The Selling Process

Dr. Subhasis Sen

Professor
Sri Balaji University Pune
Email: subh.inc@gmail.com
 Sales Strategy versus Sales Process (Gould, 2012)

• FIND those customers who have a NEED;

• ENGAGE with customers who are SEARCHING;
• PROVE the value of our proposition when customers are EVALUATING;
• WIN the business when customers are making a DECISION;
• KEEP the business during any customer REVIEW
 Story-telling – A Sales Approach
• As a Real Estate Buyer – making your customer feel special
• As an Intern in Real Estate Company – Mohak
– Differentiating factors with respect to your competitors
– Sales by Inspection – Show Flat
– Repeated calls
– Amenities
• As a Buyer of Scooty from Suzuki – Mohit, Swapnil
– Need Analysis (FBV)
– Finding for me right vehicle
– Competitive Analysis
– Referrals
• As a Buyer of Mobile Phone – Ankush, Moulik
– Form Fill-up (Ice-Breaking)
– Personal Touch (making your customer feel special)
– Listening to customers
– Latest models of mobile phones
– FBV of mobile phones
 Story-telling – A Sales Approach
• As a Salesperson in a Financial Institution – Arsh, Moulik
– Reading the minds of the customer – Superstitious nature
– Survey Report, Market Research – Demonstration (Infographics)
– Competitive Analysis (Identifying the negative points of a competitor)
• As a Salesman for Crockeries – Swapnil
– Upselling using STAR
Decision Triangle/Pyramid (Refer to the note on
Detailed Call Planning)
 The Sales Strategy Development Process (Zoltners, 2009)

1. Segment customers and prospects

2. Articulate sources of value
3. Craft a sales process that drive sales
 Case: Sensitive Toothpaste Cos. Just Have to Grin & Bear It – Harshjot
The size of the oral care category in India is Rs. 6000 crore. The sensitive toothpaste segment,
which grew at a breakneck pace over 50% until two years ago, seems to have slowed down
considerably and has remained flat so far in FY15 as consumers have opted for multi-benefit
toothpaste brands with lower price tags. Although GlaxoSmithKline’s Sensodyne has still grown
by over 12%, sales of Colgate Sensitive have dropped by 12%. Sensitive toothpaste brands are
almost three times pricier than mass brands on an average. Analysts attribute the dipping sales in
the category to customers are owing to switching to regular toothpastes after trials, opting for
multi-benefit toothpastes, choosing low priced packs like Dabur Red. Despite its low base, market
share of sensitive toothpaste category at 3.9% has remained unchanged. Since it is a problem-
solving segment, people generally use it only when a problem arises & might not continue it as
regular toothpaste. Two years ago, GSK’s Sensodyne had overtaken Colgate Sensitive to become
the top-selling sensitive toothpaste brand in modern retail outlets and pharmacies that account for
most sales in this segment.

Question:

What should Colgate do to regain its top position in the Sensitive Oral Care Segment? – Swapnil
(Multi-benefit, competitive analysis), Harshjot (Under-Positioning) , Pragya (Price Sensitive),
Arpit (Prescription Marketing), Moulik (Confused Positioning), Differentiation Problem in
case of Advertising/Sales Promotion (Pragya), comparative analysis (Swapnil), RTB (Ankush),
Educating the customers (aged) about sensitivity (Sadaf, Sparsh, Ankush), Soft Brush,
Market Expansion (Ankush), creating distinct value proposition for different age groups /
segments (Sadaf)
 Colgate Oral Care Case

• Lack of understanding for customer needs – launching variants – Shubham

• Bases of Segmentation
 The Buying Situations – Howard & Sheth Model

• Extensive Problem-Solving
– Problem or need is new
– Means of solving the Problem is expensive & uncertain
– High degree information search
– Close examination of alternative solutions

• Salesperson’s Role
– They have to create immense goodwill
– Provide information & assessing alternatives from the range of
products in terms of how well their benefits conform to the buyer’s
needs
 The Buying Situations – Howard & Sheth Model

• Limited Problem-Solving
– Consumer has some experience with the product in question & may be
inclined to stay loyal to the brand previously purchased
– A certain amount of information search & evaluation of a few
alternatives occurs as a rudimentary check that the right decision is
being made

• Salesperson’s Role
– Salespersons have to persuade consumers to switch model or brand
within a limited opportunity
 The Buying Situations – Howard & Sheth Model

• Automatic Response
– Companies have built up a large brand franchise will wish to move
their customers to the state of automatic response.

