MARCH 2013 Issue 69
PROFESSIONALISING SALES Putting the U in your USP Measure what gets results Focus your prospecting NZ’s e-mag for sales leaders 1 / www.nzsalesmanager.co.nz
CONTENTS 6
THIS WEEK'S MUST READ
Professionalising Sales The UK National Sales Agenda
11
Putting the U in your USP How to develop your unique selling point
14
Measure what gets results Actions not dollars
16
Resource corner To Sell is Human The surprising truth about persuading, convincing and influencing others.
18
Quick Fix Focus your prospecting It’s not what you sell, it’s how you sell
www.nzsalesmanager.co.nz / 2
20
CALENDAR
21
THE CLOSE
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ABOUT / Short and sharp, New Zealand
FROM THE EDITOR
Sales Manager is a free e-magazine delivering thought provoking and enlightening articles, and industry news and information to forwardthinking sales managers, business owners and sales professionals.
EDITOR / Paul Newsom
You may be wondering why we are
first suite of sales qualifications were
leading with an article about the
formally introduced.
state of selling in the UK. I have long held the belief that the purpose of this magazine is to help the sales and sales managers out there, but also to help raise the importance of selling in business and support the evolution of selling into a profession. Although the article addresses the issues facing the UK, the issues described here are global and very relevant to New Zealand. With respect to national standards in sales, and sales qualifications, we are at least seven years behind the UK. Hopefully in New Zealand, 2013 will be the year that we can say the
ART DIRECTOR / Jodi Olsson GRAPHIC DESIGNER / Sevim Dogru GROUP EDITOR / Trudi Caffell
A stand out comment for me from the article is from Beth Rogers, who says refers to the performance of Finland, where the “government encourages
sales
education
because new companies in their small local market have to go global very quickly.”
CONTENT ENQUIRIES / Phone Paul on 04 586 4733 or email pauln@nzsalesmanager.co.nz ADVERTISING ENQUIRIES / Phone Richard on 09 522 7257 or email richardl@espiremedia.com ADDRESS / NZ Sales Manager, C/- Espire Media, PO Box 99758, Newmarket,
Replace Finland with New Zealand –
Auckland 1151, NZ
we have the same challenge. What
WEBSITE / nzsalesmanager.co.nz
we need now is the government visibly encouraging sales education in the way the UK are setting out to do.
ISSN 2230-4762
Happy Selling Paul
NZ Sales Manager would like to acknowledge the support of our major partners
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MUST READ
Professionalising Sales The UK National Sales Agenda
A
new year is always a good time to take
in the past few years that selling and commercial
stock, but 2013 is a particularly good time
skills and methods are receiving more attention.
to review the position of sales in the British
(and world) economies and to consider what’s on the agenda. That’s because there remains a pressing
How we move forward, building on this momentum, could be critical to competitiveness and the target
need to optimise business skills in the continuing
we all want — recognition of the professionalism
challenging climate, and there are encouraging signs
of salespeople.
www.nzsalesmanager.co.nz / 6
MUST READ
At first glance, the signs are
the utilities and mobile phone
salesperson performance rating
not that great. Figures from
companies, and it seems that
books, consultancies and training
various sources show that there
no sooner than one approach
firms. But as Turner points out,
are 25% fewer high performing
is curtailed, another appears,
what is required is the kind of
solution salespeople in the UK
whack-a-mole like, such as the
research base that colleagues
than globally, that about 30% of
current spate of automated
in marketing have developed,
salespeople are in roles they are
calls about payment protection
and this should be underpinned
not suited for, and that students
insurance and the dreaded ones
by a partnership between
rank sales as lowest for status, job
about checking your PC for
government, academia, industry
security and satisfaction.
viruses, although most of those
and institutes such as the ISMM.
Ben Turner, sales director at
come from abroad.
