Marketing Vs. Sales

 Articles, Marketing, Selling, Selling More  Add Comments »
Aug 122011
 

Most people have a feel for the difference between sales and marketing and the demarcation points, but defining them has proven more difficult.

Here are the definitions of marketing according to the Oxford English Dictionary:

Marketing: The action of buying or selling, esp. in a market; an instance of this.
Selling: To give up or hand over (something) to another person for money (or something that is reckoned as money).

Marketing is the set of activities that turns a goods or service from an abstract concept into something desirable for the user. Marketing folk are trained to make a connection between goods or service to consumption factors a.k.a promotion.

Marketing is the support and engine for sales. All advertising, collateral, promotions or programs are aimed at creating the awareness, information and encouragements that a customer needs to make a sale happen. This tool arms the sales team to make the correct impression and create alignment between the buyer and the seller.

Marketing needs to ascertain what the company is producing is what is needed and the correct information is available to support the sale. The sales group must leverage that to influence the customer to make a favourable decision and exchange the company’s expertise into money.

Both groups, which are simply different points on the same spectrum, are tasked with explaining to the customer why the exchange of goods or services between the provider and buyer is beneficial to the latter. It is marketing’s job to correctly supply the arsenal of the sales team and provide support, while the sales group is tasked with taking correct advantage and applying and leveraging the marketing program to the fullest. It is critical that the teams support one another and provided two-way feedback.

Is it “all in the pitch”?

 Articles, Marketing, Prospecting, Selling  1 Comment »
Aug 112011
 

Now I do not condone using sex as a sales technique, but a new CBC report on Toronto panhandlers is a good reminder of how important it is to cut through the jammed clutter of modern life to get the message through.
At least two enterprising Toronto-based panhandlers are using key words like ‘sex’ to grab the attention of passers-by to solicit money. Judging by the reported results it is working. They are holding up signs, which are, er, an upgrade over the standard ‘hungry, please help’ verbiage usually used!

As the article points out, while having meat on the bone i.e. a good product or service is key, grabbing the attention of prospects requires something that stands out from the masses (competitors) and a dose of humour or flash does not hurt.

http://www.cbc.ca/news/canada/story/2011/07/25/panhandlers-pitches.html

Do you have the required flash and pizzazz and do you stand out?

Do Not Forget The Emotion

 Articles, Marketing, Negotiating, Prospecting, Selling, Selling More  Add Comments »
Aug 032011
 

I don’t mean to understate the value of facts, data or rationality, but when selling never forget the power of emotions.
As much as we like to think we make good choices based on regimented and thought-out reasons, emotions are a big factor in our buying decisions and often a bigger criterion than most of recognize or understand.

Think about it. We all make decisions based on how we feel about something. After all, if emotions were not a major buying factor wouldn’t everyone buy the same car with the highest price-to-feature rating based on the class of vehicle one required? Of course, we consider a car’s features, horse power and fuel efficiency, but when all is said and done, we must like the look and image of the car. Wouldn’t the market for CD cover designs diminish rapidly? After all, we would be buying the disc based on its content and its style. Many managers know, but may not openly admit, that they hired a candidate based on a ‘gut feeling.’ There are numerous examples.

What this means is we need to understand the power of emotions when selling. It follows that we need to consider the customer’s feelings. The buyer must be comfortable. They must trust. They must have that ‘gut feeling.’ This is why advanced selling is often called ‘relationship-based selling.’ This is why they say ‘you have to sell yourself.’ Give people a reason to buy from you. Give yourself some emotional appeal. Make yourself part of a story… at least until human beings evolve to more rational beings!
This is not to suggest creating and demonstrating value is meaningless. It is meant to address the need for a balanced (using that word in this context seems odd to me) approach.

Your manager or company will ultimately not care if you made the sale because the prospect felt sorry for you, laughed at your joke or counted the most number of benefits in your service versus something else.

Disqualifying Customers, Prospects Or Opportunities

 Articles, Prospecting, Selling, Uncategorized  Add Comments »
Jul 282011
 

 

One of the preferred traits for a salesperson is the acumen to disqualify a lead or a prospect when either one is either not a good fit or the circumstances are not favourable for a successful transaction.

