Chapter 7 Final

Slide 7.
Chapter 7
Sales responsibilities
and preparation
Jobber and Lancaster, Selling and Sales Management PowerPoints on the Web, 10th edition © Pearson Education Limited 2015
Slide 7.2
Sales Responsibilities
The primary responsibility of a salesperson is to
conclude a sale successfully.
•identification of customer needs

•presentation
•demonstration
•negotiation
•handling objections
•closing the sale
Slide 7.3
Sales Responsibilities
The secondary responsibility of salespersons are
vital to long-term sales success.
•prospecting
•database and knowledge management
•self-management
•handling complaints
•providing service
•relationship management
Slide 7.4
is the searching for and

calling upon customers who
have not purchased from
the company.
Figure 7.1 Key responsibilities of salespeople
5
Slide 7.5
A) Sources of Prospects
1. Getting information from the existing customers:
- A highly effective method of generating prospects. Information can be
obtained simply by asking the existing customers if they know anyone is in
needs. After obtaining the name of potential customers, sales person can
ask if they can use the name of the existing customers as reference.
e.g Insurance by referral, industrial selling
2. Trade directories:
- Can be obtained in trade shows/exhibitions/publication company. A
reliable directory could be very useful in identifying potential customers by
providing name, size and nature of company, type of products etc.
e.g. Industrial products/retail directory.
3. Inquiries:
- Many companies stimulate inquiries by advertising, direct mail and
exhibitions. It is important that the salesperson responds quickly, by call,
mail… Advantages of screening the potential customers.
6
Slide 7.6
A) Sources of Prospects (Con’d)

4. The press:
- Salespersons can get the hits from the advertisements and
articles of potential customers. Articles may reveal diversification
plans of an organizations, advertisement for personnel may mean
the potential company is expanding and can be a new business to
the salespersons.
5. Cold canvassing
- Cold calling/visiting. Depends on the nature of the industry the
salespersons are in, sometimes a scanning of a certain company by
size and nature is needed, e.g. stationery salesperson calls to every
company, medical sales representative only calls to doctors or
pharmacy. Cold call on big company is not very useful, rather, by
letter expressing purpose then make appointment is better.
Slide 7.7
Cold canvassing
• approaching customers who at the
extreme have never heard of the
company, have never heard of its
products, have never met or spoken to
the salesperson before and may have
no conceivable interest in, or need for,
the product or service in question.
Imagine the difficulties of trying to sell in
this situation.
Slide 7.8
More Effective
Cold calling can be made more effective include
the following:
1. Try to make cold calling as unintrusive as possible for the customer.
2. For domestic customers try to avoid cold calling very early or very late
in the day.
3. respect the privacy of the customer and always respect their wish not
to be bothered.
4. Do not ever try to bully a customer into speaking to or seeing you.
5. secure a future appointment, or to gain an agreement to send further
information, rather than immediately trying to secure an order.
6. Find out as much as possible about the prospective customer and use
this to plan the cold call approach and content.
Slide 7.9
Database and knowledge management
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).
Slide 7.10
Self-management
salesperson often works alone with the minimum of
personal supervision
•organize their own call plan
•divide a territory into segments radiating outwards
•driving out to the furthest customer and then zigzagging
back to home base
•survey
•deciding on call frequency
1
1 Slide 7.11
C) Self-management
- Sales job is usually independent with very limit

personal supervision. Therefore a salesperson
should organize own call plan:
- How frequent you call a certain customer
- How much time needs to be spent with each customer
/the whole selling process
- Some companies ask the salesperson to produce
worksheets showing who is to be called on and in
what order every day.
Slide 7.12
Handling complaints
• Handling complaints may seem at first to be a
time-consuming activity that diverts a
salesperson from the primary task of generating
sales.
Customer Complaints
54% - 70%
5% Buy again if resolved Tell 5
people
Complain
95%
25%
If resolved quickly
Dissatisfied
95% Tell 11
Stop buying people
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 13 of 34

Customer Complaints
 Following procedures can help to recover customer goodwill:
 1. Set up a 7-day, 24-hour toll-free hotline (by phone, fax, or e-mail) to
receive and act on customer complaints.
 2. Contact the complaining customer as quickly as possible. The slower
the company is to respond, the more dissatisfaction may grow and lead to
negative word of mouth
 3. Accept responsibility for the customer’s disappointment; don’t blame
the customer.
 4. Use customer service people who are empathic.
 5. Resolve the complaint swiftly and to the customer’s satisfaction. Some
complaining customers are not looking for compensation so much as a
sign that the company cares.
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 14 of 34

