Sales responsibilities and

preparation

DANG VAN MY, PhD, MBA-Recherche

Email: dvanmy@yahoo.com

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 Objectives

After studying this chapter, you should be able to:

1. Itemise sales responsibilities
2. Evaluate sources of sales prospects
3. Understand the meaning and importance of the sales cycle
4. Take a systematic approach to keeping customer records
5. Understand the importance of self-management in selling
6. Assess what preparation is needed prior to selling
7. Understand the issues in cold canvassing
8. Understand the art of negotiation
9. Plan individual sales interviews

Source: hec.ca E-business

 Sales responsibilities
• The primary responsibility of a salesperson is to conclude a sale
successfully. This task will involve the identification of customer
needs, presentation and demonstration, negotiation, handling
objections and closing the sale.
• In order to generate sales successfully, a number of secondary
functions are also carried out by most salespeople.
• Although termed secondary, they are vital to long-term sales
success. These are:
– ● prospecting;
– ● database and knowledge management;
– ● self-management;
– ● handling complaints;
– ● providing service;
– ● relationship management.

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Key responsibilities of salespeople

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 Prospecting

• Prospecting is the searching for and calling upon customers who,

hitherto, have not purchased from the company. This activity is
not of uniform importance across all branches of selling.
• It is obviously far more important in industrial selling than retail
selling.
• There are several sources that can be used to identify prospects
and thereby generate leads:
– Existing customers: This technique has been used successfully in
life insurance and industrial selling, and also has applications in
many other areas
– Trade directories: name, address and telephone number of
companies
– The press and the internet

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 Database and knowledge management
• Databases and customer knowledge are not just essential for
prospecting. A systematic approach to customer record-keeping is
also to be recommended to all repeat-call salespeople.
• An industrial salesperson should record the following information:
– 1 name and address of company;
– 2 name and position of contact(s);
– 3 nature of business;
– 4 date and time of interview;
– 5 assessment of potential;
– 6 buyer needs, problems and buying habits;
– 7 past sales with dates;
– 8 problems/opportunities encountered;
– 9 future actions on the part of salesperson (and buyer)
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 Self-management

• The seller should be responsible, self-management of his whole

work, actively planning and execution of the sales plan
• This aspect of the sales job is of particular importance, since a
salesperson often works alone with the minimum of personal
supervision.
• A salesperson may have to organise their own call plan, which
involves dividing territory into sections to be covered day by day
and deciding the best route to follow between calls.
• The principle applies to all kinds of selling, however, and may be
either left to the salesperson’s discretion or organised centrally as
part of the sales management function.

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 Handling complaints

• Complaints handling may seem at first to be a time-consuming

activity that diverts a salesperson from the primary task of
generating sales.
• A marketing orientation for a salesforce, however, dictates that the
goal of an organisation is to create customer satisfaction in order
to generate profit.
• When dissatisfaction identifies itself in the form of a complaint,
this necessary condition for long-term survival is clearly not being
met.
• When the salesperson does not have the authority to deal with the
complaint immediately, their job is to submit the relevant
information in written form to head office so that the matter can
be taken further.

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 Providing service
• Salespeople are in an excellent position to provide a ‘consultancy’
service to their customers.
• Thus an industrial salesperson may be able to advise customers on
improving productivity or cutting costs.
• Indeed, the service element of industrial selling is often
incorporated into the selling process itself, e.g. computer
salespeople may offer to conduct an analysis of customer
requirements and produce a written report in order to complete a
sale.
• The salesperson who learns solutions to common problems and
provides useful advice to their customers builds an effective
barrier to competitive attacks and strengthens buyer–seller
relationships.

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 Relationship management
• This coverage examines relationships between salespeople and
customers.
• There is, however, another set of relationships that a salesperson
must master in today’s complex selling environment: that
between the salesperson and other people in their company who
are vital to ensure a smooth sales process and efficient delivery
and service of the product.
• Particularly with key accounts, selling is performed by a team of
players (e.g. from engineering, production, marketing, finance
and senior management).
• Key account managers must be able to manage these relationships
both within their firms and between those players and members
of the customer’s decision-making unit (DMU).

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 Implementing sales and marketing strategies
• The salesforce is also charged with the responsibility of
implementing sales and marketing strategies designed by
management.
• Misunderstandings regarding strategy can have grave
implications.
• The solution might be to decide discount structure at managerial
level (both sales and marketing management will have an input
to this decision) based on the price sensitivity of various market
segments.
• The salesforce would then be told the degree to which price
could be discounted for each class of customer. In this way the
product’s positioning strategy would remain intact while
allowing the salesforce some discretion to discount when
required.

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 Preparation
• However, there is much to be gained by careful preparation of
the selling task. Some customers will have similar problems;
some questions and objections will be raised repeatedly.
• A salesperson can therefore usefully spend time considering how
best to respond to these recurring situations.
• These will be termed sales negotiations. In others, the
salesperson may have no scope for such discussions; in essence
the product is offered on a take-it-or-leave-it basis.
• Thus, the salesperson of bicycles to dealers may have a set price
list and delivery schedule with no authority to deviate from
them.
• This will be termed pure selling.

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 Preparation for pure selling and sales negotiations

Product knowledge and benefits

• Knowledge of product features is insufficient for sales success.
Because people buy products for the benefits they confer,
successful salespeople relate product features to consumer
benefits; product features are the means by which benefits are
derived.
• By analysing the products they are selling in this way, salespeople
will communicate in terms that are meaningful to buyers and
therefore be more convincing.
• Thus the salesperson must not only know their products’ benefits
but also the types of situation in which each would be appropriate
• Preparation of sales benefits should not result in an inflexible sales
approach. Different customers have different needs, which implies
they seek different benefits from products they buy.

