PERSONAL SELLING

Personal Selling consists of contracting prospective buyers of a product personally. Personal Selling, along with other marketing elements such as pricing, advertising, product development and research, and physical distribution, is a means for implementing marketing programs.

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PERSONAL SELLING
Personal selling occurs where an individual salesperson sells a product, service or solution to a client. Salespeople match the benefits of their offering to the specific needs of a client. Today, personal selling involves the development of longstanding client relationships.
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PERSONAL SELLING
In comparison to other marketing communications tools such as advertising, personal selling tends to: Use fewer resources, pricing is often negotiated. There is some contact between buyer and seller after the sale so that an ongoing relationship is built. Client/prospects need specific information. The purchase tends to involve large sums of money.
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Selling Process

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FOLLOWING UP TRIAL CLOSE/CLOSING THE SALE HANDLING OBJECTIONS SALES PRESENTATION & DEMONSTRATION APPROACHING THE PROSPECT

Pre approach: PRECALL PLANNING

PROSPECTING & QUALIFYING
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The Personal Selling Process

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SELLING PROCESS
The Prospector Has the Most Challenging Sales Career

PROSPECTING
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This is the order getter who: Finds a lead Converts the lead into a prospect Sells one day, and Sells in the future too WOW! That is a challenge
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SELLING PROCESS
Prospect:
PROSPECTING
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An individual, a family, or an organization. Identifying likely new customers Developing lists of Potential Customers

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ProspectingThe Lifeblood of Selling

PROSPECTING
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Prospect qualified person Prospecting Identifies potential customer Lead only know name

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TABLE 1.1: Prospecting/Lead

Generating Methods

Prospecting Method
Referrals from existing customers

Brief Description
Requesting existing customers to suggest the names of prospects. Company advertising, direct mail, website, trade shows & tele-prospecting activities. Suppliers, intermediaries, bankers, trade associations, commercial vendors. Salespersons become members of civic/social organizations like Lions Club, Rotary Club to meet new people. Yellow pages published by government & private publishers. Unannounced calls by salespeople on firms that may need the product/service the salesperson sells. Costly & time consuming.
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PROSPECTING
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Referrals from internal company sources

Referrals from external sources Networking by salespersons

Industrial directories Cold canvassing

SELLING PROCESS
The lead or the prospect is treated as qualified when they meet the essential standards or conditions to receive further attention. Qualified prospect is MAD -- Money to buy? --Authority to buy? --Desire to buy?

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QUALIFYING

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SELLING PROCESS
The leads, after qualifying, are placed in 3 groups: 1. Hot Prospects: --have good requirements of the companys products --financially sound --are converted into the companys customers

QUALIFYING
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SELLING PROCESS
2. Warm

QUALIFYING

Prospects: --have medium/average requirements --financially sound --handed over to companys telemarketing team for follow-up.

3. Cool Prospects: -- have low requirements -- financially weak -- handed over to the companys intermediaries or kept in pending list for future follow-ups.
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SELLING PROCESS
Finding and analyzing information about prospects.
-- its business, location of plants, industry in which operating. -- products and services, -- purchasing practices, -- names & background of people who make buying decisions.

PREAPPROACH
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Sources: internet, trade magazines, industrial directories, govt. publications, existing customer or suppliers.

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SELLING PROCESS
Planning the sales call
-- setting objectives for the sales calls -- planning the sales strategy. * finding out when and who to approach by phone call. * adaptive selling (tentative planning of the sales strategy made
at this stage may have to be changed later on after gaining the information based on the actual calls made.)

