Sales Management: Shaping Future Sales Leaders

Chapter 2
(Text Book: Chapter 1)

Sales & Marketing Strategies, and

Functions of a Sales Manager…

Hamidul Islam [Hamid]

Senior Assistant Professor, Department of Marketing
1-1
Faculty of Business Administration, AIUB
Learning Objectives

 Who is a Sales manager and how he/she can become an

effective Sales manager
 Define strategy hierarchy and understand how sales and
marketing strategies affect overall strategy
 Discuss different sales & business growth, and customer
relationship strategies to support sales
 Identify different types of selling strategies and how the
selling process varies
 Explain different steps in the personal selling process
 Describe the sales management process and
responsibilities of field sales managers & sales executives
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From Sales Rep to Sales Manager

 Sales Managers are basically

“Managers of People”
 Sales Managers need to manage,
motivate, and monitor salespeople,
while salespeople sell products and
services.
 Most successful sales representatives
are eventually pressured to make the
transition to sales management
“This is a decision that must be carefully
analyzed because it’s not an easy
transition to go from being a Player to a
Coach.”
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What Being a Sales Manager Means

Coaching  Coaching salespeople, so they can improve

 Developing strategies and delegating the

Developing responsibility for implementation to others

 Figuring out how to motivate people, specially

Motivating some who are older than you

 Convincing others that what is right for the sales

Convincing force is right for their departments, too

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The Strategy Hierarchy

Strategy Hierarchy is the way where strategy starts

at the top of the organization and flows down to the
individual departments/ groups in a company.
 Corporate Strategy encompasses plans and goals
for the entire organization. (Based on what it wants to
accomplish in the larger environment)

 Address questions such as what markets and sourcing

options company should engage.
 Ex: Hire sales force vs. use of distributors
 Ex: Outsource mfg. and focus internally on marketing
 Business units create their plans to support corporate
strategy.
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The Strategy Hierarchy

Corporate
Strategy

Marketing Strategy

Sales Strategy

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Creating a Marketing Strategy

Markets  What markets do we serve with what products?

 What types of relationships do we form and with

Relationships whom?

 What level of investment will be required, and

Investment how will we locate and allocate the needed
resources?

 What are the detailed objectives and action

Objectives plans?

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What Markets Do We Serve with
What Products?

 Effective Market
Segmentation, Targeting and
Positioning required
 The challenge is to find a
sustainable competitive
advantage
 To achieve competitive
advantage a firm needs
expertise, technology or a
patent that is difficult for others
to copy.
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Product-Market Grid/
Sales Growth Model

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Market Penetration Strategy

Seeking a larger market share in a market in which

organization already has an offering.

This strategy involves:

Attempts to increase present buyer’s usage or

consumption rates of the offering.

Stimulating product trial among the potential

consumers.

Attracting buyers of competing offerings.

Offering special price and other incentives.

Market Development Strategy

Introducing its existing offerings to markets other than

those that the organization is currently serving.

Reaching new markets requires:

Targeting most potential areas and customers.

Carefully considering existing competitor’s

strengths, weaknesses & their retaliation potential.
Increasing Channels of distribution.
Change in sales effort and advertising.
Modification of price if required.
Market Development in the International Arena

Direct Licensing or
Exporting Franchising

Joint Venture
Direct
or Strategic
Investment
Alliance
Product Development Strategy

Creating new or modified offerings for existing

markets.

This approach may be taken for:

Product Innovation – developing totally new

offerings for the market.

Product line extension – broadening the existing

line of offerings by adding more tastes, sizes, forms,
flavors, etc.

Product Augmentation – enhancing the value to

customers of existing offerings by adding benefits.
Diversification Strategy

Development or acquisition of offerings new to the

organization and introducing those offerings to publics
not previously served by the organization.

Growing trend in recent years.

High-risk strategy because both the offering
and market served are new to the organization.
Special marketing and selling skills required to
manage both new product & market.
What Types of Relationships Do We Form
and with Whom?

 Strategic plan considers network of

relationships
 Investors, potential investors, bankers
 Suppliers, distributors, agents
 Personnel sources
 Regulatory agencies

 Relationship with customers is most

important
 Customers’ Lifetime Value is worth
more than the average single
purchase
 A service advantage is often a
function of the quality of relationships

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Customer Relationship Management (CRM):
Key Terms

 CRM: identifying and grouping customers to best

acquire, retain, and grow customers.
Sales and Marketing teams are responsible for CRM
 Customer acquisition strategy: plan designed to
obtain new customers for the organization
 Customer retention strategy: plan designed to
keep (continue) customers with the organization
 Growth strategy: plan designed to increase sales
(share of wallet) to the same customers
 Up-selling
 Cross selling
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What Level of Investment Will Be Required,
and How Will We Allocate the Needed Resources?

