The Source of Growth

Yesterday success cannot guarantee the future. It really happened to sales people because every company needs strong and sustainable growth which makes the target getting higher every year. Depending on the existing outlets will not always solve the problem because of their limitation in sales potency. Salesman must find new source of growth to increase the overall market potency and ensure the target achievement.

To obtain the source of growth, salesman has to understand the market, sales potency, type of consumer and costumer also the market accessibility. Type of source of growth can be described as follow:

• New Products
  

  New product usually sell in existing market, it will enrich salesman's range of product in costumer's store and increasing their stock level. New product can be the source of growth if other existing product sales are stagnant or hopefully increase. For example if salesman sold 4 cases from the existing product then it will become 5 cases with new product.
  

• New Area
  

  New area is a market which previously not covered by salesman due to time limitation or market accessibility. New area consist of new costumer and new consumer which can be transform into additional sales volume and if managed well, salesman could turn this area into source of growth. The best alternative for this approach is by appointing third party to solve market access issue or salesman's time management to overcome the time limitation.
  

• New Channel or Segment
  

  Different from new area, new segment or channel are exist in current costumer or consumer. Markets are changed and so do their costumer and consumer. The salesman's ability in analyzing the change of the market like costumer behavior or consumer preferences could change the current channel or segmentation. New channel and segment will also include new costumer and consumer with their own behavior and preferences together with the need and wants. Connecting all aspect mentioned to the salesman's product will turn it into source of growth.
  

• New Market Approach
  

  Change the way salesman approach the market could turn into benefit and advantages. Appointing third party to cover certain area, cover directly to small outlets rather than depend on bigger outlets or use latest technology like internet also change in coverage and distribution system would be great example to explain this source of growth.
  

All source of growth option mentioned above require additional investment. How salesman choose the right option of source of growth and work their best with all effort and passion will make the additional investment worth.

 

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Salesman’s Tools

In order to sell the products, salesmen need to go through the selling process, and in order to support the selling process and gain best result on sales volume, salesmen also need tolls to make the process become easier by connecting the costumer's need and wants and interest to the salesmen products.

There are several tolls that can be used by salesmen in selling process

• Products Catalogue
  

  Product catalogue will give clear view of product's feature like color, shape and size. This catalogue will help salesmen introduce the product to costumer, Costumer will get visual on the product feature while salesman explaining the benefit and advantages of product. Usually costumer also compared with other product which have high turnover to complete their decision in buying the products.
  

  Product catalogue are effective when salesmen have lots on SKU for the product but if salesman only have 2 until 5 SKU, it is much better if salesman bring the product sample.
  

• Costumer's Sales History
  

  Costumer sales history is sales record made by each outlet in the last 3 – 4 weeks. This tool will help salesmen suggest the sales for the costumer. Salesman will understand the average sales made by costumer each week and understand a problem occur when costumer order lower than average, salesman will also aware regarding the increase of sales potency when costumer order higher than average.
  

• Price List
  

  Since salesmen memory has limitation, price list will help for salesmen which have lots of SKU. Especially when structure price are implemented or the price for each channel or certain level of transaction are different.
  

• List of Activities
  

  Sometimes companies implemented different activities in different channel while salesmen outlets are consist of multiple channels. Bringing list of activities during the sales process will help salesman suggesting the activities and monitor the implementation.
  

• Invoice
  

  Invoice need to record sales by each costumer and also act as prove for payment or order.
  

Tools mentioned above will greatly improve the salesmen's sales process, and if use effectively will bring great result in sales performance.

 

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Selling new product

Every company needs to improve the sales performance and experiencing growth. The importances are to maintain the company’s position in the market and ensure the life of the company itself.

One way to improve the sales performance is by introducing and selling new product in the market especially if found that the opportunity are exist and the existing product are mature and need some innovation and renovation.

