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St.

Mary’s University Department of Marketing Management


CHAPTER TWO

THE SELLING PROCESS

So far the discussion has been on issues related with the types of salespeople, nature of
salesmanship and personal qualities needed for an effective salesperson. In the next part of this
material we shall be discussing on issues related with the selling process, i.e. what activities should
a salesperson perform in order to have an effective sales.

2.1. Sales Process: Meaning

The sales process or selling process refers to a sequential or series of actions undertaken by the
salesperson to convert a prospect in to a customer. In other words, selling process is a series of
logical steps taken by a salesperson in order to induce prospects to take the desired actions leading
to purchase and post-purchase satisfaction. Although many factors may influence how a
salesperson makes a presentation in any one situation, there does exist a logical, sequential series
of actions that, if followed, can greatly increase the chance of making a sale. The most commonly
accepted stages of the sales process are as follows:

It should be noted that these stages are not independent. Rather, all the stages are closely
interlinked. The salesperson cannot afford to miss or ignored a step. Instead, he has to move step-
by-step.

The selling process is a set of activities undertaken to successfully obtain an order and begin
building long-term customer relations. While the activities we discuss apply to all forms of selling
and can be adapted to most selling situations (including non-product selling such as selling an
idea), we will mainly concentrate on the activities carried out by professional salespeople. For our
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purposes, wedefine professional salespeople as those whose principle occupation involves selling
products (i.e., goods and services) to buyers and do so for organizations that appreciate and
support sellers who are well-trained and ethically responsible.

2.1. Prospecting

2.1.1 importance of prospecting

Selling begins by locating potential customers. A potential customer or “prospect” is first


identified as a sales lead, which simply means the salesperson has obtained information to suggest
that someone exhibits key characteristics that lend them to being a prospect. For certain sales
positions, locating leads may not be a major task undertaken by the sales force as these activities
are handled by others in company. For instance, salespeople may receive a list of sales leads based
on inquiries through the company’s web site.

Prospecting is the method by which salespeople search for new customers and potential
customers.

A prospect is a qualified person or organization that has the potential to buy your product or
service. A prospect should not be confused with a ‘lead’. The name of a person or an organization
that might be a prospect is referred to as a lead. A lead can also be referred to as a ‘suspect’,
indicating the person or organization is suspected of being a prospect. Once the lead has been
“qualified”, the lead becomes a prospect. [Later on this topic, we shall see on how to qualify a lead
in to a prospect]

However, for a large percentage of salespeople lead generation consumes a significant portion of
their everyday work. For salespeople actively involved in generating leads, they are continually on
the lookout for potential new business. In fact, for salespeople whose chief role is that of order
getter, there is virtually no chance of being successful unless they can consistently generate sales
leads.

2.1.2. Characteristics of a Good Prospect

Locating leads and qualifying prospects are important activities for salespeople. In doing so, the
salesperson need to look in to the following basic characteristics:

1. Need to buy – Before approaching a prospect, the salespersonshould ensure that the need for the
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product or service he intends to sell really exists. There must be a minimum hint or clue of the
existence of a need since need is the fundamental requirement of purchase. Therefore, people
having no need can hardly be good prospects.

2. Ability to buy – For a purchase to take place, the need or desire of individuals is not enough.
The need is to be supported by the ability to buy. The ability is nothing but the purchasing power
to pay for the products offered for sale. Hence while analyzing the prospects, the salespersonhas to
examine whether the prospect is capable of paying and is willing to pay the needed amount.

3. Authority to buy – A person may have the requisite need and ability to buy the product, but in
the absence of the required authority, he cannot qualify to be a good prospect. Hence, the
salesperson has to ensure whether the prospect has the necessary authority to buy, since a sales
deal takes place under legal and moral grounds.

4. Accessibility – Certain people have the need, purchasing power and the authority to buy. Even
with the presence of these three characteristics, they may not be considered as a prospect unless
and until they are approachable with usual effort and expense. Therefore, accessibility is another
important characteristics of a good prospect. Some people like highly placed government officials
and big industrialists cannot be contacted easily, hence, the salespersonhas to forgo such prospects.

2.1.3. Methods of Prospecting

The selling process starts with collecting demographic information regarding individuals who are
likely to be the potential customers. As pointed out earlier, searching of people who are most
likely supposed to purchase is called prospecting. There are several methods of prospecting or
collecting important information about the likely consumers or prospects. It is up to the sales man
to adopt a particular method or methods of prospecting. Following are some of the important and
most frequently used methods of prospecting.

a. Endless chain or family tree method

This is one of the most important method of collecting the names and addresses of the prospects.
Under this method, the salespersonwhile interviewing a prospect, can collect the names and
addresses of relatives, friends and family members of the prospects. Sometimes, a
salespersonpicks up satisfied customers to recommend the names of friends and relatives who
have similar need for specific products or services. A satisfied customer, most willingly, provides
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such information with a view that the product or service will also provide satisfaction to his
friends, relatives and family members. Hence the process of prospecting increases continuously
and the chain becomes endless. Thismethod of prospecting is usually found successful in the sale
of intangibles like investment, insurance, educational courses, etc.

b. Cold canvassing method

Under this method the salespersonprepares a random list of individuals with the assumption that
they are most likely buyers. Having prepared such a list, the salespersonstarts meeting them
without any previous knowledge of their tastes, likes, financial status, etc. and canvasses about the
product or services he intends to sell. Most often this method depends on the law of average. For
example, if past experience reveals that 1 person out of 10 will buy a product, then 50 sales calls
could result in 5 sales. Thus the salesperson contacts as many leads as possible, recognizing that a
certain percentage of people approached will buy.

Canvassing –leads are gathered by cold-calling (i.e., contacting someone without pre-notification)
including in-person, by telephone or by email.

Some authors point out that this method of prospecting is nothing but wastage of time, energy and
skill of the salesperson. Despite the inherent difficulty, this method of prospecting provides the
salespersonwith a valuable experience of meeting individuals who are strangers and meeting them.

c. Center of influence method

Prospecting via the center of influence method involves finding and cultivating people in a
community or territory who are willing to cooperate in helping to find prospects. They typically
have a particular position that includes some form of influence over other people, as well as
information that allows the salesperson to identify good prospects. Such influential persons
include doctors, lawyers, councilors, bankers, teachers, politicians, and important personalities
having a number of friends and acquaintances in the society.

Often the recommendation made by such influential persons carry much weight and helps the
salespersona lot in converting the prospects in to customers. As a salesperson, you have to be sure
to show your appreciation for this person’s assistance. Keeping such influential persons informed
on the outcome of your contact with the prospect helps to secure future aids.

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d. Personal observation method

This method is otherwise known as eye and ear method. An intelligent salespersoncan easily
locate prospects everywhere if he keeps his eyes and ears open. He can find prospects in every
walk of life. The salespersoncan find potential customers while attending functions at public
places, in cinema hall,traveling in buses and train, in offices, in school and colleges and so on. To
identify such prospects, keen observation by the salespersonis necessary. The salespersonhas to be
intelligent and prospect-minded in order to locate and identify the prospects under this method.

e. Spotters’ method

Another method of prospecting is to use junior salesmen who are given the responsibility of
locating prospects in a particular territory. The junior salesmen under this method try to spot or
identify the prospects and report about the same to the salesperson. Later on the senior
salespersoncalls on the prospects to explain the features of the products or services he intends to
sell. In short, the junior salesmen locate the prospects and senior salesmen try to convert them in to
customers with their experience and professional touch. This method of prospecting is found
useful in case of products like to television, air cooler, vacuum cleaners, etc.

f. Bird dog method

This method of prospecting is a variation of the spotters’ method. As the name implies, ‘birds’
dog’ is the nickname of those persons who visit houses at regular intervals. For example, the milk
supplier, newspaper boy, gas boy, watchman, visit many households in a particular locality in their
capacity frequently. Such ‘bird dogs’ provide vital information relating to households on the basis
of which the salesperson can proceed to identify the prospects for their product and services. This
method of prospecting is economical and reliable as well. Based upon the dependable information
collected through bird dog method, the salesperson can easily establish contract with a larger
number of potential buyers over a short span of time.

g. Public exhibitions and demonstrations

Most often companies organize public exhibitions and demonstrations as a part of their
promotional campaign at regular intervals. The selling staff usually participates in such exhibitions
and demonstrations. The visitors to such exhibitions are demonstrations. The visitors to such
exhibitions are considered as leads and the names and address of such individuals taking interest in
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the products are noted by the salesperson. Later on, such individuals are contacted either at their
residences or offices for demonstration

Other methods can be:

 Market Monitoring – Through this approach leads are obtained by monitoring media
outlets, such as news articles, Internet forums and corporate press releases.
 Data Mining – This technique uses sophisticated software to evaluate information (e.g., in
a corporate database) previously gathered by a company in hopes of locating prospects.
 Promotions – The method uses free gifts to encourage prospect to provide contact
information or attend a sales meeting. For example, offering free software for signing up
for a demonstration of another product.
 Prospect Initiated – Includes leads obtained when prospects initiate contact such as when
they fill out a website form, enter a trade show booth or respond to an advertisement.

