02. PERSONAL SELLING...Personal-selling Situations (Types of Selling Jobs) •The job of a...

02. PERSONAL SELLING

•Definition, Meaning, Major Aspects

•Personal-selling Situations (Types of Selling Jobs)

•Buyer-seller Dyads

•Theories Of Selling

•Scientific Selling Process

PERSONAL SELLING - Definition,

Meaning, Major Aspects

•Personal selling is a personal (face-to-face, telephone,

or Internet chat) presentation for the purpose of making

sales and building relationships.

•Three major aspects of personal selling:

Professionalism,

Negotiation and

Relationship Marketing

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Personal-selling Situations (Types of

Selling Jobs)

•The job of a salesperson ranges from order takers to order getters.

•An order taker interacts with customers placing an order. •Order takers include most retail sales workers Cashiers, Counter and rental clerks, Real estate agents, brokers, and appraisers, Retail sales

workers, Services sales representatives etc.

•An order getter engages in creative selling of products and is responsible for the entire ordering and relationship-building process.•Order takers include sales representatives, Sales executives, Financial Advisors, Consultants etc.

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Personal-selling Situations (Types of

Selling Jobs)

•Different sales positions require different amounts and

kinds of service and developmental selling.

•Service selling aims to obtain sales from existing

customers

•Developmental selling aims to convert prospects into

customers.

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Personal-selling Situations (Types of Selling Jobs)

Sales Positions by McMurry and Arnold

GroupA (Service Selling)

1. Inside Order Taker‘ waits on’ customers

2. Delivery Salesperson engages in delivering the product

3. Route or Merchandising Salesperson operates as an order taker but works in the field

4. Missionary Salesperson aims only to build goodwill or to educate users, and is not expected to take order

5. Technical Salesperson emphasizes technical knowledge

GroupB (Developmental Selling)

6. Creative Salesperson of Tangibles aims to convert prospects into customers of tangible goods

7. Creative Salesperson of Intangibles aims to convert prospects into customers of intangible goods

GroupC (Developmental Selling Requiring Unusual Creativity)

8. ‘Political’, ‘Indirect’ or ‘Backdoor’ Salesperson sales are consummated through rendering highly personalized services which have little or no connection with the product

9. Salesperson Engaged in Multiple Sales salesperson must make presentations to several individuals in the customers organisation

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BUYER-SELLER DYADS

•Sociologists use the term ‘dyad’ to describe asituation in which two people interact.

•Salesmanship involves buyer-seller interactions.

•The salesperson and the prospect, interactingwith each other, constitute one example of a‘buyer-seller dyad’.

•The seller seeks to motivate the prospectivebuyer to behave favourably toward the seller.

•Whether or not the buyer reacts as the sellerdesires depends upon the nature of the

interaction.

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A Model of Buyer-Seller Dyadic Relationships

Feedback Feedback

Customer Salesperson

Start Salesperson-Customer

Relationship

Exchange

Personal

Affiliation

Choice of Strategy

Needs and Expectations

Personal

Characteristics

Role Requirements

& Characteristics

Choice of Strategy

Needs and Expectations

Personal

Characteristics

Role Requirements

& Characteristics

Negotiation

Adapt Adapt

Adjustment

Stop

Experience Experience

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THEORIES OF SELLING

• AIDAS Theory of Selling

•‘Right Set of Circumstances’ Theory of Selling

•‘Buying Formula’ Theory of Selling

•‘Behavioural Equation’ Theory

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THEORIES OF SELLING

AIDAS Theory of Selling

•During any successful sales presentation, the

prospect’s mind passes through five successive

mental states.

•The prospect goes through these five stages

consciously, so the sales presentation must lead

the prospect through them in the right sequence if

a sale is to result.

•The salesperson follows the AIDAS formula of

gaining attention, holding interest, arousing

desire, obtaining action and building satisfaction.

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AIDAS Theory of Selling

Securing Attention: The goal is to put the prospect in a receptive state of mind.

Gaining Interest: The goal is to intensify the prospect’s attention so that it evolves into strong interest. Throughout the interest phase, the hope is to search out the selling appeal that is most likely to be effective.

Kindling Desire: The goal is to kindle or stimulate the prospect’s desire to the ready-to-buy point. The salesperson must keep the conversation running along the main line toward the sale. Obstacles need to be identified and ways found to get around them.

Inducing Action: The goal is to induce the prospect to act – that is, to buy. It is up to the salesperson to sense when the time is right. The trial close and other different closing techniques are used to test the prospect’s reactions. The desired action is to make the prospect give consent for the sale, sign on the dotted lines of the order pad, and pay for the good or service that was being showed to him.