Require strategy for sales person to smoothly introduce a brand to the market, failing this will result loss in company profit which used for production and promotion activity

There are several strategies that sales person could use in selling the new product in the market:

1. Consumer Promo
At early stage of launching, creating brand awareness to the market and especially end user is important. And if it happened the end user are consumer then you might want to launch the consumer promotion.
There are several types of consumer promotion like billboard, TV Commercial, ads on media or product sampling. But selecting the right consumer promo require market research on your end user and effective promotion related to them

2. Costumer Promo
While the first strategies are mostly done by marketing people, this second strategy is sales people responsibility.
Just like consumer promo, there are also several strategies related to costumer promo as follow:

• Display activities
  Main Objective is to make consumer aware of the product when their visiting their regular costumer.
  Place your product on its category shelf in costumer store might improve your awareness and since there are limitation in store space the reward scheme for display might give you best location on costumer store
• Tie In
  For small type of costumer, usually they only sell fast moving products to optimize the space, facing this type of costumer tie in promotion might be a good idea especially if your existing products are well known in the market.
  You can give your new product free as sample or tie the sales with existing product in one transaction requirement
• Free Products
  Experience is need to convince the outlet for selling your new products, while perhaps some outlets refuse to invest on your new product, giving free sample is a good option. The costumer will have two experience of selling the product and consume the product so that they can tell to their consumer about the experience is consuming your new product.
• Special transaction promo
  Since we don’t have the potential number of each costumer and usually costumer have their own cash flow to be managed and buying extra number of product rather than regular will disturb the cash flow, offering special promo is great option, promo like buy 5 get 1 or buy 3 get 1 will attract costumer to buy more of your new product.
  
  While both strategy and approach related is a tool, still the importance in selling any product is how we related the costumer need to you products.

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How to get extra sales people without additional fixed investment

Sales person play important role in developing the market and improving the sales performance. Each additional salesman will give extra sales volume, extra outlet covered and extra products availability.

Getting sales people need cost, just like other employee in a company, but sometimes we face difficulties in adding the salesman if we are try to open new market where the sales volume and profit from that market are still unsure, but we need to open the market since we need to have strong and sustainable growth for the business.

Assigning existing salesman to cover the market might be a good idea, but less focus from current salesman area and business will be the potential problem for this action especially if the new market range is far from the salesman current market or if the new market is new to the salesman.

The best option for this kind of situation will be assigning third party to cover new market. The advantages and disadvantages are as follow:

1. Advantages
Advantages we are not use fixed cost like salary, medical and other employee related fixed cost, and instead we use variable cost in term of sales incentive. The third party will get pay base on how many product they sell to the market.
Other advantage is we can sell directly to end user using the third party. Third parties usually have loyal customers who loved to buy from them; it can be come from long time relationship, attractive term of payment offer by the third party and range of product that third party have.

2. Disadvantages
Disadvantage of using third party is that we cannot manage the price given to the costumer, clear penetration rate monitoring and less account management from our product to the costumer.

Understanding both advantages and disadvantage will give you clear view of using the third party as additional salesman for your product.
If you are using this type of salesman, there are several criteria that have to be met in selecting the third party candidates:

1. The Big outlets for your related product
Before entering the new market, you may use initial research for the market like costumer type, route to market type and competitors.
In costumer type and route to market research find the highest channel in route to market which can be wholesaler, grocery or food supplier and find the main player. Please take note to main player which use your related product as their backbone in daily selling.

2. Use Active Outlets only
From the main player list, separate the active and passive outlets. Active outlets are outlets that use their own effort to come and sell the products for their costumer, usually they use vehicle like car or motorcycle or there are also outlet which actively call the costumer and send the product whenever they need it.
Passive outlets are outlets that wait for the costumer to come. Usually found in traditional market
Deleting the passive outlets player from the list since it will not help you much in penetration period.

3. Financially Strong
To minimize the risk in doing business for the new market, the third party financial has to be strong. Use the active main player list and add financial level column next to the name list.


4. Willing to sell your products
From the active outlet list, put on top the outlets that sell your related product as their daily selling back bone, this type of costumer will have more probability to accept selling your product. Also offer attractive reward scheme to ignite them since their most objective in business is profit.

5. Willing to cooperate with you in developing the market
The outlet chosen must be willing to work together with us by providing outlet information regarding product penetration and availability and Give more information on how to develop the market

After completing the steps above, you will find short list of candidates of third party. Use them and analyze them wisely to choose the right third party for your products.
After your sales in the new market are enough to implement fixed salesman you have option whether train your third party or deploy your very own salesman for better account management and market development.

