PPT On Personal Selling: Preparation and Process
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Presentation Transcript:
1. Personal Selling: Preparation and Process2. Learning Objectives
To understand psychology in selling, buying decision process and buying situations
To learn communication skills, sales knowledge, and sales related marketing policies
To understand personal selling process
To learn about negotiation
3. Psychology in Selling
If a sales person makes a presentation, the prospect may or may not buy
The above “buyer behaviour model” does not tell us the reasons of buying or not buying
To understand the psychological aspects of selling or buying, salespeople should study consumer or buyer behaviour, including buying process and situations
4. Buying Process of Consumers and Business Buyers
5. Buying Situations Faced By
Buying process and situations differ for household consumers and business buyers.
Consumers / Buyers may skip or reverse some stages in buying process. E.G. A consumer buying toothpaste
6. Knowledge of Sales and Sales-related Marketing Policies
Major reasons for giving above information / knowledge through training programmes to salespeople are:
increase their self-confidence
Meet customers’ expectations
Increase sales
Overcome competition
7. The Sales Process
As a part of selling activities, if salespeople follow the steps or phases shown below, their chances of success are far better.
The sequence of above steps may change to meet the sales situation in hand.
Some of the above steps may not be applicable for selling to the trade
We now discuss application of above steps to industrial selling
8. Prospecting
It is identifying or finding prospects i.e. prospective or potential customers.
Methods of prospecting or sales lead generation are: (1) referrals from existing customers, (2) company sources (website, ads., tradeshow, teleprospecting), (3) external sources (suppliers, intermediaries, trade associations), (4) salespersons’ networking, (5) industrial directories, (6) cold canvassing
Qualifying
Companies qualify sales leads by contacting them by mail or phone to find their interests (or needs) and financial capacity.
Leads are categorized as: Hot, Warm, and Cool
9. Preapproach
Information gathering about the prospect.
Sources of information: the Internet, industrial directories, government publications, intermediaries, etc.
Precall planning
Setting call objectives
Tentative planning of sales strategy: which products, features and benefits may meet the customer needs
10. Approach
Make an appointment to meet the prospect
Make favourable first impression
Select an approach technique:
Introductory
Customer benefit
Product
Question
Praise
The approach takes a few minutes of a call, but it can make or break a sale
11. Presentation and Demonstration
There are four components:
Understanding the buyer’s needs
Knowing sales presentation methods / strategies
Developing an effective presentation
Using demonstration as a tool for selling
We will examine each of the above points
12. Understanding the buyer’s needs
Firms and consumers buy products / services to satisfy needs
To understand buyer’s needs, ask questions and listen
In business situations, problem identification and impact questions are important
E.G.
Have you experienced any problems on quality and delivery from the existing supplies?
What impact the quality and delivery problems will have on your costs and customer satisfaction?
13. Knowing Sales Presentation Methods/Strategies
Firms 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.
14. Sales Presentation Methods (Continued)
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
Consultative selling method / Problem-solving approach
Salespeople use cross-functional expertise
Firms adopt team selling approach
It is used by software / consulting firms
15. Developing an Effective Presentation
Some of the guidelines are:
Plan the sales call
Adopt presentation to the situation and person
Communicate the benefits of the purchase
Present relevant and limited information at a time
Use the prospect’s language
Make the presentation convincing – give evidence
Use technology like multi-media presentation
16. Using Demonstration
Sales presentation can be improved by demonstration
Demonstration 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
17. Overcoming Sales Objections / Resistances
Objections take place during presentations / when the order is asked
Two types of sales objections:
Psychological / hidden
Logical (real or practical)
Methods for handling and overcoming objections: (a) ask questions, (b) turn an objection into a benefit, (c) deny objections tactfully, (d) third-party certificate, (e) compensation
18. Trial close and Closing the sale
Trial close checks the attitude or opinion of the prospect, before closing the sale (or asking for the order)
If the response to trial close question is favourable, then the salesperson should close the sale
19. Follow-up and Service
Necessary for customer satisfaction
Successful salespeople follow-up in different ways: For example,
Check order details
Follow through delivery schedule
Visit when the product is delivered
Build long-term relationship
Arrange warranty service
20. Negotiation
Salespeople, particularly in business to business selling, need negotiating skills
When 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 decided
How to prepare for negotiation?
(a) planning, (b) building relationship, (c) purpose
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
21. Key Learnings
For 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, preapproach, 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
