Marketing Exam 3, Lecture 19

role of sales

build and create mutually beneficial and profitable relationships through personal and organizational contact

why are sales important

business is defined by customer relationships, sales are the link between the firm and customers and sales people collect competitive intellegence

what drives customer loyalty

9% price, 38% quality and service, the buying experience 58%

marketing sales funnel 1

awarness - potential customers become aware of a product

marketing sales funnel 2

interest - prospects inquire and/or learn more about the product

marketing sales funnel 3

desire - prospects develop a conviction that this product is needed

marketing sales funnel 4

evaluation - prospects comapre alternatives

marketing sales funnel 5

purchase - customer selects a provider and the transaction occurs

marketing sales funnel 6

retention - relationship building and repeat business

marketing sales funnel 7

advocacy - customers spread positive word of mouth

selling is something you do to people

FALSE —> its something you do with and for someone

sales

uncovering problems and satisfying the needs and wants to benefit both parties

the nature of selling

building relationships, solving problems, delivering value

who are salespeople

anyone can learn to sell (introvert, extrovert, etc.)

selling and businesses

over 50% of business college graduates, regardless of major, begin their career in a sales role

SPIN selling S

S - situation, gather information and set the stage

SPIN selling P

problem, uncover pain points, issues, opportunities

SPIN selling I

implication - establish the ramifications of solving or not solving the problem

SPIN selling N

need payoff - help the client arrive at the conclusion on his/her own and invite further dialogue

why buyers say no

problem isn’t big enough, benefit < cost, better alternatives exist

value formula

benefit - cost

sales pipeline

tracks potential sales as they move through stages of the selling process

sales managment

planning, implementing, and control of the personal contact strategies designed to achieve sales objectives

sales managment defines

who prospects/customers are, what the value proposition is, and how the selling is done

3 customer types

intrinsic value, extrinsic value, strategic value

intrinsic value

focus on cost, commodoity, transactional (min cost + effort)

extrinsic value

focus on benefits, values sales force, extra value through added benefits, consultative

strategic value

shared capabilities that leverage buyer/seller competencies, co-create value through strategic partnership, enterprise

sales managment objectives

structure sales force, build sales force, create winning sales culture

self determination theory

motivation may be autonomous (intrisically-driven) or controlled (extrinsically-driven)

driver of intrinsic motivation

competence, relatedness, sense of purpose

marketing creates demand, what does sales do

converts demand into revenue