3/17/2023

Business skills
Sanela Ravlić, PhD, Lecturer
sravlic@bak.hr

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Sales

• "Sales is an interpersonal communication process in which the seller discovers and meets the
needs of the customer in order to achieve mutual long-term benefits for both parties."
(Castelberry, Tanner, 2013)
• The task is to help a potential buyer make the right purchase decision.

Sales today
From 1990s:
 customers are no longer "easily replaceable„
 The goal is to build long-term relationships and retain customers

 The role of the seller:

 Creates value
 New opportunities by connecting the needs of the buyer with the capabilities of the seller
 Mutual information sharing and cooperation

Sales trends today

 Emphasis on relationship (relationship selling)

 Influence of technology (telemarketing, teleconferencing, videoconferencing)
 Increase in productivity
 Higher share of people with diploma in sales jobs
 Higher need for engagement of sellers for information (business intelligence)
 Shorter product life cycle
 More vendors in the service sector
 Sophisticated software in the field of Internet and database usage
 International sales
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Sales as communication
 A process composed of phases
 The length (duration) of the process depends on what we sell - the correlation between
the duration of the sale and the monetary value of the product or service sold
 Search for the benefit of the customer - you need to find what the customer needs
(even if the customer doesn't know it!)a daptation to the customer and his needs
 Solving customer problems in the way that suits the customer best

„Sales must create a win-win relationship”

 Building quality long-term relationships

 Repeat purchases, avoiding one-time transactions (the goal is not just to sell!)

„People don’t get attached to a company, people don’t get attached to products, people
get attached to people.” (Unknown)

Influences on sales process

Sales success factors:
OTHER FACTORS
MARKET
Lack of goods
Company
Poor market analysis
Marketing
Decline in product/service quality
Decline in purchasing power
Wrong sales techniques
Demand reduction
Poor service
Penetration of import substitutes
Wrong distribution channels
Increased competition
Deficiencies in design, packaging ...
Loss of customers

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Direct sales
• Face to face, creative direct communication with one or more customers
• Creating a favorable pre-purchase mood,
• Achieve sales and maintain post-purchase satisfaction and overall atmosphere

Direct sales

Source: https://www.crazydomains.com/learn/examples-of-direct-marketing/

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Direct sales - Direct sales vs. MLM

The direct sales definition is often a little vague nowadays because of the rise (and infamy) of MLMs
(multi-level marketing companies). MLM distributors will often describe their method of sales as
direct sales, and as a result, many people assume they are one and the same. In reality, MLMs are
one of three ways direct sales can occur, so all MLM sales are direct sales, but not all direct sales are
associated with MLMs.

The three types of direct sales are:

1.D2C: Businesses and brands sell directly to their end customer (for example, online purchases
directly from the brand’s website).
2.Single-level sales (or single-level marketing): Sales representatives act as distributors for a
brand or company and earn commission for products sold.
3.Multi-level sales (or multi-level marketing): Single-level sales, but sales representatives and
distributors also earn money from recruiting more distributors (frequently more money than they
make selling products).

Direct sales, when done correctly, generates revenue and build brand loyalty (Direct sales in the
United States jumped from $76.7 billion in 2019 to $123.3 billion in 2021 and is expected to hit
$175 billion by 2023. Source: https://www.statista.com/statistics/1109833/usa-d2c-ecommerce-
sales/)

Direct sales
3 models explaining approach and course of the sales process:

 Traditional approach

 Sales as interpersonal communication

 Conditional approach to personal sale

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1. Traditional approach
1 2 3 4 5 6
1. LOCATION AND SEPARATION OF FUTURE CUSTOMERS - when collecting data on future
customers, the seller must use a database, previous experience and knowledge, and on this
basis to identify the company and potential customers who will be the target segment
2. PREPARATION OF SALES FLOW - the goal is to continue the process of meeting potential
customers
3. SALES PRESENTATION - THE CORE OF THE SALES PROCESS (importance of 1st contact,
questions, answers)
4. PURCHASING GOALS AND RESISTANCE MANAGEMENT - potential buyers feel resistance
(hesitation) to purchase; the seller must be prepared to manage these customer risks
5. CONCLUSION OF SALES - this is the ultimate goal of sales communication in which the
seller expects to accept the product and sign the order
6. SELLER'S AFTER-SALES ACTIVITIES - the seller must respond to customer complaints

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2. Sales as interpersonal communication

 Represents a "two-member" interpersonal interaction between seller and

potential buyer
 If the communicator and the recipient (recipient of the message) are similar
possible in their origin, education, etc. - the communication process will be
more successful

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3. Conditional approach to personal sale

Before, the success of personal selling depended on consumer characteristics.

