02. personal selling · aidas theory of selling •during any successful sales presentation, the...
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02. PERSONAL SELLING
•Definition, Meaning, Major Aspects
•Personal-selling Situations (Types of Selling Jobs)
•Buyer-seller Dyads
•Theories Of Selling
•Scientific Selling Process
PERSONAL SELLING - Definition,
Meaning, Major Aspects
•Personal selling is a personal (face-to-face, telephone,
or Internet chat) presentation for the purpose of making
sales and building relationships.
•Three major aspects of personal selling:
Professionalism,
Negotiation and
Relationship Marketing
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Personal-selling Situations (Types of
Selling Jobs)
•The job of a salesperson ranges from order takers to order getters.
•An order taker interacts with customers placing an order. •Order takers include most retail sales workers Cashiers, Counter and rental clerks, Real estate agents, brokers, and appraisers, Retail sales
workers, Services sales representatives etc.
•An order getter engages in creative selling of products and is responsible for the entire ordering and relationship-building process.•Order takers include sales representatives, Sales executives, Financial Advisors, Consultants etc.
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Personal-selling Situations (Types of
Selling Jobs)
•Different sales positions require different amounts and
kinds of service and developmental selling.
•Service selling aims to obtain sales from existing
customers
•Developmental selling aims to convert prospects into
customers.
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Personal-selling Situations (Types of Selling Jobs)
Sales Positions by McMurry and Arnold
GroupA (Service Selling)
1. Inside Order Taker‘ waits on’ customers
2. Delivery Salesperson engages in delivering the product
3. Route or Merchandising Salesperson operates as an order taker but works in the field
4. Missionary Salesperson aims only to build goodwill or to educate users, and is not expected to take order
5. Technical Salesperson emphasizes technical knowledge
GroupB (Developmental Selling)
6. Creative Salesperson of Tangibles aims to convert prospects into customers of tangible goods
7. Creative Salesperson of Intangibles aims to convert prospects into customers of intangible goods
GroupC (Developmental Selling Requiring Unusual Creativity)
8. ‘Political’, ‘Indirect’ or ‘Backdoor’ Salesperson sales are consummated through rendering highly personalized services which have little or no connection with the product
9. Salesperson Engaged in Multiple Sales salesperson must make presentations to several individuals in the customers organisation
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BUYER-SELLER DYADS
•Sociologists use the term ‘dyad’ to describe asituation in which two people interact.
•Salesmanship involves buyer-seller interactions.
•The salesperson and the prospect, interactingwith each other, constitute one example of a‘buyer-seller dyad’.
•The seller seeks to motivate the prospectivebuyer to behave favourably toward the seller.
•Whether or not the buyer reacts as the sellerdesires depends upon the nature of the
interaction.
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A Model of Buyer-Seller Dyadic Relationships
Feedback Feedback
Customer Salesperson
Start Salesperson-Customer
Relationship
Exchange
Personal
Affiliation
Choice of Strategy
Needs and Expectations
Personal
Characteristics
Role Requirements
& Characteristics
Choice of Strategy
Needs and Expectations
Personal
Characteristics
Role Requirements
& Characteristics
Negotiation
Adapt Adapt
Adjustment
Stop
Experience Experience
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THEORIES OF SELLING
• AIDAS Theory of Selling
•‘Right Set of Circumstances’ Theory of Selling
•‘Buying Formula’ Theory of Selling
•‘Behavioural Equation’ Theory
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THEORIES OF SELLING
AIDAS Theory of Selling
•During any successful sales presentation, the
prospect’s mind passes through five successive
mental states.
•The prospect goes through these five stages
consciously, so the sales presentation must lead
the prospect through them in the right sequence if
a sale is to result.
•The salesperson follows the AIDAS formula of
gaining attention, holding interest, arousing
desire, obtaining action and building satisfaction.
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AIDAS Theory of Selling
Securing Attention: The goal is to put the prospect in a receptive state of mind.
Gaining Interest: The goal is to intensify the prospect’s attention so that it evolves into strong interest. Throughout the interest phase, the hope is to search out the selling appeal that is most likely to be effective.
Kindling Desire: The goal is to kindle or stimulate the prospect’s desire to the ready-to-buy point. The salesperson must keep the conversation running along the main line toward the sale. Obstacles need to be identified and ways found to get around them.
Inducing Action: The goal is to induce the prospect to act – that is, to buy. It is up to the salesperson to sense when the time is right. The trial close and other different closing techniques are used to test the prospect’s reactions. The desired action is to make the prospect give consent for the sale, sign on the dotted lines of the order pad, and pay for the good or service that was being showed to him.
Building Satisfaction: The goal is to reassure the customer that the decision was correct. Building satisfaction includes thanking the customer for the order and following up on promises made during the presentation. It also includes building up a long term relation with the prospect.
