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Buying Decision ProcessProblem or Need RecognitionInformation SearchEvaluation of AlternativesPurchase DecisionPost Buyer Behaviour

The buying is either- Routine Decision Making- Limited Decision Making- Extensive Decision Making

A definition of personal selling“ The process of persuasion leading to a

continuing trade arrangement, initiated and perpetuated at either a personal or impersonal level but commonly confined to oral representation supported by visual aids” (Institute of Marketing).

Selling and the promotional mixPersonal selling is one element of the

promotional mix.In business to consumer markets (B2C)

personal selling and advertising are the main elements of the mix.

Personal selling becomes more important whenThe product is more complexThe product is more expensiveThe product is bought infrequentlyThe customers is another business i.e. B2B markets

Types of Communication

Promotion

Personal Selling Advertising

Public Relations

Product Place Price

Sales Promotion Direct Marketing

Personal selling v advertising % ofPromotionalEffort

Complex / Expensive Goods

Simple / Inexpensive Goods

Relative importance of the two main elements in the promotional mix

PersonalSelling

Advertising

B2C transactions where personal selling is….

Very importantMotor vehiclesFitted kitchensDouble glazingSecurity systemsConservatories Shopping and

speciality goods

UnimportantFoodGrocery Clothing CDs/DVDsBooks i.e. Convenience

goods

The essence of personal sellingThe presentation of products and associated

persuasive communication to potential clientsInvolves two way, persuasive communicationThe aim is to match customer needs with the

goods/services on offerUltimate objective: to make a sale

Selling involves..Creating positive attitudes towards a product

or serviceMotivating people to want to purchase a

product or serviceConvincing people that they will be acting

wisely if the buyClosing/clinching a saleReassuring people that they have acted

wisely in making a purchase

The objectives of personal sellingTo increase the volume of salesTo increase sales revenueTo reduce the costs of salesTo increase the number of distribution

outletsTo prospect for new customersTo increase sales per customerTo reduce the number of customers with

minimum viable orders

The role of the sales representativeTo gather information about customer wantsTo communicate information especially on the

advantages of the product to the customerTo prospect-look for new opportunities.

Prospecting is concerned with locating potential customers

To display and demonstrate the productTo advise customersTo advise on stock levelsTo progress ordersTo build goodwillTo deal with complaintsTo close the sale - i.e. to secure a saleTo provide after -sales serviceTo collect orders from customersIn some cases, to make deliveries

Types of salespeopleOrder takers - primary responsibility to respond

to customer ordersCustomer service providers - provide personal

assistance to existing customersMissionaries - primary task is to increase

business with information and adviceNew business salespeople - aim to win new

businessOrganisation sellers - build up and maintain

relationships with major customers

Personal selling skillsInterpersonal qualitiesAdaptabilitySelf motivationProblem solving capabilitiesProduct knowledgeCustomer knowledgePresentation skills

Sales reps require information on…The productCustomersTerritoryTechniques of sellingPromotional materialHis/her own organisationTargets

Five Ps of personal selling Preparation- preparation of material for useProspecting - locating potential customersPre-approach - tailoring material for the

“prospect” (the potential buyer)Presentation - delivering the presentationPost sale support - re-enforcing and

confirming the customers choice

Sales representatives - typical tasks

Steps in the sales process (1)Prospecting - locate potential customers.Pre-approach - gather information on the

product and the prospect (the potential buyer).

The approach - face to face meetingto create favourable impressionto verify the factsto set the stage for the rest of the meeting

Steps in the sales process (2)The presentation:

transmit the promotional message. describe the product.highlight the advantages.cite examples of customer satisfaction.demonstrate to reinforce the message.

Steps in the sales process (3)Handling objections - this is an opportunity

to present additional points.Closing - the critical stage in which the

salesperson seeks to gain the buyer’s commitment to purchase.

The follow-up: to make sure the buyer is satisfied.

The Sales ProcessProspecting/ Qualifying

Preapproach/ Planning

Presentation

Handling Objections

Closing the Sale

Approach

Follow up

Iden

tifyin

g

Need

s

Iden

tifyin

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Need

s

Personal selling process (1) Prospecting

Identify the potential customers

Making warm contacts rather than cold calling

• Leads - prospective customers.

