Personal Selling Process Ppt 2j502o

Chapter 2

Personal Selling: Preparation and Process

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Psychology in Selling Stimulus (Sales Presentation)

Buyer’s decision making process

Response (buy or no buy)

• If a sales person makes a presentation, the prospect may or may not buy • The above “buyer behaviour model” does not tell us the reasons of buying or not buying • To understand the psychological aspects of selling or buying, salespeople should study consumer or buyer behaviour, including buying process and situations SDM-Ch.2

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Buying Process of Consumers and Business Buyers Five – stage model for household customers

Eight – stage model for business buyers

1. Problem / need recognition

1. Problem / need recognition 2. Characteristics and quantity determination 3. Specification development

2. Information search / collection

4. Supplier search and qualification 5. Obtain and analyse supplier proposals

3. Evaluate alternatives

6. Evaluation and selection of suppliers

4. Purchase decision

7. Selection of purchase order routine

5. Post – purchase behaviour

8. Performance and postpurchase evaluation

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Buying Situations Faced By Household customers

Business Buyers

• Routine decision-making

• New task / New purchase

• Limited decision-making

• Modified rebuy / change in supplier

• Extensive 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 SDM-Ch.2

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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 customers’ expectations • Increase sales • Overcome competition SDM-Ch.2

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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 & Qualifying

Preapproach / Precall planning

Approach

Presentation & Demonstration

Follow-up & Service

Trail close / Closing the sale

Overcoming Objections

• The sequence of above steps may change to meet the sales situation in hand • Some of the above steps may not be applicable for selling to the trade

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1. Prospecting •

It is identifying or finding prospects i.e. prospective or potential customers.

•

Methods of prospecting or sales lead generation are:

1. 2.

Referrals from existing customers, Referrals from company sources (website, ads., tradeshows, teleprospecting), Referrals from external sources (suppliers, intermediaries, trade associations), Salespersons’ networking, Industrial directories, Cold canvassing.

3. 4. 5. 6.

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Qualifying • •

Important that lead is qualified (meet standards or conditions) Companies qualify sales leads by ing 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 Telemarketing team

COLD

Low requirements

Not good capacity

By company’s intermediaries

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2.

Pre-approach

• Includes 2 tasks: 1. Information prospect

gathering

about

the

2. Precall planning

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a.

Information gathering about the prospect

• Information about: prospect’s 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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b.

Precall planning

• Setting Call Objectives: presentation, gather info, etc.

making

sales

• Planning the Sales Strategy: find out when and whom to approach by phone call, followed by personal visit, make tentative plan for presentation and sales strategy.

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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 SDM-Ch.2

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4.

Presentation and Demonstration

There are four components: • • • •

Understanding the buyer’s needs Knowing sales presentation methods / strategies Developing an effective presentation Using demonstration as a tool for selling

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Understanding the buyer’s needs • Firms and consumers buy products / services to satisfy needs • To understand buyer’s needs, ask questions and listen • In business situations, problem identification and impact questions are important E.G. • Have you experienced any problems on quality and delivery from the existing supplies? • What impact the quality and delivery problems will have on your costs and customer satisfaction? SDM-Ch.2

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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 prospect’s needs. • E.G. Used by tele-marketing people SDM-Ch.2

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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 not uncovered and uses same standard formula for different prospects. SDM-Ch.2

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Contd… • Need – satisfaction method • Interactive sales presentation • First find prospect’s needs, by asking questions and listening • Use FAB approach: Features, Advantages, Benefits • Effective method, as it focuses on customers

• Consultative selling method / Problem-solving approach • Salespeople use cross-functional expertise • Firms adopt team selling approach • It is used by software / consulting firms SDM-Ch.2

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Contd… • Team selling method • Uses multi-person sales teams to deal with multiperson buying centres of customers • A Relationship process develops between the sales team and the buying centre • It is very expensive • Used for major s having high sales and profit potential • Used for complex selling situations SDM-Ch.2

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Developing an Effective Presentation Some of the guidelines are: • • • • • • •

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 prospect’s language Make the presentation convincing – give evidence Use technology like multi-media presentation

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Using Demonstration • Sales presentation can be improved by demonstration • Demonstration is one of the important selling tools • EGs: Test drive of cars; demonstration of industrial products in use

• Benefits of using demonstration for selling are: • • • •

Buyers’ objections are cleared Improves the buyer’s purchasing interest Helps to find specific benefits of the prospect The prospect can experience the benefit

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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) turn an objection into a benefit, (c) deny objections tactfully, (d) third-party certificate, (e) compensation. SDM-Ch.2

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6.

Trial close and Closing the sale

• Trial close checks the attitude or opinion of the prospect, 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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Contd… • Techniques used for closing the sale are: (a) alternative-choice, (b) minor points close, (c) assumptive close, (d) summary-of-benefits close, (e) T-, (f) special-offer close, (g) probability close (h) negotiation close SDM-Ch.2

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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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Negotiation • Applicable in B2B selling, negotiated on the basis of prices, payment , 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 on several factors, (c) When the product is customized, (d) When the final price is to be decided

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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 SDM-Ch.2

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THE END

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