This is where there is some
the ISMM, notes that buyers in
B2B selling as well is by no means
encouraging progress, as the UK
particular have a poor perception
immune to poor and sometimes
now does at least have a set of
of salespeople’s credibility, and
unethical practices, such as
National Occupational Standards
about half would not be proud
massive fines in the US for drugs
for sales, developed in 2006 by
to sit on the other side of the
companies misrepresenting
the National Sales Board.
table and be a salesperson. “But
their offerings in the healthcare
research by consultancy DDI,
In turn, in England and Northern
supply chain.
Ireland, Ofqual is the agency that
What the ISMM has now started
then regulates awarding bodies
is a campaign to put selling
for qualifications, which includes
on an equal footing with other
the ISMM — and on Ofqual’s
professions to address these
website there are no fewer than
Generally, salespeople are mostly
shortcomings, building on some
67 ISMM sales qualifications
ranked as only fair to good at
already solid foundations. There
from levels 1 to 6 that conform
what they do — very few are
is plenty of material that gives
to the Qualifications and Credit
graded as excellent — and it’s
strong leads on what ‘good’ looks
Framework (QCF), and which
a middle-ranking performance
like in selling, such as the annual
are based on the National
that does not appear to be
surveys from CSO Insights and
Occupational Standards and
improving, at least as judged by a
Miller Heiman, which give many
in its global sales perceptions report, shows that this is not just a problem in the UK, but a global one,” he says.
majority of buyers.
and detailed metrics on what top
available to training organisations approved by the ISMM to deliver.
What hasn’t helped in the UK is
performing sales organisations
If that sounds complicated, it
the string of mis-selling scandals
tend to do better, and any
is — and there just isn’t enough
and high pressure tactics of
number of sales methods and
promotion by government of the
New Zealand’s leading sales and marketing training company. Why? We understand that success in business depends on the actions you take. You get results. Guaranteed.
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MUST READ
this approach to sales learning, which the ISMM is promoting. “It’s not about a particular sales methodology but about salespeople understanding that there is a range of approaches that can be applied to their profession,” says Turner, who adds that the current trend to focus on value applies as much to what the salesperson brings to the table as professionals as to their solutions. It’s a view reinforced by work by McKinsey, which we reported in 2010, that buyers most value the ‘sales experience’ they encounter, and respond best to fewer, meaningful and highly knowledgeable interactions. More recently, we ran an in-depth article by Nick importance to ‘UK plc’ of the benefits that properly
Lee, professor of marketing and organisational
accredited and researched training frameworks
research at Aston Business School, and Ian Luxford
can bring to the workforce. That said, as Turner
of Grassroots, on research on the qualities that
points out, the situation for sales is far better than
people associate with salespeople.
a few years ago — with the interest now in sales
Given that there are hundreds of thousands
academies, in particular, there are now several
of sales and sales-related personnel in the UK,
thousand sales and sales-related personnel taking
there is huge scope to enlarge the reach of sales
these qualifications, rather than hundreds, in major
professionalisation, building on the standards
companies such as AXA, BT, SIG and Virgin, and
and qualifications, although these are by no
there is also strong interest from overseas for
means the last word in what works, and there is a
www.nzsalesmanager.co.nz / 8
MUST READ
major opportunity for the UK
in school and higher education
schools that have adopted ISMM
to become a leader in more
— the 14–19 diplomas started
level 1 and 2 sales qualifications
research. What is needed? Says
by the last government now
as part of their business
Turner: “We asked Nick Lee, who
have lukewarm support, while
studies teaching.
has strong sales interests, what
the interests of industry are split
Beth Rogers, head of marketing
it would take to position the
between the Department for
and sales at Portsmouth Business
UK in selling, as marketing did
Education and the Department
School, who was on the National
successfully several decades ago.
for Business, Innovation and
Sales Board, comments: “I fear
About £40 million was his answer.
