Personal Selling Process

Personal Selling Definition

• Personal Selling – involves person-to-person ( one to one) or
(one to many ) communication process with
• A household customer /prospect (B2C)or
• Business customer / prospect (B2B) –( institutions, corporates,
,factories, distributors, retailers)
to discover needs, match appropriate products to these
needs, and communicating benefits through informing,
persuading, making a sale ,reminding(for repeat sales ) and
also developing relationships.
2
Personal Selling –Advantages and Disadvantages
Advantages Disadvantages
Two-way
Two-way Interaction
Interaction Messages
Messages May
MayBeBe
With Prospect Inconsistent
Inconsistent
Possible Management-
Message Can Be Possible Management-
Sales Force Conflicting
Tailored
Tailored to
toRecipient
Recipient Sales Force Conflict
objectives
Prospect not
Isn'tLikely
Likely Cost
Cost Is
Is Often
Often
to
toBe
Be Distracted
Distracted Extremely High
Seller present and hence
Seller Involved in Purchase Reach
Reach May
May Be
Be
persuasive /can directly
Decision Very
Very Limited
Limited
influence
Source
Source of
of Research
Research Potential Ethical
Information Problems
3
Types of relationship selling

• Transactional selling –Sole purpose is get the order and not

concerned with after sales satisfaction . Used for low profit potential
customers /products. Eg FMCG to consumers
• Value added selling – Focus on meeting stated needs of customers
by being better than competitors eg consumer durables
• Partnering/ collaborative relationship selling -purpose is to be
preferred or sole supplier to high profit potential customers . So
goes beyond stated needs and builds trust through joint problem
solving, multiple connections , integrating the processes and superior
customer service eg B2B key accounts , also in B2C eg HNI ,interior
decorator
 Traditional buyer behavior model vs Psychology in Selling

Stimulus Buyer Response

Buyer
(Sales Presentation) (buy or no buy)

u the above traditional model does not tell us the reasons of

buying or not buying
uImportant to understand psychological aspects of selling or
buying ie consumer or buyer behaviour,
uIe buying decision process, buying situations, cultural, social
factors , motivations ,perceptions, attitudes ,personality, buying
styles etc
Theories in selling
1) AIDAS theory
2) Right set of circumstances theory
3) Buying formula theory
4) Behavioural equation theory

• AIDA and Right set of circumstances theory are seller oriented theories
• Buying formula theory is buyer oriented theory
• Behavioural equation theory emphasizes buyer decision process but
also takes into account salesperson’s influence process
1)AIDAS theory
• Uses strategies in each stage
• A- Securing attention (introduction)
• I-Gaining interest (features,advantages)
• D-Kindling desire (benefit to consumer)
• A-Inducing action (special offer etc)
• S- Building satisfaction ( ontime delivery, service)

Change in AIDAS to Rapport-need-solution-close

2)Right set of circumstances theory

• Also called situation response theory

• Create everything right for sale
• Theory holds that when salesman handles/controls particular set of
circumstances in given selling situation skillfully , the prospect will
behave in predictable way
• Proponents of this theory stress external factors at expense of
internal factors
3)Buying formula theory
• by E.K.Strong is a buyer oriented theory
• Steps a buyer goes through are
• Need-Solution- adequacy/pleasant feelings–purchase-
Satisfaction/Dissatisfaction
• Salesman needs to be aware/use above
4)Behavioural equation theory

• by J.A. Howard
• Explains Buying behaviour in terms of purchase decision process viewed as
phases of learning process
• 4 elements of learning are drives ( innate vs learned ) ,cues (triggering vs non
triggering ,product vs informational)response , reinforcement
• B=P x D x K x V
• Where B = response of buyer
P= predisposition or force of habit
D= Motivation/drive to buy
K= Incentive potential/value of product or its potential to satisfy
V=Intensity of all cues
• Salesman links motives, provides cues, enhances incentive potential
Buying decision process/stages
1. Problem/need recognition –physiological or psychological need.
Internal or external stimulus
2. Information search- passive vs active. Low vs high involvement
3. Evaluation of alternatives –Rational vs emotional factors .
4. Purchase decision— perceived risk .Also affected by attitude of others
5. Post-purchase behavior – also should be monitored. Satisfaction, new
uses, usage problem. Can get qualified references .

