B2B Selling

Business-to-business (B2B) describes commerce transactions between businesses, such as

between a manufacturer and a wholesaler, or between a wholesaler and a retailer. Contrasting

terms are business-to-consumer (B2C) and business-to-government (B2G).

The volume of B2B (Business-to-Business) transactions is much higher than the volume of B2C

transactions. The primary reason for this is that in a typical supply chain there will be many B2B

transactions involving sub component or raw materials, and only one B2C transaction,

specifically sale of the finished product to the end customer. For example, an automobile

manufacturer makes several B2B transactions such as buying tires, glass for windscreens, and

rubber hoses for its vehicles. The final transaction, a finished vehicle sold to the consumer, is a

single (B2C) transaction.

B2B is also used in the context of communication and collaboration. Many businesses are now

using social media to connect with their consumers (B2C); however, they are now using similar

tools within the business so employees can connect with one another. When communication is

taking place amongst employees, this can be referred to as "B2B" communication

STEP #1. Discover where your customer is today. Before you call on a prospect, use the

Internet or business contacts find out as much as you can about where the prospect is

today, what’s going on with their business, where they’re having problems, how happy

they are with the products they’re currently using, etc. When you initially meet with your

first customer contact, ask open-ended questions to obtain information that fills in the

details you couldn’t find out through your research.

 STEP #2. Discover where your customer wants to be. After you’ve got a solid picture of

where the prospect is today, gradually transition the customer conversation to asking

questions about your contact’s vision for the future, what would it be like in a perfect

world, what’s worked so far, what could work better, how the contact would feel if that

problem were solved, etc. You need to understand the customer’s destination before you

can help your customer to arrive there.

 STEP #3. Position your solution as the best vehicle to get from the current situation to the

desired one. Based upon what you’ve learned in steps 1 and 2, craft a vision of a solution

that can help the customer make the transition to a better future situation. Present only

those elements of your products and services that are part of that tightly-focused solution.

Don’t confuse your customer with all the features and functions of your solution that are

irrelevant to his or her needs.

 STEP #4. Repeat steps 1 through 3 with multiple, increasingly important, contacts. Every

customer contact will have a different perspective on the current situation and the desired

goal. For each customer contact, discover that perspective and position your solution so

that each person involved views the solution as crucial to his or her long-term business

success. As the sales process continues, your solution will increasingly and widely

perceived as being of great value to the customer’s firm.

 STEP #5. Close the deal.  If you followed the four steps above, you have already

positioned yourself to close the deal.  The main thing here is to have the courage to

actually ask for the business, at the right time, and with the right people in the room.

Personal Selling

 Key Terms: order getting, order taking, supporting salespeople, prospecting, prepared

sales presentations, need satisfaction approach, AIDA, and relationship marketing.

 One important advantage of personal selling is that the selling pitch can be adjusted and

individualized to the prospect. Once you determine the prospect’s needs, you tailor the

sales pitch. Unfortunately, personal selling is extremely expensive. As noted previously,

door-to-door selling is disappearing in the area of consumer marketing. This is, however,

not true in the area of business-to-business marketing. Companies selling complex

products such as printing presses, buses, jets, computer systems, power plants, and other

expensive "installations" usually use salespeople to sell their products. These salespeople

are compensated quite well and a large number of them are college graduates.
 Personal selling is divided into three tasks

 Order getting – order getters attempt to increase their firm’s sales by selling to new

customers or by convincing current customers to buy more of a company’s products.

They are important to a company because they develop new business and are therefore

compensated quite well. Salespeople in computer stores or fancy clothing stores are often

order getters. Their job is to convince the customer to purchase an expensive computer or

a fancy outfit. They need to have persuasive abilities, and they generally receive

commissions plus salary.

 Order taking – order takers are involved in the routine completion of a sales. They

complete the sales transaction and mainly deal with the same or similar customers. A

sales clerk in a supermarket is an order taker. They are paid minimum wage and do not

have to persuade anyone to buy anything. Example: In a fancy women’s clothing store,

the order getter convinces the customer to purchase some very expensive gowns. She will

then take the customer with the merchandise to the order taker who will complete the

transaction and take care of such matters as payment, delivery, etc. A smart retailer does

not want to waste an order getter’s valuable time with such routine and mundane matters

as completing the order.

 Support Personnel – Do not make any sales but help facilitate the selling function.

