02. personal selling · personal selling is an ancient art. it is also a scientific process because...

02. PERSONAL SELLING

Personal Selling is the art of face-to face or other interaction with one or more prospective purchasers for

the purpose of making presentations, answering questions and procuring orders.

Personal selling is a personal (face-to-face, telephone, or Internet chat) presentation for the purpose of

making sales and building relationships.

Personal selling is an ancient art. It is also a scientific process because there are clear cut and well defined

steps which, if followed sincerely and meticulously, would lead to a sale. Effective salespersons have

more than instincts; they are trained in methods of analysis and customer management.

Three major aspects of personal selling are: Professionalism, Negotiation and Relationship Marketing.

Professionalism: Today’s companies spend a lot of money to train sales people in the art of selling. All

sales-training approaches try to convert a sales person from a passive order taker into an active order

getter. Most sales-training programs agree on the following steps involved in any effective sales process.

Negotiation: Much business to business selling involves negotiating skills. The two parties need to reach

agreement on the price and the other terms of sale. Sales persons need to win the order without making

deep concessions that will hurt profitability. Although Price is the most frequently negotiated issue, other

issues include Contract Completion Time; Quality of Goods and Services Offered;, Purchase Volume;

Responsibility of Financing, Risk Taking, Promotion and Title; & Product Safety.

Relationship Marketing: The principles of Personal Selling and Negotiation are transaction oriented

because there purpose is to close a specific sale. But, in many cases, the company is not seeking an

immediate sale but rather to build a long-term supplier-customer relationship. Many companies today are

moving their emphasis from transaction marketing to relationship marketing.

Relationship marketing is based on the premise that that important customers need focused and

continuous attention. Sales people working with key customers must do more than call when they think

customers might be ready to place orders. They should call or visit at other times, take customers to

dinner and make useful suggestions about their business. They should monitor key customers, know their

problems and be ready to serve them in a number of ways.

When a relationship management program is properly implemented, the organization will begin to focus

as much on managing its customers as on managing its products.

PERSONAL-SELLING SITUATIONS

Considerable diversity exists among personal selling situations. Different sales positions require different

amounts and kinds of service and developmental selling. Service selling aims to obtain sales from

existing customers whose habits and patterns of thought are already conductive to such sales.

Developmental selling aims to convert prospects into customers. Developmental selling seeks to create

customers out of people who do not currently view the salesperson’s company favourably, and who likely

are resistant to changing present sources of supply.

The job of a salesperson ranges from order takers to order getters. An order taker interacts with customers placing

an order. Order takers include most retail sales workers. These job titles include: Cashiers, Counter and rental

clerks, Insurance agents and brokers, Manufacturers' and wholesale sales representatives, Real estate agents,

brokers, and appraisers, Retail sales workers, Securities and financial services sales representatives, Services sales

representatives. An order getter engages in creative selling of products and is responsible for the entire ordering

and relationship-building process. Order takers include sales representatives. Many of those working directly for

manufacturers are referred to as manufacturers' representatives and those employed by wholesalers generally are

called sales representatives. In addition to those employed directly by firms, manufacturers' agents are self-

employed sales workers who contract their services to all types of companies. Those selling technical products, for

both manufacturers and wholesalers, are usually called industrial sales workers or sales engineers. Many of these

titles, however, are used interchangeably.

1. Prospecting and Qualifying

2. Pre-Approach & Approach

3. Presentation and Demonstration

4.Overcoming Objections

5. Closing

6. Follow-Up and Maintenance

MM403 Sales & Distribution Management Chapters 02. Personal Selling of 13

McMurry and Arnold classify sales positions on a spectrum ranging from the very simple to the highly

complex. They categorize sales positions into three mutually exclusive groups each containing

subgroups, a total of nine subgroups in all. The easiest sales are self-service sales: customers know their

needs, know the products capable of satisfying these needs, sell themselves, and go through the checkout

line. The most difficult sales require developmental selling and creativity – where the sales must

sometimes be made on something other than the product’s merit, or multiple sales are necessary to get the

order, and where continual effort is required to keep the account.

Personal Selling Situations or Sales Positions

GroupA (Service Selling)

1. Inside Order Taker ‘waits on’ customers

2. Delivery Salesperson engages in delivering the product

3. Route or Merchandising Salesperson operates as an order taker but works in the field

4. Missionary Salesperson aims only to build goodwill or to educate users, and is not expected to take

order

5. Technical Salesperson emphasizes technical knowledge

GroupB (Developmental Selling)

6. Creative Salesperson of Tangibles aims to convert prospects into customers of tangible goods

7. Creative Salesperson of Intangibles aims to convert prospects into customers of intangible goods

GroupC (Developmental Selling Requiring Unusual Creativity)

8. ‘Political’, ‘Indirect’ or ‘Backdoor’

Salesperson

sales are consummated through rendering highly personalized services

which have little or no connection with the product

9. Salesperson Engaged in Multiple

Sales

salesperson must make presentations to several individuals in the customers

organisation

BUYER-SELLER DYADS

Sociologists use the term ‘dyad’ to describe a situation in which two people interact.. Fundamental to

understanding salesmanship is recognition that it involves buyer-seller interactions. The salesperson and

the prospect, interacting with each other, constitute one example of a ‘buyer-seller dyad’. Another is the

interaction of a seller using advertising with a particular prospect in the reading, listening or viewing

audience. In both advertising and personal selling, the seller seeks to motivate the prospective buyer to

behave favourably toward the seller. Whether or not the buyer reacts as the seller desires depends upon

the nature of the interaction. The opportunity for interaction is less in the advertising case than in

personal selling. However, advertising and personal selling often supplement or support each other, and

the buyer reacts to their combined impact.

