Buying Decision Process

Problem or Need Recognition Information Search Evaluation of Alternatives Purchase Decision Post Buyer Behaviour

The buying is either

- Routine Decision Making - Limited Decision Making - Extensive Decision Making

A definition of personal selling

The process of persuasion leading to a continuing

trade arrangement, initiated and perpetuated at either a personal or impersonal level but commonly confined to oral representation supported by visual aids (Institute of Marketing).

Selling and the promotional mix

Personal selling is one element of the promotional mix. In business to consumer markets (B2C) personal selling and advertising are the main elements of the mix. Personal selling becomes more important when
The product is more complex The product is more expensive The product is bought infrequently The customers is another business i.e. B2B markets

Types of Communication
Product Promotion Place Price

Personal Selling

Public Relations

Advertising

Sales Promotion

Direct Marketing

B2C transactions where personal selling is.

Very important
Motor vehicles Fitted kitchens

Unimportant
Food Grocery

Double glazing
Security systems Conservatories

Clothing
CDs/DVDs Books

Shopping and speciality

i.e. Convenience goods

goods

The essence of personal selling

The presentation of products and associated

persuasive communication to potential clients Involves two way, persuasive communication The aim is to match customer needs with the goods/services on offer Ultimate objective: to make a sale

Selling involves..
Creating positive attitudes towards a product or service Motivating people to want to purchase a product or

service Convincing people that they will be acting wisely if the buy Closing/clinching a sale Reassuring people that they have acted wisely in making a purchase

The objectives of personal selling

To increase the volume of sales To increase sales revenue To reduce the costs of sales To increase the number of distribution outlets To prospect for new customers To increase sales per customer To reduce the number of customers with minimum viable orders

The role of the sales representative

To gather information about customer wants To communicate information especially on the advantages of the product to

the customer
To prospect-look for new opportunities. Prospecting is concerned with locating

potential customers
To display and demonstrate the product To advise customers

To advise on stock levels

To progress orders To build goodwill To deal with complaints To close the sale - i.e. to secure a sale To provide after -sales service To collect orders from customers In some cases, to make deliveries

Personal selling skills

Interpersonal qualities
Adaptability Self motivation Problem solving capabilities Product knowledge Customer knowledge Presentation skills

Sales reps require information on

The product
Customers Territory Techniques of selling Promotional material His/her own organisation Targets

Five Ps of personal selling

Preparation- preparation of material for use
Prospecting - locating potential customers Pre-approach - tailoring material for the prospect

(the potential buyer) Presentation - delivering the presentation Post sale support - re-enforcing and confirming the customers choice

Sales representatives - typical tasks

Steps in the sales process (1)

Prospecting - locate potential customers.
Pre-approach - gather information on the product

and the prospect (the potential buyer). The approach - face to face meeting
to create favourable impression to verify the facts to set the stage for the rest of the meeting

Steps in the sales process (2)

The presentation: transmit the promotional message. describe the product. highlight the advantages. cite examples of customer satisfaction. demonstrate to reinforce the message.

Steps in the sales process (3)

Handling objections - this is an opportunity to

present additional points. Closing - the critical stage in which the salesperson seeks to gain the buyers commitment to purchase. The follow-up: to make sure the buyer is satisfied.

The Sales Process

Prospecting/ Qualifying
Preapproach/ Planning

Identifying Needs

Identifying Needs

Approach

Presentation

Handling Objections

Closing the Sale

Follow up

Personal selling process (1) Prospecting

Identify the potential customers
Making warm contacts rather than cold calling

Leads - prospective customers.

Prospects before a contact, find they with potential.

Qualified prospects after a contact, find they with great potential.

Sources of prospects

Personal selling process (2) Preparation and planning

It is to look for:

Customers buying criteria and needs Customer organisations purchasing structures

The application of the product and the features and benefits required.

Personal selling process (3) Initial contacts

It is to build up mutual rapport, respect and trust

between the buyer and seller before the formal and serious business discussion.
Two approaches:

Initial phone call for a meeting appointment Could calling/visiting for a lucky meeting arrangement

Personal selling process (4) -Sales presentation

It is to show how the product offering and the

customers needs match.

Stimulus response. Formula selling. Need satisfaction.

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 prospects 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.

Sales Presentation Methods contd..

Need satisfaction method Interactive sales presentation First find prospects needs, by asking questions and listening Use FAB approach: Features, Advantages, Benefits Effective method, as it focuses on customers

Using Demonstration
Sales presentation demonstration

can

be

improved

by

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 buyers purchasing interest Helps to find specific benefits of the prospect

The prospect can experience the benefit

Personal selling process (5) Handling typical objections

Typical objections:
Your: company, product, service, pricing; You; you are not competitive enough I cant afford it; I dont need it Ask the objection back. Agree and counter. Boomerang. Feel, felt, found. Denial.

Personal selling process (6) Types of negotiations

Co-operative or win-win - trading concessions results in a better deal for both parties.

Competitive negotiation - hard bargain focused on short term gain.

Personal selling process (7) Types of sales closure

It has reached the point where the customer agrees to

purchase.

Alternative close. Assumptive close. Time pressure close.

Personal selling process (8) Follow-up and account management The role of personal contact

Block I : Basics of Sales Management Personal Selling and Distribution

Personal Selling Sales force has a significant role to play role in coordinating, liaisoning and advocating the products utility to the end user. The end result of any distribution effort is the ready availability of the product to the customer, in the right quantity and at the right place.

If the product is not available when it is actually required by the customer, then the whole business activity and all related efforts are rendered useless.

Personal Selling and Product Promotion

The sales force actually stimulates and generates enough interest in the customer and helps him make the final decision to buy the product.

Without this effort the whole exercise of advertising and public relations would be futile.
Advertising and public relations actually support the efforts of the sales 2 31 And thus personal selling promotes a product. Dr. S L Gupta Excel Books force.

and Demonstration BlockPresentation I : Basics of Sales Management

Personal Selling A good presentation is as important as a good product.

The significance of a good presentation of the product can be gauged from the fact that many a time an attractively packed presentation is sufficient to sell the

product.
A good presentation can be in the form of attractive packaging and display, conspicuous placement of the product in the display window, etc. A good presentation also includes the interior decoration of the shop and appearance of the article.

Close the Sale ( Get the sales order )

This is the last stage of any sales presentation. The whole exercise becomes useless if the sale does not take place. Therefore, it is the most crucial stage for a salesman. The main aim of the close is to convince the prospect to sign the order form or to place an order immediately rather than in the future.
2 32

Dr. S L Gupta

Excel Books

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, 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

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 selfconfidence and sales, and meet customers expectations Typical steps in the sales process include prospecting and qualifying, pre-approach, 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

Face of Personal Selling BlockChanging I : Basics of Sales Management

1.
Personal Selling Value Sharing : The salespeople share the same values as their

customers and perceive the customers needs with the sole view to serve them better. 2.

Relation Building: A value-based relationship helps the

salespeople to constantly mobilize resources and modify the end product by catering to the specifics of the buyer. This culminates in building long-term relationships. 3.

Role Playing: The salespeople, in personal selling, go far beyond

realizing sales volume. They act as consultants to their prospective customers constantly advising them of new products.

4.

Changing Approach: personal selling comes in a package

containing the inputs of the experts from different areas such as maintenance, installation, trouble shooting, delivery staff, sales personnel, etc. 2 35 Excel Books
Dr. S L Gupta