2.2 Pre-approach

If a prospect has been qualified or if qualifying cannot take place until additional information is
obtained (e.g., when first talking to the prospect), a salesperson’s next task is to prepare for an
eventual sales call. At this stage the salesperson's key focus is one learning as much as possible
about the prospect. While during the lead generation and qualifying portion of the selling process a
seller may have gained a great deal of knowledge about a customer, invariably there is much more
to be known that will be helpful once an actual sales call is made. The salesperson will use their
research skills to learn about such issues as:

1. Who is the key decision maker?


2. What is the customer’s organizational structure?
3. What products are currently being purchased?
4. How are purchase decisions made?

The job of prospecting is completed when the salespersonis able to locate the prospective buyers
and collect enough background knowledge about them. Here, the stage of pre-approach begins.
However, it is really difficult to point out clearly when the job of prospecting ends and the job of
pre-approach begins, since selling is a continuous process. Therefore, there is no clear-cut line of
demarcation between prospecting and pre-approach.
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In a nutshell, all the preparations that are made before personally approaching the prospectsis
called pre-approach.

Pre-approach means getting more detailed information about the potential buyer. At the pre-
approach stage, the salespersontries to collect some more information in addition to the
background information gathered at the prospecting stage. Such additional information about the
prospective customers include their needs, habits, preferences, nature, behavior, economic status,
and so on. These are the important information about the prospects, which significantly influence
their buying behavior. A wise salespersonattempts to obtain as much information as possible about
the prospective buyers. The more the salespersonis aware of the potential customers, the better he
is able to influence them through a well-planned sales presentation.

2.2.1. Objectives of Pre-approach

As pointed out earlier, pre-approach is the second step in the selling process. The main objectives
of pre-approach are as follows:

- Pre-approach provides additional information about the prospects over and above the information
collected at the prospecting stage. As a consequence, the salespersonis able to distinguish between
‘most likely prospects’ and ‘others’. This enables the salespersonto deal with the real and potential
customers only.

- Pre-approach helps the salesperson to plan out the most effective strategy for approaching the
prospects in advance. Thus, the salesperson is in a position to chalk out a plan of action before
approaching the prospects.

For example, if the salesperson learns which competitor currently supplies the prospect then the
salesperson can tailor promotional material in a way that compares the seller’s products against
products being purchased by the prospect.

- Pre-approach also helps the salesperson to obtain the necessary information about product or
service he intends to sell and accordingly chalk out an appropriate sales presentation and
demonstration. Such a presentation and demonstration creates favorable impression on the
prospects.

- It helps the salesperson to practice the sales talk much before the real presentation. This helps the

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salespersonin avoiding serious mistakes and lapses during the sales talk. Because the salespersonis
aware of the like, dislike, tastes, preferences and temperaments of the prospects prior to the sales
presentation, he is also expected to commit less number of mistakes.

- Pre-approach saves valuable time of the salesperson by avoiding unnecessary sales talk with
suspects. In other words, all his attention can be concentrated on the prospective buyers only.

- Since all possible information is acquired in advance through pre-approach, the salespersonis in a
position to meet the prospects with a fair degree of confidence and a lot of enthusiasm. Thus, the
chance of converting a prospect in to a customer increases considerably.

2.2.2. Sources of pre approach information

For the purpose of pre-approach, the sources of information for the salespersonare many. Some of
the important sources of information are:

a. Newspapers

- Newspapers are an important source of information for the salesperson. Local newspaper
advertisements most often contain names, addresses and other information about the prospects. At
times, prospects advertise their needs and requirements in the newspapers. Such advertisements
provide a lot of information and background knowledge about the prospects to the salesperson.

b. Company’s records

- Most often company records contain vital information regarding the past and present customers.
Generally, mail order houses maintain such records. The salespersoncan try to meet such past
customers in anticipation of future sales. Sometimes, companies undertake research or conduct
market survey in a particular locality or community. These research studies help the salespersonto
have a detailed knowledge about the prospects.

c. Customers

- Satisfied customers are an important and reliable source of information. They provide reliable
data regarding friends, relatives, and acquaintances and their likes and dislikes, income status,
family composition and so on. Satisfied customers gladly provide such information with the hope
that their friends and relatives should avail the benefit of purchasing the product or service that

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they have purchased. Thus, satisfied customers provide valuable information about the prospects.

d. Special investigation

- Certain business houses are in the habit of making special investigation about the prospects from
various dealers. These investigations provide information about the habits, requirements, likes,
dislikes, income, occupation, etc. of the prospects. The information so collected through these
investigations are quite valuable for the salespersonon two counts. One, the salespersoncan
straightway start calling on the prospects on the basis of such information. Two, the information so
collected are both detailed and reliable since it is collected by professional people.

e. Fellow salesperson

- Cordial relationship with fellow and non-competing salesmen helps in getting vital information
about the prospects. Even in certain cases, competing salesmen may provide useful clues about
certain prospects and their specific nature. Such information can be utilized by the salespersonto
his advantage.

f. Retailers

- The retailers are also an important as well as authentic source of information about the prospects.
Because, such retailers remain in close contact with the ultimate consumers, theyare in a position
to provide important and useful information about the taste, temperament, likes and dislikes of the
individual customer.

g. Directories

- Most often, various publishers publish directories comprising of personal data of different
categories of people, such as businessmen, traders, executives, doctors, lawyers, social workers
and so on. Such directories contain vital information, which are quite useful to the salespersonto
get additional information like social and economic status, specializations, achievements, etc of
the prospect.

Other sources

- There are other sources of pre-approach information for the salesperson. These sources include
personal observation of the salesperson, club members, fellow travelers, sales offices, and in some

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cases the prospects themselves. If the salespersonis keen on getting additional information about
the prospect at the pre-approach stage, there are a number of sources, which provide vital clues
and useful data about the prospects. An intelligent salespersoncan easily make use of such sources
of information.

Gather Information

By the time you’re ready for the preapproach, you’ve already done some initial research as part of
the qualifying process. With the preapproach, you take your research to the next level; you find out
as much as you possibly can about the company or individual with whom you want to do business.

You can keep this information organized using a precall planning worksheet that lists the key
company statistics you’ve identified as part of your research and includes a checklist detailing the
purpose of the call: the information you’d like to learn about the company, the solutions or key
facts you plan to communicate, and any other goals you hope to achieve. The worksheet doesn’t
have to be complex; it can be as straightforward as shown in the following sample:

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The following are some things you’ll want to know as you research the company during your
preapproach:

About the Company

Demographics. What kind of business is it? How large is the business? How many locations do
they have? How many people work for them? Where is the home office located? How many years
have they been in business?

Company news. Tracking company news is another way to discover opportunities for sales. Has
the company put out any recent press releases? Has the company recently appeared in the news?

Financial performance. Keeping up-to-date on the company’s financial performance will help

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you determine whether your prospect is currently able to buy, which might lead you to discover
sales opportunities.

About the Company’s Customers

Customer demographics. Are the company’s products used by businesses or individual


consumers? If consumers, what age, education, and income level? If businesses, what size and
kind of businesses? Knowing the organization’s customer demographics will help you tailor your
solution to the company.