There are two major types of support personnel: missionary salespeople and technical

specialists. A missionary salesperson for a drug company (i.e., a detailer) will visit
doctors and try to convince them to use various drugs manufactured by her company.

They do not sell anything and often leave many free samples with the doctors. Technical

specialists are necessary when very technical products are sold (e.g., advanced

computers). They have the ability to explain how to use the product and its limitations.

Some support personnel are sent to retailers to help them with displays and provide

advice about promoting the product.

The Personal Selling Process

Step 1: Prospecting and Qualifying

Prospecting, the first step in the personal selling process, focuses on developing a list of

potential customers (prospects). Both internal (a company’s own records) and external

sources can be used to prospect. Many salespeople use the telephone to prospect. Some

firms get names of prospects from list brokers. For instance, one firm that sells burglar

alarms purchases a list of new home buyers. One good way of getting leads is by running

a direct response ad in a magazine. For instance, Xerox might run an ad in a trade

publication describing a new copying machine that can make one million color copies a

month at a price of a few cents per copy. The ad will provide a toll-free number and offer

a free brochure describing this machine. Anyone who calls will be asked a few critical

questions (e.g., when do you expect to make a purchasing decision) and their name and

the company name will be entered into a database.

Qualifying deals with determining which prospects are most likely to purchase the

product. In some firms, prospects are rated A, B, C, D, and F depending on the chance
that they will purchase and the amount they might spend. In many firms, prospects who

plan on buying the product within 3 months are classified as "hot leads."

Step 2: Preapproach

A good salesperson attempts to know his/her prospect well. You want to know something

about the buyer’s company, the buyer’s specific product needs, and what brands are

currently being used. The more you know about your prospects, the easier it is to sell to

them. Knowing about a prospect’s needs also makes the salesperson more credible in the

eyes of the buyer.

Step 3: Approaching the Customer

Cold calls are not the most effective way of approaching customers. Some salespeople

spend a great deal of time canvassing an area trying to find prospects willing to listen to

their spiel without a prior appointment. This wastes a great deal of time since it may take

hours to find an individual with the authority to make the purchase willing to listen to the

sales pitch.

Step 4: Presentation Step = Making the sales presentation 

During the presentation step, the salesperson has a vital job.  S/he has to tell the prospect

the  "product story"  and highlight the benefits of the product.  You are familiar with the

term USP (unique selling proposition) that is used in advertising.  A good salesperson has

to convince prospects that the product is special and will provide important benefits.  Did
 you get a call from the college when you were a high school senior?  If you did, what

were you told that made you choose this college?  Research indicates that students

selecting a college are concerned with reputation and variety of programs to choose

from.  

Three types of sales presentations:

 Prepared sales presentation – The salesperson does almost all of the talking. Usually,

the entire sales pitch is "canned," i.e., the salesperson memorizes what s/he has to say.

This approach is used by many telemarketers who are trying to sell an inexpensive

product (e.g., home delivery of a paper or a warranty extension) and untrained people are

used for this type of selling. The entire training consists of reading a script. This is a

selling approach used by telemarketers that sell relatively inexpensive and uncomplicated

products or services (e.g., home delivery of a newspaper). The telemarketers are not

trained, other than being given a script to memorize, and have a very high turnover. The

pay is quite low and high school students are often used. If you were ever called by a

telemarketer trying to convince you to use a particular long distance service, you know

what I am talking about. The telemarketers do virtually all the talking and have no

interest in understanding (or satisfying) your needs.

 Need satisfaction approach – The customer does most of the talking and the salesperson

attempts to understand the customer’s needs. A problem solving approach is used. This

approach is good for complicated and expensive products. Salespeople need extensive

training for this approach. In fact, firms using the need satisfaction approach to selling

may require a six-month training period for their salespeople. If you get a job as a
 salesperson for IBM or Xerox selling high-technology products, this is the approach that

you will be taught.

 Selling formula approach – This is in between the first two approaches. Salespeople are

trained to use an approach similar to AIDA (Attention – Interest – Desire –Action). The

salesperson does most of the talking in the beginning of the selling pitch. Afterwards, the

customer is brought into the discussion to help clarify his/her needs. The training is not as

extensive as with the need satisfaction approach.