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Two Approaches in Market development

Every companies need a strong and sustainable growth, and one way to make it happened is by growing the company’s product to strong and sustainable growth. This is part of the sales people responsibility.

Doing the same ways like yesterday cannot guarantee your today’s success. You cannot do the same thing if you wish to grow your product’s sales and one good way to do it is by developing your market.

There are two approaches that sales people could use to develop the market

1. Vertical Approach
Main Objective for vertical approach is by healthy increasing your existing outlets stock level which can be done by developing outlets selling out.
Developing selling out of a costumer mostly used extra promo in outlets like display activities and consumer promo activities, but offering new SKU of product could also improving the outlet stock level and selling outs.

2. Horizontal Approach
Developing the market using this approach is by acquiring new outlets. Acquiring new outlets can be done by market expansion to new market, new channel or new segment and getting more new costumers.

Both approaches can be used to develop your market but the best option will be the combination of both approaches. You gain improvement on sales and creating new source of growth from the new costumers.

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Three “KEY” for the sales people

There is “KEY” for the sales people that have to watch out every time he made sales activities. These “KEY” are influence the sales performance, the costumer’s loyalty and the sales people career.

These “KEY” are as follow:

· “Key” Outlets
Key outlets are outlets that affect the most of the sales people sales performance, usually only have small amount of outlets quantity but with large amount transaction level.

· “Key” Persons
Key person is someone who responsible for the buying decision in outlet. Managing a good relationship with this type of person will smooth your sales and costumer’s loyalty to your product

· “Key” Performance Indicators
Key performance indicators are important indicator of your sales activities; it can be monthly, daily or weekly sales, the sales productivity or perhaps current activities running in your area.
The key message in Key performance indicator is play as reminder for you regarding several key point of your sales activities so that you know where you are, how far your position with the target and identify the gap.

Understanding the “KEY” above will improve the sales performance since if you could manage by giving more time and attention plus support to key outlets and key person, it will give you extra credibility and loyalty. Mostly loyal costumer will improve your sales performance; give you the insight on how the costumers see your product and some competitor information. Analyzing the key performance indicator will give you the right track to ensure your target achievement on sales activities key points.

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Checking on Costumer's Stock

Product availability is one of sales people responsible in every market. It will guarantee the product awareness, fully captured the product potency and limited the space for the competitors.

To ensure the products are available in costumer, sales people have to check the costumer product stock in every visit or call he made before taking the order. You could to the checking at early stage of your visit, after say hello to your costumer then ask permission to check on the stock.

There are two reasons why sales people have to check costumer’s product stock before taking the order as follow:

· Ensure the freshness of your product
Freshness of product is a must; your brand reputation is depending on it and it will increase your costumer’s loyalty. Check on the product expired date and take proper action for product that are closed to the expired date.

· Create order suggestion
After checking on your entire product’s SKU, you will find which products selling out are low, medium or fast by comparing the actual stock and standard stock the costumer must have. After identify the selling out type you could suggest the costumer to order based on it like decrease the order for low selling out type, regular order for medium type and increase the order of fast selling out type.

After doing those two steps above you could come to the costumer again for the next selling process like check on the advertising, the competitor activities until taking order which you already have the number.

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How to Increase productivity

Target for salesman is not only sales value, sometimes the managers also ask for sales productivity as target for sales people. The reason is clear since as more outlet become productivity the more sales volume will come and it is best to have many outlets with less sales volume rather than few outlets with big sales volume.

For sales people increasing the productivity could come in two ways, first is by managing the existing outlet to become more productive and the other is finding new potential outlet.

These are approaches that Sales people could do to increase the sales productivity:

1. Increase sales productivity through existing outlets
To increase sales productivity by using his option are require these steps as follow :

• Create a list of non productive outlet in certain period of time, lets say the last 6 Months
• Identify each outlet problem and issue, many issue will come up from changing Buying frequency, switched to our competitor, low selling out until the outlet are already closed
• Clean up your outlet data base by deleting outlet that already closed
• Focus on outlet which have low selling out or switched out to competitor issue.
• Solve the problem on each focused outlet, like for low selling out issue can be solve by delivering lower quantity of product or suggest advice on how they should sell the product by using our experience from other outlets or market.
• Outlet that switched out to competitor have several reason, it can be price or have problem with the sales person and the product it self. It can be solved b better account management from the sales person by proposing better sales service, in store activity or consumer activity for the costumer store

