sales prospecting & selling
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PERSONAL
SELLINGAND SALES
MANAGEMENT
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Definition of Personal Selling
Personal selling
1) two-way flow of communication
2) between a buyer and seller
3) a face-to-face or real time encounter
Why are face to face and two-way important?
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Provides a detailed explanationor demonstration of product
Message can be varied to fit the
needs of each prospective customer
Can be directed to specificqualified prospects
Instant feedback
Personal persuasion can be usedA good salesman can getyou to buy ice in winter
Advantages of Personal Selling
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When to Use Personal Selling
Customers are concentrated
There are few customers
Product is technically complex
Product is custom made
Product has a high value
Selling image, not product
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Creating Value Through Salespeople
Relationship Selling
building ties to the customer, based on a
salespersons attention and commitment to
customer needs over time.
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1) Prospecting
2) Pre-approach
3) Approach
4) Presentation
5) Close
6) Follow-Up
Six stages of Personal Selling
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Personal Selling: Prospecting
Prospect- possible customer
Qualified Prospect-customer who has desire,
means and power to decide
Cold Canvassing- seller initiated contact of,potential
customers without advance warning.
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3) Approach-First meeting(Physical impressions highly important-appearance, timeliness, confidence)
2) Pre-approach-Gathering information
(when to call, income level, risk tolerance)
Personal Selling:Pre- Approach & Approach
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Personal Selling:Presentation
A) Stimulus-Response Format (suggestive selling)keep suggesting items until the buyer responds, like the
McDonalds order taker
B) Formula Selling Formatmore formal and planned,
like a telemarketer
Canned Selling Presentation
Memorized, standardized message
conveyed to every prospect.
Works when seller is a novice or
does not know the buyer well
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Personal Selling: Presentation
Need-Satisfaction Format-Let the customer do the talking-
Salesman probes, listens then suggests,
like a financial planner
Adaptive Selling- pro-active but selective
presentation of offerings,
based on pre-approach data
Consultative Sellingre-active presentation
for problem solution
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Personal Selling: Presentation
Handling Objections
Acknowledge and Convert the Objection-
use the objection as a reason to buy (expensive)
Postponehold off answer because next info will convince buyer
(complicated)
Agree and Neutralize
show the objections insignificance (side effects)
Denial
refute objection with clear facts
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Personal Selling: Close
Trial Close-Can I put you down for blue or green?
Assumptive Close-ask about delivery or warranty choices.
Urgency Close-Offer valid for today only.
Final Close-Buyer initiated acceptance of the sale.
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Address concerns with delivery and installation,
so todays customer becomes tomorrows
qualified prospect or referral source
Personal Selling: Follow-Up
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Sales Force Motivation
Compensation
Straight Salary Compensation Plan
Straight Commission Compensation Plan
Combination Compensation Plan
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Sales Force Evaluation
Quantitative Assessmentssales quotaseasy but ignores selling environment
attitude
attention
product knowledge
selling skills
appearance and professionalism
Qualitative Assessmentsbehavioral evaluations
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Personal selling involves the
two-way flow of communication
between a buyer and seller, often in a
face-to-face encounter, designed to
influence a persons or groups
purchase decision.
Personal Selling
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Prospecting and Pre-approach
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Improving Productivity
Through ProspectingAn Experts Viewpoint:Prospecting process that treats the generation of salesleads and qualification of prospects as an ongoing
sales strategy. . . .
Action
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Improving Productivity
Through ProspectingAn Experts Viewpoint:
A comprehensive screening system not only improves the
closing ratio of salespeople and account managers, but alsohas a positive influence on customer satisfaction andretention by better assuring the right match betweencustomer needs an company solutions.
Result
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Why Buyers Wont See
Salespeople1. They may have never heard of the salespersons firm.2. They may have no need; they just bought the product
category.
3. The buyer may have their own deadlines on other issues.
4. Buyers are constantly getting calls from salespeople and
do not have the time to see them all.
