and Partnering

22. Figure 1.4 A Customer-Focused Selling Framework
Behavior
Salesperson
Collaboration
Initial
Inquiry
Time to
Respond
Sales
Call
Decision?
Thinking
Re-Initiate
Preparation
Attention
Examination
Prescription
Conviction
Completion
Partnering
Promotion
Web Site
Personal Visits
Service
Sales Organization
Engineering
Finance
Accounting
Motivation

23. Why Become a Professional Salesperson?
Opportunity
Job Satisfaction

24. “Over 70% of new marketing graduates start their careers in sales
“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)

25. I3 Rationale Independence Income Impact
© 2000 Northwestern Mutual Financial Network
Independence
Income
Impact

26. Rewards of Selling Intrinsic rewards Extrinsic rewards
Include the good feeling one gets from helping a customer solve a problem
Extrinsic rewards
Include pay and promotional opportunities

27. Annual Income of Salespeople and Sales Managers

28. Route to Management Selling is an excellent route to management
Starting in sales can lead to many other career advancements

29. Figure 1.6 - Frito Lay Career Track
Zone Business Mgr.
Financial & HR responsibility
Category Mgr.
Customer category strategies
Data-base analysis
Category Analyst
Sales Associate
Human Resources
Director of Sales
Finance
Operations
Key Account Mgr.
(5-8 per Area)
HQ Account Ownership
Regional VP
President
Frito-Lay
National HQ Sales
District Sales Leader
(8-10 per zone)
People Leadership
15 salespersons
Account relationships
Zone Sales Leader
(4-8) per Area)
125 + employees

30. Figure 1.7 Sales Opportunities in Large Organizations
President
Vice President
of Marketing
of Sales
National
Sales Manager
Division
Regional
District
Sales Representative
Sales Trainee
Or here…
Or you might
end up here…
You may choose to stay here…
When you enter the workforce here…
Figure 1.7 Sales Opportunities in Large Organizations

31. The Face of Selling
Today’s sales force is made up of people of both genders and various ethnic origins

32. Inside 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

33. B2B 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

34. Classifications Retail selling Trade selling Missionary selling
Technical selling

35. 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

36. Success in Sales Successful salespeople possess the following:
Motivation to succeed
Empathy
Ego-drive
Service motivation
Conscientiousness
Ego-strength

37. 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

38. 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

39. Figure 1.8 How Salespeople Spend Their Time
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 OnlineMagazine/0700/salescomp_MRose.asp

40. CRM Customer 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

41. Technology: Tools for the Salesperson
Central role
Store and share information
Communicate
Collaborate
Transact business

42. The Customer-Focused Salesperson
Willing to learn
Manages what they learn
Realizes improved results
Achieves customer loyalty

43. Why CRM Is Important To Salespeople
Business
Perspective
Finding/Obtaining/
Keeping Customers
Efficiency
Competition
Communication

44. Figure 1.9 The Customer-Driven Selling Model
Results
Increased 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
Customers
Drive Markets
Core Value
Optimize the salesperson/customer fit
Knowledge
Management
A commitment to on-going learning
Customer Relationship
Management (CRM)
A way to obtain, store, analyze, share and use knowledge