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Effective Selling
Prof. Sanjeev Varshney
Session 3 & 4
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Effective Selling
Understand the buyer purchase process and
take him from one stage of decision making
to another
Integrate sales people with other functions inmarketing to influence this purchase process
Focus only on those activities which a sales
man can do best
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Right way of selling
The desire to help customers make
satisfactory purchase decisions
Helping the customers assess their needs
Offering products that will satisfy those needs
Describing products accurately
Avoiding deceptive or manipulative influencetactics
Avoiding the use of high pressure
A shift from transaction based selling to relationship based selling
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Roles of a SalesmanBuilding
relationships
Effective day
planning
Prospecting
Seeking
referrals
Market
intelligence
Selling the
product
Maintaining
profitability
Closing deals
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Shopper may or may not consume the product
Role of Sales Force
Sales Force BrandManagement
Retailer
Shopper(one who involves
in the act ofpurchase and
buys
Consumer(one who identifies
the needand decides
about the product)
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Role of Sales Force in Traditional Retail
(Planned Shopping Behaviour)
Need Identification
Generate Alternatives
Evaluate Alternatives
Purchase Decision
Purchase ActPost Purchase
Behaviour
Trade
Marketing/
Sales Force
Product
Marketing
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Role of Sales Force in Modern Retail
(Planned Shopping Behaviour)
Need Identification
Generate Alternatives
Evaluate Alternatives
Purchase Decision
Purchase ActPost Purchase
Behaviour
Product
Marketing
Trade
Marketing/
Sales Force
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Impulse Shopping Behaviour
Need Identification
Generate Alternatives
Evaluate Alternatives
Purchase Decision
Purchase ActPost Purchase
Behaviour
Product
Marketing
Trade
Marketing/
Sales Force
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Impulse Shopping Behaviour
Decision Making Role of Shopper-
so Role of a shopkeeper-salesman
Modern Retailing
Traditional Retailing
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Context
Cognitive (Information)
Affect (Perceptions
and atti tude)
Conation (Decision
stage
and Readiness to act)
Action (Purchase)
ProductMarketing
Trade
Marketing/
Sales Force
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Basic Sales Principles
What are the factors responsible for the
success of a product? Individually, list all these factors.
Time 5 minutes.
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Out of the list generated here, what
are the key factors a sales man can
impact, and to what extent?
Basic Sales Principles
Exercise II
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Basic Sales Principles
The Key factors you influence:
Distribution
Display Date
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Role and Responsibility
What is the meaning of
Distribution?
Right Outlet Right Range
Right Quantity
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Role and Responsibility
Distribution What is Right Outlet?
Bakers and Confectioners.
General Merchants.
Modern retail outlet
Wholesalers
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Role and Responsibility
Distribution Right Quantity
Enough stocks to last till the next
sales call.Ensure adequate Display Space in
the Outlet even when you take the
next order.
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Role and Responsibility
Display Good Displays act as Silent
Salesman. Displays are the means
through which Salesmen drive
consumer offtake.
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Role and Responsibility
Date Fresh Stock to the consumer.
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Role in different stages of
Decision makingMental
State
Sales
Step
Critical Sales Task
Curiosity Attention Get Prospects excited, then you Get them to like
you
Interest Interest Interview: needs & wants
Conviction Conviction Whats in it for me?,Product- Will it do what I want it to do?
Price- Is it worth it? The Hassle of Change/
Cheaper elsewhere
Peers- What will others think of it?Priority- Do I need it now? (sense of urgency)
Desire Desire Overcome their stall
Action Close Alternate choice close: which , not if!