Franklin Evans researched buyer-seller dyads in the life insurance business. Evans’s findings have

significance for sales management. Whenever possible, sales personnel should be assigned to prospects

whose characteristics are similar to their own, thus improving the chance of successful dyadic

relationships. Henry Tosi studied dyads of wholesale drug salespeople and retail pharmacists who made

buying decisions. Tosi concluded that, in addition to the physical characteristics and personality and

objective factors cited by Evans, the customer’s perception of what that behavior should be is a necessary

condition for the continuation of dyadic interactions.

Another factor influencing buyer-seller dyadic interactions is the buyer’s initial conditioning with respect

to selling. People are taught from childhood to beware of the tricky salesperson.

The following figure is a conceptual model of salesperson-buyer dyadic relationship. This model,

developed after an extensive literature survey, views the sales process as being influenced by both

salesperson and the buyer and each in turn being influenced by personal characteristics and role

requirements. Personal characteristics include personality, values, attitudes, past experiences etc. Role set

requirements include formal authority and organizational autonomy. Role set requirements interact with

personal characteristics to shape needs and expectations.


The salesperson and the buyer are each considered as focal persons. The focal person’s perceptions of

each other’s needs may lead to adjustments of their own. Based on individual needs and expectations,

each focal person develops a strategy aimed to negotiate a favourable exchange. If the strategies are

compatible, an exchange takes place. Otherwise, either or both may adapt by altering strategies,

attempting to adjust needs and expectations or modifying role requirements. In extreme cases, where in

spite of adjusting the strategies do not match, the salesperson and the buyer may stop interacting.

THEORIES OF SELLING

The fact that selling is considered an art by some and a science by others has produced two contrasting

approaches to the theory of selling. In this section we examine four theories. The first two, the ‘AIDAS’

theory and the ‘right set of circumstances’ theory, are seller oriented. The third, the ‘buying formula’

theory of selling, is buyer oriented. The fourth, the ‘behavioural equation’ theory, emphasizes the buyer’s

decision process but also takes the salesperson’s influence process into account.

AIDAS Theory of Selling

This theory – popularly known as the AIDAS theory – is the basis for many sales and advertising texts

and is the skeleton around which many sales training programs are organized. According to this theory,

during any successful sales presentation, the prospect’s mind passes through five successive mental

states: attention, interest, desire, action and satisfaction. The prospect goes through these five stages

consciously, so the sales presentation must lead the prospect through them in the right sequence if a sale

is to result. The salesperson follows the AIDAS formula of gaining attention, holding interest, arousing

desire, obtaining action and building satisfaction.

Feedback Feedback

Customer Salesperson

Start Salesperson-Customer

Relationship

Exchange

Personal

Affiliation

Choice of Strategy

Needs and Expectations

Personal

Characteristics

Role Requirements

& Characteristics

Choice of Strategy

Needs and Expectations

Personal

Characteristics

Role Requirements

& Characteristics

Negotiation

Adapt Adapt

Adjustment

Stop

Experience Experience

Model of Buyer-Seller Dyadic Relationships


Securing Attention: The goal is to put the prospect in a receptive state of mind. The prospect’s guard is

naturally up, since he realizes that the caller is bent on selling something. A salesperson must possess

considerable mental alertness, and be a skilled conversationalist, to survive the start of the interview

(presentation). He needs an ample supply of conversation openers in order to establish good rapport. A

good conversation opener causes the prospect to relax and sets the stage for the total presentation.

Gaining Interest: The goal is to intensify the prospect’s attention so that it evolves into strong interest.

Throughout the interest phase, the hope is to search out the selling appeal that is most likely to be

effective. Salespersons do considerable probing, usually of the question-and-answer variety, in order to

identify the strongest appeal. The prospect’s interests are affected by their mood, motivation levels,

closeness of the subject to current problems, and the timeliness of the subject being presented – and the

salesperson must take all of these into account in selecting the appeal to emphasize.

Kindling Desire: The goal is to kindle or stimulate the prospect’s desire to the ready-to-buy point. The

salesperson must keep the conversation running along the main line toward the sale. The salesperson

should always try to link the features and attributes of the product with the customer needs so that the gap

and level of customer objection can be reduced in the subsequent stages. Obstacles need answering to the

prospect’s satisfaction. Obstacles need to be identified and ways found to get around them. Chances of

making a sale improve if objections are anticipated and answered before the prospect raises them.

Inducing Action: The goal is to induce the prospect to act – that is, to buy. If the presentation has been

perfect, the prospect is ready to buy. However buying is not automatic and must be induced. It is up to

the salesperson to sense when the time is right. The trial close and other different closing techniques are

used to test the prospect’s reactions. The desired action is to make the prospect give consent for the sale,

sign on the dotted lines of the order pad, and pay for the good or service that was being showed to him.

