Personal Selling:Preparation and Process

Salesperson : Activities

Selling activitiesNon Selling activities (preparation of sales

reports, collecting payments, obtaining market information, travelling and waiting to see customers)

The Personal Selling Process

PROSPECTING AND QUALIFYING

APPROACH

FOLLOW UP

SERVICE

CLOSING THE SALE

OVERCOMING OBJECTIONS

PRESENTATION AND DEMONSTRATION

PRE-APPROACH (Precall Planning)

Prospecting

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

A prospect is not the same as sales lead. Methods of prospecting or sales lead

generation are: (1) referrals from existing customers, (2) company sources (website, ads., tradeshow,

teleprospecting), (3) external sources (suppliers, intermediaries,

trade associations), (4) salespersons’ networking, (5) industrial directories, (6) cold canvassing

Qualifying

Companies qualify sales leads by contacting them by mail or phone to find their interests (or needs) and financial capacity.

Necessary conditions for probable prospect:1. Probable prospect should have need2. Probable prospect should afford to buy Leads are categorized as: Hot prospects, Warm prospects and Cool

prospectsHot (good requirements), Warm (medium requirements), Cool (low requirements)

It usually takes about four calls to convert an initial enquiry into sales.

Pre-approach

Information gathering about the prospect Sources of information: Internet, industrial

directories, government publications, intermediaries, annual reports, trade magazines, suppliers etc.In-depth information about the customer makes salesperson confident.

Planning the sales call• Setting call objectives• Planning the sales strategy: - Date, Time, products, features and benefits may

meet the customer needs - Adaptive selling (modification to selling

objectives or plans)

Approach

Make an appointment to meet the prospect Make favorable first impression Select an approach technique:

1. Introductory (name, company’s name, greeting and a firm handshake)

2. Customer benefit (Identify one major buying motive)3. Product (Useful when product is new -

Presentation/Demonstration)4. Question (Two way communication – make the prospect

curious about the product)5. Praise

The approach takes a few minutes of a call, but it can make or break a sale

The approaches like free gift may not be liked by some prospects and may violated the ethical guidelines.

Presentation and Demonstration

There are four components:1. Understanding the buyer’s needs - Situational questions, Problem identification

questions, Problem impact questions, Solution value questions, Confirmation questions.

2. Knowing sales presentation methods / strategies

3. Developing an effective presentation4. Using demonstration as a tool for selling

a. Understanding the buyer’s needsSituational questions : Questions about the

prospects current situation or any facts the salesperson needs

Problem identification questions : Uncover the customers problems

Problem impact questions : Make the buyers realize the impact or consequences of the problem and the need to solve the problem

Solution value questions : Help the buyer assess the value or usefulness of a solution

Confirmation questions : for eg Would you be interested to know how our service can minimize the errors in your system?

b. Knowing Sales Presentation Methods/Strategies

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, door to door sales

person• Non-technical products

Salesperson Provides Stimuli

BuyerResponsesSought

Continue Process until Purchase Decision

b. Knowing Sales Presentation Methods/StrategiesFormula method / Formulated approach/ Mental state selling.

• It is also based on stimulus response thinking that all prospects are similar.

• Shortcomings are: prospects’ needs are not uncovered and uses same standard formula for different prospects.

b. Knowing Sales Presentation Methods/Strategies (Continued)

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

Uncover and Confirm Buyer Needs

Present Offering to Satisfy Buyer Needs

Continue Selling until Purchase Decision

b. Knowing Sales Presentation Methods/Strategies

• Team selling method - Group presentation

c. Developing an Effective Presentation

Some of the guidelines are:Plan the sales callAdapt presentation to the situation and personBenefit PlanDon’t OverloadUse the prospect’s languageMake the presentation convincing – give evidenceUse technology like multi-media presentation

d. 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

Planning and conducting demonstration by rehearsing with colleagues.

Contingency plan in case of power failure

Overcoming Sales Objections / Resistances

Objections/ Resistance/ Oppositions 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:

(a) ask questions, (b) turn an objection into a benefit,

(c) deny objections tactfully, (d) third-party certificate,

(e) compensation (benefits)

Trial close and Closing the sale

Trial close checks the attitude or opinion of the prospect, before closing the sale (or asking for the order)

If the response to trial close question is favorable, then the salesperson should close the sale.

Buying Signals: - Examining product, asking for another’s opinion,

asking questions , being friendly.Some of the techniques used for closing the sale

are: (a) alternative-choice, (b) minor points, (c) assumptive, (d) summary-of-benefits, (e) T-account, (f) special-offer, (g) probability and (h) negotiation

Closing techniques(a) alternative-choice (prospect is given the choice)(b) minor points (payments in installments, colour,

model)(c) Assumptive (starring to wrap, getting credit card

machine, asking would you like to take it with you )(d) summary-of-benefits, (e) T-account- balance sheet close(Assets and

Liabilities)(f) special-offer(g) probability (I will think about it – Please let me

know what is the probability)(h) Negotiation (both of us win)

Negotiation

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 decidedHow to prepare for negotiation?

(a) planning, (b) building relationship, (c) purposeStyles of negotiation

(a) I win, you lose, (b) Both of us win (or win-win style),

(c) You win, I lose, and (d) Both of us lose

Follow-up and Service

Necessary for customer satisfactionSuccessful salespeople follow-up in different

ways: For example,• Check customer order• Plan follow-up visit at the time of delivery• Account penetration• Relationship marketing

Selling Process in Asian Paints

Selling Process in ICICI BANK

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