SALES TRAINING-final.ppt
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This document provides an overview of sales training concepts including the sales and buying cycles, the four stages of a sales call (SPIN model), and sales training methods. The SPIN model involves using Situation, Problem, Implication, and Need-Payoff questions to move a prospect from unknown problems to explicit needs. Obtaining commitment is the final stage and requires resolving concerns, summarizing benefits, and proposing a commitment. Training methods include cognitive, behavioral, on-the-job, and off-the-job approaches. Developing new skills efficiently involves practicing one skill at a time for quantity before quality in secure situations.
SALES TRAINING-final.ppt
- 2. CONTENTS 1. Introduction 2. Training 3. Development 4. Importance of Sales Training 5. Limitations 6. Training Process 7. Training Needs 8. Purpose 9. Training Methods
- 3. TRAINING DEFINITION : According to Edward B. Flippo, • Training is the act of increasing the knowledge and skill of an employee for doing a particular job. MEANING : Training is a process of learning sequence of programmed behavior. It is application of knowledge. It attempts to improve employees performance on the current job ofr prepare them for intended job.
- 4. DEVELOPMENT MEANING: Development is a broad, on going, multi-faceted set of activities to bring some one or an organization upto another threshold of performance, often to perform some job or new role in future.
- 5. 5. It focuses on the current job of a sales person. 6. Training focuses on the performance of the individual sales person. 7. A training programme solves the immediate problems of the organization . 5. The development focuses on the current as well as the future job of the sales person. 6.It stresseson the long term goal of organization. 7.Development is concerned with the long-term goal of organization.
- 6. IMPORTANCE OF SALES TRAINING OPTIMUM UTILISATION OF SALES FORCE DEVELOPMENT OF SALESFORCE DEVE LOPMENT OF SKILLS OF EMPLOYEES PRODUCTIVITY TEAM SPIRIT ORGANISATION CULTURE ORGANISATION CLIMATE HEALTHY WORK ENVIRONMENT IMPROVES RELATION REDUCES TURNOVER OF SALES PEOPLE PROFITABILITY
- 7. Limitations of Sales Force Training 1. • DIFFICULTY IN RETAINING THE TRAINED EMPLOYEE 2. • TRAINING IS A SLOW PROCESS 3. • DIFFICULTY IN ORGANIZING TRAINING PROGRAMME 4. • TIME CONSUMING 5. • SALESMANSHIP IS A MATTER OFPERSONALITY 6. • EXPENSIVE 7. • SHORTAGE OF EFFICIENT TRAINERS
- 8. TRAINING PROCESS TRAINING NEED ANALYSIS DESIGN AND IMPLEMENTATION OF TRAINING PROGRAMME EVALUATION OF A TRAINING PROGRAMME
- 9. TRAINING NEED ANALYSIS The purpose of training needs is to determine Whether there is a gap between what is required for effective performance and present level of performance of sales people. It helps to plan the budget of the company, areas where training is needed and also highlights the occasions where training might not be appropriate.
- 10. Training needs arises at three levels: 1. • ORGANISATIONAL LEVEL 2. • OPERATIONAL LEVEL 3. • INDIVIDUAL LEVEL
- 11. PURPOSE OF TRAINING EVALUATION FEEDBACK CONTROL POWER INTERVENTION RESEARCH
- 13. It is theoretical training. This approach provide the rules for how to do something, written or verbal information, demonstrate relationships among concepts etc. Various methods that come under cognitive approach are: LECTURES: • a formal verbal presentation of information. DEMONSTRATION: • a visual display of how something works or how to do something. DISCUSSION : • Provide learners with context that is supported, elaborated, explained through interactions. COMPUTER BASED TRAINING: • an alternative to classroom based training to accomplish the goal of providing training at lower cost.
- 14. B. BEHAVIORAL METHOD: These methods are more of giving practical training to the trainees. Various methods that come under cognitive approach are: BEHAVIOR MODELING BUSINESS GAMES CASE STUDIES ROLE PLAY IN THE BASKET TECHNIQUES
- 15. OTHER TWO WAYS OF CATEGORIZING TRAINING METHODS (1)ON-THE-JOB TRAINING: Under this method, a sales person is instructed by some experiencedsales supervisor. Supervisor demonstrates what he teaches. He gives oral and written explanations. sales person learns job in actual conditions rather than in artificial conditions. It is less expensive and less time consuming. they learn rules and regulations while learning the job. (2) OFF-THE-JOB TRAINING: Training is not as a part of every day activity , it is conducted by an outsider organization. It is given in artificial conditions which may just like actual conditions. Trainee can learn in short time. Trainee can give individual attention as he has no other work assigned to him. Trainees can concentrate more on learning.
