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M2 Ch1 Persnal Selling Persaption & Prosses
M2 Ch1 Persnal Selling Persaption & Prosses
M2 Ch1 Persnal Selling Persaption & Prosses
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
Stimulus (Sales Presentation) Buyers decision making process Response (buy or no buy)
prospect may or may not buy The above buyer behaviour 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 behaviour, including buying process and situations
Buying process and situations differ for household consumers and business buyers. Consumers / Buyers may skip or reverse some stages in buying process. E.G. A consumer buying toothpaste
Company knowledge
Product knowledge Customer knowledge Competitor knowledge
The sequence of above steps may change to meet the sales situation in hand. We now discuss application of above steps to industrial selling
Prospecting
It is identifying or finding prospects i.e. prospective or
potential customers. 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. Leads are categorized as: Hot, Warm, and Cool
Preapproach
Information gathering about the prospect.
Sources of information: the Internet, industrial directories, government publications, intermediaries, etc. Precall planning
Setting call objectives Tentative planning of sales strategy: which products,
Approach
Make an appointment to meet the prospect Make favourable first impression
Select an approach technique: Introductory Customer benefit Product Question Praise The approach takes a few minutes of a call, but it can make or break a sale
satisfy needs To understand buyers needs, ask questions and listen In business situations, problem identification and impact questions are important
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
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 buyers purchasing interest Helps to find specific benefits of the prospect The prospect can experience the benefit
customers for not purchasing the product after completion of the demonstration by the sales person. It is generally raised while asking the final order. There are two types of objections
Psychological / hidden Logical (real or practical)
problem?) (b) turn an objection into a benefit. ( Convince customer that actually his short term problem is long term benefit) (c) deny objections tactfully. ( refuse objection by some prepare logic in humble manner) (d) third-party certificate. (give reference of the person who has taken your product & he is satisfied)
(e) compensation
(keep comparison of competitors' ready specially when you feel that objections are coming because of the competitors' product)
prospect, before closing the sale (or asking for the order) If the response to trial close question is favourable, then the salesperson should close the sale Some of the techniques used for closing the sale are: (a) alternative-choice, (b) minor points, (c) assumptive, (d) summary-of-benefits, (e) Taccount, (f) special-offer, (g) probability, and (h) negotiation
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 customized, (d) When the final price is to be decided How to prepare for negotiation? (a) planning : Gather the information about almost all aspects about competitors' product, including the price of the product, after sales service, flexibility in the payment terms, maximum limit of the discounts etc. (b) building relationship: Use the available time to build good relationship with customer not to have just a good relation but also to get certain information about the need of the customer. Many times sales person wins the deal just because of good relations.
(c) purpose: The purpose of the negotiation may be several & depends on the situation & demand of the time but mainly it takes place to have one common price point of the product.
Styles of negotiation
(a) I win, you lose, (b) Both of us win (or winwin style), (c) You win, I lose, and (d) Both of us lose
The best style of negotiating is win- win style, which is generally used to have deal with customers, suppliers even some times with
has to take care that this negotiation should not be converted in to the EGO oriented debate if it is being so they have to adopt the You win I lose strategy The sales people should recognize the customer uses I win u lose strategy.
The buyer starts with tough demands & ridicules offer. The buyer raises the voice The buyer ignores the time deadline
above if sales person tries to convert above situation in to win-win situation & he fails than some times a sales person also have to take
opposition to the prospects demand. He must explain that why he is holding his position & not able to fulfill customers demand A sales person should also explain that how customer will be having loss by not making this deal done.
All this points are difficult to remember & apply while doing practical sales call but one can have the efficiency in it by practicing for the same.