• Prospects – before a contact, find they with potential.

• Qualified prospects – after a contact, find they with

great potential.

Sources of prospects

Personal selling process (2) Preparation and planning

It is to look for:

• Customer’s buying criteria and needs

• Customer organisation’s purchasing structures

• The application of the product and the features and benefits required.

Personal selling process (3) Initial contacts

It is to build up mutual rapport, respect and trust between the buyer and seller before the formal and serious business discussion.

Two approaches:

• Initial phone call for a meeting appointment

• Could calling/visiting for a lucky meeting arrangement

Personal selling process (4) -Sales presentation

It is to show how the product offering and the customer’s needs match.

• Stimulus response.

• Formula selling.

• Need satisfaction.

Sales Presentation Methods/StrategiesFirms 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 contd..

Need – satisfaction method• Interactive sales presentation• First find prospect’s needs, by asking

questions and listening• Use FAB approach: Features, Advantages,

Benefits• Effective method, as it focuses on customers

Using DemonstrationSales presentation can be improved by

demonstrationDemonstration 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

Personal selling process (5) Handling typical objections Typical objections: Your: company, product, service,

pricing; You; you are not competitive

enough I can’t afford it; I don’t need it

• Ask the objection back.

• Agree and counter.

• Boomerang.

• Feel, felt, found.

• Denial.

Personal selling process (6) Types of negotiations

• Co-operative or win-win - trading concessions results in a better deal for both parties.

• Competitive negotiation - hard bargain focused on short term gain.

Personal selling process (7) Types of sales closure

It has reached the point where the customer agrees to purchase.

• Alternative close.

• Assumptive close.

• Time pressure close.

Personal selling process (8) Follow-up and account management The role of personal

contact

Excel Books2– 33

Block I : Basics of Sales Management

Personal Selling

Dr. S L Gupta

•Personal Selling and Distribution• Sales force has a significant role to play role in coordinating, liaisoning and advocating the product’s utility to the end user. The end result of any distribution effort is the ready availability of the product to the customer, in the right quantity and at the right place.

•If the product is not available when it is actually required by the customer, then the whole business activity and all related efforts are rendered useless.

Personal Selling and Product Promotion•The sales force actually stimulates and generates enough interest in the customer and helps him make the final decision to buy the product.

• Without this effort the whole exercise of advertising and public relations would be futile.

• Advertising and public relations actually support the efforts of the sales force. And thus personal selling promotes a product.

Excel Books2– 34

Block I : Basics of Sales Management

Personal Selling

Dr. S L Gupta

Presentation and Demonstration

•A good presentation is as important as a good product.

•The significance of a good presentation of the product can be gauged

from the fact that many a time an attractively packed presentation is

sufficient to sell the product.

•A good presentation can be in the form of attractive packaging and

display, conspicuous placement of the product in the display window,

etc. A good presentation also includes the interior decoration of the

shop and appearance of the article.

Close the Sale ( Get the sales order )

This is the last stage of any sales presentation. The whole exercise

becomes useless if the sale does not take place. Therefore, it is the

most crucial stage for a salesman. The main aim of the close is to

convince the prospect to sign the order form or to place an order

immediately rather than in the future.

NegotiationSalespeople, particularly in business to business

selling, need negotiating skillsWhen 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 customised(d)When the final price is to be decidedHow to prepare for negotiation?

(a) planning, (b) building relationship, 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

Key LearningsFor 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

Excel Books2– 37

Block I : Basics of Sales Management

Personal Selling

Dr. S L Gupta

Changing Face of Personal Selling

1. Value Sharing: The salespeople share the same values

as their customers and perceive the customer’s needs with

the sole view to serve them better.

2. Relation Building: A value-based relationship helps

the salespeople to constantly mobilize resources and modify

the end product by catering to the specifics of the buyer. This

culminates in building long-term relationships.

3. Role Playing: The salespeople, in personal selling, go

far beyond realizing sales volume. They act as consultants to

their prospective customers constantly advising them of

new products.

4. Changing Approach: personal selling comes in a

package containing the inputs of the experts from

different areas such as maintenance, installation, trouble

shooting, delivery staff, sales personnel, etc.