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 Preparation for pure selling and sales negotiations

Knowledge of competitors’ products and their benefits

• Information on competing products can be gleaned from
magazines such as Which?, sales catalogues and price lists, from
talking to buyers and from direct observation (e.g. prices in
supermarkets).
• The internet provides a wide range of information on competitors,
which a salesperson can access via a competitor’s website.
• Knowledge of competitors’ products offers several advantages:
– It allows a salesperson to offset the strengths of those products,
which may be mentioned by potential buyers, against their
weaknesses.
– In industrial selling, sales engineers may work with a buying
organisation in order to solve a technical problem. This may result in
a product specification being drawn up in which the sales engineers
have an influence
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 Preparation for pure selling and sales negotiations

Sales presentation planning

• The salesperson is less likely to forget important consumer benefits
associated with each product within the range they are selling.
• The use of visual aids and demonstrations can be planned into the
presentation at the most appropriate time to reinforce the benefit the
salesperson is communicating.
• It builds confidence in the salesperson, particularly the newer, less
experienced, that they are well equipped to do the job efficiently and
professionally.
• Possible objections and questions can be anticipated and persuasive
counter-arguments prepared. Many salespeople, who to an outsider seem
naturally quick witted, have developed this skill through careful
preparation beforehand, imagining themselves as buyers and thinking of
objections they might raise if they were in such a position

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 Preparation for pure selling and sales negotiations

Setting sales objectives

• An adhesives salesperson may decide that the objective of the visit
to a buyer is to demonstrate the ease of application and adhesive
properties of a new product.
• The type of objective set should stem from, and support, overall
company marketing objectives from the marketing planning
process we discussed earlier.
• Examples of possible objectives for sale calls might be as follows:
– for the customer to define clearly what their requirements are;
– to have the customer visit the production site;
– to have the customer try the product, e.g. fly on an aircraft;
– to have the customer compare the product against competing products
in terms of measurable performance criteria

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 Preparation for pure selling and sales negotiations

Sales cycle
• The sales cycle refers to the processes/steps between first contact
with a customer and the placing of the actual order and the amount
of time this takes.
• The complexity of the steps in the sales process during the
customer’s buying process and related to this, the amount of time
involved, can vary enormously.
• Understanding the sales cycle enables the salesperson to help the
customer through the buying process towards placing an order
• Thus understanding and using knowledge of the sales cycle are
crucial to effective sales planning, but this understanding is really
only part of the wider process of understanding the buying
behaviour of customers.

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Preparation for pure selling and sales negotiations
Understanding buyer behaviour
• Many organisational buying decisions are complex, involving
many people whose evaluative criteria may differ, and that the
purchasing officer may play a minor role in deciding which
supplier to choose, particularly with very expensive items.
• Other practical information that a salesperson can usefully collect
includes the name and position of each key influencer and
decision-maker, the times most suitable for interview, the types of
competing products previously purchased by the buying
organisation and any threats to a successful sale or special
opportunities afforded by the situation
• The internet can provide a wealth of information on the buying
organisation. The buyer’s website, online product catalogues and
blogs are useful sources of information.

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 Preparation for sales negotiations
Assessment of the balance of power
• In the sales negotiation, seller and buyer will each be expecting to
conclude a deal favourable to themselves. The extent to which
each is successful will depend upon their negotiating skills and the
balance of power between the parties. This balance will be
determined by four key factors:
– The number of options available to each party
– The quantity and quality of information held by each party
– Need recognition and satisfaction
– The pressures on the parties
• The implications of these determinants of the balance of power
are that before negotiations (and indeed during them) salespeople
will benefit by assessing the relative strength of their power base.

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 Preparation for sales negotiations
Determination of negotiating objectives
• It is prudent for negotiators to set objectives during the preparation
stage. This reduces the likelihood of being swayed by the heat of
the negotiating battle and of accepting a deal which, with the
benefit of hindsight, should have been rejected.
• It is useful to consider two types of objective:
– The ‘must have’ objectives define a bargainer’s minimum
requirements; for example, the minimum price at which a seller is
willing to trade
– These are the maximum a negotiator can reasonably expect to get
• When considering ‘must have’ objectives it is useful to consider
the Best Alternative to a Negotiated Agreement (BATNA)

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 Preparation for sales negotiations
Concession analysis
• The key to this concession analysis is to value concessions the
seller might be prepared to make through the eyes of the buyer.
Doing this may make it possible to identify concessions that cost
the seller very little and yet are highly valued by the buyer.
• The kinds of issue that may be examined during concession
analysis include the following:
– price; timing of delivery; the product – its specification, optional
extras;
– the price – e.g. works price, price at the buyer’s factory gate,
installation price, in-service price;
– payment – on despatch, on receipt, in working order, credit terms;
– trade-in terms, e.g. cars.

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 Preparation for sales negotiations
Proposal analysis
• A further sensible activity during the preparation stage is to
estimate the proposals and demands the buyer is likely to make
during the course of negotiation, and the seller’s reaction to them.
• This is analogous to the anticipation of objections in pure selling
– it helps when quick decisions have to be made in the heat of the
negotiation.
• By anticipating the kinds of proposals the buyer is likely to make,
the seller can plan the kinds of counter proposals they wish to
make. In some situations, the appropriate response may be the
‘concession close’

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 Examination questions

• What considerations should be taken into account when deciding

on the amount of prospecting a salesperson should do?
• Discuss the contribution of preparation to the selling process.
• Give examples of marketing situations when the use of personal
selling is most likely to be particularly effective and important.
• The primary task of a sales representative is to sell thecompany’s
products and services. What additional tasks do you feel a
salesperson might undertake and how will it affect their selling
role?
• When preparing for sales, what information and planning is
essential in order to improve the potential for success?

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