UNIT - 3 Sales Presentations

Meaning of Sales Presentation

 A sales presentation is a talk in which a ‘product, idea, or piece of work is shown and explained to the
audience’ (Oxford English Dictionary), often including a ‘verbal report presented with illustrative
material such as slides, graphs, etc.’ (Collins Dictionary)
 Sales presentation includes the sales person present the benefits and customer aspects, objects, counters,
demand an explanation, stays indifferent, doubts the potential of the product to deliver the stated level of
benefits or gives no clear reactions.
 You might think of a sales presentation as a simple pitch, a demo, or a list of facts and figures, but a
while a good presentation does incorporate all of those elements; it’s more than the sum of its parts.
Done well, at the right time in your sales process, it gets your prospects’ attention, gets them excited and
makes them want to move forward with you and your product.

Importance of Sales Presentation

1. Help new sales person: Most salespersons fell certain tension regarding how to begin with while meeting
prospects for the first time whether it should begin with story, action, or share experience. A well-planned sales
presentation helps to new salesperson to boost his confidence.

2. Ensures effective presentation: A well-planned sales presentation minimizes the mistakes while presenting
the facts and products to the prospects. It makes clear that a well-planned sales presentation ensures that
salesperson that the fact and product presentation is effective.

3. Save times of sellers and buyers: The salesperson should understand that the buyer's time is valuable and
they want complete information with a limited time period. It is possible only through the well organized and
well- planned presentation. So, sales presentation helps to save time of the buyer and seller in sales job.

4. Increase sales volume: Sales presentation consists of complete and clear message appropriate illustrations or
beautiful stores which may easily motivate the prospects. As such it may helps to increase sales volume of
company.

5. Build relationship: Sales presentation helps to meet and conversation between buyer and seller. It builds and
maintains the positive relationship between buyer and seller in the sales job.

Planning the Sales Presentation

Planning is the process of thinking about the activities required to achieve a desired goal.  Planning the sales
presentation helps salesperson to take a decision in advance the way to deal with the selling situations, which
salesperson is going to encounter in future. It involves logical thinking and rational decision making. Before
planning the sales presentation, a salesperson needs to collect adequate information about the individual
customers and their organization through several sources. Only after the collection of essential information,
planning may be started. Planning the sales presentation usually consists of the following process:
(Process of sales presentation planning)

1. Setting specific objectives: Specific objectives should reflect each sales activity separately, should be
measurable and aimed at obtaining customer's action or reaction. Therefore, the specific objectives of sales
presentation should be as:
 To show and demonstrate the entire line of product
 To disclose all information about the products demonstrated
 To create the customers interest on salesperson`s story
 To demonstrate the technique of using product, etc
2. Developing the presentation plan: It includes an outline of how the product will function, how the product
will benefit the customers, how the product should be used, how to play role while demonstrating products, how
to meet customer`s objections, etc. Thus, the salesperson has to develop three planning activities.
 Plan for benefits and supporting evidence
 Plan for role- playing
 Techniques of meeting customer`s objections

3. Preparing for the next sales call: This means recording the information learned and observed during the
sales call with the customers. He should rightly identify his weaknesses and the techniques to be used in the next
sales call attractions shown by the customers, etc.

Models of Sale Approach

Sales approach is the step by step proposition developed by a sales person or a company to make the process of
selling more effective. A properly developed sales approach is what sometimes differentiates an amateur
salesman from an experienced salesman. Different experts' categories the various sales approached differently.
Here are four different kinds of models of sales approaches.

1. Stimulus- response approach: Stimulus-response approach to sales states that the salesperson should convey
the right thing at the right time to develop a favorable response. Stimulus is influence or action that produces
response while response is answer to the influence or action. The salesperson should know how the prospects
respond to the stimuli. It is simple model and normally used to sell some household items.

2. Mental state approach: it is basically psychological approach. It is simple and widely accepted model. The
mental state has four stages-attract attention, maintain interest, create demand and get actions. This model
addressed the AIDA model. So, to get their favorable response, the salesperson must be able to arouse their
interest and create demand for the product.

3. Need situation approach: This approach of personal selling states that the need of the prospect is the logical
starting point for the sales presentation, so every salesperson must identify the customer's need first and then
offer a solution to satisfy the need.

4. Problem solving approach: In this approach also attempt is made to identify the prospect's need, then the
salesperson helps to select the best alternative product and solve the prospect's problem .In this model, the
salesperson must play the role of a consultant or a sincere adviser, without whose help the customer may not be
able to select the best or appropriate product.

Types of Sales Presentation

1. Standard memorized presentation: It is a carefully prepared sales story that includes the entire key selling
points arranged in the most effective order. It is developed after a careful analysis of the sales stories of the
most success salespeople. The best features and sales point from various presentations are incorporated into a
standard sales story, which are then memorized.

