Download - Personal Selling Process PPT
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SDM-Ch.2 1
Chapter 2
Personal Selling:
Preparation and Process
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SDM-Ch.2 2
Psychology in Selling
If a sales person makes a presentation, the
prospect may or may not buy
The above buyerbehaviour modeldoes not tell
us the reasons of buying or not buying
To understand the psychological aspects of
selling or buying, salespeople should studyconsumer or buyer behaviour, including buying
process and situations
Stimulus
(Sales Presentation)
Response
(buy or no buy)
Buyers decision
making process
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SDM-Ch.2 3
Buying Process of Consumers and Business Buyers
Five
stage model for householdcustomers Eight
stage model for businessbuyers
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 4
Buying Situations Faced By
Household customers Business Buyers
Routine decision-making New task / New purchase
Limited decision-making Modified rebuy / change in
supplierExtensive 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 in
buying process. E.G.A consumer buying toothpaste
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SDM-Ch.2 5
Knowledge of Sales and Sales-related
Marketing 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 / knowledge through
training programmes to salespeople are:
Increase their Self-Confidence
Meet customersexpectations
Increase sales
Overcome competition
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SDM-Ch.2 6
The Sales Process
As a part of selling activities, if salespeople follow the steps or phases
shown below, their chances of success are far better.
Prospecting &
QualifyingPreapproach /
Precall planningApproach
Presentation &
Demonstration
Follow-up &Service
Trail close /Closing the sale
OvercomingObjections
The sequence of above steps may change to meet the sales situationin hand
Some of the above steps may not be applicable for selling to the trade
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SDM-Ch.2 7
1. Prospecting
It is identifying or finding prospectsi.e. prospective orpotential customers.
Methods of prospecting or sales lead generationare:
1. Referrals from existing customers,
2. Referrals from company sources (website, ads., tradeshows, tele-prospecting),
3. Referrals from external sources (suppliers, intermediaries, tradeassociations),
4. Salespersonsnetworking,
5. Industrial directories,
6. Cold canvassing.
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SDM-Ch.2 8
Qualifying
Important that lead is qualified (meet standards or conditions) Companies qualify sales leads by contacting them by mail or
phone to find their interests (or needs) and financial capacity.
Leads are categorized as:
HOT Good
requirements
Financially
sound
Handled by
salespersons
WARM Medium
requirements
Financially
sound
Handled by
Telemarketingteam
COLD Low
requirements
Not good
capacity
By companys
intermediaries
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SDM-Ch.2 9
2. Pre-approach
Includes 2 tasks:
1. Information gathering about theprospect
2. Precall planning
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SDM-Ch.2 10
a. Information gathering about the prospect
Information about: prospects business,
products/services, plant location, background,
etc.
Sources of information: the Internet, industrial
directories, government publications,
intermediaries, trade magazines, chambers of
commerce, annual reports, etc.
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SDM-Ch.2 11
b. Precall planning
Setting Call Objectives: making sales
presentation, gather info, etc.
Planning the Sales Strategy: find out whenand whom to approach by phone call, followed
by personal visit, make tentative plan for
presentation and sales strategy.
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SDM-Ch.2 12
3. Approach
Make an appointment to meet the prospect
Make favorable 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 13
4. 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
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SDM-Ch.2 14
Understanding the buyers needs
Firms and consumers buy products / services tosatisfy needs
To understand buyersneeds, ask questions andlisten
In business situations, problem identification andimpact questions are important
E.G.
Have you experienced any problems on quality anddelivery from the existing supplies?
What impact the quality and delivery problems will haveon your costs and customer satisfaction?
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SDM-Ch.2 15
Knowing Sales Presentation Methods/Strategies
Firms have developed different methods / styles /strategies of sales presentation
Stimulus response method / canned approach It is a memorised sales talk or a prepared sales
presentation.
The sales person talks without knowing the
prospectsneeds.
E.G.Used by tele-marketing people
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SDM-Ch.2 16
Contd
Formula method / formulated approach
It is also based on stimulus response thinking that all
prospects 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 notuncovered and uses same standard formula for
different prospects.
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SDM-Ch.2 17
Contd
Needsatisfaction method Interactive sales presentation
First find prospects needs, by asking questions andlistening
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 18
Contd
Team selling method
Uses multi-person sales teams to deal with multi-
person buying centres of customers A Relationship process develops between the sales
team and the buying centre
It is very expensive
Used for major accounts having high sales and profitpotential
Used for complex selling situations
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SDM-Ch.2 19
Developing an Effective Presentation
Some of the guidelinesare: Plan the sales call
Adopt presentation to the situation and person
Communicate the benefits of the purchase
Present relevant and limited information at a time Use the prospectslanguage
Make the presentation convincinggive evidence
Use technology like multi-media presentation
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SDM-Ch.2 20
Using Demonstration
Sales presentation can be improved bydemonstration
Demonstration is one of the important sellingtools
EGs: Test drive of cars; demonstration of industrialproducts in use
Benefitsof using demonstration for selling are:
Buyersobjections are cleared
Improves the buyerspurchasing interest Helps to find specific benefits of the prospect
The prospect can experience the benefit
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SDM-Ch.2 21
5. Overcoming Sales Objections
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:
(i) For Psychological objections: ask questions.
(ii) For logical objections: (a) ask questions, (b) turnan objection into a benefit, (c) deny objections
tactfully, (d) third-party certificate, (e)
compensation.
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SDM-Ch.2 22
6. Trial close and Closing the sale
Trial close checks the attitude or opinion of theprospect, before closing the sale
If the response to trial close question is
favourable, then the salesperson should close
the sale
Closing the sale means asking for order
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SDM-Ch.2 23
Contd
Techniques used for closingthe sale are:
(a) alternative-choice,
(b) minor points close,
(c) assumptive close,(d) summary-of-benefits close,
(e) T-account,
(f) special-offer close,
(g) probability close
(h) negotiation close
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SDM-Ch.2 24
7. Follow-up and Service
Necessary for customer satisfaction
Successful salespeople follow-up in different
ways: 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 25
Negotiation
Applicable in B2B selling, negotiated on the basis of prices, payment
terms, delivery period, etc,
Salespeople need negotiating skills like: planning, subject
knowledge, listening, patience, communication, intelligence, clear
thinking, integrity and trustworthiness.
When to negotiate?
(a) When the buyer puts certain conditions for buying to the seller,
(b) When agreement between the buyer and the seller is needed onseveral factors,
(c) When the product is customized,
(d) When the final price is to be decided
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SDM-Ch.2 26
Contd
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
(d) Both of us lose
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SDM-Ch.2 27
THE END