Skills. On business studies
that other countries are
“That may seem a large sum but not when set against possibly a million customer-facing staff generating more than a trillion
courses, such as A levels, selling is rarely mentioned as part of the curriculum, despite the government’s own surveys,
going to overtake the UK on sales skills. It will not come as a surprise to anyone that sales education is currently booming
pounds worth of business year
by yet another body, the UK
in the US, because business
— but presently the government
Commission for Employment
sponsors of higher education
ranks selling lower than
and Skills, showing that sales
want sales-ready graduates.
hairdressing in its priorities.”
and customer service are among
What there appears to be — and which is a common government failing — is a lack of ‘joined-up’ thinking, such that initiatives started a few years ago tail off, and different departments have a fragmented piece of the action, such as it is. A good example is the position of business studies
the skills most lacking in the workforce and are also among the jobs with high vacancy rates. There are more young people taking up sales apprenticeships now, but relatively few compared with other subjects such as business administration. A few bright spots are in some
“What may be more of a wake-up call for the UK is the performance of Finland, where the government encourages sales education because new companies in their small local market have to go global very quickly. In a developed economy you don’t get to grow fast internationally by being cheaper at anything,
9 / www.nzsalesmanager.co.nz
MUST READ
you get it by knowing how to
government quite rightly pays
jobs and careers — “There just
grow your revenue by being
attention to legislating against
aren’t many jobs for forensic
smarter and better at creating
bad selling, but policymakers
scientist for kids who’ve been
value for customers with very
should consider how important
watching CSI Miami — but about
different needs.”
it is to encourage good selling in
10% of jobs in the UK are in
its place.”
sales.” He agrees that selling
report for sales commissioned by
Rogers was one of a group of
has been largely written out of
the government in 2008 revealed
sales activists invited to a House
business studies courses, and it is
huge gaps in the sales skills
of Commons roundtable recently
a particular problem for his remit
needed by employers, and post-
by Toby Perkins, shadow minister
— small businesses — which tend
for small businesses, and the
to lack the resources to train
ISMM, to discuss sales skills
their own people and must rely
and qualifications as part of the
on the market. More joined-up
campaign. Perkins is a rare MP
work between education and
Adds Rogers: “The labour market
recession, in 2012, the latest report for sales shows the same
— he has a sales background —
“It’s not about a particular sales methodology but about salespeople understanding that there is a range of approaches that can be applied to their profession.”
and is firmly behind the push for raising the bar for the profession.
business, helped by government, is certainly needed, says Perkins, noting that apprenticeships
“I went into telephone sales
are not being pushed enough,
straight from school, was in IT
and ideas such as more
sales for seven years and in sales
businesspeople on school
and sales management roles in
governing bodies are among
the recruitment industry,” says Perkins, who adds that he was
those he is investigating.
initially placed with an employer
Overall, Perkins sees the
by a specialist sales training firm,
application of standards as
as companies such as Pareto Law
charting an ethical framework
do today. He has also run his own
for a very large range of
company, Club Rugby, a rugby
professionals, from junior level
kit distributor.
out of school, as he was, up to
Perkins sees a big gap in what
those earning a lot at the top of
he terms ‘enterprise skills’ at
their careers in sales and sales
all levels, and would like to see
management. “There should be
much more emphasis on such
a supportive role for government
skills in education and work
and after the initial roundtable I
experience. He points out that
will be learning more about good
publicity is needed to ensure they
students often have completely
practice and what the landscape
are leveraged by UK plc. The
unrealistic expectations about
looks like around the country.”
problem persists. We have worldclass occupational standards for sales, but more
This article provided by ISMM, and first appeared in the January issue of ‘Winning Edge’. To find our more visit www.ismm.co.uk
www.nzsalesmanager.co.nz / 10
Putting the U in your USP How to develop your unique selling point
T
By Heather Grace Smith
he phrase Unique Selling Proposition (USP)
BUT IS HIS CONCEPT STILL RELEVANT TODAY?
