PROMOTION AND NEGOTIATION METHODS & SALES

TECHNIQUESFACULTY OF ENGINEERING MANAGEMENT

Ph.D., Eng. Joanna Majchrzak

Department of Marketing and Economic Engineering

Mail: joanna.majchrzak@put.poznan.pl

Meetings: Monday 13:00 – 14:30

Wednesday 11:30 – 13:00

Room 316, Strzelecka Street

Promotion & Negotiation and Sales Technique 1

Schedule1. Introduction & Marketing

2. Marketing Communication & Promotion

3. Promotion decision and tools

4. Sales Technique – Sales Promotion and Personal Selling

5. Sales Technique & Negotiations

6. Negotiations

7. Credit:

- Test (open question The table of contents and case study)

- Classes attendance and activities

Promotion & Negotiation and Sales Technique 2

The table of contents (4) Sales Tachnique: Sales Promotion & Personal Selling

4.1. The steps of selling process

4.2. The customer buying proces

4.3. Sales force management

Promotion & Negotiation and Sales Technique 3

Robert Louis Stevenson once noted that „everyone lives by selling something”

Promotion & Negotiation and Sales Technique 4

Robert Louis Stevenson once noted that „everyone lives by selling something”

• Selling is one of the oldest professions in the world. The people who do the selling go by many names: salespeople, sales representatives, account executives, sales consultants, sales engineers, field representatives, agents, district managersand marketing representatives, to name a few.

• Today, most salespeople are well-educated, well-trained professionals who workto build and maintain long-term relationships with customers. They build relationships by listening to the customers, assessing customer needs and organizing the company's efforts to solve customer problems.

Promotion & Negotiation and Sales Technique 5

Marketing : an introduction / Gary Armstrong, Philip Kotler., Upper Saddle River, NJ : Pearson Education Prentice Hall, cop. 2011.

NEEDS

Robert Louis Stevenson once noted that „everyone lives by selling something”

• From - an order taker, such as a department store salesperson standing behind the counter – to - the order getters, salespeople whose job demands the creative selling of products and services ranging from appliances, industrial equipment or aeroplanes to insurance, advertising or consulting services.

• Other salespeople engage in missionary selling, whereby they are not expected or permitted to take an order, but only build goodwill or educate buyers(salesperson for a pharmaceutical company who calls on doctors to educate them about the company's drug products and to urge them to prescribe these products to their patients or salespeople whose position is to supply technical knowledgeto the buyer, as in engineering salespeople who act as consultants to client companies)

Promotion & Negotiation and Sales Technique 6Marketing : an introduction / Gary Armstrong, Philip Kotler., Upper Saddle River, NJ : Pearson Education Prentice Hall, cop. 2011.

PERSONAL SELLING discriminant• Personal selling involves two-way personal communication between

salespeople and individual customers - whether face-to-face, by telephone, through video conferences or by other means.

• As such, personal selling can be more effective than advertising in more complex selling situations.

• Salespeople can probe customers to learn more about their problems.

• They can adjust the marketing offer to fit the special needs of each customer and can negotiate terms of sale.

• They can build long-term personal relationships with key decisionmakers.

Promotion & Negotiation and Sales Technique 7Marketing : an introduction / Gary Armstrong, Philip Kotler., Upper Saddle River, NJ : Pearson Education Prentice Hall, cop. 2011.

Selling process• The steps that the salesperson follows when selling, which include

prospecting and qualifying, preaaproach, approach, presentation and demonstration, handling obejctions, closing and follow-up.

Promotion & Negotiation and Sales Technique 8Marketing : an introduction / Gary Armstrong, Philip Kotler., Upper Saddle River, NJ : Pearson Education Prentice Hall, cop. 2011.

Selling proces - prospecting and qualifyingSalespeople can:

• ask current customers for the names of prospects,

• build referral sources, such as suppliers, dealers, non-competing salespeople,

• join organizations to which prospects belong, or can engage in speakingand writing activities that will draw attention,

• search for names in newsletters or directories and use the telephone and post to track down leads, drop in unannounced on various offices (a practice known as 'cold calling’).

Promotion & Negotiation and Sales Technique 9

Prospects can be qualified by looking at their financial ability, volume of business, special needs, location and possibilities for sales growth.

Marketing : an introduction / Gary Armstrong, Philip Kotler., Upper Saddle River, NJ : Pearson Education Prentice Hall, cop. 2011.

Case• PRODUCT: http://lycolife.pl/index.php/oferta/?lang=en

For people who are independent in spirit, follow their own path and appreciate not only its unique taste, but also an exceptional style and quality.

Promotion & Negotiation and Sales Technique 10

Prospects can be qualified ….

Company:Name and Surname:Contact data: mobile / mail

Selling process• The steps that the salesperson follows when selling, which include

prospecting and qualifying, preaaproach, approach, presentation and demonstration, handling obejctions, closing and follow-up.

Promotion & Negotiation and Sales Technique 11Marketing : an introduction / Gary Armstrong, Philip Kotler., Upper Saddle River, NJ : Pearson Education Prentice Hall, cop. 2011.

Selling proces - preaaproachThe steps in the selling proces in which the salesperson learn as much as possible about a prospective customer before making a sales.

