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Lect # 5-Personal Selling Skills.pptx

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Selling process
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Lect # 5-Personal Selling Skills.pptx

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  3. 3. Introduction • Personal selling should be an extension of the marketing concept. • This means that the salesperson should identify customer needs and help customer by selecting from such products that best fit the customer’s requirements. 3
  4. 4. The customer-oriented selling is: • To help customers to make satisfactory purchase decisions. • Helping customers to evaluate their needs and offering products that will satisfy those needs. 4
  5. 5. How salesperson should satisfy customers needs? • Describing products accurately in detail. • Avoiding misleading approaches. • Avoiding the use of high-pressure sales techniques. 5 High pressure techniques: Overstating performance facts, lying to clients, or making unreasonable promises are all high-pressure sales techniques.
  6. 6. • In order to adopt customer oriented selling, companies need to develop a culture that should understanding customers and creating value for them. 6
  7. 7. • It includes that customer are satisfied with salesperson behavior for behaving ethically. • In addition, companies should include ethics in sales training courses for their sales teams. 7
  8. 8. In order to develop personal selling skills, it is useful to: • Develop complete knowledge of company’s products and and customers. • Having good communication skills. • Expertise to solve problems. • Capable to understand and satisfy the buyer’s needs. • Ability in ensuring the reliable and intime delivery of orders. 8
  9. 9. Opening • Buyers expect salespeople to be well-organized in their personal appearance and behavior. • Untidy hair and a sloppy (careless) manner of dress can ruin the appearance. • Salespeople should open with a smile, a firm handshake and if they are not well known to the buyer, introduce themselves and the company they represent. 9
  10. 10. • Common courtesies should be followed. For example, they should wait for the buyer to indicate that they can sit down or, at least, ask the buyer if they may sit down. 10
  11. 11. • Opening remarks are important since they set the tone for the rest of the sales interview. • Normally they should be business-related; they should ensure the buyer that the salesperson is not wasting his time. 11
  12. 12. • Attention to detail is important, such as holding one’s briefcase in the left hand so that the right can be used for the handshake, removes the possibility of an awkward moment when a briefcase is transferred from right to left as the buyer extends their hand in greeting. 12
  13. 13. • Incase the buyer is well known and is willing to talk about social matters, the salesperson will obviously follow. • This can develop close rapport with the buyer, but the salesperson must be aware of the reason for being there and not be diverted from talking business. 13
  14. 14. Opening remarks might be: • Industrial salesperson: We have helped several companies in your kind of business to achieve huge savings by using our stock control procedures. What methods do you use at present to control stock? 14
  15. 15. Retail salesperson: • “I think you are interested in our stereo equipment. What kind of system do you have in mind” ? • The use of the internet can help to create favorable first impressions and can help in developing knowledge about the customers company and industry. 15
  16. 16. Need & Problem Identification • Most salespeople have a range of products to sell. A car salesperson has many models from small economy cars to super luxury top-of-the-line models. • The computer salesperson will have several systems to suit the needs and resources of different customers. 16
  17. 17. The seller’s first objective will be to discover the needs of the customer. • Before a car salesperson can sell a car, they need to understand the customer’s circumstances such as: What size of car is required? Is the customer looking for high fuel economy or performance? With a boot (sedan) or a hatchback model? What kind of price range is being considered? 17
  18. 18. • Having obtained this information, the salesperson is able to sell the model best suited to the needs of the buyer. • Similarly, a computer salesperson may carry out a survey of customer requirements prior to suggesting an appropriate computer model. 18
  19. 19. • In order to encourage the buyer to discuss their needs, salespeople tend to use ‘open ended’ rather than ‘close ended’ questions. • An open question is one that requires more than a one-word or one-phrase answer. 19
  20. 20. The Presentation & Demonstration • Once the needs of the buyer have been identified, the presentation follows according the need of the customer. • Having fully discussed what the customer wants, the salesperson knows which product benefits to highlight. 20
  21. 21. • The term ‘presentation’ should not mislead the salesperson into believing that they alone should do all the talking. 21
  22. 22. • Salesperson should also ask questions to confirm what kind of benefits the buyer is looking for. • After explaining a benefit, it is healthy practice to ask the buyer, ‘Is this the kind of thing you are looking for?’ 22
  23. 23. • In many sales situations there is risk for the buyer, no matter what benefits the salesperson discusses, the buyer may be reluctant to change from the present supplier due to certain reasons. • With the new firm delivery may not be timely or the new model may be unreliable. 23
  24. 24. • Sometimes the buyer does not offer much resistance, but somehow does not buy; a likely reason is that the buyer plays safe, sticking to the present supplier in order to reduce the risk should problems occur. 24
  25. 25. In such situation how, can a salesperson reduce risk? There are four major ways to reduce the risk: (a) Reference selling. (b) Demonstrations or Display. (c) Guarantees. (d) Trial orders. 25 Details
  26. 26. Reference Selling • Reference selling involves the use of satisfied customers to convince the buyer of the efficiency of the product. • A list of satisfied customers, should be prepared by the salesperson before meeting the buyer. 26
  27. 27. • Letters from satisfied customers should also be kept and used in the sales presentation in order to build confidence. • This technique can be highly effective in selling, while shifting a buyer to salesperson’s products. 27