Note-Consumers / Buyers may skip some steps (eg habitual /low

involvement products )or reverse some stages in buying
process(eg .dissonance reducing buying behavior )
Buying Process of Consumers and Business Buyers
Five – stage model for household
customers
1. Problem / need recognition
2. Information search / collection
3. Evaluate alternatives
4. Purchase decision
5. Post – purchase behaviour
Eight – stage model for business
buyers
1. Problem / need recognition
2. Characteristics and quantity
determination
3. Specification development
4. Supplier search and qualification
5. Obtain and analyse supplier
proposals
6. Evaluation and selection of
suppliers
7. Selection of purchase order routine
8. Performance feedback and post-
purchase evaluation
Buying Situations Faced By

Household customers Business Buyers

• Routine decision-making • Straight rebuy / Repeat
purchase
• Limited decision-making • Modified rebuy

• Extensive decision-making •New task / New purchase

Buying situations/types of purchases
• For household/individual consumers
-Routine decision making – for low involvement and repetitive purchases eg
soaps
-Limited decision making –when consumers are not aware of some info but are
otherwise familiar of the product category eg buying mobile but not first time
-Extensive decision making - for High involvement, not familiar category eg
college and courses
• For Business buyers
-Repeat purchase or straight rebuy– automatic reordering system
-Modified rebuy eg change in supplier
-New task or new purchase –risk more, so buying centre
Buyer –seller dyadic interaction
Two major factors of success in buyer-seller dyadic interaction(Jagdish
Sheth)-
• Content of information (product features, prices ,quality, services)
• Style of interaction/communication -task oriented (ie motivated by
technical details) , interaction oriented, (ie sociable, friendly ) , self-
oriented (ie motivated by self benefits )
Research shows that success happens only when both content and
style are matched
Knowledge of Sales and Sales-related Marketing Policies to make a sale
Sales Knowledge Marketing Policies
• Company knowledge • Pricing and Payment policies

• Product knowledge • Product policies

• Customer knowledge • Distribution policies
• Competitor knowledge • Promotional policies

Imparted to salesmen through training programs -to increase their self-confidence, meet
customers’ expectations, increase sales and overcome competition
 Steps in Sales Process

Following the steps or phases, increases chances of success

4)Discovering &
1)Prospecting & 2)Preapproach / 5)Presentation &
3)Approach Understanding
Qualifying Precall planning Demonstration
buyer’s needs

8)Follow-up & 7)Trial close and 6)Overcoming

Service Closing the sale Objections

• The sequence of above steps may change to meet the sales

situation in hand.
Prospecting and qualifying

1a)Prospecting
uIt is act of identifying potential customers.
uImportant daily activity if company wants to grow and also compensate for attrition
uSuspect or sales lead is anyone who could probably /possibly use our product
u Prospects are those who actually need, have decision making power and have financial ability
to buy .
uCompanies use various lead generation methods
Lead generation methods
1)Existing customers needing new products ,
2)Former prospects now interested ,
3)Referrals from existing customers or endless chain method ( two thirds of leads ) ,
4)Referrals from internal company sources(eg website ,trade shows, teleprospecting,
direct mail, company ads ) ,
5)Referrals from external sources ( suppliers, bankers ,trade association , intermediaries,
commercial dotcom vendors ) ,
6)Networking by salespersons ,
7)Industrial directories ( yellow pages ,by govt and pvt publishers ) ,
8)Indian Standard industrial classification( SIC) – is called NIC .used in B2B
9)Cold canvassing or cold turkey method ,
10)World wide web
Prospecting and qualifying(contd)
1b)Qualifying
uQualifying prospects means additionally screening ( ie not selecting some
eg credit worthiness ,good/bad customer ) or labelling/categorizing by
company for different treatment ( as per bigness of requirement ) .
uProspects are also labelled/categorized as:
uHot(Big requirements and financially sound, very keen to buy immediately,
,highly positively predisposed to our company ),handed to salesmen
uWarm (fence sitters/noncommittal) ,telemarketers for followup
uCool (indifferent ,pending list) ,future followup
uNowadays, companies/marketers take responsibility of prospecting and
qualifying and free the salesmen to concentrate on selling
Sales funnel /Pipeline
Sales leads

Qualified prospects

Hot prospects

Customers
 2)Preapproach
• 2A)Information gathering about the prospect-
• Increases self confidence
• Indepth information on prospects and their business, industry in which
prospect is operating ,purchase practices, buying centre, issues faced by
the prospect ,
• Sources of information: the Internet, trade magazines industrial
directories, government publications, intermediaries, annual reports,
existing customers and suppliers etc.
Preapproach(contd)
• 2B)Precall planning
• 1)Setting call objectives –ultimate objective is sales but it happens
after 4-5 calls. Hence meet key decision makers ,understand needs,
buying criteria , presentation
• 2)Tentative planning of sales strategy: when ,whom to meet, how
(method/technique), ,tentative planning on which products , features
and benefits to present
• Sales strategy may be changed based on customer type and selling
situation . This type of modification is called adaptive selling
 3)Approach
•Takes a few minutes of a call, but it can make or break a
sale
•1)Make an appointment to meet the prospect
• 2)Make favourable first impression-appearance,
attitude and opening line
• 3)Select an approach technique:
1. Introductory approach – Long intro about company
2. Praise/small talk ( breaks ice if subtle and sincere )
3. Customer benefit/buying motive –direct
4. Product – Touch /feel for new /unique products
5. Question- regarding problems faced, benefits sought
 4)Discovering and Understanding Buyer’s
needs
• Understand through a logical order