1
5 Slide 7.15
E) Handling complaints
- Dealing with complains may be time consuming, but a
market/customer-oriented company may require sales force to priory
meet customer satisfaction in order to generate profit.
- No matter how trivial the complaint is, the complainant should be
treated with respect and the matter should be dealt with seriously.
- If the salesperson can react synthetically can create goodwill and
help foster long-term relationship.
- Some companies may offer customer certain benefit as
compensation if it does not involve high cost, e.g. free replacement,
discount coupon on next purchase, EVEN THOUGH the fault is due
to inappropriate usage by customer.
- Sometimes salesperson does not have the authority to deal with
complaint immediately, he/she should inform the direct management
as soon as possible to avoid further seriousness.
Slide 7.16
Providing service
Salespeople are in an excellent position to provide
a ‘consultancy’ service to their customers.
Because they have direct contact, they are able to
advise customers on improving productivity or
cutting costs
Slide 7.17
Relationship management
Slide 7.18
Implementing sales and

marketing strategies
• Misunderstandings regarding strategy can have grave
implications.
• Successful implementation can mean the difference
between winning or losing new accounts.
• An effective method of
gaining an account in the face
of entrenched competition is
the diversion. The aim is to
distract a rival into
concentrating its efforts on
defending one account
Slide 7.19
Preparation for pure selling

• Product knowledge and benefits
• Knowledge of competitors’ products and their
benefits
• Sales presentation planning
• Setting sales objectives
• Sales Cycle
• Understanding buyer behavior
2
0 Slide 7.20
Preparation---selling
1. Product knowledge and consumer benefits
 Knowledge of product feature is insufficient for sales success.
Salespeople should be able to relate the product features to
customer benefits. This becomes meaningful to buyers thus
more convincing.
2. Knowledge of competitors’ products and their
benefits
 Salesperson can offset the strengths of competitor’s products,
which may be mentioned by buyers, against their weakness.
E.g Competitor X’s price is lower but it’s maintenance cost is
high.
 Salesperson can get information from the magazines, price
lists, catalogues or direct observation
2
1 Slide 7.21
Preparation --- selling (con’d)

3. Selling presentation planning
 Demonstrations can be help to memorize product’s benefits, build up
confidence and get prepare to the anticipated counter-argument
customers.
1. The salesperson is less likely to forget important consumer
benefits associated with each product within the range they
are selling.
2. 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.
3. It builds confidence in the salesperson, particularly the
newer, less experienced, that they are well equipped to do the
job efficiently and professionally.
4. Possible objections and questions can be anticipated and
persuasive counterarguments prepared.
2
2 Slide 7.22

4. Setting sales objectives
 Salesperson should be clear of the sales objective-what the
salesperson wants the customer do rather than what the
salesperson will do: visiting a customer is what the
salesperson will do, getting the customer sign the contract
is the ultimate goal.
• 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, e.g. for pile-driving equipment this might be the
number of metres driven per hour.
2
3 Slide 7.23

4. Understand buyer behavior
 For industrial seller, important to find out key
influencer and decision makers
 For retail seller, important to find out whether
customers concern design, price, quality,
convenience.
Slide 7.24
Sales Cycle
• The sales cycle refers to the processes between first
contact with a customer and the placing of the actual
order and the amount of time this takes.
Slide 7.25
Preparation for sales negotiations

• Assessment of the balance of power
• Determination of negotiating objectives
• Concession analysis
• Proposal analysis
Slide 7.26
Assessment of the balance of power
seller and buyer will each be expecting to

conclude a deal favorable to themselves.
– their negotiating skills and the balance of power
between the parties.
This balance will be determined by four key factors:

1.The number of options available to each party
2.The quantity and quality of information held by each party.
3.Need recognition and satisfaction.
4.The pressures on the parties.
Slide 7.27
Determination of negotiating objectives

• Must have’ objectives. The ‘must have’ objectives
define a bargainer’s minimum requirements; for
example, the minimum price at which a seller is willing to
trade. This determines the negotiating breakpoint.
• ‘Would like’ objectives. These are the maximum a

negotiator can reasonably expect to get; for example, the
highest price a seller feels they can realistically obtain.
This determines the opening positions of buyers and
sellers.
Slide 7.28
A negotiating scenario
Slide 7.29
Concession analysis
• price
• timing of delivery
• the product – its specification, optional extras;
• the price – ex 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
Slide 7.30
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.

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Slide 7.

•identification of customer needs

is the searching for and

Figure 7.1 Key responsibilities of salespeople

A) Sources of Prospects (Con’d)

Database and knowledge management

An industrial salesperson should record the

- Sales job is usually independent with very limit

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 13 of 34

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 14 of 34

Implementing sales and

Preparation for pure selling

Preparation --- selling (con’d)

Preparation --- selling (con’d)

Preparation --- selling (con’d)

Preparation for sales negotiations

Assessment of the balance of power

seller and buyer will each be expecting to

This balance will be determined by four key factors:

Determination of negotiating objectives

• ‘Would like’ objectives. These are the maximum a

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