Chapter 2 Sales

Chapter 2
Building relation ship through strategic

planning
Corporate planning
• Corporate planning is total system of planning which
involves the determination of the objective for the
company as a whole and for the each department of it.
• Formulation of strategies of the attainment of these
objectives (all this being done against the background
of SWOT analysis.
• Conversion of strategies into tactical plans for
operational plans.
• Implementation of tactical plans and review of the
progress of tactical plans against the corporate
planning objective
Cont.…
• The act of creating along term plan to improve
business.
• The process of deciding long term goal and
objective within the ambit of organization’s
strength and weakness.
• Is a process that used by business to map out
course of action to grow , increase profits , gain
exposure, or strengthen brand identity.
• Is a tool that successful business use to leverage
their resource more wisely than their competitors.
What are the functions of corporate planning
• Challenges : there is no plan that can completely eliminate risk, but one of
the function of corporate planning is to reduce uncertainty in the
corporate process.
• Alignment : A company operates under a mission statement and a set of
policies that are intended to create a uniform company approach.
• This helps employees, customers and vendors to understand how a
company will react in almost any given situation.
• Delegation :A comprehensive corporate Plan, includes detailed
information on how the various responsibilities in the plan will be
delegated.
• In order to successfully implement a plan, there needs to be title as to who
as to who will be taking care of the various aspects and how those
elements will come together.
• Progress: the financial function of any corporate plan is to measure the
company progress versus goals.
• Each year a company creates a set of financial goals for each department
and for company in general.
Sale force and marketing event
• Here the seller, being physically close to buyers, penetrates their domain to
learn about their needs, desires, and fears and then design and supplies the
product with those considerations in mind.
• The product is no longer merely an item but a whole bundle of values that
satisfy buyers -- an augmented product.
salespeople as order takers
• This work fine only on industries where buying environment is simple and
the solution you are offering is also simple.
• or this also works where your product is marketed extensively and the
buyer is pre-qualified, pre-motivated and pre-decided to buy.
• All that buyer asking is in this case is serve me because he is very clear
what he want.
Sales people as explainers
• Those are industries where Buyer is telling show me and I will
decide.
• Buying environment is simple but the solution type is complex.
• Mostly the buyer has done research but not clear what is best for
him.
• He want salespeople to explain him/her the options.
• It is critical for sales people here to understand what is the buyer
want and help him.
Sales person as navigator
• Here the buyer wants more of guidance from sale person.
• The product or solution looks simple but the buyer doesn’t see the
real benefit
• The customer gets to desired destination or results faster
• The selling company gets paid not only for its product or
service but for the added value its salesperson provides by
guiding the customers through the implementation process ,
and for demonstrable , clearly measured results.
• And the salesperson benefits by deepening the relation ship
with the customer and becoming an essential partner on
customers journey.
Sales person as consultant : this is a most complex
stage where buying environment , as well as the solution type , is
very complex.
The switching cost can be extremely high and involves multiple
stakeholders for approval.
• The sales person must be in a position to
enlighten the customers by making them aware
of the problem and how their solution helps
address and involves multiple stakeholders
• The sales person should create that aha moment
in the buyers.
Steps in selling process
• Pre – approach / prospecting (identifying and
preparing for potential customers.
• The purpose of prospecting is to identify and be
prepared for potential customers through
referrals, telephone contacts or response to
advertising.
• Approach: greet the customer face to face to
begin conservation, to establish a relationship
with customer or to set the mood for the other
steps of the sale.
• Determine Needs: learn what the customer is
looking for ……
• Observe – nonverbal communication.
• Listen –make eye contact , don’t interrupt.
• Question -general questions (5ws) and open-
ended questions.
• Present product: educate the customer about the products
feature and benefits.
• Display/ Handle the product
• Demonstrate it or use sales aids.
• Involve the customer
• Overcome Objections: learn why the customer is reluctant to
buy.
• Provide information to remove uncertainty.
• Helps the customer make satisfying buying decision.
How?
• Listen carefully
• Acknowledge objections
• Restate objections
• Answer the objection
• Close the sale : Get customers positive agreement to
buy.
Tips for closing the sale
• Narrow down choices
• Use ownership words like
• “You” and “your”
• Don’t talk too much or rush
Look for buying signals, Things customers do/ say to
indicate a readiness to buy , facial expressions, body
languages and comments.
• Building relationship: create a means of maintaining contact
with the customer after the sale.
• Follow – up (when needed)
• Keep a client file.
• Relationship marketing is a facet of customer relationship
management (CRM) that focuses on customer loyalty and
long-term customer engagement rather than shorter-term goals
like customer acquisition and individual sales.
• The goal of relationship marketing (or customer relationship
marketing) is to create strong, even emotional, customer
connections to a brand that can lead to ongoing business,
free word-of-mouth promotion and information from
customers that can generate leads.
Relationship marketing Vs transactional marketing
• Transactional Marketing is amongst the different marketing strategies
that emphasize maximizing the sales volume and revenue of the firm. On
the other hand, Relationship Marketing is concerned with building long
term relationships with customers.
BASIS FOR COMPARISON TRANSACTIONAL MARKETING RELATIONSHIP MARKETING
Meaning Transactional Marketing is a Relationship Marketing is a

marketing strategy used by the form of marketing whose
firms to target customers so as primary aim is to retain and
to make one-off sale satisfy customers, by providing
transactions. value to customers.
Time Orientation Short term Long term

Customer Contact Low Frequent
Stresses on Gaining new customers Customer Retention
Objective To make the sale or get the To become the sole or

order. preferred supplier in the
market.
Centers on Undertaking transaction Building trust
Nature of Relationship Short and Intermittent Long and Strong
Customer Commitment Low High

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Chapter 2 Sales

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Chapter 2

Building relation ship through strategic

Meaning Transactional Marketing is a Relationship Marketing is a

Time Orientation Short term Long term

Objective To make the sale or get the To become the sole or

Nature of Relationship Short and Intermittent Long and Strong

Customer Commitment Low High

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