2. personal selling

8/3/2019 2. Personal Selling

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What is Personal Selling?

Selling is just one of many marketing

components

Personal selling: Personal communication

Persuasive

Need fulfillment Goods

Services and ideas


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Everybody Sells!

When have you sold?

Who was involved?

What did you sell?

What did you need to consider?


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Where does selling fit in a business

organization?

VP Marketing

Marketing Manager

Marketing Mix

The 4 Ps of Marketing Promotion Strategy

Advertising

Personal selling

Sales promotion Other communication


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Types of Sales Jobs

Selling in Retail

A retail salesperson sells goods or services to

consumers for their personal, non-business use.

Direct Sellers

Face-to-face (or telephone) sales to consumerswho use the products for their personal use.


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Types of Sales Jobs

Selling for a Wholesaler

For resale

For use in producing other goods

For use within an organization

Works for the firm who manufacturers the

productThis is usually one of the most prestigious jobs

to hold

Selling for a Manufacturer


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A Continuum The complexity and difficulty of these seven sales job

categories increase as they move left to right.

Order-Takers

10000Order-Getters

30, 000

SalesClerks

SalesReps TechnicalReps

Busines

sSolutio

ns

Specialists

KeyAccount Reps

TopSale

s

Exec


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A Salespersons Career Path


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Why Choose a Sales Career?

There are a wide variety of sales jobs available

The freedom of being on your own

The opportunity for advancement in a company

The rewards from a sales

career can be substantial


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Rewards

Non-financial

Intrinsic reward of knowing youve skillfully

delivered a sales presentationQuicker path to managing large amounts of

responsibilityDifferent kinds of incentives e.g. trips, giftsFinancial

Higher average than that of other workers at thesame level within the organization

Based upon performance


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What is Relationship Selling?

Non-adversarial

Non-manipulative

Consultative

Partnering

Problem-solving

Build and maintain a long-term relationship


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Customer Relationship Process:

maintain a customer focus

Maintain and grow

the relationship

Analyze

needs

Recommend solution

and

gain commitmentCustomer

Implementtherecommendation


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BuildingRelationships through Selling

The sales process is a sequential series ofactions

Prospecting ObjectionsPre-approach

Approach

Presentation

Trial close

Meet objections

Trial close

Close

Follow-up and service


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Ten Important Steps

1.Prospectinga. Locating

b. Qualifying prospects

2. Preapproach

a. Appointment

b. Objective setting for the call

c. Know your customer

d. Whats customers benefit?

e. Presentation strategies

3. Approacha. Greeting

b. Breaking Ice

c. Pre presentation talk


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Uncovering needs

Relating product benefits to needs

Demonstration

Dramatization

Visuals

Proof`

4. Presentation


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5. Trial close

a. Hows that ?

b. What do you feel ?

c. Your comments please.

6. Objections

a. Solicit questionsb. Any excuse is objection

7. Handling Objections

a. Answer all questions

b. You know better


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8. Trial close -2

Ask opinion again

9. Close

Taking him to buy10. Follow up and After sales service


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What is Retailing?

Individual or organization that sells good or

services to final customers for their personal,

non-business use.

Key: The final customer


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Career Opportunities

Financial rewards are excellent

Straight salary

Commissions

Combination of salary & commission

Non-financial rewards are many Excellent training programs

Rapid assumption of responsibility

Personal growth & development


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Basic Retail Selling Process

The Five Rights of

Retailing

Right Product

Right Price Right Place (location

and distribution)

Right Time

Right Quantity

company salesperson

product

customer

Whats Different About the Business


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What s Different About the Business

Market?

The business market Derived, inelastic and joint demand

Industrial, producer, organizational

Businesses buy for three purposes:

To make other goods and services

To sell to consumer or other users To conduct organizations operations


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Types of Business Purchases

New Task

Straight Rebuy

Modified Rebuy

Please provide a business example for

each!


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Requests for Proposals [RFPs]

What are they?

When are they used?

What is the process?

How do you respond?


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Who Makes the Decisions Around

Here?

