Effective Selling[1]

Effective Selling and Sales Promotion

Course Objectives • Develop a sales strategy for your company • Learn key elements in the sales process • Explore efficient sales methodologies • Gain tips for building a successful sales team • Discuss the importance of having an experienced sales team

Personal Selling The personal communication of information to persuade a prospective customer to buy something --- a good, service, idea or something else --- which satisfies that individual’s needs.

What Does a Salesperson Do? • • • • • •

Creates new customers Sells more to present customers Builds long-term relationships with customers Provides solutions to customer’s problems Provides service to customers Helps customers resell products to their customers • Helps customers use products after purchase • Builds goodwill with customers • Provides company with market information

Recent Trends • Relationship Selling – Mutually beneficial relationship on a long-term basis – Partnering

• Consultative Selling – Act as “consultant”

• Team Selling – Involve specialists from other functional areas

• Sales Force Automation (SFA) – Use of computers, wireless communications, multimedia

Relationship Selling • • • • • •

Non-adversarial Non-manipulative Consultative Partnering Problem-solving Goal: long-term relationship

Types of Sales Jobs • The complexity and difficulty of each category increases from left to right.

Inside retail sales

OrderTakers

Outside delivery

Entrylevel consumer goods

Missionary

Sales Engineers

Creative sales of tangibles

Creative sales of intangibles

OrderGetters

The Sales Process Move at Least One Step Forward 1. Prospecting 2. Preapproach 3. Approach 4. Presentation 5. Trial close 6. Uncover Objections 7. Meet Objections 8. Trial Close 9. Close 10. Follow-up and Service

ABC’s Of Selling

•Always •Be •Closing

The Prospect’s Mental Steps • Attention • Interest • Desire • Action

Understanding Consumer and Business Buyer Behavior

Fulfilledthrough: Managerial actions:

Fulfilled through: Managerial actions: Fulfilled through: Managerial actions: Fulfilled through: Managerial actions:

Fulfilled through: Managerial actions:

Key Messages to Use in Advertising Campaigns

Features - Benefits-Advantages

The "International” Pencil Attribute Wood Shaft

Lead (combination of graphite and clay and waxes)

Source - Incense Cedar from CA, NV, OR - - Red Cedar from Kenya - White Pine from USSR - Basswood from China - Graphite from England, Asia Sri Lanka, Madagascar, Mexico - Clay from Bavaria and Georgia - Waxes from Brazil and Mexico

Ferrule (aluminum or tin)

- Canada and the United States

Eraser (Synthetic rubber blended with pumice or vinyl)

- Gum from Asia

Yellow Paint

- United States

Selling a Pencil Feature

Benefit

Advantage

Graphite from Borrowdale, England where graphite was first discovered

Dark lead makes it easy to write

Needs less pressure than competitors’ pencils.

Shaft is IncenseCedar from Sierra Nevada Mountains

Incense-Cedar is considered a sustainable wood

More ecologicalfriendly compared to competitors’

Shaft is cut with sixsides

Provides secure hold on pencil

More accurate writing over slippery rounded shafted pencils

Eraser is made from Durable material rubber found in South America

Has longer usage/life than next closest competitor

6 Major Categories of Objections 1. 2. 3. 4. 5. 6.

The hidden objection The stalling objection The no-need objection The money objection The product objection The source objection

Overcoming Resistance to Price • Do not make concessions too quickly • Increase the “value” of the product – Long term vs. short term benefits – Talk about “quality” – Feel, felt, found

• • • •

Eliminate some items Find some point of agreement “Take it or leave it” The best approach… anticipate resistance

Basic Points to Consider in Meeting Objections  Plan for objections, anticipate and forestall  Handle objections as the arise - Postponement may cause a negative mental picture or reaction

 Be positive  Listen – Request more information  Negotiation can overcome a condition  Must uncover hidden objections and eliminate them

Answering a Prospect’s Buying Signal Question with a Question Buyer Says

Salesperson Replies

What’s your price?

In what quantity?

What kind of terms do you offer?

What kind of terms do you want?

When can you make delivery?

When do you want delivery?

What size copier should I buy?

What size do you need?

Can I get this special price on orders placed now and next month?

Would you like to split your shipment?

Do you carry 8, 12, 36 and 54 foot pipe?

Are those the size you commonly use?

How large an order must I place to receive your best price?

What size order do you have in mind?

Do you have Model 6400 in stock?

Is that the one you like best?

