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Buying Decision Process

Problem or Need Recognition
Information Search
Evaluation of Alternatives
Purchase Decision
Post Buyer Behaviour
The buying is either

- Routine Decision Making

- Limited Decision Making
- Extensive Decision Making

A definition of personal
selling
The process of persuasion leading to a
continuing trade arrangement, initiated and
perpetuated at either a personal or
impersonal level but commonly confined to
oral representation supported by visual aids
(Institute of Marketing).

Selling and the

promotional
Personal selling is one mix
element of the

promotional mix.
In business to consumer markets (B2C)
personal selling and advertising are the main
elements of the mix.
Personal selling becomes more important
when
The product is more complex
The product is more expensive
The product is bought infrequently
The customers is another business i.e. B2B markets

Types of Communication
Product

Personal Selling

Promotion

Public Relations

Place

Sales Promotion
Advertising

Direct Marketing

Price

Personal selling v
advertising

% of
Promotional
Effort

Relative importance of the two main

elements in the promotional mix
Personal
Selling

Advertising

Simple / Inexpensive
Goods

Complex / Expensive
Goods

B2C transactions where

is.
personal
Unimportant
Very important selling
Motor vehicles
Fitted kitchens

Food

Double glazing
Security systems

Clothing

Conservatories

Books

Shopping and

i.e. Convenience

speciality goods

Grocery
CDs/DVDs

goods

The essence of personal

selling
The presentation of products and associated
persuasive communication to potential clients
Involves two way, persuasive communication
The aim is to match customer needs with the
goods/services on offer
Ultimate objective: to make a sale

Selling involves..
Creating positive attitudes towards a product

or service
Motivating people to want to purchase a
product or service
Convincing people that they will be acting
wisely if the buy
Closing/clinching a sale
Reassuring people that they have acted
wisely in making a purchase

The objectives of personal

selling

To increase the volume of sales

To increase sales revenue
To reduce the costs of sales
To increase the number of distribution outlets
To prospect for new customers
To increase sales per customer
To reduce the number of customers with
minimum viable orders

The role of the sales

representative
To gather information about customer wants

To communicate information especially on the

advantages of the product to the customer

To prospect-look for new opportunities. Prospecting
is concerned with locating potential customers
To display and demonstrate the product
To advise customers
To advise on stock levels
To progress orders
To build goodwill
To deal with complaints
To close the sale - i.e. to secure a sale
To provide after -sales service
To collect orders from customers
In some cases, to make deliveries

Types of salespeople
Order takers - primary responsibility to respond

to customer orders
Customer service providers - provide personal
assistance to existing customers
Missionaries - primary task is to increase
business with information and advice
New business salespeople - aim to win new
business
Organisation sellers - build up and maintain
relationships with major customers

Personal selling skills

Interpersonal qualities
Adaptability
Self motivation
Problem solving capabilities
Product knowledge
Customer knowledge
Presentation skills

Sales reps require

information
on
The product
Customers
Territory
Techniques of selling
Promotional material
His/her own organisation
Targets

Five Ps of personal selling

Preparation- preparation of material for use
Prospecting - locating potential customers
Pre-approach - tailoring material for the

prospect (the potential buyer)

Presentation - delivering the presentation
Post sale support - re-enforcing and
confirming the customers choice

Sales representatives typical tasks

Steps in the sales

process
Prospecting(1)
- locate potential customers.
Pre-approach - gather information on the

product and the prospect (the potential

buyer).
The approach - face to face meeting
to create favourable impression
to verify the facts
to set the stage for the rest of the meeting

Steps in the sales

process
(2)
The presentation:
transmit the promotional message.
describe the product.
highlight the advantages.
cite examples of customer satisfaction.
demonstrate to reinforce the message.

Steps in the sales

process
(3) - this is an opportunity
Handling objections
to present additional points.
Closing - the critical stage in which the
salesperson seeks to gain the buyers
commitment to purchase.
The follow-up: to make sure the buyer is
satisfied.

The Sales Process

Prospecting/ Qualifying
Preapproach/ Planning

Presentation
Handling Objections

Closing the Sale

Follow up

Identifying Needs

Identifying Needs

Approach

Personal selling process

(1)
Prospecting

Identify the potential customers

Making warm contacts rather than cold calling

Leads - prospective customers.
Prospects before a contact, find they with

potential.
Qualified prospects after a contact, find they

with
great potential.

Sources of prospects

Personal selling process

(2)
Preparation
and
It is to look for:
planning
Customers buying criteria and needs

Customer organisations purchasing structures

The application of the product and the

features and benefits required.

Personal selling process

(3)
Initial
contacts

It is to build up mutual rapport, respect and

trust between the buyer and seller before the
formal and serious business discussion.

Two approaches:
Initial phone call for a meeting appointment
Could calling/visiting for a lucky meeting

arrangement

Personal selling process

(4)
-Sales
presentation

It is to show how the product offering and the

customers needs match.

Stimulus response.
Formula selling.
Need satisfaction.

