Personal selling
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Personal selling

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Personal selling

Personal selling

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Personal selling Presentation Transcript

  • 1. www.studygalaxy.com
  • 2. 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
  • 3. 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).
  • 4. 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
  • 5. Types of Communication Promotion Personal Selling AdvertisingPublic Relations Product Place Price Sales Promotion Direct Marketing
  • 6. Personal selling v advertising % of Promotional Effort Complex / Expensive GoodsSimple / Inexpensive Goods Relative importance of the two main elements in the promotional mix Personal Selling Advertising
  • 7. B2C transactions where personal selling is…. Very important Motor vehicles Fitted kitchens Double glazing Security systems Conservatories Shopping and speciality goods Unimportant Food Grocery Clothing CDs/DVDs Books i.e. Convenience goods
  • 8. 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
  • 9. 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
  • 10. 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
  • 11. 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
  • 12. Types of salespeople Order takers - primary responsibility to respond to customer orders Customer service providers - provide personal assistance to existing customers Missionaries - primary task is to increase business with information and advice New business salespeople - aim to win new business Organisation sellers - build up and maintain relationships with major customers
  • 13. Personal selling skills Interpersonal qualities Adaptability Self motivation Problem solving capabilities Product knowledge Customer knowledge Presentation skills
  • 14. Sales reps require information on… The product Customers Territory Techniques of selling Promotional material His/her own organisation Targets
  • 15. 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
  • 16. Sales representatives - typical tasks
  • 17. 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
  • 18. 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.
  • 19. 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 buyer’s commitment to purchase. The follow-up: to make sure the buyer is satisfied.
  • 20. The Sales Process Prospecting/ Qualifying Preapproach/ Planning Presentation Handling Objections Closing the Sale Approach Follow up IdentifyingNeeds IdentifyingNeeds
  • 21. 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.
  • 22. Sources of prospects
  • 23. Personal selling process (2) Preparation and planning  It is to look for: • Customer’s buying criteria and needs • Customer organisation’s purchasing structures • The application of the product and the features and benefits required.
  • 24. 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
  • 25. Personal selling process (4) -Sales presentation  It is to show how the product offering and the customer’s needs match. • Stimulus response. • Formula selling. • Need satisfaction.
  • 26. 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 prospect’s 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.
  • 27. Sales Presentation Methods contd.. Need – satisfaction method • Interactive sales presentation • First find prospect’s needs, by asking questions and listening • Use FAB approach: Features, Advantages, Benefits • Effective method, as it focuses on customers
  • 28. Using Demonstration Sales presentation can be improved by demonstration 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 buyer’s purchasing interest • Helps to find specific benefits of the prospect • The prospect can experience the benefit
  • 29. Personal selling process (5) Handling typical objections  Typical objections:  Your: company, product, service, pricing;  You; you are not competitive enough  I can’t afford it; I don’t need it • Ask the objection back. • Agree and counter. • Boomerang. • Feel, felt, found. • Denial.
  • 30. 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.
  • 31. 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.
  • 32. Personal selling process (8) Follow-up and account management The role of personal contact
  • 33. Excel Books2– 33 Block I : Basics of Sales Management Personal Selling Dr. S L Gupta •Personal Selling and Distribution • Sales force has a significant role to play role in coordinating, liaisoning and advocating the product’s 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
  • 34. Excel Books2– 34 Block I : Basics of Sales Management Personal Selling Dr. S L Gupta Presentation and Demonstration •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.
  • 35. 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
  • 36. 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 self- confidence 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
  • 37. Excel Books2– 37 Block I : Basics of Sales Management Personal Selling Dr. S L Gupta Changing Face of Personal Selling 1. Value Sharing: The salespeople share the same values as their customers and perceive the customer’s 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.