PREAPPROACH
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Tips for effective results

The salespeople should introduce themselves and the company They should elaborate the purpose of the visit in a concise manner. They should not spend much time if the purpose of the visit has already been communicated to the prospect They should pronounce the name of the prospects correctly The salespeople should wear neat and tidy formal clothe and avoid dressing in loud colours. They should be smartly dressed and knot the tie properly, if wearing one They should hand a clean business card to the prospects. The cards should be well-designed and made on glossy stocks. They should wait for the prospects to take the initiative to shake hands

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Tips for effective results

The salespeople should not to be seated until requested to They should take the initiative to start off a conversation and allow time to the prospect to talk. They should listen patiently and constructively to know what the prospects have in mind The salesperson should be seated in a normal posture while leaning forward towards the prospect They should avoid making hasty and excited gestures and interactions. Salespeople should be soft spoken, well-mannered, and should try to follow a pre-designed route of discussion They should concentrate on building relations at the preliminary stage as it removes the initial barrier of relational tension between two strangers They should remember to congratulate the prospect for any achievement or recent promotion
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Tips for effective results

They should not lose an opportunity to mention the name of a satisfied company or customer, whose identity will impress the prospect The salespeople should look at the belongings, furniture and fixtures, books, statues, photographs in the prospects room to get an idea of the prospects taste, preference, and culture They should try and gauge whether a prospect has a real need for the product; is dissatisfied with the present supplier; the grounds of dissatisfaction with the present supplier; and has an actual buying criteria in order of importance Salespeople should not get disheartened in case of rejection. Believe that every lost opportunity can bring forth a new opportunity in future. They should not forget to say thank you even in case of rejection
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Tips for effective results

They should try an establish rapport by-- Citing the names of common acquaintances, if any Mentioning the names of referrals, say a current customer. It stands in good stead, in case the prospects know the current customer Spending some time on non-business talk particularly on the areas of interest of the prospects

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SELLING PROCESS
Approach is making an appointment to see the prospect

APPROACH
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SELLING PROCESS
HOW DO WE MAKE THE INITIAL CONTACT & BUILD RAPPORT

APPROACH

There is only one time to make a first impression

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SELLING PROCESS
TABLE 1.2 DIFFERENT APPROACH TECHINQUES
NAME OF THE TECHNIQUE BRIEF DESCRIPTION INSTANCES/APPLICATION

Introductory approach

Salesperson states his/her name & companys name, preceded by a smiling greeting & a firm handshake. Mostly presenting business card.

Good morning, Mr. X, I am Y from reliance co. thereafter the business card is presented.

APPROACH

Customer benefit approach

The salesperson should identify By converting your existing one major buying motive (benefit) insurance policy to our new that generally a prospect has & insurance plan, you can get appeal to it. Rs. 2 lacs more coverage at the same price you are paying now. This technique is useful if the product is new, unique, or colourful. The sales person hands over the new bottle of Coke to the retailer and waits for the retailer to begin the conversation.
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Product approach

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SELLING PROCESS
NAME OF THE TECHNIQUE BRIEF DESCRIPTION INSTANCES/APPLICATION

Question approach

The salesperson asks a Questions like: what question to start a two-way benefits you want most in a communication or to make new washing powder? the prospect curious about the product or service. An indirect praise conveyed sincerely and subtly can have a positive impact on the prospect. Your office is so well designed and comfortable that I would remember it when we design our new office, or Congratulations on your promotion to branch manager.

APPROACH
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Praise approach

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SELLING PROCESS
Steps to be undertaken before sales presentation: (A)UNDERSTANDING THE BUYERS NEEDS (By asking questions)
SPIN Selling

PRESENTATION
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Situational questions: (about its current situation) Ex: who are involved in buying decision making for this P/S? or Are you buying this P/S for the first time or making a change from the existing supplier?

Problem identification questions: Ex: Have you experienced any problems on quality or delivery from the existing suppliers? Or which parts of existing system create errors?

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SELLING PROCESS
Implication questions: Ask about the consequences or effects of a buyers problems, difficulties, or dissatisfactions. Ex: what impact the quality and delivery problems will have on your costs and customer satisfaction?

PRESENTATION
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Need-payoff questions (Solution value questions): Ex: How much would you save if our company could help reduce the errors by 80%.