• SPIN model used but not in rigid order

1)Situational questions ( eg who is involved in buying decision , or first time buy, or changing
supplier )
2)Problem identification questions- uncovers needs
3) Impact/Implication questions,
4) Need payoff/ solution value questions
Salesperson should ask less of 1 and more of 2,3,4

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?
5)Presentation and Demonstration

The components:
A)Understanding sales presentation methods/approaches of
selling -need to match with sales situations (product type and
buyer expectations)
B)Developing an effective presentation
C)Using demonstration as a tool for selling
5A)Sales presentation methods (Approaches
of selling)
• 1) Stimulus response method /canned approach –
• Memorised sales talk or a prepared sales presentation.
• Same presentation for all prospective buyers.
• Salesperson does most of the talking without knowing prospect’s needs,
• Ok for nontechnical products /non sophisticated buyers/door to door /telephone selling
• 2) Formula/formulated method/mental states selling-
• It is also assumes all prospects are similar
• And can be led through mental states /steps .
• Uses a standard formula – AIDAS (attention, interest, desire, action).
• Used if time is short and prospects are similar.
• Ok when straight rebuy/customer familiar with product, salesmen aware of buyer needs,
simple product. .
5A)Sales presentation methods(approaches
of selling) (contd)
• 3) Need satisfaction method –
• its an interactive form of presentation which begins with asking 4 types of Qs and then does FAB
presentation
• used when creative selling /High involvement /new products eg B2B or consumer durables ,
when needs have to be understood first.
• Effective method, as it focuses on customers
5A)Sales presentation methods(approaches
of selling) (contd)
• 4) Consultative selling /problem solution method
• Most challenging and creative form of selling .
• Not only meet the needs but also help customers achieve their strategic goals eg business
performance , quality framework
• involves partnering /collaborative approach to provide their expertise in solving customer
problems
• Salesperson seeks cross functional expertise . eg design ,production /operations
• Used in major accounts / long term contracts eg software / consulting firms
5)Team selling method
• Strategic and group presentation
• Used for B2B key accounts, complex selling situations ,long term contracts
• KAM coordinates sales team activities and interactions with buying centre
5B)Developing an effective presentation -
Success factors in selling
• Selling is both science and art
• Communication skills- managing own (salesperson ) signals and
reading buyers signals
• Nonverbal –eye contact ,posture , gestures, facial expression, overall
grooming ,physical space, handshake
• Verbal-professional tone , pace ,pitch , avoid vague words and
jargon, Positive phrases
• Listening skills -eye contact, avoid interruptions ,distractions,
paraphrase
• Burning desire ,empathy, positive attitude, confidence ,discipline
5b) Developing an effective presentation
(contd) - Dos and Donts
1. Show enthusiasm towards the sales job and customer business
2. Plan - objectives of the sales call and presentation
3. Remove obstacles to communication eg outside noise/distractions and respect cultural
differences
4. Listen and talk less . Two way communication necessary
5. Uncover buyer needs through questions
6. Empathise with buyers feelings ,ideas and situations
7. Build relationship based on mutual trust
8. Managing verbal and nonverbal communication
9. Use technology –multimedia
10. Adapt – to situation/person
11. Features, Advantages , benefits (FAB)
12. Avoid information overload. KISS ( Keep it simple stupid )
13. Also kiss the frogs ( don’t overload options )
14. Use Prospect’s language –no jargon
15. Convince through third party proof
5c) Demonstration
• Benefits are
a) Creates involvement and increases purchase interest
b) Helps to find specific benefits of interest to the prospect
a) Buyers’ objections are cleared
c) The prospect can experience the benefit
d) Reduces post purchase dissonance

• Important to rehearse the demo with colleagues who act as buyers ,ask questions and raise
objections
• Demo has two parts . In first part, explain FAB and how product works . In second part do
actual demonstration/working of product .
• Demonstration can be at home , other customer’s premise , exhibition /trade fairs , technical
seminar , seller’s factory
6) Overcoming Objections /resistance

• May happen anytime eg during sales presentation or when

salesperson asks for order
• Should be welcomed as indicates interest .If handled satisfactorily,
sale will happen
• Two types of objections -
• Psychological(hidden)-predetermined ideas ,or beliefs , preference
for established brands, decision anxiety, vascillation, resistance to
spend
• Logical( real /practical ) –product quality, price, delivery etc
Overcoming objections (contd)

