Drivers of Chain in Selling in Sales Management

The application of technology to the activities in the life cycle of an order from
customer inquiry to order fulfillment is called selling chain management. The ebusiness applications that automate these activities are called selling chain
management applications.
Factors like increasing demand for customers self-service, the rising costs of pre-sales
support , the increasing cost of order errors, changing sales channels, increasing
products complexity, and the rise of mergers and acquisitions are driving the growth of
selling chain management applications. Advances in technology have enabled
continuous improvements in selling chain management applications.
The order acquisition process in the selling chain includes the following steps:
Identifying prospective customers, understanding their needs, exploring possible
solutions, translating them into production, price and delivery terms, presenting the
proposal to customers, revising it if needed, and preparing an order.
The selling chain application infrastructure includes electronic catalogue, market
encyclopedias, integrated selling systems, channel management , configuration,
dynamic pricing, order management, management solutions. Companies like Dell,
Siebel and Cisco have successfully adopted selling chain applications to improve the
purchasing experience of their customers.

Selling as a career
If youre just starting out on your career path, youre probably looking at the options that
are open to you. One of the ones thatll crop up fairly often is sales, in whichever field
you look. Sales is a profession that is vital to the functioning of the economy: if nobody
buys, the economy would collapse. As opposed to telemarketing or other routine jobs,
sales wont be automated away any time soon. And its a job where you can expect to
earn well. Let me help your decision-making process by listing some advantages and
disadvantages of making sales your career choice.

Disadvantages
1) Image: Sales suffers from somewhat of an image problem, and most people will be
able to tell you about the disadvantages, in their mind, of working in sales. At least,
they think those are the disadvantages, and they seem to be gleaned from movies or
their experience with telemarketers. There is, of course, a kernel of truth in all of
them, and when you work in sales you often have to confront this issue.
The salespeople Ive met throughout my career generally dont fit the profile you see
in the movies, though, as usual, there are exceptions. They tend to be thoughtful
people who are good communicators with an interest in achieving. This cultural
image, sadly, tarnishes all salespeople, not only those exceptions.
2) Stress: Sales, if done right, is a stressful endeavor. Youll be expected to put very
much in, though you can also expect the rewards to be worthwhile. Youll have
plenty of pressure from all sides; your boss, your colleagues, and your prospects will
all want something from you at all times. Add to this the targets, the unpredictability
of your prospects or clients, holiday seasons, and the market, and you have a great
recipe for quite a stressful job.
3) Independence: If youre looking for a high degree of independence, youve definitely
found it here. In sales, youre functionally running your own small business, and are
as responsible as an entrepreneur is. This is liberating for some, but can be
extremely difficult for others.Not only that, youre also responsible for your
relationships, your revenue, and most other aspects of your territory (marketing is
usually separate, as is support). If youre really putting the effort in, work is never
done. Theres paperwork, planning, and organizing to do, all of which is your
responsibility.
4) Time: From the prior point you can see a salespersons job is never done. You will
find your tasks increase in volume as you go along, and theres always something
more to do. Its not uncommon to find high performers working till late, then going
home and working some more. Its an all-consuming job precisely because the
responsibility is very high and it rests upon your shoulders.
5) Pay: Believe it or not, this can be one of the main disadvantages of sales while at
the same time being an advantage. Sales pay is variable and is usually commissionbased. This means you only get paid as well as you perform. If you have a good
month, thats great be reflected in your next paycheck.
The bad part of it is that it may not even, but if youre having a not-so-good or a
downright miserable one, you can expect it to be youre doing.

Advantages
1.

The fun factor: This is a huge one for me. How many of you can honestly say you
have fun at work? Salespeople usually can. The environment is tense but very vibrant
and diverse. Theres nothing like the thrill of a deal thats close to closing, or the deep
satisfaction of bringing in a huge one. Its a kick, and its a good one at that.
Sales is a constant challenge, and theres nothing like meeting a challenge.
Furthermore, as a salesperson, youre an expert, and your job is to help people. I can
think of no greater joy than doing that every day.

2.

Recognition: Since youre solely responsible for a patch, and are essentially an
entrepreneur, your successes are truly yours. This is a great feeling in and of itself, and
is heightened by your companys recognition of your hard work. Youre fully accountable
for your patch, and if youre doing a good job of it, you will be recognized, whether its
with rewards, promotions, or public appreciation. Its a nice feeling, and one that
salespeople strive for.

3.

Freedom: Sales is ultimately about what you bring to the table. This doesnt only
mean your skills and qualifications it means your approach. Youre free to do what you
want in your patch; you have a great freedom to experiment and do things your way.
In addition, if you show youre professional, responsible, and perform well, youll be
given an even greater degree of freedom. It isnt uncommon for salespeople to take an
hour or two to run errands, or leave early to pick up your kids. As long as youre doing
well, you will have little trouble with this in most workplaces (there are, of course,
exceptions).

