Sales And Distribution

Management
UNIT-3
Salesmanship:

Traditionally referred to as a “door to door” profession,

salesmanship refers to the ability of an individual to sell a
product/service to another individual. In the complex and
competitive world that we live in today, the importance of
salesmanship has been consistently increasing. A salesman today,
is one of the key figure in the manufacturing and distribution
world. Accepted as an essential component of the sales and
marketing, the importance of salesmanship ranges from
producers to society to consumers. As the famous saying in
marketing goes “consumer is always right”, it is the salesman who
helps the consumer in being right - by assisting in the decision
making process and selection of products.
What is Salesmanship?
• “Salesmanship is a marketing strategy by which a salesman
can sell his goods or services to a person ”.W. G Carter defined
salesmanship as “an attempt to induce people to buy goods”.
Acting as a bridge between buyers and customers, the main
goal of salesmanship is profit maximization. However,
salesmanship is not merely about selling goods. As described
by W. Major Scot, the job of salesman is also to create
demand “by demonstrating that the need does exist, although
before his visit there was no consciousness of that need”.
• G. Blake added to the above by identifying salesmanship as
“winning the buyer’s confidence for the seller’s house and
goods thereby winning regular and permanent customers”.
• Salesmanship also represents the seller-initiated efforts
offered to prospective customers. These efforts are
complimented with product information and motivate
customers to make favourable buying decisions. A salesman
must possess the ability to interact with customers utilizing
different mediums and methods. In this sense, it may also be
right to describe a salesman as a psychologist with a knack for
marketing. Salesman is nothing but an advisor with one
customer, a friend to some other customer and a store of all
information to others. Donning these multiple hats,
salespersons must therefore be able to adjust their
personalities to suit every type and mood of customer.
Definition:
According to W.G Carter,
“Salesmanship is in attempt to induce people to buy goods.”
According to the National Association of Marketing Teachers of
America, “It is the ability to persuade people to buy goods or
services at a profit to the seller and benefit to the buyer.”
According to Knox,
“Salesmanship is the power or ability to influence people to buy
at a mutual profit, that which we have to sell, but which they
may not have thought of buying until call their attention to it.
Salesmanship is the ability to persuade people to want they
already need.”
According to J.C. Jagasia,
“It is an ability to remove ignorance, doubt, suspicion and
emotional objection concerning the usefulness of a product.”
Salesmanship as an Art
It may be apt to describe salesmanship is an art, as it relates to
selling a product or delivering consumer satisfaction. It is an art
because:
a) Salesmanship requires the necessary skill set to appeal to the
customer.
b) The ability of persuasion possessed by a salesman
encourages the buyer to make the purchase decision.
c) It requires the salesman to possess the art of communication
to structure its interactions with the customer. d) The salesman
must be able to influence the buyer towards the directed
product / service.
Modern Concept of Salesmanship:

In olden days, a salesman takes an order. He shows the goods.

He waits for an order. Then he receives the payment. He never
attempts to guide, or help or persuade the consumers. But the
modern concept of salesmanship is entirely different from the
old concept of salesmanship. Modem concept is creative in
approach. He creates needs and converts them into wants.
Customer satisfaction is the main problem of salesman. Mutual
profit is essential both for the buyer and the seller. Salesman
guides the customer to buy things which satisfy his want.
Salesman motivates the feelings of the customers to act.
Types of Salesman
Depending on the varied roles performed, salesmanship may be
divided into the following categories:

❖Wholesaler’s Salesman

❖Manufacturer’s Salesman

❖Retailer Salesman

❖Specialty Salesman
1. Wholesaler’s Salesman: The wholesaler’s salesman is concerned only
with the wholesaler. The purpose of this type of salesmanship is to
market the product only to the wholesaler. The role includes: taking
orders from wholesalers, guiding wholesalers to offer credit to
retailers, assisting wholesalers in improving their sales, collect bills
and to keep track of important marketing information.

