ch2 personal selling
TRANSCRIPT
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SDM-Ch.2 1
Personal Selling:
Preparation and Process
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SDM-Ch.2 2
Learning Objectives
To understand psychology in selling, buyingdecision process and buying situations
To learn communication skills, sales knowledge,
and sales related marketing policies To understand personal selling process
To learn about negotiation
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SDM-Ch.2 3
Psychology in Selling
If a sales person makes a presentation, theprospect may or may not buy
The above buyerbehaviour model does not tellus the reasons of buying or not buying
To understand the psychological aspects of
selling or buying, salespeople should studyconsumer or buyer behaviour, including buyingprocess and situations
Stimulus(Sales Presentation)
Response(buy or no buy)
Buyers decision
making process
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SDM-Ch.2 4
Buying Process of Consumers and Business Buyers
Fivestage model for household
customersEightstage model for business
buyers
1. Problem / need recognition 1. Problem / need recognition
2. Characteristics and quantity
determination
3. Specification development2. Information search / collection 4. Supplier search and qualification
5. Obtain and analyse supplier
proposals
3. Evaluate alternatives 6. Evaluation and selection of
suppliers4. Purchase decision 7. Selection of purchase order routine
5. Postpurchase behaviour 8. Performance feedback and post-
purchase evaluation
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SDM-Ch.2 5
Buying Situations Faced By
Household customers Business Buyers
Routine decision-making New task / New purchase
Limited decision-making Modified rebuy / change in
supplier Extensive decision-making Straight rebuy / Repeat purchase
Buying process and situations differ for household
consumers and business buyers. Consumers / Buyers may skip or reverse some stages inbuying process. E.G. A consumer buying toothpaste
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SDM-Ch.2 6
Knowledge of Sales and Sales-relatedMarketing Policies
Sales Knowledge Marketing Policies
Company knowledge Pricing and Payment policies
Product knowledge Product policies
Customer knowledge Distribution policies
Competitor knowledge Promotional policies
Major reasons for giving above information / knowledgethrough training programmes to salespeople are:
increase their self-confidence Meet customers expectations Increase sales Overcome competition
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SDM-Ch.2 7
The Sales Process
As a part of selling activities, if salespeople follow the stepsor phases shown below, their chances of success are far
better.
Prospecting &Qualifying
Preapproach /Precall planning
ApproachPresentation &Demonstration
Follow-up &Service
Trail close /Closing the sale
OvercomingObjections
The sequence of above steps may change to meet thesales situation in hand.
Some of the above steps may not be applicable for sellingto the trade
We now discuss application of above steps to industrialselling
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SDM-Ch.2 8
Prospecting It is identifying or finding prospects i.e. prospective or
potential customers.Methods of prospecting or sales lead generation are:(1) referrals from existing customers, (2) company sources(website, ads., tradeshow, teleprospecting), (3) externalsources (suppliers, intermediaries, trade associations), (4)
salespersons networking, (5) industrial directories, (6) coldcanvassing
Qualifying
Companies qualify sales leads by contacting them by mailor phone to find their interests (or needs) and financialcapacity.
Leads are categorized as: Hot, Warm, and Cool
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SDM-Ch.2 9
Preapproach
Information gathering about the prospect.
Sources of information: the Internet, industrialdirectories, government publications,intermediaries, etc.
Precall planning Setting call objectives
Tentative planning of sales strategy: which
products, features and benefits may meet thecustomer needs
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SDM-Ch.2 10
Approach
Make an appointment to meet the prospect
Make favourable first impression
Select an approach technique:
Introductory
Customer benefit
Product
Question
Praise
The approach takes a few minutes of a call,but it can make or break a sale
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SDM-Ch.2 11
Presentation and Demonstration
There are four components:
Understanding the buyers needs
Knowing sales presentation methods / strategies
Developing an effective presentation
Using demonstration as a tool for selling
We will examine each of the above points
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SDM-Ch.2 12
Understanding the buyers needs
Firms and consumers buy products / services to
satisfy needs To understand buyers needs, ask questions andlisten
In business situations, problem identification and
impact questions are importantE.G.
