session2 (2)

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MANAGEMENT

SESSION 2: PERSONAL

SELLING, TYPES OF

SALES MANAGEMENTPOSITIONS, THEORIESOF PERSONAL SELLING

AND STRATEGIES OFPERSONAL SELLING

Prepared by: Dhaval Motwani

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Personal selling

Personal selling refers to personalcommunication with a an audiencethrough paid personnel of anorganization or its agents in

such a way that the audienceperceives the communicator’s organization as being the sourceof the message.

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Evolution of Personal Selling

Selling functionbecame more

structured

Peddlers selling doorto door . . . servedas intermediaries

Business organizationsemployed salespeople

Selling functionbecame moreprofessional

As we begin the 21st century, selling continues to develop,becoming more professional and more relational

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Contribution of Personal Selling

Towards the Society

• Salespeople helpstimulate the economy

• Salespeople help with the

diffusion of innovation

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Towards the Employing firm

• Salespeople generate revenue

• Salespeople provide marketresearch and customerfeedback

• Salespeople become futureleaders in the organization

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Towards the customer

• Salespeople provide

solutions to problems• Salespeople provide

expertise and serve asinformation resources

• Salespeople serve asadvocates for the customerwhen dealing with the sellingorganization

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Objectives of Personal Selling

Qualitative objectives To do the entire selling job.

2) To service existing accounts.3) To search out and obtain new customers.4) To secure and maintain customers co-operation in

stocking and promoting the product line.5) To keep customers informed on changes in the productline and other aspects of marketing strategy. 6) To assist customers in selling the product line.7) To provide technical advice and assistance tocustomers.

8) To assists with the training and middlemen’s salespersonnel.9) To provide advice and assistance to middlemen onmanagement problems.10) To collect and report market information of interest anduse to company management.

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Quantitative objectives

) To capture and retain a certain market share.2) To obtain sales volume in ways that contributes

to profitability.3) To obtain some number of new accounts ofgiven types.4) To keep personal selling expenses with in set

limits.5) To secure targeted percentage of certainaccounts business

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Types of Selling

Industrial selling

Retail selling

Services selling

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Industrial Selling:More popularly known as Business-to-business

selling 4 major categories Selling to retailers: objective here is to gain maximum

shelf space and higher point-of-purchase display. eg.Hero cycles, T-series

Selling to business users: sales of first firm to thesecond firm which is a business customer so product isutilised for production of a final good. Eg. IBM sellingPentium processors to Compaq

Institutional selling: selling products to institutions fordaily use, products used provide support to the buyer’sbusiness rather than producing his goods. Eg. Xeroxphotocopiers

Selling to governments: selling only to governmentundertakings which follows a different procedure

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Retail Selling:

Selling to the ultimate customer for end use or

consumptionHere , a buyer seeks a seller

Eg: Shoppers stop, Walmart, Big Bazar, KhodiyarProvision store

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Services Selling:

Intangible in nature

Eg: Insurance, travel experience, tourismCannot be stored or re-sold at a later date

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Types of Selling

Sellingfunction

Order

takers

Ordercreators

Ordergetters

Sales support

salespeople

Front-linesales people

merchandisers

Technical supportsalespeople

Consumersalespeople

Organizational sales

people

New Businesssalespeople

Missionarysalespeople

Outsideorder taker

Deliverysalespeopl

e

Inside-order taker

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Types of selling

Order takers

Inside order taker: retail sales assistants whoserole is to complete the transaction

Delivery sales person: sales people whose job isto deliver the goods and in some cases to install it

Outside order takers: those whose job is to visitcustomers, provide demonstration of the product

if necessary and take orders only. Eg. EurekaForbes people

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Order creators

Missionary salespersons: those who do not closea sale but persuade the customers, educate and

make aware the customers and to promote aseller’s brand. Eg: medical representatives

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Order getters: people who actually make sales bygoing door-to-door Frontline salespeople: who go door-to-door to make

sales New business salespeople: who persuade new buyers and

non users to buy the product

Organizational salespeople: the industrial sellers who try toestablish and nurture a long term relationship with theorganizational buyers, generally helped by a support staff

sales team Consumer salespeople: go door-to-door to sell spices,

eatables, insurance etc

Sales support salespeople: those who provide supportto the sales people Technical support salespeople: provide support to the sales

people when the product is complex or needs negotiationsdemanding financial attention of the company

Merchandisers: provide sales support in retail and wholesaleselling situations

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Sales management positions

CEO/ Presiden

t

VP sales/VPMarketing

National SalesManager

Regional/Zonal/Divisional/Sales Manager

Branch/Area/District Sales Manager

Sales trainee/sales person/ sales representative

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Sales management positions

Top level:

National level and above

Responsible for long term marketing and sales planning, scanning externalenvironment, setting long term and short term objectives, developing strategies,decision making and coordination.