2. Manufacturer’s Salesman The manufacture’s salesman may be sub-

divided into following sub-categories:
a. Missionary Salesperson – These salesperson interact with
wholesalers, retailers and consumers to offer and guide them
regarding the product / service.
b. Technical Salesperson – These salespersons are hired to sell technical
products, such as machines and equipment. These salespersons
possess professional training on the product and are able to guide
and help the customer both before and after sales.
c. Merchandising Salesman – These salespersons not only sell products
but also guide retailers in terms of in-store product display and
arrangement. These type of salesmen are usually found promoting
products, such as, grocery, drugs, apparels, fashion etc.
d. Sale Promotion Salesmen – The main job of this type of salesmen is
to convince customers to buy their products. They provide product
demonstrations, and also offer samples to prospective customers.
Retailer Salesman :Retail salesman works with the final
consumer directly. They can be subdivided into following
categories:
a) Indoor Salesman – Indoor salesman works inside a store.
These are hired by store owners to help shoppers make
buying decisions.
b) Outdoor Salesman – Outdoor salesman work for the
retailer by visiting customers and taking orders. They also
facilitate with lead generation for the retailer. Impressions,
interactions with the customers may facilitate generation of
lead as well as may evoke customers to take decision for
buying the product.
Importance/Significance of
Salesmanship

✓ The flow of goods from the producers to the consumers may not be
possible without the involvement of salespersons. The salespersons
play an important role in the process of sale. Starting from the
conversation with the consumer to effecting a sale they actually act
as an important link between the manufacturer and the consumer.
✓ They ensure the sale of products and so also provide satisfaction to
customers. Thus, it is not only the business houses which benefit
from salesmanship but also the consumers and the society.
1. Benefits to Consumers
• A salesperson acts as a friend and guide to the consumers. By making
conversation with salesperson, the customer gets help in identifying the
product of his need and the price range that suits him. The salesperson
explains to the customers the uses and the operational aspects of a
product.
• By giving the requisite information about the company and the product,
the salesperson provides confidence to the customers to try something
new which might be better or cheaper. The salesperson also provides
the necessary after sales service to the customers.

2. Benefits to the Business

• Salesmanship helps a business in increasing its sales. Identification of
new customers and persuading them to buy can be done effectively
through personal selling. Since the salesperson comes in direct contact
with the customers, understands the needs and preferences of the
customers and thus, can help the businessman in planning for the right
type of products and effecting the necessary improvements therein.
• In case of products of technical nature the role of salesmanship is very
important as the salesperson can personally explain the functioning of
the product, its use and precaution to be taken in its use. This ensures
proper handling of the product, and boosts customer’s confidence in his
choice of the products.
3. Benefits to the Society
Salesmanship facilitates the process of production, distribution
and consumption. Salespersons help in collecting market
information, credit information, delivering goods and collecting
payments. It helps in matching demand with supply because
they know what the consumers want. They also inform the
consumers about the introduction of new products, if any. By
increasing sales, they help in the growth of business.
Theories Of Personal Selling

What is personal
selling?
➢ According to American Marketing Association, “Personal selling is the oral
presentation in a conversation with one or more prospective purchasers for
the purpose of making sale; it is the ability to persuade the people to buy
goods and services at a profit to the seller and benefit to the buyer”.

➢ Philip Kotler defines “Personal selling is a face-to-face interaction with one

or more prospective purchasers for the purpose of making presentations,
answering questions and procuring orders.”
Personal Selling Examples
✓ Personal selling is where businesses use the sales force to sell the
product after meeting the customer face-to-face.

✓ The sellers advertise these products through their skills such as

attitude, appearance, and specialist product knowledge. The
salesperson informs and encourages the customer to buy or at least
try the product.

