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Ch-2
Personal Selling
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S L Gupta
Excel Books
Ch-2
Personal Selling
Introduction
Some important aspects of personal selling are: 1. 2. 3. It enhances customers confidence in the seller. It promotes long-term business relations through personal intimacy. It provides a human touch to business transactions.
4. It helps facilitate the seller to understand each customers needs and preferences more clearly. 5. It helps satisfy a customer by modifying the product as per the customers choice and preference. 6. Personal selling followed by personal service helps build long-term relations between the business and the customer. 7. It helps keep up with the competition in the market, based on product customisation as per customers preferences.
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Personal Selling
It is a powerful and effective tool for convincing the customer about the
product. 9. Through personal selling the time lag between introducing a product through
the media and actually selling it is reduced. 10. It provides prospective customers with a better understanding of the product and an interactive opportunity to liaise with the sales personnel.
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Personal Selling
To sell the product Maintain the sales record Executive Function Develop goodwill Achieve sales target
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Excel Books
Ch-2
Personal Selling
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Excel Books
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Personal Selling
Benefits of personal selling 1. 2. 3. 4. 5. 6. 7. Availability of expertise Early access to relevant market information Availability to be flexible regarding processes, timing Faster, shorter contracts Economies of information sharing Lower cost of selling Knowledge of other uses or applications
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Personal Selling
Steps in Personal Selling Successful personal selling calls for an integrated approach devised from the experience of the sales personnel. The approach comprises the steps as shown in the figure here. Each of these steps are further described in brief.
Steps in Personal Selling
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Prospecting
Personal Selling
Prospecting is the process of identifying prospective buyers of the product. A prospect is qualified if he has the authority, need, ability and eligibility to buy. There are different ways to identify prospects. Some of the most frequently used methods are described below: Acquaintance References
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Cold Calling Centre of Influence Method Personal Observation Method Direct Mail or Telephone Method Companys Records Newspapers Retailers Other Methods
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(2nd Edition)
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Excel Books
Ch-2
Pre-approach
Personal Selling
Pre-approach is the second step in the selling process which emphasises that the salesman should know, after identifying the prospect in the prospecting stage, the prospects likes and dislikes, his needs, preferences, habits, nature, behaviour, economic and social status etc. Significance of Pre-Approach 1. Salesman concentrates only on the prospects and not the suspects. 2. Salesman gain all the possible information about the prospect before approaching him. Hence any kind of loose talk or serious mistake can be avoided. 3. He is able to give a sales presentation more efficiently, effectively and with confidence. 4. It does not waste the prospects time and energy since the salesman is already aware of the needs and preferences of the prospect.
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Referrals
Personal Selling
The Ferris Wheel concept, which is aimed at supplying an ongoing list of prospects, is part of world sales record holder Joe Girards customer strategy
Friends and acquaintances P Directories P Trade publications and trade shows P P Telemarketing advertising and P P P P P P P P
Business failure
Customer moves
Death of customer
Cold calling
Customer has only a one-time need for product Cont. Copyright 2010, S L Gupta
Networking
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Excel Books
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Personal Selling
Usage of Prospecting Time Sales force must plan its time in such a manner that maximum time is made business
available for those prospects who are likely to give a large volume of to the company.
step.
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Approaching
Personal Selling
In this stage the prospect and the salesman come in contact with each other
face to face. The salesman has an opportunity to understand and interact with the
prospect in a better way. Salesman should put forward his best efforts to make the best use of this
opportunity in getting the attention of the prospect and to convince him to buy the product. Getting the attention of the prospect and persuading him to buy are the two
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Personal Selling
Approach Adopted by Travelling Salesmen A salesman may directly approach the prospect without any introduction whatsoever and then conduct an interview. Sending an advance mailer explaining his product and its benefits vis--vis other products available. There is no better method of securing an appointment with a prospect than through a reference given by the friend, relative or business associate of the prospect. Another effective way of securing an appointment and interview with the prospect is for salesmen to give away gifts to the prospects before asking for an appointment. Sale letters have proved to be another kind of door opener.
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Successful Approach The following points specify the importance of a successful approach: i. A successful approach enhances the sale and it is thus important for the
running of a business. ii. A failed approach will give an opportunity to the rival company. So a good
approach will go a long way in building good relations with the prospect while a bad approach will not only result in losing business but will also make it easy for a competitor to tap new customers. iii. The approach helps in enlightening the prospect by providing him ample
information about the product, price, competitors product, benefits etc. that he can derive from the product.
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Cont. Copyright 2010, S L Gupta Text & Cases
S L Gupta
Excel Books
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Personal Selling
Key guidelines for successful approach Prior Appointment Timing Command Relaxed Atmosphere Open Mindedness Courtesies Effective Presentation Follow up
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Methods of Approach There are different methods of approaching a prospect and some of the most important ones are given below.
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Cashing in on Brand Name or the Companys Reputation Customer Benefit Approach Innovative Product Opens the Door to the Salesman The Premium Approach (Small Gifts or Novelties) The Stock Approach The Approach of Making the Prospect Feel Important The Survey Approach Interactive Approach
Text & Cases Cont. Copyright 2010, S L Gupta
(2nd Edition)
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Excel Books
Ch-2
Presentation
Personal Selling
Quick presentation creates a good impression. Attractively packaged, decorated and well- organised. Should explain the product with its features and price advantage to the
customer in simple and easy terms. Customer be shown the kind of quality that he is looking for. Helps the salesman to prove the features of the product and emphasise its
genuineness.
