personal selling process ppt

7/22/2019 Personal Selling Process PPT

1/27

SDM-Ch.2 1

Chapter 2

Personal Selling:

Preparation and Process


2/27

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


3/27

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


4/27

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


5/27

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


6/27

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


7/27

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.


8/27

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


9/27

SDM-Ch.2 9

2. Pre-approach

Includes 2 tasks:

1. Information gathering about theprospect

2. Precall planning


10/27

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.


11/27

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.


12/27

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


13/27

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


14/27

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?


15/27

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


16/27

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.


17/27

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


18/27

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


19/27

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


20/27

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


21/27

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.


22/27

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


23/27

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


24/27

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


25/27

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


26/27

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


27/27

SDM-Ch.2 27

THE END

personal selling process ppt

Documents