It takes knowledge and mental courage as salespeople, and managers and companies that hire them, to be able to say ‘no’ to a potential sale. Better salespersons know how to optimize their time and resources and drive to better results.

Never assume a customer does not have the money and the budget. A person with a torn shirt and messy shoes might actually have more money left to buy a high-end television set than the suit and tie guy (who is living off his maxed credit card). However, establishing budgetary needs upfront is important.

Does the contact person at the prospect not have the authority to sign a cheque and is not part of the approval hierarchy? Time well wasted.

Timing is important. Occasionally, taking ‘no’ for an answer allows a ‘yes’ to follow later. It is never a good idea to destroy any chance of a rapport with the customer.

Salespeople need to know their products well enough to do it justice. In the era of information availability and dissemination salespersons who do not know their products or service are at a disadvantage to the customer who has read up on it on the net. Beyond a certain level, the salesperson needs access to a ‘technical’ or ‘more in-depth’ consultant or technician or expert.

What is required is mental discipline as well as a real understanding of one’s capabilities.

Whose Sales Process?

 Articles, Selling  Add Comments »
Jul 062011
 

Came across a sales article on a site called A Sales Guy. Old–school name, but interesting post about sales processes. Nearly everyone agrees that, while different methodologies apply at different times, most successful sales follow a process that give it order, discipline and a superior chance for success.

The Buyer’s Sales Process Adapting One’s Sales Process

Sales managers, coaches and departments require adherence to a sales process (SPIN, Infomentis, CPSA, whatever) both for improving chances for success and for internal tracking purposes. When everyone follows the same methodology, after all, it becomes much easier to compare salespersons, sales engagements and determine and forecast numbers.
Defining the sales process has also been inward. As the article recaps the process is typically a variation of the following:

Pre-sales>>Qualification>>Presentation>>Trial Close>>Objection Removal>>Close>>Support

While this process, and its offsprings are valid, neat and tidy, they adhere to the seller’s practice; not the buyer’s. Jim Keenan (the author of this post) suggests we become more conscious of our buyers’ sales processes and needs and aligning the sales processes with the buyer’s buying map. It might require much modification and flexibility. A sales process should enlighten one about the customer.

Discounting – Do Not Do It

 Articles, Management, Marketing, Negotiating, Prospecting, Selling  Add Comments »
Jun 032011
 

One of the worst behaviours in the realm of sales and sales management is discounting. The corporate euphemism is usually something along the lines of ‘providing the customer an incentive to buy.’
Hold on a second! Why does a customer need another incentive to buy if the product has benefits and offers superior advantages over the competition?
Discounting – or positively responding to such requests from potential customers – is self-defeating and bad practice. It is a negative not just for the seller either. It is also a negative for the buyer. How so?
First, giving away margin and price points upfront is rarely, if ever, a temporary situation. The new lower price is now the permanent price. A customer that has successfully obtained a lower price will demand the same going forward. Not only are customers prone to protecting their gains, but also the discounted price is perceived as the fair value price for the product or service. Any salesperson that agrees to a lower price should not be under any illusion that the loss will be made up later. There is no such thing as an introductory price anymore.
Moreover, prices are set according to costs, business plans and market conditions. Losing the required profit margin might imply incurring a loss and jeopardizing the seller’s longevity or security. Buying a customer’s business is the wrong notion.

Why is the lower price ultimately bad for the customer? It does several things. A buyer and a seller should maintain a mutually beneficial synergistic relationship. When one is threatened, the other should be concerned. The seller needs to provide after-sales support and, in most cases, enhancements, maintenance and upgrades. Furthermore, discounting tells the buyer that the initial price was dishonest and false. Not a good start to a relationship. Pricing integrity takes honesty and courage in the short-term, but is a good idea for the long-term.

    1. Maintain a healthy pipeline
    2. Allow your fair pricing policy to become your reputation
    3. Sell according to identified benefits and Return On Investment and
    4. Remember that a customer should not be a loss leader.

      Cold Calling Or Cold Mailing

       Articles, Marketing, Prospecting, Selling  Add Comments »
      Apr 032011
       

      The rule of thumb in recent years for the success rate of cold calling prospects or following up on mailers by telephone has been a five percent achievement. In other words, typically in these situations, 5% of prospects allow the seller to advance further in the sales process.

