Sales Management Flashcards
(32 cards)
Top ten success factors in selling
- Listening skills
- follow-up skills-
- ability to adapt sales style from situation to situation
- Tenacity- sticking to the task
- Organisational skills
- Verbal communication skills
- Proficiency in interacting with people at all levels within an organisation.
- Demonstrated ability to overcome objections
- Closing skills
- Personal planning and time management skills
Characteristics of modern selling:
- problem solving and system selling
- adding value/satisfying needs
- Customer retention and deletion
- Database and knowledge management
- Customer relationship management
- Marketing the product
Types of selling
The selling function
- Order takers
- Order-getters - front-line salespeople, sales support salespeople
Sales orientation
Production -> sales -> customers-> Emphasis on seller’s needs
If blue ocean stratergy can do with no competition
Marketing Orientation
Customer needs-> production-> sales-> Emphasis on customers needs
Perception (cost vs value)- Perceived value
Promise (what’s in it for me?)
Differentiation (why is yours better?)
Reason – to – believe (why should I believe you?)
Perception (cost vs value)- Perceived cost
Price (what will it cost me?)
Risk (what could go wrong)
Effort (what are my hidden costs?)
Primary buying motives (Maslow- Basic Needs - pyramid diagram to show human needs)
Maslow, Basic needs
Social – identification with social groups, friendship
Esteem – desire to feel worthy in eyes of others
Self actualisation – need for mastery, self-fulfilment
Primary buying motives (Group influences)
Role – expectations associated with position
Reference groups – categories of people you see your self Social – identification with social groups, friendship
Social class – group with similar values, interests, lifestyles
Culture – influences of group with common language, environment also subcultures.
Emotional thoughts
Acts due to passion or sentiment
Emotional appeals most commonly
If two products are identical, the sales people who ‘connects’ has the advantage.
e.g. designer belt, or apple phone- could use any phone but use theirs
Rational Thoughts
Role – expectations associated with position
Acts on reason or judgement
Relatively free from emotion
e.g. food
Consumer buying process (customer centred)
Starts with the need not the awareness
Habitual buying situations
Variety-seeking buying situations
Complex buying situations
Consumer buyerss (B2C)
- Purchased for individuals or household consumption
- Decisions usually made by individuals
- Purchases often made based on brand reputation or personal recommendation with little or no product expertise
- Purchases based primarily on emotional responses to product or promotions
- Individual purchasers may make quick decisions
- Products: consumer goods and services for individual use
Organisational buyers (B2B)
- Purchases made for some purpose other than personal consumption
- Decisions frequently made by several people
- Purchases made according to precise technical specification based on product expertise
- Purchases based on primarily rational criteria
- Purchasers may engage in lengthy decision process
- Products: often complex; classified based on how organisational customers use them
There are three core ‘routes to market’:
- OEM
- Distributor
- VAR
OEM (three core routes to market)
Original equipment manufacturer
Direct to market.
Highest margin to distribute
Computer do online- e.g. wholesale from china
Distributor (three core routes to market)
agent who supplies goods to retailers.
Entered into an agreement to offer and sell the products of another company but isn’t entitled to use the manufacturers names as part of its business name.
VAR (three core routes to market)
Where businesses take one item from a supplier and adds additional services to this product or service which adds value to the customer.
Things to consider when managing channels (4 things)
- Channel performance-Which channels generate more sales than others?
- Channel economics-How much do channels cost? What is the ROI?
- Customer preferences-How do customers prefer to buy from you?
- ‘Field and forum’ approach for sales managers-How do sales teams build and share their knowledge about effective channels?
Motor Industry Example 1
- Customer journeys in the ’motor trade’ have changed dramatically in the last 4 years.
- When customers arrive at a dealership 76% of them have decided which car they will buy based on on-line research.
- Many car brands have re-positioned their sales teams so that they do more to ‘enable the sale’ rather than ‘force it’.
- Many dealerships pay a basic salary and commission is based on NPS scores instead.
Omni-channel communication
- Customers contact & expect to be contacted through the most relevant channel for them.
- Immediate response and reasonable resolution through someone empowered to help the customer achieve their objectives
- Businesses need a Single Customer View in order to manage the multiple contacts customers could make.
Customer relationship management (CRM)
is a technology for managing all your company’s relationships and interactions with customers and potential customers.
A CRM system helps companies
stay connected to customers, streamline processes, and improve profitability.
CRM goal
Improve business relationships. A CRM system helps companies stay connected to customers, streamline processes, and improve profitability.
