Managing the Selling Process

87
1 How to develop an active sales force by Managing the Selling Process Ron McFarland, Tokyo, Japan

Transcript of Managing the Selling Process

1

How to develop

an active sales force by

Managing

the Selling Process

Ron McFarland, Tokyo, Japan

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Managing the Selling Process

This is the concern this presentation will address.

Is your sales force actively

covering the market?

Ron McFarland, Tokyo, Japan

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Whether you are a sales

manager or a salesman

selling to distributors, you

must manage the selling

process to produce

volume results and cover

the total market.

Managing the Selling Process

Ron McFarland, Tokyo, Japan

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Sales Manager's Responsibilities to Sales People

There are three reasons sales people do not perform well!

1. They do not know what to do.

The sales manager must make sure his staff know what the sales activities are. The

best place to explain this is right during the job interview. It should be in his job

description.

2. They do not know how to do it.

The sales manager must make sure the staff know how to perform each step in the

selling process. If the salesmen do not use a quality selling process, then

management must train them. The better we sales managers know and can perform

the selling process ourselves, the more we can help our sales people sell cutting tools.

It is an on-going development process.

3. Something or someone interferes with their ability or desire

to do the job.

The sales manager must create an environment which encourages sales people to

perform the steps in the selling process on a daily basis.

Ron McFarland, Tokyo, Japan

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Meeting

& Greeting

Market for a

product/service

7

Qualifying

& Counseling

Product

Selection

Product

Presentation

Product

Demonstration

Product

Supply

One Sale

Made

Asking Trail

Close Question

Customer

Follow Up

Closing

The Sale

Prospecting

for customers

8

9

10

11

6

5

4

3

2

1

Yes, we are covering the market.

Managing the Selling Process

I’m fishing for

cutting tool needs.

Selling is

like fishing.

Ron McFarland, Tokyo, Japan

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What are your salesmen’s or distributors’ daily sales activities?

How well are those activities being performed?

Managing the Selling Process

Quality Contacts – Are they contacting a

reasonable amount of the right people?

Quality Impression – Do they make a good first

impression?

Quality of Determining Needs – Are they

determining what the distributors can market

successfully? Are they determining how much a

distributor can reasonably sell?

Quality of Product Presentations – Are they

presenting the products and explaining their end-

user benefits?

Quality of Demonstration - Does the customer

know the performance of the product? Are the

sales people demonstrating?

Quality of Closing – Is the salesmen asking the

distributor to buy the product?

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1. What is my chance of success?

2. What is the value to me?

Two things must exist to improve and change the selling habits

of sales people. They must give positive answers to two

questions.

Changing Selling Habits

I can successfully present these

products to distributors and end users!

My presentation skills are going to make

me a lot of sales and money!

Ron McFarland, Tokyo, Japan

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(low) (high)

Basic Sales Manager Leadership StylesS

up

po

rtiv

e B

eh

avio

r

Supportive Behavior is only being available when the

sales person needs or asks for help, and is giving

recognition when warranted.

High Supportive

Low Directive

Behavior

High Directive

High Supportive

Behavior

SUPPORTING COACHING

DELEGATING DIRECTING

High Directive

Low Supportive

Behavior

Low Supportive

Low Directive

Behavior

Directive Behavior is usually one-way communication.

It is giving the sales person sales activities to perform.

(lo

w)

(hig

h)

Directive Behavior

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Competence: The level of knowledge and skills the person has to do the selling job.

Commitment: A combination of confidence and motivation to do the selling job.

Highly Developed Developing

Very High

Competence

Higher

Competence

Four Levels of Salesmanship Development

High

Commitment

Varying

Commitment

Low

Commitment

Low

Competence

High

Commitment

Higher

Competence

D1D2D3D4

Level of professionalism

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Matching Leadership Style

To Sales Person’s Development

Development Level of Sales Person

The Four Leadership Styles

Su

pp

ort

ive B

eh

avio

r

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Deciding How to Manage Each Sales Person

Prospecting

Meeting & Greeting

Qualifying-Counseling

Presentation

Demonstration

Closing

Delivery

Follow-up

Salesman

He should

not perform

Needs

training

Will improve

in time

Maintains minimum

standard

Above

average

Outstanding, could

be example to all

b

b

b

b

b b

b

b

Ron

Ron McFarland, Tokyo, Japan

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Obtaining the Right Sales People

What is the cost of hiring the wrong sales people, the

cost of having high sales people turnover or the cost of

not having enough sales people?

• Sales losses

• Loss of company reputation

• Extra salesmen training costs

• Sales losses during training period

• Reduced advertising effectiveness

• Extra recruiting costs¥

Ron McFarland, Tokyo, Japan

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Organizing before Recruiting Sales People

I’ve got to get more salesmen

talking about these products!

