Chp 2. Sales Management, Personal Selling and Salesmanship

Sales Management

Personal Selling

Salesmanship

directs

Implemented

Sales Management– The planning, direction and control of personal selling, including

recruiting, selecting, equipping, assigning, routing, supervising, paying and motivating as these task apply to the personal sales force

Personal Selling– Along with other marketing elements such as pricing, advertising,

product development and research, marketing channels and physical distribution is a means of implementing marketing program

Salesmanship– It is art of successfully persuading prospects or customers to buy

products or services from which they can derive suitable benefits, thereby increasing their total satisfaction

Buyer-Seller DYAD

– “dyad” a situation in which two people interact A salesperson and the prospect interacting with each

other The more alike the salesperson and their prospects,

higher the chances of the sale– E.g. Insurance

Diversity in Personal-selling situations– Service Selling – obtain sales from existing

customers whose habits and patterns of thought are already conductive

– Developmental selling – aims to convert prospects into customers

Sales Positions

Group A (service selling)1. Inside Outside Taker – “waits on customer” –

sales clerk behind the counter2. Delivery Salesperson – delivering the product3. Route or Merchandising Salesperson –

Operates as an order taker but works in the field 4. Missionary5. Technical Salesperson

Sales Positions

Group B ( developmental selling)1. Creative salesperson of Tangibles

– Vacuum cleaners

2. Creative Salesperson of Intangibles– Insurance

Group C ( dev. Selling + unusual creativity)– “Political”, “Indirect” or Back Door Salesperson– Salesperson engaged in Multiple sales

Theories of Selling

AIDAS theory of selling– Attention– Interest– Desire– Action– Satisfaction

Securing Attention– Receptive state– Few min. of the interview crucial

Gaining Interest– Intensify the prospects attention -> strong interest

Kindling desire– Ready-to-buy point– Obstacles/Objections

Inducing Actions– The “right time”

Building satisfaction– Reassurance

“Buying Formula” Theory of SellingNeed ( or problems) -> solution -> Purchase

Need -> solution -> Purchase-> Satisfaction

Need -> Product service -> Purchase-> Satisfaction/

and/or Dissatisfactiontrade name

Need -> Product service -> Purchase-> Satisfaction/

and/or Dissatisfactiontrade name

Adequacy

Pleasant feelings

“Behavioral Equation” Theory– Four essential elements of learning process

Drives – strong internal stimuli– Innate drive from physiological needs– Learned drives

Cues- weak stimuli that determine when the buyer will respond– Triggering cues– Nontriggering

Product cues Informational cues

Response Reinforcement

Salesperson Knowledge Universe

SalespersonKnowledge

universe

CompetitorsKnowledge

•Industry structure•Market Share•Market Behaviour•Other policies

CompanyKnowledge•History•Finances•Management•Size•Policies and•Procedure

Product Knowledge•Features•Benefits•Styles•Origin•Price

The Selling Process

Pre sale Preperation

Pre-approachB4 the interview

ProspectingApproach to the

customer

Follow upaction

Closing the saleHandling customer

Objections

Sales presentations

Pre-approach Information

Size of the business Product lines and market they sell Responsible executives and key personnel Buying routines and procedures Competitors Any previous business dealing with your competitors From whom are customers buying currently Levels of volume possible Where, when, why and by whom will the products be used Prospects of developing future sales form the client

Prospecting

Prospecting– The planning work which is essential in

eliminating calls on nonbuyers is called “prospecting”

Steps in Prospecting– Formulating prospect definitions

Getting to the right person

– Searching out potential accounts Names of prospects

– Qualifying prospects and determining probable requirements

Additional information sources to qualify

– Relating company products to each prospects requirements Strategy for approaching each prospect

50 potential prospects

15 qualified prospects

6 interviews

1 sale

Successful prospecting

50 potential prospects

25 qualified prospects

17 interviews

7 sale

YesNo

Popular methods of prospecting

Cold canvassing Endless chain customer referral Prospect pool Centers of Influence Non-competing sales force Observation Friends and Acquaintances List and Directories Direct mail Telemarketing Trade Shows and Demonstrations

Pre-approach Information b4 the interview

Customer Benefit Plan– FAB analysis

Features Advantages Benefits

– Own as well as the competitors– Reason to purchase

FAB Analysis

Features The salesperson describes the features or characteristics of the products, service or market offering

– For e.g. “Our ceiling fan has two ball bearing” Advantages The salesperson then describes how the feature

helps or give advantage to any prospect– “because of the bal bearing, our ceilings fans make hardly any

notice and have a longer life” Benefit The Salesman described how the feature or advantage

meets a clear and detailed need expressed by the prospect. – “Our ceiling fans can be used in classrooms where noise level

should be low as needed by you”