• Salesperson’s Role
– Advertising may be effective in keeping the brand in the forefront of
the consumer’s mind & reinforcing already favourable attitudes
towards the brand.
– Personal Selling to the ultimate consumer may be superfluous.
 Buying Situation

High

Level of
Involvement

Low
Automatic Limited Extensive
 Meaning of Personal Selling

• Personal Selling is a broader concept in which oral

presentation is involved in converting one or more prospective
buyers for the purpose of making sales.

• Personal Selling can be defined as the personal or impersonal

process of assisting or persuading a prospective customer to
buy a commodity or service and to act favourably upon an
idea, that has commercial significance to the seller.
 Features of Personal Selling

• Cordial & Abiding Relationship – Dyadic Interaction

• Transformation of needs into wants
• Knowledge and technical assistance
• Art & Science
• Response
• Selling of an idea or concept
• Continuous process
 Functions of Personal Selling

• Introduction of Products
• Guidance to the Customers
• Creating Demand & maintaining Demand
• Effective Selling at Minimum Cost
• Collecting Information
• Widening the Markets
 Types of Personal Selling

• Sale by Sample – In case of agricultural commodities like

cotton, tobacco, foodgrains etc. & industrial commodities

• Sale by Description

• Sale by Inspection
 Tools & Techniques of Personal Selling

• Face to Face Selling – Amway, Oriflame

• Direct Mail Marketing – Books, Clothing, Industrial Products
• Telemarketing
• Direct Response Television Marketing
• Kiosk Marketing – Hallmark use Kiosk to help customers
create & purchase greeting cards
• Catalogue Marketing
• Online Marketing – Email, exchange views, shop for products
& business information
 Psychology in Selling

Stimulus Buyer’s 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
Process or Steps in Effective Selling

Prospecting & Qualifying

Preapproach (Precall
Planning)
Approach

Presentation & Demonstration

Overcoming Objections

Closing

Follow up & Service

 Planning a Sales Call

SMART – specific, measurable,

attainable, relevant, timed
 SPIN – Selling Process
• Situation, Problem, Implication, Need Payoff
(page 43-46, textbook)
 Prospecting

• Prospecting is the process to identify prospective buyers of the

product
• The prospects are those who have the need or will to buy &
the power to pay
• Prospects may be individual or institutions
• There are different ways to identify prospects
– Centre of Influence Method (Using this approach, the salesmen
obtain the references for prospects from the eminent people of society)
– Personal Observation Method (A Salesman has ample opportunity to
identify prospects on several occasions such as interacting with friends
& acquaintances, attending seminars, social gatherings, functions,
travelling etc.)
– Direct Mail or Telephone Method (A salesman can contact
prospective buyers on the telephone & inform them about the product
range, plus the benefits & price of the products available)
 Prospecting

– Company’s Records (The salesman can refer to the company’s

records & get in touch with several old & new contacts)

– Newspapers (There are several people who advertise their

requirements through newspapers)

– Networking by salespersons (Salespersons become members of

civic/social organizations like Lions Club, Bangalore Club, Rotary
Club, SNS to meet new people who may be prospects or may provide
leads)
 Qualifying
• Qualifying helps the salesperson in selecting the best prospects on whom
to call. The following 3 questions are used for qualifying the prospects:
1. Does the prospect meet with Company’s Policies?
2. Does the product fulfill a Need of the prospect?
3. What is the Current and Future Value of the prospect to the
company?

• In the case of company policy the salesperson should understand the

prospect’s requirements on the following terms of business & the
company’s standards on the same:
– Pricing & Discounts
– Credit as a Sales Tool
– Cash Discounts
– Delivery Needs
– Order Size
– Serving Requirements
 Lead Generation Tactics
• Inbound Marketing (The process of helping customers find your company-
often before they are even looking to make a purchase-and then turning
that early awareness into brand preference, and ultimately, into leads &
revenue) – Hubspot by Abhay, Patanjali, SEM - Swapnil
• Content Marketing (ebook, video, infographic or slide deck)
• Website
• Blog
• Social Media
• Search Engine Optimization
• Outbound Marketing
• PPC (Pay Per Click) Advertising
• Content Syndication
• Direct Mail
• Event Marketing
• Inside Sales
• Email Marketing
• Lead Nurturing & Lead Scoring
• Floating of Tenders
 Types of Prospects after Qualifying