Size of customer base. In B2B sales, it’s important to know whether your prospect serves many
customers or primarily works with a few large accounts. Microsoft, for example, sells its products
to large corporations, but they also deal with individual consumers. Some companies, on the other
hand, work with a few large accounts, so their success is very dependent on the success of their
key customers.

About the Current Buying Situation

Type of purchase. Knowing this information is extremely valuable during your preapproach
research. Is the customer making a first-time purchase of the product? Or will this purchase be a
rebuy? Or thinking of making a modified rebuy.

Competitor/current provider. If your prospect is already buying from another company, you’ll
want to know who your competitor is. What do you know about this company and their products?
Most important, what are your competitor’s strengths and weaknesses?

Current pricing. If the information is available, find out what your prospect’s current supplier
charges for their product or service. This information will give you the edge to competitively
position your solution. If you charge less than your competitors, you can highlight your product as
a cost-saving alternative. If your products cost more, you might consider offering a discount or
other benefit to provide a better solution. On the other hand, if your products are more expensive
because they’re of a higher quality, you should emphasize that fact.

About the Contact Person

Title and role in the company. This is basic and essential information to know. It will help you to
personalize your communications and will give you a better sense of your business situation. What
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role does this person have in the buying decision? Are you dealing with an influencer in the
organization? Does this contact person have the authority to make a buying decision, or is this
person a gatekeeper, a person with whom you must talk in order to get to the decision maker?

Professional background. How long has this person been at the company, and what positions has
he held? What roles has he had at other companies? This information will help you to adapt your
communications and solutions to the individual.

Personal information. Everyone likes to do business with people they like. Learning what you
can about your contact’s family, hobbies, and interests demonstrates that you care about him as an
individual and helps you build a relationship with your customer. This is useful information to
keep on hand for the opening of the sales call when you want to put your prospect at ease and
convince him of your goodwill.

Essential problem(s) your contact needs to solve. Knowing this information takes you right to
the heart of the issue. Maybe your prospect owns a grocery chain and needs to increase her sales in
the frozen food area with organic products. Learning the specific problems your contact faces in
his role at the company is the only way you can adapt your solution to meet his needs.

Motivation for buying. If your contact is already buying from another supplier, what reasons
might he have to start buying from you instead? For instance, is he dissatisfied with the quality of
his current provider’s service or the price of the product? If he is satisfied, what value can you
bring that provides a reason for him to consider changing suppliers? On the other hand, if this is a
first time purchase, what will drive his initial decision to buy?

2.3 The Approach

The term ‘approach’ means meeting the prospect in person by the salesman. At this stage of
the selling process, the salesman directly comes in contact with the prospect. When the
salesman personally meets the prospect face-to-face, he is in a position to understand the
prospect better. Approach is an important step in the selling process. The salesman at this
stage gets ample opportunity and enough time to attract attention to arouse interest and
desire of the prospects in the products or services he intends to sell. The salesman at this
stage tries his level best to convince the prospects in favor of the product and win his
confidence.
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2.3.1. Objective of Approach

The approach consists of two stages. One is to attempt to secure an interview and the
other is the real approach of the actual interview with the prospect. By approaching
prospects the salesman aims at achieving the following three objectives:

i. To secure favorable attention from the prospect – In some situations the salesman
uses the approach to qualify the person as a good prospect. However, the sales will go
nowhere until the salesperson focuses attention on what the sales person says.

Many times an executive who is very busy says; “Go on and talk, I can listen to you while I
finish signing these papers.” In such a situation, the salesperson should not keep on the
sales talk. What should come to mind is a person can have attention to only one thing at a
time, and your approach should gain the prospect’s undivided attention.

ii. To stimulate the interest of the prospect in learning more about the sales
proposition – You may gain the prospects attention for an instant but quickly lose it
if the prospect decided that he is not interested in hearing more from you. However, a
good approach provides the prospect a reason to listen. Tell the prospect:

How he will benefit from the product,

How he can solve his problem,

How he will be in a better position than competitors if he buys the

product, How much money he would save for having the product.

iii. To provide a smooth transition in to the stage of presentation and demonstration


– the third and often unrecognized objective of the approach is to lead easily and
smoothly in to the presentation. The transition should be so smooth that the prospect
scarcely feels it.

2.3.2. Importance of Approach

Approach is one of the important steps in the selling process. It has been rightly said that a
sale is won or lost during the interview. In fact, approach influences the prospect to
keep their door either open or close. During the first few minutes of the approach, the
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prospect decides whether he will purchase the product or not. The importance of the
approach can be described as follows:

1. Approach is most vital for the success or failure of the business because it directly
contributes to increase in sales.

2. In the competitive business world, approach is very important, because if one


approach fails, other competitors make successful approaches and win
customers.

3. The approach increases the prospect’s knowledge about the product or service
like quantum of his benefits and utilities.

4. Modern day people are so busy that they get little time to know about the products,
new innovations, new features, and new developments, in detail. As prospects they are
able to get all such information from the salesman during the approach stage itself.

2.3.3. Gaining an interview

The very first difficulty the salesman faces in the process of approach is to get or gain an
interview with the prospect. Generally the prospect may not be interested in either – the
salesman, or his sales talk or may not be interested in purchasing the product the salesman
wants to sell. Therefore, it is very difficult on the part of the salesman to obtain an
interview with the prospect. However, he has to get an interview with the prospect
somehow and develop favorable attention and positive interest in the products or services
he intends to sell.

Usually, business executives and top ranking officers have private secretaries,
receptionists and many other subordinates and assistants to keep themselves away from
unwanted persons. Unless the salesman has got some valid propositions and does not want
to waste the superior’s valuable time, subordinates usually do not allow the salesman to
meet their superiors. Thus, the salesman has to pass through strict and stringent checks
in order to meet the prospect face-to-face.

The first job of the salesman in trying to obtain the interview of the prospect is, therefore

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to convince the subordinate. The idea or the proposition should be convincing to the
subordinates first. Then only the salesman is allowed to meet the prospect. It is important
that the salesman give due respect to the secretary or the receptionist or any other
subordinate he comes. They should be praised for their favor and thanked for their
cooperation in allowing the salesman to meet the prospect.

Method of Gaining an Interview

Usually there are several methods of gaining an interview. Some of the important
methods of gaining an interview are as follows:

1. Personal call without introduction

Under this method, the salesman tries to approach the prospect straightway without any
introduction. It is a simple and direct method gaining an interview. Usually, the salesman
introduces himself by stating his name, the company he represents, the purpose of his
visit, the nature of his proposition, and tries to make an appeal to the prospect.

2. Sending in the business card

Visiting cards or business cards are quite common these days with almost all business
organizations and selling personnel. Nowadays, it is a very common method of getting an
interview with the prospects. Almost all firms and marketers print their name and
addresses on cards in a decent and distinctive way. These cards are quite attractive and
distinctive in appearance. In most of the cases, business card is given at the beginning.
However, in order to have concentrated and lasting impression, sometimes the business
card is handed over to the prospect at the end of the sales talk.

3. Writing for an appointment or interview

Under this method, the salesman writes in advance to the prospects seeking his
appointment or interview. Sometimes, the purpose of the visit and the sales propositions
are also mentioned in the letter. In such cases, the prospect is given the liberty to fix the
interview at a date and time convenient to him. Such letters must be written carefully in an
attractive manner so as to arouse the interest of the prospect.

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4. Personal call with introduction

Nowadays, this is considered as one of the important method of obtaining an interview


with the busy executives and officers. Under this method, the salesman meets the
prospect as an acquaintance rather than a stranger. Therefore, the possibilities of winning
a sale are bright under this method. A mutual friend of the salesman may give introductory
letters to the salesman or pass on a message through telephone or letter to the prospect.
Sometimes, sales officers and fellow salesmen who are known to the prospect may write
introduction letters. On that basis, the salesman can set up building relationship with the
prospect with intelligence and determination.

5. Appointment over Telephone

In case the salesman is personally confident of creating a favorable impression on the


prospect and draw his interest through telephone, he can depend upon this method for
gaining an appointment or interview. Under this method, the salesman invites the prospect
to discuss the matter, and allows the latter to speak out more and more over telephone. As
there is always a greater possibility of getting a ‘No’ reply, most of the companies do not
approve this method of approach by their salesman. But in case such method is adopted
the salesman should abide by certain fundamental rules while making the approach over
telephone.