• Overcoming psychological objections –

• best method is to ask questions and keep prospective customer
talking
• helps clarify thinking .
• Salesman should never argue or hurt prospect.
Overcoming objections (contd)
• Methods to handle and overcome logical objections
1)Ask questions .Clarify by rephrasing eg when buyer says price is high,
ask whether the prospect would like to know why and explain
2)Turn objection to benefit eg delivery takes more time. yes because
made to order and hence best
3)Deny objections tactfully –even when objections are incorrect. sales
person should not be arrogant or sarcastic
4)Third party certificate
5)Compensation in lieu of valid objection ( which cannot be
countered ) - so as to counterbalance eg defective piece
Handling objections
• Handling Price objections- strategies are
Go back to SPIN , offer low priced model if cant afford , compare price-
value with competing alternatives , breakdown price .
• Handling product/ service objections – strategies are
Demonstration ,trial use , independent tests results , case histories ,
expert opinion
 7)Trial close and closing the sale
• Trial close is one of the most used selling techniques, instead of using
direct close .
• Dipstick test to check attitude/opinion of prospect but does not ask the
prospect to directly buy .
• bcos difficult to change the prospect mind if he has said no to direct close
• Trial close egs – do you think this product meets ur needs , which one u
prefer etc
• Closing the sale means asking for the order-
• When prospect gives buying signals – eg examines product, asks another
person’s opinion, asks indicative questions( eg delivery ) ,becomes friendly
• Its important for salesperson to remain quiet after asking for order or
pressure on prospect to make decision goes off
7) Trial Closing The sale - techniques (contd)
1) Alternative choice close eg which model u prefer
2) Minor points close eg how would u like it delivered
3)Assumptive close –salesperson prepares the order and hands it over to
customer for signature
4)Summary of benefits close –FAB agreement
5) T account or modified t account –In T account , salesperson lists assets( to
act) and liabilities ( not to act ) on a piece of paper . In modified , only assets are
listed . This technique is backup to 4 .
6) Special offer or special deal close- when the salesperson has done best and yet
resistance
7) Probability close is used when the prospect says I will think it over .If < 50 %
start all over again.If > 50% ,address real objection .
8)Negotiation close –positive attitude and win –win orientation
Closing techniques and sales situations
 8)Follow-up and Service

• Necessary for customer satisfaction

• Successful salespeople follow-up in different ways:

For example,
1. Check if order details are correct
2. Follow through delivery schedule
3. Follow up visit when the product is delivered - helps reduce
dissonance
4. Account penetration- meet all members of buying organization
eg users , influencers ,buyers etc
5. Build long-term relationship
6. Arrange warranty service
 Negotiation skills
uVery important in B2B selling.
uSalesperson need various skills to be effective in negotiation- intelligence, clarity,
integrity, listening ,knowledge , patience ,communication
uNegotiation may be a long drawn process
u Negotiation on various aspects - prices ,delivery period, payment terms
uWhen to negotiate?-important order, long term customer, When the final price is to
be decided/negotiable, last stage of sale ,buyer has laid condition, when agreement
between the buyer and the seller is needed on several factors ,when the product is
customised
Negotiation skills (contd)
uHow to prepare for negotiation?-
1. Planning ( knowledge of customer, competitors, own policies)
2. Understand purpose of negotiation ( getting higher share of business ,increased prices
, getting payments against disputed bills ,new business )
3. Build relationships before and during the process to ease tension of negotiation
process and collecting info (create trust, be polite and humble ,focus on identifying
and agreeing to problems, share info and ideas to solve problems ,avoid defensive,
legalistic or contractual positions and be ready to make concessions ) .
4. Styles of negotiation-use the right approach
(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
Recognize signs when buyer uses win- lose ( gets aggressive, ridiculous offer ,tough
demands , does not reciprocate concession made by seller, ignores time deadline. The
seller should counter this by taking equally strong position, explain why and seek reason
from buyer and stress consequence of failure to resolve issue).
Tips on negotiation- manage your and read buyers verbal n nonverbal language, avoid
sarcasm , blame ,emotional decision , revealing your weakness , instead and be assertive
not aggressive ,stay focused , eye contact and positive attitude
 Key Learnings
• For understanding psychology in selling, study consumer or
buyer behaviour, buying process and situations
• Salespeople are given knowledge of sales and relevant
marketing policies in order to increase their self-confidence
and sales, and meet customers’ expectations
• Typical steps in the sales process include prospecting and
qualifying, preapproach, approach, presentation and
demonstration, overcoming objections, trial close / closing
the sale, follow-up and service
• Salespeople should know when to negotiate, how to prepare
for negotiation and which style of negotiation to use