CH-11 Sales Management and Sales 2.0 – SELL : Book Guide

Chapter 11 — Sales Management and Sales 2.0 Learning Objectives 11-1 Discuss the key considerations in developing and implementing effective sales strategies. 11-2 Understand the recruitment, selection, and training processes involved in developing the salesforce. 11-3 Identify key activities in directing the salesforce by leading, managing, supervising, motivating, and rewarding salespeople. 11-4 Explain the different methods for evaluating the performance and effectiveness of sales organizations and individual salespeople. 11-5 Describe how sales organizations are using Sales 2.0 to co-create value with customers. Chapter Outline Introduction-261 Sales Management Overview-262 Sales Management Process-262 Sales Management Positions-263 Sales Management Best Practices-263 11-1 Developing and Implementing Effective Sales Strategies-264 Sales Strategy-264 Sales Structure-266 11-2 Developing the Salesforce-268 The Recruitment and Selection Process-268 Sales Training-270 11-3 Directing the Salesforce-272 Sales Leadership Approaches-273 The Role of Power-274 Salesforce Communications-275 Motivation and Reward Systems-276 11-4 Determining Salesforce Effectiveness and Performance-276 Evaluating Sales Organization Effectiveness-277 Evaluating Salesperson Performance-280 11-5 Sales 2.0-283 Customer Relationship Management (CRM)-283 Web 2.0 Products-284 Chapter 11 Case-286 Chapter 11 Role Play-287 Exercises Developing Professional Selling Knowledge 1. According to research, what are the characteristics of the best sales organizations? The research suggests that the best sales organizations 1. Create a customer-driven culture throughout the sales organization and firm. 2. Recruit and hire the best sales talent. 3. Train and coach the right skill set. 4. Focus on key strategic issues by segmenting accounts in meaningful ways and providing differentiated offerings to find, win, and retain customers. 5. Develop an appropriate and adaptable sales organization structure. 6. Implement formal sales and relationship-building processes. 7. Use information technology effectively to learn about customers. 8. Integrate sales with other business functions, especially marketing. 2. Briefly describe the four different types of strategies sales managers must develop and implement. The four different types of strategies sales managers must develop and implement are account targeting strategies, relationship strategies, selling strategies, and sales channel strategy. Account targeting strategies seek to classify accounts within a target market into categories for the purpose of developing strategic approaches for selling to each account or account group. Relationship strategies focus on determining the type of relationship to be developed with different account groups. The different types of relationships range from transactional (short-term focus) to collaborative (long-term focus). Selling strategies focus on the planning of sales messages and interactions with customers and occur at three different levels. Managers develop selling strategies at the group level (e.g., territory), for individual customers, and for specific customer encounters (referred to as sales calls). Sales channel strategies focus on ensuring that each account receives the proper selling effort and coverage. This entails determining whether the sales effort will include a company salesforce, the Internet, distributors, independent representatives, team selling, telemarketing, and/or trade shows (or some combination of these). 3. Explain the different types of sales organization alternatives. The four types of sales organization alternatives are geographic, product, market, and functional. Geographic organization is one of the most common sales organization alternatives. It organizes the market by geographic territories. Product sales organization divides the selling responsibility by the type of product sold. Salespeople develop a specialization based on product, and sometimes this leads to accounts being served by two or more salespeople from the same company. This is an extremely costly alternative. Market sales organization divides the selling responsibility by the markets the company serves. The structure allows salespeople to specialize in the type of customer to which they are selling. This is useful when substantial differences exist between different markets. For example, some organizations separate out institutional, government, and business markets, having different salespeople for each. Functional sales organization divides the selling responsibility by type of selling activity. For example, some organizations separate out lead generation and prospecting from account acquisition and development. Alternatively, some organizations separate out new customer acquisition from account management. Companies may organize their sales organizations by one or a combination of these alternatives. For example, an organization might divide up Canada by region and then, within those regions, organize by product, market, or function. 4. Explain the steps involved in the recruitment and selection process. The steps involved in the recruitment and selection process include planning for recruitment and selection, locating prospective candidates, evaluation, and hiring. Planning for recruitment and selection involves assessing what the particular job entails, what makes someone qualified to perform the job, creating a job description, developing recruitment and selection objectives, and developing a recruitment and selection strategy. Locating prospective candidates involves the process of determining where (either internally or externally) the organization will seek to develop a pool of candidates. This includes advertising the position internally or externally, attending job fairs, and other activities designed to identify a pool of candidates. Evaluation and hiring involves the filtering of the pool of candidates until at least one candidate is targeted for hiring. Then, the organization begins the offering process, negotiating with the candidates until someone is hired. The selection evaluation and hiring process involves a variety of activities, including screening résumés and applications, conducting one or multiple interviews, testing, background investigation, and negotiation. 5. Briefly describe each of the steps of the sales training process. The steps of the sales training process include assessing sales training needs, setting training objectives, evaluating training alternatives, designing sales training programs, performing sales training, and conducting follow-up and evaluation. Assessing sales training needs focuses on determining the extent to which the salesforce possesses the skills, attitudes, perceptions, and behaviours required to be successful. Setting training objectives involves determining the desired outcomes as a result of training. Like all objectives, training objectives should be specific, measurable, and obtainable to maximize their effectiveness. Evaluating training alternatives involves assessing the various training options available. Assessment criteria include cost and time constraints, training location, flexibility of training materials, and opportunity for reinforcement. Designing the sales training program is the process in which the organization creates or pulls together the training materials and organizes them for training delivery such that the training objectives will be met. Performing sales training refers to the actual conducting of the sales training. Conducting follow-up and evaluation involves assessing the extent to which the training was successful in accomplishing its objectives. The evaluation is then used to modify/revise the training process. 6. What are the differences between transactional and transformational leadership? Which style of leadership is better and why? Transactional leadership is based on the leader’s ability to compel subordinates to engage in certain activities and accomplish certain objectives. In other words, subordinates are motivated by what the leader will do for (or to) them if they do not follow the leader’s direction. Transactional leaders rely heavily on the use of reward and coercive power. Transformational leadership relies on the leader’s ability to gain subordinates commitment to engaging in certain activities in accomplishing certain objectives. Subordinates follow the leader’s direction because they believe in the leader and value the leader’s direction. Transformational leaders rely primarily on referent and expert power. While leadership styles differ tremendously, no single leadership style is always better than any other. Effective leaders are those who know how to employ either transactional or transformational leadership based on what the situation requires. 7. What are some common methods for motivating and rewarding salespeople? Explain. Common methods for rewarding and motivating salespeople include the use of salary, bonus, commission, and non compensation rewards such as recognition and opportunities for growth and development. In the absence of coaching, managers use rewards to ensure salespeople expend enough effort on the right job activities so that they achieve the desired outcomes. In addition to rewards, sales managers can motivate salespeople by building their confidence and job-related self-esteem through recognition of achievement and the assignment of greater responsibility. 8. What is the difference between assessing sales organization effectiveness and salesperson performance? Sales organization effectiveness is an overall assessment of how well the sales organization achieved its goals and objectives. In contrast, salesperson performance focuses on how well the individual salesperson performed the activities necessary to carry out their sales responsibilities, as well as their results and contributions to organizational objectives. 