Give every man a chance. Do not recruit more people at one time than you can properly train and

supervise.

Start a new employee with an income which will keep him on a sound basis and enable him to

maintain his proper place in his community.

Try to avoid a new man contacting customers until has had enough training to do the job

intelligently.

Build the organization with a minimum of wastage of the new man's time and effort as well as your

own.

Devote an adequate amount of time in preparation for the introduction of the job to the new recruit.

Concentrate the search in the most productive areas and endeavor to locate people who can tap

certain natural markets: economic, social, industrial, educational, or geographical.

Do your search among groups with a good reputation.

Start searching ahead of your sales staff needs, so that you will have the courage to turn down

mediocre prospective sales personnel.

Set up a timetable showing in detail your recruiting, processing, training and supervising activities.

Get your sales staff in order by eliminating any failing sales people you have given many chances

and much help to succeed.

Set your manpower objective in terms of how many people you need to reach your sales targets.

Ron McFarland, Tokyo, Japan

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Profile of a Sales Person

The man I seek should have:

1. Aptitude for cutting tool selling, effectively

measured.

2. Specified background qualifications

a. Schooling/Grades (reading, speaking,

mathematics)

b. Stability and being part of the

community

c. Record of reliability and integrity

d. Financial circumstances

e. Voice and speaking clarity

f. Physical condition

g. Appearance

h. Mannerisms

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Keys to a good recruiting advertisement

1. Make the advertisement different from others.

2. Mention what the job offers, not what you need.

3. Avoid simply saying "Salesmen Wanted“

4. Avoid unnecessary prescreening

5. State the advantages of working with you

(products, history, reputation)

Quality

people will

respond

to a job with

a future!Ron McFarland, Tokyo, Japan

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The interview is the best

place to make sure your

sales people know what the

job is through a detailed

job description.

Keys to a Good Interview

Ron McFarland, Tokyo, Japan

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Keys to a Good Interview

Below are other things to consider when interviewing

a person for a sales position:

1. Study the candidate's personal history beforehand.

2. Do not accept interruptions during the interview.

3. Give full attention to the applicant during the interview.

4. Explain the interview process.

1-let applicant ask questions first

2-describe the job

3-ask the applicant about his background

4-ask applicant if he minds being tested

5. Let applicant answer questions fully.

6. Avoid making opinion too soon.

7. Get applicant to talk as much as possible.

8. Listen to what the applicant is saying and how he is saying it.

9. Ask direct and detailed questions of concern.

10. Have 3-4 people in the company interview the person separately

using the same format.

11. All interviewers should discuss their evaluations of the candidate.

Ron McFarland, Tokyo, Japan

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Interview Evaluation for Sales Candidate, Name:________

Characteristic Not at all Developmental Definitely

Empathy and concern for others 1 2 3

Socially outgoing 1 2 3

Leadership ability 1 2 3

Reserved 3 2 1

Desire to do the exceptional 1 2 3

Enthusiasm 1 2 3

Need to avoid being alone 3 2 1

Need to avoid the limelight 3 2 1

Need to avoid conflict 3 2 1

Need for respect 1 2 3

Need to avoid busy work 3 2 1

Need to achieve goals 1 2 3

Good appearance and manner 1 2 3

Voice clarity 1 2 3

Speaking ability 1 2 3

Good work habits and organization 1 2 3

Sales interest high 1 2 3

Sales experience high 1 2 3

Stability and perseverance 1 2 3

Maturity and responsibility 1 2 3

Ability to get along with others 1 2 3

Ron McFarland, Tokyo, Japan

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Salesman’s Job Description

Title: Regional Salesman

Reports to: The National/Regional Sales Manager

PROSPECTING:

1. The salesman will develop prospect lists to make distributor contacts.

2. The salesman will conduct name gathering activities at exhibitions

and other sales events.

3. The salesman will develop a customer contact filing system and

make reports of each contact.

4. For each working day, the salesman will contact customers by

telephone, email, FAX and direct visits.

MEETING & GREETING:

1. Representing the image of the company, the salesman will make the

best first impression he can.

2. He will do this by his dress, gestures, posture, speech and the way he

handles himself in front of the customer.

Ron McFarland, Tokyo, Japan

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Salesman’s Job Description

QUALIFYING AND COUNSELING:

1. After meeting the customer, the salesman will ask the

customer questions about his business and get him talking

about his market as much as possible.

2. The salesman will consult the customer to determine the

situation.

3. He will determine which products he can and is willing to

successfully promote and sell in his region.

