Professional Documents
Culture Documents
Selling Skills 30-6-2020
Selling Skills 30-6-2020
Session Coverage
• Personal Selling & Promotion Mix Element
• Value Proposition & Customer Value Creation
• Buyer-Seller Dyads
• Theories of Selling
• Sales Process
– Prospecting
– Sales Resistance
– Closing Sales
– Key Accounts Management
• Diversity of Personal Selling Situation
Anatomy Of A Sales Executive
Big nostrils to
smell prey
Eyes that can
look at dragons
squarely in Eyes
Thick skinned
Sales
management
Planning Motivating
Budgeting Compensating
Recruiting and selecting Designing territories
Training Evaluating performance
Direct Marketing Mix
Elements
• Tele Marketing
• Cyber / Web Marketing
• Personal Selling
• Mail Marketing
• Multi Level Or Network Selling/Marketing
Direct Marketing VS Direct Selling
Some Marketers consider them same as both do-not involve Store Retailing
7
Buyer Seller Dyads
• Throughout, this phase, hope is to search out the selling appeal that
is most likely effective.
3. Kindling Desire
• Development of sales obstacles, prospects objections,
external interruptions, deviation remarks can sidetrack
the presentation during this phase.
• Obstacles must be faced and ways found to get around
them. Objections need answering to prospects
satisfaction.
• He has to create enough desire in the customers mind
such that he immediately has to buy the product.
Imagine an aqua guard sales man or a tupper-ware sales
person. They highlight the product in such a manner
that you might be thinking “Why didn’t I buy this
product before”.
Inducing Action and Building
Satisfaction
• Inducing Action: Experienced salespersons rarely try to close until
they are positive. Some salespersons never ask for Yes or No
because of fear for No for which they think there is no retreat. It is
better to ask for order straightforwardly.
• Building Satisfaction: The customer has just parted with his money.
Just like you part your money and expect good service, he expects
the same too. So even after he has bought the product, you need to
reassure the customer that he has made the right decision. The
product is good for the customer and you only presented the
product. It was his decision and he is right about it. These small
cues post the sales process really give confidence to the customer
and he then looks forward to your product rather than thinking
whether or not he has made the right decision.
Theory 2: Right Set of Circumstances theory of
Selling/Situation Response theory:
• Theory had psychological origin in experiments with animals and holds that particular
circumstances in a given selling situation will cause the prospect to respond in a
predictable way.
• IF salesperson presents proper stimuli, the desired response (sales) will come.
• Set of circumstances include internal and external factors to the prospect.
• For eg. Salesperson tells a prospect; let’s go for a cup of coffee
• External Factor for Prospect: Salesperson and Remark
• 4 Internal Factors: To have cup of coffee, To have it now, To go out, To go out with
salesperson
• Theory focuses on External Factors at the expense of internal factors, It is a seller
oriented theory
• Used by Telemarketing, door to door salespersons: Designs series of statements
through comprehensive sales scripts wherein prospect says yes time after time until it is
hoped that he is inclined to say yes to the entire sales proposition.
• Limitation: This theory is based on salesperson domination in the flow of conversation.
If there is a professional buyer, who takes an active role in sales dialogue
• Without knowing the needs of buyer, the salesperson present all the features of the
product
• This method is followed by telemarketing, door to door salespersons and for training
new salespersons. When canned sales presentation is prepared by company’s
experienced people based on research it can be useful for new salespeople.
Theory 3:/Need Satisfaction Theory of Selling
Buying Formula Theory of Selling
• Need Satisfaction Theory: Customer is buying to satisfy a need.
This method focus on customer rather than salesman
• Salesperson uses questioning, probing to uncover important
buyer needs. Customer response dominates the interaction and
only after relevant needs have been established, does the
salesperson begin to relate how his or her offering can satisfy the
needs.
• Customers seem to appreciate this method and are often willing
to spend considerable time in these meetings
• This method avoids the persuasion part of sales message
• This method is challenging and most creative part of selling. The
salesperson starts with uncovering and understanding needs by
asking situation, problem identification, implication and need-
payoff questions. Only after clearly understanding the needs of
buyer, the salesman gives a real proposal or moves into sales
presentation to show how his product can solve problem.
• This is done in three ways: Features, Advantages and Benefits
FAB (Features, Advantage and
Benefit)
• Features are any Physical characteristics of a product.
• Advantage is the Performance characteristic of a product
that describes how it can be used or will help the buyer.
• Benefit is a favorable Result they buyer receives from the
product because of a particular feature or advantage that
has the ability to satisfy a buyer’s need.
• A sales person may have excellent knowledge of the
product, yet be unable to describe it in terms of that allow
prospect to visualize the benefits of purchasing it.