12 Keys to a Successful Closing • • • • • • • • • • • •

Think success! Be enthusiastic Plan your sales call Confirm your prospect’s needs in the approach Give a great presentation Use trial closes during and after your presentation Smoke out a prospect’s real objections Overcome real objections Use a trial close after overcoming each objection Summarize benefits as related to a buyer’s needs Use a trial close to confirm Step 9 Ask for the order and then be quiet Leave the door open. Act as a professional

Sales Strategy • Mission Statement • Strategy • Objectives – Market Potential – Sales Forecast

• Tactics – – – –

Organization Compensation Expenses Performance Review and Analysis

Sales Forecasting Methods Methods

Advantages

Disadvantages

Best Used

Executive Opinion

Quick, easy, and simple

Subjective Lacks analytical rigor

For new products

Sales force composite

Relatively simply Usually fairly accurate Involves those people who are responsible for the results

Salespeople are sometimes overly optimistic Salespeople may sandbag (estimate low) to look better Time consuming

When reps are of a high caliber When each rep has a small number of customers

Survey of buyers intentions

Done by those who will buy the product, so accuracy should be good.

Time consuming High cost Customer may not cooperate

For new products When there are a small number of customers

Trend projections:

Objective and inexpensive Use historical data

No consideration for major product or market changes Require some statistical analysis

For established products When market factors are predictable For aggregate company forecasts

Analysis of market factors

Objective Fairly accurate and simple

Unforeseen changes in the market can lead to inaccuracy

When market factors are stable and predictable

Test markets

Very accurate

Time consuming Cost

For new products which do not require large investments

-moving average -exponential smoothing -regression analysis

Organizational Structure • Basic Types of Organizations – – – –

Line Line and Staff Functional Horizontal

• Independent Sales Organizations – Manufacturer’s Reps – Brokers – Wholesale Distributors

Buildup Method of Territorial Design Determine: 2. Call patterns - frequency per account/year 3. Total calls needed in each control group 4. Workload capacity: Total calls possible per rep per year = number of daily calls x days selling 4. Tentatively set territorial boundary lines by combining control units until total calls needed = total calls possible 5. Modify territories as needed

Breakdown Method of Territorial Design Determine: 2. Company sales potential 3. Sales potential in each control unit 4. Sales volume expected from each sales person 4. Tentatively set territorial boundary lines by combining control units total sales potential = total sales volume expected 5. Modify territories as needed

Method Straight salary

Advantage

Disadvantage

Best Used

Provides security and stability for reps

Direct incentive is easily lost if For products that require a lot of presale and/or post-sale service not administered properly

Better for directing and controlling sales activities

Represents a fixed cost

Ensures proper treatment of customers

For building long-term customer relationships

Requires supervision to direct, When supervision is available for control, and evaluate new recruits For new territories For missionary sales

Straight commission

Provides a strong incentive

Difficult to direct and supervise sales people

When a strong incentive is needed to attain sales

Sales people have more freedom

Customers’ best interests may be ignored

For products that require little presale and/or post-sale service

Acts as a screening method

Sales people’s earnings may fluctuate widely

The sale is a one-time sale Adequate field supervision is not available Company is in a weak financial position Company uses part-time or independent sales people

Bonus

Added incentive

Added cost

Can be used for specific activities - flexible

May be seen as inequitable if not administered properly

To encourage above-normal performance of specific activities

Salesperson Expense Options Method

Reimbursement

Advantages

Disadvantages

Salespeople

None

Simple

Reps may not

No Costs

spend enough on

pay their own expenses

customers

-----------------------------------------------------------------------------------------------------------------------Unlimited

All legitimate

Flexible and fair,

Encourages

payment plan

business expenses

allows for territory

excessive spending

differences -----------------------------------------------------------------------------------------------------------------------Limited

Specific amounts

Limited and

Inflexible

payment plan

$80/Day - Lodging

predictable

Possibility of

$45/Day - Food

switching expenses

$0.26/Mile - Transportation

(Sales may resent)

-----------------------------------------------------------------------------------------------------------------------Flat allowance

$700 per week

Limited and

Inflexible

predictable

(Sales may resent)

Output Factors Used as Evaluation Bases • Sales volume

– In dollars and in units – By products and customers (or customer groups) – By mail, telephone, and personal sales calls

• Sales volume as a percentage of: – Quota – Market potential (i.e., market share)

• Gross margin by product line, customer group, and order size • Orders – – – –

Number of orders Average size (dollar volume) of order Batting average (orders / calls) Number of canceled orders

– – – –

Percentage of accounts sold Number of new accounts Number of lost accounts Number of accounts with overdue payment

• Accounts

What is Networking?

NET (noun) -

WORKING (verb)

Family - Developing Business Associates - Nurturing Prospects & Customers - Relating Association Members- Contacting

Why Networking? • Grow Your Business – Expand your number of contacts – Move contacts to prospects to customers

• Find a Job – We are all just “temps” – 19 of 20 jobs I obtained through referrals

• Make New Friends

“Mining For Gold!” (Resources)

Where Can You Network? • Work • Professional Associations • Clubs • Church • Theater • Store • Elevator? • Basically anywhere!