9. Describe four methods for assessing salesforce effectiveness. The four methods for assessing salesforce effectiveness include the sales organization audit, sales analysis, cost analysis, and profitability analysis. The sales organization audit is a comprehensive, systematic approach for evaluating sales organization effectiveness, which provides sales management with diagnostic as well as prescriptive information. A sales analysis examines the sales organization’s past, current, and future sales performance in comparison to projections, competition, and industry sales. Cost analysis assesses the costs that the sales organization incurs in the process of generating sales by comparing incurred costs with the planned costs in sales budgets. Profitability analysis evaluates the results from combining sales and cost data to identify and assess sales organization profitability. 10. How are sales organizations using Sales 2.0 to co-create value with customers? Sales organizations are using Sales 2.0 to co-create value with customers through the alignment of strategy, people, processes, and technology in an effort to engage customers in an ongoing dialogue. The ongoing dialogue enhances buyer–seller communication and the sharing of pertinent information that is necessary for both the buyer and Chapter 11 — Sales Management and Sales 2.0 Learning Objectives 11-1 Discuss the key considerations in developing and implementing effective sales strategies. 11-2 Understand the recruitment, selection, and training processes involved in developing the salesforce. 11-3 Identify key activities in directing the salesforce by leading, managing, supervising, motivating, and rewarding salespeople. 11-4 Explain the different methods for evaluating the performance and effectiveness of sales organizations and individual salespeople. 11-5 Describe how sales organizations are using Sales 2.0 to co-create value with customers. Chapter Outline Introduction-261 Sales Management Overview-262 Sales Management Process-262 Sales Management Positions-263 Sales Management Best Practices-263 11-1 Developing and Implementing Effective Sales Strategies-264 Sales Strategy-264 Sales Structure-266 11-2 Developing the Salesforce-268 The Recruitment and Selection Process-268 Sales Training-270 11-3 Directing the Salesforce-272 Sales Leadership Approaches-273 The Role of Power-274 Salesforce Communications-275 Motivation and Reward Systems-276 11-4 Determining Salesforce Effectiveness and Performance-276 Evaluating Sales Organization Effectiveness-277 Evaluating Salesperson Performance-280 11-5 Sales 2.0-283 Customer Relationship Management (CRM)-283 Web 2.0 Products-284 Chapter 11 Case-286 Chapter 11 Role Play-287 Exercises Developing Professional Selling Knowledge 1. According to research, what are the characteristics of the best sales organizations? The research suggests that the best sales organizations 1. Create a customer-driven culture throughout the sales organization and firm. 2. Recruit and hire the best sales talent. 3. Train and coach the right skill set. 4. Focus on key strategic issues by segmenting accounts in meaningful ways and providing differentiated offerings to find, win, and retain customers. 5. Develop an appropriate and adaptable sales organization structure. 6. Implement formal sales and relationship-building processes. 7. Use information technology effectively to learn about customers. 8. Integrate sales with other business functions, especially marketing. 2. Briefly describe the four different types of strategies sales managers must develop and implement. The four different types of strategies sales managers must develop and implement are account targeting strategies, relationship strategies, selling strategies, and sales channel strategy. Account targeting strategies seek to classify accounts within a target market into categories for the purpose of developing strategic approaches for selling to each account or account group. Relationship strategies focus on determining the type of relationship to be developed with different account groups. The different types of relationships range from transactional (short-term focus) to collaborative (long-term focus). Selling strategies focus on the planning of sales messages and interactions with customers and occur at three different levels. Managers develop selling strategies at the group level (e.g., territory), for individual customers, and for specific customer encounters (referred to as sales calls). Sales channel strategies focus on ensuring that each account receives the proper selling effort and coverage. This entails determining whether the sales effort will include a company salesforce, the Internet, distributors, independent representatives, team selling, telemarketing, and/or trade shows (or some combination of these). 3. Explain the different types of sales organization alternatives. The four types of sales organization alternatives are geographic, product, market, and functional. Geographic organization is one of the most common sales organization alternatives. It organizes the market by geographic territories. Product sales organization divides the selling responsibility by the type of product sold. Salespeople develop a specialization based on product, and sometimes this leads to accounts being served by two or more salespeople from the same company. This is an extremely costly alternative. Market sales organization divides the selling responsibility by the markets the company serves. The structure allows salespeople to specialize in the type of customer to which they are selling. This is useful when substantial differences exist between different markets. For example, some organizations separate out institutional, government, and business markets, having different salespeople for each. Functional sales organization divides the selling responsibility by type of selling activity. For example, some organizations separate out lead generation and prospecting from account acquisition and development. Alternatively, some organizations separate out new customer acquisition from account management. Companies may organize their sales organizations by one or a combination of these alternatives. For example, an organization might divide up Canada by region and then, within those regions, organize by product, market, or function. 4. Explain the steps involved in the recruitment and selection process. The steps involved in the recruitment and selection process include planning for recruitment and selection, locating prospective candidates, evaluation, and hiring. Planning for recruitment and selection involves assessing what the particular job entails, what makes someone qualified to perform the job, creating a job description, developing recruitment and selection objectives, and developing a recruitment and selection strategy. Locating prospective candidates involves the process of determining where (either internally or externally) the organization will seek to develop a pool of candidates. This includes advertising the position internally or externally, attending job fairs, and other activities designed to identify a pool of candidates. Evaluation and hiring involves the filtering of the pool of candidates until at least one candidate is targeted for hiring. Then, the organization begins the offering process, negotiating with the candidates until someone is hired. The selection evaluation and hiring process involves a variety of activities, including screening résumés and applications, conducting one or multiple interviews, testing, background investigation, and negotiation. 5. Briefly describe each of the steps of the sales training process. The steps of the sales training process include assessing sales training needs, setting training objectives, evaluating training alternatives, designing sales training programs, performing sales training, and conducting follow-up and evaluation. Assessing sales training needs focuses on determining the extent to which the salesforce possesses the skills, attitudes, perceptions, and behaviours required to be successful. Setting training objectives involves determining the desired outcomes as a result of training. Like all objectives, training objectives should be specific, measurable, and obtainable to maximize their effectiveness. Evaluating training alternatives involves assessing the various training options available. Assessment criteria include cost and time constraints, training location, flexibility of training materials, and opportunity for reinforcement. Designing the sales training program is the process in which the organization creates or pulls together the training materials and organizes them for training delivery such that the training objectives will be met. Performing sales training refers to the actual conducting of the sales training. Conducting follow-up and evaluation involves assessing the extent to which the training was successful in accomplishing its objectives. The evaluation is then used to modify/revise the training process. 6. What are the differences between transactional and transformational leadership? Which style of leadership is better and why? Transactional leadership is based on the leader’s ability to compel subordinates to engage in certain activities and accomplish certain objectives. In other words, subordinates are motivated by what the leader will do for (or to) them if they do not follow the leader’s direction. Transactional leaders rely heavily on the use of reward and coercive power. Transformational leadership relies on the leader’s ability to gain subordinates commitment to engaging in certain activities in accomplishing certain objectives. Subordinates follow the leader’s direction because they believe in the leader and value the leader’s direction. Transformational leaders rely primarily on referent and expert power. While leadership styles differ tremendously, no single leadership style is always better than any other. Effective leaders are those who know how to employ either transactional or transformational leadership based on what the situation requires. 7. What are some common methods for motivating and rewarding salespeople? Explain. Common methods for rewarding and motivating salespeople include the use of salary, bonus, commission, and non compensation rewards such as recognition and opportunities for growth and development. In the absence of coaching, managers use rewards to ensure salespeople expend enough effort on the right job activities so that they achieve the desired outcomes. In addition to rewards, sales managers can motivate salespeople by building their confidence and job-related self-esteem through recognition of achievement and the assignment of greater responsibility. 