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THEORIES OF SELLING
‘Right Set of Circumstances’ Theory of Selling
•Also called the ‘situation-response’ theory
•May be summed up by the statement “Everything was
right for that sale”.
•Holds that the particular circumstances prevailing in a
given selling situation cause the prospect to respond in a
predictable way.
•If the salesperson succeeds in securing the attention and
gaining the interest of the prospect, and if he presents the
proper stimuli or appeals, the desired response, that is the
sale, will result.
•The more skilled the salesperson is in handling the set of
circumstances, the more predictable is the response.HT
THEORIES OF SELLING
‘Buying Formula’ Theory of Selling
• This theory emphasizes the buyer side of the buyer-seller dyad.
• Reduced to their simplest elements, the mental processes involved in a purchase are:
need (or problem) → solution → purchase.
need (or problem) → solution → purchase → satisfaction.
The buying formula, therefore, is:
Adequacy
need (or problem) → product/service → purchase → satisfaction/
and/or dissatisfaction
trade name
Pleasant feelings
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THEORIES OF SELLING
‘Behavioural Equation’ TheoryFour essential elements of the learning process included in the
stimulus-response model are:
Drives: Strong internal stimuli that impel the buyer’s response.
Cues: Weak stimuli that determine when the buyer will respond.
Response: What the buyer does.
Reinforcement: Any event that strengthens the buyer’s tendency to make a particular response.
Howard incorporates these four elements into an equation:
B = P x D x K x Vwhere,
B = response or the internal response tendency
P = predisposition, force of habit
D = drive level (amount of motivation)
K = incentive potential (potential satisfaction to the buyer)
V = intensity of all cues
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Scientific Selling Process
1. Prospecting and Qualifying
2. Pre-Approach & Approach
3. Presentation and Demonstration
4. Overcoming Objections
5. Closing
6. Follow-Up and Maintenance
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Scientific Selling Process
Pre-Sale Preparation
The salespersons knowledge universe should, among many
things, include:
Product knowledge: Features, Benefits, Styles, Price etc.
Company knowledge: History, Management, Policies &
Procedures etc.
Competitors’ knowledge: Industry structure, Market
share, Market behaviour etc.
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Scientific Selling Process
1. Prospecting and Qualifying
• Prospecting and qualifying is the process of
identifying potential buyers
• A prospect list or pool, which consists of a group
of names, gathered from various sources
• Identifying prospects is also referred to as lead
generation and prospects are referred to as leads.
• Qualified prospects are also known as potential
or prospective customers.
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Scientific Selling Process
1. Prospecting and Qualifying
Steps in Prospecting
• Formulating prospect definition
• Searching out potential accounts
• Qualifying prospects and determining
probable requirements
• Relating company products to each
prospect’s requirements
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Scientific Selling Process
1. Prospecting and Qualifying
Sources of Prospecting• Friends, Relations and Acquaintances
• Referrals – Endless Chain
• Cold Calling
• Observation
• Non Competing Sales Force
• Tradeshows and Demonstrations
• Lists and Directories
• Direct Mail, Direct response Advts., Sales Letters
• Educational Seminars
• Trade Publications
• Database
• Internet
• Telemarketing
• Prospecting by Non-Sales Employees
• Networking
• Centres of Influence
•Combination Approaches: Organisations, usually, use a combination of all the above methods or sources to get the prospects.
E.g. Prospects may be identified at a trade show and later are subjected to telemarketing or are chosen to receive mailers or sales letters.
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Scientific Selling Process
1. Prospecting and Qualifying
Qualifying the Prospects
Prospect
(Lead)
Qualifying CriteriaExistence of
Need for the product
Ability to pay
Authority to buy
Qualified Prospect
(Potential or
Prospective
Customer)
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Scientific Selling Process
2. Pre-Approach & Approach
Pre-Approach
Pre-Approach is concerned with spelling out pre-sale objectives
and developing a pre-sale presentation plan
Product knowledge: Features, Benefits, Styles, Price etc.
Company knowledge: History, Management, Policies & Procedures etc.
Competitors’ knowledge: Industry structure, Market share, Market
behaviour etc.
Knowledge about prospect: Buyer needs, Buying style, Personal
characteristics etc.
It is necessary to develop a sales strategy by collecting customer data and
combining them with the product attributes as a fit for satisfying the
individual and organisational needs.
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Scientific Selling Process
2. Pre-Approach & Approach
Approach
Approach
Approach for an
Appointment
Approach for
Presentation
•Breaking-the-ice (Putting the
prospect at ease)
•Probing to find out the needs of the
prospect
•Planning and designing the
presentation
Objectives of Approach•Creating a favourable impression
•Arresting the attention of the
prospect
•Creating an interest for the product
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Scientific Selling Process
3. Presentation and Demonstration
If presentation is ‘telling a story’ about a product,
demonstration is ‘showing and telling’.
