mit15_387s15_lecture1
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15.387
Technology Sales andSales Management
Introduction
“Divers Delight”
Lou Shipley
Dennis Hoffman
Kirk Arnold
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About Lou Senior Lecturer at MIT
CEO, Black Duck Software
Open Source Logistics Software
CEO, VMTurbo.com
Intelligent Workload Management for Cloud and Virtualized
Environments
Experienced Operating Executive
Citrix
Reflectent (acquired by Citrix)
WebLine Communications Avid Technology
B.A. from Trinity College and M.B.A. from HBS
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About Dennis SVP, Strategic Planning, EMC Corporation
Diversified Information Technology
CEO, Storigen Systems (acquired by EMC) Distributed Storage Networking
Previous Roles
Entrepreneur in Residence, Bessemer Ventures Product Management and Marketing, Avid Technology
Strategy Consultant, Marakon Associates
Engineer, Polaroid Corporation
BSEE from Union College and MBA from Harvard
Married, four children, two dogs http://www.linkedin.com/in/dennishoffman/
http://www.linkedin.com/in/dennishoffman/http://www.linkedin.com/in/dennishoffman/
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About Kirk Lecturer at MIT
CEO, Data Intensity Cloud based services provider of Oracle application and
data management
Experienced General Manager
COO, Avid (Audio/Video tech; public, global)
CEO, Keane (Systems Integrator and Outsourcer, public)
CEO and Founder, NerveWire (Consulting and SI; venture)
Sales and sales management, IBM
B.A. Dartmouth; Chair, Mass Tech Leadership
Council; Board member, Cramer Digital Marketing
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Meet Jake Q. Snow
How old is he? What is his background?
What’s on his desk?
What conferences/Industry
associations?
What’s his motivation?
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What’s his motivation?
Head
Heart
Wallet
Image is in the public domain.
Source: Double-M on Flickr.
https://www.flickr.com/photos/double-m2/4694311841/https://www.flickr.com/photos/double-m2/4694311841/
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HEAD
(What are the technical qualities?)
• Technical features•
Zipper
• Cuffs
• Seams
•
Comfort• Alternative approaches• Wearing a hood
• Warranty
•
Funding levels
Image is in the public domain.
Source: Double-M on Flickr.
https://www.flickr.com/photos/double-m2/4694311841/https://www.flickr.com/photos/double-m2/4694311841/
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Heart(How do I feel about my supplier?)
Characteristics of “heart”:• Trust
• Relationship
• Partnership
•
Support• Working together• Building a business
• Brand
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Wallet(What are the wallet items?)
Examples of“wallet” items:
• Cost
• Margin
•
Volume• Other?
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Assume Head, Heart, Wallet
Are Equally Important
Then.
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Introduction to Sales and
Sales Force ManagementWhat Will You Learn?
Budgets
Product Knowledge
Hiring & Firing
Ethics
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Selling is NOT
An art, it is a Process.
A “Low-Life” profession.
Done solely on relationships.
Throwing out the latest features.
A price game.
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What is Selling!
Definition:
“Selling is the transfer of products orservices from one person to another
through an exchange mechanism
called money.”
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Fears All Buyers Have! Fear of losing self-esteem.
Fear of the unknown.
Fear of losing control.
Fear that a wrong decision could mean
disaster for the company. Fear that a wrong decision could ruin their
career.
Fear of buyer’s remorse. Fear of a wrong choice could diminish
respect & esteem of others.
Source: David Sandler
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Selling Facts
“PEOPLE BUY NEEDS SATISFACTION”
Selling is the fastest way to wealth outside ofan inheritance.
“Sales success is a continuous journey
towards the achievement of predeterminedgoals” (by: Tom Hopkins).
20% of your customers will generate 80% ofyour sales.
Sales is a “Numbers Game.”
Sales is a “Planned Process.”