Today we know that sales is a two-way process of interpersonal communication that will
lead to sales success, and the success of communication between buyer and seller
depends primarily on the communication skills of the seller.

Imperative! the ability to resolve conflicts in all sales conditions

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3. Conditional approach to personal sale

Previously, the success of personal selling depended on consumer characteristics

Today we know that sales is a two-way process of interpersonal communication
that will lead to sales success, and the success of communication between buyer
and seller depends primarily on the communication skills of the seller

Imperative - the ability to resolve conflicts in all sales conditions

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Sales skills

 Professional  Able to balance responsibilities

 Communicative (personal and professional)
 Reliable  Sense of humor
 Compassionate  Culturally sensitive
 Flexible  Team player
 Creative  Good strategic planner and
 Motivated implementer
 Ethical  Determined
 Organized  Intellectually curious
 Honest  Fast and accurate
 Great listener  An effective communicator
 Goal oriented  Shows self-initiative
 Opinionated

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Sales skills

„Persistent and patient in building relationships”

„Good salespeople are created. Through work and

learning by doing”.

Investing in sales skills is not a cost, but

investment that will stimulate sales in the long run,
affect the growth of turnover and profitability of the
company.

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Sales skills
1. Exceptional communication and listening ability (good communication; it is important to know when to
speak and when to listen (speak up to 20% of the time and listen to the rest)
2. Analytical skills (having analytical skills means being able to: see, hear and understand the information
given to you by your potential customer)
3. Organizational skills and preparedness (higher success of the visit and the likelihood of sales,
professionalism, gaining respect and trust of the customer, efficiency and time savings for both parties,
minimizing omissions and errors)
4. Time and discipline management (large retailers manage their time as best they can - to potential
customers, who belong to category A and will probably make a purchase in the next 30 days they will
devote more time than those in category C who probably will not make a purchase in the next year)
5. Discipline (do everything you promised your customers - nothing leaves a worse impression than a promise
that is not fulfilled)
6. Great interest in learning (you must always know everything about your product and its benefits)
7. Passionate belief in the value you provide (most probably will turn into positive purchase decision)

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Source: https://mb.cision.com/Public/2269/9829165/970371a9146ccb6d.pdf

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Source: https://mb.cision.com/Public/2269/9829165/970371a9146ccb6d.pdf

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Sales and loyality

Sales

Next (future) sales

Repeat sales
Initial
sales

Sales duration

Source: Manning, Reece, 2007., p 19.

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Sales - Tasks

 Market analysis and finding new customers

 Contacting and caring for existing customers
 Arranging and preparing a meeting with the customer (preparing a sales presentation)
 Presentation and demonstration of products / services
 Negotiating the price and terms of sale and delivery
 Closing the sale
 After sales service
 Take care of the billing

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Sales process

1. FINDING NEW CUSTOMERS (preparing for a phone call or contact)

 Arranging the list of contacts - determining the status of customers: customer - key
customer - potential customer
 Perhaps the most important activity in the sales process
 Especially in businesses where very valuable products/services are sold, in jobs
where the number of sold products / services is small, (insurance, car industry, real
estate, vessels)
 Critical element of success - a good list of potential customers
 it is necessary to accurately locate potential buyers

How to nudge buyer and how to skyrocket your sales - https://www.youtube.com/watch?v=5LgYlq8gKJU (20.1.2023.)
MAYA - https://youtu.be/6pY7EjqD3QA (10.1.2023.)
S.E.L.L. - www.ted.com/talks/steve_harrison_how_to_sell_without_selling_your_soul/transcript?language=en (10.1.2023.)

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Potential customers

 Recommendations of former and current customers (oral presentation)

 Promotional activities
 Telemarketing and sales letters
 Contact lists and address books
 "Visits without notice" (cold visits)
 Networking
 Create opportunities for business meetings
 Use business social networks/social networks, eg LinkedIn…)

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2. PLANNING AND PREPARATION OF THE SALES VISIT

 Consists of collecting information about the customer (name, position in the company,
attitudes, personal interests, principles); customer organization (general information, way of
doing business, etc.); arranging a meeting (place: must be suitable for a sales meeting, and
the best time is usually 9 - 11:30 and 13:30 - 16h); preparations for the sales presentation
 There must be an awareness of the benefits of the product or service for each customer
 Tips - it is good to record your speech for the call and check how it sounds before making the
call, for self-correction; be professional and confident

3. PREPARATION FOR THE MEETING – STRUCTURE

 What do you expect or want from this meeting? Do you want to make a deal or do you want to
give a presentation to a key person in the organization?
 Be realistic in setting your goals to ensure success.