Middle level:

Mostly the title of regional, zonal or divisional sales managers Responsible for managing several branches or districts and implementing the

strategies and action plans approved by the top management.

First line sales managers: Titles of branch sales managers, area sales managers or district sales managers

Directly responsible for sales goals and objectives

Day to day supervision of sales persons below them Stall sales management positions

Sales training manager, customer service manager, sales co-ordination manageretc

They have an advisory role and do not have any authority on live sales managersand sales force.

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Personal selling Strategies

Stimulus Response Selling

Mental States Selling

Need Satisfaction Selling

Problem Solving Selling

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Stimulus Response Selling

SalespersonProvidesStimuli

BuyerResponses

Sought

ContinueProcess until

PurchaseDecision

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Mental States Selling

Attention Interest Conviction Desire Action

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Need Satisfaction Selling

Uncover andConfirm

Buyer Needs

PresentOffering to

SatisfyBuyer Needs

ContinueSelling until

PurchaseDecision

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Problem Solving Selling

DefineProblem

GenerateAlternativeSolutions

Continue

Sellinguntil

PurchaseDecision

EvaluateAlternativeSolutions

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Consultative Selling

Long-term Ally

The process of helping

customers reach theirstrategic goals by usingthe products, service,and expertise of theselling organization.

Strategic Orchestrator

Business Consultant

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The Sales Process

• Sales Presentation Delivery

• Earning Customer Commitment

DevelopingCustomer

Relationships

Initiating CustomerRelationships

EnhancingCustomer

Relationships

• Prospecting• Pre-approach• Presentation Planning• Approaching the Customer •Adding Value through Follow-

up, Self-leadership, andTeamwork

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Sales process cont...

Prospecting &

qualifying

Pre-approac

h

Approach

Presentation&demonstratio

n

Handlingobjection

sClosing

Follow-up

Identifyqualified

potentialcustomers

Learn asmuch aspossible

aboutcustomer

Make a

relationship

Tell the product “story” &

focus on customer

benefits

Overcomecustomerobjections

Ask foran

order

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Prospecting:

Can be an individual, family, organization etc

Has the need and the ability to buy

Hot prospects, warm prospects and cold prospects

Pre-approach:

Involves information gathering, planning the sales call, setting the sales call,

Approach:

The actual meeting with the customer

Important and can make or break the sale

Presentation delivery

Very important Involves conveying the highlights of the product to the customer

Arousing the need and convincing him

Use of technology, adaptability of the presentation, benefit plan, use of language& convincing

Use of demonstration if required

Matching the presentation method with situations Earning customer commitment

Convincing the customer and making him believe the worthiness of the product

Overcoming objections (psychological and real/logical)

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Closure of sale Asking for the order

Proper timing important

Understand the buying signals Examines the product

Asks another person’s opinion

asks a question

Becomes friendly

After sales follow up and serviceHelps to build relationship

Satisfaction here leads to customer delightGood brand reputation and leads to repeat sales

Helps to build loyalty among customers

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Theories of selling

Selling is an art as well as a Science

AIDAS theory

“right set of circumstances” theory

“Buying formula” theory

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AIDAS theory:

A – attention Beginning of the conversation/interview

First impression important

Proper attire, neatness, friendliness, and genuine smile

A good way of greeting and slowly bring up the actual topicto the customer

I – Interest Aids to generate interest in the products like flip charts, ppts

or even a demonstration

Generally hints dropped by the prospect which should bepicked by the salesperson. This helps in selecting the best

approach This skills comes with experience

Care to be taken about the timings, mood and relation withthe customer

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D - Desire:

Making the buyer ready to pay

Face and solve the sales obstacles and queries Proper anticipation of sales objections helps

A- Actions

Buying action has to be induced

Asking for the order

S - Satisfaction

Reassurance that the decision is right

Means thanking the customer for the order and a

promise of proper after sales service

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“Right set of circumstances” theory:

Particular circumstances cause the prospect torespond in a predictable way during the salesprocess

The sales person must be able to gain advantageof this

Internal and external factors decide thecircumstances

Internal will be the thoughts of the prospect,mood, psychology, beliefs, tensions

External will be the place, timings, appearance ofthe sales person etc.

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“Buying formula” theory Focus on what lines is the buyer thinking

Internal factors given much importance as they have the mostlikely effect on the thinking

When a need/problem is recognised, buyer thinks of a solution interms of the product, service or the brand name

Proceeds mentally from the need, to product/service, to tradename, to purchase and ultimately the satisfaction ordissatisfaction

When a person is satisfied or has found a solution he

Need/problem

Productservice and

/orTrade name

purchase satisfaction

Need/problem

Productservice and

/orTrade name

purchase satisfaction

Adequacy & pleasant feelings

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