Understanding the business buyingprocess

The eight steps are: see text pg 281

Key: Finding and spending time with theright person

Persons with influence over buyingdecision

Purchasing agent

The Purchasing Decision:


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The Purchasing Decision:

Who makes it?

Lets think of a business buying situationwhere there are many people who influencethe buying decision.

The purchase of a company car!

The Salesperson needs to take intoconsideration who will influence thepurchasing decision.

These influencers are:


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Decision makers to include:

Initiator

Deciders

Influences

Buyers

Gatekeepers

Users

What is the influence of each of these?


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Selling Services is Challenging!

Characteristics of Services

Intangibility

Inseparability

Heterogeneity

Perishability and fluctuating demand

Lets try selling a business service!

You are a DJ selling your music service to a wedding

planner. How would you proceed?


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Nonprofit Selling

No profit motive!

Most nonprofit organization sell

services rather than intangibles,

such as:

Cultural: museums, zoos

Religious: temples, mosques

Social cause: civil rights, smoking

Political: political parties, politicians

N fit S lli


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Non-profit Selling

Nonprofit clients Nonprofit contributors

Importance

Impact

Wh t d P f i l S l l d t


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What do Professional Salespeople need to

know.

Sources of Sales Knowledge

Knowledge Builds Relationships

Know Your Customers Know Your Company

Know Your Product

Know Your Resellers

A FABulous Approach to Buyer NeedSatisfaction


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Knowledge Requirements

Advertisement and Sales Promotional Tools

Pricing Your Product

Know Your Competition, Industry, and Economy Personal Computers and Selling

How knowledge of Technology Enhances Sales andCustomer Service

Global Technology Provides Service Others????


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Sources of Sales Knowledge

Sales training

Experience

Literature (trade magazines)

Established Businessdatabases ( and they are???)

Colleagues, Customers

World Wide Web (lets check outsites on text pg 57)

K l d B ild R l i hi


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Knowledge Builds Relationships

Knowledge increases salespersons confidence.

Knowledge increases buyers confidence in

salesperson.

More knowledge, more sales, morerelationships.


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Know Your Customers (Prospects) Company

General Company Information:

Company history, growth and accomplishment

Buying policies and procedures

Warehouse facilities

Mission statement and values

How they plan to use your productTheir wants and needs

Their partners


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Lets think of a your Buying Customer

What information do we need to know aboutthis customer?

Where could we find out this information?

Lets do it now!!!!!


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Know Your Selling Company: The Supplier

General Company Information:

Company history, growth and accomplishment

Selling policies and procedures

Production facilities

Mission statement

Service facilitiesIn-house Research and Development

Other Customers

K th P d t lli


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Know the Product you are selling

Product knowledge may include:

Performance data Any testimonials???

Physical size and characteristics (specifications)

How the product operates

Specific features, advantages, and benefits of theproduct

How well the product is selling in the marketplace

Other information?????


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Know Your Resellers(If it is a product that is being resold?)

Understand the channel of distribution.

Know as much about each channel member as possible,including the preferences of each channel memberscustomers.

Describe a channel that includes a supplier, reselling buyer,and consumer. The buyer, in this case, is selling a productintact to the consumer who is the end user

Please provide an example of the seller, buyer, product andconsumer for this situation.

/


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Industrial Selling / Buying

Understand the channel of distribution. Know as much about each channel member as possible, including

the preferences of each channel members customers.

Describe a channel that includes:

A supplier who sells to a buyer who uses the purchased product toeither make another product or to be used within its ownoperation. What is the difference between this channel and theprevious one?

Please provide an example of the seller, buyer, and product for thissituation. Now, how can we expand this channel in both directions.Lets try now!

Differences between Industrial Selling and


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Differences between Industrial Selling and

Reselling

What are they?

Do you understand the differences?

How are the wants and needs for the product

differentfor the Business Buyers depending

where they are positioned in the channel?

d i i l


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Know your Companys Advertising Plan

Main ingredients of a firms promotional effort.