6. Use of Premiums or Door Openers

Sometimes business firms send their salesman with small and attractive gifts premiums.
These are otherwise known as ‘Door Openers’. These premiums are usual gifts of small
value like pens, calendars, diaries, toys, pen stands, paperweights, ashtrays, models of the
product, etc. These smallgifts usually prove to be important and useful for breaking the
initial barriers for the sales talk as the prospect readily grants an interview or
appointment. Individual prospects may be presented with personal gifts while company
and organization prospects are presented with gifts through the secretaries and
receptionists. Generally, these gifts are presented to the prospects before the appointment.
As a result, the prospects remain obliged and keep their doors open for the salesman.

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7. Use of Sale Letters

This is also an important method of gaining an interview. Under this method, the firm
sends sale proposal letters to different prospects in advance. As a result, the firm
becomes familiar with the prospects beforehand, and keeps their door open for the
salesman. During his visit, the salesman finds little or no resistance from such prospects.
Such sale proposals are usually drafted by experts and signed by important officials of the
company. Sometimes, carefully drafted letters carry much weight and are able to arouse
much curiosity in the minds of prospects.

The main distinction between a sale letter and an introduction letter is that the sale letters
describe the product and its utility in detail. Very little description about the salesman is
made in such sale letters. On the other hand, the introduction letters describe more of the
salesman and a little about the product or the sales proposition.

2.3.4. Essentials of a Good Approach

There are certain fundamental principles of a good approach. Though the choice of the
approach largely depends on the seller of the product or service, on the one hand, and the
prospect, on the other, there are certain basic principles of a good and effective approach.

At the first stage of approaching the prospect the salesperson should introduce him/her to
the prospect. Furthermore he should outline the purpose of his line and build rapport with
the prospect.First impression is not only important but also crucial to the success of the
salesperson and everyeffort must be exerted to obtain the prospect’s attention and arouse
his interest on theproduct. Some of the factors that help in making favorable first
impression include:

� Clothing: wear neat clothes

� Be clean and carefully groomed

� Know the prospects name and pronounce it correctly

� Be alert and pleasant

� Let the prospect offer the shake hands

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� Forget about yourself and concentrate on the prospect

� Avoid bad habits like smoking and chewing gum while with the prospect.

A number of considerations need to be made in making the stage of approach effective


and proceeding to the next stage. Some of the principles the salesperson need to adhere
include:

1. Making Appointments

While arranging for interviews, the salesman should fix the same at an appropriate time.
Usually, theappointment times are either fixed or elastic. Whatever be the case, the
salesman has to plan his visitaccordingly. Further, the salesman should neither be in a hurry
nor waste his own time. Thesalesman should alwayskeep in mind that the time of the prospect
is precious. Therefore, theprospect should never be kept waiting nor should his valuable
time be wasted. During the appointedtime, the salesman should try his level best to be
punctual for his interview, besides being brief and to the point in the sales talk.

2. Making the Prospect Feel Relaxed

At this stage, the salesman has to deal with the prospect on emotional grounds. The
salesman can tell the prospect that he has come only to put forward his sales proposition
and that he does not intend to sell immediately. In order to bring back the prospect in to a
relaxed mood, the salesman can talk about his hobbies, sports activities, etc. A brief
discussion of these personal matters generally reduces the tension of the prospect
considerably and he becomes relaxed. At this stage, the salesman can start his sales talk
and win over the customer.

3. Timing of the Approach

In order to ensure success the salesman should be very particular about the timing of the
approach. An intelligent and wise salesman always tries to need the prospects at the most
appropriate time. They avoid meeting them during busy hours and tense moments. An
intelligent salesman tries to meet the prospect when he is in a relaxed and receptive
mood.

For example, when the prospect gets a promotion or is showered with any such success or
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good news, a clever salesman approaches him to congratulate him for such achievements
as well as put forth his sales proposition. Similarly, to sell products like fans, refrigerators,
air coolers, etc. the salesman should meet the prospect just before the summer season.

So, choosing the appropriate time for putting forth the sales proposition is of prime
importance in salesmanship.

4. Use of Business Card

Nowadays, it is quite common to use business cards. Some experts in this field preach that
businesscard should be given immediately after the interview. Some others believe that it
should be sent inadvance and used as a method of gaining the interview. Still, some others
suggest that small gifts can be presented along with the business card to impress the
prospect. The method to be adopted in presenting the business card depends upon the
situation. It is up to the salesman to decide the time of presenting business cards to the
prospects.

5. Appearance

The appearance of the salesman is of much significance in approach because what others
think of him is crucial for his success. The first appearance that a salesman makes before
the customer creates the most important impression. In fact it is the biggest asset for the
salesman. The salesman ought to dress and talk like a professional. Very often the
appearance of the salesman is a determining factor for the success or failure of his
approach.

6. Avoid Early Dismissal

Quite often the salesman develops the fear of early dismissal before he can present his
sales proposition. But such a notion should be discarded. The salesman should be
optimistic in nature and always hope and be confident to win the sale. The salesman
should plan his sales talk carefully so that the interest of the prospect is automatically
aroused about the product. He has to provide important information about the product
tactfully, to gain favorable attention of the prospect. This helps to avoid early dismissal
of the salesman.

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7. Never Apologies

Some salesmen are in the habit of apologizing again and again without any reason while
talking withthe prospects; tender apology for taking valuable time of the prospects. It
should be avoided.The prospect should be made to feel that the salesman is doing him
a favor through the sales proposition. Further, the prospect should also feel that the
salesman has come with a solution to his problem in the form of a sale. Otherwise, when
the salesman begs apology, the prospect develops doubt about the sales proposition of the
salesman.

8. Win Buyer’s Undivided Attention

The salesman should try to win undivided attention of the buyer so that the latter
automatically develops interest in the sales proposition. Some prospects are in the habit of
doing something elsewhile talking to the salesman. Some others deliberately attempt to
discourage the salesman by doing some other work like signing letters, reading reports,
newspapers, and so on. Under such circumstances the salesman should try to draw his
undivided attention towards the sales talk. This may be done by flattering the prospect, by
presenting the product, by demonstrating the product, by displaying the charts, by showing
testimonials of satisfied customers, etc. The salesman should, therefore, try to develop
positive interest of the customers and hold their undivided attention in the product.

9. Call Back

All sales talks do not bear fruit in the first attempt straightway. If the salesman fails to
clinch a sale in the first attempt or the prospect does not need the product or service at
that time, the salesman should always leave the door open. In other words, he should think
of some reason to call back the prospect in future.

2.3.5. Methods of Approach

There are several methods of approach. The salesman has to master all these types of
approach andtheir suitable use. In other words, knowledge of all the methods of approach
enables the salesman touse particular method for an appropriate case. He may start the
approach in one method and closethe approach in another method. Further, there is no such
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method, which can be called the best to suit every prospect. Following are some of the
important methods through which a salesman can approach the prospects:

1. The Introductory Approach

This is one of the most common methods of approach used by the salesman. During his
visit to the prospect, the salesman greets like ‘Good morning Mr. Daniel, I am Mr.
Girma from International Refrigerator Company.’ After the formal introduction, the
salesman starts talking about his sales proposition. This is the most appropriate method
of approach when the salesman represents big and reputed organizations because most of
the customers give importance to well reputed firms. As a result, the salesman is able to
get favorable attention of the prospect. However, this method fails to get favorable
attention of the prospects if the organization is small and unknown. Therefore, small
organizations usually do not use this method of approach.

2. The Curiosity Approach

Some salesmen make an appeal to the curiosity instinct of the prospect and try to receive
attention. While seeking interview with the prospect, the salesman sends curious
messages either on the business card or on a slip to appeal to the instincts of human
curiosity. For example,‘Will you give me a few minutes of your precious time in solving a
business problem?’ Such sentences, if used tactfully, work like a trick to open the door of
the prospect. However, such a method used unimaginatively may backfire and the
prospect may reject the appeal outright.

