Chapter 2

Personal Selling:

Preparation and Process

Prepared By: Mr. Nishant Agrawal

Learning Objectives

• To understand psychology in selling, buying decision

process and buying situations

• To learn communication skills, sales knowledge, and

sales related marketing policies

• To understand personal selling process

• To learn about negotiation

Psychology in Selling

• If a sales person makes a presentation, the prospect may or

may not buy

• The above “buyer behavior 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 behavior,

including buying process and situations

Sales PresentationResponse

(buy or no buy)Buyer’s decision making process

Buyer Decision Process

Need recognition

Need recognition

Informationsearch

Informationsearch

Evaluation ofalternatives

Evaluation ofalternatives

Purchasedecision

Purchasedecision

Postpurchasebehavior

Postpurchasebehavior

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 recognition2. Characteristics and quantity3. Specification development

2. Information search / collection Low involvement High involvement

4. Supplier search and qualification5. Obtain and analyze supplier

proposals

3. Evaluate alternatives 6. Evaluation and selection of suppliers

4. Purchase decision Attitude of others Unanticipated situational

7. Selection of purchase order routine

5. Post – purchase behaviour 8. Performance feedback and post-purchase evaluation

Buying Situations Faced

Household customers Business Buyers

• Routine decision-making

(Do not go thought all five step)

Ex. Milk, bread, grocery etc)

• New task / New purchase

Ex. CRM Software

• Limited decision-making

(Seek for more information)

•Ex. T.V

• Modified rebuy / change in

supplier

• Extensive decision-making

(Highly involved)

Ex. Home, car, property

• Straight rebuy / Repeat purchase

Sale Knowledge and Sale Related Marketing Policy

Sales Knowledge Marketing Policies

• Company knowledge (Growth,

policy)

• Pricing and Payment policies

• Product knowledge • Product policies

• Customer knowledge • Distribution policies

• Competitor knowledge (SWOT) • 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

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.

1 2 & 3

456

Selling Process

• Prospecting: Identifying likely new customers– Leads– Developing lists of Potential Customers

Pre-approach (Qualifying)Finding and analyzing

information about prospectsEvaluating a prospect’s

potential

Prospecting

• It is an individual , a family who needs the product or service a

salesperson is selling and has ability to buy

• Methods of prospecting or sales lead generation

(1) Referrals from existing customers

(2) Company sources (website, advertisement)

(3) External sources (suppliers, intermediaries, etc),

(4) Salespersons’ networking,

(5) Industrial directories

Qualifying

• To meet the necessary standard or condition to receive further

attention.

•Companies qualify sales leads by contacting them by mail or

phone to find their interests (or needs).

–Hot : Good Requirement of company’s Product & handed over to

salesperson to convert them to company’s customer.

–Warm: Medium requirement , telemarketing team for follow up

–Cool: low requirement, kept pending and follow in future

Continue..

• Sales people get more than 80% of buyers

business if they follow up a sale equity, as

compare to 40% if they do not follow

Approaching The Prospect

How do we make the Initial Contact & Build Report

There is only one time to make a first impression

&3

Approach , Presentation & Demonstration

Preapproach

• Information gathering about the prospect / vision

Sources of information: the Internet, industrial directories,

government publications, intermediaries, etc.

• Precall planning

• Setting call objectives

• Tentative planning of sales strategy: which products,

features and benefits may meet the customer needs

Approach

• Make an appointment to meet the prospect

• Make favorable first impression

• Select an approach technique:

• Introductory

• Customer benefit

• Product ( If the product is unique, salesperson carry new product)

• Question

• Praise Approach

Presentation and Demonstration

There are four components:

1. Understanding the buyer’s needs

2. Knowing sales presentation methods / strategies

3. Developing an effective presentation

4. Using demonstration / exhibition as a tool for selling

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 & impact questions

are important

E.G. Have you experienced any problems on quality and delivery

from the existing supplies?

Knowing Sales Presentation Methods/Strategies

Firms have developed different methods / styles / strategies of sales presentation

•Response method / canned approach.

• The sales person talks without knowing the prospect’s needs. E.G. Used by tele-

marketing people

• Formula method / mental states selling

• The salesperson uses a standard formula – AIDA (attention, interest, desire, and

action). It is used if time is short

• Advantage: Salesperson has to plan sales presentation and understand

customer's mental stage.

• Disadvantage: Customer’s need are not understood , so less effective

• Attention

– Favorable 1st impression created by pope dress, smile, cheerful

expression etc

• Interest

– Salesperson find out which factor of product attract and Carry product,

CD

• Desire

– Buyer raise some objective which need , discuss how to overcome this

objective

• Action

– If yes then salesperson asks for order and if No then salesperson

continue with presentation to fully convince prospect

AIDA Model / Stage

Sales Presentation Methods (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

• Consultative selling method / Problem-solving approach

• Salespeople use cross-functional expertise

• Firms adopt team selling approach

• It is used by software / consulting firms

FAB Approach

Product / Service

Feature Advantage Benefit

Ceiling Fan Ceiling Fan has

two ball bearing

Because of ball

bearing , ceiling

fan make hardly

any noise and

have longer life.

Ceiling fan can be

used in the class

rooms where

noise level should

be low as needed

by you.

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

Demonstration

• Sales presentation can be improved by demonstration. Independent.

Demonstration is one of the important selling tools Ex: Test drive of

cars

• Advantage: Reduce risk and prove benefit of product

• Benefits of using demonstration for selling are:

• Buyers’ objections are cleared & their Questions are answered

• Improves the buyer’s purchasing interest

• Helps to find specific benefits of the prospect

Overcoming Objections– Questions– Reservations

• Understand Concern

• Counterarguments

• Acknowledge concern

• Clues to process

Selling Process

Overcoming Objections

IF HE HADN’T TOLDME WHAT HIS OBJECTION

WAS, I NEVER WOULDHAVE BEEN

ABLE TO HELP!

Overcoming Sales Objections / Resistances

• Objections take place during presentations / when the order is

asked

• Two types of sales objections:

1. Psychological / hidden : preference of brand

2. Logical (real or practical): high price, product quality &

Availability

• Methods for handling and overcoming objections:

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

objections tactfully, (d) third-party certificate, (e) compensation

Closing the Sale

• Closing signals

• Trial close

• Asking the prospect to buy

Selling Process

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 are 1) Examine product 2) Asks Questions 3)Become

friendly 4) Asks another person’s opinion

• Some of the techniques used for closing the sale are: (a) alternative-

choice, (b) minor points, (c) summary-of-benefits, (d) special-offer, (e)

probability, and (f) negotiation

Following Up• Commitments met

– Shipment– Performance

• Satisfied customers rebuy & recommend

Selling Process

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

Negotiation

• Salespeople, particularly in business to business selling, need negotiating

skills

• 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 customised, (d) When the final price is to be

decided

• 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,

and (d) Both of us lose

• Transactional Selling

• Relationship Selling

• Value Added Selling

End of Session