The Changing World of Sales

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CHAPTER 2

• The Changing World of Sales

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Open Floor

• Three-Minute Drill
• Break into Groups of 3-4 Students
• Discuss Question
• One Group member Reports Back to Class When
  Finished

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Open Floor

• Eric Nelson, Nike Apparel Sales Manager
• His world is changing, what should he be doing
  right now?

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Open Floor

• Five-Paragraph Essay
• Autobiography
• Next Week
• Look at Example
• Top 20 Writing Errors
• http//wic.oregonstate.edu/survivalguide/eliminati
  ng_errors.html

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Overview

• Last Time
• Chapter One
• Today
• Sample Quiz
• Chapter Two - The Changing World of Sales

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Sample Quiz

• Just Like an Actual Quiz, but it Doesnt Count
• Over Chapter Two and Questions
• Five MC Questions
• Scantron

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I always regarded the first day of practice as
the beginning of a championship season. On my
team, those who showed up in shape, ready to play
and give an all out effort, understood this
principle

• Bill Russell, Boston Celtics, NBA Hall of Fame

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The Changing World of Sales

• Sales people today must be
• Flexible
• Agile
• Learning-oriented

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Figure 2.1A Framework for Change in the Sales
Force
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Key Change Forces

• Globalization
• Intensified competition
• Inflated customer expectations
• Technological innovation

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Competing in aGlobal Economy

• The cumulative effect of globalization
• More players
• More products
• New technology
• Global markets

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Intensified Competition

• Competitive advantage
• Sustainable competitive advantage
• Real competitive advantage

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Ever-changing Customer Expectations

• Market turbulence
• The rate of change in the composition of
  customers and their preferences
• Salespeople must
• Learn new products
• Learn new sales techniques
• Learn new sales strategies
• Un-learn old that no longer viable

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Knowledge Updating Habitsof Successful
Salespeople

• Finding the right customers
• Listening to customers customers
• Cultivating resources in their own organizations
• Keeping an eye on bottom lines
• Anticipating problems
• Adopting a long-term view
• Reviewing each sales call after-the-fact

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Figure 2.2The Salesperson as a Knowledge
ManagerExpanding the Funnel of Value
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Three-Minute Drill

• You Can Select the Three Most Important Sources
  of Knowledge for a Sales Person
• What Are They?
• Why?
• Have One of Your Group Members Report Back to the
  Class

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Technological Innovation

• Technological turbulence is the rate of
  technological change in an industry
• What impact (positive and negative) has new
  emerging technologies had on salespeople?

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The Role of the Salespersonas Knowledge Manager
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Five KeyOrganizational Characteristics

• Organizational culture/climate
• Organizational structure
• Market orientation
• Leadership support
• Learning

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Organizational Culture/Climate

• Culture is the deeply rooted set of values and
  beliefs that provide norms for behavior in a
  sales organization
• Climate refers to how salespeople are managed and
  how effectively they can work with colleagues on
  day-to-day sales activities

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Organizational Structure

• Formalization
• Centralization
• Departmentalization

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Market Orientation

• Market-oriented firms focus on the continuous
  creation of superior customer value

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Leadership Support

• Leadership support is the degree of support and
  consideration a sales force receives from leaders

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Learning

• Learning involves the identification of gaps in
  knowledge, which can shed light on how planned
  and actual performance differs

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BreakResume with Salesperson Change
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Salespeople Respond To Change

• Many salespeople become complacent
• Many salespeople engage in some ineffective
  (obsolete) activities

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Sales Force Obsolescence

• Sales force obsolescence is a reduction in work
  effectiveness that occurs when salespeople fall
  behind in job-related skills and knowledge

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Symptoms ofSales Force Obsolescence

• Salespeople feel less useful in their attempts to
  educate customers about new products
• Salespeople feel customers obtain information on
  latest developments from other means
• Salespeople find that customers are likely to be
  more receptive to them if they provide custom
  design possibilities for specific applications
• Salespeople find that many customers no longer
  require them to order or to provide information

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Symptoms ofSales Force Obsolescence (contd)

• Increasingly, salespeople find that much of what
  is purchased is taking on the characteristics of
  commodities
• The cost of personal sales calls has increased
  dramatically
• Salespeople find that their perceived value has
  been reduced among many of their large customers
• Many customers claim that they are seeing more
  salespeople than ever before

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A Dual Sales Approach Knowledge and Process
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Figure 2.4 Four Areas of Learning
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Table 2.3 Behavior-Based and Outcome-BasedSales
Performance Measures
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Effectively Implementing Change

• Strategic Positioning
• The performance of different or similar sales
  activities that are carried out in different ways
• Operational Effectiveness
• Performing similar activities better than
  competitors can perform them
• Implementation

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Sales Team Approaches
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A Growing Relianceon Sales Teams

• Sales teams are positioned to
• Detect changes in the business environment
• Gain knowledge about customers
• Improve team members collective understanding of
  various customer situations
• Analyze results of past actions

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The Key To Selling In A Rapidly Changing Business
Environment

• Agility Selling
• An agile sales force is
• One that is quick to see opportunities
• Shrewd in developing short-cycle strategies
• Able to meet customers' individual needs
• Capable, flexible and fast at learning and
  unlearning
• As innovative as possible

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Street Smarts

• Contextual Intelligence
• Adaptation
• Environment selection
• Environmental shaping
• Street-smarts combined with agility selling can
  lead to improvements in sales performance

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The Four Os of Agility Selling
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Discussion Questions

• Describe Five Organizational Characteristics that
  Affect How Salespeople React to ChangeGive an
  Example of How Each Can Help Them Manage Change
• How Does a Sales Organizations Market
  Orientation Relate to CRM, and the Development of
  Long-Term Relationships with Customers?

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Discussion Questions

• Salespeople Creating Value PropositionsHow Does
  Moving Through the Funnel to the Place Where
  Knowledge becomes the Product Change the Way in
  Which Slaespeople Create Value Propositions?
• Describe How Contextual Intelligence Contributes
  to Salesperson Agility?

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Discussion Questions

• Relate the Four Os of Agility to
• Developing Competitive Advantage
• Maintaining Competitive Advantage
• Developing Long-Term Customer Relationships
• Adopting a CRM Sales Model

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Knowledge Building Case

• Small Group Discussion of Knowledge Building
  case
• Report back to Class

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Knowledge Building Case

• Thaldorfs Ability to Cope with Change
• Did He Handle Obsolescence Issue Effectively?
• Did He Employ Obsolete Sales Techniques?
• Thaldorf LearningCustomer Orientation, Insight,
  Customer Interface, Customer Innovation

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Knowledge Building Case

• When Selling Innovative Products, What Must a
  Salesperson do to Educate Customers?
• Did Thaldorf Do a Good Job in Providing Useful
  Educational Materials to Lohmann University
  Hospital?

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Review - Preview

• Today
• Finish Chapter One
• Chapter Two
• Three-minute drill
• Thursday
• Chapter Three

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Assignments

• Read Selling Ethically
• Questions 1, 3, 5, 8, 9
• Role-Playing (P. 92)
• Knowledge-Building Questions 1, 3, 4

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Knowledge Building Case

• Mediquip Strengths and Weaknesses?
• Does Thaldorf Make Good Use of Mediquip
  Strengths?
• Does Thaldorf Do Anything to Overcome Mediquip
  Weaknesses?