Who’s Out There?

The World = 6.5 Billion People (2000 Census)

Close Encounters of the 3rd Kind If you meet 250 people per week, you will “encounter” nearly 1 million people over your lifetime!

Types of Encounters 1st – Sighting 2nd – Evidence10% = 100,000 Contacts Average 25 / week 3rd – Contact

A Week in My Life Self-Evaluation Over a Six Week Period Average 30 / Week At Meetings 33% Chance Encounters 54% At Work 13%

Lessons Learned • It was a “numbers game” – I met most people through a “chance encounter” – The more people I met, the more contacts I made

• I “actively” participated in the process – Engaged them in a meaningful conversation – Exchanged contact information

Case Study – Worst Case Tactic # 1 – Scenario Find a Person Standing Alone

YOU

Situation & Tactics - Easy to meet - They are typically happy to meet you - You say, “I see you’re alone too?”

Case Study – Worst Case Tactic # 2 – Joining a Group Scenario Bar, Buffet or Registration Table

YOU YOU

YOU

Situation & Tactics

- Wait until they break up and get into a line - Get in line and start conversation with

Case Study – Worst Case Scenario Tactic # 3 – The Full Frontal Assault!

YOU

Situation & Tactics - Hard to break into conversation - Stand at perimeter and look at one person… get their attention You say… - “Hi, I wanted to introduce myself”

How to Introduce Yourself

• Develop an “Elevator Speech”

– 1-2 sentence description of yourself – A mini-resume vs. talking “benefits”

• Greet them with a hardy handshake • Business card etiquette – Keep your cards in left pocket – Keep their cards in your right pocket – Don’t force your card on them

What to Say Next • Engage them in a meaningful conversation – Ask non-controversial questions – Practice “active” listening – Uncover opportunities to be a “resource”

• Adjusting for different personality types – Myers-Briggs Type Indicator (MBTI) – Four Behavioral Styles

Your “Doodle” Personality Boxe s

Triangle s

Circle s Squiggles

Myers-Briggs Type Indicator

• Energy Consciousness

(E) Extroversion vs. (I) Introversion

• How people perceive or take in information (S) Sensing vs. (N) Intuition

• How people form judgments or make decisions (T) Thinking vs. (F) Feeling

• Life management orientation (J) Judging vs. (P) Perceiving

Four Behavioral Styles Control Responsivene ss

Ask

Analytic al

Amiable

Driver Assertiveness

Expressi ve

Emote

Tell

How to Remember Names

• Make a conscious effort to remember their name – Slow down the process – Repeat their name in the conversation

• Use a visual or physical cue • Play “host” • Make a note on their business card – Where you met them

The Care and Feeding Contacts • Create aof contact database – Microsoft Outlook or ACT, Gold Mine, Etc. – Keep track of key important details

• Initial Follow-up – Follow–up within 24 hours – Mention something unique that you discussed

• Ask for a Referral – “Continuous Chain” • Staying in Touch – Contact them on a regular basis --- add “value” –

Let’s Network! Introduce yourself to someone you don’t know. Find out the following information…

1. Name? 2. Where are they from? 3. Favorite hobby? 4. What personality type are they (your best guess)? 5. Resources? - What can they share with you? - How can you benefit them?

Key Points on Networking

• Your success will depend on “who you know” and “who knows you” • Meet over 1 million people in your lifetime, but you need to take an active role to create meaningful relationships • Develop networking skills and techniques – Attend meetings with a purpose and strategy – Develop an “elevator speech” – Remember names – Take on the role of “host”

Top 10 Networking “No Nos”

10.

Show up late and make lots of noise while finding a seat.

9.

Give everyone a limp handshake.

3.

Talk incessantly about yourself and your many accomplishments, and drop names of important people that you know.

7.

Drink excessively… especially shooters!

5.

Look furtively around the room trying to locate more important people to talk to than the person you are talking with at the moment.  

5.

Wear inappropriate clothing. Over-dress or under-dress, it's your choice.

7.

Hand out your resume or product brochures and catalogs to everyone you meet while reciting a deliberate, canned sales pitch.

3.

Sit with your fellow employees so you don't have to meet anyone new.

2.

Excuse yourself to go to the restroom just before the bill arrives.

And the number one networking "no no" is, 1.

Keep calling the person you just met by the wrong name.

Additional Resources • New Mexico Directory of Professional Associations & Business Organizations • Networking Opportunities – Key organizations – Newspaper “calendars”

• Directories and Lists • Leads Groups • Toastmasters • Books, Articles, Websites, Etc.