PRODUCT PRESENTATION AND DEMONSTRATION:

1. After determining which products the customer can market in

his area, the salesman will then recommend a product and

present its features using product pamphlets, instructions

with the product, displays and product assortments.

2. He will also demonstration the product to insure that

the customer knows how well the product performs.

Ron McFarland, Tokyo, Japan

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Salesman’s Job Description

CLOSING THE SALE:

1. After fully presenting and demonstrating the product, the

salesman will close the sale by offering the prices on all the

products in every size and in various product assortments

(display assortment, assortments for specific applications,

etc.) After giving the prices, he will ask for an initial order.

DELIVERY AND SHIPMENT:

1. The salesman will follow up on the first shipment to the

customer and make sure it has arrived as planned.

2. He will help the customer set up the products for sale after

the shipment arrives.

3. He will advise his customer on how to promote the product

and give demonstrations at exhibitions in the area.

4. He will help market the product with point-of-purchase

material.

Ron McFarland, Tokyo, Japan

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Salesman’s Job Description

CUSTOMER FOLLOW-UP:

1. After the customer has started selling and marketing the

product, the salesman will regularly contact the customer to

check on stock, support promotion programs and gain

information regarding users’ opinions.

GOAL SETTING:

1. The salesman and his manager will determine the number of

contacts per month to be made to both current customers

and new customers.

2. The salesman sets goals as to the number of presentations,

demonstrations and exhibitions each month.

3. The salesman reports on contacts monthly including market

information and sales opportunities.

4. He performs at or above the minimum standards set by the

company.

Ron McFarland, Tokyo, Japan

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The need for minimum standards

Ethical & Moral Standards - Quality sales people want to be able to trust the people

they are around in the working environment.

Dress - Quality sales people have a minimum dress standard to maintain respect

with their customers.

Manners - Quality sales people have a certain level of behavior with other people.

Sales Volume Minimum Standard - A quality sales person wants to maintain a high

level of value for the customers, for the organization, for his family and for himself.

He does not want to be around low value producing people.

Having minimum standards encourages quality people to

stay and work for you, the sales manager!

Winners love to gather with other winners. They train and

motivate each other.

Failures love to gather with other failures which can destroy

the working environment!

Ron McFarland, Tokyo, Japan

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If you can say all of your salesmen are doing a good job in

these activities, you probably have a good training program in

place. If you can not, then training is probably required. Like

McDonald’s, all the customers are treated the same by all

employees.

During the interview, the manager should make sure the

salesman knows what he is supposed to do. During training

the manager makes sure the salesman knows how to do it.

How well is the sales force performing the selling process?

Are they meeting a reasonable amount of people?

Are they determining the situation of the distributor and selecting the products, quantities and

sizes for his market?

Are they giving presentations and demonstrations?

Are they explaining promotional programs?

After the sale, are they contacting the customer from time to time to make sure things are going

well?

Training should always make you money or save you money in

more sales or lower salesmen turnover!!

Training for Profit

Ron McFarland, Tokyo, Japan

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Training Goals

Telephone

Prospecting

Distributor

Visits

Training is not education.

Education is to provide knowledge.

Training is to create action to do a specific task.

Therefore, practice and role playing are vital for training to be

successful.

Through practice, coaching and role playing, confidence is built.

Through confidence, selling activities increase, and sales are the result.

Ron McFarland, Tokyo, Japan

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Types of Salesman Training

Product Training - Product knowledge and product presentation.

New Salesman Training - The selling process and product

knowledge.

On-going Training - Addresses a specific competitor or customer

problem.

Low Producing Salesman Training - Addresses poor selling

salesmen's problems.

Field Training - Training in front of a customer.

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Customer

The salesman should make the

appointment. If he can not do that, he

should not be meeting customers.

Field Training Contact Type #1

Salesman

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The salesman should

introduce the manager.

Salesman

Sales Manager

Customer

Field Training Contact Type #1

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The sales manager should follow the entire selling

process from meeting & greeting, to qualifying and

counseling, to product selection, to presentation,

closing, etc. The salesman should just observe.

Field Training Contact Type #1

Ron McFarland, Tokyo, Japan

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After leaving the customer, the sales manager

should ask the salesman how he did. What was

a surprise? How should it be done differently?

Field Training Contact Type #1

Ron McFarland, Tokyo, Japan

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Field Training Contact Type #2

CustomerSalesman

The salesman should make

the appointment.

Ron McFarland, Tokyo, Japan

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Field Training Contact Type #2

Salesman

Customer

The salesman should introduce

the manager as an associate.

Sales Manager

Ron McFarland, Tokyo, Japan

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Field Training Contact Type #2

The salesman starts the selling

process up to a decided point, like

counseling or product presentation.

