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DESIGNING THE

SALESFORCE

Sales personnel serve as link to customers


Sales representatives bring needed
information

Sales force objectives and strategy

Company select specific objective


Sales people to meet quotas
Sales people perform:
Prospecting search for leads
Targeting how to allocate time
Communication - information

Selling approaching, presenting


Servicing- providing, consulting services
Information gathering conduct market
research
Allocation which customer get scarce
products
Company define objectives

Sales representative work with customer in


several ways:
Sales representative to buyer:
Discuss with customer over phone
Sales representative to buyer group:
Representative know as many members of the
buyer group as possible

Sales team to buyer group


Team closely work with customers

Conference selling sales representative


brings company resource people to discuss a
major problem
Seminar selling company conduct
educational seminar for the customer
Company decide direct (company) sales force,
use full/part time employees field sales
personnel

Contractual sales consist manufacturers,


representatives, sales agents, brokers on
commission

Sales force structure

1 product line 1 end in many locations


Territorial sales force structure
-IBM ex: (rethink and reorganise)

Sales force size and compensation

Sales size increase both sales and costs


Workload approach adopted customers
grouped, call
Frequencies established
Number x frequency, average, no. of calls a
sales representative make

Managing the sales force

Recruit, selecting, train, supervise, motivated


and evaluate sales representative

Recruiting and selecting sales


representative

Level of energy, risk taking, mission, problem


solving, confidence
Empathy ability to feel as the customer does
Ego drive strong need to make sales
Select from employment exchange
Consultancy ads, college students too much
insecurity exist

Training sales representative

Representative with samples, order books,


territory
Representatives know about company,
products, customer, competitors, effective
sales presentation, responsibilities

Supervising sales representatives

Sales representatives have more territory,


compensation package supervised

Norms for customer calls

Increase phone, Fax, e-mail


How many calls a company make?
5 hours a month, 5-9 months, > 9 hours

Norms for prospect calls

How much time representative spend for new


accounts
Using sales time efficiently utilise effectively
Telemarketers call 50 customers a day

Motivating sales representative

Ambitious and self starters (While fatigue)


Sales managers convince sales people,
rewards for better performance, financial
rewards, higher order (recognition)

Sales quotas

Prescribe what representatives sell during the


year in volume, dollar margin
Sales forecast basis
Sales manager divides areas quota
High quota school set higher than what
sales representative achieve

Modest quota school majority achieve


Variable quota school high for some, modest
for some

Supplementary motivators

Periodic sales meeting sponsor sales contests

Evaluating sales representatives

Feed forward- how management


communicates what sales representatives
doing and motivating them to do it
Feedback getting regular information

Sources of information

Sales report, personal observation, customer


letters and complaints, surveys,
conversations, activity plans and write ups

Sales persons work plan submit in


advance

Schedule develop annual, territory marketing


plan
Sales representatives write ups, completed,
call reports, sales performance, average sales
calls, entertainment cost, no. of new
customers

Formal evaluation

Sales force report with observation


evaluation
Current performance to past performance
Assess sales persons knowledge
representatives observes law

Principles of personal selling

Professionalism (sales)
Negotiation
Relationship marketing

Professionalism

Company spend million dollars to train sales


people copies of books, casettes,
videotapes

Training approaches convert a sales person


Passive order taker assumers, customers
know their needs
To active order getter
Sales oriented and customer oriented
approach
Trains stereo-typed
Trains sales people in customer problem
solving

Sales training programme major


steps

1. Prospecting and qualifying


Sales people find leads, company generate
leads
Examine data sources
Trade shows, referral sources
Speaking and writing activities

2.Pre approach

Sales people know about prospect company


who is involved in purchase decision and its
buyers

3. Approach

Sales people know how to greet the buyer

4. Presentation and demonstration

Salesperson tells product story to the buyer


3 Styles of presentation
Canned approach, formulated approach,
need-satisfaction approach

Canned approach

Memorised sales talk covering main points

Formulated approach

Identifies buyers needs and style than adopt


approach

Need-satisfaction approach

Starts with search for customers real need by


encouraging customer to do most of the talk

5.Overcoming objections

Customer pose objections, psychological


resistance-overcome logical resistance, price

6. Closing

Sales person attempts to close sale, do it well,


tell customer about choices, size, price

7.Follow-up and maintenance

Ensure repeat business schedule follow-up,


call when initial order is received develop
maintenance and growth plan

Negotiation

Selling involves negotiating skills


Exchange activities in which terms of
exchange established
Routinized exchange administered programs
of pricing
Negotiated exchange price frequently
negotiated

When to negotiate

When many factors not only price, when


business risk not predetermined, long period
of time required, when production interrupted,
Zone of agreement exists

Formulating a negotiation strategy

Commitment to an overall approach that has a


good chance of achieving the negotiators
objectives, hard strategy, soft strategy

Relationship marketing

Transaction oriented personal selling


SPIN selling
Situation Problem Implication Need pay off
S- what system are you using
P-what parts create errors
I- How does the problem affect productivity
N- How much would you save

Relationship important need focused and


continuous attention
Sales people with key customers make more
calls, manage customers/products

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