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4. SALES VISIT - MEETING

 Making a good impression, crucial first 10-12 seconds (influence by appearance, demeanor…).
The first impression is relatively DURABLE - a bad first impression will take a long time to correct
it and it often proves to be accurate.

 We “sell” ourselves and our personality, and then the product (the customer first evaluates us
- whether we are a person to do business with); pay attention to your handshake, correct
pronunciation of the client's name; speech; kindness, manners - verbal and nonverbal
communication); thanking the potential customer in the end of the conversation

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4. SALES VISIT - MEETING

1. Introduction, casual (“small talks”) - social conversations to break the ice and reduce tension (be
pleasant, avoid sensitive topics: politics, religion, sexual orientation,…anything that can create
distance)
2. Conversation/exchange phase (meet the customer) - closed questions are asked at the beginning,
and then open to define the ideal solution for the customer; then re-closed questions for verification
and confirmation - the so-called. summary)
3. Stage in which the solution is sold - sales presentation, demonstration of product performance (if
possible) and evaluation of reactions; explanation of the competitive advantages of the product and
the unique solutions it provides to the customer)
4. Final phase (agreement of what will be done and when)

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4. SALES VISIT – MEETING – TIPS

 In the presentation make a comparison of your solution with the competitive one and
be sure to explain your shortcomings

 The product/service may have disadvantages compared to the competition, but the
TOTAL value of sales (aditional services, image and other strengths of the solution you
provide) should be higher than the total value of the competitor

Value to the consumer is the key to sales

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5. COMPLAINT MANAGEMENT
6. CLOSING THE SALE
7. FURTHER ACTIVITIES AND CUSTOMER NEEDS SERVICE
Database update
Thanking the customer (Thank you for the time he has dedicated to you. Mention his
needs again. Repeat the benefits you have discussed. List what you have promised to do.)
8. BILLING for services or products

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Closing the sale

METHODS AND TECHNIQUES – BALANCE SHEET METHOD (for undecisive customers)

PRO CONS

Integrated solutions Existing solutions

Quicker process of delivery, payment High price

Multiple buyers license

Easy to use

Trainign included in the price

„Hot line” for issues

Trial period 29

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Closing the sale

METHODS AND TECHNIQUES - DIRECT REQUEST

 Directly suggest the outcome of the sale
 The best method for determined customers who value directness
 May be aggressive

METHODS AND TECHNIQUES - SUMMARY OF BENEFITS

 Reminding the customer of the benefits around which he expressed
satisfaction and agreement
 They help the customer to summarize all the points of the presentation and
make a decision
 Especially important in multiple encounters

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Closing the sale

METHODS AND TECHNIQUES - TESTING METHOD

 First we try the direct route

 If there is no success, we ask questions that reveal the reason for the resistance
- the complaint as a stimulus to buy!

 "What if" question - the question is how the customer would decide when the
problem could be eliminated

There not a single method that can be successful if the buyer does not trust the seller

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Post-sales activities

If the customer makes a negative decision:

 "No" vs. "Not now"
 Maintain a positive relationship perspective

If the customer makes a positive decision:

 Compliment his choice
 Thank the customer

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Post-sales activities

POST - SALES ACTIVITIES – SERVICES ( Aftercare Service)

 It is important to continue to nurture a good customer

relationship
 Continue after-sales tracking and service checks, resolving
complaints, seeking recommendations, user training, order
modification ...
 CRM system (Customer Relationship Management)

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Customer Relationship Management

The advantages provided by CRM systems:

 Accelerate the process of transforming potential customers into new customers

 Greater opportunities for adaptation and development of new products because
we are aware of the needs of existing and potential customers and we are
focused on them
 Customers know our products better and better
 Effective collection of customer needs data
 Possibility of losing customers is smaller
 Greater or better personalized service

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Customer Relationship Management

The advantages provided by CRM systems:

 Accelerate the process of transforming potential customers into

new customers
 Greater opportunities for adaptation and development of new
products because we are aware of the needs of existing and
potential customers and we are focused on them
 Customers know our products better and better
 Effective collection of customer needs data
 Possibility of losing customers is smaller
 Greater or better personalized service