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Maslow’s Model
Self-Actualization
(Fulfillment of Individual
Potentialities)
Achievement and Esteem(Self respect, esteem of others, need for
achievement, prestige & status)
Affiliation(Love, affection, belongingness, acceptance)
Safety
(Order, need for security, no risk, stability)
Physiological(Water, food, shelter, sleep, sex)
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What People Buy
Source: Selling & Sales Management
Benefits
(Feel Good)
Features
Options
ModelBrand
Repair
Installation
Warranty
Service
Credit
Core Product
Formal Product
“Needs
Satisfaction”
Ancillary Product
“People buy for their reasons – Not yours”
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Influence Types of a SaleType Definition
User The person using the product.
Influencer The person who helps influence the
sale, such as a consultant.
Technical Decision The person who qualifies,
Maker technically, the product or service.
Economic Decision The person who has the authority to
Maker approve the purchase.
Buyer The actual purchaser, usually a
purchasing agent.
Enemy The person who does not want your
product sold to the company.
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Psychological “Needs” of
SellingPsychological Needs Decision Making Process Sales Cycle Timing
Power Bold decisive decisions; Fast
Influences control of the salesprocess on others.
Achievement Bold decisive decisions; The Fastneed to accomplish or see
change; Results driven.
Recognition Moderate decisions; Influences Moderate
the sales process on others andmust be recognized.
Affiliation Moderate decisions; Team or Moderategroup driven; Influences the sales
process with others.
Control Cautious decisions; Must have Sloworder, process or rules;
Influences others sometimes.
Security No real decisions; Avoids risk or Slowchange; No real influence on
others in the sales process .
Source: Tom Hopkins & Tim Kraskey
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Multi-Level Selling
When selling in large organizations, you
will have different “Needs” satisfactionby various departments and individuals.
VP Engineering
Achievement
Dir. Manufacturing
Security
VP Operations
Safety
Outside Consultant
Enemy
Dir. Marketing
Affiliation
VP Marketing
Control
Purchasing
Manager
Recognition
CEO
Power
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The Sales Effect to the ProcessSales ManagerControllables
- Marketing - No. of
Strategy Salespeople
- Marketing Mix - Staffing
- Product - Training
-
Price -
Procedures
- Promotion - Tools
- Place - Information
- Motivation
- Compensation
-
Monitoring- Feedback
Corporate SalespersonInput Input Variables
- No. of Calls
- Quality of Calls
- Content
- Communications
-
Service
- Allocation of Effort
-
ROI
- Growth
- Net Profit
- Market Share
Corporate
PerformanceSalesperson
Output Variables
-
Sales Volume
- Sales Mix
- Sales Costs
Salesperson
Performance
-
Contribution to
Profits
- Return on
Assets Managed
- Sales Cost Ratio
Source: Henry Porter
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Why Sales People Fail? Lack of planning.
Lack of product knowledge. Poor work habits and time management.
Lack of desire, ambition or drive.
Lack of vision for opportunity. Inability to handle objections.
No self-confidence and easily discouraged.
Can’t close effectively. Poor presentation skills.
Poor listener or communications skills.
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What is Selling!
Definition:
“Selling is the transfer of products orservices from one person to another
through an exchange mechanism
called money.”
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What Are They?
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The Selling Triangle
Attitude, Enthusiasm & Goals
Source: Tom Hopkins
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The 7 Step Sales Process
New Satisfied
Client
Target MarketSegments or Specific
Prospects
1) Plan1) Plan
2) Meet
3) Qualify
4) Propose
5) Confirm
6) Close
7) Assure
InitialContact
Get Needs
Presentation
Propose
Solution
Confirmthe
OrderGet Referral
Source: Be Your Own Sales Manager
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Types of Selling
Chip Maker
(Industrial)
System Maker
(Manufacturing)
Wholesaler
(Distribution)
Local Store
(Retail)
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what we will cover
How to make a sales call
Basic sales management
Advanced sales management
Startup sales toolkit
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Readings
Sales learning curve
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MIT OpenCourseWarehttp://ocw.mit.edu
15.387 Entrepreneurial Sales
Spring 2015
For information about citing these materials or our Terms of Use, visit: http://ocw.mit.edu/terms.
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