PERSONAL SELLING AND SALES MANAGEMENT Alokesh Banerjee

PERSONALSELLING

AND SALES MANAGEMENT

Alokesh Banerjee

Definition of Personal Selling

Personal selling –1) two-way flow of communication2) between a buyer and seller3) a face-to-face or real time encounter

Why are “ face to face” and “two-way” important?

• Provides a detailed explanation or demonstration of product

• Message can be varied to fit the needs of each prospective customer

• Can be directed to specific qualified prospects

• Instant feedback

• Personal persuasion can be used

“A good salesman can get you to buy ice in winter”

Advantages of Personal Selling

When to Use Personal Selling

Customers are concentratedCustomers are concentrated

There are few customersThere are few customers

Product is technically complexProduct is technically complex

Product is custom madeProduct is custom made

Product has a high valueProduct has a high value

Selling image, not productSelling image, not product

Creating Value Through Salespeople

Relationship Selling

building ties to the customer, based on a salesperson’s attention and commitment to customer needs over time.

1) Prospecting2) Pre-approach

3) Approach4) Presentation

5) Close6) Follow-Up

Six stages of Personal Selling

Personal Selling: Prospecting

Prospect- possible customer

Qualified Prospect-customer who has desire, means and power to decide

Cold Canvassing- seller initiated contact of,potential customers without advance warning.

3) Approach-First meeting (Physical impressions highly important-

appearance, timeliness, confidence)

2) Pre-approach-Gathering information (when to call, income level, risk tolerance)

Personal Selling: Pre- Approach & Approach

Personal Selling:Presentation

A) Stimulus-Response Format – (suggestive selling)keep suggesting items until the buyer responds, like theMcDonalds order taker

B) Formula Selling Format – more formal and planned, like a telemarketer

Canned Selling Presentation

Memorized, standardized message conveyed to every prospect.

Works when seller is a novice or does not know the buyer well

Personal Selling: Presentation

Need-Satisfaction Format- Let the customer do the talking- Salesman probes, listens then suggests, like a financial planner

• Adaptive Selling- pro-active but selective presentation of offerings, based on pre-approach data

• Consultative Selling – re-active presentation for problem solution

Personal Selling: Presentation

Handling Objections

• Acknowledge and Convert the Objection- use the objection as a reason to buy (expensive) •Postpone hold off answer because next info will convince buyer

(complicated)

•Agree and Neutralize show the objection’s insignificance (side effects)

•Denial refute objection with clear facts

Personal Selling: Close

• Trial Close-”Can I put you down for blue or green?”

•Assumptive Close-ask about delivery or warranty choices.

• Urgency Close-”Offer valid for today only.”

• Final Close-Buyer initiated acceptance of the sale.

Address concerns with delivery and installation,

so today’s customer becomes tomorrow’s

qualified prospect or referral source

Personal Selling: Follow-Up

Sales Force Motivation

• Compensation

• Straight Salary Compensation Plan

• Straight Commission Compensation Plan

• Combination Compensation Plan

Sales Force Evaluation

Quantitative Assessments – sales quotas easy but ignores selling environment

•attitude•attention• product knowledge•selling skills•appearance and professionalism

Qualitative Assessments – behavioral evaluations

Personal selling involves the

two-way flow of communication between a buyer and seller, often

in a face-to-face encounter, designed to influence a person’s or

group’s purchase decision.

Personal selling involves the

two-way flow of communication between a buyer and seller, often

in a face-to-face encounter, designed to influence a person’s or

group’s purchase decision.

Personal Selling

The personal selling process consistsof six stages: (1) prospecting,(2) preapproach, (3) approach,(4) presentation, (5) close, and

(6) follow-up.

The personal selling process consistsof six stages: (1) prospecting,(2) preapproach, (3) approach,(4) presentation, (5) close, and

(6) follow-up.

Personal Selling Process

Adaptive selling involves adjustingthe presentation to fit the selling

situation, such as knowing when to offer solutions and when to ask for

more information.

Adaptive selling involves adjustingthe presentation to fit the selling

situation, such as knowing when to offer solutions and when to ask for

more information.

Adaptive Selling

Consultative selling focuses on problem identification, where the salesperson serves as an expert on

problem recognition and resolution.

Consultative selling focuses on problem identification, where the salesperson serves as an expert on

problem recognition and resolution.

Consultative Selling