was coined in the 1940’s by Rosser Reeves of
We can all get put off by jargon, but whatever
Ted Bates and Company. Reeves was a smart
man for the times, he also came up with the slogan
you call it, a USP is still the single most important
“melt in your mouth and not in your hands” amongst
marketing element in your repertoire. Don’t let the
other hugely successful advertising campaigns.
old school language put you off. It’s very much 11 / www.nzsalesmanager.co.nz
the right school of thought, as
‘great customer service’ is not a
can turn their mistakes on their
relevant now as then, and it will
point of difference – everyone
head and reframe it as a positive
be long into the future.
claims that. So you need to
proposition for your customers.
Reeves broke his concept
find out what is unique about
of USP down into three
your business and that means
separate components:
researching your competition to
•
•
The proposition must be
step – understand your customers’ and the problems they’re having or trying to solve.
unique (not shared by the
Difference isn’t enough though.
If you can solve their problem,
competition).
To have a true USP, that point
you’ll make a connection.
The proposition must be strong enough to have mass appeal.
•
discover what you do differently.
That brings me to the second
The proposition must clearly specifically explain the benefit to the purchaser.
of difference has to offer real benefits to your customer. What’s changed between the 1940’s and now is that many companies have more than one product or service – so you need to be thinking about the USPs for each
IS IT REALLY THAT EASY?
of them. Aiming for a one-size
Well, it’s not easy for most people
fits all approach from the get-go
to define their USP; it takes a bit
tends to water down your USP.
of work. But a good USP makes
It’s better to start with the detail.
it really easy for a customer to
SO HOW DO YOU COME UP
recognise and resonate with your
WITH A GOOD USP?
business’ offering so it’s well worth the effort you put in.
Thirdly, you need to believe in yourself, give your customer evidence and assurance; guarantee your promises. Guarantees help you achieve mass appeal – look at Bunnings for example. Finally, you have to understand your target markets and get the details right for them. If you’re selling an anti-aging as well as an anti-acne skin care regime, you can’t expect your different
There are four key steps that will
audiences to buy from one
help. Firstly, understand what
single message. Put time into
WHAT MAKES A GOOD USP
your competition does badly;
developing the USP for every part
IN 2013?
never bag the competition,
of your market. From there you’ll
A good place to start is your
but do get to know where you
find the overarching truth for your
point of difference. For example,
perform better. That way, you
proposition as a whole.
www.nzsalesmanager.co.nz / 12
It can seem daunting to come up with a USP but talk
team being able to explain it readily and easily. If
to the people who know; your team, your clients,
you need help to achieve that, get the help you
and importantly get external advice. Turn features
need because when you get it right, it’s meaningful
into benefits and check your assumptions –
to the right people and it works. By the way, don’t
IS THAT BENEFIT REALLY RELEVANT TO YOUR
forget to update your USP from time to time as your
TARGET AUDIENCE? DO THEY REALLY CARE?
business evolves, it important you stay relevant to
A single competitive advantage does not always
your target market.
mean a strong USP but combining them can. So if
At The Marketing Company we say ‘make more
you look at your top four competitors, chances are
money in your business’ because our courses are
you’ll find a number of elements that you do better
designed to give you the best value in the least
than each one of them. That’s where you’ll find your
time, we help you with access to funding for our
USP, by combining the special things you do so that
training while we deliver measurably increased
no other competitor can match it all.
expertise, we offer a guarantee on your spend with
Once you have the detail, your USP needs to be
us and we allow you to select the courses you most
succinct and visible at every point of contact; from
require. Other companies offer some of that, but we
websites and packaging, to every member of your
offer it all – that’s what gives us our USP.
Find your USP DISCOVER
What do you do better than your competition? Where do they fall down? Don’t make the story about them, turn it on its head and make the story about what you do well.
COMMUNICATE
Understand your customers. What problems are they trying to solve? Find a solution and check it works for them. Then you can make a connection.