8. What is the difference between assessing sales organization effectiveness and salesperson performance? Sales organization effectiveness is an overall assessment of how well the sales organization achieved its goals and objectives. In contrast, salesperson performance focuses on how well the individual salesperson performed the activities necessary to carry out their sales responsibilities, as well as their results and contributions to organizational objectives. 9. Describe four methods for assessing salesforce effectiveness. The four methods for assessing salesforce effectiveness include the sales organization audit, sales analysis, cost analysis, and profitability analysis. The sales organization audit is a comprehensive, systematic approach for evaluating sales organization effectiveness, which provides sales management with diagnostic as well as prescriptive information. A sales analysis examines the sales organization’s past, current, and future sales performance in comparison to projections, competition, and industry sales. Cost analysis assesses the costs that the sales organization incurs in the process of generating sales by comparing incurred costs with the planned costs in sales budgets. Profitability analysis evaluates the results from combining sales and cost data to identify and assess sales organization profitability. 10. How are sales organizations using Sales 2.0 to co-create value with customers? Sales organizations are using Sales 2.0 to co-create value with customers through the alignment of strategy, people, processes, and technology in an effort to engage customers in an ongoing dialogue. The ongoing dialogue enhances buyer–seller communication and the sharing of pertinent information that is necessary for both the buyer and the seller to realize their relational and strategic objectives. Salespeople employ CRM tools, social networking, and cloud computing (a combination of CRM and other technologies) as part of a Sales 2.0 strategy. Group Activity Divide the class into small groups. Have each group draw a picture of what they consider to be an ideal sales manager. This picture can take any form. Then have each group explain to the class how their picture represents the ideal sales manager and why. Use student input to lead a class discussion on what it takes to be a great sales manager. Experiential Exercises Screening a Résumé Objective: This exercise gives students an opportunity to screen a résumé from the hiring perspective. As such, they must understand important characteristics of salespeople and determine if a candidate has the necessary qualifications for a specific sales position. It also may lead to some students improving their résumés as they find that they have certain strengths they are not effectively communicating via their résumé. Time Required: 20 to 25 minutes Teaching Tip: Have students complete this exercise in groups of two. Ask students to bring their résumé to class, along with a position description for a sales job the student would like to apply for, and have them exchange these with a classmate. Ask students to use the position description provided by their classmate, coupled with their knowledge of the qualifications and skills required for success by salespeople, to identify their classmate’s strengths and weaknesses relative to filling the sales position. Each student should then write a short evaluation of how well their classmate fits the position based upon the position description and the student’s résumé. When each is finished, they should discuss with the other the strengths and weaknesses they identified. Choosing a Customer Relationship Management System Objective: Your students will be able to identify and understand different customer relationship management software systems. Time Required: 20 to 30 minutes in class, or 60 to 75 minutes individually out of class Teaching Tip: Students could complete this assignment individually or in small groups out of class. Or, as a class, you could conduct an Internet search for CRM software systems and review the pros and cons of each. Sample answers are provided in the instructor’s manual. Your company is a nationwide supplier of high-quality products for pools and spas in both corporate and consumer markets. You have a website supported by both an in-bound telemarketing salesforce of 10, along with 20 outside salespeople who are responsible for calling on large corporate accounts. The salesforce is structured into five regions. As the Vice President of Sales, you have determined that a customer relationship management system might be useful to your organization. Use the World Wide Web, or other means, to locate three possible customer relationship management software systems that your sales organization might utilize. Write a report detailing the pros and cons of each system and make a recommendation regarding which system you believe you would like to implement and why. Students’ answers will vary based on the type of CRM product they find and include in their reports. Sources of advantages and disadvantages include capability, complexity, licensing (i.e., buy versus lease), cost, networkability (Web accessibility, LAN accessibility, or stand-alone), and integration with Outlook (Microsoft Outlook is the most popular contact management application). Video Exercise Sales Management and Sales 2.0 (Not reviewed) Scene 3B, Closing the Deal Part II, run time 2:10 minutes Training and managing salespeople are the role of the sales manager. In addition to implementing the strategic initiatives of the organization, sales managers play a mentorship and training role for their sales staff. Review this video segment and elaborate on Jim’s strategy, delivery, and closing skills throughout his sales interviews as if you were his sales manager. Feel free to review scenes 1B and 2B for a better appreciation of Jim’s performance. Ask your students: 1. What type of constructive feedback would you provide to Jim? Students’ answers will vary. Below is a sample answer. First, I would advise Jim to get a little more actively involved in the situation. In the third call, he appears to be seeing Mark just before heading out to play golf. Although Mark laughs it off, playing golf in the middle of the afternoon may make it difficult for Mark to perceive Jim as serious about earning his business. Overall, Jim seems to take for granted that, because he is the current supplier, he will easily be able to secure the upgrade. It seems like Jim is underestimating the impact of the competition. I would also suggest that Jim work on better addressing the Mark’s primary concern: price. During each call, Mark raised a concern about Jim’s price, and each time Jim was unable to successfully address the concern. Assuming further price reduction is not an option, I would suggest that Jim work harder at justifying his higher price. I would also suggest he attempt to identify and meet with the other decision makers (“the guys upstairs”). He may be more effective than Mark at persuading the other decision makers to purchase his product by demonstrating its value. 2. How would you use the SPIN and ADAPT techniques to frame your thoughts? Students’ answers will vary but should include identifying Jim’s current approach, asking about the trouble he had with that approach, determining the consequences of that trouble, and then projecting how the situation would have been different had he engaged in different behaviours. Below are a few sample questions for framing the feedback: How did Jim handle Mark’s concern about price? What challenges did Jim encounter when handling his concern? How did Jim’s inability to successfully resolve Mark’s concern affect the sales process? How would the sales process have progressed if Jim had been able to successfully resolve Mark’s concern? What needs to be done to improve Jim’s ability to address Mark’s concerns? Chapter 11 Case Alliance Adhesives & Plastics, Inc. Background As one of three Regional Sales Managers for Alliance Adhesives & Plastics, Inc., you have just received summary details from a study of the company’s national field salesforce. The study was done at the request of the Vice President for Sales and Marketing and used a variety of assessment tools to identify the strengths and weaknesses of the company’s 97 salespeople located across Canada. Based on these results, the Vice President for Sales and Marketing has assigned you and your three-person Regional Managers Team the task to develop a step-by-step program that will move the company forward toward a revitalized and more effective salesforce. In response to the company’s new marketing strategy designed to “get close to the customer,” the salesforce was completely reorganized a little over four years ago, moving from a strictly geographic-based territory system to a specialized selling force organized around the different served markets. As the result of the reorganization and transformation of the company’s salespeople into a salesforce specialized around served markets, definite improvements were realized in account penetration and customer retention. Nevertheless, spot checks randomly made across various customers indicate that there is still much room for improvement. Customer satisfaction levels are still low, and the company has some difficulty keeping good accounts. Current Situation Customers give Alliance salespeople strong marks for product knowledge—probably a reflection of the existing training program, which has intensive initial and recurrent training on the wide variety of products offered. Surprisingly, while customers rate the salespeople high for their product knowledge, they also indicate that the Alliance salespeople appear somewhat arrogant and self-centred. Many of the responses show that, overall, the salesforce does not care about the customer and does not attempt or even take the time to fully explore and understand problems or new applications requiring novel solutions. Instead, the salesforce always seems to have some fixed response and attempts to pressure and persuade buyers rather than offering creative or customized product solutions. Questions 1. Based on the information given, what are the major problems facing the sales organization? The major problem facing the sales organization is that its salespeople are not customer oriented. While they appear to possess a great deal of expertise, they do not seem to be concerned about engaging the customer in a compatible, customer-oriented manner. This lack of concern for building and managing a successful trust-based relationship with the customer represents a substantial weakness, one that competitors could leverage to take market share away from Alliance Adhesives. 