Gurpreet K Chhabra
Willingness to go to bat for the buyer within the supplier firm 2. Thoroughness and follow through 3. Knowledge of the sales persons product line 4. Market knowledge and keeping the buyer posted 5. Applying his product and services to buyers needs 6. Knowledge of the buyers product line 7. Preparation for sales calls 8. Regularity of Sales calls 9. Diplomacy in dealing with operating departments 10. Technical education
1.
Negotiation Persuasion
Consultative Selling
Business Management
Partnership Strategies
Marketing concepts
Production concept Product concept Selling concept Marketing concept Societal concept
Production
Sales
Customers
(Sales Orientation)
Customer Needs
Production
Sales
(Marketing Orientation)
The determination of sales force objective and goals Sales force organization, size, territory, and quota finalization Sales forecasting and budgeting Sales force selection, recruitment, and training Motivating and leading the sales force Designing compensation plan and control systems Designing career growth plans and building relationship strategies with key customers
Types of selling
Types of Selling
Inside Order Taker Order Takers Delivery Sales People
Focus
Factory
Means
Selling and promoting
Ends
Profits though sales volume
Selling concept
Market Customer needs Coordinated marketing Profits through customer satisfaction
Market concept
Producer
Marketer
Consumer
Customer orientation
Relationship selling
Diversity
(9,9) Problem Solving Oriented I consult with the customer so as to inform myself of all the needs in his situation that my products can satisfy. We work towards a sound purchase decision on his part, which yield him the benefits he expects from it.
I am customers friend,
8
7 6 5 4 3 2
I want to understand him and respond to his feelings and interests so that he will like me. It is the personal bond that leads him to purchase from me. (5,5) Sales technique Oriented
I have tried an effective routine for getting a customer to buy. It motivates through a blended personality and product emphasis
(9,1) Push the product Oriented I take challenge of the customer and hard sell him, polling on all the pressure it takes to make him buy
Selling situations
Sales task and function Maintenance selling Developmental selling
Selling skills
Selling Skills
Listening Skills Negotiation and bargaining skills
Communication process
Feedback Intended Message Perceived Message
Encoding
Noise
Decoding
Sent Message
Received Message
Sender
Channel
Receiver
Process of listening
Attendance Interpretation
Remembrance
Evaluations Response Action
Levels of listening
Feedback
Paraphrasing
Clarifications
Emphatic listening
Active Listening
Barriers to Listening !
Negotiation skills
Situation and timing for negotiations Formulation for a bargaining strategy The theory and strategy of principle -
negotiations separate the people from the problem focus on interests, not on positions invent options for mutual gains insist on objective criteria
Approval
Planning
Carry through Follow up Evaluation
I M P L E M E N T A T I O N
Pre-sale preparation
Prospecting
Follow up action
Sales Presentation
Prospecting
Successful prospecting
50 potential prospects 15 Qualified prospects 6 Interviews 1 sale 50 potential prospects 25 Qualified prospects
17 Interviews
7 sales
No
Yes
Successful prospecting
Process of prospecting
Methods of prospecting
Cold canvassing Endless chain customer referral Prospect pool Centers of influence Non competing sales force Observation Friends and acquaintances Lists and directories Direct mail Telemarketing Trade shows and demonstrations
Selling process
Pre approach to selling Approach to the customer Sales presentation - approach to sales presentation - attracting customer attention - creating interest - arousing desire and building conviction Methods of sales presentation - canned presentation - organized presentation - tailored presentation
Avoid conceding first BE sure the customer understands the value of a concession Make concessions in small amounts Admit mistakes and make corrections willingly BE prepared to withdraw a concession Avoid split the difference strategy Do not advertise willingness to concede Use TRACT formula to buy time
Follow-up action
B2B selling
Forecasting process
The forecasting process is defined as the series of decisions and actions taken by a business organization in: identifying the forecasting objectives determining the independent and dependent variables developing a forecasting procedure using the available data in the selected method to estimate the sales in future
Forecast objectives
Comprehend total forecasting procedure Present all the assumptions about data Make and finalize the forecast
marketing decision support system - an MDSS is an ongoing future-oriented information structure designed to collect, collate, categorize, edit, store, and retrieve information on demand to aid decision making in an organizations sales and marketing programme
Expert opinion
Delphi technique
History analogy
Quantitative methods
Test marketing
Moving average
Sales
Time
Nave Method
Sales (at the period t) = Sales T+1 The following formula shows how to adjust the nave method to account for a change in rate of sales levels. The formula is stated this way: Next Years Sales = This Years Sales X This Years Sales Last Years Sales Freehand Method
Method of semi-averages
In this method available data are divided into two parts, usually with equal number of years on both the parts
Year
1993 1994 1995 1996 1997 1998 1999
Sales
102 105 114 110 108 116 112
The average of the first three years will be: 102+105+114 321 ----------- = -------- = 107 3 3 Similarly, for the last three years, 108 + 116 + 112 336 ---------------------- = --------- = 112 3 3
Decomposition method
It is a time series method in which seasonality is taken in to account while doing demand forecasting. This method consists of three essential steps which are illustrated below.
