Sales Management

I. Market Segmentation & Value Proposition

Although these activities are more associated with the marketing functions for a business, they are critical steps in laying the foundation for the company’s sales of its products and or services. Both areas should be reviewed in light of who the target market (primary and secondary) is, as well as how the company will present its value to these market segments. Included within this review should be the differences between selling in a B2C versus a B2B environment.

II. Approach to Market

This pertains specifically to the sales activities of the company. Once the target markets are identified and agreed upon by the company’s management, the value propositions validated, and recognizing the environment that is being sold into; a decision has to be made how to best take the products and services to market through the appropriate channels. Options should be explored including:

• Inside sales
• Direct sales
• Retail (Merchandising)
• Alternate Channels (partners)

III. Customer Acquisition

After laying the groundwork to prepare for taking the company’s products and or services to market, the process of acquiring new customers is addressed. This focuses in on the key steps of most selling cycles.

1. Prospecting
   Define and explore various types of prospect identification, which will vary based upon the outcome of points I & II.
2. Qualifying
   Because the company established a value proposition, it now has the ability to efficiently qualify a potential customer. Doing so means that the company can increase productivity, focus in on the ‘right’ customers who are willing to do business with them, and where necessary make appropriate concessions to win the business.
3. Probing,
   or the use of open and closed questions should be covered at a high level to support the qualification process. The objective is to understand the needs and wants of the customer/prospect, and appropriately fulfill those desires with deliverables from the company.
4. Proposing
   Not all companies will need to conduct a formal proposal process to acquire a new customer, however for many B2B operations, it is necessary and the skills involved should be discussed. In all situations, even B2C, proper professionalism in the delivery of the company’s value message should be adopted; and this would be covered within this segment. In essence, this segment should focus on ‘earning’ the right to do business with the customer.
5. Closing
   Nothing happens until somebody sells something! Proper techniques for asking for the business – understanding buying signs. When does ‘No!’ really mean ‘Maybe!’ How to review the benefits to the customer and deliver upon their expectations.
   Types of instruments (i.e. agreements) should be mentioned with the purpose of handling objections to any terms and or conditions of the sale.

IV. Keeping the Customer

If the nature of the business is to obtain repeat sales, consideration needs to be given to conducting follow up on the customer; or providing a level of customer service – with intent of secure follow on sales from existing customers. If the nature of the business is to utilize current or past customers as references or referrals, developing a system of ‘protecting’ the company’s assets (customers) should be understood. Objective of this section should be to emphasize the importance having a proactive customer service strategy and its significance on the bottom line.

V. Cost of Sales

Selling is an investment not an expense! If the company will deploy employees or independent agents (alternate channels of distribution) to conduct its sales efforts, consideration to a fair and equitably compensation structure is a key success variable. Likewise, overpaying can affect the company’s profitability and ability to remain in operations. This section should highlight some industry statistics, as well as comparisons between channels along with risks and benefits.

-David Klotz
Technical Innovation Board Member

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