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Field Training Contact Type #2

Then, the sales manager finishes the

selling process with the customer.

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Field Training Contact Type #2

After leaving the customer, the sales manager should ask the

salesman how things went again. How would they have done it

differently? What information did we forget to get? What other

questions should we have asked?

Ron McFarland, Tokyo, Japan

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Field Training Contact Type #3

CustomerSalesman

The salesman should make

the appointment.

Ron McFarland, Tokyo, Japan

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Field Training Contact Type #3

Salesman

Customer

The salesman should introduce

the manager as an associate.

Sales Manager

Ron McFarland, Tokyo, Japan

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Field Training Contact Type #3

The salesman follows the entire selling process

from meeting & greeting to qualifying &

counseling, etc. The sales manager only

observes. He never helps at all.

Ron McFarland, Tokyo, Japan

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Field Training Contact Type #3

After leaving the customer, the sales manager should ask the

salesman how things went again. How would he have done it

differently? When did he think he got or lost the sale? What

information did we get? What questions should we have asked?

Ron McFarland, Tokyo, Japan

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Field Training Contact Type #3

The important point for the sales manager to

make is that he is dedicated to the development

of the salesman, not just making the sale.

Future sales will be the result.

Ron McFarland, Tokyo, Japan

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Basic Principles of Sales Meetings

All sales meetings should be forecast and prepared in advance. The sales manager should

follow an agenda.

Participants should arrive at least five minutes early. Notifications should be given for lateness or absence.

Meeting should be held to address mutual concerns, leaving individual concerns and

issues out of the sales manager’s and staff’s control aside.

All sales people should be assigned to present something about his sales activities.

Listen to others thoroughly.

Conclusions or plan of action should be made on one subject before moving to the next.

Carefully control time.

Write minutes to confirm understanding of what was discussed and decided.

Ron McFarland, Tokyo, Japan

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To avoid being "Mr. Nice

Guy", the sales manager

must care about his

sales people's success.

What Type of Sales Manager Are You?

Mr. Nice Guy

MR. NICE GUY:

There is no stress in

the company to sell,

if the sales manager

is too nice, and there

is no discipline for

non-performance.

If your people do well, praise them for what

they have done. If they fail to perform, talk to

them privately and help them improve. Take

responsibility for their performance.

Here are four ways sales people see their boss. There are

advantages to all of them, but one will build long-term success.

Consider how your sales people think of you as a sales manager.

Ron McFarland, Tokyo, Japan

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What Type of Sales Manager Are You?

To avoid being "Mr. Policeman",

show respect for the people.

Keep the lines of communication

open so that they feel "safe" in

coming to you and admitting

they have problems. Knowing

that, you will be able to give

them the help they need.

Mr. Policeman

MR. POLICEMAN: Although short-

term results are sometimes

achieved, if you are perceived to be

a "Mr. Policeman", all manager-

salesman communication stops.

You do not communicate with a

policeman, and the sales staff do

not communicate with that type of a

sales manager. "Mr. Policeman"

give orders only. There is little or

no real communication, and

performance will never reach the

team's full potential. The sales

manager will not know how to

manage his sales people because

he will not know how they think.

Ron McFarland, Tokyo, Japan

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To avoid being a "Superman", the sales manager must realize that his job is

not to sell the products, but to manage people. Sales people sell the

products. The sales manager is to help them do it, not sell for them.

What Type of Sales Manager Are You?

SupermanSUPERMAN: If the success of the company

and the penetration market are dependent on

one skilled, talented, do-it-himself sales

manager, he is playing "Superman". The

company can not grow, and it is very

vulnerable.

"Superman" does everything himself. His

staff is never required to develop selling skills

because the sales manager will do the job for

them. They do not develop competitive

selling techniques and activities because they

have never had a need.

Ron McFarland, Tokyo, Japan

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What Type of Sales Manager Are You?

Coach

COACH: The person who can develop ten men is stronger than the

person who can do the work of ten. He teaches his people to be better.

He gives them direction and support.

A good sales manager recognizes that his number one job priority and

responsibility is to coach and train his sales people to sell.

He coaches his staff by using procedures similar to the below:

He sets minimum standards of sales performance that he

expects of his sales staff.

Together with each sales person individually, he sets

personal performance goals which are at or higher than

the minimum standard.

If a sales person is not maintaining his activities

(prospecting, presentations, etc.) or not achieving his

goals, the manager discusses it with the salesman.

He makes sure the sales people know it is the sales

manager's job to help them reach their personal

performance goal.

Ron McFarland, Tokyo, Japan

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Confronting Deviations

When a salesman is performing below the minimum standard,

here is a method how to confront it.

Sales Manager

Salesman

Set up a private meeting after the first deviation.