Building Satisfaction: The goal is to reassure the customer that the decision was correct. Building satisfaction includes thanking the customer for the order and following up on promises made during the presentation. It also includes building up a long term relation with the prospect.

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THEORIES OF SELLING

‘Right Set of Circumstances’ Theory of Selling

•Also called the ‘situation-response’ theory

•May be summed up by the statement “Everything was

right for that sale”.

•Holds that the particular circumstances prevailing in a

given selling situation cause the prospect to respond in a

predictable way.

•If the salesperson succeeds in securing the attention and

gaining the interest of the prospect, and if he presents the

proper stimuli or appeals, the desired response, that is the

sale, will result.

•The more skilled the salesperson is in handling the set of

circumstances, the more predictable is the response.HT

THEORIES OF SELLING

‘Buying Formula’ Theory of Selling

• This theory emphasizes the buyer side of the buyer-seller dyad.

• Reduced to their simplest elements, the mental processes involved in a purchase are:

need (or problem) → solution → purchase.

need (or problem) → solution → purchase → satisfaction.

The buying formula, therefore, is:

Adequacy

need (or problem) → product/service → purchase → satisfaction/

and/or dissatisfaction

trade name

Pleasant feelings

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THEORIES OF SELLING

‘Behavioural Equation’ TheoryFour essential elements of the learning process included in the

stimulus-response model are:

Drives: Strong internal stimuli that impel the buyer’s response.

Cues: Weak stimuli that determine when the buyer will respond.

Response: What the buyer does.

Reinforcement: Any event that strengthens the buyer’s tendency to make a particular response.

Howard incorporates these four elements into an equation:

B = P x D x K x Vwhere,

B = response or the internal response tendency

P = predisposition, force of habit

D = drive level (amount of motivation)

K = incentive potential (potential satisfaction to the buyer)

V = intensity of all cues

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Scientific Selling Process

1. Prospecting and Qualifying

2. Pre-Approach & Approach

3. Presentation and Demonstration

4. Overcoming Objections

5. Closing

6. Follow-Up and Maintenance

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Pre-Sale Preparation

The salespersons knowledge universe should, among many

things, include:

Product knowledge: Features, Benefits, Styles, Price etc.

Company knowledge: History, Management, Policies &

Procedures etc.

Competitors’ knowledge: Industry structure, Market

share, Market behaviour etc.

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• Prospecting and qualifying is the process of

identifying potential buyers

• A prospect list or pool, which consists of a group

of names, gathered from various sources

• Identifying prospects is also referred to as lead

generation and prospects are referred to as leads.

• Qualified prospects are also known as potential

or prospective customers.

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Steps in Prospecting

• Formulating prospect definition

• Searching out potential accounts

• Qualifying prospects and determining

probable requirements

• Relating company products to each

prospect’s requirements

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Sources of Prospecting• Friends, Relations and Acquaintances

• Referrals – Endless Chain

• Cold Calling

• Observation

• Non Competing Sales Force

• Tradeshows and Demonstrations

• Lists and Directories

• Direct Mail, Direct response Advts., Sales Letters

• Educational Seminars

• Trade Publications

• Database

• Internet

• Telemarketing

• Prospecting by Non-Sales Employees

• Networking

• Centres of Influence

•Combination Approaches: Organisations, usually, use a combination of all the above methods or sources to get the prospects.

E.g. Prospects may be identified at a trade show and later are subjected to telemarketing or are chosen to receive mailers or sales letters.

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Qualifying the Prospects

Prospect

(Lead)

Qualifying CriteriaExistence of

Need for the product

Ability to pay

Authority to buy

Qualified Prospect

(Potential or

Prospective

Customer)

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Pre-Approach

Pre-Approach is concerned with spelling out pre-sale objectives

and developing a pre-sale presentation plan

Product knowledge: Features, Benefits, Styles, Price etc.

Company knowledge: History, Management, Policies & Procedures etc.

Competitors’ knowledge: Industry structure, Market share, Market

behaviour etc.

Knowledge about prospect: Buyer needs, Buying style, Personal

characteristics etc.

It is necessary to develop a sales strategy by collecting customer data and

combining them with the product attributes as a fit for satisfying the

individual and organisational needs.

