Chapter

Personal Selling:
Preparation and Process

SDM-Ch.2 1
 Learning
Objectives
• To understand psychology in selling, buying
decision process and buying situations
• To learn communication skills, sales knowledge,
and sales related marketing policies
• To understand personal selling process
• To learn about negotiation

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 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

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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
4
 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

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 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

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 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
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 Prospecting
• It is identifying or finding prospects i.e. prospective or
potential customers by identifying lead/suspect[ the name
and address of person who could become prospect]
• Methods of prospecting or sales lead generation are:
(1) referrals from existing customers,
• (2) company sources (website, ads., tradeshow, tele-
prospecting),
•(3) external sources (suppliers, intermediaries, trade
associations),
•(4) salespersons’ networking,
•(5) industrial directories,
•(6) cold canvassing –making unannounced calls that may
need the product,
•(7) standard industrial classification (SIC) system.

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 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, Warm, and
Cool
•HOT-Likely to purchase in near future and
are financially sound
•WARM- Want to purchase but non-
committal
•COLD – Likely to take long time to buy are
indifferent to sales efforts
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 Process of Prospecting & Qualifying

[Sales –Funnel] Concept, Start with

leads /probable prospects / Suspects
using methods of Leads
From leads to Qualified
Prospects

Hot Prospects

Custome
rs

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 Pre-approach
• Information gathering about the prospect
depending on type of customer/situation
• Sources of information: the Internet, industrial
directories, government publications,
intermediaries, etc.
• Pre-call planning by planning:
• Whom to see,
• Where to see
• Setting call objectives: Need of the customer
• Tentative planning of sales strategy: which
products, features and benefits may meet the
customer needs for Adaptive Selling 11
SDM-Ch.2
 Approac
h the prospect
• Make an appointment to meet
• Make favorable first impression by appearance, attitude
and Opening line
• Select an approach technique:
• Introductory: By stating his & company name, present
card
• Customer benefit: by statement of how the product is
going to help.
• Product: Demonstrating the new product
• Question: By asking about some related problem.
• Praise: By referring a word of praise to the main person
The approach takes a few minutes of a call, but it can
make or break a sale
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 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
We will examine each of the above points

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 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 problems on quality
and delivery from the existing supplies?
• What impact the quality and delivery problems
will have on your costs and customer satisfaction?

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 SPIN Model
• SITUATIONAL QUESTION: By asking about buyers
current Situation.
• PROBLEM QUESTIONS: To discover problems,
difficulties, dissatisfaction in existing situation
• IMPLICATION QUESTIONS: To ask about the
consequence/impact of buyer problem on its operation. It
Include Questions on BOTCH. B[Bottle neck, back log]
O[ Other people affected]T[ Time lost/wasted]C[ Cost
Associated]H [Hassles created]
• NEED-PAYOFF QUESTIONS: By confirming about the
usefulness of solution uncovered earlier by ICE method,
I[ Identify] C[ Clarify] E [ Expand].

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 Knowing Sales Presentation Methods/Strategies
1. Stimulus response method / canned approach.

Firms have developed different methods / styles / strategies of

sales presentation
• It is a memorized sales talk or a prepared sales
presentation.
• The sales person talks without knowing the prospect’s
needs. E.G. Used by tele-marketing people
• Useful for new sales people to sell low value goods
• Shortcomings: SP does not know about the real need of
the prospect because product features may not be liked
by buyer.

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 2. 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: To find the attention of the buyer by
favorable first impression by formal dress, neatness and
warm & genuine smile. INTEREST: Bringing out the factors
which is interesting to the buyer, DESIRE: to arouse a strong
feeling in the prospect of wanting to have the product, and
ACTION: Closing the sale ).
•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.

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 3. Need – satisfaction method
• Interactive sales presentation
• First find prospect’s needs, by asking questions and
listening
Use FAB approach:
• Features: Facts, information, Characteristics on the
SP’s products,
• Advantages: How these facts gives prospects the
benefits
• Benefits: How it satisfy the need of the prospect.
• Effective method, as it focuses on customers
• Shortcomings: Not suitable for low cost, simple
products

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 4. Consultative selling method / Problem-
solving approach
• These sales people help customer not only
in solving their problem but achieving
strategic goal of the customer. For
Successful Requirements:
• In depth knowledge about the customer
• Key member of customer buying center
• Prepare the proposal then present
• Use of cross functional expertize
• Should Aim at long term relationship.
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 5. Team Selling Method

• Individual members of sales team and the buying center

are from different functional areas and play one or more
roles in the exchange process.
• They discuss strategic issues
• Group Presentation: should contain,
• A. Need Analysis
• B. Introduction on objectives of promotion
• C. Convincing
• D. Specific Benefits
• E. Well Prepared

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 Matching Presentation Methods with Sales Situation

