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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

 

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