Building Satisfaction: The goal is to reassure the customer that the decision was correct. Most human

beings tend to love buying but hate to be sold to. The customer should be left with the impression that the

act of buying was his decision and that the salesperson merely helped in the deciding process. Building

satisfaction includes thanking the customer for the order and following up on promises made during the

presentation. It also includes building up a long term relation with the prospect.

‘Right Set of Circumstances’ Theory of Selling

This theory, sometimes called the ‘situation-response’ theory may be summed up by the statement

“Everything was right for that sale”. It holds that the particular circumstances prevailing in a given selling

situation cause the prospect to respond in a predictable way. If the salesperson succeeds in securing the

attention and gaining the interest of the prospect, and if he presents the proper stimuli or appeals, the

desired response, that is the sale, will result. The more skilled the salesperson is in handling the set of

circumstances, the more predictable is the response. This is a seller-oriented theory: it stresses the

importance of the salesperson controlling the situation. It does not handle the problem of influencing

factors internal to the prospect, and fails to assign appropriate weight to the response side of the situation-

response interaction.

‘Buying Formula’ Theory of Selling

This theory emphasizes the buyer side of the buyer-seller dyad. The buyer’s needs or problems receive

major attention, and the salesperson’s role is to help the buyer find solutions. Reduced to their simplest

elements, the mental processes involved in a purchase are: need (or problem) → solution → purchase.

Since nearly all sales organisations are interested in continuing relationships, it is necessary to add a

fourth element: need (or problem) → solution → purchase → satisfaction.

Whenever a need is felt, or a problem recognized, the individual is conscious of a deficiency of

satisfaction. The solution will be a product or service or both, and they will belong to a potential seller. In

purchasing, then, the element ‘solution’ involves two parts: 1. product and/or service and 2. trade name

(name of manufacturer or company). In buying anything, the purchaser proceeds mentally from need or

problem, to product or service, to trade name, to purchase, and, upon using the product or service,

experiences satisfaction or dissatisfaction. To ensure purchase, the product or service as well as the trade

name must be considered adequate, and the buyer must experience a pleasant feeling of anticipated

satisfaction when thinking of the product/service and the trade name. The buying formula, therefore, is:

Adequacy

need (or problem) → product/service and/or trade name → purchase → satisfaction/dissatisfaction

Pleasant feelings


‘Behavioural Equation’ Theory

Using a stimulus-response model, and incorporating findings from behavioural research, J.A. Howard

explains buying behaviour in terms of purchasing decision process, viewed as phases of the learning

process. Four essential elements of the learning process included in the stimulus-response model are:

1. Drives: Strong internal stimuli that impel the buyer’s response. They could be innate drives

(physiological needs) as well as learned drives.

2. Cues: Weak stimuli that determine when the buyer will respond.

3. Response: what the buyer does.

4. Reinforcement: Any event that strengthens the buyer’s tendency to make a particular response.

Howard incorporates these four elements into an equation:

B = P x D x K x V

where,

B = response or the internal response tendency

P = predisposition, force of habit

D = drive level (amount of motivation)

K = incentive potential (potential satisfaction to the buyer)

V = intensity of all cues

SCIENTIFIC SELLING PROCESS

Most sales-training programs agree on the following steps involved in any effective sales process.

Pre-Sale Preparation

Some authors feel this should precede every other step and be considered as the first step of the scientific

selling process. Others, who consider ‘Prospecting’ as the first step, prefer to club this step as a part of

‘Pre-Approach’. In a planned scientific process, any sale is preceded by the pre-sale planning.

In this stage, the salesperson prepares himself with adequate knowledge about the product he will sell, the

company he will represent, the market in which he will sell, the competitor products and prices, the

categories of customers or segments he will target, and the various selling techniques he will apply

during the sale. Pre-sale preparation helps the salesperson to present a much credible picture to the

customer. A salesperson with adequate knowledge about the industry, the technology involved in making

the product, and the target segment of each customer is well placed to provide valuable information to the

customers so that they can make an informed decision.

The salespersons knowledge universe should, among many things, include:

Product knowledge: Features, Benefits, Styles, Price etc.

Company knowledge: History, Management, Policies & Procedures etc.

Competitors’ knowledge: Industry structure, Market share, Market behaviour etc.

Prospecting and Qualifying

The most important step in selling is to identify and qualify prospects. Prospecting and qualifying is the

process of identifying potential buyers who have a need for the products and services offered by the

company, the ability to pay for it and the adequate authority to buy it. A prospect list or pool, which

consists of a group of names, gathered from various sources like a telephone directory or mailing list etc.,

needs to be created. Identifying prospects is also referred to as lead generation and prospects are referred

to as leads. Qualified prospects are also known as potential or prospective customers.

Prospecting can be done by the salesperson himself or by the company where he is employed. More and

more companies are taking up this responsibility for finding and qualifying leads so that the salespeople

can concentrate on the actual selling.

1. Prospecting and Qualifying

2. Pre-Approach & Approach

3. Presentation and Demonstration

4. Overcoming Objections

5. Closing

6. Follow-Up and Maintenance


Steps in Prospecting

1. Formulating prospect definition: Prospect definition is dependent upon the nature and type of

product. Different product categories may have different prospect definitions. A person who has the

need for a particular type of product satisfies the definition of a prospect for that product.