Pinpoint the deviation and express how it makes you feel.

Tell the salesman why you feel that way.

Ask the salesperson how he feels about the deviation.

Have discussions as to how to overcome the deviation.

Once an agreement has been reached, praise the

salesman.

Ron McFarland, Tokyo, Japan

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Handling Salesman’s Problems

Follow these procedures if a sales person comes to you, the sales

manager, with a given problem.

Sales Manager

Salesman

Stop what you are doing.

Look at the salesman intently and analyze his mood and be

concerned with his situation.

Listen to what he has to say and what his problem is.

Ask what he proposes to do.

Guide and counsel him to reach a solution.

Make sure he leaves with the problem and has a plan of action to

solve it.

Ron McFarland, Tokyo, Japan

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Developing customer contact routes

If you can get the job

done on the phone,

email, website or FAX,

do it!!

Ron McFarland, Tokyo, Japan

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Developing customer contact routes

But in many cases, getting face-to-face with a customer is the best way to

turn his attention toward your product.

Meeting customers is expensive, time consuming and tiring. Therefore,

deciding what to achieve in every contact and planning your routes are

very important.

Ron McFarland, Tokyo, Japan

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WEEK/MONTH______SALESMAN'S NAME___________________

DateDirectMailing

Telephone Prospecting

SeenContacts

HotProspects

Presentation &Demonstration

ClosingSituation

Current Customer Contacts

Sales

(Quota/Actual)

( / )1st

2nd

3rd

4th

5th

( / )

( / )

( / )

( / )

( / )

( / )

( / )

( / )

( / )

( / )

( / )

( / )

( / )

( / )

( / )

( / )

( / )

( / )

( / )

( / )

( / )

( / )

( / )

( / )

( / )

( / )

( / )

( / )

( / )

( / )

( / )

( / )

( / )

( / )

( / )

( / )

( / )

( / )

( / )

WeekDirectMailing

Telephone Prospecting

SeenContacts

HotProspects

Presentation &Demonstration

ClosingSituation

Current Customer Contacts

Sales

( / )1st ( / ) ( / ) ( / ) ( / ) ( / ) ( / ) ( / )

WEEKLY TOTALS AND AVERAGES (Total/Daily Average)

Salesman's Daily Effort Sheet

Ron McFarland, Tokyo, Japan

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There are three reasons why sales people do not do their job:

The Goals of Incentives & Campaigns

(1) They do not know the selling process. This should have been explained when interviewed for the job.

(2) They do not know how to do the selling process.This should have been learned during training just after employment.

(3) Something or someone interferes with their ability

or desire to do the selling job.

This section

addresses

this third reason.Ron McFarland, Tokyo, Japan

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The Psychology of Selling

There is a lot of psychology and emotions in the business of

selling, both for the salesman and the customer. Salesmen

must learn to understand and master these emotions.

Ron McFarland, Tokyo, Japan

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The Psychology of Selling

How does a salesman react

when the customer directly

attacks him, his company

products?

Sometimes the salesman feels the customer is in full control.

He feels helpless and at a loss, as to what to do next.

Ron McFarland, Tokyo, Japan

54

The Psychology of Selling

One response to customer rejection

“ MR. DEFENSIVE”: You are completely wrong!

If the customer says he has no interest in the salesman or his company because the

company is no good, the salesman could respond like this:

"You are wrong! We are the best company in the country. Where did you get such

a silly opinion?"

Feelings

Anger, frustration,

rejection

Ron McFarland, Tokyo, Japan

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The Psychology of Selling

One response to customer rejection

“ MR. DEFENSIVE”: You are completely wrong!

If the customer says he has no interest in the salesman or his company because the

company is no good, the salesman could respond like this:

"You are wrong! We are the best company in the country. Where did you get such

a silly opinion?"

Chance of making

the sale

Low,

below average

Ron McFarland, Tokyo, Japan

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The Psychology of Selling

One response to customer rejection

“ MR. DEFENSIVE”: You are completely wrong!

If the customer says he has no interest in the salesman or his company because the

company is no good, the salesman could respond like this:

"You are wrong! We are the best company in the country. Where did you get such

a silly opinion?"

Chance of building

a business relationship

Very poor

Ron McFarland, Tokyo, Japan

57

The Psychology of Selling

One response to customer rejection

“ MR. DEFENSIVE”: You are completely wrong!

If the customer says he has no interest in the salesman or his company because the

company is no good, the salesman could respond like this:

"You are wrong! We are the best company in the country. Where did you get such

a silly opinion?"

Chance of continuing

to make other contacts that day

Below average

Ron McFarland, Tokyo, Japan

58

The Psychology of Selling

One response to customer rejection

“ MR. DEFENSIVE”: You are completely wrong!