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Sales process – practice, practice, practice

Prospecting
 The most common mistake many salesmen make is that they start with telling the client about all
the advantages of the product or service. They think they don’t have anything else to talk about
with their clients except for that. Therefore, they fuss, babble and do basically anything to avoid
awkward silence and make sure the client doesn’t consider them incompetent or useless.
 However, as you may have already understood, this is not the best strategy. The first thing a
perfect salesperson must do is pinpoint the client’s needs (i.e., their pain points). So, the
salesperson just asks leading questions and listens to the client’s answers. Consequently, the more
information you get from the client during such a conversation, the more likely you are to close
the deal.
 During this step, the salesperson should be an active listener (which means responding to what the
client says verbally and non-verbally). What is important, you should avoid asking too many
questions – up to 20 questions in total will do fine.

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Sales process – practice, practice, practice

Preparation
 Now that you have all the information the client gave you before, you will know how to
present your product for this particular person in the most enticing way. Perhaps, you will
need to come up with a legend like this one: “Company X encountered similar issues, then
they reached out to us, and we solved them at the fundamental level”. The most
important part is selecting the arguments that will make your story easy to believe and fall
for.

Approach
 There is a rule of three “+” during contact establishment. In order to make a stranger like
you, you should evoke positive emotions in him or her at least three times. Salesmen
usually achieve this by using non-verbal signs (smiling to the clients and adopting open
body language), giving compliments (although it shouldn’t turn into obvious flattery), and
asking questions that guarantee positive answers. Salesperson’s likable appearance,
confident voice, and sincere (or at least seeming to be so) desire to help the client are also
the keys to establishing the contact. 37

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Sales process – practice, practice, practice

Presentation
 During this stage, you just “press” the pain point that is the most crucial for the
client. He or she will be ready to spend some money and make a deal with you only
to get rid of a truly disturbing pain point. (You already know what it is because the
client already told you about it during the prospecting stage.)
 As for the presentation itself, don’t limit yourself to an aesthetically pleasing
PowerPoint one (although it can be a good idea in some cases). In general, the
presentation is any convenient place where you can show the best of your product.
This is why many deals are closed in an informal setting (for example, in a
restaurant).
 The key point of the presentation is for you to connect the characteristics of your
product or service with the concrete benefits for the client. Use 5-7 such phrases in
the presentation. But remember – if you exceed this number, your speech will be
perceived as too intrusive.
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Sales process – practice, practice, practice

Handling Objections
 During this stage, the salesperson’s task is to address the client’s objections by diminishing all the ‘but’s
and ‘no’s to their minimum.
 Perhaps, you will encounter a situation where your client starts arguing. It happens, and it is a usual
thing. If you are negotiating a serious deal or you are talking to a difficult client, you should brace
yourself for five or six ‘no’s before you finally close the deal.
 The main technique for dealing with this is replying by agreeing. It doesn’t matter what the client tells
you; you have to agree with him or her every time. It is important to understand that you should agree
not with your product/service being low-quality but with the opinion having the right to exist. So,
basically, you communicate to the person: “Yes, you have the right to think so”.
 Imagine your client telling you: “Your steam cookers are low-quality”. In this case, you should start
answering in such a manner: “I agree with you that considering the quality when choosing home
appliances is very important, …” Then, you continue with the advantage of your product.
 In other words, you shouldn’t use arguments like “you are not smart enough to appreciate the quality of
our steam cookers” to deal with an objection. Instead, you should try to softly lead the client to the
main benefits of your product or service that you have demonstrated during the presentation (and
remember – they are related to the client’s pain points). 39

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Sales process – practice, practice, practice

Closing
 During the closing stage, you should nudge the client in the direction of making a purchase.
There are several easy techniques that will help you do this.
 For example, you can say: “So, we have taken a look at this and that. Tell me, what did you
like the most?” (and you just wait for the client to answer). Usually, the client will say
something like “I liked that your steamer has three tiers”. Then you ask: “And what do you
think about our product/service as a whole?” (and you wait for the client’s response again).
 In this case, the client will convince himself or herself that if they like a certain thing about
your product, they like the whole product itself. And this is what you will hear as a result.
 The next thing you should ask is “Do you have any questions left?” and wait again. If there are
some, you answer them; if not, you say: “I am very glad you liked everything. So, the only
thing left to discuss is…” and you start negotiating the documents, delivery, etc. – and this will
lead the client straight to making the purchase.
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Sales process – practice, practice, practice

Follow-Up
 During this stage, you seal the deal fast and with no mistakes to form a good final impression
about you and your presentation in general. Your aim is to make the client leave with the
feeling of a successful deal instead of the feeling of being cheated or pressured into buying
something.