      That ratio is now likely obsolete and too high. Nowadays, there is a whole cottage industry of experts and methodologies on how to prospect, or not to, but the fact remains that responses are less and less likely. It could be that the positive responses are at 0.5%. In other words, for every 100 prospects that receive an unsolicited call or brochure less than 1 moves forward and shows interest.

      Why? What can a marketer do?

      Knowledge is power. Prospectors need relevant information with which to target their customers. That means, one must call into a company in possession of much more information than before. One cannot cold call prospects without having up-to-date information. In fact, that would not even be cold calling.

      The ‘need to know’ goes beyond having a name and having perused a website nowadays. Know the name, the history, the events, the news and the website’s information. Have you studied the prospects’ social media profile? Have they tweeted something? Is your pitch aligned with their needs and is it targeted and customized?
      No more mass mailers. The mailing list requires customization and personalization for each an every prospect.
      Every potential client is unique and the marketer needs to incorporate that in the approach or risk failure.

      Read this again: http://www.alighaemi.com/wp/?p=508

      Stop Using The Word “Just”

       Articles, Prospecting, Selling  Add Comments »
      Mar 202011
       

      The word “just” creeps into many sales conversations. It should not!

      Whether in the field, or more likely on the telephone, too many sales conversations include sentences like:

      • Just one more thing
      • I just wanted to reach you to say…
      • I just need a minute…

      The use of the word ‘just’ is a defensive mechanism by salespeople to imply understanding on their part of the customer’s time and lack of desire and designed to send a message that the customer’s commitment (at this stage) is minimal.

      Ironically, the word implies triviality, a junior status and assigns irrelevance to the topic, product/service and the person who utters it. Why would one denigrate one’s own importance, message or potential benefits of the goods or service?

      On the next sales conversation just banish the word ‘just.’

      Get To Know Your Partners Or Customers Better Using Technology And Social Media

       Articles, Selling, Selling More, Uncategorized  Add Comments »
      Feb 022011
       
      • Are you subscribed to your customer and resellers blogs or tweets? Do you have a Twitter account? Share your partners public thoughts with your own followers. Ask your customers and partners about their posts. Can there be a bigger compliment?
      • Do you monitor their news and websites to see what they are posting, what their news is and what they are most proud of?
      • How could you interact better with them using Social Media?
      • Here is a thought grenade: how about inviting all, a segment of, your partners, resllers and customers to an online seminar where you facilitate a public discussion on profitable strategies and what is happening in the marketplace?

      Ideal Qualities For Salespersons… And What Hiring Managers Need To Know

       Articles, Management, Selling, Uncategorized  2 Comments »
      Jun 162010
       

      A recent study by Spearhead Training in the United Kingdom offers some valuable insight into sales success. The information in the study should wrap some hard numbers around hiring practices and the mould of the successful salesperson. The conclusions were reached with the help of a study of 380 salespeople in the consumer goods industry.

      Here is the gist of the article: hard work and effort trumps talent in sales. This has implications for salespeople, managers and hiring managers. Very interestingly, this study aims to answer the oft-asked question on how to hire for and increase the chances of success in sales. What is better predictor of success in sales? Is it talent? Is it experience or is there an optimal combination of these adjectives?

      This study looked at five factors, namely competitiveness, self-motivation, conflicts in one’s career and objectives, conflict in roles i.e. negative experiences on the job such as negative prospects, and the amount of work put into the job.

      The study has several eye-opening conclusions. Self-motivated and competitive salespersons have the least number of problems. People who are naturally competitive have the least problem with motivation. There is a direct correlation between effort and success. This is followed secondly by competitiveness.

      The conclusion is that hiring managers should sniff for competitiveness above all else. The number one type to look for in a salesperson, according to this study, is a fighter. A fighter is someone who strives hard and is as competitive as possible.

      The second conclusion is to place processes in place. The study insists that people who want to and indeed do put in the effort to do the right things will succeed. One example given is setting a minimum number of mandated customer visits every month (for field salespeople) for instance.

      http://www.spearhead-training.co.uk

       Older Entries  Newer Entries