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Chapter 02

Principles of Personal Selling


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Selling is only the tip of the icebergSelling is only the tip of the iceberg

There will always be need for

some selling. But the aim of marketing is

to make selling superfluous. The aim of

marketing is to know and understand the

customer so well that the product or

service fits him and sells itself. Ideally,

marketing should result in a customerwho is ready to buy. All that should be

needed is to make the product or service

available.

Peter Drucker


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Principles of Personal SellingPrinciples of Personal Selling

Personal selling is an ancient art that has

spawned many principles

Sales professionalism

Negotiation

Relationship marketing


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Sales ProfessionalismSales Professionalism

All sales-training approaches try to convert a salesperson from

a passive order taker into an active order getter

Order takers :

That customers know their own needs

Resent attempts to influence them

Prefer courteous and self-effacing salespersons

Two basic become a order getters :

Sales-oriented approach

Stresses high pressure techniques

Customer-oriented approach

Stresses customer problem solving

No approach works best in all circumstances


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Major Steps in Effective SellingMajor Steps in Effective Selling

Prospecting

and Qualifying

Pre approach

Approach

Presentation

and Demonstration

Overcoming

objections

Closing

Follow up

and Maintenance


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Prospecting and QualifyingProspecting and Qualifying

The first step in selling is to identify and qualify prospects.

Companies can generate leads by :

Examining data sources (newspapers, directories, CD-ROMs,

Web sites) Exhibiting at trade shows to encourage drop-bys

Inviting customers to suggest the names of prospects

Cultivating referral sources (suppliers, dealers, and bankers)

Contacting organizations and association Engaging in speaking and writing activities that will draw attention

Telecommunications (phone, mail, Internet)

Dropping in unannounced (cold canvassing)


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Pre approachPre approach

The sales person needs to learn : Prospect company

Needs

Involved in the purchase decision

Buyers

Personal characteristics Buying styles

The sales person should set call objectives :

To qualify the prospect

Gather information

Make an immediate sale

The best approach

Personal visit

Phone call or letter

Best timing

Finally, the salesperson should plan an overall sales strategy for the accountFinally, the salesperson should plan an overall sales strategy for the account


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ApproachApproach

The salesperson decides how to get the relationship off to a

good start

The salesperson might consider :

Wearing clothes similar to what the buyers typically wear Show courtesy and attention to the buyer

Avoid distracting mannerisms

When meeting with the prospect :

Open with a positive statement

Concentrate on understanding the buyers needs (questioning and

active listening)


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Presentation and DemonstrationPresentation and Demonstration

Tells the product story to the buyer

Following the AIDA formula :

Gaining attention

Holding interest

Arousing desire Obtaining action

To presentation use FABV :

Features : physical characteristics of market offering

Advantages : why the features provide an advantage to customer

Benefits : the economic, technical, service, and social benefits

delivered by the offering

Value approach : the summative worth (monetary term) of the

offering


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Spend too much on product features ( a product orientation) than the

offerings benefits and value ( a customer orientation)

3 different style of sales presentation :

Canned approach (oldest presentation)

Formulated approach

Need-satisfaction approach


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Canned approach

Memorized sales talk covering the main points

Based on stimulus-response thinking

The buyer is passive

Can be moved to purchase by the use of the right stimulus (picture, word,term, and actions)

Formulated approach

Based on stimulus-response thinking

Identifies the buyers needs and buying style

Need-satisfaction approach

Search the customers real needs (encouraging)

Use role of a knowledgeable business consultant


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Overcoming ObjectionsOvercoming Objections

Customers almost always pose objections during the

presentation or when asked for the order

To handle these objections :

maintains a positive approach

asks the buyer to clarify the objection

asks questions that lead the buyer to answer his or her own objection

denies the validity of the objection

turns the objection into a reason for buying


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ClosingClosing

Salespersons need to know how to recognize closing sign from the

buyer

Physical actions

Statements or comments

Questions Closing techniques

Ask for the order

Recapitulate the points of agreement,

Offer to help the buyer write up the order

Ask whether the buyer wants A or B Get the buyer to make minor choices such as the color or size

Indicate what the buyer will lose if the order is not placed now


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Follow-up and MaintenanceFollow-up and Maintenance

After closing

Salesperson should cement any necessary details :

Delivery time

Purchase terms

Other matters

Salesperson should schedule a follow-up call

To detect any problem

Assure the buyer interest

Reduce any cognitive dissonance

Sales person should develop a maintenance and growth plan for the

account


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NegotiationNegotiation

My father said: "You must never try to make all themoney that's in a deal. Let the other fellow make some

money too, because if you have a reputation foralways making all the money, you won't have many

deals.