• This is because many sales people present only product
features and advantages, leaving the buyer to imagine its
benefits.
Selling Methods:
Attributes – Car – Price , Safety , Resale value , Mileage , Leg space , Boot space , 4-W
drive , Colour , Dashboard , Acceleration , look-at-me , …..
Create a 10-pronged FAB approach to selling of a Car ( say New Maruti Swift ) to
customers with varying needs.
Product Features Advantage Benefit
Maxima The display dial is extra Makes it trendy & in-tune with Look-at-me appeal . Stand out
digital watch large sized. international trends.. within the peer group.
Multi-functions like alarms , Only sub-Rs 1000 brand with Superior value appeal.
stop watch & countdown these features.
timer.
Available in 10 colour Breaks the monotony & lends Versatile accessory that you
choices. brightness to look. can mix-n-match with your
dressing.
Rolex oyster Price of Rs 3 lacs Affordable only to the very Symbol of class & success for
watch wealthy. the world.
Quartz movement uses Removes wear / tear of the Unmatched life time accuracy
revolutionary XYZ movement.
technology .
Mother of pearl dial face Lends it premium & exclusive The watch would be a true
look. reflection of your taste &
personality and thus would be
a truly big status symbol.
Theory 4: Behavioral Equation
Theory:
• J A Howard explains buying behavior in terms of the purchasing decision process. It is viewed as phases of
learning.
• Four essential elements of learning process in the stimulus response model are:
• Drive: Strong Internal Stimuli that impels the buyer’s response.2 kinds 1. Innate drive: Physiological (hunger,
thirst, pain, cold, sex) 2. Learned Drives: Striving for status and social approval. Dominant in economically
advanced societies
• Cue: Stimuli that determines when buyer will buy. A. Triggering cues activate decision making process.
• Examples: External Stimuli: Colour of Packaging, weight or price, Informational Cues: Advertisement, discussion
with other people including salesperson
• Response: What buyer does
• Reinforcement: An event that strengthens buyers tendency to respond
• B=P X D X K X V
• B= Response of Buyer
• P=Predisposition or force of habbit
• D=Motivation to buy / Drive level of buyer
• K= Value of product and its potential satisfaction to buyer
• V=Intensity of Cues, product or information
• Salesperson’s Influence Process:
• P=Salesperson Influences P (predisposition) directly for eg. Through interacting with the buyer. Greatest impact
comes with usage of the product
• D=Salesperson exerts influence being strong when buyer seeks information (motivated) in terms of information
cues
• K= When buyer has narrowed down on choices to few sellers, the salesperson by communicating the merit of
the company brand can cause it to appear relatively better, thus affect K (Potential Satisfaction of Buyer)
• V=Salesperson can vary intensity of his or her effort, so making the difference in V (intensity of cues)
Prospecting
and qualifying Personal Selling Process:
Pre-approach • Salespeople perform many activities which may be broadly
classified into selling activities and non-selling activities.
• The non-selling activities include :
Approach Preparation of sales reports.
Collecting payments
Obtaining market & competitor information
Discovering and
Understanding Travelling
Waiting to see customers
Training / Meetings
Presentation &
demonstration • The selling activities consist of various steps of the selling
process.
Overcoming • Understanding the PS process is the science of selling.
objections
• No magic formula for sale but following the process would
improve the chances of success.
Closing the sale
Follow up and
service
Case- United Machines Ltd
• United Machines Ltd, Selling Process Started with Prospecting (Searching
and Identifying potential Customers). It was done by outside salesperson
by requesting existing customers to suggest names of prospective
customers. It was also done by inside salespersons, who work within the
company, by using internet and phone.
• Prospective customers are than qualified by using criteria
• 1. Requirement of company’s products 2. Their financial ability to buy 3.
Likelyhood to buy in near future 4. Approx value of requirement
• Based on these criteria, prospective customers are placed in three groups
• Group A-High Value of Requirement in Near future-Given to Company’s
sales engineers for converting
• Group B-Average Value of Requirement in Near Future-Inside salespeople
to communicate
• Group C-Requirement after long duration of time-kept in separate file to
follow-up
Case-Prospecting
• How United Machines Ltd converted AC
Equipment into customer by using sales
process?
• Process started with inside salespeople using
internet and telephone identifying AC
Equipment who wanted to set-up industrial
compressor manufacturing unit. They needed
metal forming and metal cutting machines
that were manufactured by United Machines.
Pre-Approach and Approach:
Do you have
quality
problems?
What benefits do
How would that help?
you see?
Why is it
important to solve
this problem?
IMPLICATION
QUESTIONS Does that mean you can’t
meet your targets?