2. What changes in the recruiting and selection of salespeople would you suggest? Why? First, I would suggest that the company conduct a job analysis and re-examine the job qualifications, given the new information about the importance of being compatible and presenting a customer orientation. Second, I would seek to identify and recruit from a pool of candidates who possess a superior understanding of the importance of building and maintaining customer relationships. Hiring people who already possess superior customer relationship management skills would help reduce the need for training in this area. These new hires could then be put through the company’s product training program, which is proven to be effective. 3. What changes in sales training would you suggest? Why? The company’s product training appears to be quite successful. What the company is lacking is a training program designed to develop and enhance professional selling skills. I would suggest the organization take immediate steps to add a more comprehensive “professional selling process” training program, one that focuses on initiating, developing, and maintaining customer relationships. 4. What changes in sales management leadership would you suggest? Why? Students’ answers will vary. Following is a sample answer: I would suggest a change to a more transformational leadership structure. Members of the current salesforce who are experiencing customer relationship development problems will need to be motivated and inspired to change their behaviours. It’s unlikely that transactional leadership will be effective, at least in bringing about long-term change, in the present situation. I would also suggest that the organization’s sales managers become more actively involved with their salespeople, including increasing the frequency of ride-a-longs and coaching. Role Play Situation: Read the case Characters: The four regional sales managers Scene: The four regional sales managers are meeting in a conference room to identify ideas to improve the company’s sales organization. The ideas generated will be presented to the Vice President of Sales and Marketing next week. Role-play the meeting among the four regional sales managers to determine the plan that will be presented to the Vice President of Sales and Marketing next week. After completing the role-play, answer the following questions: 1. Discuss the advantages and disadvantages of the ideas discussed during this meeting. Role-Play: [In a conference room, the four regional sales managers gather around a table, armed with notebooks and pens. They start discussing ideas to improve the company’s sales organization.] Manager 1: Alright team, let's brainstorm some ideas to present to the VP next week. How about implementing a new CRM system to streamline our processes? Manager 2: That sounds promising. We could also focus on enhancing our sales training programs to improve the skills of our reps. Manager 3: Agreed. And what about incentivizing cross-selling between regions? It could foster collaboration and increase revenue. Manager 4: Definitely. Plus, let’s not overlook the importance of improving our customer service to ensure customer retention. [They continue discussing the pros and cons of each idea, eventually refining their plan to present to the VP.] Manager 1: So, it seems like we've got a solid plan. Let's flesh out the details and get ready to impress the VP next week. Manager 2: Agreed. I think we've covered all the bases and come up with some actionable strategies. Manager 3: Absolutely. With everyone's input, I'm confident we'll make a compelling case for these improvements. Manager 4: Great teamwork, everyone. Let’s make sure to highlight the potential impact and feasibility of each idea in our presentation. Advantages and Disadvantages: Advantages: • Implementing a new CRM system: Streamlines processes, improves data management, and enhances efficiency in tracking leads and follow-ups. • Enhancing sales training programs: Builds a more skilled and motivated sales team, leading to increased productivity and better customer interactions. • Incentivizing cross-selling: Encourages collaboration among regions, expands revenue streams, and strengthens relationships with customers. • Improving customer service: Boosts customer satisfaction and loyalty, leading to repeat business and positive word-of-mouth. Disadvantages: • Implementing a new CRM system: Requires initial investment and time for implementation and training, potential resistance from employees. • Enhancing sales training programs: Requires ongoing investment in resources and time for development and implementation, with no immediate guaranteed results. • Incentivizing cross-selling: Could lead to conflicts over commissions or competition among regions if not managed effectively. • Improving customer service: Requires significant investment in training and resources, with potential challenges in maintaining consistency across regions. 2. Present the details of what was agreed to during this meeting. During the meeting, the following plan was agreed upon: 1. Implementing a new CRM system to streamline processes and improve lead management. 2. Enhancing sales training programs to boost the skills and motivation of the sales team. 3. Incentivizing cross-selling between regions to foster collaboration and increase revenue. 4. Improving customer service standards to enhance satisfaction and loyalty. 5. Each idea will be presented with clear objectives, timelines, and expected outcomes. 6. The team will emphasize the potential impact and feasibility of each proposal to the VP. 3. Describe the process used to determine the plan that will be recommended. The process involved: 1. Brainstorming ideas collaboratively among the regional sales managers. 2. Evaluating each idea's potential benefits and drawbacks. 3. Prioritizing ideas based on their alignment with company goals and feasibility. 4. Discussing and refining the selected ideas to ensure comprehensive coverage. 5. Agreeing on a final plan that combines elements from each idea to present a cohesive strategy. 6. Ensuring consensus among the team before finalizing the recommendations for presentation to the Vice President of Sales and Marketing. Chapter 11 Role Play Improving Sales Training Background Daniel Roche, National Sales Manager at the Widget Company, is concerned about his company’s sales training program. The Widget Company is based in Hamilton, but operates throughout Canada with 100 salespeople. Sales and profit growth has slowed in recent quarters. Some of this is due to the tough economic climate, but company studies indicate that customer satisfaction and retention rates have been declining. A sales organization audit identified potential problems with the current sales training program. The audit indicated that current training costs are about 23 percent higher than other companies in the industry. The cost of bringing all salespeople to Hamilton for face-to-face, centralized training, conducted by members of the Corporate Training and Development Division was particularly high. The centralized training seemed to produce strong camaraderie and commitment among the members of the salesforce. In addition, most of the current training focused on the technical attributes of the products. So, it was also convenient to have training in Hamilton, where the main development and testing labs and technicians are located. There are clear benefits to centralized training, but the costs associated with this approach are increasing rapidly. The results from the audit also suggested that the Widget Company was overemphasizing product and technical training, and shortchanging business knowledge and consultative sales skills. There was not enough training emphasis on questioning and listening skills, presentation skills, and relationship-building skills. Many salespeople were dissatisfied with the sales training being offered, and indicated that the lack of training in these areas put them at a disadvantage against salespeople from competing firms. Current Situation Daniel Roche has decided to bring a regional sales manager, field sales manager, and salesperson to meet with him in Hamilton to determine the best ways to improve the company’s sales training program. Each stage in the sales training process will be discussed at this meeting. The objective of the meeting is to develop a basic sales training improvement plan. Role Play Situation: Read the role-play. Characters: National Sales Manager, Regional Sales Manager, Field Sales Manager, and salesperson Scene: The meeting takes place in the National Sales Manager’s office in Hamilton. Role plays this meeting by discussing each stage of the sales training process from the perspective of the National Sales Manager, Regional Sales Manager, Field Sales Manager, and salesperson. After completing the role-play, address the following questions: 1. What ideas were generated for each stage of the sales training process? Needs Assessment: National Sales Manager: Suggested conducting comprehensive surveys and interviews with customers and salespeople to identify gaps in current training. Regional Sales Manager: Proposed analyzing sales performance data to pinpoint specific areas where salespeople are struggling. Field Sales Manager: Recommended conducting one-on-one feedback sessions with salespeople to understand their individual training needs. Salesperson: Highlighted the importance of getting feedback directly from the field to understand the real challenges faced during sales interactions. Design: National Sales Manager: Emphasized the need for a balanced training curriculum that includes product knowledge, business acumen, and soft skills. Regional Sales Manager: Suggested incorporating case studies and real-world scenarios relevant to different regions. Field Sales Manager: Proposed a