✓ A unique example of personal selling is found in the department

stores on the perfume and cosmetic counters. A customer can get
advice on how to apply the product, its specialties and can try
different related products, these all are guided by the personal
selling staff present there. Products with high prices, and with
complex features, are often sold using this type of technique.
Examples: Cars and many products that are sold by businesses to
other industrial customers.
Nature of Personal Selling
I. Personal selling fulfils the objectives of (i) selling the product and (ii) developing longterm
relationships with customers.
II. B2B and B2C selling: Personal selling is generally used as major element of promotion mix in
B2B selling situations. Whereas advertising is used as major element in B2C selling situations.
Personal selling may be used as minor element in B2C selling and advertising may be used as
minor element in B2B selling.
III. Art and Science: Personal selling is both art and science. It is considered as an art because
salesperson applies the creative abilities in making final sales presentation before each
customer in a unique way. It is considered as a science because salesperson applies the
principles of consumer behavior and stages of selling process as a basis of sales presentation
to persuade buyers for purchase.
IV. Salespeople may be called as: sales representatives, salespersons, account executives, sales
consultants, sales engineers, field representatives, agents, service representatives, marketing
representatives etc.
V. Offline methods: Salespeople can reach the prospective customers through offline methods
such as face to face meeting or through a telephonic call.
VI. Online methods: connecting with customers through emails, social media and other digital
platforms. It may be comparatively difficult to keep the customer engaged and interested
through online methods.
VII. Selling and Non-Selling activities: Personal selling may include both selling and nonselling
activities. Activities like finding potential customers, contacting them, making presentation,
and taking sales orders from them are selling activities. Activities like maintaining records,
writing reports, attending meetings, training dealers’ salespeople, building relationships with
customers, providing after-sale services etc. are non-selling activities.
Features of Personal Selling
• Personal Form: There is direct and face-to-face
communication between the seller and the buyer, which
develops personal contact between them.
• Development of Relationship: Friendly and personal
relationships are developed between the salesperson and
customers with the help of personal selling. Such relations
help in achieving sales targets.
• Oral Conversation: Oral messages are used in personal selling
to persuade and inform customers about products.
• Narrow Coverage: Selected customers are approached, as it
focuses on target customers. So, it has a narrow coverage.
• Flexibility: Messages can be adjusted by the salesperson as
per the need of the situation, so it is a flexible method of
promotion.
Merits of Personal Selling
• Building customer relationships: You can build long-term relationships
with your customers when you meet with them face-to-face. This is
essential for developing trust and loyalty.

• Dialogue with the customer: Personal selling allows for a two-way

dialogue between the salesperson and the customer. This is the best
way to understand their needs and wants.

• More detailed communication: When you meet with a customer in

person, you can provide them with more detailed information about
your product or service. You can also answer any questions they may
have.

• Better qualified leads: Since personal selling entails a lot of research

that goes into qualifying leads, they are of better quality and result in a
sale more often.

• Flexibility: You can adjust your pitch on the fly to better suit the
customer’s needs.
Drawbacks
• High cost: Personal selling can be costly, as it requires you to
send sales representatives out to meet with customers in-
person.

• More time and effort: Personal selling takes more time and
effort than other forms of advertising because it requires a
one-on-one interaction between the seller and the buyer. The
seller must be able to build a rapport with the buyer and
understand their needs to close the sale.

• Limited reach: Personal selling entails limited reach because it

is a direct form of communication between a salesperson and
a customer. This type of communication makes it difficult to
reach many people, which limits the number of potential
customers that can be reached.
STEPS IN PERSONAL SELLING
Successful personal selling calls for an integrated approached
devised from the experience of the sales personnel. The
approach are figured in following figure-
Personal Selling Process
• 1. Identifying the Prospective Buyer (Prospecting and Qualifying):
• The first stage of personal selling process involves identifying potential
customers. All prospects identified may not turn out to be actual
customers. Hence identifying the right prospect is essential as it
determines the future selling process. Marketers tap different sources to
identify the prospective customers. Marketers search for prospects in
directories, websites and contact through mail and telephone.
• Marketers establish booth at trade shows and exhibitions, get the
names of the prospects from existing customers, cultivate referral
sources such as – dealers, suppliers, sales representatives, executives,
bankers etc. After identifying the prospect the sales person qualifies the
prospects on the basis of their financial ability, needs, taste and
preferences.