4.

Reward: Most salespeople (surprisingly) arent in it for the money. Somewhat

unsurprisingly, though, they dont complain when it does come in. Sales is very
entrepreneurial, and one of the aspects of that is that you get out what you put in. If you
work smart and you work hard, you will be amply rewarded.

5.

Job Security: Sales is one of the more secure jobs in any company, and will
continue to be so for some time. The world is heading towards automation of many
things, but human relationships isnt on that list yet, and probably wont be for a few
years yet.

Selling Process
The selling process is essentially the series of steps followed by a salesperson while
selling a product. It includes the following steps:

1. Product Knowledge
This step is fairly straight forward, but it is also the great undoing of many a technical expert turned
sales person. When one is extremely well versed in a particular product especially a technical one, it
is easy to get caught up in a monologue of all the great features it provides.
The technical expert turned sales person is so eager to explain how the product works or why its
unique that the benefits to the customer are left out of the discussion. Never assume that a prospect
will easily link a feature to a benefit. That relationship must be stated clearly (something done in the
presentation step 4, after the needs assessment step 5). The acquiring of product knowledge for a
technician therefore, is less about the features of the product itself, and more about how the
customer will benefit from those features. When discussing product, the technicians mantra should
be; So what? Consider those two words to be what the prospect thinks every time a feature is
mentioned, and re-learn your product from that perspective.
2. Prospecting
Prospecting, just as the word implies, is about searching for new customers. Like product
knowledge, this step may seem fairly straight forward but upon closer examination it becomes more
complex. The key to prospecting effectively is knowing where to dig and what to look for. Its also
important to distinguish between a lead, a prospect, and a qualified prospect. The most important
element in this step is to create a profile of existing customers. This may have been done at your
company, but have approach tactics (step3) been tailored to match each profile. For instance, you
may have identified the following major market segments: State Governments, County
Governments, Consulting Firms, Federal Agencies, Utilities, Universities, but have you fully profiled
each of these in order to adjust marketing tactics appropriately? A direct mail, seminar invitation
might work well to generate State Government leads, but will it be effective in developing Consulting
Firm leads? For each market segment do you really know what the ideal customer looks like? These
questions should be answered fully in the Tactics portion of a marketing plan.

In the broadest sense, prospecting is an ongoing process that everyone in the company (particularly
the sales force) should be involved in. This simply means everyone should have their prospecting
radar up when they are out and about in the world. Very often, a great lead turned customer was
first discovered after being heard or seen in the news at a party, or event, etc.

3. The Approach
This is where the rubber meets the road in the sales process. For our present purposes
lets consider the approach in the context of a sales call rather than lead generation (i.e.
the difference between a mass mailing and a telephone call). This is the step where you
begin to build a relationship and the intelligence gathering continues (it started with
prospecting). A good approach is crucial to sales success because it will either identify
you as a bothersome salesperson and cause a prospects guard to go up, or it will
identify you as an obliging salesperson with something of value to offer. (There is
probably a middle road too, but you get the idea.).

4. The Needs Assessment

This is arguably the most important step of the sales process because it allows you to
determine how you can truly be of service. To be a highly effective salesperson, that is
to sell to the prospects needs, you first have to understand what those needs are. This
means you must think in terms of solving a prospects problem. The only way to do that
is by asking lots of questions. Does a health practitioner prescribe remedies before a
thorough exam? Asking good questions will not only help you determine what will best
suit the prospects needs, but it builds confidence, trust, and will very often help the
prospect consider issues they may never have thought of. This last point is powerful
because it provides an opportunity to showcase features, which the prospects answers
led you to. What questions would you ask to illustrate how your product is
different/better than a competitors. Although intelligence gathering occurs throughout
the sales process, it is at step four where it happens in earnest. What other information
would be important to gather at this stage? (hint: whos who, referrals).

5. The Presentation
Remember the discussion in step one, focus on benefits rather than features? If you
consider your product/service in terms of how it benefits the customer, your presentation
will be a focused and relevant dialogue rather than a self aggrandizing monologue.
Nothing is worse than a sales presentation which proceeds from the sellers perspective.
This is why the needs assessment is so important and why it will ideally flow in and out
of this step. A good needs assessment allows you to tailor your presentation to your
audience, and keep it interactive.

