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Sales Execution Schizophrenia - Juggling a Diverse Product Mix Effectively � - Jim McLean

Healthcare sales and marketing executives and managers are increasingly finding themselves carrying a wider and deeper bag. Within the bag may be a mix of disposable, lower priced reusable, capital purchases, and service contracts. More and more of us are finding ourselves responsible for the success of a product line where the individual components of the line have different decision makers, decision influencers, and are purchased within the context of very different customer decision making strategies.

This results in a nightmare for all those from the newest salesperson to the most seasoned senior manager.

As a result, the following concerns are commonly heard:


�I have some reps that are good in capital sales, some who are good at disposable sales, but very few who are achieving sales targets in both categories.�

�My sales team is shying away from selling our new product because they break out in hives at the thought of explaining the software, or carrying on a conversation with IT.�

�I am struggling with the relative coverage emphasis to put on hospitals, clinics and physician practices.�

�Our service contract business is not meeting expectations. Our reps seem to have trouble selling an intangible item.�

�Morale is suffering because our reps find it difficult to make their number in all categories.�

When a company is faced with juggling diverse selling circumstances due to product line diversity, here are some questions to ask:

�Have we really examined how the nature of each of our products impacts on the best way to promote them?�

�Have we identified the specific sales processes and behaviors that are required of the sales force to achieve success in each of the categories in which we participate?�

�Have we effectively communicated to the sales team the processes they must follow, by product category, in order to succeed with each?�

�Have we educated our sales team about new call points so that they will feel comfortable in approaching and engaging them?�

�Are our people flexible enough to utilize two or more selling approaches in order to succeed in all categories?�If not, do we need to create specialist sales functions to handle different product categories within our line?�

�Have we considered that the beliefs and behaviors our sales force has learned in selling successfully within one category may actually get in their way within another?�

�Have our hiring criteria and job descriptions been updated to take into account the changes in our selling environment and product offering?�

�Do we need to divest ourselves of certain product lines in order to avoid diffusing our efforts?�

There are no easy answers to these questions. The answers will be different for every organization. However, failure to ask the questions and inaction in acting on the answers is a recipe for continued failure in those categories which are not performing, and a hindrance to optimizing success in those which are.

Once the answers appropriate for a company�s business situation and resources are determined, the following actions are necessary to achieve in all product categories:

  • Revise the hiring profile for new representation
  • Revise the job descriptions of each function on the sales team
  • Develop specific objectives, methods and measurements of success for each product category to drive sales activity and promote accountability
  • Develop customized training that identifies the selling system and behaviors most appropriate for each product category
  • Establish line sales manager competency in coaching each selling system
  • Create an incentive system that rewards for sales achievement across the product line

Succeeding in multiple product categories is difficult, but not impossible. It requires in-depth situational analysis, precise planning and a flexible sales team to implement the plans

Your personal downloadable copy is available by clicking here> pdf

Read here to find out more about Jim and how you can contact him personally >>

Jim McLean
Consultant
Resource Management International, Inc.
Dallas Office:
5808 McKinley Lane
Richardson, Texas 75082
USA
Tel.: 972-918-0763
E-mail: jmcldal@aol.com
Website: www.4rmi.com

�Copyright Resource Management International, Inc. 2005

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1 comment

1 Jon Bown { 08.29.05 at 10:35 am }

Jim, excellent document. From my sales and marketing experience within and outside medical, I feel that the medical sector is less developed in tackling the above issues. Here are some key points to back up your views:

  • Scandinavian medical markets often encourage the ’soft therapeutic approach’ to selling to the point at which they recruit ’sales personnel’ that do not know how to sell. Such people are terrified of the word ‘commerce’. Often the best medical sales people are recruited from outside medical (my medical experience is from ‘Coca Cola!). They know how to adapt to customer needs, to learn fast and, they certainly know how to sell! (see my article on Hybrid Vigour!)
  • We often find that medical sales do not know how to develop manage long term contracts, but are good at ‘maintaining’ sales in existing clients. Twenty years ago at Kraft we had the same problem on the catering contract side. I developed the solution….a step by step account assessment and contract development process that gave the sales teams confidence in assessing customers for their ideal equipment installation, branded purchases and financial agreements. Often senior managers and marketers neglect to give their ’sales teams’ the ‘hands on tools’ to do their job.
  • Another point is how to communicate to an excellent sales team. Once at Black & Decker I had encourage my sales teams promote the ‘higher margin/faster moving’ products, as opposed to just going for the sales line. Sales hate finance. The night before the conference I saw them all playing snooker. Solution!! A simple slide with the product range ….and next to each…..a coloured snooker ball! Highest margin product = black! Highest volume with adequate margin = red! and so forth down through the colours to the negative margin price fighter = white! I wanted them to keep ranging (and potting) black and reds…..who wants to pot the white! The sales guys got the point very quickly,…. they could keep slide in their daily account files in total confidence….and we got the profitability of our household business up 5% over the quarter!!

I have tried to comment with some interesting points to back up Jim’s case. Sales force failure is the fault of management. Inapropriate recruitment, poor understanding of the conflicts of selling extended and diverse ranges, and not providing the sales tools and solutions in a practical and understandable manner. ‘Structured support’ needs to be behind the sales team in order for it to be confident and effective.

Regards

Jon Bown

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