Professional Documents
Culture Documents
Personal Selling Process
Personal Selling Process
SDM-Ch.2
Psychology in Selling
Stimulus (Sales Presentation) Buyers decision making process Response (buy or no buy)
If a sales person makes a presentation, the 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
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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
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Company knowledge
Product knowledge Customer knowledge Competitor knowledge
Major reasons for giving above information / knowledge through training programmes to salespeople are: Increase their Self-Confidence Meet customers expectations Increase sales Overcome competition
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Approach
The sequence of above steps may change to meet the sales situation in hand Some of the above steps may not be applicable for selling to the trade
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1. Prospecting
It is identifying or finding prospects i.e. prospective or potential customers. Methods of prospecting or sales lead generation are:
Referrals from existing customers, Referrals from company sources (website, ads., tradeshows, teleprospecting), Referrals from external sources (suppliers, intermediaries, trade associations), Salespersons networking, Industrial directories, Cold canvassing.
1. 2. 3. 4. 5. 6.
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Qualifying
Important that lead is qualified (meet standards or conditions) 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 Good requirements Medium requirements Low requirements Financially sound Financially sound Not good capacity Handled by salespersons Handled by Telemarketing team By companys intermediaries
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COLD
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2.
Pre-approach
Includes 2 tasks:
1. Information prospect gathering about the
2. Precall planning
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a.
Sources of information: the Internet, industrial directories, government publications, intermediaries, trade magazines, chambers of commerce, annual reports, etc.
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b.
Precall planning
making sales
Planning the Sales Strategy: find out when and whom to approach by phone call, followed by personal visit, make tentative plan for presentation and sales strategy.
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3.
Approach
Make an appointment to meet the prospect Make favorable 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
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4.
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Understanding the buyers needs Firms and consumers buy products / services to satisfy needs To understand buyers needs, ask questions and listen In business situations, problem identification and impact questions are important
E.G. Have you experienced any problems on quality and delivery from the existing supplies? What impact the quality and delivery problems will have on your costs and customer satisfaction?
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Contd
Formula method / formulated approach
It is also based on stimulus response thinking that all prospects are similar. The salesperson uses a standard formula AIDA (attention, interest, desire, and action). It is used if time is short and prospects are similar.
Shortcomings are: prospects needs are not uncovered and uses same standard formula for different prospects.
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Contd
Need satisfaction method
Interactive sales presentation First find prospects needs, by asking questions and listening Use FAB approach: Features, Advantages, Benefits Effective method, as it focuses on customers
Contd
Team selling method
Uses multi-person sales teams to deal with multiperson buying centres of customers A Relationship process develops between the sales team and the buying centre It is very expensive Used for major accounts having high sales and profit potential Used for complex selling situations
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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
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5.
Objections 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: (i) For Psychological objections: ask questions. (ii) For logical objections: (a) ask questions, (b) turn an objection into a benefit, (c) deny objections tactfully, (d) third-party certificate, (e) compensation.
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6.
Trial close checks the attitude or opinion of the prospect, before closing the sale If the response to trial close question is favourable, then the salesperson should close the sale Closing the sale means asking for order
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Contd
Techniques used for closing the sale are: (a) alternative-choice, (b) minor points close, (c) assumptive close, (d) summary-of-benefits close, (e) T-account, (f) special-offer close, (g) probability close (h) negotiation close
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7.
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
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Negotiation
Applicable in B2B selling, negotiated on the basis of prices, payment terms, delivery period, etc, Salespeople need negotiating skills like: planning, subject knowledge, listening, patience, communication, intelligence, clear thinking, integrity and trustworthiness.
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
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Contd
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 (d) Both of us lose
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THE END
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