If the customer says he has no interest in the salesman or his company because the

company is no good, the salesman could respond like this:

"You are wrong! We are the best company in the country. Where did you get such

a silly opinion?"

Below average

Chance of making

better contacts in the future

from what you have learned

Ron McFarland, Tokyo, Japan

59

The Psychology of Selling

Second response to customer rejection

If the same customer says the same thing to you, you could respond like this:

"You are probably right. How did you find out about me, my company and our

products?"

DEFEATIST: You are right. Our products are not all that good.

Feelings

Helplessness, defeat,

depression, dejection

Ron McFarland, Tokyo, Japan

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The Psychology of Selling

Second response to customer rejection

If the same customer says the same thing to you, you could respond like this:

"You are probably right. How did you find out about me, my company and our

products?"

DEFEATIST: You are right. Our products are not all that good.

Chance of making

the sale

Very low,

below average

Ron McFarland, Tokyo, Japan

61

The Psychology of Selling

Second response to customer rejection

If the same customer says the same thing to you, you could respond like this:

"You are probably right. How did you find out about me, my company and our

products?"

DEFEATIST: You are right. Our products are not all that good.

Chance of building

a business relationship

Very poor

Ron McFarland, Tokyo, Japan

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The Psychology of Selling

Second response to customer rejection

If the same customer says the same thing to you, you could respond like this:

"You are probably right. How did you find out about me, my company and our

products?"

DEFEATIST: You are right. Our products are not all that good.

Chance of continuing

to make other contacts that day

Below average

Ron McFarland, Tokyo, Japan

63

The Psychology of Selling

Second response to customer rejection

If the same customer says the same thing to you, you could respond like this:

"You are probably right. How did you find out about me, my company and our

products?"

DEFEATIST: You are right. Our products are not all that good.

Chance of making

better contacts in the future

from what you have learned

Below average

Ron McFarland, Tokyo, Japan

64

The Psychology of Selling

Third response to customer rejection

If the same customer says the same thing to you, you could respond like this:

"Why do you say that? You may know something I do not know, as I have

never heard that opinion before." Then, get the customer to give you solid data.

He may have good facts or no facts at all!

"RATIONAL OBSERVER": What makes you say that?

Feelings

Confidence, through

questions in control, secureQuestioning, observing, listening

Ron McFarland, Tokyo, Japan

65

The Psychology of Selling

Third response to customer rejection

If the same customer says the same thing to you, you could respond like this:

"Why do you say that? You may know something I do not know, as I have

never heard that opinion before." Then, get the customer to give you solid data.

He may have good facts or no facts at all!

"RATIONAL OBSERVER": What makes you say that?

Chance of making

the sale

Average to above

averageQuestioning, observing, listening

Ron McFarland, Tokyo, Japan

66

The Psychology of Selling

Third response to customer rejection

If the same customer says the same thing to you, you could respond like this:

"Why do you say that? You may know something I do not know, as I have

never heard that opinion before." Then, get the customer to give you solid data.

He may have good facts or no facts at all!

"RATIONAL OBSERVER": What makes you say that?

Chance of building

a business relationship

Average to

Very goodQuestioning, observing, listening

Ron McFarland, Tokyo, Japan

67

The Psychology of Selling

Third response to customer rejection

If the same customer says the same thing to you, you could respond like this:

"Why do you say that? You may know something I do not know, as I have

never heard that opinion before." Then, get the customer to give you solid data.

He may have good facts or no facts at all!

"RATIONAL OBSERVER": What makes you say that?

Very good

Chance of continuing to make

other contacts that day

Questioning, observing, listening

Ron McFarland, Tokyo, Japan

68

The Psychology of Selling

Third response to customer rejection

If the same customer says the same thing to you, you could respond like this:

"Why do you say that? You may know something I do not know, as I have

never heard that opinion before." Then, get the customer to give you solid data.

He may have good facts or no facts at all!

"RATIONAL OBSERVER": What makes you say that?

Very good

Chance of making

better contacts in the future

from what you have learned

Questioning, observing, listening

Ron McFarland, Tokyo, Japan

69

The Psychology of Selling

Mastering Emotions

The successful sales person always makes his actions control his emotions.

No matter what his emotions, he continues the activities in the selling process.

The unsuccessful sales person always lets his emotions control his actions.

He stops selling when he does not feel good.

Some people motivate themselves

When they feel stress…

They act quickly.When they are afraid….

When you are angry….. They try to relax.

They listen to music.

Incentives can help us control our emotions

and keep the whole sales force motivated.

Ron McFarland, Tokyo, Japan

70

The Goals of Incentives & Campaigns

Therefore, incentives and

campaigns are not just to

get sales!