6. The Close
Eighty percent of sales are lost because a salesperson fails to close. Closing is about advancing the
sales process to ultimately get an order. What you are trying to sell at each stage may be different.
For example, a close early in the sales process may be to get an appointment to discuss your
product/service, in that case you are selling an appointment not a widget. In a later stage you might
need to meet with a committee, in that case what you are selling is a meeting. Seeing the sale
process in this light takes a little pressure off of each encounter and makes things a bit more
manageable. But dont be lulled into complacency, you must ultimately ask for the order and no
sales conversation should ever end without an agreement to some next step. Do not be satisfied
with well get back to you, where is the agreement in that? What could you say in response to such
a remark in order to advance the sale?
In large part, closing is about discovering obstacles. Have you heard these before: Ill need to think
about it., Its too expensive., Let me run it buy some other people. Sounds good but Ive already
got one. What could you say to overcome these objections?
There are lots of ways to close, indeed closing a sale has become a science unto itself. Books have
been written on this topic alone. But there is one elemental truth if you dont ask you dont get. Just
for fun, following is a sampling of a few closing techniques from among the many:
The Ask For It Close. What do we need to do to get this model into your organization?
The If-Then Close. If I could demonstrate how an XYZ model provides you with, (things you
know are important based on the prospect needs assessment) then would you be willing to demo,
rent, buy, switch, etc.
The Process Of Elimination Close. So you like the model, you have use for it, its not too

expensive!
The Lost Puppy Close. I guess I didnt do my job very well.

7. Follow-up
Good follow up will double your closing ratio. When a sales person makes contact with a prospect a
relationship has been built, and follow up is how it is nurtured. Staying at the forefront of a prospects
mind requires persistence and should not be confused with being bothersome. This is why its
important to get agreement on some next step each time there is contact. Follow up therefore should
never end. The pace may slow but it will never end. When a sale is made, then a new type of follow
up begins. Follow up conversations are best handled by the salesperson who started the
relationship. Who else can better gauge a prospects willingness to buy, or pick up where we last
left off. This means that detailed notes must be kept on each prospect with particular emphasis on
their state of mind. It is unwise and ineffective to keep track of this information anywhere other than
a centralized database.

Organization buying process involves the decision-making by which formal organizations

establish the need for purchased products and services and identify, evaluate, and choose
among alternative brands and suppliers. Organizational buying process has certain parameters
which are discussed as follows
EXPECTATIONS
A. Organizational consumer expectations refer to the perceived potential of alternative
suppliers and brand to satisfy buying objectives.
B. Expectations are based on the backgrounds of those participating in the buying process,
the information received, perceptions, and satisfaction with past purchases.
BUYING PROCESS
A. The organizational buying process is similar to the final consumer buying process.
B. The organizational buying process may involve autonomous or joint decision making.
C. Under competitive bidding, the potential seller specifies all terms and specifications in writing.
With open bidding, competitors see bids. With closed bidding, contract terms are kept secret
and sellers are asked to present their best bids first.
CONFLICT RESOLUTION
Conflict resolution is sometimes necessary in joint decision making due to the diverse
backgrounds and perspectives of purchasing agents, engineers, and users.
B. Conflicts can be settled in the following ways:

1. Problem solving occurs when it is decided to acquire more information before making a
decision. This is the most effective method.
2. With persuasion, members of the purchasing team present reasons why a particular choice
should be made. Often, the most persuasive speaker wins.
SITUATIONAL FACTORS
A. Situational factors (such as price controls, recession, or foreign trade; internal strikes,
walkouts, machine breakdowns, and other production-related events; organizational changes
such as merger or acquisition; and ad hoc changes in the marketplace, such as promotional
efforts, new-product introduction, price changes, and so on) can intervene between the
organization buying process and the actual selection of a supplier or brand.
PURCHASE AND FEEDBACK
A. After the decision process is completed and situational factors are taken into consideration,
the purchase is made (or the process terminated).
B. Feedback is stored for future use.
C. Regular service and follow-up calls are essential.

A buying center brings together "all those members of an organization who become
involved in the buying process for a particular product or service". [1] Buying centers are
also sometimes known as 'decision-making units' (DMUs). [2] The concept of a buying
centre (as a focus of business-to-business marketing, and as a core fundamental in
creating customer value and influencer in organisational efficiency and effectiveness)
formalises the understanding of purchasing decision-making in complex environments.

New-task buying
New-task buying is deemed the most complex buying situation because it is a first-time
purchase of a major product. Several people are involved in the decision because there can be
high amounts of money and risk. Much information is gathered and evaluations of alternatives
are explored. It is also complex as the decision makers have little experience with the product
before the purchase can be made. The buying centre has the challenge of finding out all the
organisations needs and communicating the products ability of meeting the needs.

Straight rebuy
This is a routine, low involvement purchase. Minimal information is needed and consideration of
alternatives is not needed. This type of purchase is handled by the purchase department and is
usually purchased from a list of approved suppliers. Examples of straight rebuy are repeat
purchases of office supplies, and small components.

Modified rebuy
This type of purchase is similar to a straight rebuy with more information and people involved.
The buyer may want to reconsider suppliers, prices, terms, or modify product specifications.

Systems buying
This type of buying is purchasing a packaged solution to a problem from a single supplier. This
originates from governments buying packages such a major communications systems. Instead
of buying separate components, buyers look for suppliers who supply the components and
assemble the package for them.