modular training approach that allows salespeople to choose specific areas they need improvement in. Salesperson: Recommended integrating more interactive and hands-on training methods to make learning more engaging. Development: National Sales Manager: Called for collaboration with external consultants to develop high-quality training materials. Regional Sales Manager: Suggested leveraging digital platforms to create online training modules, reducing the need for travel. Field Sales Manager: Proposed involving top-performing salespeople in the development of training content to ensure practicality. Salesperson: Highlighted the need for ongoing training updates to keep up with market changes and new product launches. Implementation: National Sales Manager: Supported a blended learning approach combining online modules with periodic in-person sessions. Regional Sales Manager: Recommended regional training hubs to reduce travel costs while maintaining some face-to-face interaction. Field Sales Manager: Suggested incorporating on-the-job training and mentorship programs to provide continuous learning. Salesperson: Proposed flexible training schedules to accommodate different time zones and personal commitments. Evaluation: National Sales Manager: Emphasized the importance of regular assessments to measure training effectiveness and ROI. Regional Sales Manager: Proposed using sales performance metrics and customer feedback to evaluate training outcomes. Field Sales Manager: Suggested implementing feedback loops where salespeople can provide ongoing input on training programs. Salesperson: Recommended post-training surveys and follow-up sessions to ensure training objectives are being met. 2. How did the perspectives of the National Sales Manager, Regional Sales Manager, Field Sales Manager, and salesperson differ during this meeting? National Sales Manager: Focused on strategic alignment and the overall effectiveness of the training program. Concerned with balancing cost and benefits. Emphasized the importance of a comprehensive and structured training approach. Regional Sales Manager: Interested in tailoring the training to address regional market conditions. Focused on practical and applicable training content. Concerned with reducing travel costs while maintaining training quality. Field Sales Manager: Emphasized the need for continuous and on-the-job training. Advocated for the involvement of high-performing salespeople in training. Focused on practical implementation and real-world applicability. Salesperson: Focused on the direct impact of training on daily sales activities. Emphasized the need for engaging and interactive training methods. Concerned with flexibility and relevance of the training content. 3. What ideas for improving the sales training program were agreed to during the meeting? Why? Balanced Curriculum: Agreement on developing a balanced training program that includes technical product knowledge, business acumen, and soft skills like questioning, listening, presentation, and relationship-building. Blended Learning Approach: Consensus on adopting a blended learning approach that combines online training modules with periodic in-person sessions to maintain camaraderie and commitment while reducing costs. Regional Training Hubs: Agreement on establishing regional training hubs to minimize travel costs and logistical challenges while still offering face-to-face interaction. Interactive and Hands-On Training: Consensus on making training more interactive and hands-on to engage salespeople better and ensure practical learning. Continuous Evaluation: Agreement on implementing regular assessments and feedback mechanisms to continuously improve the training program and ensure it meets the needs of the salesforce. These ideas were agreed upon because they addressed the concerns of all participants by balancing cost, practicality, and effectiveness while ensuring the training program is comprehensive and relevant to the salesforce's needs. Chapter 11 Continuing Case The Finish Line It is two weeks before the end of the fiscal year for NCC. Brenda has already achieved her annual sales quota and is pleased with her performance this year. She knows that she has improved her sales skills and is doing a good job in each stage of the sales process. Her sales manager, Jin Tan, will be working with her in the field this week and then will be performing her annual performance review and discussing it with her within the next month. Jin Tan and Brenda have just completed a sales call together. Although Brenda did not get the sale, she thought she did a good job and thinks the prospect might contact her in the future about NCC copiers. Jin Tan, however, is disappointed that Brenda did not move the sales process forward. Although the prospect was not necessarily expected to buy during this presentation, Jin thought Brenda missed an opportunity to get the prospect to visit the NCC office for a copier demonstration. This would have moved the sales process forward. Jin was also thinking about the annual performance reviews next month. This is always a tense time. Jin is generally satisfied with Brenda’s performance last year and with her development as a salesperson. But, as indicated in the recent sales call, she needs to improve her skills in gaining commitment. Brenda could also be more productive if she became more proficient in using some of the new Sales 2.0 technologies, especially LinkedIn. These are two areas Jin will address during the annual performance review meeting with Brenda. Questions 1. Jin and Brenda have just finished the joint sales call and are meeting for a coaching session. Present an example of the dialogue that should take place during this meeting. Jin: Brenda, how do you think the call went? Brenda: I think it went well. I didn’t get the sale but I’m confident that one day I’ll earn that account’s business. Jin: Okay, but do you think it’s possible you missed an opportunity to earn that customer’s business? Brenda: Maybe, but how? Jin: By being a bit more persuasive during the call and little more assertive during the close. Brenda, I’ve been generally pleased with your performance over the last year and with your professional development. Now it’s time to continue that improvement by focusing on developing a couple of areas. First, I want you to work on your closing skills. Second, I’d like you to learn about and begin incorporating Sales 2.0 technologies, especially business social networking tools like LinkedIn. If you can improve in these two areas, your productivity will increase substantially. 2. Develop a sales training program Jin might use to improve Brenda’s skills in gaining commitment from prospects. Sales Training Program to Improve Brenda’s Skills in Gaining Commitment from Prospects: 1. Understanding the Psychology of Commitment: Objective: Provide Brenda with insights into the psychological factors that influence commitment from prospects. Activities: Conduct workshops or seminars focusing on persuasion techniques, such as reciprocity, social proof, and scarcity. Use real-life examples and case studies to illustrate how these principles can be applied in sales situations. Outcome: Brenda gains a deeper understanding of why prospects commit to a purchase and learns how to leverage psychological principles to enhance her sales pitch. 2. Effective Communication Skills: Objective: Enhance Brenda’s communication skills to build rapport and trust with prospects, ultimately leading to commitment. Activities: Role-playing exercises to practice active listening, asking probing questions, and addressing objections effectively. Provide feedback and coaching to refine Brenda’s communication style and ensure clarity and persuasiveness in her interactions. Outcome: Brenda develops stronger rapport with prospects, effectively addresses their concerns, and builds trust, leading to increased commitment in sales conversations. 3. Overcoming Objections and Closing Techniques: Objective: Equip Brenda with strategies to overcome objections and confidently close sales deals. Activities: Simulate common objections encountered in the sales process and guide Brenda in crafting persuasive responses. Introduce proven closing techniques, such as the assumptive close, alternative choice close, and urgency close, through role-plays and interactive sessions. Outcome: Brenda gains confidence in handling objections, effectively addresses prospect concerns, and employs closing techniques to secure commitments from potential customers. 4. Utilizing Sales Tools and Resources: Objective: Familiarize Brenda with sales tools and resources that can aid her in the commitment-gaining process. Activities: Provide training on utilizing CRM software to track prospect interactions, manage leads, and follow up effectively. Introduce relevant sales materials, such as product demos, testimonials, and case studies, and demonstrate how to leverage them to reinforce value propositions and facilitate commitment. Outcome: Brenda becomes proficient in utilizing sales tools and resources to support her sales efforts, leading to improved efficiency and effectiveness in gaining commitment from prospects. 5. Continuous Feedback and Coaching: Objective: Establish a feedback loop to monitor Brenda’s progress and provide ongoing coaching and support. Activities: Schedule regular one-on-one coaching sessions to review Brenda’s sales performance, provide constructive feedback, and address any challenges or areas for improvement. Encourage self-reflection and goal setting to drive continuous growth and development. Outcome: Brenda receives personalized guidance and support to refine her skills, adapt to evolving sales scenarios, and consistently improve her ability to gain commitment from prospects. By implementing this comprehensive sales training program, Jin can empower Brenda with the knowledge, skills, and confidence needed to effectively gain commitment from prospects, ultimately driving sales success and contributing to the growth of the organization. 