Have you experienced any problems on qualityand delivery from the existing supplies?
What impact the quality and delivery problemswill have on your costs and customer satisfaction?
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SDM-Ch.2 13
Knowing Sales Presentation Methods/Strategies
Firms have developed different methods / styles / strategies ofsales presentation
Stimulus response method / canned approach. It is a memorised sales talk or a prepared sales presentation.
The sales person talks without knowing the prospects needs.E.G. Used by tele-marketing people
Formula method / formulated approach.
It is also based on stimulus response thinking that allprospects are similar.
The salesperson uses a standard formula AIDA (attention,interest, desire, and action).
It is used if time is short and prospects are similar.
Shortcomings are: prospects needs are not uncovered anduses same standard formula for different prospects.
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SDM-Ch.2 14
Sales Presentation Methods (Continued)
Need satisfaction method Interactive sales presentation First find prospects needs, by asking questions and
listening
Use FAB approach: Features, Advantages, Benefits Effective method, as it focuses on customers
Consultative selling method / Problem-solvingapproach
Salespeople use cross-functional expertise Firms adopt team selling approach It is used by software / consulting firms
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SDM-Ch.2 15
Developing an Effective Presentation
Some of the guidelines are:
Plan the sales call Adopt presentation to the situation and person
Communicate the benefits of the purchase
Present relevant and limited information at atime
Use the prospects language
Make the presentation convincing give
evidence Use technology like multi-media presentation
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SDM-Ch.2 16
Using Demonstration
Sales presentation can be improved bydemonstration
Demonstration is one of the important sellingtools EGs: Test drive of cars; demonstration of
industrial products in use Benefits of using demonstration for selling are:
Buyers objections are cleared
Improves the buyers purchasing interest Helps to find specific benefits of the prospect
The prospect can experience the benefit
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SDM-Ch.2 17
Overcoming Sales Objections / Resistances
Objections take place during presentations /
when the order is asked Two types of sales objections:
Psychological / hidden
Logical (real or practical) Methods for handling and overcoming
objections: (a) ask questions, (b) turn anobjection into a benefit, (c) deny objectionstactfully, (d) third-party certificate, (e)
compensation
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SDM-Ch.2 18
Trial close and Closing the sale
Trial close checks the attitude or opinion of theprospect, before closing the sale (or asking forthe order)
If the response to trial close question is
favourable, then the salesperson should closethe sale
Some of the techniques used for closing thesale are: (a) alternative-choice, (b) minor points,(c) assumptive, (d) summary-of-benefits, (e) T-account, (f) special-offer, (g) probability, and (h)negotiation
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SDM-Ch.2 19
Follow-up and Service
Necessary for customer satisfaction
Successful salespeople follow-up in differentways: For example,
Check order details
Follow through delivery schedule
Visit when the product is delivered
Build long-term relationship
Arrange warranty service
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SDM-Ch.2 20
Negotiation
Salespeople, particularly in business to business selling,
need negotiating skills When to negotiate?
(a) When the buyer puts certain conditions for buying tothe seller, (b) When agreement between the buyer and
the seller is needed on several factors, (c) When theproduct is customised, (d) When the final price is to bedecided
How to prepare for negotiation?
(a) planning, (b) building relationship, (c) purpose Styles of negotiation
(a) I win, you lose, (b) Both of us win (or win-win style),(c) You win, I lose, and (d) Both of us lose
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SDM-Ch.2 21
Key Learnings
For understanding psychology in selling, studyconsumer or buyer behaviour, buying process andsituations
Salespeople are given knowledge of sales and relevantmarketing policies in order to increase their self-confidence and sales, and meet customers
expectations
Typical steps in the sales process include prospectingand qualifying, preapproach, approach, presentationand demonstration, overcoming objections, trial close /
closing the sale, follow-up and service Salespeople should know when to negotiate, how to
prepare for negotiation and which style of negotiation touse