Study Guide Essays

Study Guide Essays Study Guide Essay Study Guide Essay Study guide for lecture 20: Personal Selling and Sales Management Selling philosophy Examples of selling situations The dog ate my homework Who wants to go to the movies Will you marry me You never call me anymore What features do you look for in a luxury car The single most important activity in the world Everybody is selling something all of the time 1 out of 10 Americans do It for money 85% of marketing majors* 60% of business majors* Definition A purchase situation Involving a paid-for communication between two people In an attempt to influence each other. Ailing means more than getting the customer to write a check Three approaches to selling High pressure sales/Hard sell This approach is still used in many circumstances unsought goods Postpone purchase Infrequent purchase High Information differential Why? because It works Relationship selling Aka needs satisfaction selling, consultative selling, adaptive selling Salesperson acts as consultant Help customer solve problems High likelihood your product will play a role in the solution Good for long-term relationships The shotgun approach Ask as many people as you can Those interested in your product say yes This Is the approach used by telemarketers call 100,000 people 99,000 are annoyed 1000 become customers Why salespeople are obnoxious Look at how they are compensated Hard sell is almost always 100% commission The salesperson starves if you dont buy What if you are the only prospect this week Consultative selling can be obnoxious too How many calls do you get after you say no Telemarketers use poorly targeted lists to save money The 99% of the people they annoy arent customers anyway Spammed consider a . 0001% closing rate to be successful Generate millions of e-mails in order to generate a handful of orders Selling as a profession Two major types of sales Jobs Inside sales Customer comes to you Outside sales You go to the customer Inside Sales No travel More supervision More clerical support Lower value transactions Lower pay Outside Sales Travel required Less supervision Less clerical support Higher value transactions Higher pay Facts about selling Selling is expensive Average call: $350 in person; $25 telemarketer Six calls per order Rejection is a big part of the Job The best salespeople are people people 85% extroverts The sales process Three roles of salespeople New customer development Missionary sales Detail men Transactions Order takers Order getters Customer support Manage the ongoing relationship Especially in BIB Market research The other third role Six stage process Prospecting Pre-approach Approach Establish rapport Presentation Uncover needs Develop a solution Close Follow-up Things you have to do before you make personal contact Identify the people you want to talk to Generate leads Qualify leads (screening) Create the opportunity Set appointments Know as much about your customer as you can Publicly available information Annual report Recent ads/promotions Awards* Habits preferences Buying history Personal information* Names of spouse/kids McKay 66 ( Harvestman. Com/PDF/Mackey. PDF) Selling is personal contact The most common mistake in selling is trying to sell before you have created rapport Goal Create trust Clarify roles Techniques Icebreaker Checking in Formats Stimulus response Anticipate needs Do you want fries with that Formula Canned presentation Useful with inexperienced salespeople Need satisfaction This is the assumption for this lecture Ask questions to uncover needs This is where you LISTEN Clarifying questions to make sure The better your understanding of the prospects needs, the better the solution you will create A mediocre salesperson will try to close when the prospect mentions something in your bag You are assisting with need recognition and alternative identification stages of buying process Develop solutions Help the prospect understand how your offering will be the best solution to the problem. The reason you are using personal selling in your promotional mix is because the customer needs help in understanding how your product will satisfy her deeds Objections (questions) happen when the customer doesnt understand the solution you are proposing Validate the objection Restate the objection to make sure you are answering the right question Handle it If it is factual issue, provide the facts If it is an emotional issue, try to determine what is causing the emotional reaction Always ask for the order Dont hint The worst that can happen is that they will say no. If you dont ask them, they wont ask you Mediocre salespeople make the decision for the customer by not asking Techniques Trial close Assumptive close Urgency close (high pressure) This is especially important for repeat customers Service Goodwill Critical source of market information Timing of next purchase Sales teams The latest trend in sales technology is to unbundled the sales process Prospecting Pre approach (customer analysis) Negotiating Closing Post sales service Different people are better at different sales tasks Schmoozer Analysts Closers Good negotiators Detail oriented Customer service Examples Team selling Call centers Transaction processing Closers (auto dealers) Telemarketing Internet Sales management Strategic issues Customer coverage Territory management A, B, C accounts New accounts vs.. Established accounts Management issues Recruitment and Selection Assimilation Training Motivation Compensation Supervision Performance evaluation Recruitment and selection Turnover is high Always looking for good people You want more applicants than you have Jobs Looking for green peas Schoolteachers Hiring experienced reps from the competition Most sales Jobs have a performance-based compensation structure Commission, bonus Salespeople will do what it takes to earn the most money Trade-off between salary and commission. The higher the salary, the more control The higher the commission, less overhead Commission is a variable cost. Directly related to compensation Commission based on sales Performance includes Sales Activities that generate sales Non-sales related marketing activities Reporting (paperwork) Salesrooms automation The use of technologies to make the sales function more effective and efficient Trends Computerizing Systems integration Customer relationship management (CRM) Wireless laptop Cell phone Digital assistant