3. The Product Approach

Under this approach, the salesman hands over the product to the prospect. The prospect,
thus, gets an opportunity to examine the product by seeing, touching, smelling, hearing
the product. In such cases, it must be noted that the product has to be new, attractive,
popular and eye-catching. By handling the product himself, the prospect’s interest is
automatically aroused and he may get inclined to purchase the product.

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4. The Consumer Benefit Approach

This is also an important method of approach. As the name indicates, under this method
the salesman points out one or more benefits, which will be available to the prospects in
terms of product performance. He also explains the utility that the prospect will derive out
of the purchases.

For example, the salesman may ask certain questions like, ‘Would you like to increase your
office efficiency by 40%? Would you like to cut down your electricity consumption by
15%? Would you like to reduce your fuel consumption by 20%?’

These statements generally invoke a lot of curiosity in the prospects because the salesman
offers some visible benefits. Later on, the salesman can demonstrate how the prospect will
be benefited byincreasing office efficiency by using office automotive equipment,
computer or by installing compact fluorescent lamps and bulbs, and how he can save
electricity by installing solar lighting system.

5. The Premium Approach

This is one of the popular methods of approaching and getting the attention of the
prospects. Under this method, the salesman hands over small gifts and novelties like
calendars, diaries, pens, pencils, ashtrays, toys, paper weights, etc. to the prospects.
These small but attractive gifts usually create a favorable impression in the minds of the
prospects and also create goodwill for the firm, thesalesman and the product. As a result,
the salesman can put for his sales proposition in a permissive atmosphere and feels
comfortable with the prospect. During such an approach, if the prospect is kept in a
cheerful and receptive mood, the salesman can gain a lot.

6. The Shock Approach

Under this method of approach, the salesman resorts to shock treatment of the prospect.
The element of fear arises in every individual due to old age, death, burglary, sickness,
security, etc. When such a fear is aroused in the prospect, it creates a shock and the
prospect is compelled to givea serious thought and take necessary remedial measures or
preventive actions for the same. Being reminded of future shocks and problems, the

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prospect is compelled to think of future quite seriously. Salesmen use this method
exclusively to sell services relating to human hazards like life insurance, burglary
insurance, fire insurance, accident insurance, and products like water purifier, air purifier,
vacuum cleaner, etc.

7. The Compliment Approach

Appreciation, praise and compliments are the best tools to open an interview. Some
salesmen compliment and praise the prospects while approaching them. However, this
approach needs to beused sparingly and in appropriate cases only. Otherwise, the salesman
can find himself thoroughlyexposed before the prospect. Proper application of this
approach can do wonders for the salesman.

8. The Survey Approach

Sometimes, the salesman conducts thorough pre-surveys about the prospects before the
approach. Such a survey enables the salesman to know beforehand, the need, taste and
temperament of the prospect. Consequently, the salesman is able to present his sales
proposition in the most effective manner before the prospects. The prospect also takes
considerable interest in such sales talks because the salesman presents things in
accordance to his needs and wants. However, there should be a proper survey of the
prospect’s needs, likes, dislikes, etc. Otherwise, mere guesswork may prove to be disastrous
for the salesman.

9. The Showmanship Approach

Under this method, the product and the sales proposition is presented in a dramatic manner
before the prospects. No doubt, certain prospects appreciate showmanship. In such cases,
salesman can present his proposition in a dramatic manner when the situation demands it.
However, this methodshould be applied in selected cases only, particularly, with women
folk and prospects belonging to rural areas that easily get attracted and carried away by
dramatic approaches.

10. The Question Approach

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To gain an interview under this approach, the salesman puts different types of questions
to the prospects. Nowadays, this method is gaining popularity. This method becomes more
effective andresult oriented when used along with other approaches like consumer benefit
approach and curiosityapproach. The question asked by the salesman must be suitable and
specific and should also matchthe requirements of the prospects. Besides, the salesman
should be very particular and clear about the questions to be asked. However, it should not
center on the buying motives of the prospects.

There are several other approaches like the statement approach, in which the salesman
states the benefits of the purchase to the prospect. Whatever the approach may be, it should
be noted that thesalesman cannot be successful unless he is aware of the needs of the
prospects. Once the salesman isaware, he can plan his approach in advance, which will
ensure positive results. The salesman shouldalways verify the applicability of the particular
method prior to its use. He can modify the methodsaccording to the need of the situation. If
the situation demands, the salesman can start the approach by one method and
subsequently shift to another method. Similarly, he can use two or more methods to
approach the prospect. This is possible only when the salesman is well aware of and well
versed with all the methods of approach.

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2.4 presentation and demonestration

Sales Presentation

The sales presentation is the main body of the sales call and should occur after the
salesperson has predetermined the needs of the customer. This step can be one
presentation or multiple presentations over a period of time. Goals for the sales
presentation will vary. First-time buyers must get sufficient information to adequately
understand the product’s benefits, which may be facilitated by building the presentation
around a product demonstration. Selling points and attributes are visualized and built
around a call agenda or sales proposal.

2.4.1 Essential Features of Presentation

Although there are so many factors that affect your sales presentation, the first
impression you make is critical for success. When you first meet your prospect the
initial impression you make is based on appearance. If this appearance is favorable, your
prospect is more likely to list to you, butif it is not favorable, your prospect may erect
communication barriers that are difficult to overcome.

The first impression is centered on the image projected by your (1) appearance, and (2)
attitude. Here are some suggestions for making a favorable first impression:

� Wear business clothes that are suitable and fairly conservative.

� Be neat in dress and grooming.

� Refrain from smoking, chewing gum, or drinking when in your prospect’s office.

� Keep an erect position to project confidence.

� Leave all unnecessary materials outside the office (overcoat, umbrella, or


newspaper)

� If possible, sit down. Should the prospect not offer a chair,ask. “May I sit here?”

� Be enthusiastic and positive about toward the interview.

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� Smile, always smile! (Try to be sincere with your smile; it will aid you in being
enthusiastic and positive about your prospect.)

� Do not apologize for taking the prospect’s time.

� Do not imply that you were passing by and that the sales call was not planned.

� Maintain eye contact with the prospect.

� If the prospect offers to shake hands, do so with, firm positive grip while
maintaining eye contact.

� If possible, before the interview, learn how to pronounce the prospects name
correctly and use it throughout the interview. Should the prospect introduce you
to other people, remember their names by using the five ways to remember
names indicated below.

Like an actor, the salesperson must learn how to project and maintain a positive,
confident, and enthusiastic first impression no matter what mood the prospect is in when
first encountered by the salesperson.

� Your sales call objective.

� The type of approach that will be well received by the customer,

� Your customer benefit plan.

These factors must be examined and assigned a degree of importance before entering
your customer’s office. This approach selection process can greatly aid in making a
satisfactory impression.

I. Be sure to hear the person’s name and use it. “It is good to meet you, Mr.
Firestone.”
II. Spell it out in your mind, or if it is an unusual name, ask the person to spell the
name.
III. Relate the name to something you are familiar with, such as relate the name
Firestone to Firestone automobile tires.
Types of Sales Presentation

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There are three major presentation formats exist: (1) stimulus-response format, (2) formula
selling format, and (3) need-satisfaction format.

1. Stimulus-Response Format: The stimulus-response presentation format assumes


that given the appropriate stimulus by a salesperson, the prospect will buy. With
this format thesalesperson tries one appeal after another, hoping to "hit the right
button". A counter clerkat McDonald's is using this approach when he or she asks
whether you'd like an order of French-fries or a dessert with your meal. The
counter clerk is engaging in what is called suggestive selling. Although useful in
this setting, the stimulus-response format is not always appropriate, and for many
products a more formalized format is necessary.

2. Formula Selling Format: A more formalized presentation, the formula selling


presentation format, is based on the view that a presentation consists of
information that must be provided in an accurate, thorough, and step-by-step
manner to inform the prospect. A popular version of this format is the canned
sales presentation, which is a memorized, standardized message conveyed to
every prospect. Used frequently by firms in telephone and door-to-door selling of
consumer products, this approach treats every prospect the same, regardless of
differences in needs or preference for certain kinds of information.

Canned sales presentations can be advantageous when the differences between prospects
are unknown or with novice salespeople who are less knowledgeable about the product
and selling process than experienced salespeople. Although it guarantees a thorough
presentation, it often lacksflexibility and spontaneity and, more important, does not
provide for feedback from the prospective buyer-a critical component in the
communication process and the start of a relationship.