3. Explain to Brenda how she might use LinkedIn to increase her sales productivity. LinkedIn in is a powerful business social networking tool. As your social network grows, you will be able to use it to generate and qualify leads, learn about prospects and their organizations (including identifying key decision makers), and connect with customers in ways that will increase the value of your relationships with them. 4. Jin and Brenda are getting ready to have their annual performance meeting. How should Jin conduct this meeting to motivate Brenda to increase her performance next year? Jin needs to engage her transformational leadership style and serve as a coach and mentor. She needs to let Brenda know that she is a valued employee. Jin also needs to recognize Brenda for what she’s accomplished over the past year, and lay out a roadmap for what she needs to accomplish over the next year. This includes assuring Brenda that she will receive the training and support necessary for making Brenda successful moving forward. Jin needs to encourage Brenda to participate candidly throughout the meeting. the seller to realize their relational and strategic objectives. Salespeople employ CRM tools, social networking, and cloud computing (a combination of CRM and other technologies) as part of a Sales 2.0 strategy. Group Activity Divide the class into small groups. Have each group draw a picture of what they consider to be an ideal sales manager. This picture can take any form. Then have each group explain to the class how their picture represents the ideal sales manager and why. Use student input to lead a class discussion on what it takes to be a great sales manager. Experiential Exercises Screening a Résumé Objective: This exercise gives students an opportunity to screen a résumé from the hiring perspective. As such, they must understand important characteristics of salespeople and determine if a candidate has the necessary qualifications for a specific sales position. It also may lead to some students improving their résumés as they find that they have certain strengths they are not effectively communicating via their résumé. Time Required: 20 to 25 minutes Teaching Tip: Have students complete this exercise in groups of two. Ask students to bring their résumé to class, along with a position description for a sales job the student would like to apply for, and have them exchange these with a classmate. Ask students to use the position description provided by their classmate, coupled with their knowledge of the qualifications and skills required for success by salespeople, to identify their classmate’s strengths and weaknesses relative to filling the sales position. Each student should then write a short evaluation of how well their classmate fits the position based upon the position description and the student’s résumé. When each is finished, they should discuss with the other the strengths and weaknesses they identified. Choosing a Customer Relationship Management System Objective: Your students will be able to identify and understand different customer relationship management software systems. Time Required: 20 to 30 minutes in class, or 60 to 75 minutes individually out of class Teaching Tip: Students could complete this assignment individually or in small groups out of class. Or, as a class, you could conduct an Internet search for CRM software systems and review the pros and cons of each. Sample answers are provided in the instructor’s manual. Your company is a nationwide supplier of high-quality products for pools and spas in both corporate and consumer markets. You have a website supported by both an in-bound telemarketing salesforce of 10, along with 20 outside salespeople who are responsible for calling on large corporate accounts. The salesforce is structured into five regions. As the Vice President of Sales, you have determined that a customer relationship management system might be useful to your organization. Use the World Wide Web, or other means, to locate three possible customer relationship management software systems that your sales organization might utilize. Write a report detailing the pros and cons of each system and make a recommendation regarding which system you believe you would like to implement and why. Students’ answers will vary based on the type of CRM product they find and include in their reports. Sources of advantages and disadvantages include capability, complexity, licensing (i.e., buy versus lease), cost, networkability (Web accessibility, LAN accessibility, or stand-alone), and integration with Outlook (Microsoft Outlook is the most popular contact management application). Video Exercise Sales Management and Sales 2.0 (Not reviewed) Scene 3B, Closing the Deal Part II, run time 2:10 minutes Training and managing salespeople are the role of the sales manager. In addition to implementing the strategic initiatives of the organization, sales managers play a mentorship and training role for their sales staff. Review this video segment and elaborate on Jim’s strategy, delivery, and closing skills throughout his sales interviews as if you were his sales manager. Feel free to review scenes 1B and 2B for a better appreciation of Jim’s performance. Ask your students: 1. What type of constructive feedback would you provide to Jim? Students’ answers will vary. Below is a sample answer. First, I would advise Jim to get a little more actively involved in the situation. In the third call, he appears to be seeing Mark just before heading out to play golf. Although Mark laughs it off, playing golf in the middle of the afternoon may make it difficult for Mark to perceive Jim as serious about earning his business. Overall, Jim seems to take for granted that, because he is the current supplier, he will easily be able to secure the upgrade. It seems like Jim is underestimating the impact of the competition. I would also suggest that Jim work on better addressing the Mark’s primary concern: price. During each call, Mark raised a concern about Jim’s price, and each time Jim was unable to successfully address the concern. Assuming further price reduction is not an option, I would suggest that Jim work harder at justifying his higher price. I would also suggest he attempt to identify and meet with the other decision makers (“the guys upstairs”). He may be more effective than Mark at persuading the other decision makers to purchase his product by demonstrating its value. 2. How would you use the SPIN and ADAPT techniques to frame your thoughts? Students’ answers will vary but should include identifying Jim’s current approach, asking about the trouble he had with that approach, determining the consequences of that trouble, and then projecting how the situation would have been different had he engaged in different behaviours. Below are a few sample questions for framing the feedback: How did Jim handle Mark’s concern about price? What challenges did Jim encounter when handling his concern? How did Jim’s inability to successfully resolve Mark’s concern affect the sales process? How would the sales process have progressed if Jim had been able to successfully resolve Mark’s concern? What needs to be done to improve Jim’s ability to address Mark’s concerns? Chapter 11 Case Alliance Adhesives & Plastics, Inc. Background As one of three Regional Sales Managers for Alliance Adhesives & Plastics, Inc., you have just received summary details from a study of the company’s national field salesforce. The study was done at the request of the Vice President for Sales and Marketing and used a variety of assessment tools to identify the strengths and weaknesses of the company’s 97 salespeople located across Canada. Based on these results, the Vice President for Sales and Marketing has assigned you and your three-person Regional Managers Team the task to develop a step-by-step program that will move the company forward toward a revitalized and more effective salesforce. In response to the company’s new marketing strategy designed to “get close to the customer,” the salesforce was completely reorganized a little over four years ago, moving from a strictly geographic-based territory system to a specialized selling force organized around the different served markets. As the result of the reorganization and transformation of the company’s salespeople into a salesforce specialized around served markets, definite improvements were realized in account penetration and customer retention. Nevertheless, spot checks randomly made across various customers indicate that there is still much room for improvement. Customer satisfaction levels are still low, and the company has some difficulty keeping good accounts. Current Situation Customers give Alliance salespeople strong marks for product knowledge—probably a reflection of the existing training program, which has intensive initial and recurrent training on the wide variety of products offered. Surprisingly, while customers rate the salespeople high for their product knowledge, they also indicate that the Alliance salespeople appear somewhat arrogant and self-centred. Many of the responses show that, overall, the salesforce does not care about the customer and does not attempt or even take the time to fully explore and understand problems or new applications requiring novel solutions. Instead, the salesforce always seems to have some fixed response and attempts to pressure and persuade buyers rather than offering creative or customized product solutions. Questions 1. Based on the information given, what are the major problems facing the sales organization? The major problem facing the sales organization is that its salespeople are not customer oriented. While they appear to possess a great deal of expertise, they do not seem to be concerned about engaging the customer in a compatible, customer-oriented manner. This lack of concern for building and managing a successful trust-based relationship with the customer represents a substantial weakness, one that competitors could leverage to take market share away from Alliance Adhesives. 2. What changes in the recruiting and selection of salespeople would you suggest? Why? First, I would suggest that the company conduct a job analysis and re-examine the job qualifications, given the new information about the importance of being compatible and presenting a customer orientation. Second, I would seek to identify and recruit from a pool of candidates who possess a superior understanding of the importance of building and maintaining customer relationships. Hiring people who already possess superior customer relationship management skills would help reduce the need for training in this area. These new hires could then be put through the company’s product training program, which is proven to be effective. 