Effective Selling

Session 3 & 4

Prof. Sanjeev Varshney

Effective Selling

Understand the buyer purchase process and take him from one stage of decision making to another Integrate sales people with other functions in marketing to influence this purchase process Focus only on those activities which a sales man can do best

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 influence tactics Avoiding the use of high pressure
A shift from transaction based selling to relationship based selling

Roles of a Salesman
Building relationships Seeking referrals Closing deals Market intelligence

Prospecting

Selling the product

Maintaining profitability

Effective day planning

Role of Sales Force

Sales Force Brand Management

Retailer Shopper
(one who involves in the act of purchase and buys

Consumer
(one who identifies the need and decides about the product)

Shopper may or may not consume the product

Role of Sales Force in Traditional Retail

(Planned Shopping Behaviour)

Need Identification

Product Marketing

Generate Alternatives Trade Marketing/ Sales Force Evaluate Alternatives

Purchase Decision Purchase Act Post Purchase Behaviour

Role of Sales Force in Modern Retail

(Planned Shopping Behaviour)

Need Identification

Product Marketing

Generate Alternatives Trade Marketing/ Sales Force Evaluate Alternatives

Purchase Decision Purchase Act Post Purchase Behaviour

Impulse Shopping Behaviour

Need Identification Product Marketing Trade Marketing/ Sales Force

Generate Alternatives

Evaluate Alternatives

Purchase Decision Purchase Act Post Purchase Behaviour

Decision Making Role of Shopperso Role of a shopkeeper-salesman

Impulse Shopping Behaviour Modern Retailing

Traditional Retailing

Context
Cognitive (Information) Product Marketing

Affect (Perceptions and attitude)

Trade Marketing/ Sales Force

Conation (Decision stage and Readiness to act)

Action (Purchase)

Basic Sales Principles

What are the factors responsible for the success of a product? Individually, list all these factors. Time 5 minutes.

Basic Sales Principles

Exercise II

Out of the list generated here, what are the key factors a sales man can impact, and to what extent?

Basic Sales Principles

The Key factors you influence: Distribution Display Date

Role and Responsibility

What is the meaning of Distribution? Right Outlet Right Range Right Quantity

Role and Responsibility

Distribution What is Right Outlet?

Bakers

and Confectioners. General Merchants. Modern retail outlet Wholesalers

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.

Role and Responsibility

Display

Good Displays act as Silent Salesman. Displays are the means through which Salesmen drive consumer offtake.

Role and Responsibility

Date

Fresh Stock to the consumer.

Role in different stages of Decision making

Mental State Curiosity Interest Conviction Sales Step Attention Interest Critical Sales Task Get Prospects excited, then you Get them to like you Interview: needs & wants

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 Close Overcome their stall Alternate choice close: which , not if!

Desire Action

Product Categories & Role of Sales man

Decision Process Picking/ Impulse Variety Seeking Habit Sub-contract Extended problem solving What is the Buyer Looking for during the purchase Convenience, very little uncertainty of using untried brand Convenience plus variety, very little uncertainty of using untried brands Willing to travel for brand. High uncertainty of untried brands Role of the Sales man Ensure Availability & good display Ensure availability & good display as well positive word of mouth from the retailer Reassurance is required

Buyer not knowledgeable, depends Trade motivation to help the on a credible source consumer in decision making Willing to travel for brand, High uncertainty of untried brands Trade Motivation, demonstration and trial to help the consumer in decision making

Dominant Styles Used during selling

Dominance/Submissive Sociability/Analytical Thinking Patience/Drive Compliance/Independence

Different selling styles

Trade Selling Missionary selling Technical selling New Business Selling Consultative selling

Selling Styles for Different Buying Situations

Involvement of the end consumer in the decision process
Low Low Involvement of the Salesperson required during decision process Trade selling High Trade selling (Variety seeking behavior) Acceptance (habitual behavior) New Business Selling

High involvement of the sales person required during decision process

Missionary selling

Selling Styles for Different Service-Buying Situations

Low Uncertainty of untried brands Low differences between brands Trade selling High Uncertainty of untried brands Dominance

High differences between brands

Trade selling Acceptance

Selling solutions (if consumer is knowledgeable) Missionary selling (if consumer is not knowledgeable)

Steps of the Call

1. 2. 3. 4. 5. 6. 7.