  28. 28. Demonstrations • Chinese proverb: “Tell me and I’ll forget; show me and I may remember; involve me and I’ll understand”. • Demonstrations also reduce risk because they prove the benefits of the product, just like a car salespeople will allow customers to test drive cars. 28
  29. 29. Guarantees • Guarantees of product reliability and after- sales service, including delivery supported by penalty clauses can build confidence towards the salesperson’s claims and reducing the buyers’ fear in case something go wrong. 29
  30. 30. Trial orders • The final strategy for risk reduction is for salespeople to encourage trial orders, even though they may be uneconomical for the company. • Buyers who normally purchase supplies from one supplier may realize that change in supplier might involves unnecessary risk. 30
  31. 31. • It may be one of the ways for a new supplier to break through this barrier, that is to secure a small order which can prove the company’s capability to provide consistently high-quality products. • The confidence may lead to a higher percentage of the customer’s business in the longer term. 31
  32. 32. Dealing with Objections • Objections are the concerns or questions raised by the buyer. • Some objections are an due to confusion, doubt or disagreement. • Objections should not always be viewed with disappointment by salespeople. 32
  33. 33. • Objections highlight the issues that are important to the buyer. • For example, when training salespeople, Ford motors makes it a point that customers’ objections are indications to what is really going on their minds. 33
  34. 34. • The salesperson can guide buyers to the firm’s website where frequently asked questions and references may be found. • This may improve the chances of a successful sale. 34
  35. 35. Listen attentively and do not interrupt • The correct method is to listen carefully, attentively and respectfully. • The buyer will appreciate it that the salesperson is serious to understand and resolve the problem. 35
  36. 36. Agree and counter • The salesperson first agrees that what the buyer is saying is sensible and reasonable, then putting forward an alternative point of view. • By this way it will not create irritation and will help develop sense of agreement rather than conflict. 36
  37. 37. For example: Buyer: The problem with your tractor is that it costs more than your competition. Salesperson: Yes, the initial cost of the tractor is a little higher than competitors’ models, but over the lifetime of the machine, our tractor is far more economical and efficient. 37
  38. 38. There are also other professional approaches: ‘I can appreciate your concern that the machine is more expensive than the competition. However, I would like to share with you that….. ’ 38
  39. 39. ‘Customer XYZ made the same comment a year ago. I can assure you that he is highly delighted with his decision to purchase because the cost savings over the lifetime the machine is more to offset the initial difference.’ 39
  40. 40. The use of the reference selling technique can be a powerful to counter to objection. For example, salespeople of media space in newspapers that are given away free to the public often face the following objection: 40
  41. 41. Buyer (car dealer): Your newspaper is given away free. Most of the people throw it away without even reading it. Salesperson: I can understand your concern. However, a lot of people do read it to find out about second-hand cars available in the market. Mr. John of Super Motors has been advertising with us for two years and he is delighted with the results. 41
  42. 42. The straight denial • This method must be handled with a great deal of care since the danger is that it will result in the kind of hostility that the salesperson is trying to avoid. 42
  43. 43. For example: Buyer: I expect that this upholstery (covers of the car seats) will be difficult to clean. Salesperson: No, Mr. Buyer, absolutely not. This material is made from a newly developed synthetic fiber that resists stains and allows marks to be removed simply by using soap, water and a clean cloth. 43
  44. 44. Question and objection • Sometimes an objection is raised which is so general and is difficult to respond. For example, a customer might say they do not like the appearance of the product, or that the product is not of good quality. 44
  45. 45. • In this situation the salesperson should question the nature of the objection in order to clarify the problem. Sometimes this results in a major objection being minimized which can easily be dealt with. 45
  46. 46. Example Buyer: I’m sorry but I don’t like the look of that car. Salesperson: Could you tell me exactly what it is that you don’t like in the look of the car? Buyer: I don’t like the design on the seat covers. Salesperson: Well, in fact this model can be supplied in a number of different upholstery designs. Let us have a look at the catalogue to see if there is a pattern of your liking? 46
  47. 47. Negotiation • Sellers may negotiate price, credit terms and delivery times lines etc. • The deal in the process will depend on the negotiating skills of the respective parties. 47
  48. 48. Closing The Sales • Some salespeople believe that an effective presentation should lead the buyer to ask for the product straightaway without the seller needing to close the sale. 48
  49. 49. • Sometimes salespeople are reluctant to close a sale? because most people fear rejection. • Some buyers will certainly respond negatively but be resilient (quick to recover) and trust your selling skills. 49
  50. 50. Example Closing the sales may be as following : ‘Well, Mr. Smith, we have agreed that the ZDXL4 car model meets your requirements of low noise, high productivity and driver comfort at a cost which you can afford. May I go ahead and place an order for this model? 50
  51. 51. The concession close The salesperson should keep one concession in hand to use as the final push toward agreement: ‘If you are willing to place an order now, I’m willing to offer an extra 2.5 per cent discount.’ 51
  52. 52. Follow-Up • The follow-up call can also be used to provide reassurance that the purchase was the right one. • Sometimes many customers are not sure that they have made the right choice. 52
  53. 53. Follow-Up (cont.) • Traditionally it was done with a telephone call, a letter thanking and asking if the product was meeting expectations. • Or the salesperson ‘dropping by’ to see any problems. • Today, email is frequently used, particularly in business-to-business situations for follow-up. 53
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