Components or Stages
• Need Discovery
• Product Selection
• Informing, Persuading and Reminding
• Servicing the Sales
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Scientific Selling Process
3. Presentation and Demonstration
Types of Presentation
Canned presentation
Organised presentation
Tailored presentation
Single Personnel Presentation
Group Sales Presentation
Single Call Presentation
Multiple Calls Presentation
Oral presentation
Written presentationHT
Scientific Selling Process
3. Presentation and Demonstration
Tools for Effective Demonstration
• Product Itself
• Models
• Photographs/Illustrations
• Portfolio
• Reprints
• Graphs/Charts, Test Results
• Laptops and Demonstration Software
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Scientific Selling Process
4. Overcoming Objections
• Handling and overcoming objections is a part of the broader skills of negotiations.
• Psychological resistances (like predetermined ideas, reluctance to giving up something, dislike for making a decision, preference for established brands etc.)
• Logical resistances (like objections related to price, delivery schedule, certain product or company characteristics etc.).
• Obstacles and ObjectionsObstacles are real or apparent reasons that the prospect has for not buying. Obstacles can be real or imaginary
Objections can be sincere or insincere
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Scientific Selling Process
4. Overcoming Objections
Steps or mechanism for handling objections
• Smile
• Agree
• Turn the excuse into a reason to buy/
Handle the Objection
• Show more Value
• Close Differently
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Scientific Selling Process
4. Overcoming Objections
Some Common ExcusesYes… But: It’s a fantastic idea but it will not work here. We would like to buy but not now.
Blaming: It is not my responsibility to make a decision. I don’t mind buying, but my wife won’t
like it.
Denial: I don’t need this new product. There is no reason for changing now.
Alibi: I don’t have the money to buy.I don’t have the authority.
Reframing reality: Our purchasing system is not unfair, but we are limiting our number of
suppliers.
Justification: We do have a need for the product but presently we are busy with our internal
reorganisation.
I’ve no choice: I tried my best but I have to go along with the majority. Based on the offer
from your competitor, I have to decide in their favour.
Helplessness: It is out of my hands, I can’t do anything now. If only I could convince my
spouse.
Minimizing: I don’t see anything great in this. There is little value in spending money on this.
Derogation: You don’t enjoy a good reputation in this area. Nobody will be around when it
comes to providing service. HT
Scientific Selling Process4. Overcoming Objections
Common Methods of Handling Excuses
Superior feature method: Salesperson accepts the objection and persuades through providing
additional advantages of his product, which may compensate the objection raised.
Yes… but method: Salesperson agrees with the objection at the beginning and then slowly
removes it from the customer’s mind by tactful handling of arguments.
Reverse English method: Salesperson changes customer’s objection into the basis of buying.
Indirect denial method: Salesperson denies the objection cleverly but indirectly by giving
affirmative answers to the objection.
Pass out method: Salesperson does not pay any attention to the customer’s objection and
expresses neutral opinion.
Comparison method: Salesperson demonstrates similar products of different producers and
removes the objection by comparing the benefits of his products with those of others.
Direct denial method: Salesperson rejects the customer’s objection outright.
Another angle method: Salesperson advices the customer to look from another angle, which is
positive.
Narrative method: Salesperson uses a story to remove customer objection.
Testimonial method: Salesperson presents the sales message by referring to celebrities and
persons of importance as users of the product.
Question method/ Why method: Salesperson asks questions, one after the other, to the
customer against his objection and tries to get suitable answers to that objection from the
customer himself. HT
Scientific Selling Process
5. Closing
• Closing is referred to as the task of asking for the order.
Methods for Closing
• Trial Close
• Summary-of-Benefits Close
• Assumption Close
• Special Concession Close
• Multiple Options Close
• Direct Appeal Close
• Combination Closes
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Scientific Selling Process
6. Follow-Up and Maintenance
Steps of Follow-Up and Maintenance• Thank the Customer for the order.
• Congratulate him over his decision. The customer should be left
with the impression that the act of buying was his decision and
that the salesperson merely helped in the deciding process.
• Summarize the Deal. Write down in clear terms the salient
features of the deal. Mention what he is getting against what he
is paying. Highlight the features and the benefits.
• Reinforce the Deal. Equip the customer with sufficient literature
and materials to fall back upon once the salesperson leaves his
premises.
• Follow-Up on promises made during the presentation.
• Maintain a good relationship with the prospect. Customer
satisfaction also includes building up a long term relation with
the prospect.
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Scientific Selling Process
6. Follow-Up and Maintenance
Customer Service Methods
• Suggestion Selling
• Cross-Selling
• Follow Through
• Follow Ups
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