Planning and Preparation Opening the Call Outlet Check and Housekeeping Persuasion and Objection Handling Closing Merchandizing Administration

25

Transaction Analysis

Transaction analysis

Describes how people are structured psychologically It introduces different ego-state (Parent-Adult-Child) of an individual Explains how people function and express themselves in their behavior. Awareness on various ego states of individuals will enable you to identify and practice the most appropriate ego state for successful interaction with team members.

Different Behaviour Ego States

Parent

Adult

Child

Parent

In this state people behave, feel, and think in response to an unconscious mimicking of how their parents (or other parental figures) acted. Example: a person may shout at someone out of frustration because they learned from an influential figure in childhood the lesson that this 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 head Judgmental- based on automatic responses Evaluative Value based

Some of the Verbal Clues of a parent ego state are

Adult

In this state people behave, feel, and think in response to what is going on in the "here-and-now," using all of their resources as an adult human being with 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.

Child
In this state people revert to behaving, feeling and thinking close to how they did in childhood. Example, a person being told off by the boss at work may look down and feel shame or anger, as they used to when being told 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

Interaction Process

Stimulus

A
Response

Various form of Interaction

2 people are in same ego-state

P P

2 people are in different ego-state

P P

Examples
Example A: The parent says-this bus is always late. The parent response would be-what do you expect from this management. The adult response would be Have you traveled earlier by this bus. The child response would be- I wish we had aero planes that flew on 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 as you are producing results

Outcomes of Interactions

All of these interactions are not desirable But there is no general rule as to the effectiveness of 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.

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 to estimate how the whole discussion will go.

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 not able 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?

Role Play II

Lets observe a sales manager-distributor interaction with regard to market expansion and better display. Sales manager is asking for greater efforts towards market expansion and ensuring better display. Distributor complaints that 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?

Building Relationships

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.

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 without paying for it.

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.

Managing Relationships
In every interaction, we want both BUSINESS needs and EMOTIONAL needs to be fulfilled.

Comparing Transaction-Based Marketing and Relationship Marketing Strategies

Ways to Build Relationships

Making promises Enabling Promises Keeping Promises

The Relationship Marketing Continuum

First Level: Focus on Price Second Level: Social Interactions Third Level: Interdependent Partnerships

Three Levels of Relationship Marketing

Characteristic Primary bond Degree of customization Potential for sustained competitive advantage Examples Low Low

Level 1 Financial

Level 2 Social Medium Moderate

Level 3 Structural Medium to high High

American Airlines Harley-Davidsons Federal Express AAdvantage Harley Owners PowerShip program Group (HOG) program

Building Buyer-Seller Relationships

Many customers are seeking ways to simplify their lives, and relationships provide a way to do this Customers find comfort with brands that have become familiar through their ongoing relationships with companies Such relationships often lead to more efficient decision-making by customers and higher levels of customer satisfaction

To Change Attitude: Change the Cognitive Component

Change Beliefs Shift Importance Add Beliefs Change Ideal

To change attitude: Change the Affective Component

Classical Conditioning: repeat Increase affect (Do Brand Building-develop trust) Mere exposure

Change the Behavioral Component

Reciprocity

Door-in-the-face technique (big request first - target refuses, 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 similar endorsers Social validation -statistical advertisements(85 % of the population)

Understanding the retailers/customers needs

Why do retailers buy?

To Re-sell (But will he buy everything he can resell?) To make profit To fulfill needs of their own customers. To fulfill functional needs To fulfill emotional/psychological needs To minimise risk (financial, psychological and physical)

Why do customers buy?

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 Customers needs

Summary
1.

2.

We often assume that the Customer buys ONLY for profit. Hence we talk most often of schemes. This is incorrect. When we fulfill Emotional Needs of the Customer, we build an excellent rapport with them. This is extremely important for Successful Selling.