PROMISE
Believe in your promises and assure your clients. Give them a standard that you won’t fail to meet. Be accountable and be up front.
TAILOR
Understand your proposition’s appeal for each target market and tailor your approach, messages and solutions for their real needs. Your overarching USP will come from your groundwork with the detail.
For more information or guidance, contact Heather Grace Smith at The Marketing Company. To find out more visit www.themarketingcompany.co.nz
13 / www.nzsalesmanager.co.nz
2 Minute top-up
Measure what gets results Actions not dollars By Richard Gee
M
any sales managers and business owners
week, you should be measuring activity. For
get it wrong when they measure sales
example measure the face to face calls per day
force results.
over a week, then measure the effectiveness of the
They measure money earned, instead of actions that
calls by how many became sales or quotes. This
need to be taken to achieve the revenue budgets.
demonstrates that the sales person is using the
Rather than only measuring sales in dollars per
employable skills they have.
www.nzsalesmanager.co.nz / 14
A good measureable target is four face to face calls per day for five days. Twenty calls in the week will generate quotes and follows ups into business. Similarly customer service teams might make 10 calls per hour to targeted customers and achieve measurable results of appointments made for the sales representatives. Measure the Support Maybe numbers of actions, and you will get your this sales team by the dollars to happen. measure will
sharing the numbers
show they need training to get better results, but it really
at sales meetings and get them to share their success and wins
goes to the heart of the performance. Poor sales
from their measured activity, and encourage each
are always the result of poor face to face activity. If
other to practise their sales skills more often.
you don’t get in front of the customer and identify problems to solve, then you don’t get sales. Evidence or excuses of emails and phone calls being done are things that should not be measured, they are tools of the job, just like the presentation tools of the laptop or i-pad. A good measureable target is four face to face calls per day for five days. Twenty calls in the week will generate quotes and follows ups into business. Similarly customer service teams might make 10 calls per hour to targeted customers and achieve measurable results of appointments made for the sales representatives. Measure the numbers of actions, and you will get the dollars to happen.
It is a New Zealand statistic that sales reps only spend 2.5 hours per day in front of customers selling to them. Ask yourself what they are spending the rest of the time doing. Is it driving or admin, or is it time wasting stuff. You employed the sales rep to sell, not spend 75 per cent of their time doing other stuff that does not earn revenue. Measuring the correct actions makes it easier to manage the performance and there will be no dispute of actions. It is black and white - calls done, quotes done, follow up done, sales made. Focus your sales team on what really matters and what will be measured, not on uncontrollable stuff. It really does work.
Richard Gee is the author of NZ Sales Management – a practical approach, Practical Marketing in NZ, and other books, plus is an International Speaker and sales trainer. To find out more visit www.geewiz.co.nz
15 / www.nzsalesmanager.co.nz
Resource CorneR
To Sell is Human
The surprising truth about persuading, convincing and influencing others
Authors: Daniel Pink Publisher: Canongate Books Ltd. Price: $20.99 from www.fishpond.co.nz
W
e’re all in Sales now. Each day millions
their partners on mowing the lawn or putting the cat
of people earn their keep by convincing
out. We sell our bosses on giving us more money
someone else to make a purchase.
and more time off. And in astonishing numbers we
They sell planes to airlines, oil shares to sheiks,
go online to sell ourselves on Facebook, Twitter and
cars to drivers. They sell consulting agreements,
in Match.com profiles. In this new book from the
magazine subscriptions, time-shares, double glazing,
bestselling author of Drive, Dan Pink explores the
broadband, fitted kitchens, car insurance, life
ways in which we can all improve our sales skills,
insurance, pet insurance! Some work in fancy offices
in every area of our lives and identifies the three
with glorious views, others in dreary cubicles, but
personal qualities and four essential skills necessary
most look exactly like you. In fact, each and every
to move people. Relying on science rather than
one of us spends time trying to persuade others to
platitudes and analysis instead of exhortation, Dan
part with resources - money, time, attention - though
builds on his own sales experience and on the profiles
most of the time we don’t realise we’re doing it.
of some of the world’s best salespeople - and makes
Parents sell their kids on going to bed. Spouses sell
us look again at our own sales skills.
www.nzsalesmanager.co.nz / 16
Resource CorneR
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QUICK FIX
it’s not what you sell, it’s how you sell.
