销售管理指南[001].doc

1 50 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 TECHNIQUES5 2 PROSPECTING6 3 THE PREAPPROACH7 4 QUALIFYING THE PROSPECT 7 5 THE APPROACH7 6 THE PRESENTATION8 7 MEETING OBJECTIONS9 8 CLOSE9 9 FOLLOW UP CAREER STAGES10 CORPORATE BUSINESS AND MARKETING STRATEGIES11 1 PORTER S TYPOLOGY OF COMPETITIVE STRATEGIES12 2 MILES AND SNOW COMPETITIVE STRATEGY TYPOLOGY12 ACCOUNT MANAGEMENT AND ACCOUNT COVERAGE STRATEGIES14 1 COMMUNICATION TASKS APPROPRIATE FOR PERSONAL SELLING15 2 PARTICIPANTS IN THE ORGANIZATIONAL BUYING PROCESS16 ORGANIZING THE ACTIVITIES OF SALES MANAGERS AND SALES PEOPLE 17 1 ECONOMIC METHOD OF DETERMINING IF OUTSIDE AGENTS ARE APPROPRIATE18 2 CONTROL AND STRATEGIC CRITERIA FOR DETERMINING IF A COMPANY SALES FORCE SHOULD BE USED18 3 HORIZONTAL ORGANIZATIONAL STRUCTURES19 ALLOCATING SELLING EFFORT AND DESIGNING SALES TERRITORIES22 STAFFING THE SALES FORCE RECRUITMENT AND SELECTION24 1 CONTENT OF THE JOB DESCRIPTION24 2 METHODS FOR DECIDING ON SELECTION CRITERIA25 3 SOURCES OF RECRUITS25 CONTINUAL DEVELOPMENT OF THE SALES FORCE SALES TRAINING27 SALES FORCE MOTIVATION30 MANAGING SALES FORCE REWARD SYSTEMS33 2 50 LEADERSHIP36 DEMAND ASSESSMENT AND SALES QUOTAS40 EVALUATION AND CONTROL45 PERFORMANCE EVALUATION48 ACKNOWLEDGEMENTS50 3 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 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 4 50 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 5 50 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 6 50 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 7 50 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 8 50 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 3 Product 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 9 50 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 10 50 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 11 50 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 strategy is a statement of the fundamental pattern of present and planned objectives resource deployments and interactions with markets competitors and other environmental factors that indicate how an organization or subunit or department within an organization intends to survive and prosper over time B The Planning Process Types of Plans A sales program constitutes only one part of a marketing plan and the marketing plan is only one element of the total strategic plan in most firms 12 50 Strategic planning in most large firms typically occurs in several stages which guide activities at different levels within the organization This hierarchy of plans commonly includes the following 1 The Corporate Strategic Plan 2 Strategic Business Unit Plans 3 Marketing Plans 4 Programs for Individual Marketing Functions C The Marketing Planning Process 1 PORTER S TYPOLOGY OF COMPETITIVE STRATEGIES 1 Low Cost Strategies position a supplier as a high volume producer with tight cost and overhead control Capitalizes on economies of scale Associated with relatively high market share 2 Differentiation Strategies the creation of something perceived industry wide as being unique Provides insulation against competitive rivalry because of brand loyalty and decreased price sensitivity 3 Niche Strategies serving a particular target market although market share in the industry might be low the firm dominates a segment within the industry 2 MILES AND SNOW COMPETITIVE STRATEGY TYPOLOGY 1 Prospectors attempt to pioneer in both product and market development 2 Defenders offer a limited stable product line to a predictable i e nonchanging market Emphasize being the low cost producer 3 Analyzers pioneer in new products and markets while at the same time retain a foothold in mature markets 4 Reactors don t do anything proactive they simply attempt to survive by reacting to environmental conditions III Environmental Impact on Marketing and Sales Planning Factors both internal and external to the firm affect the feasibility of marketing strategies and programs 13 50 Environmental factors influence marketing strategies sand programs in four basic ways 1 Environmental factors can constrain the organizations ability to pursue certain marketing strategies or activities 2 Environmental variables and changes in those variables over time help determine the ultimate success or failure of marketing strategies 3 Changes in the environment can create new marketing opportunities for an organization 4 Environmental variables themselves are affected and changed by marketing activities Therefore one of the most important parts of a marketing managers job is to monitor the environment and predict how it might change and develop marketing strategies suited to environmental conditions External Environmental Variables 1 Economic a total potential demand b level of competition c distribution structure 2 Social a demographic b educational 3 Legal Political a antitrust law b consumer protection legislation 4 Natural 5 Technical 14 50 CHAPTER 6 ACCOUNT MANAGEMENT AND ACCOUNT COVERAGE STRATEGIES When deciding on the role of personal selling in a firms marketing strategy a firms marketing and sales managers must answer two sets of questions 1 What proportions of a firms total promotional budget should be devoted to the sales force How much emphasis should be given to personal selling versus other promotional tools i e media advertising and sales promotion 2 How should each current and prospective customer be managed What activities should the firms sales people carry out to accomplish the company s communication objectives What account management policies should be adopted to guide the selling activities of the sales force I The Role of Personal Selling in the Marketing Mix The promotional element of the firms marketing mix incorpo