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Demonstration
Personal Selling
Demonstration is an exercise to prove the characteristics of the product. It highlights various attributes of the product such as utility, performance,
service and quality. It is only during the demonstration that the customer gets an opportunity to
verify the facts about the product. Demonstration is imperative and essential for a prospect to make a buying
decision.
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The Close
Personal Selling
This is the last stage of any sales presentation. 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. It is also important that through proper planning, prospecting, presentation
and demonstration the salesman should try to capture the attention of the prospect and not let the prospect change his mind.
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Myths about selling Myths of selling: There are various myths about selling process which needs to be cleared for a sales person. 1. 2. 3. 4. 5. 6. Buyers are liars Anyone can be persuaded to buy In buying decision, price is the primary reasons A technique that works well for one person will work for everyone Close the sales as soon as possible The deal can be closed at any price
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Excel Books
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Personal Selling
Various Selling theories SELL Model This is a simple model describing the various actions associated with the word itself. 1. Show features: it is the very first stage; expected to show the features of the product, demonstrating how it works, and showing the results of using the product immediately. 2. Explain advantage: Immediately, after demonstrating the product, explain the advantage possibly related with the features, showing the advantages which ate derived from it. 3. Lead into benefits: Correlate the advantages with the benefits. This is simply highlighting the materialization of those benefits in conducting the set of activities due to having/using the product. 4. Let them talk: Then at the end, let them talk further about the product, its features and those future benefits. If the previous steps are done well, they Cont. Copyright 2010, S L Gupta will talk themselves for the sale.
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SLAID Model
Personal Selling
This is another simple model describing the various actions associated with the word itself, Slaid acronym for sales steps. 1. Show the product: Showing the product in full or showing specific function
is also possible in the beginning, just to trigger the anxiety or curiosity in their mind. It is not a full product demonstration. Demonstration comes a bit latter state in this methods. 2. Listen: A partial demonstration flash triggers a lot of questions, or
estimations or expectations, in case if the product is absolutely new concept. 3. Acknowledge: Your hearing will endorse that you have understood and are
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ready to fulfill their needs. You may be given elaborative further deep information about their objection.
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Identify: Identify the objections, and bring them on a squaring off situation clause, you can
with contents offered by your product. If possible, set up a concession balancing the benefits of new product over the old objections, so that handle the objection and will get the sale. 5. Deliver: Ask the participants to repeat the demonstration to build the
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Excel Books
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Personal Selling
Theories of selling Stimulus response Approach to Selling This is the simplest approach to selling and is shown in Figure. It is up to the salesperson to provide stimuli, of any kind, initially. This is followed by an attempt to obtain a response from the prospective buyer a continued on until a decision is made.
Stimulis response Approach to Selling
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Personal Selling
Mental State Selling This approach utilizes the understanding of the AIDA (Attention, Interest, desire, Action) concept and its utilization in the selling process. It follows the same strategy of the Stimulus response Approach where a script is prepared and followed. What is different here is the timing. The timing refers to the mental state of the prospective buyer, whether at Attention, Interest, Desire, or Action. Simplified tasks that the salesperson can do is as follows:
Mental State Awareness Interest Desire Action Sales Task To get prospective buyers to be interested in the product To get prospective buyers to want the product To get prospective buyers to buy the product To close the sale
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Need satisfaction selling It was critical for salesmen to know what the needs of the customer were.
This was done by various methods, including visit, studies of the customers, questioning and constantly probing.
Need satisfaction Approach to Selling
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Three Phase of a Products/Brands Market 1. 2. 3. Pre-purchase phase Purchase phase Post-purchase phase
Advertising Personal Selling
Pre-purchase
Purchase
Post-purchase
The pre-purchase phase is characterised by the phase where the organisation is trying to convince the targeted customers of the benefits of the product/brand. The purchase phase is the time/duration when the customer is making up his mind to actually buy the product. The post-purchase phase is one when the customer has bought the product and is evaluating the decision. Copyright 2010, S L Gupta
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AIDAS Theory this theory is based on the premise that during a sales presentation, the prospect consciously goes through five different stages: Attention, Interest, Desire, Action and Satisfaction. Attention: The salesperson should attract the prospect to his presentation before he actually goes into the details of the same. Interest: He/she should maintain the interest of the prospects throughout the presentation.
Desire: The next step in the sales process, as per the AIDAS theory, is to create a strong desire in the prospects mind to purchase his product. Action: Once the salesperson has been successful in taking his prospect through the three stages, as discussed above, he should induce the Cont. Copyright 2010, S L Gupta prospects into actually buying the product.
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Personal Selling
Right Set of Circumstances Theory The advocates of this theory opine that all the circumstances, which led to the sales, were appropriate or right for the sales to have taken place. In other words, if the salesperson is successful in securing the prospects attention, maintaining his interest and inducing his desire to buy the product, sales will result. Moreover, if the salesperson is highly skilled, he will take control of the presentation, which would lead to sales.
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Buying Formula Theory The buying formula theory is based on the analysis of the sequence of events that goes on in the buyers mind during the sales presentation. Thus, the theory emphasises on the factors internal to the prospect and the factors which are external, i.e., influence of the salesperson on his prospects decision to buy his product. The theory is based on the presumption that the salesperson will take care of the external factors. The sequence of events in a prospects mind can be represented as
Need Solution Purchase
There are all the chances that a continuous relationship will develop between the prospect and the salesperson. As a result of sales, the satisfaction will also come in the sequence. This sequence can be presented as
Need Solution Purchase Satisfaction
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