Advantages:
a. Attracting and interesting
b. Provide the complete and accurate information about the story and policy of company
c. Arrange the logical and systematic sequence of presentation
d. Provide the effective answers to prospects
e. Eliminates repetition
f. Save the time

Disadvantage:
 a. Inflexible
b. Artificial
c. Presser to prospect
d. Discourage two-way communication
e. Not practical to sold many product at a time

2. Outlined Presentation: Some important points are noted down in the short form of the story and information
of the company or products by salesperson. It is usually a systematically arranged outline of the most important
sales points to be presented to the prospects. The salesperson need not memorize the whole thing; he is given
freedom in elaborating such points in his own way while presenting to the prospects.
Advantages:
a. Effective
b. More flexible
c. Originality
d. Easy to explain
e. Two- way communication

Disadvantage:
a. Less interesting
b. Reduce the memorable capacity of salesperson
c. Difficulty to answers of out of points

3. Program Presentation: The program presentation usually consists of a complete or illustrated presentation
that is developed from a detailed and comprehensive analysis or survey of the prospects' or customer`s needs.
This type of presentation is used extensively in trade selling, in the sale of industrial equipment, office
equipment and supplies, in management consulting work, in the sale of certain advertising, a many similar types
of selling.
A complete program presentation normally includes four basic steps namely;
 Getting permission to make an analysis or survey
 Conduct the survey
 Prepare the program
 Presentation of the program or proposal

Advantages:
a. Attractive and effective presentation
b. Identify the actual needs or problems of prospect
c. Purposed Solution of needs or problems
d. Increase the good will of company or salesperson

Disadvantages:
a. Time consuming
b. Difficulty task
c. Costly

Overcoming Objections

An objection is anything the prospect says or does that is an obstacle to smooth closing. Objection is a concern
or a question raised by the buyer. Opposition or resistance to information or the salesperson’s request is an
objection.

One of the most important steps in sales process of a sales representative is to overcome objections raised by the
prospects. An objection is the expression of disapproval of an action taken by the salesperson. In other words,
objections are the feelings of disapproval by the prospects on the matters expressed by the salesperson.
Objections may be raised by the prospects due to lack of clarity of sales presentation, dissatisfaction from the
past experience, because they are undecided, and so forth.
Some common objections:
 Price objection
 Product objections
 Service objections
 Company objections
 Time objections
 Personal objections
 Miscellaneous objections

Reasons for Objection

1. Get rid of salespersons: Some customers have not adequate time to stay with salesperson or have not
interested to listen about the product and service offered. So they raised objection and want to get rid of
salesperson.
2. Lack of money to pay: Some prospects have not adequate money to purchase such goods and they generally
raised objections.
3. Do not need product and services: Some prospects raised objections because they do not need product and
services at that time. They are not qualified prospects.
4. Need more information: When the prospects are not convinced or not provide sufficient information about
the salesperson's product or service and they need more information about the same, they may raise objection.
5. Habit of salesperson: Some customers may raise objection for bad habit of salesperson. Customers do not
like and odd feeling to some habitual characteristics of salesperson.
6. Value does not exceed cost: Customers calculate the value or satisfactions that may receive from the product
or service and compare it with the amount of sacrifice they make. If they expect that the value does not exceed
cost, they may raise objections.
7. Negative psychological factors: Negative attitude may be developed in the customer's mind or they may fear
of cheating by the salespersons due to their ignorance or unfamiliar with the salesperson. Therefore, prospects or
customers may raise objections.

Effective Methods of Handling Objections

It is one of the stages of salesperson during his personal selling where he has to handle certain objection and
resistance of the customers. There are certain times when the customer argues and differs from the
demonstration and explanation given by the sales person to him. So in order to satisfy, negotiate and make the
deal finalize sales person has to persuade the customers by satisfying the customer by taking certain step. So
these steps taken by the sales person in order to persuade the customer are called objection handling. Some
effective methods of handling customer objections are as following:

1. Agree and counter method (or Yes but method): Under this method, a salesman express
agreement with the customer`s objections, but also tries to give counter reply to them. This technique
usually avoids a direct contradiction and confrontation between the salesperson and the customer. In
other words, in this method, a salesperson agrees that the reaction of the prospect is logical, but then
proceeds to refute the objection by stating that there is nothing new about the point raised by the
customer. For example,
 Objection: Your prices are higher than prices of our current supplier.
 Answer for handling: Yes, I understand that price is a very important factor, but if you calculate all
costs including maintenance and service you will see that in reality our products are cheaper.

2. Boomerang method (or Turn objections into reasons for buying method): This method is used to turn
about their negative response into positive one. A salesperson tries to convey some of the advantages of the
product in order to cover the negative response of the customer. For example,
  Objection: Your prices are higher than prices of other products.
 Answer for handling: Thank you for talking about the price. It is very good that you take into
consideration all aspects of the product and I am sure you will make the right decision. Quality is very
important and qualitative product is always costly.

