Chapter 2

Personal Selling:
Preparation and Process

SDM-Ch.2 1
 Psychology in Selling

Stimulus Buyers decision Response

(Sales Presentation) making process (buy or no buy)

If a sales person makes a presentation, the

prospect may or may not buy
The above buyer behaviour model does not tell
us the reasons of buying or not buying
To understand the psychological aspects of
selling or buying, salespeople should study
consumer or buyer behaviour, including buying
process and situations

SDM-Ch.2 2
Buying Process of Consumers and Business Buyers
Five stage model for household
customers
1. Problem / need recognition
2. Information search / collection
3. Evaluate alternatives
4. Purchase decision
5. Post purchase behaviour
SDM-Ch.2
Eight stage model for business
buyers
1. Problem / need recognition
2. Characteristics and quantity
determination
3. Specification development
4. Supplier search and qualification
5. Obtain and analyse supplier
proposals
6. Evaluation and selection of
suppliers
7. Selection of purchase order routine
8. Performance feedback and post-
purchase evaluation
3
 Buying Situations Faced By

Household customers Business Buyers

Routine decision-making New task / New purchase

Limited decision-making Modified rebuy / change in

supplier
Extensive decision-making Straight rebuy / Repeat purchase

Buying process and situations differ for household

consumers and business buyers.
Consumers / Buyers may skip or reverse some stages in
buying process. E.G. A consumer buying toothpaste

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

Major reasons for giving above information / knowledge

through training programmes to salespeople are:
increase their self-confidence
Meet customers expectations
Increase sales
Overcome competition

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

Follow-up & Trail close / Overcoming

Service Closing the sale Objections

The sequence of above steps may change to meet the

sales situation in hand.
Some of the above steps may not be applicable for selling
to the trade
We now discuss application of above steps to industrial
selling
SDM-Ch.2 6
 Prospecting
It is identifying or finding prospects i.e. prospective or
potential customers.
Lead Prospect

Methods of prospecting or sales lead generation are:

(1) referrals from existing customers,
(2)companys Internal sources (website, ads., tradeshow,
teleprospecting),
(3) external sources (suppliers, intermediaries, trade associations),
(4) salespersons networking,
(5) industrial directories,
(6) cold canvassing,
(7) standard industrial classification (SIC) system.

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

There are four components:

Understanding the buyers needs
SPIN Selling is an acronym of four different types of sales
questions that can take a disinterested prospect to someone
whos motivated to buy. These questions are:
SITUATION questions
PROBLEM questions
IMPLICATION questions
NEED-PAYOFF questions

Knowing sales presentation methods / strategies

Developing an effective presentation
Using demonstration as a tool for selling

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)

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

Consultative selling method / Problem-solving

approach
Salespeople use cross-functional expertise
Firms adopt team selling approach
It is used by software / consulting firms
SDM-Ch.2 14
 Developing an Effective Presentation
Some of the guidelines are:
Plan the sales call
Adopt presentation to the situation and person
Communicate the benefits of the purchase
Present relevant and limited information at a
time
Use the prospects language
Make the presentation convincing give
evidence
Use technology like multi-media presentation

SDM-Ch.2 15
 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

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
Breaking down the price into
smaller units
Converting to lower priced items
Firing the customer
Postponing
Quantifying differences
Showing returns on investments
Stressing exclusive features and
differences
Talking about ultimate costs
Using comparison
SDM-Ch.2
Strategy
Salespeople take the price of the product and divide it by the number of
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.
Salespeople counter the price objection of a prospect by showing him/her
a lower priced model and comparing it with the higher priced one.
Salespeople call the objections bluff.
Salespeople avoid answering the objections early in the interview and
postpone the price question till the closing of the sale.
The salesperson tries to quantify the differences explicitly as much as
possible.
The salesperson tries to show that the product gives more in return than
the current level of investment.
Salespeople compensate for a higher price by indicating features and
benefits that are absent in competitors products.
Salespeople tactfully talk about the initial cost and the total cost including
installation and servicing costs.
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.
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

Necessary for customer satisfaction

Successful salespeople follow-up in different
ways: For example,
Check order details
Follow through delivery schedule
Visit when the product is delivered
Build long-term relationship
Arrange warranty 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