2. Pre-Approach:
• The next step to prospecting and qualifying is pre-approach. At this
stage the salesperson needs to decide as to how to approach the
prospective customer. The salesperson may make a personal visit, a
phone call or send a letter, based on the convenience of the prospects.
3. Approach:
At this stage the salesperson should properly approach the prospects. He should
properly greet the buyer and give a good start to the conversation. The
salesperson’s attitude, appearance, way of speaking matters most at this stage.
4. Presentation and Demonstration:
At this stage the salesperson provides detailed information about the product and
benefits of the product. The salesperson narrates the features of the product,
explains the benefit and the worth of the product in terms of money.
5. Overcoming Objections:
After presentation and demonstration, when customers are asked to place order,
they are reluctant to buy and raise objection. Customers give importance to well-
established brands, show apathy, impatience, reluctance to participate in the talk
etc. Customer may raise objection with regard to price, delivery schedule; product
or company characteristics, etc. Salesperson handles such objections skillfully by
clarifying their objections and convinces the customer to make purchase.
6. Closing:
After handling objections and convincing customers to buy the product, the
salesperson requests the customer to place order. The salesperson assists the
buyer to place order.
7. Follow-Up and Maintenance:
Immediately after closing the sale, the salesperson should take some follow up
measures. The sales person assures about delivery at right time, proper installation,
after sales service. This ensures customer satisfaction and repeat purchase.
In case of newly introduced product and product that requires demonstration and
presentation, personal selling is effective.
• Presentation and Demonstration- In the very first stage of Personal
selling, a salesperson represents himself on the behalf of his company
and tells about his product and service for which he is available there
and tries to attract his customer by telling features of his item during
demonstration. This action initiates the curiosity to know more about
the product in customer’s mind.

• Holding Objectives- During this stage a sales person give his demo
article to customer to use it. When customer holds it in his hand and use
the features one by one of that product will be a good shine for
salesperson to move on next step.

• Closing- Now salesperson wants to know about the customer mind

whether he is happy and interested to buy or not. If he need something
else then the salesperson show the another one otherwise he will
negotiate to buy that one and will close the deal.

• Follow-up- This is the final and important step not for personal selling
even for all products i.e. follow-up. We always try to get feedback from
the user to improve our product or service quality and which is
beneficial for both company growth and also for customer’s point of
view.
THEORY OF PERSONAL
SELLING
AIDAS Theory
The proponents of this theory believe that a salesperson should
design his presentation in such a manner which takes care of all
these stages of the process of selling.
• Attention: The salesperson should attract the prospect to his presentation before
he actually goes into the details of the same.

• Interest: Once the salesperson has successfully gained the prospect’s attention,
he/she should maintain interest of the prospect throughout the presentation.

• Desire: The next step in the sales process, as per the AIDAS theory, is to create a
strong desire in the prospect’s mind to purchase his product.

• Action: Once the salesperson has been successful in taking his prospect through
the three stages. It would be interesting for us to understand that even after going
through three stages attention, interest and desire; the prospect may still have
some doubt or some inertia which will stop him for taking the final decision of
actually buying the product. Now it’s important task to salesperson to help his
prospect in taking the final decision.

• Satisfaction: Once the prospect has placed an order, the salesperson ensures that
the prospects carry the impression of having the right decision. He should always
thank the prospect and even go to the extent of saying “I appreciate your choice sir,
you have taken an excellent decision”.

This is how AIDAS theory works to become a successful salesperson.

