2/5/2010

P
Personal
lSSelling
lli

Amay Kothari

Factor Affecting the Importance of

Personal Selling in the Promotional Mix
Variable Conditions that favor Personal Conditions that favor
Selling Advertising

Consumer Geographically concentrated Geographically dispersed

Relatively low number Relatively high number

Products Expensive Inexpensive

Technically Complex
Custom made
Special handling requirement
Transactions frequently involve
trade-ins
Simple to understand
Standardized
No special handling requirement
Transactions seldom involve trade
- ins

Price Relatively high Relatively low

Channels Relatively short Relatively Long

1
 2/5/2010

Evolution of Personal selling

It has been a standard business activity for
thousands of years
Early peddlers sold goods they manufactured or
imported viewed selling as a secondary activity.
Today’s salesperson is usually a highly – trained
professional
Sales professionals take a customer – oriented
approach employing truthful, non manipulative
tactics in order to satisfy the long – term to needs
of both the customer and the selling firm
firm.
Today’s professional salespersons are problem
solvers who seek to develop long – term
relationship with customers.

What buyers Expect from

Salespeople
Buyers prefer to do business with salespeople who:

O h t t events
Orchestrate t and
d bring
b i tot bear
b whatever
h t resources are
necessary to satisfy the customer.
Provide counseling to the customer based on in – depth
knowledge of the product, the market, and the customer’s
needs
Solve problems extremely proficiently to ensure satisfactory
customer service over extended time periods.
Demonstrate high ethical standards and communicate
honestly at all time.
Willingly advocate the customer's cause within the selling
organization
Creates imaginative arrangements to meet buyers’ needs
Arrive well – prepared for sales calls.

2
 2/5/2010

Recent trends in personal Selling

Relationship selling:
Relationship Selling
g
regular contacts over
an extended period to
Consultative Selling establish a sustained
seller – buyer
relationship.
The success of
Team Selling
tomorrow’s marketers
depends on the
relationships that they
Sales Force build today.
Automation

Recent trends in personal Selling

Relationship Selling Consultative

selling: meeting
customers needs
Consultative Selling by listing to them,
understanding –
and caring about –
Team Selling their problems,
paying attention to
details and
Sales Force following through
Automation after the sales.

3
 2/5/2010

Recent trends in personal Selling

Relationship Selling Team Selling:

combination of
salespeople with
specialists from other
Consultative Selling functional areas to
promote a products.
Useful in sales
Team Selling situations that call for
detailed knowledge of
news, complex, and
ever – changing
Sales Force technologies.
Automation

Recent trends in personal Selling

Sales forces automation
Relationship Selling (SFA): applications of
computers and other
technologies to make sales
functions more efficient
Consultative Selling and competitive
Benefits include improved
effectiveness due to
improved access to
Team Selling information, lower costs,
improved product
launches, and attentive
customer service.
Sales Force
Automation

4
 2/5/2010

Sales Tasks
Three basic sales tasks can be identified.
Order Processing: g selling,
g mostly y at the
wholesale and retail levels, that involves
identifying customer needs, pointing them out to
customers, and completing orders.
Creating Selling: Personal Selling involving
situations in which a considerable degree of
analytical decision making on the buyer’s part
results in the need for skillful proposals of
solutions for the customer
customer’s s needs.
needs
Missionary sales: Indirect type of selling in which
specialized salespeople promote the firm’s
goodwill among indirect customers, often by
assisting customers in product use.

The Sales Process

The AIDA Concepts and the personal Selling Process.

Step 1 Prospecting & Qualifying

Step 2 Approach

Step 3 Presentation

Step 4Demonstration

Step 5 Handling Objections

Step 6 Closing

Step 7 Follow – Up

5
 2/5/2010

The Sales Process

The AIDA Concepts and the personal Selling Process.

Step 1 Prospecting & Qualifying

Attention
Step 2 Approach

Step 3 Presentation Interest

Step 4Demonstration Desire

Step 5 Handling Objections

Step 6 Closing
Action
Step 7 Follow – Up

Demonstration Handling Closing Follow - Up

Objects

Prospecting: Personal –
Presentation
selling function of identifying
potential customers
Qualifying: determining that a
Approach
prospect has the needs,
incomes, and purchase
authority necessary for being
Prospecting &
Qualifying a potential customers

6
 2/5/2010

Demonstration Handling Closing Follow - Up

Objects

Approach: salesperson’s initial

Presentation contact with a prospective
customer.
Precall planning: use of
information collected during the
Approach
prospecting and qualifying stages
off the
th sales
l process andddduring
i
previous contacts with the prospect
to tailor the approach and
presentation to match the
Prospecting & customer’s needs
Qualifying

Demonstration Handling Closing Follow - Up

Objects

Presentation
Presentation: describing
a product’s major features
and relating them to a
Approach customer’s
custo e sp problems
ob e s oor
needs

Prospecting &
Qualifying

7
 2/5/2010

Demonstration Handling Closing Follow - Up

Objects

Presentation
A demonstration allows
the customer to
experience a good or
service
Approach
Even good advertisements
can not substitute for an
Prospecting & effective demonstration
Qualifying ride in a new automobile.

Demonstration Handling Closing Follow - Up

Objects

Objections: expression of sales

Presentation resistance by the prospect
Example: A customer’s “I don’t like
the colour “ is probably their way of
asking what other colours are
Approach available
Objections are reasonable and
professional salespeople are
prepared to handle them
Prospecting &
Qualifying appropriately.

8
 2/5/2010

Demonstration Handling Closing Follow - Up

Objects

Presentation
Closing: stages of
personal selling where the
salesperson asks the
customer to make a
Approach
purchase
h d
decision
i i
Nearly 80% of salespeople
Prospecting & fail to close where the
Qualifying buyer is ready.

Demonstration Handling Closing Follow - Up

Objects

Follows – up: post – sales

Presentation
activities that often determines
whether an individual who has
made a recent purchase will
Approach
b
become a repeatt customer
t
Follow – up helps build
mutually beneficial long – term
Prospecting &
Qualifying relationship