Money, human or social capital

 Human capital decisions include:
 Determining number of salespeople
 What skills and experience they must have?
 What training they require?

 Social capital decision include:

 Networking and Profitable business relationships with different potential
stakeholders

 Other decisions include:

 Who handles customer service (a sales representative or a customer
service representatives)?
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What Are the Detailed Objectives and
Action Plans?

 SMART format for establishing objectives

S pecific
Measurable
A chievable, yet challenging
R ealistic
T ime-based

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Selling Approaches

Types of Selling Approaches:

 Transactional Selling Approach
 Affiliative Selling Approach
 Problem Solving Selling Approach
 Enterprise Selling Approach

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Selling Approaches

 Finish sale as quickly and as easily as possible.

 Key to success is making as many calls as
Transactional possible to as many people as possible.
Selling Approach  Applicable when the products are general and
the customers are aware about the benefits.
 Effective for B2C selling situations.

 Based on the friendship/ relationship between the

salesperson and the individual customer.
 Trusted business advisor and partner relationship
Affiliative between buyer and seller.
Selling Approach  Applicable when the products are expensive, little
complicated/ sensitive &, or have less number of
customers.
 Effective for both B2C and B2B selling situations.
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Selling Approaches

 Identify and solve a client’s problems.

 Also called needs-satisfaction selling or problem-
Problem Solving solution selling.
or Consultative
Selling Approach  Applicable for customized solutions where the
customer’s needs varies between buyer to buyer.
 Effective for both B2C and B2B selling situations.

 Selling and serving the customers/ clients as a

strategic partner.
 Based on not only person-to-person relationships
Enterprise but on company-to-company relationships.
Selling Approach
 Applicable for large purchase and long term
relationships between suppliers and buyers.
 Effective for B2B selling situations.
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Steps of Effective Selling Process:
The 8 Steps of Personal selling

Prospecting
Pre- Approac Need
&
approach h Identification
Qualifying
Identify
Learn as much Make a Identify customer’s
qualified
as possible relationship actual requirement
potential
about customer
customers

Presentation
& Handling Closing
Follow-up
Demonstratio Objections Sale
n
Ask for an
Tell the product “story” & Overcome customer To insure customer
order/ Sale
focus on customer benefits objections satisfaction
confirmatio
& repeat business
n
Prospecting and Qualifying

 Prospecting is the process of searching and

identifying potential customers (Prospects/ Qualified
sales Leads) for a particular product.
 A prospect is a MAD buyer who have
- Money to spend
- Authority to buy
- Desire to buy the product
 Prospects may be Individuals or
Institutions.
 Company Sales records, Referrals, Customer feedback,
Cold calling, Communication tools etc. are the prominent
sources for prospecting.
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Pre-Approach

 Pre-Approach is the second step in the selling

process and it’s a home work/ preparation.
 During Pre-Approach, the salesperson tries to
learn possible everything he can about the
account (customer).
 It is primary study about the customer
 It is the way to gather level best information.
 It can take a significant amount of time.
 It is an initial sort listing based on available information.

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Pre-Approach

 It refers focusing on understanding customer

needs, & characteristics and then preparing a
proposal plan on how the product or service
offered can satisfy the need.

 Steps involved are:

- Determining call objectives.
- Development of customer profile.
- Determining customer benefits.
- Determining the flow and content of the presentation.
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Approach

 Approach is the stage when a salesperson asks

the buyer to commit to a meeting/ interview.
 This is the firs step of direct/ face to face communication
& relationships.
 In this stage the prospect and the salesman come in
contact with each other face to face.
 Opening statement must get buyer’s attention.
 Generally the prospects are busy a lot, that is why the
salesman must keep on trying to obtain an interview with
the prospect.
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Needs Identification

 Needs identification is the stage when the

salesperson will ask different types of questions to
the prospect and confirms prospect is a MAD
(Money, Authority, Desire) buyer and tries to
know his/her needs.