3. What changes in sales training would you suggest? Why? The company’s product training appears to be quite successful. What the company is lacking is a training program designed to develop and enhance professional selling skills. I would suggest the organization take immediate steps to add a more comprehensive “professional selling process” training program, one that focuses on initiating, developing, and maintaining customer relationships. 4. What changes in sales management leadership would you suggest? Why? Students’ answers will vary. Following is a sample answer: I would suggest a change to a more transformational leadership structure. Members of the current salesforce who are experiencing customer relationship development problems will need to be motivated and inspired to change their behaviours. It’s unlikely that transactional leadership will be effective, at least in bringing about long-term change, in the present situation. I would also suggest that the organization’s sales managers become more actively involved with their salespeople, including increasing the frequency of ride-a-longs and coaching. Role Play Situation: Read the case Characters: The four regional sales managers Scene: The four regional sales managers are meeting in a conference room to identify ideas to improve the company’s sales organization. The ideas generated will be presented to the Vice President of Sales and Marketing next week. Role-play the meeting among the four regional sales managers to determine the plan that will be presented to the Vice President of Sales and Marketing next week. After completing the role-play, answer the following questions: 1. Discuss the advantages and disadvantages of the ideas discussed during this meeting. Role-Play: [In a conference room, the four regional sales managers gather around a table, armed with notebooks and pens. They start discussing ideas to improve the company’s sales organization.] Manager 1: Alright team, let's brainstorm some ideas to present to the VP next week. How about implementing a new CRM system to streamline our processes? Manager 2: That sounds promising. We could also focus on enhancing our sales training programs to improve the skills of our reps. Manager 3: Agreed. And what about incentivizing cross-selling between regions? It could foster collaboration and increase revenue. Manager 4: Definitely. Plus, let’s not overlook the importance of improving our customer service to ensure customer retention. [They continue discussing the pros and cons of each idea, eventually refining their plan to present to the VP.] Manager 1: So, it seems like we've got a solid plan. Let's flesh out the details and get ready to impress the VP next week. Manager 2: Agreed. I think we've covered all the bases and come up with some actionable strategies. Manager 3: Absolutely. With everyone's input, I'm confident we'll make a compelling case for these improvements. Manager 4: Great teamwork, everyone. Let’s make sure to highlight the potential impact and feasibility of each idea in our presentation. Advantages and Disadvantages: Advantages: • Implementing a new CRM system: Streamlines processes, improves data management, and enhances efficiency in tracking leads and follow-ups. • Enhancing sales training programs: Builds a more skilled and motivated sales team, leading to increased productivity and better customer interactions. • Incentivizing cross-selling: Encourages collaboration among regions, expands revenue streams, and strengthens relationships with customers. • Improving customer service: Boosts customer satisfaction and loyalty, leading to repeat business and positive word-of-mouth. Disadvantages: • Implementing a new CRM system: Requires initial investment and time for implementation and training, potential resistance from employees. • Enhancing sales training programs: Requires ongoing investment in resources and time for development and implementation, with no immediate guaranteed results. • Incentivizing cross-selling: Could lead to conflicts over commissions or competition among regions if not managed effectively. • Improving customer service: Requires significant investment in training and resources, with potential challenges in maintaining consistency across regions. 2. Present the details of what was agreed to during this meeting. During the meeting, the following plan was agreed upon: 1. Implementing a new CRM system to streamline processes and improve lead management. 2. Enhancing sales training programs to boost the skills and motivation of the sales team. 3. Incentivizing cross-selling between regions to foster collaboration and increase revenue. 4. Improving customer service standards to enhance satisfaction and loyalty. 5. Each idea will be presented with clear objectives, timelines, and expected outcomes. 6. The team will emphasize the potential impact and feasibility of each proposal to the VP. 3. Describe the process used to determine the plan that will be recommended. The process involved: 1. Brainstorming ideas collaboratively among the regional sales managers. 2. Evaluating each idea's potential benefits and drawbacks. 3. Prioritizing ideas based on their alignment with company goals and feasibility. 4. Discussing and refining the selected ideas to ensure comprehensive coverage. 5. Agreeing on a final plan that combines elements from each idea to present a cohesive strategy. 6. Ensuring consensus among the team before finalizing the recommendations for presentation to the Vice President of Sales and Marketing. Chapter 11 Role Play Improving Sales Training Background Daniel Roche, National Sales Manager at the Widget Company, is concerned about his company’s sales training program. The Widget Company is based in Hamilton, but operates throughout Canada with 100 salespeople. Sales and profit growth has slowed in recent quarters. Some of this is due to the tough economic climate, but company studies indicate that customer satisfaction and retention rates have been declining. A sales organization audit identified potential problems with the current sales training program. The audit indicated that current training costs are about 23 percent higher than other companies in the industry. The cost of bringing all salespeople to Hamilton for face-to-face, centralized training, conducted by members of the Corporate Training and Development Division was particularly high. The centralized training seemed to produce strong camaraderie and commitment among the members of the salesforce. In addition, most of the current training focused on the technical attributes of the products. So, it was also convenient to have training in Hamilton, where the main development and testing labs and technicians are located. There are clear benefits to centralized training, but the costs associated with this approach are increasing rapidly. The results from the audit also suggested that the Widget Company was overemphasizing product and technical training, and shortchanging business knowledge and consultative sales skills. There was not enough training emphasis on questioning and listening skills, presentation skills, and relationship-building skills. Many salespeople were dissatisfied with the sales training being offered, and indicated that the lack of training in these areas put them at a disadvantage against salespeople from competing firms. Current Situation Daniel Roche has decided to bring a regional sales manager, field sales manager, and salesperson to meet with him in Hamilton to determine the best ways to improve the company’s sales training program. Each stage in the sales training process will be discussed at this meeting. The objective of the meeting is to develop a basic sales training improvement plan. Role Play Situation: Read the role-play. Characters: National Sales Manager, Regional Sales Manager, Field Sales Manager, and salesperson Scene: The meeting takes place in the National Sales Manager’s office in Hamilton. Role plays this meeting by discussing each stage of the sales training process from the perspective of the National Sales Manager, Regional Sales Manager, Field Sales Manager, and salesperson. After completing the role-play, address the following questions: 1. What ideas were generated for each stage of the sales training process? Needs Assessment: National Sales Manager: Suggested conducting comprehensive surveys and interviews with customers and salespeople to identify gaps in current training. Regional Sales Manager: Proposed analyzing sales performance data to pinpoint specific areas where salespeople are struggling. Field Sales Manager: Recommended conducting one-on-one feedback sessions with salespeople to understand their individual training needs. Salesperson: Highlighted the importance of getting feedback directly from the field to understand the real challenges faced during sales interactions. Design: National Sales Manager: Emphasized the need for a balanced training curriculum that includes product knowledge, business acumen, and soft skills. Regional Sales Manager: Suggested incorporating case studies and real-world scenarios relevant to different regions. Field Sales Manager: Proposed a modular training approach that allows salespeople to choose specific areas they need improvement in. Salesperson: Recommended integrating more interactive and hands-on training methods to make learning more engaging. Development: National Sales Manager: Called for collaboration with external consultants to develop high-quality training materials. Regional Sales Manager: Suggested leveraging digital platforms to create online training modules, reducing the need for travel. Field Sales Manager: Proposed involving top-performing salespeople in the development of training content to ensure practicality. Salesperson: Highlighted the need for ongoing training updates to keep up with market changes and new product launches. Implementation: National Sales Manager: Supported a blended learning approach combining online modules with periodic in-person sessions. Regional Sales Manager: Recommended regional training hubs to reduce travel costs while maintaining some face-to-face interaction. Field