Types of Advertising Differ:

National advertising

Retail advertising

Direct-mail advertising

Internet advertising

Trade advertising

Know your Companys Sales


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Know your Companys Sales

Promotion Plan

Consumer sales promotion Trade sales promotion

Point-of-purchase (POP) displays

Shelf positioning Shelf facings

Planogram Software

Premiums

Know your Companys product pricing


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Know your Company s product pricing

strategy

Types of Prices

Discounts lower the price

Markup and profit

Unit Cost

Value an ROI

Know Your Competition Industry and


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Know Your Competition, Industry, and

Economy

Understand competitorsproducts, policies, price, andpractices. What is YOUR

competitive advantage Sources:

National Post

Globe and Mail

Canadian Business

ACNielsen

How do Personal Computers


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p

assist your in your Selling?

Uses and Benefits

Growing use as sales management tools

More effective management

Improved customer relations

More efficient account control and servicing

Improved accuracy


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Top 10 PC Applications

Knowledge of Technology Enhances Sales and


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Customer Service

Personal Productivity

Contact management

Calendar management

Automate sales plans, tactics, and tickets

Geographic information systems

Computer-based presentations



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g gy

Customer Service

Communications with Customers andEmployer

Word processing

E-mail

Fax capabilities and support

Customer Order Processing and ServiceSupport

Sales Mobile Offices

Global Technology Provides Service


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Global Technology Provides Service

Increased worldwide interaction anddistribution

Summary


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Summary

Company knowledge includes informationon a firms:

history

products

procedures

development practices

distributionpromotion

pricing

Summary


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Summary

Salesperson should be able to

confidently discuss price, discounts, and

credit policies with customers.

Success in sales requires knowledge ofthe many technologies used to sell and

service customers.

Success requires knowledge of products,competitors.


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ProspectingThe

Lifeblood ofSelling

Main Topics


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Main Topics

The Sales Process Has 10 Steps

Steps Before the Sales Presentation

ProspectingThe Lifeblood of Selling

Prospecting GuidelinesThe Prospect Pool

The Referral Cycle

The Sales Process


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The Sales Process

The selling

process has 10important steps.



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Follow up The Close

Trial close

Meet Objections

Determine Objections

Trial Close Presentation

Approach

Pre-approach

Prospecting

(including gathering leadsand lead qualification intoqualified prospects)


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When????

Does a Leadbecome a Prospect!

Does a Prospectbecome a Customer!

ProspectingThe Lifeblood of


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Selling

Prospect: qualified person

Prospecting: identifies potential

customer

Lead: Suspect vs. Prospect

Qualifying a Prospect (from a lead)?


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Qualifying a Prospect (from a lead)?

The Three Determinants are:

1.

2.

3.

Qualifying A Prospect: The Techniques


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Qualifying A Prospect: The Techniques

Asking the referral for information

Researching the company prospectus

Keeping your industry knowledge up todate

Speaking with non-competing salespeople

Successful Salespeople must prioritize their


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effort, time and resources

Determine prospect close-ability: Motive

Why prospect buys

Means Ability to buy

Opportunity

Salesperson provide the opportunity to buy

Planning a Prospecting Strategy


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Requires a strategy. Is a skill that can be constantly

improved.

Involves evaluating different methods.

Where to Find Prospects


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Sources may be varied or few. Persons selling different services and goods

might not use the same sources.

Prospecting Methods that Work!


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In-class Activity


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y

Your instructor will divide you into groups oftwo or three and assign each group a differentmethod.

Please take 15 minutes to prepare a

presentation of this method that you will use toteach this method to your class.

Provide a realBusiness situationfor which this

method would be effective!

Prospecting Guidelines


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Three criteria:

Customize

High potential customersCall back

Referrals used in most prospecting

methods reputed to be the mosteffective

The Sales Funnel


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Components of the Prospect Pool


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The Referral Cycle


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Obtaining referrals is a continuous processwithout beginning or end.

The Referral Cycle


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y

The secret is to ask correctly during referralcycle:

The preapproach contact phase

The presentation

Product delivery contact phase

Service and follow-up contact phase

Dont mistreat the referral.

2. personal selling

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