 This step comprised of 3 elements:

1
Questioning
2
Identification
3
1-27 Pre-commitment
Needs Identification

3 basic types of questions enables a salesperson to discover

the needs of a potential customer.
 The Open ended Questions: Allows the prospect the
freedom to go where ever they like. For instance the “who,
what, where, when, how and why” types of questions.
 The Closed ended Questions: Like “would you tell me
more”, “what do you mean by… Answers to these gives a
salesperson information to helping the prospect and building
trust.
 “Yes or No” Questions: That demands a direct response.
For example: “do you agree..”, “would my proposal..”
“are we in agreement..” They allows a salesperson to
check on his/her progress on the sales process.
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Presentation and Demonstrations

 Presentation and Demonstrations is the stage

when the salesperson describes about the
products and how it meets buyer’s needs.
 A good presentation is as important as product.
 Attractive presentation can be made by using the
following hints; FEBA approach -

Feature Evidence

Benefit Agreement
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Presentation and Demonstrations

 The focus of the sales presentation is the

salesperson’s explanation of how the features of the
product provide “benefits”.
 Presentation may be flexible or memorized.
 The salesperson should be prepared to provide
documentation for any statements of fact that are
made.
 The ultimate outcome from a successful
presentation are attracting Attention, creating
Interest, building Desire & Conviction and initiate
Action to buy.
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 Handling Objections

 Objections are the reasons, oppositions, or

complains a buyer initiates/ raise not to buy the
product during the presentation or while asking for
the order.
 It Can occur at any time (any stage).
 Customer can show objections from following grounds:
- Psychological (Hidden) – includes pre-determined
ideas or beliefs, preference for other established brands,
suspect about quality etc.
- Logical or practical (Real) – includes
delivery schedule, high price, product
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availability etc.
Handling Objections

 Objections should be welcomed.

 Objections indicate that the prospect is involved
and not indifferent.
 Objections reflect the prospect’s view.
 So, a Salesperson should find out root of concern
and resolve it through listening it carefully,
understanding properly and negotiating the issue
smartly in a polite manner.

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Handling Objections

Methods of Handling Objections

 Ask questions: Listen, rephrase, reconfirm the
objection and explain.
 Turn objection into a benefit and trial close.
 Deny objections tactfully. (Arrogance and sarcasm
to be strictly avoided)
 Share of Information, Testimonials, and Referrals
that will ensure customer’s confidence in making
the purchase.
 Compensation for valid objections.
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Closing the Sale

 Closing the sale is the last stage of personal

selling process when salesperson asks buyer for
order.
 The main aim of the close is to convince the buyer
to sign the order form or to place an order
immediately rather than in the future.
 A good close contains:
 Reinforcing decision to buy
 Confirming implementation schedule
 Thanking the buyer
 Asking for referrals
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Follow-Up

 Follow-Up (staying in touch) refers maintaining a

connection with the buyer after selling and delivering
the product.
 After delivery, ensure that the customer has good
experience with product.
 Training, services, customer friendly
policies and procedures are the way
to maintain a good follow up.
 It the most important part because,
performance of follow up may lead
the buyer to continue, modify or
end a relationship.
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Selling Process vs. Selling Approach

Selling Approach Selling Process

Prospecting
Transactional

Affiliative

Consultative Closing

Presenting
Enterprise

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Sales Leaders

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Responsibilities of Sales Executive

 Developing sales plan (assign regional or

divisional quota) to meet strategic objectives.
Plan
 Finding general strategies that specify sales
approach.

 Determining type of sales force.

Organize  Creating hiring and training policies and
strategies.

 Communicating and roll out the plan.

Implement  Creating the right (ethical practice) culture.
 Choosing a compensation model.
 Sales levels and customer satisfaction.
Monitor  Salesperson recruitment, selection, training.
1-38  Taking corrective action as necessary.
Responsibilities of Field Sales Manager

 Field sales mangers are first-line managers of a

company.
 Salespeople report to Field Sales Manager.
 Field Sales Managers Plans, organizes,
implements, and monitors for specific sales
team.
 Primary responsibility is to achieve sales quota.
 Responsible for training and motivating
salespeople individually or by team.
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Sales Executive vs.
Field Sales Manager’s Responsibilities

Activity Sales Executive Field Sales Manager

Setting overall sales targets Setting quotas for each
Plan for each product/ territory salesperson for each product

Deciding what type of people Interviewing and hire specific

Organize to hire for sales positions people for sales positions

Creating hiring, training, Identifying each person’s

cultural policies and motivators and finding ways to
Implement determining the reward good performance for
compensation plan each person

Tracking sales by region; and Observing each salesperson’s

taking corrective action such actions in the field and
Monitor as additional training if sales offering suggestions for their
are too low possible improvements

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END of the CHAPTER