2. Increase sales productivity by acquiring new outlets

To be successfully acquiring new outlets require these steps as follow:

• Outlets have to meet the product nature. Selling ready to drink product in school,restaurant or street outlet is good example while you can’t sell baby milk in these type of outlets
• Understand the first impression process, there are four process, first outlet know the product, then they feel confidence with the product, third outlet respect the product then the last process is buy the product
• Emphasize in benefit and advantage, meet the outlets needs and wants to the product as the solution
• Describe the product value, like well known brand, after sales service, frequent promo activation, on time delivery service until bad goods management.

None of the above alternatives is best, each alternative have own strength and weakness, While existing outlet is less risk because we know the outlet well, it will cost you more through in store activity or selling incentive. Obtaining new outlet cost is rather low since the key point is account management on how we meet the outlet needs and wants to our product but the risk is higher

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Price for the sales people

From the 4P concept in marketing mix, price are important for the product success, failing in determining the right price for the product will ended in failure.

But sales people are usually not involve in determining the product price, but the job of the sales people are implementing the right price structure to the market so costumer are interested in buying the product and improve the sales performance from time to time.

There are many obstacles in implement this price especially if you found that your product is more expensive from the competitors which have similar type of product.

If you happened to face this kind of situation there are several tips that might help you to overcome the problem:

1. Focus on your product value
People pay not for the product but they pay for the value given to them. Explain the value of your product by showing the benefit and advantages of selling your product like extra margin for reseller, dependable after sales service, easy to find spare parts until drawing opportunity. Wrap up all the positive side of your product add with the benefit given and put advantage for selling your product as topping then serve it as total value package to your costumer.

2. Reference
You could tell the success story of other costumer in selling your product. Since the story will have the same business situation of the costumer that you face, they will find it applicable to their business and have clear understanding on how to sell your product.

3. Maintain your selling Price
There are various types of outlets, there are outlets who sell directly to consumer, but also reseller outlets or outlets that sell to other costumer like wholesaler or grocery outlets exist. Use recommended price to outlet that sell to consumer and give extra discount for reseller outlets which make the consumer price are same in all outlets and all similar markets

Applying the above tips will make it easier in selling your product and will improve your sales; even if you found that your product is more expensive than your competitor. Key point to note is apply same price to all market and outlets for the consumer then selling your value to your consumer instead of your product feature and if you sell in traditional market which have lots of outlet, reference from other costumer success will also improve the buying signal from your costumer

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How to improve your sales and achieve the target

Every single sales person have to face the sales target, achieving the target will improve your performance and achieving reward from the incentive.
But the target are not easy to reach, it will getting higher every year since most of the company seek for sustainable growth. So the best way to achieve the target is find a way to improve our sales as part of our market development and finding the source of growth.
There are many ways to improve the sales but the key points are described as follow:

1. Key Outlets
Key Outlets are possibly outlets that could contribute more than 40% of your sales, spend more time and effort to these outlets will mean something to your sales improvement.
There are two ways that we could take to improve the sales in key outlets:

a. Product activation
This by creating in store promotion to your key outlets, it can be display activities, consumer promotion or reward if outlet could sell certain amount of product in period of time.

b. Account Management
Create better relationship with your key outlets will also improve your sales. One good way is by helping your costumer increasing the selling out of the product, seek new ways to attract more people come to the store and other thing that could lift your value in your costumer eyes.

2. Sales Productivity
Increasing sales productivity will also improve your sales performance, especially if you have lots of items to sell, small amount of productivity increase will greatly improve your sales volume

3. Finding new opportunity
New opportunity could be a new market area, a new segment or other creative ways to acquire new costumer. The approach could be different from your existing area or segment and it also takes extra time and effort before you gain the reward for developing the area. But the good news is this area or segment can be you additional sales volume and become your source of growth for the upcoming years.

Key point in improving your sales and ensure the target achievement is that you cannot do the same thing you have done yesterday, pay extra attention to your key outlets, find effective ways to increase your outlet productivity and acquiring new costumer from new market or segment will improve your sales performance.

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How to make sales training works?

Since market is very flexible and we cannot precisely predict the future of the market, sales training is very important tools to improve the capability of the sales person in the company.