2. Searching out potential accounts: Using the prospect definitions, the salesperson combs different

sources for the names of probable prospects. There are several conventional and non-conventional

sources of prospecting and every salesperson innovates over these existing sources.

3. Qualifying prospects and determining probable requirements: Prospective customers must have

the willingness, the financial capacity, and the authority to buy and they must be available to the sales

person. The leads are qualified by contacting them over mail or phone. Their level of interest and

financial capacity is assessed. As information is assembled on each tentative prospect, it is easier to

estimate the probable requirements of each for the types of products sold by the company.

4. Relating company products to each prospect’s requirements: From the information assembled, it

is usually possible to determine each prospect’s probable needs. From what the salesperson knows

about the company’s products, their uses, and applications, he now selects those that seem most

appropriate for a particular prospect.

Sources of Prospecting

A salesperson combs different sources for the names of probable prospects. There are numerous sources

from which a prospect list may be created. Salespeople follow various methods of prospecting. Some of

these methods are discussed below:

1. Friends, Relations and Acquaintances: This is, probably, the most fertile source for those who have

newly entered the selling field. These are the people whom the salesperson knows. They, in turn,

know many other people.

2. Referrals – Endless Chain: A referral is a prospect recommended by an existing customer or

acquaintance who is familiar with the product. It is easy to get an appointment and to sell to a referral.

3. Cold Calling: It is an approach in which the salesperson goes from door to door and tries to find out

the prospects. Cold calling is calling on a group of strangers who may or may not be prospects. This

method is the only alternative when referrals are difficult to come.

4. Observation: In this method the salesperson looks around for the types of prospects that he requires.

E.g. EPBAX sellers look for construction sites & newly coming up office spaces to prepare a list of

prospects.

5. Non Competing Sales Force: Salespeople of non-competing products are a rich source of getting

prospect names. Non-competing sales-personnel can strike agreements to exchange information. E.g.

A salesperson selling copiers can provide information about the prospects for computers.

6. Telemarketing: Prospects are telephonically contacted. At times telemarketing is also used to verify

sales leads generated by advertisements or direct mailers. E.g. Credit card issuers, Personal and home

loan providers use telemarketing to qualify prospects for follow-up.

7. Lists and Directories: There are directories of telecom companies,, trade associations, chambers of

commerce, professional associations etc. There are yellow pages, regional and local directories some

free and some bought at a price.

8. Direct Mail, Direct response Advts., Sales Letters: Advertisements carry coupons where interested

people request for additional information, catalogue and direct queries. Some companies provide self-

addressed postage-paid envelopes. Sales letters are also sent to prospects. There is a follow-up call

and an appointment is sought.

9. Educational Seminars: The prospects are invited to seminars. The contents and delivery of the

seminars are carefully planned.

10. Trade Publications: There are trade publications giving a detailed report about a particular industry.

E.g. ORG report for pharmaceutical industry.

11. Tradeshows and Demonstrations: These are tradeshows and exhibitions either for industry in

general or for one particular industry. The prospects walk into the stalls at such shows. It is easy to

identify the prospects and close the sale here. Sometimes, prospects are qualified at the show, and a

follow-up sales call is needed to close the sale. E.g. Annual Book Fair at Kolkata or the Auto Expo at

Pragati Maidan, Delhi.


12. Database: Data processing enables a company to match products and buyer needs. Some companies

maintain their own database while others buy them from marketing research organisations. There are

databases available for specific segments.

13. Internet: Many companies maintain a web-site on the internet. They are frequently used for lead

generation.

14. Prospecting by Non-Sales Employees: Many organisations also involve non-sales people in

prospecting. They are made sensitive to selling opportunities and are, sometimes, given incentive to

identify prospects. E.g. A receptionist at the bank may be trained to identify prospects and pass on the

leads to the sales team.

15. Networking: A salesperson has to be social and interactive to develop a network. Creating contacts

and nurturing them is an art referred to as networking.

16. Centres of Influence: An influential individual in either social, business, religious or political

spheres, who himself may not take a buying decision but influences others to do so. A referral from a

centre of influence is effective as it carries a certain level of authority.

17. Combination Approaches: Organisations, usually, use a combination of all the above methods or

sources to get the prospects. E.g. Prospects may be identified at a trade show and later are subjected

to telemarketing or are chosen to receive mailers or sales letters.

Qualifying the Prospects

The leads generated in prospecting are qualified through the salespersons intuitions as well as by

contacting them over mail or phone. Their level of interest and financial capacity is assessed and

ascertained. As information is assembled on each tentative prospect, it is easier to estimate the probable

requirements of each for the types of products sold by the company. Even after tapping all readily

available information sources, additional information may be required to qualify certain prospects and

personal visits by salespersons may be the only way to obtain it. These visits may not bring in sales, but

they save time, as prospects are separated from non-prospects.