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Product Categories & Role of
Sales manDecision
Process
What is the Buyer Looking for
during the purchase
Role of the Sales man
Picking/Impulse
Convenience, very littleuncertainty of using untried brand
Ensure Availability & gooddisplay
Variety
Seeking
Convenience plus variety, very
little uncertainty of using untried
brands
Ensure availability & good
display as well positive word of
mouth from the retailerHabit Willing to travel for brand. High
uncertainty of untried brands
Reassurance is required
Sub-contract Buyer not knowledgeable, depends
on a credible source
Trade motivation to help the
consumer in decision making
Extended
problem
solving
Willing to travel for brand, High
uncertainty of untried brands
Trade Motivation,
demonstration and trial to help
the consumer in decision
making
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Dominant Styles Used during
selling
Dominance/Submissive
Sociability/Analytical Thinking
Patience/Drive
Compliance/Independence
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Different selling styles
Trade Selling
Missionary selling
Technical selling
New Business Selling Consultative selling
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Selling Styles for Different Buying
Situations
Low High
Low Involvement of the
Salesperson required
during decision process
Trade selling Trade selling (Variety
seeking behavior)
Acceptance (habitualbehavior)
High involvement of the
sales person requiredduring decision process
Missionary selling New Business Selling
Involvement of the end consumer in the decision process
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Selling Styles for Different
Service-Buying Situations
Low Uncertainty of untried
brands
High Uncertainty of
untried brands
Low differences between
brands
Trade selling Dominance
High differences between
brands
Trade selling
Acceptance
Selling solutions (if
consumer is
knowledgeable)
Missionary selling (ifconsumer is not
knowledgeable)
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25
Steps of the Call
1. Planning and Preparation
2. Opening the Call3. Outlet Check and Housekeeping
4. Persuasion and Objection Handling
5. Closing6. Merchandizing
7. Administration
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Transaction Analysis
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Transaction analysis
Describes how people are structured psychologically
It introduces different ego-state (Parent-Adult-Child)of an individual
Explains how people function and expressthemselves in their behavior.
Awareness on various ego states of individuals willenable you to identify and practice the mostappropriate ego state for successful interaction with
team members.
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Different Behaviour Ego States
Parent
Adult
Child
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In this state people behave, feel, and think in response to anunconscious mimicking of how their parents (or other parental
figures) acted.
Example: a person may shout at someone out of frustration becausethey learned from an influential figure in childhood the lesson thatthis seemed to be a way of relating that worked.
Some of the Physical clues of a parent ego state are Pointing Index finger
Hands on Hips
Tongue Clicking
Patting another on the headSome of the Verbal Clues of a parent ego state are
Judgmental- based on automatic responses
Evaluative
Value based
Parent
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In this state people behave, feel, and think in response to what is going onin the "here-and-now," using all of their resources as an adult human beingwith many years of life experience to guide them. While a person is in the
Adult ego state, he/she is directed towards an objective appraisal of reality.
Some of the Physical clues of the adult ego state are Adult demonstrates listening attentively, by continual movement and the blinking
of the eye.
Some of the Verbal clues of the adult ego state are Common descriptors are:
I think
Possible
Factual.
Data based.
Demonstrating Empathy.
Retaining Composure. Patient.
Probing Using words like what, why, where etc.
Matter of Fact.
Seeks information.
Confirms understanding/ Clarifying
Enhances Self Esteem of other person.
Adult
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In this state people revert to behaving, feeling and thinkingclose to how they did in childhood.
Example, a person being told off by the boss at work may lookdown and feel shame or anger, as they used to when beingtold off as a child.
Some of the Physical clues of the child ego state are Teasing.
Delight/ Laughter
Nail biting
High pitched voice
Some of the Verbal clues of the child ego state are I wish
I want
Bigger
Best I dont care
Child
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Interaction Process
A B
BA
Stimulus
Response
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Various form of Interaction
2 people are in same ego-state
2 people are in different ego-state
P
A
C C
A
P
P
A
C C
A
P
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ExamplesExample A:
The parent says-this bus is always late.
The parent response would be-what do you expect from thismanagement.
The adult response would be Have you traveled earlier by thisbus.
The child response would be- I wish we had aero planes that flewon the earth.
Example B:
In a business scenario; The parent says- you should familiarize yourself with ground
realities.
The adult says- how many days you spend in the field.
The Child says- I do not care about ground realities as long asyou are producing results
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Outcomes of Interactions
All of these interactions are not desirable
But there is no general rule as to the effectivenessof any ego state in any given situation
(some people get results by being dictatorial (Parent to
Child), or by having temper tantrums, (Child to Parent),
But for a balanced approach to life, and for success
in business management Adult to Adult is generally
recommended.
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Exercise
Please list down various statements that
your customers make.
Now we will classify them as P-A-C.