Sales Presentation Methods/Strategies

Firms have developed different methods / styles / strategies
of sales presentation
Stimulus response method / canned approach.
It is a memorised sales talk or a prepared sales
presentation.
The sales person talks without knowing the prospects
needs. E.G. Used by tele-marketing people
Formula method / formulated approach.
It is also based on stimulus response thinking that all
prospects are similar.
The salesperson uses a standard formula AIDA
(attention, interest, desire, and action).
It is used if time is short and prospects are similar.
Shortcomings are: prospects needs are not uncovered
and uses same standard formula for different prospects.

Sales Presentation Methods

contd..
Need satisfaction method
Interactive sales presentation
First
find prospects needs, by asking
questions and listening
Use FAB approach: Features, Advantages,
Benefits
Effective method, as it focuses on customers

Using Demonstration
Sales presentation can be improved by

demonstration
Demonstration is one of the important
selling tools EGs: Test drive of cars;
demonstration of industrial products in use
Benefits of using demonstration for selling
are:
Buyers objections are cleared
Improves the buyers purchasing interest
Helps to find specific benefits of the prospect
The prospect can experience the benefit

Personal selling process

(5)
Handling
typical
Typical objections:
objections

Your: company, product, service, pricing;

You; you are not competitive enough

I cant afford it; I dont need it

Ask the objection back.

Agree and counter.
Boomerang.
Feel, felt, found.
Denial.

Personal selling process

(6)
Types
of
negotiations

Co-operative or win-win - trading concessions

results in a better deal for both parties.

Competitive negotiation - hard bargain

focused on short term gain.

Personal selling process

(7)
Types
of
sales
closure

It has reached the point where the customer

agrees to purchase.

Alternative close.
Assumptive close.
Time pressure close.

Personal selling process (8) Followup and account management The

role of personal contact

Block
I : Basics ofSelling
Sales Management
Personal
and Distribution
Sellinga significant role to play role in coordinating,
Sales Personal
force has
liaisoning and advocating the products utility to the end user.
The end result of any distribution effort is the ready availability
of the product to the customer, in the right quantity and at the
right place.

If the product is not available when it is actually required by

the customer, then the whole business activity and all related
efforts are rendered useless.

Personal Selling and Product Promotion

The sales force actually stimulates and generates enough
interest in the customer and helps him make the final decision
to buy the product.
Without this effort the whole exercise of advertising and
public
relations would be futile.
2 33
Excel Books
Dr. S L Gupta

Presentation
and
Demonstration
Block I : Basics of Sales Management
A good presentation
is as important as a good product.
Personal Selling
The significance of a good presentation of the product can be gauged
from the fact that many a time an attractively packed presentation is
sufficient to sell the product.
A good presentation can be in the form of attractive packaging and
display, conspicuous placement of the product in the display window,
etc. A good presentation also includes the interior decoration of the
shop and appearance of the article.

Close the Sale ( Get the sales order )

This is the last stage of any sales presentation. The whole exercise
becomes useless if the sale does not take place. Therefore, it is the
most crucial stage for a salesman. The main aim of the close is to
convince the prospect to sign the order form or to place an order
immediately rather than in the future.
2 34

Dr. S L Gupta

Excel Books

Negotiati
on
Salespeople, particularly in business to business selling,

need negotiating skills

When to negotiate?
(a)When the buyer puts certain conditions for buying to
the seller
(b)When agreement between the buyer and the seller is
needed on several factors
(c)When the product is customised
(d)When the final price is to be decided
How to prepare for negotiation?
(a) planning, (b) building relationship,
Styles of negotiation
(a) I win, you lose, (b) Both of us win (or win-win style),
(c) You win, I lose, and (d) Both of us lose

Key
Learnings
For

understanding psychology in selling, study

consumer or buyer behaviour, buying process and
situations
Salespeople are given knowledge of sales and
relevant marketing policies in order to increase their
self-confidence and sales, and meet customers
expectations
Typical steps in the sales process include
prospecting and qualifying, pre-approach, approach,
presentation
and
demonstration,
overcoming
objections, trial close / closing the sale, follow-up
and service
Salespeople should know when to negotiate, how to
prepare for negotiation and which style of
negotiation to use

Changing
Face
of
Personal
Selling
Block I : Basics of Sales Management
1.

Value
Sharing
: The salespeople share the same values
Personal
Selling

as their customers
and perceive the customers needs with
the sole view to serve thembetter.
2.

Relation Building: A value-based relationship helps

the salespeople to
constantly mobilize resources and modify
the end product by catering to the specifics of the buyer. This
culminates in building long-term relationships.
3.

Role Playing: The salespeople, in personal selling, go

far beyond realizing sales volume. They act as consultants to

their prospective customers constantly advising them of new
products.
4.

Changing Approach: personalselling comes in a

package containing the

inputs of the experts from different
areas such as maintenance, installation, trouble shooting,
2 37

Dr. S L Gupta

Excel Books