basics of sales management

Selling

Providing a service or exchanging a good for an amount of money, negotiated along with other details of the delivery process such as date, quantity, format, product characteristics, and payment terms.

Influencing

The act of persuading and motivating others to take a specific position or accept a proposal or advice to achieve goals.

Favorable environment

Creating conditions that motivate and encourage others to make decisions that support a brand, project, or idea.

Potential customers

Individuals who have the potential to make a purchase, but have different needs and motivations.

Reactive approach

Salespeople intervene when they are asked to do so by the customer. This is the _____

Transactional salesperson

Delivers what the customer requests without providing additional advice or guidance.

Consultative salesperson

Advises the customer on the product or service when making a purchase, providing guidance and expertise.

Problem-solver

A salesperson who solves customers' problems by providing products or services that meet their needs.

B2C sales

Sales where customers buy products or services for their own consumption.

B2B sales

Sales involving selling to organizations or in _____ markets, where the buyers play a role in the supply chain of an organization.

Fast-moving consumer goods (FMCG)

Low-cost products that are purchased regularly and frequently.

Semi-durable goods

Products that are bought less frequently than FMCG and require more consideration before purchase.

Durable goods

Products that are bought infrequently and are expensive, with a slow and rational decision-making process.

Complex sale

A sale that involves specific circumstances and considerations, requiring a higher level of expertise and problem-solving.

Complex sales

This is a complex when the decision-making process is long and involves multiple decision-makers and authorization from top-level management. The characteristics of the products or services can also add complexity to this process

Strategic sale

A sale is _____ when it impacts a company's operations in the long term, is hard to undo, involves opportunity costs, and alters the balance or status quo before the purchase is made.

Buying center

This procurement unit, or purchasing department is a team responsible for acquiring a product or service based on specific characteristics and constraints.

RFQ

It stands for request for quotation, where a group of suppliers is asked to submit their best quotation based on financial and technical conditions.

Initiator

They are the person within the organization who detects the problem or mobilizes the organization to start the purchasing process.

Influencer

They are a member of the purchasing department who is turned to for their technical knowledge and experience. They have the power to rule out a supplier but not the power to approve a solution.

Gatekeeper

This person regulates the purchasing process internally, determines the timing, chooses participating suppliers, and may be an expert in certain product categories.

Buyer

They manage documentation, exchange information in the RFQ, and prepares contracts. They can be a buyer, intern, administrative assistant, or a third party from an outsourced company.

Decider

they are responsible for implementing the purchasing decision made by another member of the purchasing department. They make the final decision, accept the terms of the agreement, and may not be responsible for signing the contract.

User

This person shares opinions on the benefits the company will obtain from purchasing a product and its impacts on operations.

Personal selling process

This process involves stages such as planning, preparation, meeting, and follow-up. It varies depending on the product, complexity of the buying process, and sales cycle length.

Planning

The first stage the personal selling process involves _____ sales visits, deciding which customers to visit and how often.

Preparation

The second stage of the personal selling process focuses on a specific customer, involving collecting and organizing information about the interlocutor and preparing for successful sales.

GAIN guidelines for preparation

The guidelines and objectives that need to be prepared before interacting with a customer, including gathering information from various sources and setting goals for the meeting.

Positive opening

Creating a good atmosphere at the beginning of an in-person meeting by mentioning company news, previous interactions, or personal details about the customer.

Exploring needs and detecting problems

Using a combination of open-ended and closed-ended questions to identify the customer's needs and problems that can be solved by the offered solution.

Proposing a solution

Presenting how the offered solution can solve the customer's problem and emphasizing the benefits and advantages they will gain.

Managing objections

Addressing any doubts or concerns the customer may have, exploring reasons for potential rejection, and negotiating supply details.

Closing

Interpreting the customer's behavior and proposing the signing of a supply agreement to finalize the deal.

Active listening

Actively paying attention and engaging in the personal selling process, especially during the stage of identifying needs, to show interest and explore business opportunities.

Open-ended questions

Using questions that start with how, when, what, why, or who to encourage a more detailed and open conversation with the customer.

Close-ended questions

Using questions that can be answered with a simple yes or no to confirm information and keep the conversation flowing.

Follow-up

The process of following up after an in-person meeting, especially when a sale hasn't been closed or objectives haven't been met, to analyze and learn from failures and continue developing prospects.

Contingency plans

Implementing alternative plans involving other collaborators or managers to redirect the situation with the prospect or customer if needed.