Right Set of Circumstances
Theory –
“Everything was right for that sale” sums up the second theory
This theory, sometimes called the “situation-response” theory, had its psychological
origin in experiments with animals and holds that the particular circumstances prevailing
in a given selling situation cause the prospect to respond in a predictable way. If the
salesperson succeeds in securing the attention and gaining the interest of the prospect,
and if the salesperson presents the proper stimuli or appeals, the desired response (that
is, the sale) will result.
The set of circumstances, included factors external and internal to the prospect To use a
simplified example, suppose that the salesperson says to the prospect, “Let’s go out for a
cup of coffee”. The salesperson and the remark are external factors. But at least four
factors internal to the prospect affect the response. These are the presence or absence
of desires:
(1) to have a cup of coffee,
(2) to have it now,
(3) to go out, and
(4) to go out with the salesperson.
Proponents of this theory tend to stress external factors and at the expense of internal
factors. They seek selling appeals that evoke desired responses. Sales personnel who try
to apply the theory experience difficulties traceable to internal factors in many selling
situations, but the internal factors are not readily manipulated. This is a seller-oriented
theory: it stresses the importance of the salesperson controlling the situation, does not
handle the problem of influencing factors internal to the project, and fails to assign
appropriate weight to the response side of the situation-response interaction.
Buying Formula Theory –
The buyer’s needs or problems receive major attention, and the
salesperson’s role is to help the buyer to find solutions. This
theory purports to answer the question: What thinking process
goes on in the prospects' mind that causes the decision to buy
or not to buy? The name “buying formula” was given to this
theory by strong.
The theory is based on the fact that there is a need or a
problem for which a solution must be found which would lead
to purchase decision, as shown below:
Whenever an individual feels a need, he is said to be conscious
of a deficiency of satisfaction. The solution will always be a
product or service or both and they may belong to a producer or
seller. The buyer develops interest in buying a solution.
Behaviour Equation Theory
of Selling:
This theory is a sophisticated version of the “right set of
circumstances” and this theory was proposed by Howard, using
a stimulus response model and using large number of findings
from behavioural research. This theory explains buying
behaviour in terms of purchasing decision process, viewed as a
phase of the learning process, four essential elements of
learning processes included in the stimulus response model are
drive, cues, response and reinforcement, which are given below,
in brief:
1. Drive is a strong internal stimuli that impel buyers’ response.
Innate drives stem from psychological needs and learned drives
such as striving for status or social approval.
2. Cues are weak stimuli that determine when the buyer will
respond.
Triggering cues activate the decision process whereas new
triggering cues influence the decision process.
3. Response is what the buyer does.
4. A reinforcement is any event that strengthens the buyers’
tendency to make a particular response.
Howard believed that selling effort and buying action variables
are multiplicative rather than additive.
Therefore, Howard incorporated these four elements into a
behavioural equation that is:
B=P×D×K×V
P = Response or internal response tendency, i.e. the act of
purchasing a brand or a particular supplier.
D = Present drive or motivation level
K = “Incentive potential” that is, the value of product or brand or
its perceived potential value to the buyer.
V = Intensity of all cues: triggering, product or informational.
Qualities of a Good Salesman
1. Physical Qualities
A salesman should be healthy and should possess an attractive
personality. For creating a favorable impression on the customers,
good appearance, posture, sound health, pleasing voice. etc., are
required. As a salesman is required to travel a lot, he should be
physically capable of travelling.
2. Knowledgeable
A salesman should have complete knowledge of the product and its
features, knowledge about the organisation, its philosophy, policies,
motto, customers, competitors, etc.
3. Mental Attributes
A high degree of intelligence and imagination are essential qualities for
a successful salesman. He should be in a position to understand
customers and read their minds quickly. For effective selling, he should
have a creative imagination, keen observation, sharp memory, and
good judgement ability.
4. Vocational Attributes
The salesperson should be highly ambitious and enthusiastic, as
salesmanship is a highly skilled vocation. He should be optimistic and
should have creative ability and an urge for excellence.
5. Courtesy
In order to win the trust of customers, a salesman should be polite,
sympathetic and courteous. If the language of the salesman is polite,
then he can win the buyer’s confidence.
6. Tactfulness
As a salesman has to deal with humans, who differ in aptitudes,
viewpoints, requirements, etc., he must be tactful. He must have the
ability to adjust to the circumstances and needs of the customers.
7. Self-confidence
Self-confidence is an essential quality to be a successful salesman. He
should have firm determination and take every objection or obstacle
as a challenge.
8. Enthusiastic
A salesman should be enthusiastic and should work with zeal. He
should focus on achieving the selling objectives by accepting the
challenge of making a positive sale to the customer.
9. Honesty
The policy of honesty should be practiced by the salesman. He should
not try to win customers through false and misleading representations.
10. Persistent
A salesman should be persistent. He should try to convince the
prospects with persistent efforts. He should not give up on the
customers soon. Regular and willing customers for the company
can be won by the persistent efforts of the salesman.
11. Good Communication Skills
The success of the sales depends upon the communication skills
of the salesman, as selling is a two-way communication process.
The salesman should have a controlled voice and demand over
the language. He should clearly communicate what he wants to
communicate. Moreover, he should not be only a good speaker
but also a good listener.
What is prospecting?
• The initial stage of personal selling process involves identifying
potential customers. All prospects identified may not turn out to be
actual customers. Hence identifying the right prospect is essential as
it determines the future selling process. Marketers tap different
sources to identify the prospective customers. Marketers search for
prospects in directories, websites and contact through mail and
telephone.
• Marketers establish booth at trade shows and exhibitions, get the
names of the prospects from existing customers, cultivate referral
sources such as – dealers, suppliers, sales representatives,
executives, bankers etc. After identifying the prospect the sales
person qualifies the prospects on the basis of their financial ability,
needs, taste and preferences.

