销售管理指南.docx

Sales Management 761

Jim Stoddard

AN OVERVIEW OF CONTEMPORARY SALES MANAGEMENT 3
1. PLANNING: 3
2. IMPLEMENTATION: 4
3. EVALUATION AND CONTROL: 4
AN OVERVIEW OF PERSONAL SELLIN 5
1. ALTERNATIVE SELLING TECHNIQUES 5
2. PROSPECTING 6
3. THE PREAPPROACH 7
4. Qualifying the prospect: 7
5. THE APPROACH 7
6. THE PRESENTATION 8
7. MEETING OBJECTIONS 9
8. CLOSE 9
9. FOLLOW-UP CAREER STAGES 10
CORPORATE, BUSINESS, AND MARKETING STRATEGIES 11
1. PORTER'S TYPOLOGY OF COMPETITIVE STRATEGIES 12
2. MILES AND SNOW COMPETITIVE STRATEGY TYPOLOGY 12
ACCOUNT MANAGEMENT AND ACCOUNT COVERAGE STRATEGIES 14
1. COMMUNICATION TASKS APPROPRIATE FOR PERSONAL SELLING 15
2. PARTICIPANTS IN THE ORGANIZATIONAL BUYING PROCESS 16
ORGANIZING THE ACTIVITIES OF SALES MANAGERS AND SALES PEOPLE 17
1. ECONOMIC METHOD OF DETERMINING IF OUTSIDE AGENTS ARE APPROPRIATE 18
2. CONTROL AND STRATEGIC CRITERIA FOR DETERMINING IF A COMPANY SALES FORCE SHOULD BE USED 18
3. HORIZONTAL ORGANIZATIONAL STRUCTURES 19
ALLOCATING SELLING EFFORT AND DESIGNING SALES TERRITORIES 22
STAFFING THE SALES FORCE: RECRUITMENT AND SELECTION 24
1. CONTENT OF THE JOB DESCRIPTION 24
2. METHODS FOR DECIDING ON SELECTION CRITERIA 25
3. SOURCES OF RECRUITS 25
CONTINUAL DEVELOPMENT OF THE SALES FORCE: SALES TRAINING 27
SALES FORCE MOTIVATION 30
MANAGING SALES FORCE REWARD SYSTEMS 33
LEADERSHIP 36
DEMAND ASSESSMENT AND SALES QUOTAS 40
EVALUATION AND CONTROL 45
PERFORMANCE EVALUATION 48
ACKNOWLEDGEMENTS 50

CHAPTER 1
AN OVERVIEW OF CONTEMPORARY SALES MANAGEMENT
Sales force management is the management of the personal selling component of an organization's marketing program.

The activities involved in managing the personal selling function include:

1. The formation of the strategic plan (PLANNING).
2. The implementation of the sales program (IMPLEMENTATION).
3.The evaluation and control of sales force performance (CONTROL).

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1. PLANNING:
The formation of a strategic sales program requires five major sets of decisions:

1.How can the personal selling effort best be adapted to the COMPANY'S ENVIRONMENT and integrated with other elements of the firm's marketing strategy?

2.How can various types of potential customers be best approached? persuaded? serviced? What ACCOUNT MANAGEMENT POLICIES should be adopted?

3.How should the sales force be ORGANIZED to call on and manage various types of customers as efficiently and effectively as possible?

4.What level of performance should each member of a sales force be expected to attain during the next planning period? This involves FORECASTING DEMAND and setting QUOTAS AND BUDGETS.

5.How should the sales force be deployed? How should sales territories be defined? What is the best way for each sales person's time to be allocated within his or her territory? This involves decisions about TIME AND TERRITORY MANAGEMENT.

2. IMPLEMENTATION:
Implementing a sales program involves motivating and directing the behavior of the sales force.

At least 5 factors influence a sales person's job behavior and performance:

1. Environmental variables
2. Role perceptions
3.Aptitude
4.Skill level
5.Motivation level

Implementing a sales program involves designing policies and procedures so that the job behavior and performance of each sales person is shaped and directed toward the firms objectives and performance goals.
3. EVALUATION AND CONTROL:
Evaluation and control is the process of measuring and assessing the performance of a sales person or sales force.