They are to help a person

who is tired of making

customer contacts and

may have stopped.

Ron McFarland, Tokyo, Japan

71

The Goals of Incentives & Campaigns

They are to help a

person who is tired of

telephoning his

customers.

Ron McFarland, Tokyo, Japan

72

The Goals of Incentives & Campaigns

They are to help him

overcome the natural

amount of rejection he

must take.

Ron McFarland, Tokyo, Japan

73

The Goals of Incentives & Campaigns

It is to get him energized

to get going again and

build his confidence.

Ron McFarland, Tokyo, Japan

74

The Goals of Incentives & Campaigns

There are actually several goals of incentives and campaigns:

1. They can help an organization sell products which are hard

to sell or have been in inventory a long time.

2. They can be used with training to encourage sales people to

use the techniques and product knowledge they learned.

3. They can help pull the attention of the salesmen to the

launch of a new product.

4. Most importantly, incentives and campaigns can be fun and

take the stress out of always making sales targets.

Ron McFarland, Tokyo, Japan

75

Sales Campaign Cost Analysis

For any investment, whether facilities, inventory or a sales campaign, an analysis of

that investment of time and money must be considered.

What is the forecast sales and gross profit without

a campaign?

What is the forecast sales and gross profit with a

campaign?

What is the difference?

What is the expense of the campaign?

Subtract the difference from the expense, and you

have your gross profit or loss of the campaign.

Sales & Gross Profit AnalysisSales & Gross Profit Analysis

Sales & gross profit without campaign: $ $

Sales & Gross Profit Analysis

Sales & gross profit without campaign: $ $

Sales & gross profit with campaign: $ $

Sales & Gross Profit Analysis

Sales & gross profit without campaign: $ $

Sales & gross profit with campaign: $ $

Difference: $ $

Sales & Gross Profit Analysis

Sales & gross profit without campaign: $ $

Sales & gross profit with campaign: $ $

Difference: $ $

Campaign expenses: $

Sales & Gross Profit Analysis

Sales & gross profit without campaign: $ $

Sales & gross profit with campaign: $ $

Difference: $ $

Campaign expenses: $

Gross profit or loss due to campaign: $

Sales & Gross Profit Analysis

Sales & gross profit without campaign: $ $

Sales & gross profit with campaign: $ $

Difference: $ $

Campaign expenses: $

Gross profit or loss due to campaign: $

Ron McFarland, Tokyo, Japan

76

Money Motivators

for commissioned

sales people:

The Goals of Incentives & Campaigns

First Sale of the Day - US$50.00 extra is given for the first hole saw

order of the day for $1,000. Each sale after that receives US $5.00

less (2nd - US $45.00, 3rd US $40.00, 4th US $35.00, and so on.......)

Free Lunch - A free lunch is given for all distributor sales people

making a certain number of dollar sales before 12:00.

Mystery product in stock - A bonus is placed on a mystery product

for the day. The sales representative or distributor who orders it gets

the bonus discount for it.

Ron McFarland, Tokyo, Japan

77

The Goals of Incentives & Campaigns

Set sales quotas for each representative –

As sales performance varies greatly by

salesman and region, individual quotas are set

for each representative. If it is achieved a

bonus is given each month. Then, every 3-6

months a ¼ year and ½ year bonus is given.

Drawing - For every dollar amount sale made

by a sales representative a card with a given

prize or money written on it is put into a

drawing box.

Some of the cards are very valuable. Some

are not. At a weekly, monthly, quarterly or

yearly sales meeting, each distributor (sales

representative) takes turns pulling out one of

the tickets until all the tickets in the drawing

box are gone.

Ron McFarland, Tokyo, Japan

78

The Goals of Incentives & Campaigns

(1) Incentives and campaigns help prevent something or

someone interfering with sales people doing their cutting

tool selling job.

(2) It can get an inactive sales force going.

(3) But, it does not replace good sales management. Incentives

and campaigns can be very expensive and the more often

you do them, the more expensive they become!!

Ron McFarland, Tokyo, Japan

79

l Failure to manage himself - The manager must manage his time, his own personal problems

and the salesmen’s problems in a professional way.

l Failure to recognize the importance of profit - Even though the manager in on salary, he must

recognize that his department must be profitable.

l Develop improper relationships - All people in the sales department must be treated the same.

l Supervising individuals in groups - Individual performance problems should be handled one-

on-one in private, not in sales meetings.

l Managing problems not objectives - Management must keep attention on what it wants to

achieve, not just handling day-to-day problems.

l Being a personal friend instead of the boss - When with the sales staff, it is always business

and never pleasure. He must maintain the respect of his people in order for them to follow his

directions. Professional respect is far more important than friendship.

l Attacking people instead of dealing with performance or activities - Management must

concentrate on performance and how to improve it. Attacking a sales person is counter-

productive. He will withdraw, and you can not communicate with him anymore.

l Failure to recognize the importance of development - Learning by sales people should get as

much praise as sales results.

l Recognizing only top sales people - Sales people making their first sale should be recognized.