• learn as much as possible about the organization (what it needs, who is involved in the buying) and its buyers (their characteristics and buying styles)

• set objectives, which may be to qualify the prospect, to gather information or to make an immediate sale

• decide on the best approach, which might be a personal visit, a phone call or a e-mail

• the best timing should be considered, carefully because many prospects are busiest at certain times

• give thought to an overall sales strategy for the account.

Promotion & Negotiation and Sales Technique 12Marketing : an introduction / Gary Armstrong, Philip Kotler., Upper Saddle River, NJ : Pearson Education Prentice Hall, cop. 2011.

Selling process• The steps that the salesperson follows when selling, which include

prospecting and qualifying, preaaproach, approach, presentation and demonstration, handling obejctions, closing and follow-up.

Promotion & Negotiation and Sales Technique 13Marketing : an introduction / Gary Armstrong, Philip Kotler., Upper Saddle River, NJ : Pearson Education Prentice Hall, cop. 2011.

Selling proces - approach• the step in the selling proces in which the salesperson meets and

greets the buyer to get the relationship off a good start

• this opening might be followed by some key questions to learn more about the customer's needs, or the showing of a display or sample to attract the buyer’s attention and curiosity.

Promotion & Negotiation and Sales Technique 14Marketing : an introduction / Gary Armstrong, Philip Kotler., Upper Saddle River, NJ : Pearson Education Prentice Hall, cop. 2011.

CUSTOMER

Selling process• The steps that the salesperson follows when selling, which include

prospecting and qualifying, preaaproach, approach, presentation and demonstration, handling obejctions, closing and follow-up.

Promotion & Negotiation and Sales Technique 15Marketing : an introduction / Gary Armstrong, Philip Kotler., Upper Saddle River, NJ : Pearson Education Prentice Hall, cop. 2011.

Selling proces - presentation• The step in the selling proces where the salesperson tells the product story

to the buyer, showing how the product will make or save money.

• The slaesperson describes the product features, but concentrates on presenting benefits.

• Sales presentations can be improved with demonstration aids, such as booklets, flip charts, slides, videotapes or videodiscs, and product samples.

• If buyers can see or handle the product, they will better remember its features and benefits.

Promotion & Negotiation and Sales Technique 16Marketing : an introduction / Gary Armstrong, Philip Kotler., Upper Saddle River, NJ : Pearson Education Prentice Hall, cop. 2011.

Selling process• The steps that the salesperson follows when selling, which include

prospecting and qualifying, preaaproach, approach, presentation and demonstration, handling obejctions, closing and follow-up.

Promotion & Negotiation and Sales Technique 17Marketing : an introduction / Gary Armstrong, Philip Kotler., Upper Saddle River, NJ : Pearson Education Prentice Hall, cop. 2011.

Selling proces – handling objections• The objection are often unspoken

• The sales person should use a positive approach, seek out „hiddenobjections”

• Clarify objections

• Take objections as opportunit to provide more information and turnthe objection into reason for buying

Promotion & Negotiation and Sales Technique 18Marketing : an introduction / Gary Armstrong, Philip Kotler., Upper Saddle River, NJ : Pearson Education Prentice Hall, cop. 2011.

The buying situation may be characterized as a conflict situation

Force toward eating vs force against spending money(Kurt Lewin)

Selling process• The steps that the salesperson follows when selling, which include

prospecting and qualifying, preaaproach, approach, presentation and demonstration, handling obejctions, closing and follow-up.

Promotion & Negotiation and Sales Technique 19Marketing : an introduction / Gary Armstrong, Philip Kotler., Upper Saddle River, NJ : Pearson Education Prentice Hall, cop. 2011.

Selling proces – closing• The step in the selling proces in which the salesperson ask the

customer for an order

• Obstacles: lack confidence, feel guilty about asking for the order, failto recognize right moment to close the sale

Promotion & Negotiation and Sales Technique 20Marketing : an introduction / Gary Armstrong, Philip Kotler., Upper Saddle River, NJ : Pearson Education Prentice Hall, cop. 2011.

Selling process• The steps that the salesperson follows when selling, which include

prospecting and qualifying, preaaproach, approach, presentation and demonstration, handling obejctions, closing and follow-up.

Promotion & Negotiation and Sales Technique 21Marketing : an introduction / Gary Armstrong, Philip Kotler., Upper Saddle River, NJ : Pearson Education Prentice Hall, cop. 2011.

Follow - up

• The last step in the selling process is necessary if the salespersonwants to ensure customer satisfaction and repeat business.

• Right after closing, the salesperson should complete any details on delivery time, purchase terms and other matters.

• The salesperson should then schedule a follow-up call when the initial order is received to make sure there is proper installation, instruction and servicing.

• The visit in order to reduce any buyer concerns that might have arisen since the sale.

Promotion & Negotiation and Sales Technique 22Marketing : an introduction / Gary Armstrong, Philip Kotler., Upper Saddle River, NJ : Pearson Education Prentice Hall, cop. 2011.

Sales technique

• For over 30 years, marketing research has been seeking to identify an optimal selling method.

• The basic concept is that there is no single best way to sell and that, therefore, salespersons have to adapt to the situation and potential customer (Román & Iacobucci, 2010).

Promotion & Negotiation and Sales Technique 23Industrial Marketing Management 43 (2014) 1085–1095, Value-based sales process adaptation in business relationships, Paul Viio, Christian Grönroos