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Approach

Approach

Approach for an

Appointment

Approach for

Presentation

•Breaking-the-ice (Putting the

prospect at ease)

•Probing to find out the needs of the

prospect

•Planning and designing the

presentation

Objectives of Approach•Creating a favourable impression

•Arresting the attention of the

prospect

•Creating an interest for the product

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If presentation is ‘telling a story’ about a product,

demonstration is ‘showing and telling’.

Components or Stages

• Need Discovery

• Product Selection

• Informing, Persuading and Reminding

• Servicing the Sales

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Types of Presentation

Canned presentation

Organised presentation

Tailored presentation

Single Personnel Presentation

Group Sales Presentation

Single Call Presentation

Multiple Calls Presentation

Oral presentation

Written presentationHT



Tools for Effective Demonstration

• Product Itself

• Models

• Photographs/Illustrations

• Portfolio

• Reprints

• Graphs/Charts, Test Results

• Laptops and Demonstration Software

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• Handling and overcoming objections is a part of the broader skills of negotiations.

• Psychological resistances (like predetermined ideas, reluctance to giving up something, dislike for making a decision, preference for established brands etc.)

• Logical resistances (like objections related to price, delivery schedule, certain product or company characteristics etc.).

• Obstacles and ObjectionsObstacles are real or apparent reasons that the prospect has for not buying. Obstacles can be real or imaginary

Objections can be sincere or insincere

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Steps or mechanism for handling objections

• Smile

• Agree

• Turn the excuse into a reason to buy/

Handle the Objection

• Show more Value

• Close Differently

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Some Common ExcusesYes… But: It’s a fantastic idea but it will not work here. We would like to buy but not now.

Blaming: It is not my responsibility to make a decision. I don’t mind buying, but my wife won’t

like it.

Denial: I don’t need this new product. There is no reason for changing now.

Alibi: I don’t have the money to buy.I don’t have the authority.

Reframing reality: Our purchasing system is not unfair, but we are limiting our number of

suppliers.

Justification: We do have a need for the product but presently we are busy with our internal

reorganisation.

I’ve no choice: I tried my best but I have to go along with the majority. Based on the offer

from your competitor, I have to decide in their favour.

Helplessness: It is out of my hands, I can’t do anything now. If only I could convince my

spouse.

Minimizing: I don’t see anything great in this. There is little value in spending money on this.

Derogation: You don’t enjoy a good reputation in this area. Nobody will be around when it

comes to providing service. HT

Scientific Selling Process4. Overcoming Objections

Common Methods of Handling Excuses

Superior feature method: Salesperson accepts the objection and persuades through providing

additional advantages of his product, which may compensate the objection raised.

Yes… but method: Salesperson agrees with the objection at the beginning and then slowly

removes it from the customer’s mind by tactful handling of arguments.

Reverse English method: Salesperson changes customer’s objection into the basis of buying.

Indirect denial method: Salesperson denies the objection cleverly but indirectly by giving

affirmative answers to the objection.

Pass out method: Salesperson does not pay any attention to the customer’s objection and

expresses neutral opinion.

Comparison method: Salesperson demonstrates similar products of different producers and

removes the objection by comparing the benefits of his products with those of others.

Direct denial method: Salesperson rejects the customer’s objection outright.

Another angle method: Salesperson advices the customer to look from another angle, which is

positive.

Narrative method: Salesperson uses a story to remove customer objection.

Testimonial method: Salesperson presents the sales message by referring to celebrities and

persons of importance as users of the product.

Question method/ Why method: Salesperson asks questions, one after the other, to the

customer against his objection and tries to get suitable answers to that objection from the

customer himself. HT


5. Closing

• Closing is referred to as the task of asking for the order.

Methods for Closing

• Trial Close

• Summary-of-Benefits Close

• Assumption Close

• Special Concession Close

• Multiple Options Close

• Direct Appeal Close

• Combination Closes

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Steps of Follow-Up and Maintenance• Thank the Customer for the order.

• Congratulate him over his decision. The customer should be left

with the impression that the act of buying was his decision and

that the salesperson merely helped in the deciding process.

• Summarize the Deal. Write down in clear terms the salient

features of the deal. Mention what he is getting against what he

is paying. Highlight the features and the benefits.

• Reinforce the Deal. Equip the customer with sufficient literature

and materials to fall back upon once the salesperson leaves his

premises.

• Follow-Up on promises made during the presentation.

• Maintain a good relationship with the prospect. Customer

satisfaction also includes building up a long term relation with

the prospect.

HT



Customer Service Methods

• Suggestion Selling

• Cross-Selling

• Follow Through

• Follow Ups

HT

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