There are 3 major approaches that a company might utilize to evaluate and control the sales force and monitor sales program performance:

1. Sales analysis approach (Volume)
2. Cost analysis approach (Costs)
3. Behavior analysis approach

CHAPTER 2
AN OVERVIEW OF PERSONAL SELLING
Retail Selling - involves selling goods and services to ultimate consumers for their own personal use.

Examples:
door-to-door salespeople
insurance agents
real estate brokers
retail store clerks

Industrial Selling - is the sale of goods and services at the wholesale level. Industrial selling involves 3 types of customers:

1.Sales to resellers (i.e., retailers)
2. Sales to business users (i.e., manufacturers)
3.Sales to institutions (i.e., hospitals or governments)

Similarities between retail and industrial selling:
- require interpersonal skill
- require solid knowledge of the products being sold
- require an ability to discover the customer's needs and problems

Differences between retail and industrial selling:
- industrial goods and services are more expensive and technically complex
- industrial customers tend to be larger and engage in extensive decision making processes involving many people within their company
1. ALTERNATIVE SELLING TECHNIQUES
Most selling techniques conform to one of four broad philosophical orientations or approaches toward dealing with customers:

1.The stimulus-response approach - based on the notion that every sensory stimulus produces a response. Sales recruits learn what to say (the stimulus) and what the buyers are likely to say (the response) in most circumstances.

2. Mental-states approach - based on the idea that a buyer's mind passes through successive stages before he or she decides to make a purchase. Based on the AIDA theory of persuasion (Attention, Interest, Desire, Action). Selling "formulas" are used to design a sales presentation that coincides with the buyers movement through the stages.
3. Need-satisfaction approach - based on the idea that customers are to be served rather than products sold.

Customers needs are the starting point in making a sale. The sales person's task is to identify the prospects needs, make the prospect aware of that need, and then persuade the prospect that his or her product or service will satisfy that need better than any other alternative.

4. Problem-solving approach - similar to the need-satisfaction approach except that the sales person goes one step further to help the prospect identify SEVERAL alternative solutions, analyze their advantages and disadvantages, and select the best solution.
2. PROSPECTING

Prospecting - is the method or system by which sales people learn the names of the people who need the product and can afford it.

Names and addresses of good prospects can be obtained in a number of ways:

1. sales managers can prepare lists of prospects.
2.customers can suggest new leads (snowball technique).
3. present users may want new or different models.
4.petitors customers can make good prospects.
5.trade association and industry directories.
6.telephone directories.
7.other sales people.
8.suppliers, social and professional contacts.

One question that must be addressed by a firm's account management policies is how much emphasis sales people should give to prospecting for new customers versus servicing new accounts.

In general, sales reps should devote a large percentage of time to prospecting if:

1.If the firm's product is in the introductory stage of its product life cycle.
2.If it is an infrequently purchased durable good.
3.If the typical customer does not require much service after the sale.

On the other hand, sales reps should spend most of their effort servicing existing customers if:

1.The firm has a large market share.
2. The firm sells frequently purchased nondurable products.
3.The firm's products require substantial service after the sale to guarantee customer satisfaction.
3. THE PREAPPROACH
Preapproach - includes all the information gathering activities necessary to learn relevant facts about the prospect and his or her needs and situation.

The preapproach consists of four functions:

1.To qualify the lead or disclose the party's needs and ability to pay.
2.To provide information that will enable the seller to tailor the presentation to the prospect.
3.To provide information that may keep the sales rep from making serious tactical errors during the presentation.
4.To increase the sales reps confidence to feel able to handle what ever may arise during the sale.
4. Qualifying the prospect:
Before the sales person attempts to set up an appointment for a major sales presentation, he or she should determine whether the prospect qualifies as a worthwhile potential customer.

Qualification involves finding the answers to three important questions:

1.Does the prospect have a need for my product or service?
2.Can I make the people that are responsible for buying so aware of that need that I can make a sale?
3.Will the sale be profitable to my company?
5. THE APPROACH
Approach - inspires interest in hearing more about the proposition, makes an easy transition into the presentation, and gets the prospects attention.
For most sales training programs, six basic approaches are used:

1.Introductory approach - the sales rep merely introduces him/herself and identifies the company he or she represents.
2.Assessment approach - the sales rep opens the interview with a plea for information or permission to investigate the company's problem.
3Product approach - consists of handing the product to the prospect, with little or no conversation.
4.Customer-benefit approach - the sales rep selects a benefit package that will likely be of most interest to the prospect - based on what is known about the situation.
5.Referral approach - the sales rep receives permission of past or present customers to use their names as a reference in meeting a new prospect.
6.Consultative approach - the sales rep opens the sale by getting the prospect to talk about the problem.
6. THE PRESENTATION
Presentation - the main body of the sale where the sales rep presents the product or proposition and shows the prospect its benefits.

