Sales Management Process: A Comprehensive Guide
Sales Management Process
1. Formulation of Sales Program
The sales program should consider the environmental factors faced by the organization. Planning should include the marketing strategy and the organization’s overall strategy to reach the same target.
2. Implementation of Sales Program
This involves selecting the right salespeople and designing and implementing approaches that will lead to achieving objectives.
3. Evaluation & Control of Sales Program
Developing methods for monitoring and evaluating sales forces is crucial, allowing for adjustments to the sales program when needed.
Internal Environment
1. Goals, Objectives & Culture
Top management creates a mission and objectives to establish a customer-centric organization. The customer management approach must be adjusted when the mission or objectives change. A well-defined mission, a history of success, and top management with strong values contribute to a successful organization.
2. Human Resources
Finding highly skilled salespeople with market knowledge is challenging. Organizations conduct training and sometimes utilize outside agencies to compensate for a lack of knowledgeable employees when entering new markets.
3. Financial Resources
A lack of financial resources can prevent organizations from developing value-added products or having the budget to promote and sell. This can force mergers with other companies to obtain financing and grow.
4. Production & Supply Chain Capabilities
An organization’s production, technology, and even location can influence its sales plans and relationships. Insufficient capacity to serve increased demand and rising transport costs can hinder expansion.
5. Service Capabilities
Organizations providing excellent service enjoy a competitive advantage, making it difficult for competitors to attract the same customers and for customers to switch providers.
6. R&D and Technology
Determining whether to be a leader or follower in technology and the value added to products is important. Salespeople, aware of customer needs, play a role in communicating R&D requirements.
Types of Selling Jobs
1. Retail Selling (B2C Market)
Selling goods and services to end-users for personal use. Examples include direct sales and real estate brokers.
2. Industrial Selling (B2B Market)
Selling goods and services to non-end consumers. This includes sales to resellers (retail stores), business users (e.g., GE selling parts to Boeing for airplanes), and institutions (e.g., Dell selling to the government).
Types of B2B Sales Jobs
1. Trade Servicer
Increase business from current and potential customers by providing merchandising and promotional assistance (e.g., selling soap to a chain store).
2. Missionary Seller
Provide product information and personal selling assistance to persuade customers to buy from distributors (e.g., pharmaceutical representatives calling doctors as manufacturing representatives).
3. Technical Seller
Provide technical and engineering information and assistance.
4. New Business Seller
Identify and obtain business from new customers.
Stages in the Selling Process
1. Prospecting & Qualifying
Find qualified potential customers and filter them to identify the best prospects.
2. Pre-Approach
Learn as much as possible about the customer, their needs, who is involved in the decision-making process, and their communication style.
3. Approach
Meet the customer and build a business relationship.
4. Presentation
Tell the product story, present its benefits, and demonstrate how it solves the customer’s problems.
5. Handling Objections
Address concerns, provide clarity, and turn objections into reasons for buying.
6. Closing
Recognize buying signals and seek to finalize the deal.
7. Follow-Up
Maintain contact after the sale to ensure customer satisfaction.
Participants in the Buying Center
1. Initiators
Individuals who identify a problem or need for a new purchase.
2. Users
Those who will use the product and often influence the purchase decision.
3. Influencers
Provide information and specifications about the product, typically technical experts.
4. Gatekeepers
Control the flow of information to decision-makers, influencing the purchase.
5. Buyers
Have the formal authority to select the supplier.
6. Deciders
Hold the power to approve the final supplier.
7. Controllers
Determine the budget for the purchase.
The CRM Process Cycle
1. Knowledge Discovery
Analyze customer information gathered from all sources, especially touchpoints. Process and transform data into useful information for customer strategy development.
2. Market Planning
Utilize the output of knowledge discovery to plan marketing and customer strategies and programs.
3. Customer Interaction
Implement the strategies and programs, targeting customer touchpoints effectively.
4. Analysis & Improvement
Analyze customer responses during the implementation stage, make necessary adjustments, and continuously improve to enhance customer satisfaction.