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SELLING PROCESS
(B) KNOWING SALES PRESENTATION METHODS (i) Stimulus response method: (canned approach)

PRESENTATION
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It assumes that if right stimuli i.e sales presentation is done, favourable response may be ascertained. Salesperson does most of the talking. Exhibit/presents entire attributes of product without knowing the needs of the prospect. It is used by telemarketing people, door-to-door salespersons etc. Product of non-technical nature.

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SELLING PROCESS
(ii) Formula Method: (formulated approach or mental states selling) Method is useful when the customer is familiar with the products or services of the salespersons company or when the salesperson is aware of the buyers needs. It has four stages: (AIDA ) Attention Interest Desire Action

PRESENTATION
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SELLING PROCESS
GAINING ATTENTION

PRESENTATION
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Favorable first impression ( proper dress, neatness, genuine smile and cheerful expression of admiration or arousal of customers curiosity).
Favorable comments about the prospect or their business.

Objective is to put the prospect into a receptive state of mind.

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SELLING PROCESS
HOLDING INTEREST By identifying which aspect (s) or factor (s) of the P/S appeals the prospect. Various methods used are: carrying product sample, carrying visual aids like CD, product leaflet, photographs .

PRESENTATION
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SELLING PROCESS
AROUSING DESIRE It aims at arousing inner desire of wanting to have P/S. Sales presentation along with demonstration is used to show how there P/S solve buyers problem. Drawback: Noises (ex: phone calls)

PRESENTATION
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SELLING PROCESS
OBTAINING ACTION Indicates buying action or closing the sale. Trial close is tested. If YES salesperson asks for the order. If NO, salesperson continues with the presentation to convince the prospect.

PRESENTATION
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SELLING PROCESS
(iii) Need-satisfaction method.

PRESENTATION
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Starts with understanding the buyers needs by asking questions. It is a creative form of selling.

Provide sales presentation & demonstrate to show how his/her P/S can solve the buyers problem better than that of a competitor.

Deals with FAB approach.

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SELLING PROCESS
FAB approach

PRESENTATION

(F)eatures:

our ceiling fan has two ball bearings.

(A)dvantages: because of the ball bearings, our ceiling fans make hardly any noise and have a longer life.

(B)enefits:

our ceiling fans can be used in the class-rooms where noise level should be low as needed by you.

---------------------------------------------------------------------------------------(V)alue: the describe the worth (often in monetary terms) of Dr. 33 offering.Ashutosh Kumar

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SELLING PROCESS
(iv) Team Selling Method Modern form of personal selling Involves multi-person sales teams to deal with multi-person buying centers (buying committee) of their customers.
Sales Team
Major accounts executive Technical support engineer Logistics executive Information system executive Finance executive
Exchange/Rela tionship Process

PRESENTATION

Buying Centre
Purchase/materials executive Operations manufacturing executive Logistics/supply chain executive Materials manager Finance executive
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Not recommended in all selling situations. Expensive. Useful for major accounts having high sales and profit potential. Conducive for complex selling situations, customized products and services, long-term contracts, or new customers. Decision to use sales teams depends on the needs of the buyer. Ex: IBM, WIPRO, HP etc.

PRESENTATION
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SELLING PROCESS
(v) Consultative Selling Method (Problem-Solution presentation) Helps to meet/achieve strategic goals of the customers besides solving their problems (such as: enhancing business performance, setting up quality framework, or creating value for their clients) and meeting their needs.

PRESENTATION
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Work in collaborative relationship with the customer.

Companies like WIPRO uses this method.

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Consultative Selling Method

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SELLING PROCESS
Successful Consultative Selling required: In-depth knowledge of the customers company, industry and detail analysis of the problems/needs.

PRESENTATION
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Aware of key members of the customers buying center.

Prepare proposal for solving buyers problems.

Use of cross-functional expertise.

Develop long-term partnership/relationship.