3. Need-Satisfaction Format: The stimulus-response and formula selling formats


share a common characteristic: the salesperson dominates the conversation. By
comparison, the need-satisfaction presentation format emphasizes probing and
listening by the salesperson toidentify needs and interests of prospective buyers.
Once these are identified, the salesperson tailors the presentation to the prospect

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and highlights product benefits that may be valued by the prospect. The need-
satisfaction format, which emphasizes problem solving, is the most consistent
with the marketing concept. Two selling styles are associated with this format:

i. Adaptive selling involves adjusting the presentation to fit the selling situation, such
as knowing when to offer solutions and when to ask for more information.

ii. Consultative selling focuses on problem identification, where the salesperson


serves as an expert on problem recognition and resolution. Both styles are used for
industrial products such as computers and heavy equipment. Many consumer service
firms such as brokerage andinsurance firms and consumer product firms like AT&T
and Gillette also subscribe to these selling styles.

A good sales presentation is also expected to have the following essential features:

Ê Arousing Interests: In the beginning, the salesman has to arouse the interest of the
customer. He can indicate the special features of the products, i.e. durability,
composition, etc. so that the customer’s interest is aroused about the product.

Ê Promptness in presentation: The salesman should always be prompt and alert. He


should be prompt in presenting the goods to the customers, which indicated his
eagerness and willingness to serve. Such an attitude of the salesman creates a
favorable impression in the mind of the customers and their response becomes
spontaneous and positive.

Ê Clarity in presentation: The salesman’s presentation should be clear and complete in


every aspect so as to win the confidence of the customers. A high level of clarity in
the sales presentation removes all possible doubts about the products from the minds
of the prospects. The salesman, therefore, should explain the use and operation of the
product along with its price, durability, benefit and special features, if any.

Ê Showing proper quality and quantity: The salesman must show the appropriate
goods of exact size and quality as desired by the customers. In case a customer is
unable to express his specifications about an article, the salesman should present
products of medium grade or qualitywhich is neither cheap nor low grade nor highly
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superior and costly. This enables the customer to come to a conclusion and may either
ask for a high quality or low quality product as per his requirement.

Furthermore, the customer must be shown sufficient varieties of goods so that he is able to
make his choice out of them. It should be noted that showing too many varieties can
create confusion and showing too few varieties may not be sufficient to convince the
customers.

2.4.2 Significance of Demonstration

A good demonstration provides a number of advantages. Some of the important aspects


of demonstration are as follows:

1. Demonstration enables the salesman to show specific features of the product or


service more clearly, which cannot be presented orally. For example, in case of a
vacuum cleaned demonstration is more effective than the description.

2. It creates a lasting impression in the minds of the prospective buyers because they
see the live demonstration of the product or handle them personally.

3. It gives the prospects an opportunity to experience the benefits and utilities to be


derived from the owning of the demonstrated product.

4. Demonstration provides an opportunity of proving as to what the salesman is


claiming about the product. The salesman can easily demonstrate the claims of the
product through tests, experiments and operations. Thus, the conviction of the
prospective buyers is secured more readily by demonstration.

5. By proper demonstration, the customer’s sense of curiosity about the product is


considerably satisfied. As a result the salesman is relieved from long, bore some and
repetitive sales talk.

6. It also relieves the natural sales resistance of the prospects by taking their minds
off the business of buying. Rather it focuses their attention on the satisfaction and
utility that they willbe deriving out of the ownership of such products. This is
particularly true in case of high priced goods.

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7. Demonstration also provides a golden opportunity to the prospects for making
comparisons with the competing products. Trough observation and trial, the
benefits and utilities of the products are compared with rival products to arrive at firm
purchase decision.

8. Many buyers, more particularly, rural based, are visual oriented. In such cases
demonstration of the product in operationappeals quite favorable to the prospects,
thereby creating a lasting impression.

2.4.3 Essential features of a Good Demonstration

There are certain essential elements, which help to make the demonstration more
effective. Following are some of the important elements of a good demonstration:

The product to be demonstrated should be available for displaying its features. If


possible, the salesman should use the local and regional language and dialects to
make the prospects comfortable during the sales talk. If the product is bulky and
heavy, models and pictures can be used for the purpose of demonstration. In some
other cases, color slides and film stripes can also be used for demonstration.
However, it should be borne in mind that the best impression can be made only
through demonstration of the real product.

Sometimes the salesman tries to highlight a special function or show the special
features either by operating or by testing the product through the prospect.
Demonstration of the product is highly effective in such cases for pointing out special
and specific features.

When the presentation of the product across the counter is not possible, test reports,
operator’s opinion, survey findings are shown to the prospects. This method is used in
case of heavy machineries and bulky articles for which live demonstration is not
possible. Therefore, in orderto convince the working capability and quality of the
products and services,testimonials can be used to win over the confidence of the
customers.

Demonstration facilitates comparison and contrasting of various qualities and merits of


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products and thereby the superiority of particular product over others is proved.
Thusthe salesman can clearly point out the degree of difference among different
products regarding quality, utility, durability, design, color, etc. to the prospect to
win over their confidence.

The salesman should allow the prospects to handle the product themselves. This helps the
prospects to arrive at the purchase decision easily and quickly.

The demonstration should be made of all details of the product. A clear and detailed
demonstration generally removes all possible doubts from the minds of the customers.
Nothingshould be concealed from the prospective buyers; so that they carry the
impression the salesmanis honest. All do’s and don’t do’s should be demonstrated and
explained. As a matter of fact, clean and clear demonstration enables the salesman to
win the confidence and ultimately the conviction of the prospects.

2.4.4 Types of demonstration

Demonstration can be of two types: demonstration in use and demonstration of specific


features.

a) Demonstration in use

The most effective way of demonstration is to show the reality of the product when in use.
In fact customers are usually very much impressed by this kind of demonstration. So, in
order to win the confidence, the salesman can allow the customers to use the product and
examine themselves.

For example, while selling coat, shirt, sweater, tie, shoe, sunglass, etc. the salesman may
ask the customer to try and look in to the dressing mirror. If the customers find the product
meeting their choice and requirement, they may experience the immediate impulse to buy.

b) Demonstration of specific features

Some articles are very popular for their special features and advantages. There are also
some products for which a full-fledged demonstration is not possible. In such cases,
special feature and additional advantages can be demonstrated.

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For example, unbreakability, Leak-proof, waterproof, fireproof, shockproof and other such
features of the products can easily be demonstrated with special emphasis on the specific
aspects.

2.5 Objection & Overcoming the objection


Very often it is said that the selling process begins only when prospects raise objections.
If no objections are raised, the salesman remains merely an order taker.

Objections are excuses for not making a purchase commitment or decision. Some
objections are valid and are based on the characteristics of the product or service or
price. However, many objections reflect prospect skepticism or indifference.

An objection is the expression of disapproval of an action taken by the salesman. In


other words, objections are the feelings disapproval and usually rose by the prospects.
Once an objection is raised, it indicates that the prospect is undecided about the purchase.
Further, it also points out that the prospect is in need of the some more convincing and
persuasion to arrive at a decision. It isthe duty of the salesman to remove all possible
doubts and queries from the minds of the prospects,which gives birth to objections. This
objection raised by the prospect is otherwise known as sales resistance.

2.5.1 Why do Prospects Object?


There are a number of reasons behind the objections raised by the prospects. Some of the
important reasons are:

� People in general, have the tendency of natural aversion to new and unfamiliar
ideas and goods. Therefore, many consumers raise objectives as a natural
phenomenon.

� Some prospects raise objections because they are not fully convinced about the
product or service for sale. In other words, they are only partially convinced and still
they are in need of explanations, classifications, and additional features about the
sales proposition.

�Some prospects, particularly the educated and the tactful ones, raise objections to
test the salesman’s knowledge and patience.

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�Sometimes, Objections are raised as mere excuses because the prospects may not
possess the required purchasing power.

� Some prospects raise objects if the salesman starts pressuring them or uses some
unfair means to sell the product.

�Some prospects raise objections merely to postpone buying, or they really do not
want to buy.

