Pro Selling

What Is Personal Selling?

  • Definition: Personal Selling refers to human-driven interactions between individuals or organizations designed to create economic exchange within a value-creation context.

How Personal Selling Provides Value

Key Terms

  • CVP (Customer Value Proposition): A collection of buyer-specific benefits.
  • PVE (Personal Value Equation): Customer benefits received relative to the price, time, and effort required to purchase.
  • CLV (Customer Lifetime Value): Measure of how much revenue a company can expect from one customer over their full relationship.

Go-to-Market Strategies

  • Sales-Force Intensive Strategy: A strategy where sales representatives are the primary sales tool, making the building of partnerships essential.

Responsibilities of a Sales Representative

  • Identify key influencers and decision-makers.
  • Encourage cooperation and build trust.
  • Facilitate communication.
  • Manage conflicts effectively.
  • Help close solutions that benefit all parties.
  • Assist others in understanding their perception of value.
  • Shift or enhance the customer’s perspective.
  • Engage with various stakeholders including:
    • Internet / Online
    • Business Partners
    • Resellers
    • Manufacturers
    • Franchises
    • Telemarketers
    • Field Sales Representatives
  • Key activities of sales representatives include:
    • Prospecting new customers
    • Delivering sales presentations
    • Demonstrating products
    • Negotiating price and delivery terms

Client Relationship Manager

  • Role: A customer-centric position focused on maintaining and enhancing relationships with customers.

Account Team Manager

  • Role: Coordinates team activities in a sales context.
  • Team Selling: Increasingly popular to enhance collaboration and effectiveness in meeting customer needs.

Supply Chain, Logistics & Channels

Supply Chain Logistics

  • Definition: How products move from producer to buyer.

Channels

  • Definition: The people or companies involved in the movement of products.

Information Provider to the Firm

  • Sales representatives serve as the “eyes and ears” of the company, providing valuable insights into customer needs and market conditions.

Customer Relationship Management (CRM)

  • Refers to managing interactions with current and potential customers to optimize relationships.

Business-to-Business (B2B) Channels

Sales Representative Titles

  • Common functions include:
    • Writing orders
    • Following up with existing customers to increase sales
    • Providing 24/7 service
    • Offering solutions
    • Managing after-sale service
    • Ensuring on-time delivery
    • Ensuring proper installation of equipment
    • Providing training for operators
    • Quickly resolving issues.

Types of Sales Representatives

  • Industrial (Manufacturer’s) Rep: Sells directly from the manufacturer to the customer.
  • Trade Rep: Sells to distributors who then resell.
  • Distributor Rep: Sells a mix of products on behalf of multiple manufacturers.
  • Missionary Rep: Promotes increased sales but does not take orders directly.
  • Agents: Independent sellers of products they do not own.
  • Retail Reps: Sell directly to consumers.

Everyone Sells

  • Sales skills are beneficial in various contexts like:
    • Building friendships and relationships
    • Job interviews and salary negotiations
    • Influencing others and assuming leadership roles.

Ethics

  • Definition: Principles governing individual or group behavior.
  • Ethical Selling: Engaging in behavior that respects both the buyer and seller's rights.
  • Manipulation: Unfairly limiting or reducing a buyer's choices.
  • Persuasion: Influencing a buyer’s decision based on clarity and benefit.

Common Areas of Ethical Concern

  • Using deception
  • Offering bribes, kickbacks, or expensive gifts
  • Providing special treatment
  • Divulging confidential information
  • Engaging in backdoor selling.

Problem Areas

  • Switching Jobs: Challenges in maintaining ethics during transitions.
  • Sexual Harassment: Ethical violations in workplace interactions.
  • Poaching: Inappropriate solicitation of another agent's territory.

Definitions Related to Sales

  • Agent: A person who acts on behalf of another.
  • Sale: Transfer of title to goods in exchange for a price.
  • Offer: Occurs when a specific quote is provided by a salesperson.