The leads are qualified on the following parameters: need for the product, ability to pay, and authority to

take a decision. After qualifying, the leads become qualified prospects. Qualified prospects are also

known as potential or prospective customers. The leads can be categorized as ‘hot’ prospects and ‘warm’

prospects. Hot prospects are thought to be ready to buy and these leads are given to the field sales force

so that they can go out and clinch the sales. Warm prospect leads are handed over to the telemarketing

unit for follow-up. Eventually, with repeated telemarketing efforts, these warm leads may turn hot.

Pre-Approach & Approach

At the end of successful prospecting and qualifying, constructing the salesperson’s presentation becomes

easy. It is now tailored to fit the individual prospect. The salesperson should have clear ideas about

specific objections the prospect may raise and other obstacles to the sales that may be encountered. At

this stage the salesperson is ready to contact the prospect. The only tasks remaining are making an

appointment, deciding how to open the presentation, and determining how to persuade the prospect to

becoming a customer.

The salesperson follows the AIDAS formula of gaining attention, holding interest, arousing desire,

obtaining action and building satisfaction. AIDAS theory of selling has been separately discussed at the

end of the steps of scientific selling process. A salesperson also uses the FABV (Features, Advantages, Benefits and Value) approach. Features

describe physical characteristics of the product or offering. Advantages relate the features to an advantage

for the customer. Benefits describe the economic, technical, service and social benefits delivered by the

market offering. Value describes the worth of the offering, often in monetary terms. The salesperson

should always try to link the features and attributes of the product with the customer needs so that the gap

or conflict and level of customer objection can be reduced in the subsequent stages.

Prospect

(Lead)

Qualifying Criteria

Existence of Need for the product

Existence of Ability to pay

Existence of Authority to buy

Qualified Prospect

(Potential or Prospective Customer)


Pre-Approach

Since the initial contact made with the customer is referred to as the approach, anything that a salesperson

does before this initial contact may be considered as pre-approach. Pre-approach is concerned with

spelling out pre-sale objectives and developing a pre-sale presentation plan. A salesperson is expected to

know about his company, its products and about competitors. [These, we have discussed under the

heading Pre-Sale Preparation.]

The salesperson is also required to gather sufficient information about the prospect. Before a salesperson

approaches the prospect for a sale, it is necessary to develop a sales strategy by collecting customer data

and combining them with the product attributes as a fit for satisfying the individual and organisational

needs. A salesperson needs to learn as much as possible about the prospect. He should have a fair idea

about what the buyer needs, his buying style and his overall personal characteristics. The more

homework one carries out, the more is the chance of a successful presentation that would lead to a sales.

Objectives of Pre-approach

To get personal and business related information of the customer.

Assess the needs of the customer to see whether the product suits these needs.

Involve the prospect in product demonstration.

Make an appointment with the decision making prospect.

Get referrals.

All these multiple objectives make the pre-approach a confidence building exercise for the salesperson.

Even when a few objectives are realised, a salesperson gets a feeling of accomplishment.

Approach

The initial contact made with the customer is called approach. Approaching a customer can be looked at

from two different angles – approach in order to get an appointment, and approach in order to make a

presentation for sales. It is very important to remember that they are distinctly different. When

approaching for an appointment, you are actually selling an appointment. A salesperson needs to

remember that while approaching for getting an appointment, he should not loose focus and start selling

the product instead.

An important task is to decide on the approach style while approaching to make a presentation for sales.

Initial impressions can cloud later perceptions, so it is important to consider the ways in which a

favourable initial response can be achieved. Buyers expect salespeople to be business like in their

personal appearance and behaviour. Further, a salesperson should respect the prospects busy schedule and

keep the conversation crisp and to the point so that he does not generate irritation on the buyers part.

Salespeople, typically, should open with a smile, a handshake, and introduce themselves and the

company they represent. Common courtesies should be followed. One has to pay attention to the opening

remarks as well.

After establishing the objectives for the sales presentation, it is time to develop the presentation plan.

Sales presentation must consider the relationship strategy, product strategy and customer strategy at the

same time.

Objectives of Approach

Creating a favourable impression

Arresting the attention of the prospect

Creating an interest for the product

Various Approach Styles

Consumer Benefit Approach: Focuses on consumer benefit.

Referral Approach: Focuses on a third party’s recommendation.

Introductory Approach: Focuses on the selling company and the salesperson.

Features Approach: Focuses on the physical elements of the product.

Breaking-the-ice (Putting the prospect at ease)

Probing to find out the needs of the prospect

Planning and designing the presentation


Presentation and Demonstration

This is the stage where the salesperson tells the ‘story’ of the product to the prospective buyer. In a sales

presentation, the salesperson presents his products and services before the prospect and makes effort to

create and modify their interest into sales realisation for the company. A salesperson usually makes use of

printed sales aids materials (brochures, prospectus, information literature, pamphlets or fliers, visual aids,

charts, slides, movie clips etc) to ‘paint a picture’ in the mind of the prospect.

There is a need for two-way communication between the salesperson and the prospect during a

presentation. Here the salesperson presents his products and services before the prospect and makes effort

to create and modify their interest into sales realisation for the company. While giving a sales

presentation, the salesperson should always try to link the features and attributes of the product with the

customer needs. This helps in reducing the gap or conflict and level of customer objection in the

subsequent stages.