• Hot Prospects – These prospects have good requirements of the

company’s products/services and are financially sound. Such
prospects are handed over to the company’s salespersons to convert
them to the company’s customers.
• Warm Prospects – This group of prospects have medium or average
requirements of the company’s products/services and are financially
sound. These prospects are given to the company’s telemarketing
team for follow-ups.
• Cool Prospects – These prospects have low requirements & their
financial capacity may or may not be good. Such prospects are either
handed over to the company’s intermediaries like
dealers/distributors, or their names are kept in pending list for future
follow-ups.
 Build STAR Quality Rapport - Exercise
• S – Smile at your Customer (A relaxed & smiling face lightens the atmosphere and
makes you much more friendly & approachable)

• T – Tell your Customer something about Yourself (The sooner your new customer know
a little about who you are on a personal level – something about your background, such as
where you were born, where you went to school, or where you live – the sooner they will
be able to relate to you as a human being & not just a salesperson)

• A – Ask Your Customer something about Themselves (Enquire about some aspect of
your customer’s life: their place of birth, family members, favourite holiday destination,
interests and pastimes & so on)

• R – Relate to Your Customer (The real key to being able to build great rapport is to find
something, anything at all, that you have in common with your new customer. It might be
that you share mutual friends or contacts, mutual sporting interests or a mutual love of the
arts)

Paying close attention to your use of appropriate body language (gestures,

posture, facial expressions etc.) & to your use of an appropriate tone of voice,
Role-Play the STAR rapport-building formula with your Batch-mate.
 Pre-Approach

• It is the 2nd step in the selling process

• It emphasizes that the salesman should have prospect’s
personal information
• Based on all this information, the salesperson has the
necessary tools to plan his visit/interview with the prospect &
can give an effective sales presentation
• SIGNIFICANCE
– Concentrates only on the Prospects
– Gain all the possible information about the Prospect
– It does not waste the Prospect’s Time & Energy
– Detailed Call Planning
 Approach

• In this stage the prospect & the salesman come in contact with
each other face-to-face
• Here the salesman has an opportunity to understand & interact
with the prospect in a better way
• Since salesmen are of 2 types, viz., the travelling salesmen &
the counter salesmen, the approach adopted by each of these
salesmen is obviously different
 Approach Adopted by Travelling Salesmen

• Difficult to approach prospect since the prospects are

generally a busy lot
• Prospects may not be interested in buying the product
• The salesman must keep on trying to obtain an interview with
the prospect
• If the prospect happens to be a high ranking executive or a
senior officer
 Approach adopted by Counter Salesman
• Methods of Approaching
– Cashing in on Brand Name or the Company’s
Reputation
– Customer Benefit Approach
– Innovative Product opens the door to the
Salesman
– The Premium Approach
– The Shock Approach
– Interactive Approach

• 12 Strange but Effective Methods of Approach

Different Ways to gain access to Prospect
 Reasons why sales are lost? – 106 points
• Unable to understand competition (denigrating or underestimating the competition) – Parth
• Lack of connection with the customers & incompetent salesmanship– SPIN – Moulik, Mahak
• Poor Marketing Research – Tejaswini
• Lack of Punctuality
• Monopolizing the conversation - Siddharth
• Arguing with the Buyer – Ankit, Siddharth
• Lack of Empathy (customer expectations not fulfilled)– Avik, Shruti
• Being unprofessional and unethical – profiteering
• Inability to think creatively
• Part-time effort
• Inappropriately dressed for the occasion – Moulik, Soumya (informal)
• Using high pressure tactics – timebound offers other than festive offers
• Not articulating properly - Siddharth
• Boasting and Bragging - Siddharth
• Over-pricing & Under-pricing – positioning problem
• Lack of patience
• Behaving immaturely
• Lack of optimism
• Bad reputation
• Inability to maintain eye contact
• Overtired
• Poor memory
• Procrastinating - Siddharth
• Being inflexible – Pursuit of Happiness (Movie)
• Lack of persistence
• Inability to adapt changing situations
• Inability to function under stress – Yoga, Meditation
• Living in a make believe world rather than in reality
• Talking in terms of sell rather than the buyer and not using the YWI formula Y -You the buyer, W - We i.e. the buyer (first)
and me seller (second), I – the seller (last) - USP
Qualities Professional Salespeople
 Presentation and Demonstration

There are four components:

• Understanding the buyer’s needs

• Knowing sales presentation methods / strategies

• Developing an effective presentation

• Using demonstration as a tool for selling

 Understanding the Buyer’s Needs
• Firms and consumers buy products / services to satisfy needs

• To understand buyer’s needs, ask questions and listen

• In business situations, problem identification and impact

questions are important

E.G.