�They raise objections in an attempt to secure more information.

�Some prospects raise objections if he salesman is not able to recognize their real
need.

�Some prospects find objections as a means to avoid unwanted salesman.

2.5.2 Procedure for Handling Objections

Overcoming objections is one of the crucial and delicate stages in the selling process. The
successof a salesman depends to a great extent on the successful handling of objections
raised by prospects.There are certain techniques, which are helpful in successful handling
of objections. Following are some of the important techniques:

1. Listening attentively

Before any attempt is made in meeting objections, first of all the salesman should listen
to the prospect attentively. While talking, the prospect should not be interrupted in the
middle. A patienthearing proves to be of great help to the salesman. First, the prospect's
enthusiasm to raise further objections gradually dies down. Secondly, the salesman is able
to understand the objections in its right perspective. Therefore, adequate time to raise
objections must be allowed and direct confrontation with the prospect during this talk
should be avoided.

2. Cushioning the jolt

The cushion technique makes the shock of the objection lighter. This works like a shock
absorber.The salesman has to soften the jolt of the objection considerably, by softening it.

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For example, he can invite a third party to act as the neutral judge, and seek his unbiased
opinion. This calms the objection of the prospect and helps the salesman to establish his
views before the prospect. Sometimes, it becomes essential for the salesman to agree with
the prospect's objection, to a certain limit. This also helps to soothe the prospect to a
great extent.

3. Anticipating objection

One of the most effective methods of meeting objections is to anticipate them in advance
and answer them before it is raised by the prospect. An intelligent salesman usually
covers all possible objection points to be raised by the prospect and their possible
answers during his sales talk. As such, some of the objections are clarified before they
are actually raised.

4. Admitting valid objections

A good salesman always welcomes valid objections. However, valid objections are
explained intelligently by the salesman so that the prospect is fully convinced. For
example, when a prospect complains about the high price, he has to admit it. But he can
overcome the objection by saying that good quality and durable articles always cost a bit
high. Thus, the salesman requires a lot of skill and tact to answer such objections.

5. Preventing objections

While presenting a sales talk, salesmen generally make some common mistakes. These
mistakes include the salesman telling sentences like, 'You cannot challenge me', or 'I am
telling you it is so,' or 'you do not know anything' and so on. By avoiding such silly
mistakes, the salesman can prevent subsequent objections. He should take all
precautionary measures not to use over positive and egoistic sentences and also not to
prevent the customer from saying anything during the sales talk. The salesman should
always remember that if the ego of the prospect is hurt, it would lead to the emergence of
so many objections. All objections should be met in a tactful and defensive manner.

Methods of Handling Objections

Despite all the care, caution and adoption of all precautionary measures during the sales
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talk, the salesman can never ensure that prospects will not raise objections at all. As
pointed out earlier, raising of objections by the prospects is an integral part of the sales
process. The salesman should always treat objections as an opportunity to present his
sales propositions in a refined manner. Sometimes, the prospect raises some unexpected
objections that even the mostintelligent salesmanfails to anticipate. However, once
objections are raised they are to be clarified. A salesman in fact,cannot escape the
responsibility of meeting or handling objections raised by the prospects, since it has to be
done for mutual benefits.

2.5.3 Methods of Handling Objection

There are several methods of handling objections and a few important methods are
discussed below:

1. Direct Denial Method

Normally a salesman should avoid confrontation or contradiction with the prospects.


However, at times, it is essential to do the same while meeting objections. As the name
implies, (under this method the prospect is told that he is mistaken. This method is an
offensive form of handling objections. Therefore, there remains a greater possibility of
offending or hurting the feelings of the prospects.)

This method can be used successfully only when the prospects are broad minded and frank.
(While using this method, every care must be taken so that the customer is not offended).
No doubt, this type of direct denial of meeting objections becomes necessary in some
select cases. For example, ifthe prospect questions the genuineness of the product or the
validity of its utility, it becomes almostessential for the salesman to directly contradict the
same. The salesman can politely tell the prospect that this idea is wrong. Thus, direct
denial based on facts and logic and presented sincerely and politely can be an effective
method of answering objections of the prospects.

2. Indirect Denial or Yes … But Method

This is one of the most popular and widely used methods of overcoming objections raised

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by the prospects. It is also often termed as side-stepping method. Under this method,
initially the salesman agrees with the objections raised by the prospect but subsequently
differs in a humble and polite manner. No doubt, most people hate to be contradicted or
denied on their faces but can be conquered through convincing. This method suits such
situations. This method is popularly knownas 'Yes … but method' or 'you are right but …
method ‘or’ I agree but … method'. This method has the inherent strength of making the
prospect understand that the salesman clearly realizes the objection. To satisfy the
customer, the salesman meets the objection with further explanations andadditional
demonstrations. For example, the salesman may say, 'I agree with you Mr. … but in this
case … or you are quite right sir, but don't you also think that …'. This method is nothing
but denying tactfully and politely the objections without offending the prospect.

3. Reverse Position Method

This is also known as 'why method' or 'question method'. Under this method, instead
of explaining the objections, the salesman asks the prospect questions relating to the
objections such as 'why' and 'what do you really mean, Sir? In other words, the prospect
is asked as to why he thinks like that. The prospect when confronted with such a question
not only hesitates to raise further objections but is also made to answer his own
objection.

4. Boomerang Method

In this method, the objection of the prospect is converted into a reason in favor of a
purchase. This method is also known as 'translation method' because it converts the
objection in the minds of customers into a reason for making a purchase. In other words,
when the prospect raises an objection, this method converts the objection into
boomerang. For example, the prospect may create an objection about the price of the
product saying price is too high. Under such circumstances, the salesman can hit back
saying, this is exactly the reason why I believed you needthe article. The manufacturer
provides a five year guarantee and after sales services. He can inform about the discount
and other related services associated with the purchase.

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5. Superior Point or Compensation Method

In this method, the salesman frankly admits the validity of the objection raised by the
prospect, but simultaneously, offsets the objection by a superior point of greater
advantage. In other words, the salesman points out an advantage, which is supposed to
compensate the objection. For instance, when the prospect raises the objection that, 'This
cloth does not seem to be of high quality', the salesman can reply that 'You are right, sir,
had it been of high quality, the price would have been considerably higher'. Here low
price compensates the low quality. In this method, the prospect's objection is not really
disposed off. Only his attention is drawn from the objection to a compensating advantage
of the product

6. Pass up Method

Under this method, the salesman clearly passes up most of the objections. The salesman
just smiles or merely shrugs his shoulder or uses any other method to avoid answers to
objections. However, such dodging can successfully be applied only while meeting minor
objections, false excuses and trivial things having little base. In fact, such objections are
not worth meeting. This method is not recommended for use in case of objections based
upon valid grounds.

2.5.4 Some Common Objections

There are certain common objections, which are usually raised by the prospects. These
common objections are as follows:

1. Price Objections

It is the most common type of objection raised by the prospects in many countries. It is
an economic excuse. Objections based on price may be of two types. In order to overcome
such price-related objections, the salesman may adopt the following methods:

a. Offer substitute: The salesman can offer substitutes that are comparatively
cheaper.

b. Justify the price: The price can be justified by the salesman by explaining about

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the quality, utility and durability of the product. He can also compare the product
with other competingproducts and prove its superiority. Even in some cases, he has
to show invoices, cash bills, etc. to prove the price.

c. Offer discounts: When some prospects raise objections about the price, the
salesman offers discount to them so that they buy the product or service.

d. Offer installment payment: The salesman can also offer installment payment
facility (in case it is available) to the customer who plans to pay the price in
installments.

e. Price factor can be avoided: Sometimes the salesman can avoid talking about the
price when the customer raises objection, and start talking about the durability,
utility and services of the product.

2. Payment Objection

At times, customers may object to buying because of non-availability, no ready cash or


inadequatecash to pay the full price of the product. It may be genuine or a mere excuse. If
such objection isfound genuine, the salesman can offer credit. He can tell that the
customer need not worry for themoney at present or that he needed to partly pay now and
take the product home. He could allow the customer to pay the rest amount fully or in
installments at a later period.