5. Gatekeepers in any organization screen their bosses calls
and are often curt and even rude.
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Prospecting
The process of identifying, qualifying, andprioritizing organizations and individuals thathave the need for and potential to purchase
the salespersons market offering of productsand services.
QualifiedProspects
SalesLeads
ScreeningProceduresfor QualifyingLeads
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Prospecting Plans are the
Foundation for EffectiveProspectingSet Goals
Establish daily,weekly andmonthly quotas foracquiring newprospects
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Prospecting Plans are the
Foundation for EffectiveProspectingSet Goals
Establish a regulardaily schedule forconductingprospectingactivities.
Allocate Time
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Prospecting Plans are the
Foundation for EffectiveProspectingSet Goals
Track your resultsfrom using thedifferent prospectingmethods.
Keep Records
Allocate Time
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Prospecting Plans are the
Foundation for Effective
ProspectingSet Goals
Evaluate
What is working foryou? Compareresults and use themethods that workbest for you.
Keep Records
Allocate Time
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Prospecting Plans are the
Foundation for Effective
ProspectingSet Goals
Evaluate
Develop confidence
by knowing yourproducts andbelieving that youoffer the best
solutions.
Keep Records
Allocate Time
Stay Positive
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Popular Prospecting Sources &
Methods
External Sources Referrals
Introductions
Community Contacts(Centers of Influence)
Organizations
Non-competingSalespeople
Visible Accounts
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Popular Prospecting Sources &
Methods
Internal Sources Company Records
Lists and Directories
Advertising Inquiries Telephone Inquiries
Mail Inquiries
Internet or WorldWide Web
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Popular Prospecting Sources &
Methods
Personal Contact
Observation
Cold Canvassing
Trade Shows
Bird Dogs (Spotters)
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Qualified Prospects . . .
Can benefit from the sales offering Have the financial wherewithal to make the purchase Play an important role in the purchase decision process Are eligible to buy based on a fit within the selling
strategy Are reasonably accessible and willing to consider the
sales offering Can be added to the customer base at an acceptable
level of profitability
I f Eff i P i
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Importance of Effective Prospecting
OneCustomer
100Leads
Many Leads
Few QualifiedProspects
Many QualifiedProspects
Few Customers
Suppose it takes 10leads to generateone qualifiedprospect
And suppose it
takes 10 qualifiedprospects togenerate onecustomer
It will take100 leadsto generateone customer
I t f Eff ti P ti
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Importance of Effective Prospecting
OneCustomer
50Leads
The better the lead generation method, thehigher the proportion of qualified leads.
The more accurate the qualifying process, thehigher the proportion of customers perqualified lead.
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Gathering Precall Information:
The Prospect
The prospects name and title
Correct spelling and pronounciationcan be gathered by asking the
receptionist or secretary orgatekeeper to verify information.
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Gathering Precall Information:
The Prospect
Is this prospect willing to takerisks? Are they confident with their
decision making?
May have to ask the prospect
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Gathering Precall Information:
The Prospect
Observe club or organizational
honors displayed in the office.
Is the buyer involved in theircommunity? Do they belong to
clubs or professional organizations?
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Gathering Precall Information:
The Prospect
Does the prospect have hobbiesor interests they are proud of?
Observation of office.
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Gathering Precall Information:
The Prospect
What is the prospects personality
type? Easy going? All business?
Observation and experience with buyer.
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Gathering Precall Information:
The Prospect
Where did this prospect grow up?Where were they educated?
Look for diplomas. Ask.
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Gathering Precall Information:
The Prospects Organization
What type of business are wedealing with?
Can be gathered from a directory
and company web site.
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Gathering Precall Information:
The Prospects Organization
To what market does the company sell?Who are its primary competitors?
What does the company make and sell?
Annual reports and company web site.
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Gathering Precall Information:
The Prospects Organization
Salesperson may have to ask for this
information.
Who and how many vendors does theprospect presently buy from?How much and how long have they been
purchasing from their supplier(s)?What challenges is the organizationfacing?
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