The forecaster is allowed to vary the weights assigned to past data points
It allows consideration of all past data, but less weight is placed on data as it ages Exponential smoothing is basically a weighted moving average of all past data The method is used to forecast only one period in the future Exponential smoothing techniques vary in terms of how they address trend, seasonality, cyclical and irregular influences
Price/ Unit
Qty per Unit (A)
P1
Price/ Unit
P2
Price / Unit
Price / Unit
D
Q1 Q2
D2
Price/ Unit
D
D2
QD = F (P, I, P0, T)
QD = B + aP P + a1I + a0P0 + aTT aP,, a I, a0, aT represents the one unit change in quantity associated with the variables. Linear form of the demand equation Q D = B + aP P B represents the combined influence of all the other determinants of the demand
TRANSACTIONAL SYSTEMS
USERS
MDSS
Correlation analysis
a correlation is basically the degree of linear association between two variables where one variable is treated as independent variable and sales as the dependent variable
sales managers look for variables that correlate with or relate to sales
correlation analysis involves the determination of whether a relation exists, and if it does, then measuring it, testing whether it is significant, and establishing the cause and effect relation the degree of relationships between the variables is called co-efficient of correlation
Regression analysis
regression analysis is another form of correlational technique
reveals average relationship between two variables and this makes possible estimation or prediction
a statistical method used to incorporate independent factors that are thought to influence sales into forecasting procedures
Sales Sales
Econometric techniques Econometric techniques uses multiple independent variables where the assumption is that of a liner equation between the dependent
data availability cost variability consistency of the data the degree of detail necessary time horizon technical sophistication ability of the method to capture the level of risk and variability the level of accuracy of the forecast fundamental change indicators
MAPE is the average percentage forecast error and is a popular way to measure accuracy
Sales organization
an organization of individuals either working together for the marketing of products and services manufactured by an enterprise or for products that are procured by the firm for the purpose of reselling a sales organization defines duties, roles, rights, and responsibilities of sales people engaged in selling activities meant for the effective execution of the sales function
a structural body through which the functions of sales management are carried out
sales organization always makes efforts to increase sales, thereby achieving the principle of profit maximization, which contributes to the overall growth of enterprise
Organizational principles
span of control
unity of command
hierarchy of authority stability and continuity coordination and integration homogeneity objectivity specialization
Organizational design
- formal and coordinated task - assigning territories - establishing flows of communication and responsibilities of sales groups and individuals to customers effectively
Line organization
Mr. Ratnakar Shetty President / Owner Mr. Chandrakant VP (Sales) Five sales people
Institutional market
Corporate market
Direct to Home
Direct marketing
Distributors
Bundling
Gifting
Regional Distributors
Consumer
Retailers
Consumers
Design by territory
VP Marketing National Sales Manager
Staff Function
Line Function
20 Sales People
Design by product
President, Marketing
Manager (Training)
Manager (Promotion)
Manager (Sales)
Manager (Training)
Manager (Promotion)
Design by customer
President (Marketing)
Sales People
Sales People
Sales People
President
Functional
Product
Europe Division
America Division
Gulf Division
Sales Organization
Key account sales
- focus on CRM - customer profitability and value analysis - the few accounts give incremental returns - national accounts
Sales process automation - EDI Electronic Data Exchange
Customer
Sales
Marketing
Technical Support
Manufacturing
Sales territory
a group of present and potential customers assigned to an individual sales person, a group of sales person, a branch, a dealer, a distributor or a marketing organization at a given period of time
Select the basic geographic control units Decide on the criteria for allocation Decide on the starting point Combine control units adjacent to starting point Compare territories on allocation criteria and conduct workload analysis Assign sales force to new territories Modify territorial boundaries to balance workload and potential
Territory shapes
circle
wedge
Clover leaf
Opportunity
The account may represent a good opportunity. The sales organization needs to overcome its competitive disadvantages and strengthen its position to capitalize on the opportunity.
Strategy
Commit high levels of sales resources to take advantage of the opportunity.
Strategy
Either direct a high level of sales resources to improve the position and to take advantage of the opportunity or shift resources to other accounts.
L o w
Opportunity
The account offers stable opportunity since the sale organization has differential advantages to serving them.
Opportunity
The account offers little opportunity. Its potential is small and the sales organization is at a competitive disadvantage in serving it.
Strategy
Strong
Strategy
Either commit a minimal level of resources to the account or consider abandoning the account altogether.
Weak
Sales Territories
New Territories..?