An important part of the preparation for the sales presentation involves Overcoming

Objections. It is important to anticipate and prepare counterarguments for any objections

that a prospect might have. For instance, if a prospect states that she likes the product but

her firm cannot afford it, a possible counterargument could be that financing is available

at very reasonable terms. Alternatively, the salesperson might note that the product

actually saves the company money in the long run and is therefore quite reasonably

priced.

Step 5: Closing the Sale

Here is where you are trying to get the order. The salesperson asks the prospect to buy the

product. One common approach is to assume that the prospect does want to buy the

product and to ask "when you do want delivery?" or "how many do you want?"

Step 6: Follow-up
 A good salesperson follows up and ensures that everything went well. Was the product

delivered on time? Is the customer satisfied? Any problems? By demonstrating that you

care about your customers, you will increase the chances that customers will continue to

buy from you and recommend you to others.  Marketing is all about customer satisfaction

and following up is necessary to determine whether or not  your customers are satisfied.

Compensating Salespeople

Most firms use a combination of a fixed salary and a commission based on sales.

Relationship Marketing

 Relationship marketing refers to a philosophy that a company that wishes to succeed

should maintain a strong, continuous, long-term relationship with its customers,

suppliers, and distributors. Companies that follow this philosophy understand the

importance of communicating with their customers, suppliers, and distributors on a

regular basis. In order to have this kind of relationship customers and intermediaries have

to feel good about doing business with the company. Also, customers and intermediaries

should find it easy to contact the company and feel welcome when communicating with

it. They should feel that they are part of a big family and that the company is upset if the

product or service fails to perform properly. Obviously, it is much easier to make

customers and intermediaries feel this way if you strive to understand their needs
Top 10 Strategies for Growing
10 strategies for growing yourbusiness when you provide services (and/or products) to other

businesses: (note: if you sell to consumers, these apply too)

1. Get your value figuring out-it is most important to your success

2. Decide who fits your model -- who are your best prospective customers

3. Understand your strengths, and focus on them.

4. Focus on asset-based thinking rather than deficit-based thinking

5. Prospect to warm leads and more probable-prospective customers

6. Grow your alliance network like a big web, and nurture it often

7. Appreciate existing customers and learn from them

8. Create systems and tools to track revenues, profits, expenses, and other metrics

9. Get great at selling . . . overcome the "selling is bad" mindset

10. Creatively build products, services, and the business as a whole

8 Powerful B2B Sales Lead Generation Techniques

Most of the fastest growing B2B companies do not rely solely on just one sales lead generation

method. They have a complete arsenal of sales lead generation tools at their fingertips, that they

can use at any given time.

Here are the eight proven B2B sales leads generation techniques gleaned from helping over 170

B2B companies reach their sales prospects:

1. Sales lead generation using relationship marketing

Relationship Marketing is the approach underlying all of the "sales-lead-generation-success"

methods. Relationship marketing simply refers to cultivating a personal, sales-winning

relationship with your prospects. It’s about developing longer-term relationships with customers

rather than individual transactions.

2. Sales lead generation through complementary partner referrals

By joining forces with complementary partners, you can instantly multiply your sales lead

generation pool and make it easier for companies to engage in doing business with you. Out of

all the sales lead generation programs available to you, complementary partner referral programs

can generate the highest qualified B2B sales leads.

3. Sale lead generation using search engine optimization and Internet marketing strategies

Business buyers are more sophisticated and getting harder to reach than ever. Studies show that

about 90% of business buyers start with research on the Internet, therefore it’s critical to have a
well-tuned sales lead generation program that includes search engine optimization

(SEO)/Internet marketing strategies to attract prospects at the beginning of their buying cycle.

4. Sales lead generation via telemarketing

Even though many people despise the thought of telemarketing, when executed properly it is a

very effective sales lead generation tool. Telemarketing is a personal marketing and sales lead

generation technique that offers a cost-effective, efficient alternative to field selling. However, it

can be significantly more expensive than direct mail or email.

By including telemarketing in your B2B sales lead generation marketing plan, you can reach up

to thirty decision-makers a day at a cost of $15 to $20 per contact. In contrast, with field sales

you can reach only four or five decision-makers a day at an average cost of $392 or more per

contact. Direct mail may cost as little as a dollar, and email is often much less. However, if you

consistently prospect and nurture leads via phone, you will consistently generate qualified sales

leads.