Sales Presentation Method Suitable Sales Situation

Stimulus Response Method Selling time is short, product is simple and

non technical
AIDA/Formula Method Straight rebuy where customer is familiar
with the product
FAB / Need Satisfaction Method Where SP needs to understand the
prospects need first. It is creative selling.
Consultative Selling Method For high cost technical/ value added
services like computer hardware/software
Team Selling Method To create value for key customers as a
consultant by identifying complex
problems and solution in a team work

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 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

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 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 buyer’s purchasing interest
• Helps to find specific benefits of the prospect
• The prospect can experience the benefit

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 Types of Demonstration
• 1. Manufacturers in exhibition for new lunch
• 2. SP takes prospective customer in other
installations
• 3. SP demonstrate it by taking the product to
customer’s premise
• 4. By inviting the prospective to the selling firm’s
factory
• 5. Group of prospective customers invited at a
hotel for demonstration of new product.

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 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: Higher price -conveying benefits
(b) turn an objection into a benefit: Time taking by conveying that it
omits other problems.
(c) deny objections tactfully: past experience from others- now it is not
faulty ,
(d) third-party certificate: For doubt about quality- show certification,
(e) compensation for any valid objection-give extra offers such as
warranty/ after sales service

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 Handling Price, Product/Service Objection
I. Handling Price Objection: When questioned oh high price
1. Use SPIN model
2. Break the price into smallest possible unit.
II. Handling Product/Service Objection: When questioned
on the quality of product/service
1.Demonstrations of the product
2.Show testimonials
3.Trial Use
4.Independent Test
5.Case History
6.Expert opinion

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 Trial close
• 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
favorable, then the salesperson should close the
sale, most of time prospect gives indications.
• 1. Examine the product
• 2. Asks other persons opinion
• 3. Asks questions about delivery, price etc.
• 4. Becomes friendly

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 TECHNIQUES USED FOR CLOSING
• Some of the techniques used for closing the sale are:
(a) Alternative-choice: which model?,
• (b) Minor points- diverting by other questions such as
installments etc.
• (c) Assumptive: Asking his about name , (d) summary-of-
benefits: Repeat SELL techniques[ S-Show features, E-
Explain Adv. L-Lead into benefits, L- Let Prospect talk]
• (e) T-account : Put benefits on Left side and drawbacks
on right side of T table
• (f) Special-offer: Special discount for spot buying
• (g) Probability: Check it by committing an answer if >50%
chance, SP will convert, if < 50% repeat all again,
• (h) Negotiation: Win-Win condition not the other ways.
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 Negotiatio
n
• 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 customized, (d) When the
final price is to be decided
• How to prepare for negotiation?
(a) planning on price and payment terms, any thing extra such as
training can be given, which are non flexible factors, (b) building
relationship by building rapport, trust, (c) purpose of negotiation may
tax, raw material etc. to be clear
• 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

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 Tips for Negotiation
• 1. Observe Verbal & Non verbal communication of the
party
• 2. Don’t argue, Avoid rude & Loud voice
• 3. Be Assertive not Aggressive
• 4. Maintain Eye contact without staring
• 5. Stay Focused on the topic of negotiation
• 6. Don’t blame for tense environment
• 7. Avoid Sarcasm
• 8. SP not to show weakness such as for Target
achieving.
• 9. Don’t make emotional decision.

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 Guidelines for Win-win Negotiation
• Much before negotiation make trust and
confidence environment
• Be polite, humble during negotiation.
• In initial phase focus on identifying and agreeing
to the problem rather than solution
• Then both sides should pool together their
resources
• Both sides to make concessions regularly.
• Defensive postures, legalistic or contractual
approach should be avoided.
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 Tips for recognizing I win you lose style by
prospect
• Buyer starts with tough demand or
unreasonable offer.
• Buyer raises voice or emotional outburst
• Buyer does not reciprocate or stingy to the
concession made by seller
• Buyer ignores time deadline.

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 Guidelines for facing I win you lose style
• Seller should equally take strong position,
presenting a clear, unemotional opposition
to prospects demand.
• Seller must explain why he holds his
position and seek from prospect why he
hold the position.
• Seller should stress the consequences of
a failure to resolve the issue to move from
win-lose to win-win condition.

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 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

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 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
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 Successful Factors in Selling
• 1. Communication Skill:
• Non-verbal Communication: Eye contact,
Posture, Gesture, Facial Expression, Overall
grooming
• Verbal Communication: No vague word,
confusing words, jargons, polite words like
opinion, comfortable etc.
• 2. Listening Skill:
• Acknowledge & encourage others to speak,
maintain eye contact, don’t interrupt, avoid
distraction
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 Characteristics of An effective Salesperson

• 1. Burning Desire
• 2. Cooperativeness
• 3. ICT savvy
• 4. Empathy
• 5. Behavioral Factors : Positive Attitude.
• 6. Discipline

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