Types of Agreements

  • FOB Destination: Seller retains title until goods are received.
  • FOB Factory: Buyer gains title when goods leave the seller's facility.
  • Good Faith Warranty: Oral agreements are as reputable as written ones.

Illegal Business Practices

Reasons for Purchasing

  • Expressed Warranty: Explicit terms related to product quality.
  • Implied Warranty: Understandings that come with a purchase.
  • Business Defamation: Unfounded negative statements about a company.
  • Reciprocity: Obligation to engage in mutually beneficial transactions.
  • Tying Agreement: Forcing a buyer to commit to several products.

Types of Customers

  • Manufacturers: Purchase for production.
  • Resellers: Buy and sell products to consumers.
  • Government Agencies: Purchase goods and services for public sector use.
  • Institutions: Such as schools and hospitals.
  • Consumers: End-users purchasing for personal use.

Capital Equipment Purchases

  • Definitions:
    • OEM Purchases: Original equipment manufacture; components used in final products.
    • End User Purchases: Companies buying products for internal consumption.
    • Major Purchases: Significant financial commitments for resources or equipment.

MRO Supplies

  • Definition: Maintenance, Repair, and Overhaul supplies like paper towels and replacement parts.
  • Services: Examples include internet and telephone connections, employment agencies, and transportation solutions.

Resellers Considerations

  • Buying process concerns include:
    • Derived Demand: Sales based on demand for the final product.
  • Buying Process Stages:
    1. Recognition of need
    2. Definition of the product type needed
    3. Development of specifications
    4. Search for qualified suppliers
    5. Acquisition of proposals
    6. Evaluation and selection
    7. Order placement and evaluation of performance.

Categories of Buying Needs

  • Rational Needs: Based on facts and logical criteria.
  • Emotional Needs: Not quantifiable; often related to morale and satisfaction.
  • Economic Criteria: Emphasizes demand for the lowest price.
  • Quality Criteria: Reflects expectations of product quality.
  • Service Criteria: Expectations around service levels.

Supply Chain Management

  • Definition: Programs facilitating low-cost, timely flow of products to and from producers and buyers.
  • Just-in-Time (JIT): Inventory control technique ensuring timely delivery.
  • Electronic Data Interchange (EDI): Automated systems coordinating logistics effectively.
  • Automatic Replenishment: Systems designed to reorder stock when it runs low.

Communication in Sales

Buying Center of an Organization

  • Roles:
    • Users
    • Initiators
    • Influencers
    • Gatekeepers
    • Deciders
  • Life-Cycle Costing: Method calculating total cost of ownership over the useful life of a product.

Communication Principles

  • Interpersonal Communication
    • Two-way interaction involving encoding (sending) and decoding (receiving and interpreting) messages.
    • Feedback: Response to communication efforts.
  • Key Issues in Communication:
    • Voice characteristics, rate of speech, loudness, inflection, articulation, and bodily comfort.

Effective Listening and Nonverbals

  • Listening Rule: Allocate 80% of time to listening and 20% to talking.
  • Nonverbal Signals: Includes body angle, facial expressions, arm movements, leg placement, and overall appearance (dressing appropriately as a salesperson).

Communicating via Technology

Technology Communication Methods

  • Varied levels of interaction and quantity conveyed.
  • Telephone Communications: Politeness, enthusiasm, and active listening are pivotal.

Presentation Techniques

Types of Presentations

  • Standard Memorized Presentation: Fully scripted, uniform approach with limited effectiveness.
  • Outlined Presentation:
    • Similar introductions and answers.
    • Detailed customization based on customer needs analysis.

Adaptive Selling

  • Definition: Ability to alter sales behavior according to the selling situation.
    • Involves adjusting the content or format of the sales presentation as per customer's desired relationship.
  • Pros: Enhances buyer trust and commitment, leading to higher sales performance.
  • Cons: Requires more time and creative effort to develop effective approaches.

Learning from Experiences

  • Strategies for improving sales include observing top performers and receiving feedback from sales managers regarding performance and diagnostics.