But sometimes sales training found not effective in improving the salesman capability and will result with additional cost without gain.
To be effective in sales training there are requirement that have to be met as follow:

1. Meet the needs
Training has to meet the salesman needs in improving their skill, adopt their daily activity and real market situation. You cannot train basic salesmanship skill if the needs are negotiation skill.
To understand these needs we have to compare and find the gap between the skill needed in current market situation and the skill mastered by our salesman. By doing so we could predict the right sales training for them

2. Company Goals in both short and long term
All activities made by company have to connect with company goals, this also happened in sales training, if the company goals include becoming the leading company in certain industry or have the largest market share in certain brand, then it have to be supported by capable sales person.
What is the sales person Capabilities Company wish to be are part of sales training program.

3. Commitment
Effective sales training require commitment from both the company and employee to implement the change of behavioral, practice new skill which will result in performance improvements.
Create monitoring form that include key point in skill improvement and reviewed by employee and superior in certain period of time, will strengthen the performance improvement after sales training

4. Speak with their language
Training material has to comply with sales training participant language not only the content but also the delivery, use daily example, real market situation and participant from the audience will make the training become live and easy to absorb by participants

Training is effective way to improve the sales person capability and will resulted in company performance improvement.

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Easy Selling Requirement

Every salesman jobs is selling, they do this kind of job every day, but there are salesman who have hard time in selling activity, they have to adopt with many things from competitor sales activity, price related with other similar product until government regulation. This condition will make them feel not comfortable with their job, working environment and ended with low target achievement.
To experience easy in selling require several requirement and you will find easy selling experience if these requirement are fulfilled

1. Product is famous
Selling is easy if costumer know the product, not only the feature of the product but also the benefit in selling the product which can be felt when there are people who ask the product regularly to them. Costumer sees the advertising in the media and their friends telling positive story about the product. Famous product will guarantee the costumer selling out and will give sustainable profit for costumer.

2. Price is Cheap
Costumer always seeks for the lowest price with the highest value. This case mainly happened in consumer product goods which have lots of substitute product. Low price will attract more consumer especially consumer with price sensitive, and will ended with more profit to the costumer

3. Long Trading Term
Costumer are also seek for long trading term since it will make their money turn over become faster. Some product sell in cash but there also product sells in credit or with trading term, but most of costumer will always not prefer cash if there are no additional value from credit payment.

It is important to understand this easy selling requirement; you can analyze your product position from this requirement and take proper action to close the gap without sacrifice your company profit.

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Selling Infamous product

Selling is easy if the products are well known by the costumer, but this situation are not always happened to all sales people, in fact many sales people have to sell product that are not famous, it can be new products or selling old product to brand new market or segment.
Facing this kind situation, we have to consider several things before move on selling activity which can be described as follow:

1. Understand the nature of the product
Every product has it nature. And can be find out by following these steps as follow:
Identify the end user, it can be consumer or costumer
Identify where the end consumer get the product and study the route to market for the product
Find proper activity related to product, t is use discount, prize as reward or perhaps display activity
You can learn from your existing area or from your competitor to get the figure.
Result form understanding the nature is potential targeted segment for your product. You can learn more by focusing on this segment




2. Product Display
After selecting the target for your product based on the product nature, create a display in the store. Impulse buying is important for new product and one of the best ways to do it by conduct a display in the store, it will cost you a bit, since you are new and the store space are limited but you have to ensure that your investment pay off by placing your display in most strategic location near product’s direct competitors. That way we will have extra sales improvement.

3. Sales Incentive
Sales incentive is powerful as motivation for sales team and outlets. My suggestions for incentive are as follow:

a. Sales Force
Since it is new product, the incentive is based on number of outlet selling the products; it will spread our distribution faster. Complete your sales force with product knowledge, brochure and product sample to make costumer have clear perception regarding your product.

b. Costumer
For costumer the incentive should base on product selling, give them reward if your costumer could selling the product in certain period of time. This action will make your costumer also become your salesman. If the reward found attractive they will put your product as first priority for their costumer rather than your direct competitor.




Selling infamous product is not easy, but if you could define the product nature then creates activity on potential targeted segment plus incentive or reward for sales force and your costumer then the sales improvement is on the way.

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