3. Service Objections

Very often, the salesman is confronted with objections regarding the services offered by
the organization. Some common service objections relate to repair, delivery of goods,
timely attendance of the worker, etc. The salesman while meeting such objections has to
emphasize the service facilities offered by the organization. He can illustrate prompt
service by expert service personnel,quick delivery at doorstep, prompt attendance of
service or repair calls and so on. In order to prove his point, he can present the
testimonials of leading users and service experience of satisfied customers.

4. Time to Buy Objection

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This is another important objection. Some prospects may say that they do not want to buy
the product now. Some others may tell that they are not interested in the product at
present. Some others may even express that they are waiting for the new model and so
on. While meeting such objections, the salesman has to emphasis the value of time and
induces them to purchase immediately. In some specific cases, he can say that in the near
future the price is going to rise or thenew model will be too costly or the new model will
enter the market after a long period and so on.

Besides, there are several other types of objections, like objection on the company or the
firm to which the product belongs, objections in relation to the changes incorporated in
the product, objections regarding to the new product, etc. which are usually raised by the
prospects. Some prospects even raise objectionsabout the salesman's personality,
tactful. Further, the salesman should have a thorough knowledge about the product, the
firm, supply conditions, service facility offered along with the product, financial
condition of the buyers in order to tackle the objections successfully.

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2.6 Closing the sale and Follow up

5.1. Closing The Sales

The close is defined as the successful completion of the sales presentation culminating in
a commitment to buy the good or service. Once any objections have been successfully
overcome, the salesperson must actually ask for the business and thus begin the process of
closing the sale. This step traditionally has been trumpeted as difficult for many
salespeople (especially new salespeople)because many simply do not ask for the order. A
innumerable of closing tactics are available, some of which are quite colorful.

Closing is the process of helping people makes decision that will benefit them. You help
people make the decision by asking them to buy. As successful salespeople know, there
are no magic phrases and techniques to use in closing a sale. It is the end result of the
presentation. If everythinghas been done to properly develop a sales presentation, closing
the sales is the next step in a logical sequence.

In all forms of selling, closing is a continual process. It is gaining acceptance on minor


points (trial closes) throughout the sales process, leading to final acceptance of the
product. When you are confident that the prospects have accepted a property, and the
property truly fulfills most of their wants and needs, lead them to the final decision. It is
important to honestly feel you have found theright house for your prospects. It will do little
good for you to draft an offer on a property only to have the buyers back out later.

At the stage of closing, the prospect is converting into a customer. At this level of selling,
the abilityof the salesman to convert the desire of the prospects into expressed demand is
put to crucial test. Alot of self-confidence, tact and experience is required for the salesman
to close the sales successfully.

So when should you attempt to close a sale?

Simply, when the prospect is ready! More specifically, when the prospect is in the
conviction stage of the mental buying process. A buyer can enter the conviction stage at
any time during the sales presentation. You might ask someone to buy as early as the
approach stage or as late as another day.
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Much of the time, however, the close comes after the presentation. An ability to read
prospect’s buying signals correctly helps a salesperson decide when and how to close a
sale.

Reading Buying Signals

After prospects negotiate each stage of the mental buying process and are ready to buy,
they will often give you a signal. A buying signal refers to anything that prospects say or
do indicating they are ready to buy. Buying signals hint that prospects are in the
conviction stage of the buying process. Several ways prospective buyers may signal that
they are ready to buy include:

� Ask questions – “How much is it?” “What is the earliest time that I can receive
it?” “What are your service and returned goods polices?” At times you may
respond to a buying signal question with another question, as shown in the table
below. This helps determine your prospect’s thoughts and needs. If your question
is answered positively, the prospect is showing a high interest level and you are
nearing the close.

� Ask another person’s opinion – the executive calls someone on the telephone
and says, “Come in here a minute; I have something to ask you.” Or the husband
turns to his wife and says, “What do you think about it?”

� Relaxes and becomes friendly – once the prospect decides to purchase a product,
the pressure of the buying situation is eliminated. A state of visible anxiety changes
to relaxation because your new customer believes that you are a friend.

� Pulls out a purchase order form – If, as you talk, your prospect pulls out an
order form, it is time to move toward the close.

� Carefully examines merchandise – when a prospect carefully scrutinizes your


product or seems to contemplate the purchase, this may be an indirect request of
prompting. Give these indications, attempt a trial close: “What do you think about
…?” If you obtain a positive response to this question, move on to close the sales.

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� Can I get this special price on orders � Would you like to split your
placed now and next month?
shipment?
� How large an order must I place to
receive your best price?
� What size order do you have in
� Do you have model 6244 in stock?
mind?

~ What is your price? ~ In what quantity?


~ What kind of terms do you offer? ~ What kind of terms do you want?
~ When can you make delivery? ~ When do you want delivery?
~ What size of the machine should I ~ What size do you want?
buy?
Examples of Responding to a buying signal questions with a question
5.1.1. Type of Closing the Sales
The close itself can take several forms. Three closing techniques are used when a
salesperson believes a buyer is about ready to make a purchase: (1) trial close, (2)
assumptive close, and (3) urgency close.

1. A trial close involves asking the prospect to make a decision on some aspect of the
purchase: "Would you prefer the blue or gray model?" The trial close is an important
part of the sales presentation. It asks for the prospect’s opinion concerning what you
have just said. The trial close does not ask the person to buy directly. If the prospect
responds favorably to your trial close, then you are in agreement or you have
satisfactorily answered an objection. Thus, the prospect may be ready to buy.

2. An assumptive close entails asking the prospect to make choices concerning delivery,
warranty, or financing terms under the assumption that a sale has been finalized. Many
real estate agentsuse this method of closing. Assume that if the prospects allow you to
fill in the contract they will sign it. Start by asking the easy questions:

ª “How do you want you names to appear on the deed?”


ª “When would you want occupancy?”
ª “Are there any special considerations you want me to note?”
Now proceed with the balance of the form, asking questions as you continue to fill out
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the agreement. When the buyers have accepted all of the information it is a simple
matter to finalize the transaction:

ª Ask the buyers if there are any questions.


ª If not, ask them to approve, authorize, verify, or almost anything except
“sign” the offer to purchase. Asking for a signature is threatening to some
buyers.

If you have followed the foregoing procedures they will probably sign the purchase
agreement without hesitation. They will have had ample time during the filling-in of
the agreement to object to anything troubling them.

3.An urgency close is used to commit the prospect quickly by making reference to the
timelinessof the purchase: "The low interest financi ngends next week “or,” That is the last
model we have in stock." Of course, these statements should be used only if they
accurately reflect the situation; otherwise, such claims would be unethical. When a
prospect is clearly ready to buy, the final close is used and a salesperson asks for the
order.

5.2. Follow-up

The selling process does not end with the closing of a sale; rather, professional selling
requires customer follow-up. One marketing authority equated the follow-up with
courtship and marriage [Levitt Theodore, 1983], by observing, "…the sale merely completes
the courtship. Then the marriage begins. How good the marriage is depends on how well
the relationship is managed." The follow-up stage includes making certain the customer's
purchase has been properly delivered and installed and difficulties experienced with the
use of the item are addressed.

The follow-up step is a relatively newer addition to the steps of selling in which the
salesperson doesnot assume the sale is over with the acceptance of an order. Rather, much
work begins after the saleto make sure the customer is happy with the product/service and
that everything that was promisedis being delivered. Examples that are frequently given
include a thank-you letter to the customer or a follow-up phone call to ensure the customer
is happy.

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The traditional follow-up was typically done with a phone call or letter thanking the
customer forthe sale and determining if the product was meeting expectations. Frequently,
the salesperson woulddrop by to see if any problems were occurring. The key
transformative factor here is increased effectiveness of communication through
technology. Today, email and interactive media platforms have become a dominant method
of follow-up because of its ease of use and timeliness.

The salesperson can literally go back to the office (real or virtual) and send a quick
message that the customer will receive immediately rather than two or three days later.
Although the phone is alsoquick, it is becoming more difficult to actually get through to the
required person. Emails are quickand efficient and also allow the customer to quickly
respond to the salesperson if difficulties arise. In the era of relationship selling, the follow-
up step has gained importance and is also now much quicker and more efficient to
execute.

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