3. Questions method (or ask why method): This method is used to get answers from the customers themselves
for not wanting to purchase product offered or to get answer from the customers themselves. When the
customers raise objections, instead of giving immediate answer or motivating them, a salesperson asks some
specific questions to the customers for not wanting to purchase or the reason for raising the objections and also
offers suggestions from them. For example,
 Objection: I think your price is too high.
 Answer for handling: What do you think is a fair price? Or how much too high?

4. Admit the objections method: Some of the objections raised by the prospects may be valid and such
objections should be admitted by a salesperson to proceed in compensating advantages. To admit such
objections, sometimes, company policies also should be changed.

5. Postpone the answer method: Some customers may raise objections in the initial stag or before the
presentation by the salesperson, whose answer may be contained in the presentation, or whose answer is yet to
be conveyed by the salesperson. In such a situation, the answer to those objections may be postponed till the
sales presentation is completed, because such objections can best be answered during the sales presentation.
Therefore, a salesperson in this particular situation should request the prospect to wait till the presentation in
completed. For example,
 Answer for handling: That's a good point. If you don’t mind, let's postpone the answer until letter. I
have some information that I am sure will satisfy you.

6. Deny the objections Method: The next important method for handling customer`s objections is to directly
deny the objections raised by the customers. However, the salesperson`s denial must be supported by a valid
justification, otherwise, the prospect may leave the salesperson, no other choice. For example,
 Objection: There is no service for this product in my area. I will not be able to service it.
 Answer for handling: That is not right. There are 2 service providers in less than 10 miles from your
company. Also, in a few months we will open another big certified service center in your city.

Closing the Sales

 Closing a sale, an important part of personal selling process refers to completing a sales transaction – it
is the final step while making a sales call to the customer.  It effectively refers to the customer signing
on the dotted line of the agreement completing the sale.  
 In sales terms, closing is generally defined as the moment when a prospect or customer decides to make
the purchase. Very few prospects will self close, making it necessary for the salesperson to instigate the
close. This can be unnerving, especially for new salespeople, as it leaves the salesperson open to the
chance of rejection from the prospect.

Effective methods of closing sales:

1. Assumptive close method: also known as the presumptive close, in which the salesperson
intentionally assumes that the prospect has already agreed to buy, and wraps up the sale. "Just pass me
your credit card and I'll get the paperwork ready."
2. Alternative choice close method: also called the positive choice close, in which the salesperson
presents the prospect with two choices, both of which end in a sale. "Would you prefer that in red or
blue?"
 3. Balance sheet close method: also called the Ben Franklin close, in which the salesperson and the
prospect build together a pros-and-cons list of whether to buy the product, with the salesperson trying
to ensure the pros list is longer than the cons.
4. Direct close method: in which the salesperson simply directly asks the prospect to buy. Salespeople
are discouraged from using this technique unless they are very sure the prospect is ready to commit.
5. Indirect close method: also known as the question close, in which the salesperson moves to the close
with an indirect or soft question. "How do you feel about these terms" or "how does this agreement
look to you?"
6. Minor point close method: in which the salesperson deliberately gains agreement with the prospect
on a minor point, and uses it to assume that the sale is closed. "Would the front door look better
painted red? No? Okay, then we'll leave it the color it is."
7. Negative assumption close method: in which the salesperson asks two final questions, repeating
them until he or she achieves the sale. "Do you have any more questions for me?" and "do you see any
reason why you wouldn't buy this product?" This tactic is often used in job interviews.
8. Possibility of loss close method: also known as the pressure close, in which the salesperson points
out that failing to close could result in missed opportunity, for example because a product may sell out
or its price rise.
9. Trial order close method: in which the salesperson gives the product to the prospect on a trial basis,
to test before a sale is agreed upon.
10. Sales contest close method: in which the salesperson offers the prospect a special incentive to close,
disarming suspicion with a credible "selfish" justification. "How about if I throw in free shipping? If I
make this sale, I'll win a trip to Spain.

Building Customer Relations

Customer relations is the process and manner by which a business develops, establishes, and maintains
relationships with its customers. Businesses rise and fall through the support of their customer bases.
Consequently, it is absolutely essential that salesperson develop effective customer relations. On a practical
level, customer relations is effectively communicating with your customers and promptly addressing complaints
and treating them as opportunities for improvement. In other words, listen to your customers! Therefore,
customer relationship is a process and behavior to build, maintain and enhance the positive relationship between
salespersons (company) and customers.

How to Build Strong Customer Relationships?

 Demonstrate a customer-centric orientation
 Engage in further qualification to assess needs
 Listen carefully and check for accuracy of understanding
 Deliver effective presentations
 Answer questions and address objections in a non-threatening way
 Receive and effective deliver order
 Assure new customers they are making a sound business decision

Always remember three pillars for build customer relation:

 Developing goodwill
 Improve service accounts
 Handling customer complaints

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[Sales and Distribution Management - MKT 532, MBM (Third Semester)]