J. Paul Getty


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NegotiationNegotiation

Much business-to-business selling involves negotiating skills

The two parties need to reach agreement

Price

Others term of sale Salesperson need to win without making deep concessions that will

hurt profitability

There are 2 exchange in marketing

Routinized exchange : administered program of pricing anddistribution

Negotiated exchange : price and others term area set via

bargaining behavior

To continued in chapter 03Negotiation..


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Relationship MarketingRelationship Marketing

The principles of personal selling and negotiation thus far described are

transaction oriented because their purpose is to close a specific sale

The company must build a long-term supplier customer relationship by

demonstrating that it has the capabilities to serve the accounts needs in

a superior way over the long run The company must build relationship marketing rather than transaction

marketing, because larger customers are often global and prefer

suppliers that can :

sell and deliver a coordinated set of products and services to many

locations

quickly solve problems that arise in different locations

work closely with customer teams to improve products and

processes


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To succeed in winning and maintaining accounts in todays

demanding environment, company must :

Encourage sales teamwork

Reward it with appropriate compensation for work on shared

accounts Establish better goals

Measures for their sales force

Reinforce the importance of teamwork in their training programs

The organization will begin to focus as much on managing its

customers as on managing its products


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Neil Rackham has developed a method to raise 4 types of

question with the prospect

SPIN selling

Situation Problem

Implication

Need-Payoff


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Situation question

Ask about fact

Explore the buyers present situation

Problem question

Deal with problem, difficulties, and dissatisfactions the buyers is

experiencing

Implications question

Ask about the consequences or effects of a buyers problem, difficulties,

and dissatisfactions

Need-payoff question

Ask about the value or usefulness of a proposed solution


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Neil Rackham suggest if selling complex product or services, sales

person should have move from preliminaries to :

Investigating problem and needs

Demonstrating the suppliers superior capabilities

Obtaining a long-term comitment


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NotesNotes

1. For an excellent summary of the skills needed by sales representatives and sales managers, seeRolph Anderson and Bert Rosenbloom, The World Class Sales Manager: Adapting to GlobalMegatrends, Journal of Global Marketing 5, no. 4 (1992): 1122.

2. Some of the following discussion is based on W. J. E. Crissy, William H. Cunningham, andIsabella C. M. Cunningham, Selling: The Personal Force in Marketing (New York: John Wiley,1977), pp. 11929.

3. For additional reading, see Howard Raiffa, The Art and Science of Negotiation (Cambridge, MA:

Harvard University Press, 1982); Max H. Bazerman and Margaret A. Neale, Negotiating Rationally(New York: Free Press, 1992); James C. Freund, Smart Negotiating (New York: Simon & Schuster,1992); Frank L. Acuff, How to Negotiate Anything with Anyone Anywhere Around the World (New

York: American Management Association, 1993); and Jehoshua Eliashberg, Gary L. Lilien, andNam Kim, Searching for Generalizations in Business Marketing Negotiations, MarketingScience 14, no. 3, pt. 1 (1995): G47G60.

4. See Donald W. Dobler, Purchasing and Materials Management, 5th ed. (New York: McGraw- Hill,1990).

5. Adapted from Roger Fisher and William Ury, Getting to Yes: Negotiating Agreement WithoutGiving In, rev. ed. (Boston: Houghton Mifflin, 1992), p. 57.

6. See Frank V. Cespedes, Stephen X. Doyle, and Robert J. Freedman, Teamwork for TodaysSelling, Harvard Business Review, MarchApril 1989, pp. 4454, 58. Also see Cespedes,Concurrent Marketing: Integrating Product, Sales, and Service (Boston: Harvard BusinessSchool Press, 1995).


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QuestionsQuestions


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To be continued in the next chapterTo be continued in the next chapter

Kurniawan

kurniawan [email protected]

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