- 17. S P I N
- 18. Agenda… 1. Universal Training Tips 2. The Sale Cycle & Buying Cycle 3. The 4 Stages of a Sales Call – SPIN 4. The SPIN™ Model 5. The Obtaining Commitment Stage 6. Preventing Objections 7. Developing New Skills
- 19. 1. Universal Training Tips Use Empathy. Any good salesperson is a good problem-solver. If a salesperson puts themselves in their prospect's shoes,... Craft a Script. Make sure your sales force has a solid foundation to stand on. Meaning, without sounding like a robot,... Identify the Bad Customer. Spotting the tell-tale signs of a customer who's window shopping or the chronic complainer... Overcoming Fear. Especially when it comes to less experienced salespeople, you need to help them overcome fear. For…
- 20. 2. The Sale Cycle
- 21. Changes over time Recognition of Needs Evaluation of Options Resolution of Concerns Major Account Sales Strategy -McGraw – Hill Demonstrating Decision Implementation ......as it links to the seller’s sales activities Planning Prospecting Opening Investigating Demonstrating Obtaining Commitment Following-up Demonstrating
- 22. 3. The 4 Stages of a Sales Call - SPIN Opening Investigating Demonstrating Capability Obtaining Commitment The Investigating is the most important stage of a sales call – This is where successful sellers invest most of their efforts A poor Investigating stage will greatly compromise the call’s outcome
- 23. Opening Investigating • Effective deployment of the SPIN™ Model • The development of Implied Needs to Explicit Needs • Preliminaries • Purpose of the call • Permission to continue The 4 Stages of a Sales Call - SPIN
- 24. Demonstrating Capability Obtaining Commitment • Presentation and/or Demonstration of the solution by describing Features, Advantages and Benefits • Main source of objections in complex sales A poor Investigating stage will greatly compromise the call’s outcome •Obtaining Commitment requires 3 steps : 1. Check that key concerns are resolved 2. Summarize benefits 3. Propose a realistic commitment The 4 Stages of a Sales Call - SPIN™
- 25. The Development of Needs Unknown Problems Difficulties Dissatisfactions Needs Desires Wishes Implied Needs OK for Simple Sale - Transactional Selling Approach Explicit Needs Required for Complex Sales - Consultative Selling Approach
- 26. 4. The SPIN™ Model Effectively using the SPIN™ Model: • S Situation questions • P Problems questions • I Implications questions • N Need-Payoff questions
- 27. The Objectives and Value of the SPIN™ Questions Situation Questions: •Collect facts and background data about the customer’s existing situation that is relevant to your products and services; •While these questions are easy to ask, they bring little value to the buyer and can certainly aggravate him if too many of these questions are asked; •A good knowledge of the customer’s industry and/or the information provided by an internal or external contact can help planning the call in a way to reduce the number of Situation Questions required; •The most effective Situation Questions are targeted toward customer problems.
- 28. Demonstrating Capability Buyer’s reactions: Features • Objections related to the cost of the product/service; `Advantages • Objections related to the value of the advantages mentioned; Benefits • Buyer’s agreement because it meets with his expectations.
- 29. Obtaining Commitment The Call’s Outcomes in a Simple Sale: 2 Possible Outcomes • Win the Sale • Loose the Sale The objective is to win the sale
- 30. Obtaining Commitment The Call’s Outcomes in a Complex Sale: 2 other Outcomes: • Advance The buyer accepts to move to the next step • Continuation The discussion continues, but no action is agreed upon The objective is to obtain an Advance
- 31. Obtaining Commitment Opening Investigating Demonstrating Obtaining Commitment 1. Obtaining Commitment starts before the call by planning a realistic advance (and a plan “B”) 2. Obtaining Commitment is easier when the explicit needs were discovered at the investigation stage and that benefits were offered during the demonstrating capability stage 3. Obtaining Commitment in 3 steps; 1. Check that key concerns are resolved. 2. Summarize the benefits 3. Propose a realist commitment (Advance)
- 32. Managing vs Preventing Objections Situation Questions Problems Questions Implied needs The seller offers advantages The buyer objects The seller manages the objections Managing Objections Preventing Objections The seller develops needs with “Implications” and “Need-Payoff” questions The buyer express’ “Explicit Needs” The seller offers benefits The buyer demonstrates approval and agrees
- 33. How to apply new skills efficiently? Rule # 1: Practice one skill at a time Rule # 2: Try a skill at least 3 times Rule # 3: Concentrate on quantity before quality Rule # 4: Practice the new skill in “secure” situations