! How to Design the Sales Process for Your Company

 Obviously, the sales process will differ for every company one way or another. Some companies
sell their products right in the store, some companies seal the deal in luxurious restaurants.
Therefore, while following the recommendations described above, keep in mind that you need
to adapt them to your particular situation.

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Networking

 It helps others start a business or expand it, just as others help us

 If we define networking as the process of giving and taking in building relationships,

then it is obvious that there are opportunities for networking everywhere

 It can start by engaging in ordinary conversation (on an airplane or elsewhere, and can
result in networking)

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Networking

RULES OF NETWORKING

1. Networking must be mutual, and is effective only when it is a process of giving and taking
2. Oportunities are limitless (can happen anywhere)

Apart from engaging in conversation, networking can take many forms:

 Inviting people to be your guests at an event
 Establishing relationships with non-profit organizations
 Making and practicing a short presentation of the company

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Networking
 Conferences
Attending or presenting, exposure to a large number of people in a short period of time
Do the following:
Check the competition; Find out the latest trends in your business; Identify new customers;
Identify new partners
 Standard and online seminars
We can hold a classic seminar or online webinar – to present the company and ourselves as
an expert on a topic

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Networking

HOW BIG IS FINANCIAL VALUE OF NETWORKING FOR THE COMPANY?

WHAT OTHER FORMS OF VALUE FOR COMPANY IT CAN CREATE?

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Useful business communication techniques

Elevator pitch

It is a well prepared, concise and very short speech in which we emphasize to

someone the advantages of our company, and we could give it while taking
the elevator

https://www.yesware.com/blog/sales-pitch-examples/ 22.2.2022.

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Elevator pitch

Source: https://piktochart.com/blog/business-pitch/ (1.2.2022.)

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Elevator pitch
 Are we really prepared?

 Content and organization

 Start the preparation by clearly defining who the target audience is; we must convey
the message in 2 minutes or less;

 When we design our speech, there are 3 important steps we need to take: practice,
practice, and practice
 Execution

 ! Human beings react not only to what is said but also to how it is exposed which
makes ourselves an important part of speech (verbal and nonverbal communication)

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Elevator pitch - startup

Introduction - just one sentence where you present yourself, your name, your startup and position at the
company.
Problem & Solution - Briefly explain the problem that your customers are facing and the way you solve this
problem. Try to highlight the benefits of your idea.
Competitors - Underline how your solution can outperform the competition.
Market Opportunity - Mention the market size and explain why now is the best moment to enter the market.
Show that there is a big market opportunity you want to seize.
Business Model - Explain how your startup makes money.
Achievements - Here you need to show the most important milestones you have achieved so far. It can be key
growth metrics, product development, market validation, strategic clients or partnerships.
Your Request - Share with investor the information, which resources your startup needs to achieve next
milestones. Explain those steps to make the request reasonable.

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Elevator pitch - startup

My name is [your name] and I am [your position] at [your startup name] that [what service/product
you provide]. We help [define your customers] to solve [define the problem they experience] by
providing a better [present your solution] that offers [outline your solution key benefits] to accomplish
[define your customer’s goal]. Unlike [name main competitors], we [outline key differentiators]. This is
a [quantify market size ] EURO/USD opportunity in [region or country] alone and now is the best time
for [your goal] because [explain why now is the best time]. We make money by [revenue streams]. We
have already achieved [milestone 1], [milestone 2], [milestone 3]. We currently need [resource 1],
[resource 2], [resource 3] to achieve [milestone 4],[milestone 5]

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PITCH personal brand

 Who are you?

 What do you do?
 Past successes
 Where do you see yourself working and why
 Your interests

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Elevator pitch – personal brand

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Elevator pitch

● https://www.youtube.com/watch?v=uyxfERV5ttY
● https://www.youtube.com/watch?v=PADDUD9LGkE
● https://www.youtube.com/watch?v=Njh3rKoGKBo
● https://www.youtube.com/watch?v=xr1PKaoflLo
● https://www.youtube.com/watch?v=JyyPQmRBn0Q
● https://www.youtube.com/watch?v=sfbkEdokKkk

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Elevator pitch - startup

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