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SELLING PROCESS
(C) DEVELOPING AN EFFECTIVE PRESENTATION Planning Advanced Technology Adapt Presentation Effective Communication Dont Overload Simple Language Convincing

PRESENTATION
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SELLING PROCESS
Demonstration highlight the benefits of the product and reduce the risk of a wrong purchase to the buyer. Useful for light and simple product. Demonstration aids: product samples, visual aids (movies & audio and video cassettes), booklets and brochures for reference. Benefits: -- Buyers doubts or objections get cleared. -- Provides good support to selling process. -- Helpful to compare it with that of competitors product.

DEMONSTRATION

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SELLING PROCESS
Two types of objections:
1) Psychological (hidden): Includes
-- predetermined ideas or beliefs,

OBJECTIONS

-- preference for established brands -- dislike of making decisions -- anxiety or resistance to spend money

Logical (practical or real) includes:

-- quicker delivery schedules -- high price -- product quality or product availability

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SELLING PROCESS
Methods for overcoming objections Ask the questions

OBJECTIONS
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Prospect-- The price of your product is higher than your competitor

Sales person Ya I know that, but do u want to know why it is so?

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Establish Value: The customer weigh the price & value in opposite scale
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SELLING PROCESS
Turn an objection into a benefit
Prospect The delivery period of four weeks for your equipment seems to be too long, as we need it in about two weeks

OBJECTIONS
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Sales person Thats true, but this equipment is specially designed and manufactured to your specific needs. With four weeks delivery, we can do installation in less than one week, so that over all it would be five weeks or earlier. Its that OK with you? (Trial Close).
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Turn an objection into a benefit

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SELLING PROCESS
Deny Objections Tactfully
Prospects-- I dont want to buy your bike, because a friend of mine told me that he had a lot problems when he purchased your newly launched vehicle one years ago. Sales person Yes, I agree, but now all those problems have been solved both at our factory and even customers premises free of cost. You can check with your friend now but about the performance of the vehicle. If he gives you a good opinion, would you buy our car?
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OBJECTIONS
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Deny Objections Tactfully

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SELLING PROCESS
Third Party Certificate
If the prospect raises some doubts about the product, the third party experiences are shared as a proof or testimony. But, one should get the prior approval from such customers.

OBJECTIONS
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SELLING PROCESS
Compensation (benefits)
Reliance Industries were considering to buy certain material handling equipment for the first time for their factories in Gujarat from a manufacturer, located in Karnataka. Reliance raised an objection to know how the manufacturer would ensure efficient warranty service and after-sales service. The manufacturer's senior marketing executive promised to station one service engineer at the premises. This assurance satisfied the customer, who placed an order initially for a small value with an assurance to place substantial value of orders subsequently.
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OBJECTIONS
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SELLING PROCESS
-- Trail

Close checks the attitude, or asks the opinion of the

prospect. -- Favourable response leads to Close the sale. -- Negative response shows sales presentation and demonstration or FABapproach was not effective. Hence, again presentation.

TRIAL CLOSE/ CLOSING THE SALE

-- Closing the Sales means asking for the order. -- It is the process that helps buyers to make a buying decisions. -- some of the buying signals are as follows:@ Examines the product @ Asks another persons opinion @ Ask questions @ Be friendlyDr. Ashutosh Kumar with him
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SELLING PROCESS
CLOSING TECHNIQUES
(a) Alternative-choice close (b) Minor points close (c) Assumptive close

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(d) Summary-of-benefits close (e) T-account (balance sheet close) (f) Special offer close (g) Probability close (h) Negotiation close

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SELLING PROCESS
Alternative-choice close

TRIAL CLOSE/ CLOSING THE SALE

Eg: Which

among the four colors do you prefer?

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SELLING PROCESS
Minor points close
Questions are asked in quick succession

TRIAL CLOSE/ CLOSING THE SALE

Eg: If you buy this office equipment, which model would you prefer? How soon would you like it to be delivered? would you like to pay on installment basis?