If the customer agrees with the opening idea, the salesperson goes for a trial closure. If the customer

looks for more information, the salesperson delivers additional benefits. If the customer has some doubt

regarding the product performance, the salesperson demonstrates a proof to the customer during the

presentation. If the customer is indifferent and the response cannot be classified, the salesperson should

probe for further information. Probing helps in confirming the fit between the stated needs and promised

brand benefit.

Types of Presentation

The three categories of sales presentation based upon the structure of presentation are:

Canned presentation: Prepared by the company and there is little scope of modification for each

prospect. Companies prepare printed as well as audiovisual materials to support the sales presentation.

New salespersons can confidently use the presentation that addresses all the relevant issues for the

customers.

Organised presentation: Salespeople have enough scope to word the presentation, but on the lines of the

company policy and systems. This brings more flexibility and encourages participation of the prospects.

Tailored presentation: It is a customer-specific approach and the presentation is developed from the

detailed evaluation of a prospective customer’s business and is specifically designed for that specific

customer. This is the most common method of business-to-business selling.

Sales presentations based upon the number of sales personnel involved in the sales presentation may be

Single Personnel Presentation or Group Sales Presentation.

Sales presentations based upon the number of visits to the prospect could take the forms: Single Call

Presentation and Multiple Calls Presentation.

Two types of sales presentation based on the form of presentation are: oral presentation and the written

presentation. Written proposals, also known as Sales Proposals are used for selling high value industrial

products and for selling to the government. This is combined with oral presentations in solution and

software selling. Less expensive business-to-business selling and all other consumer selling involve only

oral presentation.

Sales Proposal

In many organisations, selling happens in a formal way, where the salesperson is required to give a

written sales proposal. This is mostly applicable in complex selling. Written proposals are used for

selling high value industrial products and for selling to the government. This is combined with oral

presentations in solution and software selling. Salespersons submit a written sales proposal when the

buying needs approval of more than one person, when the product addresses a complex solution to a

business problem, when sales teams are involved, and when the benefits of the product are not apparent

immediately. The following are the five qualities a sales proposal should convey:

Tangibility: The proposal should enhance and support the salesperson’s message and invite readership.

Assurances: The proposal should build trust and confidence in your ability to deliver, implement and

result in substantial benefits.

Responsiveness: The proposal should invite purchase proposals from the customers in a timely manner.

Reliability: The sales proposal should identify solutions to customer problems and strategies to achieve

the customer’s demand.

Empathy: The proposal should confirm the salesperson understands the customer’s business and needs.


Components or Stages of Sales Presentation

A normal presentation style covers summarisation of the situation, statement of the idea, description of

how the idea works, statement of the promised benefits, and the recommended action for buying. A sales

presentation may be complete in one call only. Then a salesperson goes through all the four stages during

a single call. In a multi-call approach, the first call is generally utilised mainly for information gathering.

The subsequent visits see the other stages taking the main focus. The four components of sales

presentation are: Need Discovery, Product Selection, Informing, Persuading and Reminding, and

Servicing the Sales.

Need Discovery: Salespeople need to be adept in recognizing the needs of the consumers. They have

to utilise their problem solving capabilities in order to get orders, repeat orders and referrals. Selling,

today, has shifted from being product-centric to customer-centric. As a consultant and advisor, the

salesperson makes a prospect realise his real needs. In order to know what the prospect needs and

wants it is necessary to set him talking. A professional salesperson uses the following types of

questions in order to assess the needs of the prospect – Information-gathering questions, Probing

questions and Confirmation questions.

Product Selection: A product is configured to meet the needs of the customer. A salesperson helps in

product selection and recommendation that would give maximum satisfaction. He should do this

competently like a consultant or an advisor and this is where his knowledge about the product and

competitor’s products comes in handy. A sales call is successful to the extent the customer needs and

the product benefits are effectively matched with each other.

Informing, Persuading and Reminding: It is necessary to communicate with the customer verbally

and non-verbally about the want satisfying capabilities of the product. More and more statements

need to be used at this stage so as to inform, persuade and remind the customer of the best possible

product choice fitting to his needs.

Servicing the Sales: It is the substantial dimension of any sales presentation. These activities are post

sale and they ensure satisfaction and establish a long term relationship with the customer. These

service activities include credit extension, suggestions, complaint redressal etc.

Sales Demonstration

If presentation is ‘telling a story’ about a product, demonstration is ‘showing and telling’. Sales

demonstration is an effective communication tool that invests the product with the sensory appeal. It

attracts attention, creates interest and stimulates desire. This cannot be achieved through verbal

presentations alone. A salesperson usually makes use of printed sales aids materials and, if possible, the

product or at least a sample of the product to ‘paint a picture’ in the mind of the prospect.

Tools for Effective Demonstration

Product Itself: Product itself is the most widely used sales aid. Videos can be shown to illustrate the

working of products. Demonstration rides are common for vehicles.

Models: It may not always be possible to use the product itself in demonstrations due to constraints

like size and mobility problems. Demonstration, then, is restricted to small miniature models of the

product which give an idea about the actual working of the product.

Photographs/Illustrations: Photographs/Illustrations are used to pass on relevant information.

Portfolio: It is a loose-leaf binder or ca portable case containing promotional materials.

Reprints: Reprints of articles and write-ups about the product in media are effective selling aids.

