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Personal Selling: Preparation and Process: SDM-Ch.2 1
Personal Selling: Preparation and Process: SDM-Ch.2 1
Personal Selling: Preparation and Process: SDM-Ch.2 1
Personal Selling:
Preparation and Process
SDM-Ch.2 1
Psychology in Selling
SDM-Ch.2 2
Buying Process of Consumers and Business Buyers
Five stage model for household Eight stage model for business
customers buyers
1. Problem / need recognition 1. Problem / need recognition
2. Characteristics and quantity
determination
3. Specification development
2. Information search / collection 4. Supplier search and qualification
5. Obtain and analyse supplier
proposals
3. Evaluate alternatives 6. Evaluation and selection of
suppliers
4. Purchase decision 7. Selection of purchase order routine
5. Post purchase behaviour 8. Performance feedback and post-
purchase evaluation
SDM-Ch.2 3
Buying Situations Faced By
SDM-Ch.2 4
Knowledge of Sales and Sales-related
Marketing Policies
Sales Knowledge Marketing Policies
Company knowledge Pricing and Payment policies
Product knowledge Product policies
Customer knowledge Distribution policies
Competitor knowledge Promotional policies
SDM-Ch.2 5
The Sales Process
As a part of selling activities, if salespeople follow the steps
or phases shown below, their chances of success are far
better.
Prospecting & Preapproach / Presentation &
Qualifying Approach
Precall planning Demonstration
SDM-Ch.2 7
Qualifying
Companies qualify sales leads by contacting them by mail
or phone to find their interests (or needs) and financial
capacity.
Leads are categorized as:
Hot - salesperson
Warm - telemarketing
Cool
SDM-Ch.2 8
Preapproach
Information gathering about the prospect.
Sources of information: the Internet, industrial
directories, government publications,
intermediaries, etc.
Precall planning
Setting call objectives
Tentative planning of sales strategy: which
products, features and benefits may meet the
customer needs
SDM-Ch.2 9
Approach
Make an appointment to meet the prospect
Make favourable first impression
Select an approach technique:
Introductory
Customer benefit
Product
Question
Praise
The approach takes a few minutes of a call, but
it can make or break a sale
SDM-Ch.2 10
Presentation and Demonstration
SDM-Ch.2 11
Understanding the buyers needs
Firms and consumers buy products / services to satisfy
needs
To understand buyers needs, ask questions and listen
Situational questions
Problem Identification Questions
Problem Impact questions
Solution value questions
Confirmation questions
In business situations, problem identification and impact questions
are important
Eg
Have you experienced any problems on quality and delivery from the
existing supplies?
What impact the quality and delivery problems will have on your costs
and customer satisfaction?
SDM-Ch.2 12
Knowing 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.
Eg 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.
SDM-Ch.2 13
Sales Presentation Methods (Continued)
SDM-Ch.2 15
Using Demonstration
SDM-Ch.2 16
Overcoming Sales Objections / Resistances
Objections take place during presentations / when
the order is asked
Two types of sales objections:
Psychological / hidden
Logical (real or practical)
Methods for handling and overcoming
objections:
(i) For Psychological objections: ask questions.
(ii) For logical objections: (a) ask questions, (b) turn
an objection into a benefit, (c) deny objections
tactfully, (d) third-party certificate, (e)
compensation.
SDM-Ch.2 17
Handling customer objections
Suggested by SMITH
Start with your highest expectations
Avoid conceding first
Be sure the customer understands the value of a
concession
Make concessions in small amounts
Admit mistakes and make corrections willingly
BE prepared to withdraw a concession
Avoid split the difference strategy
Do not advertise willingness to concede
SDM-Ch.2 18
Methods of handling customer
objections
Superior feature method
YesBut method
Reverse English method
Indirect denial method
Pass out method
Comparison method
Direct denial method
Another angle method
Narrative method
Testimonial method
Question or WHY method
SDM-Ch.2 19
Methods of handling price objections
Method Strategy
Breaking down the price into Salespeople take the price of the product and divide it by the number of
smaller units years of use, take into account the appreciation in the market, and
compare the product with those of the competitors to show the same as a
product advantage.
Converting to lower priced items Salespeople counter the price objection of a prospect by showing him/her
a lower priced model and comparing it with the higher priced one.
Firing the customer Salespeople call the objections bluff.
Postponing Salespeople avoid answering the objections early in the interview and
postpone the price question till the closing of the sale.
Quantifying differences The salesperson tries to quantify the differences explicitly as much as
possible.
Showing returns on investments The salesperson tries to show that the product gives more in return than
the current level of investment.
Stressing exclusive features and Salespeople compensate for a higher price by indicating features and
differences benefits that are absent in competitors products.
Talking about ultimate costs Salespeople tactfully talk about the initial cost and the total cost including
installation and servicing costs.
Using comparison Salespeople compare the price of the product with the other competitors
product that have also gone higher or with the discomfort of the cheaper
alternatives.
SDM-Ch.2 20
Trial close and Closing the sale
Trial close checks the attitude or opinion of the
prospect, before closing the sale (or asking for
the order)
If the response to trial close question is
favourable, then the salesperson should close
the sale
Some of the techniques used for closing the
sale are: (a) alternative-choice, (b) minor points,
(c) assumptive, (d) summary-of-benefits, (e) T-
account, (f) special-offer, (g) probability, and (h)
negotiation
SDM-Ch.2 21
Closing Techniques
alternative-choice Which of the 3 models would you prefer
Minor points Which model, when do want delivery, would you want
instalment basis
assumptive Assume customer will buy -Where would you like the
delivery
Summary of Benefits FAB ( features, advantages, Benefits)
SELL Show Features,
Explain advantages
Lead into Benefits
Let Customer Talk
T account Profits and Losses of deal explained
Special Offer A additional benefit given to close
Probability If I call next week what is the probability of decision
SDM-Ch.2 22
Follow-up and Service
SDM-Ch.2 23
Negotiation
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, (c) purpose
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
SDM-Ch.2 24