PART 1PART 1Understanding theSales EnvironmentUnderstanding theSales Environment

CHAPTER 1: SELLING ASAP

CHAPTER 2: THE CHANGING WORLD OF SALES

CHAPTER 3: SELLING ETHICALLY

CHAPTER 4: BUILDING CUSTOMER LIFETIME VALUE

CHAPTER 1CHAPTER 1

Selling ASAPSelling ASAP

“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.”

“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. TrumanHarry S. Truman

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

Agility to enhance Performance

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

Agility to enhance Performance

Art and ScienceArt 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

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

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1AgilityAgility

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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1PerformancePerformance

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?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

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1Non-manipulative SellingNon-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 RelationshipsBuilding 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

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 CustomerUnderstanding 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

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 LearnApply 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 ASAPComponents of ASAP

Understanding the Sales Environment

Implementing the Sales Process

Mastering Sales Agility

Figure 1.1Timely and Timeless Components of Selling ASAP

Figure 1.1Timely and Timeless Components of Selling ASAP

PreparationPreparation

AttentionAttention

ExaminationExamination

PrescriptionPrescription

Conviction & MotivationConviction & Motivation

Completion & PartneringCompletion & Partnering

Understanding Why Buyers BuyUnderstanding Why Buyers Buy

Selling to Major AccountsSelling to Major Accounts

PART IIImplementing the Sales Process ASAP

PART IIImplementing the Sales Process ASAP

PART IIIMastering Sales Agility ASAP

PART IIIMastering Sales Agility ASAP

ManagingYourself & Your Time

ManagingYourself & Your Time

Selling EthicallySelling Ethically

Building Lifetime ValueBuilding Lifetime Value

The Changing World of SalesThe Changing World of Sales

PART IUnderstanding the Environment ASAP

PART IUnderstanding the Environment ASAP

Figure 1.2Taking a Lifetime View of Customers

Figure 1.2Taking a Lifetime View of Customers

Customer

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

Customer

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

ProductHoldingsProductHoldings

ContactsContacts

Product UseProduct Use

EventsEvents

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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1ThoughtwareThoughtware

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

Figure 1.3Where Selling Fits in the Organization

ManpowerManpower MoneyMoney MaterialsMaterials

Personnel Finance Manufacturing

MarketingMarketing

SalesSales

All OrganizationsPerform Selling Activities

All OrganizationsPerform Selling Activities

“Nothing happens in the economy until someone sells something to

someone else.”

“Nothing happens in the economy until someone sells something to

someone else.”

Arthur H. “Red” Motley

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1Steps of the Sales ProcessSteps of the Sales Process

Preparation

Attention

Examination

Prescription

Conviction & Motivation

Completion and Partnering

Figure 1.4A Customer-FocusedSelling Framework

Figure 1.4A Customer-FocusedSelling Framework

Customer Behavior

Customer Behavior

SalespersonBehavior

SalespersonBehavior

CollaborationCollaboration

InitialInquiryInitial

InquiryTime to

RespondTime to

RespondSales Call

Sales Call Decision?Decision? ThinkingThinking Re-InitiateRe-Initiate

Preparation Preparation AttentionAttention ExaminationExamination PrescriptionPrescription ConvictionConviction CompletionCompletion PartneringPartnering

•Promotion•Web Site•Personal Visits

•Promotion•Web Site•Personal Visits

•Service•Salesperson•Sales Organization

•Service•Salesperson•Sales Organization

• Promotion• Web Site• Engineering• Finance• Accounting

• Promotion• Web Site• Engineering• Finance• Accounting

MotivationMotivation

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Why Become aProfessional Salesperson?

Why Become aProfessional Salesperson?

Opportunity

Job Satisfaction

“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.

“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)Dan Weilbaker (2001)

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1I3 RationaleI3 Rationale

Independence

Income

Impact

© 2000 Northwestern Mutual Financial Network

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1Rewards of SellingRewards 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

Annual Income of Salespeopleand Sales Managers

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1Route to ManagementRoute 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

Zone Business Mgr.• Financial & HR

responsibility

Category Mgr.

• Customer category strategies• Data-base analysis

Category Mgr.

• Customer category strategies• Data-base analysis

Category AnalystCategory Analyst

Sales AssociateSales Associate

Human ResourcesHuman ResourcesDirector of SalesDirector of Sales FinanceFinance OperationsOperations

Key Account Mgr.(5-8 per Area)

• HQ Account Ownership

Key Account Mgr.(5-8 per Area)

• HQ Account Ownership

Regional VPRegional VP

PresidentPresident

Frito-LayNational HQ Sales

Frito-LayNational HQ Sales

District Sales Leader(8-10 per zone)

• People Leadership- 15 salespersons

• Account relationships

District Sales Leader(8-10 per zone)

• People Leadership- 15 salespersons

• Account relationships

Zone Sales Leader(4-8) per Area)

• 125 + employees

Zone Sales Leader(4-8) per Area)

• 125 + employees

Figure 1.6 - Frito Lay Career TrackFigure 1.6 - Frito Lay Career Track

Figure 1.7Sales Opportunities

in Large Organizations

Figure 1.7Sales Opportunities

in Large Organizations

PresidentPresident

Vice Presidentof Marketing

Vice Presidentof Marketing

Vice Presidentof Sales

Vice Presidentof Sales

NationalSales Manager

NationalSales Manager

DivisionSales Manager

DivisionSales Manager

RegionalSales Manager

RegionalSales Manager

DistrictSales Manager

DistrictSales Manager

Sales RepresentativeSales Representative

Sales TraineeSales Trainee

Or here…Or here…

Or you mightend up here…Or you mightend up here…

You may choose to stay here…

You may choose to stay here…

When you enter the workforce here…

When you enter the workforce here…

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1The Face of SellingThe 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 SalesInside 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 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

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1ClassificationsClassifications

Retail selling

Trade selling

Missionary selling

Technical selling

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Types of Selling:A Traditional Look

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 SalesSuccess 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: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 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

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

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

Figure 1.8How Salespeople Spend Their Time

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CRMCustomer Relationship Management

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

Technology:Tools for the Salesperson

Central role

Store and share information

Communicate

Collaborate

Transact business

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1The Customer-Focused SalespersonThe 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

Why CRM Is ImportantTo Salespeople

Figure 1.9The Customer-Driven Selling Model

Figure 1.9The Customer-Driven Selling Model

ResultsResults

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

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