Sales Skills For Business Success

Unit 2
2.1 Strategic Sales Management
• A sales strategy is defined as a documented
plan for positioning and selling your product
or service to qualified buyers in a way that
differentiates your solution from your
competitors. Sales strategies are meant to
provide clear objectives and guidance to
your sales organization.
 Sales Objectives, Strategies and Tactics
The main components of planning in a company are
objectives, strategies and tactics. Their relationship is
shown below

Decide / Set Evolve Tactics /

Develop Strategies Action Plans
Objectives

E.G. A company wants to increase sales of electric

motors by 15 percent, as one of the sales objectives.
 To illustrate the relationship between sales objectives,
strategies and tactics, consider:
Sales Goals / Marketing Sales and Distribution Strategy Tactics /
Objectives Strategy Action plans

 Increase  Enter export  Identify the countries  Marketing / sales head to get
sales volume markets relevant information
by 15  Decide distribution channels  Negotiate and sign
percent agreements in 3-5 months
with intermediaries

 Penetrate  Review and improve  Add channels and members

existing salesforce training, motivation  Train salespeople in
domestic and compensation deficient areas
markets  Use effective and efficient  Train field salesmanagers in
channels effective supervision
 Link sales volume quotas to
the incentive scheme of the
compensation plan
 Selling Strategies
• Penetrating Existing Market
 Training Sales Force
 Motivation
 Promotional Scheme
 Deciding Product- Mix as per demand analysis
 Rationalizing Pricing
 Adding up more Channel Partners
 Selling Strategies
• Opening Up New Markets
 Exploring New Geographical Markets
 Adding more product range
 Adding New Market Channels
 Institutional Sales
 Financing Arrangements
 Government Sales
 Direct Selling
 Opening C&F Agencies
 Selling Strategies
• New Trend
• E- Commerce Website
• Social Media Platforms
• Exhibitions
• Demonstrating product in Malls / Street Kiosk
• Door to Door Sales Campaigns
• After Sales Service
• Feed back- prospecting Customer for new product
• Tele- Marketing
• TV Marketing
 Emerging Trends in Sales Management

• Global perspective
• Revolution in technology
• Customer relationship management (CRM)
• Salesforce diversity
• Team selling approach
• Managing multi-channels
• Ethical and social issues
• Sales professionalism
2.3 Sales Planning
• Sales Planning is the process of organizing activities that
are mandatory to achieve business goals. A sales
plan contains a strategic document that figures out your
business targets and several resources. These can be
used for some activities which you perform to reach
your desired goal.
• What are the 7 steps to creating a sales plan?
1. Assess Where You've Been and Where You Are Now. ...
2. Create A Clear Ideal Customer Profile. ...
3. Time For A SWOT Analysis. ...
4. Set A Clear Market Strategy. ...
5. Create Clear Revenue Goals. ...
6. Develop And Communicate Clear Positioning. ...
7. Clear Action Plan.
 Planning In A Large Organisation
Organisational Organisation Structure Type of
Levels Planning

Corporate Corporate Office Corporate

Strategic
Planning

Division / SBU SBU SBU Divisional /

Business Unit / ‘A’ ‘B’ ‘C’ SBU Strategic
SBU Planning

Product /
Product Product Product Product Operational
‘x’ ‘y’ ‘z’ Planning

• For effective planning, operations, and control, a large multi-

product / multi-business firm divides its major products /
services into divisions / strategic business units ( SBUs)
• Each SBU has a separate business, a set of competitors and
customers, and a manager responsible for strategic planning,
performance, and control
 Role of Marketing in Organisational Planning
Type of Role of Marketing – Key Tasks Formal
Planning Name

• Corporate • Provide customer and competition • Corporate

strategic information marketing
planning • Support customer orientation

• Divisional / • Provide customer and competition • Strategic

SBU analysis marketing
Strategic • Develop competitive advantage, target
planning markets, value proposition, positioning

• Product / • Evolve and implement marketing plan • Marketing

functional or including marketing-mix strategy, and sales management
Operational strategy
planning
 Marketing and Sales Strategies
• Figure below shows how sales strategy is developed from marketing
strategy Sales promotion
strategy
Product /
service
strategy
Target
Advertising
market
strategy
strategy
(Long- Promotion /
term) IMC* strategy

Marketing
Personal selling / sales
Strategy
strategy
Price
Marketing strategy
mix strategy
(Short-term)
Public relations & Publicity
strategy

Distribution
strategy
Direct marketing
strategy

* IMC: Integrated Marketing Communication

 Components of Sales Strategy
• Classifying market segments and individual customers
within a target segment
• Each firm should first decide on target market segments
and if possible, to classify customers into high, medium,
low sales & profit potentials
• Sales strategy is developed accordingly
• Relationship strategy
• Whether a selling firm should use transactional, value-
added, or collaborative relationship depends on both
the seller and the customer
• Each selling firm to decide which segments and
individual customers respond profitably to collaborative
relationship
 Components of Sales Strategy (Continued)
• Selling Methods
• These are: (1) Stimulus response, (2) formula, (3) need-
satisfaction, (4) team selling, (5) consultative
• Selection of appropriate selling method depends on
relationship strategy
• Channel Strategy
• There are many sales / marketing channels. For example:
company salesforce, distributors, franchisees, agents, the
internet, brokers, discount stores
• Selection of a suitable channel depends on both the
buyer and the seller, products / services, and markets
 The Sales Process
As a part of selling activities, if salespeople follow the steps or
phases shown below, their chances of success are far better.