Graphs/Charts, Test Results: Graphical and chart-wise information are of great help. Test results

from reliable agencies are convincing.

Laptops and Demonstration Software: A laptop loaded with presentation software can assist the

salesperson in giving his presentation more convincingly and in a more organised manner.


Benefits of a Sales Demonstration

Demonstrations have a positive contribution to make to the selling process. It is mutually beneficial to

both the prospect and the salesperson. It makes product evaluation easier for the prospect and the

salesperson gets an opportunity to prove the worth of the product.

Better Communication: Words are, at times, inadequate to explain a point. Sight and sound are

helpful in mastering new concepts. Tables are used to explain things. Visual communication also

reduces the time taken to put the concept across.

Proof of Benefits: Demonstrations are proof enough. For example, in the case of a sale of computer

printers, printing quality is a matter of demonstration.

Feeling of Ownership: A prospect can be given a feeling ownership temporarily by a demonstration.

It urges him to buy the product. It provides an opportunity of assessment.

Other Benefits: Demonstrations infuse a sense of confidence in salespeople.

Overcoming Objections

Customers generally come up with objections during the presentation, or typically, when asked for the

order. The steps or mechanism for handling objections successfully are:

To handle the objections, the salesperson has to maintain a positive approach, ask the buyer to clarify the

objection, deny the validity of the objection, turn the objection into a reason for buying or question the

buyer in such a way that the buyer himself answers his own objection. It is always advantageous for any

salesperson to be prepared with objection handling techniques of typical objections that may crop up.

Typical objections include psychological resistances (like predetermined ideas, reluctance to giving up

something, dislike for making a decision, preference for established brands etc.) as well as logical

resistances (like objections related to price, delivery schedule, certain product or company characteristics

etc.). Handling and overcoming objections is a part of the broader skills of negotiations.

Obstacles and Objections

Prospects show sales resistance by pointing out obstacles and voicing objections. Obstacles can be real or

imaginary and objections can be sincere or insincere. In analysing sales resistance, the salesperson needs

skill in the accurate and rapid appraisal of people and their motivations.

Obstacles are real or apparent reasons that the prospect has for not buying. Whenever an obstacle arises,

the salesperson determines whether or not there is a way to go around it. If the salesperson recognises the

specific obstacle and knows a way to circumvent it, the next move is to present the solution to the

prospect. A prospect says a temporary shortage of cash prevents buying – an obstacle – and the

salesperson helps the prospect to circumvent it by explaining a method for financing the purchase.

Objections are never good reasons for failing to complete the sale, but they divert the salesperson’s

presentation from its main course. Sincere objections trace to incompleteness, inaccuracy or vagueness in

the sales presentation. Sincere objections are overcome by patient and thorough explanations. Prospects

raise insincere objections as false excuses for not buying. Salesperson should not permit an insecure

objection to provoke an argument. Objection should be treated with utmost courtesy.

Some Common Excuses Yes… But It’s a fantastic idea but it will not work here.

We would like to buy but not now. Blaming It is not my responsibility to make a decision.

I don’t mind buying, but my wife won’t like

it.

Denial I don’t need this new product.

There is no reason for changing now. Alibi I don’t have the money to buy.

I don’t have the authority.

Reframing

reality

Our purchasing system is not unfair, but we

are limiting our number of suppliers.

Justification We do have a need for the product but

presently we are busy with our internal

reorganisation.

I’ve no

choice

I tried my best but I have to go along with the

majority.

Based on the offer from your competitor, I

have to decide in their favour.

Helplessness It is out of my hands, I can’t do anything now.

If only I could convince my spouse.

Minimizing I don’t see anything great in this.

There is little value in spending money on

this.

Derogation You don’t enjoy a good reputation in this area.

Nobody will be around when it comes to

providing service.

Smile Agree Turn the excuse into a reason to buy/

Handle the Objection Close Differently Show more Value


Common Methods of Handling Excuses

Superior feature method: Salesperson accepts the objection and persuades through providing

additional advantages of his product, which may compensate the objection raised.

Yes… but method: Salesperson agrees with the objection at the beginning and then slowly

removes it from the customer’s mind by tactful handling of arguments.

Reverse English method: Salesperson changes customer’s objection into the basis of buying.

Indirect denial method: Salesperson denies the objection indirectly

Pass out method: Salesperson does not pay any attention to the customer’s objection and

expresses neutral opinion.

Comparison method: Salesperson demonstrates similar products of different producers and

removes the objection by comparing the benefits of his products with those of others.

Direct denial method: Salesperson rejects the customer’s objection outright.

Another angle method: Salesperson advices the customer to look from another (positive) angle.

Narrative method: Salesperson uses a story to remove customer objection.

Testimonial method: Salesperson presents the sales message by referring to celebrities and

persons of importance as users of the product.

Question method/ Why method: Salesperson asks questions, one after the other, to the customer

against his objection and tries to get suitable answers to that objection from the customer himself.