Good sales presentations are built around a forceful product demonstration.

Canned presentations are prepared sales presentations.

Advantages:

1. gives new sales people confidence.
2. can utilize sales techniques proven effective.
3. gives some assurance that the complete story will be told.
4. greatly simplifies sales training.

Through out the presentation the sales rep makes trial closes to determine whether the customer is ready to buy. This can be done by asking such questions as:

Which model do you like best?
Which color do you prefer?
Cash or financing?
If all goes well in the trial close, the sales rep goes right on into an assumptive close and wraps up the sale.

A sales rep using an assumptive close assumes that the sale has been made. The sales rep starts filling out the order form.

However, if all does not go well, the next phase of selling (i.e., meeting objections) must be undertaken.

Points to keep in mind concerning sales presentations:
1. Don't run down competitors.
2. Don't be too aggressive or abrasive.
3. Have full knowledge of competitor's products.
4. Have full knowledge of customer's business.
5. Keep the presentation simple.
6. Seek credibility
7. MEETING OBJECTIONS
Meeting Objections - objections should be welcomed and indicate that the prospect has some interest in the proposition.

Stated versus hidden objections:
Stated objections may be phoney.

Objection to price and product:
To price: price too high or prospect can not afford the price.

Procrastinating objections:
Examples include:
1. Let me think about it for a while.
2. I have to talk it over with my family.
3. I have to wait until next pay check.
4. I have to look around some more.
8. CLOSE
Close - asking for the order.

There are 5 types of closing methods.
1.The assumptive close - merely assume prospects are going to buy and begin taking orders by asking questions.
2.The physical-action close - hand the prospect a pen as an indication it's time to sign.
3.The standing-room-only close - sales rep tells prospect the product is hard to get in the hopes that the prospect will sign the order.
4.The trap close - using the prospects objections to close the sale.
5.The special offer close - giving the customer a special offer to induce them to buy.

9. FOLLOW-UP CAREER STAGES

Recent research has identified 4 distinct career stages that sales people go through during the course of their careers.

1.Exploration - people in the earliest stages of their careers (typically their 20's). They are often unsure about whether selling is the most appropriate occupation for them to pursue and whether they can be successful sales people.

2.Establishment - people in this stage (late 2-'s - early 30's) have settled on an occupation and desire to build it into a successful career.

Primary concern - improving skills and performance and value compensation and promotion.

3.Maintenance - this stage normally begins around the sales persons late 30's or early 40's.

Primary concern - retaining present position, status, and performance level within the sales force, which are likely to be quite high.
[By this stage both the opportunity and desire for promotion diminishes.]

4.Disengagement - people begin preparing themselves for retirement and the possible loss of self-identity that can accompany separation from the job (late 50's - early 60's).

During this stage, sales people psychologically withdraw from their job, after seeking to maintain just an "acceptable" level of performance with a minimum amount of effort so that they can develop their interests outside of work.

CHAPTER 5
CORPORATE, BUSINESS, AND MARKETING STRATEGIES
I.Relations Among Environmental Factors, Marketing Plans, and the Sales Program

A.To be successful, a firm's plans must be adapted to the influences of the external and internal corporate environments. As these environments change, appropriate adjustments should be made in the firm's marketing strategy.

B.A firms sales program is only one part of an integrated marketing strategy. As changes are made in other parts of the marketing strategy, the sales program must be adjusted if it is to remain effective.

C.Regardless of how well conceived a sales program is, or how well it is integrated into a firms overall marketing strategy, its implementation depends on the willingness and ability of individual members of the sales force to carry out its policies and procedures.

Factors in the external and corporate environments can directly influence a sales person's actions in the field and his or her ability to achieve the desired level of performance.

II. Marketing Planning

A. Importance of Planning

Planning - is deciding what to do in the present to achieve what is desired in the future.
It requires decisions concerning the firm's goals and objectives for the future and the actions that should be taken to accomplish them.
A strateg