Adult Responses to the same, and try toestimate how the whole discussion will
go.
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Role Play I Lets observe a customer-sales man
interaction for purchase of a Car.Customer wants a bigger car for fulfilling
his big family needs but also has
investment constraints in mind. He is notable to make a choice. You are a sales
man from Ford Motors.
Discussion: What is the outcome? What ego state
people were into and how can you make the output
effective?
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Role Play II
Lets observe a sales manager-distributor
interaction with regard to market expansion andbetter display. Sales manager is asking for
greater efforts towards market expansion and
ensuring better display. Distributor complaintsthat market is already crowded and margins are
low and is thus difficult to work towards market
expansion and better display.
Discussion: What is the outcome? What ego state
people were into and how can you make the output
effective?
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Building Relationships
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Prejudices of Customers
Sales People tell lies
Sales People are only concerned about
their own targets.
Sales People do not honour commitment. Sale People only talk, dont do.
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Prejudices of Sales People
Retailers are ONLY concerned about
their margin and Profit. Retailers know what they want to buy.
Retailers know how much to buy.
Retailers will not let me merchandize withoutpaying for it.
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Managing Prejudices
Is it possible to change the prejudices
of retailers?
No, You cannot change these prejudices. It is
extremely difficult.
It is possible to overcome these prejudices.
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Managing Relationships
In every interaction, we want both BUSINESSneeds and EMOTIONAL needs to be fulfilled.
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Comparing Transaction-Based Marketing
and Relationship Marketing Strategies
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Ways to Build Relationships
Making promises
Enabling Promises
Keeping Promises
The Relationship Marketing
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The Relationship Marketing
Continuum
First Level: Focus on Price
Second Level: Social Interactions
Third Level: Interdependent
Partnerships
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Three Levels of Relationship Marketing
Characteristic Level 1 Level 2 Level 3
Primary bond Financial Social Structural
Degree of
customization
Low Medium Medium to high
Potential forsustained
competitive
advantage
Low Moderate High
Examples American AirlinesAAdvantage
program
Harley-DavidsonsHarley Owners
Group (HOG)
Federal ExpressPowerShip
program
Building Buyer Seller
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Building Buyer-Seller
Relationships Many customers are seeking ways to simplify
their lives, and relationships provide a way todo this
Customers find comfort with brands that have
become familiar through their ongoingrelationships with companies
Such relationships often lead to more efficient
decision-making by customers and higherlevels of customer satisfaction
To Change Attitude:
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To Change Attitude:
Change the CognitiveComponent
Change Beliefs Shift Importance
Add Beliefs
Change Ideal
To change attitude:
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g
Change the AffectiveComponent
Classical Conditioning: repeat
Increase affect (Do Brand Building-develop
trust)
Mere exposure
Change the Behavioral
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Change the Behavioral
Component Reciprocity
Door-in-the-face technique (big request first - targetrefuses, then the communicator concedes by asking
for a small favor -target agrees) Scarcity - one-day offer, two-days sale, must suggest
better value
Authority - expert endorsers
Commitment - make the target commit to some small thing
Foot-in-the-door technique (small request first)
Low-balling - to commit to an attractive option first(car deals)
Even-a-penny-will-help technique
Liking/compliments - persuasion by favorite or/and similarendorsers
Social validation -statistical advertisements(85 % of thepopulation)
Understanding the
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Understanding the
retailers/customers needs
Why do retailers buy?
To Re-sell (But will he buy everything he can re-sell?)
To make profit
To fulfill needs of their own customers.
Why do customers buy?
To fulfill functional needs
To fulfill emotional/psychological needs
To minimise risk (financial, psychological and
physical)
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Some more
Is there any other reason why Customers buy?
To deal in quality products
He likes to be associated with big brands
He gets credit (good service) from the Distributor
He gets the service from YOU that he expects
He likes YOU. You have an excellent rapport with
him.
Understanding the
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Understanding the
Customers needs
Summary1. We often assume that the Customer buys
ONLY for profit. Hence we talk most often of
schemes. This is incorrect.
2. When we fulfill Emotional Needs of the
Customer, we build an excellent rapport with
them. This is extremely important for
Successful Selling.
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