Closing

Closing is referred to as the task of asking for the order. It is, typically, referred to as an attempt to make

the customer sign on the dotted lines of the order pad and making him pay for the product. This stage

signifies that the prospect, having gone through the demonstration process, has been convinced enough to

make a buying decision. A salesperson must ask for the order in order to make the presentation a

successful one. Typically, objections do crop up at the first few closes. If these objections are handled

properly and demonstration or presentation carried out systematically the final close faces no resistance

and sales take place. It is very rare that the first close would yield an order; therefore the salesperson

needs to be prepared with objection handling techniques and keep on trying multiple closes in any

demonstration. Salespeople also need to know how to recognize closing signs (or buying signals) from

the buyer including physical actions, statements or comments, and even questions.

Methods for Closing

There is no one best method for closing the sale. One has to use a method that is appropriate. At times, a

combination is used. What matters is not only the close, but also the relationship one establishes after the

close. Some common methods of closing a sale are as follows:

Trial Close: The customer may be ready to buy or may be not. The opportune time to close is to

judge his readiness or otherwise. A probing or confirmation question may be put across. o Which colour would you prefer – the blue or the orange?

o Where would like the delivery to be made – at your office or at your residence?

o We can have the goods delivered in January. Will this be OK with you?

Summary-of-Benefits Close: The salesperson needs to summarise the entire presentation in

terms of benefits to bring about a favourable decision. Benefits which address the personal concerns

of the buyer are highlighted.

Assumption Close: It is assumed that the customer is going to buy. It comes at the end of the

presentation. The salesperson starts writing the order and expects the prospect to sign on the dotted

line.

Special Concession Close: An additional incentive is given to close the sale. It could be in the

form of a low price, credit plan or added feature.

Multiple Options Close: Several options are put before the customer in terms of configuration,

delivery and price. The customer examines these. When the close comes near, some of the options are

eliminated to reduce confusion. Such closes are very common while selling office equipments.

Direct Appeal Close: The order is sought directly. Once a direct appeal is made, the salesperson

leaves it to the customer to decide.

Combination Closes: Two or more closing methods can be used in certain situations, e.g. say a

summary of benefits and a special combination.


Follow-Up and Maintenance

Immediately after the close, the salesperson needs to thank the customer and reassure him on his decision

to buy. He has to restate and clarify necessary details (like the delivery time, purchase terms and other

matters that may be important to the customer). The salesperson should, also, schedule a follow-up call

for a time after the delivery would have taken place so as to ensure proper installation, instructions and

servicing. Follow-up and maintenance takes care of reducing any cognitive dissonance or post-purchase

remorse. These steps, if carried out with sincerity and earnest, may also generate good leads in the form

of referrals. If the salesperson wants to ensure customer satisfaction and repeat business follow-up and

maintenance is a must.

Steps of Follow-Up and Maintenance

Thank the Customer for the order.

Congratulate him over his decision. The customer should be left with the impression that the act

of buying was his decision and that the salesperson merely helped in the deciding process.

Summarize the Deal. Write down in clear terms the salient features of the deal. Mention what he

is getting against what he is paying. Highlight the features and the benefits.

Reinforce the Deal. Equip the customer with sufficient literature and materials to fall back upon

once the salesperson leaves his premises.

Follow-Up on promises made during the presentation.

Maintain a good relationship with the prospect. Customer satisfaction also includes building up a

long term relation with the prospect.

Customer service is defined as all the activities which enhance and facilitate the sale and use of the

product. It facilitates the buying and using the product. It paves the way for customer loyalty. These days

the focus is on retaining customers. Customer service has become a distinguishing feature for many

organisations.

Objectives of Follow-Up Actions

After-sales service is an important part of the selling process. It assures that the order will not be

cancelled and it paves the way for building confidence and establishing relationship with customers for

future revenues. It is generally believed that it costs five times as much to get a new customer as it costs

to retain an existing one for an additional sale. Some of the benefits and objectives of a service call or

follow-up action are as follows:

Helps the salesperson generate additional leads from satisfied customers.

Gives the salesperson an opportunity of cross-selling and suggestion-selling.

Helps in building up customer’s interest and in generating repeat sales.

Helps in maintaining goodwill.

Helps in finding out any discrepancies regarding non-fulfilment of promises made and subsequent

corrective measures can be initialised.

Customer Service Methods

The sale is serviced by suggestion selling, follow-ups on promises and customer satisfaction. The

salesperson assumes the responsibilities of delivery, installation and warranty interpretation. Some of the

customers servicing methods are as follows:

Suggestion Selling: An item or service related to the main item sold is suggested so as to add to

the customer satisfaction. Suggestions should be positive and thoughtful. In automobile selling,

several accessories – like car stereo and central locking systems – are suggested.

Cross-Selling: It involves selling unrelated products to the existing customer. An equity

purchaser may be asked to buy a mutual fund or a cellular subscriber can be asked to get a credit card.

Follow Through: A salesperson makes several promises during his presentation. Assurances in

the form of prompt delivery, credit facility, installation, training, service etc. needs to be followed

through. An organisation must have good dispatch people. The installation people must do a sincere

job. Credit department must have a professional approach.

Follow Ups: Immediately after the close, the salesperson needs to thank the customer and

reassure him on his decision to buy. A few days later he should be contacted again for his feedback

regarding performance of the product. Follow ups can be done through personal visits, telephone

calls, e-mails etc.

02. personal selling · personal selling is an ancient art. it is also a scientific process because...

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