Sales people with improved sales should be recognized. Sales people with improved sales

techniques should be recognized too.

l Knowing that he can only create a motivational environment - Management can only do so

much to help the sales person. The salesman has got to want to succeed on the job and be

willing to put in the effort. A sales manager can work too hard to help a salesman with no return.

Sales Manager’s Most Common Mistakes

Ron McFarland, Tokyo, Japan

80

l HAVE EMOTIONAL MATURITY - The closer our personal image of ourselves is to the image we project to

the outside world, the more mature we are. He basically has a good understanding of reality.

l HAVE FINANCIAL STABILITY - The manage must be able to remain calm even when sales are lost. By

being calm, both the salesman and the manager learns from the lost sale. If there is financial stress, very

little learning can take place.

l HAVE SALES SKILLS AND TECHNICAL KNOWLEDGE – Simply, a manager is a leader and a teacher. He

can not teach what he, himself does not know.

l HAVE DEVOTION TO THE ORGANIZATION - The manager must always be selling the value of the

organization, the value of the product and the needs and wants the customer has of the product.

l HAVE GOOD JUDGMENT - The manager must convey to the sales people what is important and what is

not. He must set strong priorities.

l HAVE EMPATHY - This is acquired over time when working with each sales person. In time, the manager

will know if the salesman is results-oriented, status-oriented, a quick decision-makers, etc.

l HAVE THE ABILITY TO COMMUNICATE WELL - The manager must know what to communicate, how to

communicate it, and get feedback to confirm it. He must also know what not to communicate.

Successful Sales Managers

Ron McFarland, Tokyo, Japan

81

Getting the sales you want

The more a sales person

helps his customers sell, the

more the sales person

himself will sell in his region.

The more a sales manager

helps his sales people sell

in their respective regions,

the more the sales

manager himself will make

nationwide.

Ron McFarland, Tokyo, Japan

82

If the market is large, or the economy is strong products will sell.

Special events, like earthquakes, interest rate changes, new

regulations, etc. can create demand.

New technology and new products can create demand and make

others obsolete. The higher performance of a product will create

demand on its own.

What affects sales?

1. The economy or market activity2. Demand influencing events3. Technology & advanced products

CCFactors that affect sales

XXX

Ron McFarland, Tokyo, Japan

83

Competition creates demand, as when one company advertises

it creates demand for all similar products, not just their own

product. That is why car dealers are very close to each other.

Sometimes availability and delivery is everything. If you have it,

you get the sale.

What affects sales?

1. The economy or market activity2. Demand influencing events3. Technology & advanced products4. Competition5. Product availability

CCFactors that affect sales

XXXXX

Ron McFarland, Tokyo, Japan

84

If it has an aggressive advertising and promotion program in

place and offer many interesting and motivating incentives to its

sales staff, products will sell.

What affects sales?

1. The economy or market activity2. Demand influencing events3. Technology & advanced products4. Competition5. Product availability6. Merchandising activities

CCFactors that affect sales

XXXXXX

Ron McFarland, Tokyo, Japan

85

If a salesman is actively involved in a prospecting program; If he

does a good job of meeting his customers and making a good

first impression; If he counsels his customers well; If he gives

outstanding presentations and demonstration, uses good

closing techniques, follows up on shipments, and regularly

contacts his customers, products will sell.

What affects sales?

1. The economy or market activity2. Demand influencing events3. Technology & advanced products4. Competition5. Product availability6. Merchandising activities7. The salesman's own efforts

CCFactors that affect sales

XXXXXX

b

Ron McFarland, Tokyo, Japan

86

Control

Six out of seven of these factors are out of the

salesman’s control. He should put more attention on

what he can control and less on the other factors.

C

What affects sales?

Factors that affect sales

b

XXXXXX

1. The economy or market activity2. Demand influencing events3. Technology & advanced products4. Competition5. Product availability6. Merchandising activities7. The salesman's own efforts

Ron McFarland, Tokyo, Japan

87

In conclusion

Looking at all levels of the sales network, the

international distributor salesmen, national

salesmen, regional salesmen, or local

distributor sales staff selling to the user, if we

can say all the sales people are putting in a

sales effort, we will cover the market…..

…..and our sales will go through the roof.

Thank you

Ron McFarland, Tokyo, Japan