Prospecting & Preapproach / Presentation &

Qualifying Approach
Precall planning Demonstration

Follow-up & Trail close / Overcoming

Service Closing the sale Objections

• The sequence of above steps may change to meet the sales

situation in hand.
• Some of the above steps may not be applicable for selling to the
trade
• We now discuss application of above steps to industrial selling
Prospecting
• It is identifying or finding prospects i.e. prospective or potential
customers.
• Methods of prospecting or sales lead generation are: (1)
referrals from existing customers, (2) company sources (website,
ads., tradeshow, teleprospecting), (3) external sources (suppliers,
intermediaries, trade associations), (4) salespersons’ networking,
(5) industrial directories, (6) cold canvassing

Qualifying
• Companies qualify sales leads by contacting them by mail or
phone to find their interests (or needs) and financial capacity.
• Leads are categorized as: Hot, Warm, and Cool
 Preapproach
• Information gathering about the prospect.
Sources of information: the Internet, industrial
directories, government publications, intermediaries,
etc.
• Precall planning
• Setting call objectives
• Tentative planning of sales strategy: which
products, features and benefits may meet the
customer needs
 Approach
• Make an appointment to meet the prospect
• Make favourable first impression
• Select an approach technique:
• Introductory
• Customer benefit
• Product
• Question
• Praise
• The approach takes a few minutes of a call, but it
can make or break a sale
 Presentation and Demonstration

There are four components:

• Understanding the buyer’s needs
• Knowing sales presentation methods / strategies
• Developing an effective presentation
• Using demonstration as a tool for selling
We will examine each of the above points
 Understanding the buyer’s needs
• Firms and consumers buy products / services to satisfy
needs
• To understand buyer’s needs, ask questions and listen
• In business situations, problem identification and
impact questions are important
E.G.
• Have you experienced any problems on quality and
delivery from the existing supplies?
• What impact the quality and delivery problems will
have on your costs and customer satisfaction?
 Knowing Sales Presentation Methods/Strategies
Firms have developed different methods / styles / strategies of sales
presentation
• Stimulus response method / canned approach.
• It is a memorised sales talk or a prepared sales presentation.
• The sales person talks without knowing the prospect’s needs. E.G.
Used by tele-marketing people
• Formula method / formulated approach.
• It is also based on stimulus response thinking that all prospects are
similar.
• The salesperson uses a standard formula – AIDA (attention, interest,
desire, and action).
• It is used if time is short and prospects are similar.
• Shortcomings are: prospects’ needs are not uncovered and uses
same standard formula for different prospects.
 Sales Presentation Methods (Continued)

• Need – satisfaction method

• Interactive sales presentation
• First find prospect’s needs, by asking questions and
listening
• Use FAB approach: Features, Advantages, Benefits
• Effective method, as it focuses on customers
• Consultative selling method / Problem-solving
approach
• Salespeople use cross-functional expertise
• Firms adopt team selling approach
• It is used by software / consulting firms
 Developing an Effective Presentation
Some of the guidelines are:
• Plan the sales call
• Adopt presentation to the situation and person
• Communicate the benefits of the purchase
• Present relevant and limited information at a time
• Use the prospect’s language
• Make the presentation convincing – give evidence
• Use technology like multi-media presentation
 Using Demonstration
• Sales presentation can be improved by
demonstration
• Demonstration is one of the important selling tools
EGs: Test drive of cars; demonstration of industrial
products in use
• Benefits of using demonstration for selling are:
• Buyers’ objections are cleared
• Improves the buyer’s purchasing interest
• Helps to find specific benefits of the prospect
• The prospect can experience the benefit
 Overcoming Sales Objections / Resistances
• Objections take place during presentations / when
the order is asked
• Two types of sales objections:
• Psychological / hidden
• Logical (real or practical)
• Methods for handling and overcoming objections:
(a) ask questions, (b) turn an objection into a benefit,
(c) deny objections tactfully, (d) third-party
certificate, (e) compensation
 Trial close and Closing the sale
• Trial close checks the attitude or opinion of the
prospect, before closing the sale (or asking for the
order)
• If the response to trial close question is favourable,
then the salesperson should close the sale
• Some of the techniques used for closing the sale are:
(a) alternative-choice, (b) minor points, (c)
assumptive, (d) summary-of-benefits, (e) T-account,
(f) special-offer, (g) probability, and (h) negotiation
 Follow-up and Service

• Necessary for customer satisfaction

• Successful salespeople follow-up in different ways:
For example,
• Check order details
• Follow through delivery schedule
• Visit when the product is delivered
• Build long-term relationship
• Arrange warranty service
2.5 Success Factors in Selling
The top ten success factors in selling
1. Listening skills.
2. Follow-up skills.
3. Ability to adapt sales style from situation to situation.
4. Tenacity – sticking to the task.
5. Organisational skills.
6. Verbal communication skills.
7. Proficiency in interacting with people at all levels within an
organisation.
8. Demonstrated ability to overcome objections.
9. Closing skills
10.Personal planning and time management skills
https://www.youtube.com/watch?v=cvGpAQz2L38
Other important aspects in selling
• Know your Product & Competitors
• Indentify your customers
• Access their needs
• Tapped unexplored territories
• Creating awareness through Publicity &
Merchandising and through campaigns
• Increase Channel partners
• Understand Pareto Law
• Train your team work along with them