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SELLING PROCESS
Assumptive close
This technique is effective when the TRUST between salesperson and buyer developed. Salesperson assumes that the prospect will buy and conveys his assumption through certain comments such as:
Verbal action: Would you like to take it with you or have it delivered?

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Non-Verbal action: start wrapping the package, or getting out credit card charge-plat machine.

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SELLING PROCESS
Summary of benefits close
This technique is popular, simple and straightforward. Example:
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The vaccum-cleaner salesperson could say, Our vaccum-cleaner has a high efficiency rating (feature), due to which it uses less electricity (advantage), which results in 20% saving in your electricity bill (benefit). Thats good isnt it? (trial close). If the response is favourable, the salesperson says, when do you want the delivery- this week or next week?.
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SELLING PROCESS
T- account (or modified T-account) or Balance Sheet close
To act (Assets)

Not to act (Liabilities)

TRIAL CLOSE/ CLOSING THE SALE

Time saving More models Less efforts Easy installment payment Immediate delivery

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SELLING PROCESS
Special offer close
Ex:

TRIAL CLOSE/ CLOSING THE SALE

if you buy this electric sandwich maker today, I can give you a discount of 3%, because I can reach my monthly quota.

if you buy two sets of Dictionary, I can provide you third set free of costs.

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SELLING PROCESS
Probability close
This technique is used if such comments is there:

I will think it over I will let you know

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Salesperson: Please tell me what is the probability in %age terms out of 100 that next week when I call you back, you will take the decision of buying.

if PROBIBILITY > 50% for buying, real objection converted into closing sales. if PROBIBILIY < 50% for buying, closing the sale is low.
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SELLING PROCESS
Negotiation close
Major skills & qualities required for effective negotiation: Planning--- Subject knowledge- Listening--- Patience ---Communication Intelligence--- Clear thinking--- Integrity trustworthiness.

TRIAL CLOSE/ CLOSING THE SALE

When to negotiate?
a) Conditions are placed by the customers. (if you will reduce the price of your product by 8%, I will buy.)

b) Negotiation/agreement on some factors: price, delivery, quality and payment terms.

c) Zone of agreement.
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SELLING PROCESS
Negotiation close
Style of negotiations

I win, you lose

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both of us win you win, I lose both of us lose

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Delighted Customer
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SELLING PROCESS
Follow-up
1) Check customer order 2) Plan follow-up visit at the time of delivery
TRIAL CLOSE/ CLOSING THE SALE

3) Account penetration 4) Relationship marketing

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SELLING PROCESS
Follow-up
Example: Crompton Greaves launched its new table fan in

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Mumbai in 1973 with a lot of fanfare in a five-star hotel. On the next day of the launch, dealers complained about improper oscillation of the new fan. The area sales manager and his sales force, along with a team of technical people from the manufacturing unit of the company immediately swung into action, detected the minor fault, and repaired all those fans. This restored the confidence of the dealers to sell the new product, as the complaint was handled promptly.

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Exhibit :The Parallel Dimensions of Selling

Discussion Sequence
Discuss Product
Show Feature Explain Advantage Lead into Benefit Let Customer Talk

Selling Process
Prospecting Preapproach Approach

Money Authority Desire

Buyers Mental Steps

Attention Interest

Present Marketing Plan Presentation

Discuss Product Present Marketing Plan Explain Business Proposition Suggest Purchase Availability, Delivery, Guarantee, Merchandising, Installation, Maintenance, Promotion, Training, Warranty

Presentation Desire Trial Close Determine Objections

Explain Business Prop

List Price, Shipping Cost, Discounts, Financing, ROI, Value Analysis

Meet Objections

Conviction

Trial Close Suggest Purchase

Product, Quantity, Features, Delivery, Installation, Price

Close Follow-up & Service

Action
(Purchase)

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SELLING PROCESS

Keep Selling

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