Sales Management

- inexperienced low-qualified salespeople

- uncritical customers

- customers wanting functional products at moderate price

- straightforward, low-complexity buying decisions

- severy time constraints

- B2C rather than B2B

- Examples: telesales, door-to-door selling of customer goods, vacuum cleaners, etc. 

- Assumption: almost identical sales process for all customers, comprising different mental stages ("Mental Stages Selling")

- Seller leads customer through these stages by means of certain stimuli

- pre-structured presentation follows a general schedule similar to formula

- first and most commonly used formula: AIDA model

- Salesperson has control over large part of presentation (60-70% of talking time)

- focus on offering presented

- salesperson dominated beginning of presentation

- subsequently customer gets opportunity to raise questions and comments

- salesperson regains control towards end of presentation to get customer to sign contract

Pro: 

- little demands on salesperson

- gives security to inexperienced salespeople

- stronger customer involvement through anticipated questions and objections

- guarantees structured transmission of all information content relevant for the seller

Cons:

- higher demands on the salesperson compared to stimulus-response selling

- customer interruptions complicate determination of the right stage (mental stage) and disturb the pre-planned selling process

- stages frequently run through in different orders, in parallel or forward- and backward-jumping

- assumes that most buyers think alike 

- presentation not adapted to customer needs

- Re-buy situations --> sales without initual need assessment

- consumer goods

- customer-initiated selling situations --> attention and interest presumably given

- non-complex selling situations

- B2C (and B2B)

- Example: retail sales

- Process of supporting customers in achieving their strategic goals

- seller and buyer engage in a partnership --> disclosure, confirmation and joing achievement of strategic goals 

- Strategic Orchestrator

- Business Consultant

- Long-term Ally

- mobilize and coordinate information, resources and activities

- select team members, team coordination and representation with customer

- Support customer's business

- understand customer's business and market environment (internal and external sources)

- customer support even without own product sales

- achieve win-win-situation --> Salesperson is interested in long-term success with customer

- Strong collaboration with customer (higher customer loyalty through entrusted customer information)

- Comprehensive understanding of customer motives through long-term partnership

- Higher demands on the salesperson (knowledge required for consulting)

- Higher investment (gathering and integrating diverse competencies, long-term consulting)

- product or service can be differentiated from competitive alternatives

- product or service can be adapted to the needs of the customer

- customer is not completely clear about how the product or service provides solutions or adds value

- delivery, installation, or use of the produt or service requires coordinated support from the selling organization

- the benefits of the product or service justify the relatively high cost of consultative relationships

- core competency, sales fundamental: ctirical to increasing sales

- hard work, delayed payoff, 

- requires design and discipline

- enhanced by software

- building a prospect list

- "the initial approach to a prospective customer"

- Who is likely to have the greates influence to initiate the purchase process?

- obtain information needed to qualify a prospect

- identify key decision makers, desires, and relative influence

- for very complex sales, consider multilevel or team selling

- Does prospect have a need for product?

- Possible to make prospect aware of need?

- Will the sale be profitable to my company?

Purpose

- Transmit information

- Persuade prospect to become a customer

Common complaints about sales presentations:

- Running down competitors

- Too aggressive or abrasive

- inadequate knowledge of competitors' products and services

- inadequate knowledge of client business/organization

- poor delivery

begins with first contact

paced by salesperson

requires:

- asking for the order

- trial close

- respond to objections

- understanding the prospect and buying process

- Excellent service bolsters loyalty

- Follow up to check satisfaction: product, installation, training, maintenance, billing

- satisfied customers = repeat customers

1) Competition

- Global competition

- Shorter Product Cycles

- Blurred Boundaries

2) Customers

- Fewer Suppliers

- Rising Expectations

- Increasing power

LEADS TO

Selling Process: 

- Relationship Selling

- Sales Teams

- Inside Selling

- Productivity Metrics

- Relatively permanent, customer-focused group

- Membership determined by job assignment to a specific buying organization

- one team per buyint unit

- membership relatively stable

- characteristics of team depend on characteristics of buying organization

- mission is strategic with respect to the buying organization

- relatively temporary, transaction-focused group

- membership determined by involvement in sales transaction for a particular good or service

- one selling center per sales opportunity

- membership very fluid

- characteristics of team depend on characteristics of sales opportunity

- mission is tactical with respect to the sales opportunity

- initiators: perceive problems/opportunities requiring new product or service

- users

- influencers: provide informatino for evaluating products or suppliers

- gatekeepers: control flow of information 

- buyers: contact selling organization and place order

- deciders: final authority to purchase

- controllers: determine budget

- buyers

- deciders

- controllers

1) What is the best way to segment the market?

2) What channel activity is required for each segment?

3) What portfolio of channel participants should perform the channel activities?

4) How should the channel be designed? Direct or indirect sales force?

1) 

- go-to-market strategy

- Marketing Strategy

- Sales- Marketing Cooperation

2)

- Sales force size

- Sales force strategy

- Sales force structure

- Compensation strategy

- Sales force selection and culture

- make or buy

- control system

- training & skills transmission strategy

3) STACS

- sales force operations

- territory design

- allocation across products and markets

- Compensation plan design

- supervision 

4)

- response function

5)

selling product

Decision about 

- type of salesforce

- size of salesforce

- kind and degree of specialization 

the degree of controllability

profit implications

as long as its marginal profit is higher than the marginal costs of coordination

- Line Organization

- Line and staff organization

- Functional organization

- Matrix organization 

- Line organization

- Line and staff organization

- Functional organization

- Matrix organization

- vertical

- chain of command runs from chief sales executive down through levels of subordinates

- each subordinate responsible to one person

- Vertical (most common)

- Several sales management activities assigned to seperate specialists

- Staff managers only make recommendations or assist line managers