Sales Manager: Suggested incorporating on-the-job training and mentorship programs to provide continuous learning. Salesperson: Proposed flexible training schedules to accommodate different time zones and personal commitments. Evaluation: National Sales Manager: Emphasized the importance of regular assessments to measure training effectiveness and ROI. Regional Sales Manager: Proposed using sales performance metrics and customer feedback to evaluate training outcomes. Field Sales Manager: Suggested implementing feedback loops where salespeople can provide ongoing input on training programs. Salesperson: Recommended post-training surveys and follow-up sessions to ensure training objectives are being met. 2. How did the perspectives of the National Sales Manager, Regional Sales Manager, Field Sales Manager, and salesperson differ during this meeting? National Sales Manager: Focused on strategic alignment and the overall effectiveness of the training program. Concerned with balancing cost and benefits. Emphasized the importance of a comprehensive and structured training approach. Regional Sales Manager: Interested in tailoring the training to address regional market conditions. Focused on practical and applicable training content. Concerned with reducing travel costs while maintaining training quality. Field Sales Manager: Emphasized the need for continuous and on-the-job training. Advocated for the involvement of high-performing salespeople in training. Focused on practical implementation and real-world applicability. Salesperson: Focused on the direct impact of training on daily sales activities. Emphasized the need for engaging and interactive training methods. Concerned with flexibility and relevance of the training content. 3. What ideas for improving the sales training program were agreed to during the meeting? Why? Balanced Curriculum: Agreement on developing a balanced training program that includes technical product knowledge, business acumen, and soft skills like questioning, listening, presentation, and relationship-building. Blended Learning Approach: Consensus on adopting a blended learning approach that combines online training modules with periodic in-person sessions to maintain camaraderie and commitment while reducing costs. Regional Training Hubs: Agreement on establishing regional training hubs to minimize travel costs and logistical challenges while still offering face-to-face interaction. Interactive and Hands-On Training: Consensus on making training more interactive and hands-on to engage salespeople better and ensure practical learning. Continuous Evaluation: Agreement on implementing regular assessments and feedback mechanisms to continuously improve the training program and ensure it meets the needs of the salesforce. These ideas were agreed upon because they addressed the concerns of all participants by balancing cost, practicality, and effectiveness while ensuring the training program is comprehensive and relevant to the salesforce's needs. Chapter 11 Continuing Case The Finish Line It is two weeks before the end of the fiscal year for NCC. Brenda has already achieved her annual sales quota and is pleased with her performance this year. She knows that she has improved her sales skills and is doing a good job in each stage of the sales process. Her sales manager, Jin Tan, will be working with her in the field this week and then will be performing her annual performance review and discussing it with her within the next month. Jin Tan and Brenda have just completed a sales call together. Although Brenda did not get the sale, she thought she did a good job and thinks the prospect might contact her in the future about NCC copiers. Jin Tan, however, is disappointed that Brenda did not move the sales process forward. Although the prospect was not necessarily expected to buy during this presentation, Jin thought Brenda missed an opportunity to get the prospect to visit the NCC office for a copier demonstration. This would have moved the sales process forward. Jin was also thinking about the annual performance reviews next month. This is always a tense time. Jin is generally satisfied with Brenda’s performance last year and with her development as a salesperson. But, as indicated in the recent sales call, she needs to improve her skills in gaining commitment. Brenda could also be more productive if she became more proficient in using some of the new Sales 2.0 technologies, especially LinkedIn. These are two areas Jin will address during the annual performance review meeting with Brenda. Questions 1. Jin and Brenda have just finished the joint sales call and are meeting for a coaching session. Present an example of the dialogue that should take place during this meeting. Jin: Brenda, how do you think the call went? Brenda: I think it went well. I didn’t get the sale but I’m confident that one day I’ll earn that account’s business. Jin: Okay, but do you think it’s possible you missed an opportunity to earn that customer’s business? Brenda: Maybe, but how? Jin: By being a bit more persuasive during the call and little more assertive during the close. Brenda, I’ve been generally pleased with your performance over the last year and with your professional development. Now it’s time to continue that improvement by focusing on developing a couple of areas. First, I want you to work on your closing skills. Second, I’d like you to learn about and begin incorporating Sales 2.0 technologies, especially business social networking tools like LinkedIn. If you can improve in these two areas, your productivity will increase substantially. 2. Develop a sales training program Jin might use to improve Brenda’s skills in gaining commitment from prospects. Sales Training Program to Improve Brenda’s Skills in Gaining Commitment from Prospects: 1. Understanding the Psychology of Commitment: Objective: Provide Brenda with insights into the psychological factors that influence commitment from prospects. Activities: Conduct workshops or seminars focusing on persuasion techniques, such as reciprocity, social proof, and scarcity. Use real-life examples and case studies to illustrate how these principles can be applied in sales situations. Outcome: Brenda gains a deeper understanding of why prospects commit to a purchase and learns how to leverage psychological principles to enhance her sales pitch. 2. Effective Communication Skills: Objective: Enhance Brenda’s communication skills to build rapport and trust with prospects, ultimately leading to commitment. Activities: Role-playing exercises to practice active listening, asking probing questions, and addressing objections effectively. Provide feedback and coaching to refine Brenda’s communication style and ensure clarity and persuasiveness in her interactions. Outcome: Brenda develops stronger rapport with prospects, effectively addresses their concerns, and builds trust, leading to increased commitment in sales conversations. 3. Overcoming Objections and Closing Techniques: Objective: Equip Brenda with strategies to overcome objections and confidently close sales deals. Activities: Simulate common objections encountered in the sales process and guide Brenda in crafting persuasive responses. Introduce proven closing techniques, such as the assumptive close, alternative choice close, and urgency close, through role-plays and interactive sessions. Outcome: Brenda gains confidence in handling objections, effectively addresses prospect concerns, and employs closing techniques to secure commitments from potential customers. 4. Utilizing Sales Tools and Resources: Objective: Familiarize Brenda with sales tools and resources that can aid her in the commitment-gaining process. Activities: Provide training on utilizing CRM software to track prospect interactions, manage leads, and follow up effectively. Introduce relevant sales materials, such as product demos, testimonials, and case studies, and demonstrate how to leverage them to reinforce value propositions and facilitate commitment. Outcome: Brenda becomes proficient in utilizing sales tools and resources to support her sales efforts, leading to improved efficiency and effectiveness in gaining commitment from prospects. 5. Continuous Feedback and Coaching: Objective: Establish a feedback loop to monitor Brenda’s progress and provide ongoing coaching and support. Activities: Schedule regular one-on-one coaching sessions to review Brenda’s sales performance, provide constructive feedback, and address any challenges or areas for improvement. Encourage self-reflection and goal setting to drive continuous growth and development. Outcome: Brenda receives personalized guidance and support to refine her skills, adapt to evolving sales scenarios, and consistently improve her ability to gain commitment from prospects. By implementing this comprehensive sales training program, Jin can empower Brenda with the knowledge, skills, and confidence needed to effectively gain commitment from prospects, ultimately driving sales success and contributing to the growth of the organization. 3. Explain to Brenda how she might use LinkedIn to increase her sales productivity. LinkedIn in is a powerful business social networking tool. As your social network grows, you will be able to use it to generate and qualify leads, learn about prospects and their organizations (including identifying key decision makers), and connect with customers in ways that will increase the value of your relationships with them. 4. Jin and Brenda are getting ready to have their annual performance meeting. How should Jin conduct this meeting to motivate Brenda to increase her performance next year? Jin needs to engage her transformational leadership style and serve as a coach and mentor. She needs to let Brenda know that she is a valued employee. Jin also needs to recognize Brenda for what she’s accomplished over the past year, and lay out a roadmap for what she needs to accomplish over the next year. This includes assuring Brenda that she will receive the training and support necessary for making Brenda successful moving forward. Jin needs to encourage Brenda to participate candidly throughout the meeting. Solution Manual for SELL Thomas N. Ingram, Raymound W. (Buddy) LaForge, Ramon A. Avila, Charles H. Schwepker, Michael R. Williams, Kirby Shannahan 9780176622107