5. Sales lead generation with email publications

By creating your own email newsletter, you could send out industry news and tips to suspects in

your market. Since you will be on your prospects’ minds more often than your competition,

eventually, your sales leads will turn into actual sales.

6. Sales Lead Generation With Direct Mail

There is an entire industry of people like Dan Kennedy, Bob Bly, and Bill Glazer who are

dedicated to business-to-business selling through direct marketing. Sales letters can be an

excellent sales lead generation method. But, most sales and business professionals do not know

how to use this lead generation technique effectively and efficiently.

The complaint is a common one among B2B companies that depend on direct mail and direct

response marketing as their only sales lead generation program: "I'm sick of spending a fortune

to send out thousands of full-color catalogs and direct-mail pieces only to get a measly 1%

response rate. How can I cut costs and find a more practical way to get my target market to

respond to my direct mail or catalogs?"

7. Sales Lead Generation Using Print Advertising

When done correctly, print advertising can be a highly effective sales lead generation activity.

When using print advertising as your B2B sales leads generation method, you must remember to

focus your advertising's message on the benefits and applications of your products or services.

Then let the layout and design of your ads enhance your company's image. And, don’t forget to

only use publications that deliver messages directly to your targeted audience.

8. Sales Lead generation via Event Marketing

Whether you do it live, through the telephone (teleseminars) or via the Web (webinars), seminars

and workshops are a great sales lead generation tool. People who attend your seminar have an

interest in the information you are presenting and a need for your product or service.

The goal: Connect with customers in a meaningful way

By using these eight proven B2B sales leads generation methods gleaned from helping over 170

B2B companies reach their prospects, you will capture more sales-ready opportunities for your

salespeople to turn into new business, meaning greater sales revenue and profits for your

company.

Example Of B2B Selling

SALES MANAGER NOW (Service Provider To Business Firms)

Sales Manager Now manage sales people for small business owners that....

 Don't like managing sales people.

 Are having a hard time finding sales people that will stick.

 Want a sustainable sales program and have had difficulty creating one.

 Are not skilled in managing and growing a sales department.

 Believe their salespeople can produce more but can't get their arms around why they are

not.

 Want to keep costs down while sales revenue and the team grows.

 Are open to different ways to achieve results.

 Are looking for someone they can trust and count on.
Sales Manager Now will:

 Reduce turnover by hiring smart instead of often.

 Establish compensation plans that drive sales and profits.

 Develop sales systems that facilitate consistent sales results.

 Coach and train your sales team toward service-minded selling.

 Provide motivation, recognition and accountability.

 Increase sales and profits to the type of customer you prefer.

 Relieve you from sales management responsibility.

Their B2B Sales and Sales Management Process

When they are hired they become your sales manager, part of your team. They work with the

management teams of firms as well as the sales people. The process is dynamic and sales activity

will not be negatively affected as new or improved B2B sales processes and systems are being

developed. The B2B Sales Management Process map below will give a good idea on how they

work.

Sales

Management

Process

They make

outsourced sales
management work by focusing on sales activity that has the greatest impact on increasing sales

in the short term and long term. They understand how to teach, motivate and hold sales people

accountable to drive sales. Communication is a key to increasing production so they:

 Hold regular sales meetings to cover progress, education and new company initiatives.

 Coach each salesperson to focus improvement in areas of need.

 Use on line CRM systems to allow easy integration with Sales Manager Now and access

for ownership.

 Provide sales department progress reports to keep ownership in the loop.

 Are available by phone, email and on line meetings to assist sales people and answer

ownership questions.

They will teach your sales people Service-Minded Selling. The most current sales approach in

the industry which is focused on serving clients in a way that leads to sales today and for many

years to come.

Service Minded Selling Core Process Steps:

Sales Manager Now Uniqueness

What makes them different and effective is three-fold. First, are detached from the company

dynamics, which means all the interaction they have with your sales people is solely focused on

improving the sales process and, in turn, increasing sales revenue and profit. Focus is turned

toward what will work and how they can make it so.

Secondly, are professionals who have been hired to help turn companies around. They

understand the sales process, methods and company ingredients needed to make sales a success.

They don’t require any training from the company and come ready to rock and roll.
Lastly, by sharing firm’s Sales Manager Now manager with other companies it makes it

affordable for the firm to have a first class sales team at the budget you hoped for.