Focus your prospecting
Y
ou know if your sales
thinking that you target your
and consider the reasons why,
role demands that
prospecting at SME’s, that is
when and how they became your
you prospect for new
most of NZ’s business. You will
customers, and have remained
business, and if so, then the quality
be wasting your time on most
your customers.
of your prospecting will determine
of them.
your sales success. But how do you act on this and ensure your time is well spent? What does quality prospecting look like? Can you write down the characteristics of a good prospect? If you are sitting there
www.nzsalesmanager.co.nz / 18
Take time find the specific things that are common to your quality prospects. If you are not sure, look at your existing customers
Now go and focus your prospecting.
19 / www.nzsalesmanager.co.nz
CALENDAR DATE
NAME
PLACE
COMPANY LINK
Tuesday 2th April
Cold Calling and Prospecting
Auckland
Top Achievers Sales Training
www.topachieverssalestraining.co.nz
Wednesday 3th April
Winning through Powerful Presentations
Auckland
Shipley NZ
http://www.shipleywins.co.nz/publictraining-schedule.html
Monday 8th April
Winning Executive Summaries
Auckland
Shipley NZ
http://www.shipleywins.co.nz/publictraining-schedule.html
Monday 8th April -
The Sales Process
Wellington
Bright*Star Training
http://www.brightstar.co.nz/training/ sales-process
Wednesday 10th April
Customer Focused Writing
Christchurch
Shipley NZ
http://www.shipleywins.co.nz/publictraining-schedule.html
Wednesday 10th April -
Advanced Selling
Wellington
Bright*Star Training
http://www.brightstar.co.nz/training/ advanced-selling
Advanced Sales Development
Auckland
David Forman
www.davidforman.co.nz
Thursday 11th April Thursday 11th April
Social Media and Sales
Auckland
Top Achievers Sales Training
www.topachieverssalestraining.co.nz
Thursday 11th April
Professional Relationship Selling
Tauranga
The Marketing Company
http://events.themarketingcompany. co.nz/courses/3-professionalrelationship-selling
Monday 15th April -
Sales Negotiation for Results
Wellington
Tuesday 16th April
Bright*Star Training
http://www.brightstar.co.nz/training/ sales-negotiation-results
Tuesday 16th April
Sales Basics
Auckland
Geewiz
http://www.geewiz.co.nz
Tuesday 16th April
Prospecting & Gold
Auckland
The Marketing Company
http://events.themarketingcompany. co.nz/courses/21-prospecting-goldcalling
Tuesday 9th April
Thursday 11th April Wednesday 10th April -
Calling Wednesday 17th April
Sales Management
Auckland
Geewiz
http://www.geewiz.co.nz
Tuesday 16th April -
Scotwork Advancing
Auckland
Thursday 18th April
Negotiating Skills
Scotwork Negotiating Skills NZ
http://www.brightstar.co.nz/training/ sales-process
Thursday 18th April
Key Account
New Plymouth
The Marketing
Management
http://events.themarketingcompany. co.nz/courses/23-key-accountmanagement
Sales Training Course
Christchurch
Top Achievers Sales Training
Thursday 25th April
www.nzsalesmanager.co.nz / 20
Company
www.topachieverssalestraining.co.nz
THE CLOSE
“Your most unhappy customers are your greatest source of learning.” - Bill Gates
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21 21 // www.nzsalesmanager.co.nz www.nzsalesmanager.co.nz