• Have you experienced any problem on quality and delivery

from the existing supplies?
• What impact the quality and delivery problems will have on
your costs and customer satisfaction?
 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 prospect’s 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 (Continued)
• Need – Satisfaction Method
• Interactive sales presentation
• First find prospect’s needs, by asking questions and listening
• Use FAB approach: Features, Advantages, Benefits – Pragya, Moulik –
KANO Method – measuring customer satisfaction
• 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
 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 prospect’s language
• Make the presentation convincing – give evidence
• Use technology like multi-media presentation
 Using Demonstration

• Sales presentation can be improved by demonstration

• Demonstration is one of the important selling tools E.G.:
Test drive of cars; demonstration of industrial products in use
• Benefits of using demonstration for selling are:
• Buyers’ objections are cleared
• Improves the buyer’s purchasing interest
• Helps to find specific benefits of the prospect
• The prospect can experience the benefit
 Dealing with Objections

• Objections are concerns or questions raised by the buyer

• Ford makes the point that customers’ objections are signposts to
what is really on their minds?
• Effective approach for dealing with objections involves two areas:

1. The preparation of convincing answers

2. The development of a range of techniques for

answering objections in a manner which permits the
acceptance of these answers without loss of face on the part
of the buyer
Dealing with Objections
 Agree & Counter – Role Play

• Buyer: The problem with your Tractor is that it costs

more than your competitor

• Salesperson: Yes, the initial cost of the tractor is a

little higher than competitor’s models, but I should
like to show you how, over the lifetime of the
machine, our works out to be far more economical
 The Straight Denial – Role Play

• Buyer: I expect that this upholstery will be difficult to

clean

• Salesperson: No, Mr. Buyer, absolutely not. This

material is made from a newly developed synthetic
fibre which resists stains & allows marks to be
removed simply using soap, water & a clean cloth
 Question the Objection – Role Play

• Buyer: I’m sorry but I don’t like the look of that car

• Salesperson: Could you tell me exactly what it is that you

don’t like the look of?

• Buyer: I don’t like the pattern on the seats?

• Salesperson: Will in fact this model can be supplied in a

number of different upholstery designs. Shall we have a look
at the catalogue to see if there is a pattern to your liking?
 Forestall the Objection

• With this method, the salesperson not only anticipates

an objection & plans its counter, but actually raises
the objection & plans its counter, but actually raises
the objection as part of his or her sales presentation.

Advantages
– The timing of the objection is controlled by the salesperson
– Since it is raised by the salesperson, the buyer is not placed
in a position where, having raised a problem, s/he feels that
it must be defended.
 Turn the Objections into a Trial Close – Role Play

• A Trial close is where a salesperson attempts to conclude the

sale without prejudicing the chances of continuing the selling
process with the buyer should they refuse to commit
themselves. The ability of a salesperson to turn the objection
into a trial close is dependent upon perfect timing &
considerable judgement.
• Under these conditions the salesperson might say the
following:

“If I can satisfy you that the fuel consumption of this car is no
greater than that of the Chevrolet Optra, would you buy it?”
 Hidden Objections

• If the salesperson believes that a buyer is unwilling to reveal

their true objections, s/he should ask such questions as the
following:

– Is there anything so far which you are unsure about?

– Is there anything on your mind?
– What would it take to convince you?
– “I don’t think you’re totally convinced about the better
performance of our product, are you?”
 Play CATCH with every Objection
• C = Clarify it
• A = Agree with the logic behind it
• T = Trial close on it
• C = Counter it
– Drown it (explaining how in their situation the advantages would
by far outweigh the disadvantages)
– Dilute it (explaining how in practice, it would not prove to be
such a serious problem for them)
– Dissolve it (explaining how it would not apply in their particular
case)
• H = Harvest it (the final step is ask the customer whether you have
Exercise:
answered their objection to their complete and total satisfaction)
Make a list of every objection you think a customer could possibly
raise. For each one of your list, prepare a counter-response and then
role-play going through the CATCH objection-handling process with a
colleague or friend.
The level of Buyer’s Purchase Intentions throughout a Sales
Presentation
Closing the Sale
Ask for the Order
• “Shall I reserve you one?”
• “Would you like to buy it?”
• “Do you want it?”
The Concession Close
• “If you are willing to
place an order now, I’m
willing to offer an extra
2 percent discount”
The Alternative Close
• “Would you like the red one
or the blue one?”
• “Would you like it delivered
on Tuesday or Friday?”
Summarise & then ask for
the Order
• “Well, Mr. Varun, we have
agreed that the LXI model
meets your requirements
low noise, high productivity
and driver comfort at a cost
which you can afford. May I
go ahead and place an order
for this model?”
The Objection Close
• “If I can convince you that
this model is the most
economical in its class,
will you buy it?”