“Prospecting is the process of initiating and developing new business

by searching for potential customers, clients, or buyers for your
products or services. The goal is to move these prospects through the
flywheel until they convert to revenue-generating customers.”
Who is a Prospect?
• A prospect is nothing but a qualified lead, who may turn into a
potential customer, as they possess certain predefined
characteristics, i.e. they are ascertained to be ready, able and
willing to buy the product or service.
Sources and Technique of
Prospecting
• Existing customers: As the name itself signifies, these are the present customers
of the company who are satisfied with the company’s product and services.
Hence, it is a lot easier to sell additional items to the existing buyers rather than
approaching new customers.
• Referrals of Satisfied Customers: Otherwise called as endless chain, this method
employs satisfied customers or clients of the company as the source of referrals,
wherein the sales personnel may request their happy and satisfied customers,
the names of the friends, relatives, and acquaintances, who are also willing to
buy the product. And, the sales personnel would reach out to those people and
make sales to them, and try to obtain new referrals.
• Centre of Influence: It is a prospecting technique which uses referrals, wherein
the centre of influence implies a person that possess information about other
persons or can easily influence them. It may include housewives, bankers,
agents, political leaders, etc. Centre of influence assists the salesperson in
finding out valid prospects.
• Spotters: These are sales trainees, who are used by the companies in identifying
prospective customers.
• Cold Call: In this technique, the salesperson reaches the tentative prospect and
introduces himself or herself to them and asks if they need such a product or
service and also provides information about the benefits and quality of the
product.
• Trade Directories: Directories can also be used to search for
prospective customers. Salespersons can make use of directories of
trade associations, professional societies, chamber of commerce,
social organizations, etc. and contact their members.
• Mailing Lists: There are a number of organizations which provide
lists of persons and companies for mailing purposes.
• Trade Shows and Exhibitions: Participating in trade shows and
exhibitions is a unique technique to reach out prospective buyers
while advertising and promoting their product or service, along with
gaining information about the market, competitors, etc.
• Enquiries: Many customers call or visit the company’s outlet to get
some information about the product, and every company maintains
a database of those enquiries, for selling purposes, which also acts
as a good source of prospecting.
Steps in Prospecting
• In simple words, prospecting means to develop new business
opportunities by searching for and qualifying new customers
or buyers for the company’s offerings. The steps involved in
prospecting process are:
• Formulating prospect definition: This means that the
salesperson needs to check if the prospective customer has
the financial capacity, willingness, readiness and authority to
buy. It is a sheer wastage of efforts and time of the
salespersons if they attempt to sell to those individuals, who
are not in need of the product, as well as they can’t afford it,
because they try to sell the product or service to the wrong
person.
• Identification of Prospects: After the prospects are defined,
now the sales personnel gathers information from various
available sources to identify the names of probable prospects
or suspects. It is a challenging task, which involves the
elimination of non-buyers, i.e. suspects from the list.
• Qualifying Prospects: Qualifying prospects means to ascertain
if they are viable prospects or not. Once the information
relating to the tentative prospects are gathered, it is simple to
anticipate the possible requirement of each tentative prospect
for the product offered by the company.
• Relating Company’s Products to Each Prospect’s
Requirements: The prospecting process ends with creating
the strategy to approach the prospect, which is possible only
when the requirements of each prospect are ascertained from
the information obtained.All those points which might be
useful to convince the prospect for the product are selected,
out of the information available, and the presentation of the
salesperson is customized, accordingly.It also provides a clear
understanding of the objections or questions which the
prospect might have about the product or the company
Pre-approach And Post-
approach
PREAPPROACH

✓The pre-approach step includes all the information gathering

activities necessary to learn relevant facts about the prospect .

✓It is an effort to get details regarding the prospect such as his

ability, need, authority, accessibility to buy.

✓it is a closer look of prospects, likes and dislikes, tastes, habits,

financial status, social esteem, material status, family
background etc.
Post-approach
At this stage the salesperson should properly approach the
prospects. He should properly greet the buyer and give a good
start to the conversation. The salesperson’s attitude,
appearance, way of speaking matters most at this stage.