Exercise

Product/Service Feature Advantage Benefit

Washing Machine

Passenger Car

MBA Programme

Life Insurance

Approach to the customer

Crucial step Commonly occurring mistakes

– Disregarding the concept of the first impression– Forgetting the goal of obtaining the order– Selling the company's image than the products– Lack of response to needs and objections of customers– Overcomplicating the technical and managerial jargons– Relying on product literature for product information– Talking and arguing instead of listening– Brushing of questions and objections– Failing to ask for the order

Sales Presentation

What the customer wanted to ask you but did not spell out to you

– Why should I listen to you?– What is important in your presentation?– What will I get out of it?– Who says that yours is the best in the business?– So what if you have a great product, everybody say so?– Who else has done the buying of your product?– Do I know anyone of them?

Sales Presentation

Attracting Customer Attention– Understanding the customers mind and thought

and placing the product according to that so it matches his line of thought.

– External factors– Internal factors

Sales Presentation

Creating Interest– Charles Fernard

Interest appreciations Serviceability Identification

Arousing desire and Building conviction

Methods of Sales presentation

Canned Presentation– Prepared by the company– Little scope for modification– New salespeople; confidence– Repeated calls to the same customer – not useful

Organized Presentation– Enough scope to word the presentation but on the lines of

the company policy and systems– Flexibility– New and old salespeople

Tailored Presentation– Business to business selling

Handling customer Objections

Sales Resistance– Real or imagined obstacles– Obstacles to sales– Sales Objections

Handling customer Objections

Start with the highest expectations Avoid conceding first Be sure the customer understand the value of a

concession Makes concession in small amount Admit mistakes and make corrections willingly Be prepared to withdraw a mistake Do not advertise the willingness to concede

Methods of Handling customer Objections

Superior feature method Yes..but method Reverse English method Indirect denial method Pass out method Comparison method Direct denial method Another angle method Narrative method Testimonial method Question or why method

Closing sales– Caution method

Product availability

– Implied consent method Satisfied customer; place order at the end

– Special induced method Reminds about the promotional scheme

– Direct order method– Choice narrowing method

Follow up action

Advantages– Evaluate competitive sales moves– Generate additional leads from satisfied

customers– Cross-selling and upselling– Good will– Repeat business

Exercise

The Mordex Photocopier Company

Selling Skills

Selling skills

Selling skills

Problem Solving skills

Conflict Management and resolution skills

Negotiation Skills Listening Skills

Communication Skills

Selling Skills

Communication Skills– Salesperson’s behaviour

Truth of words Predictability of action Competency Intent or empathy Likeability

Communication Skills– Avoid using big, confusing jargon or expressions– Personal appearance– Postures– Gestures– Facial Expressions– Eye contact– Space distancing– Empathy

Listening Skills

Content listening– Understand and retain the speakers message– Information flows from the speaker to the listener

Critical listening– Understand and evaluate the meaning of the speakers message at

several levels The logical level of the argument Strength of the evidence Validity of the conclusions Implications of the message for the customer The speakers intention and motives Omission of relevant data

Emphatic listening Understand the speaker’s feelings, needs and demands

The Process of listening

Attendance

Interpretation

Remembrance

Evaluations

Response Action

The Levels of listening

Feedback

Paraphrasing

Clarifications

Emphatic Listening

Active listening

Barrier to listening

Sheet to be given to students– Bad/Good listener

Exercise

Conflict Management

Methods of resolution– Competing– Collaboration– Avoiding– Accommodating– Compromising

Must read– Fisher and Ury – Getting to yes( Negotiation)– Stephen Covey – the seven habits of highly

effective people ( Problem solving)

Negotiation Skills

Fisher and Ury– Separate the people from the problem– Focus on interest on positions– Invent options for mutual gains– Insist on objective criteria

BATNA = best alternative to a negotiated agreement

Bargaining Tactics

Questions to ask oneself before making an offer– Should I give the first offer?– Should I start with the high offer?– Should my preparation lead to a closing?– Should I sketch an agreement from the beginning?– Should I construct a framework for agreement?– Should I move towards the commitment gradually?

Tactical Consideration and Strategies

Let the other party have its own way Visit the Balcony Step to their side Reframing rather than rejection Let them take ownership Educating them to senses

Negotiation Tactics

Acting crazy Auctioning The good guy- Bad guy routine Budget bogey Get a prestigious ally Escalation The well is dry Limited Authority Whipsaw/auction Divide and conquer Sticks and Stones Deadlines Get Lost/Stall for time Take it or leave it

Wet noodle Veiled threat Lets split the difference Play the Devils advocate Surprises