This document provides an overview of the personal selling process and key concepts in sales psychology. It discusses buyer behavior models and the different stages in the buying process for household and business customers. It also outlines important preparation activities for salespeople like prospecting, qualifying leads, gathering information on prospects, and planning sales calls. The document then explains the different steps in the sales process from the initial approach and presentation to overcoming objections, closing the sale, follow-up, and negotiation. It provides examples of techniques that can be used at each step to improve sales effectiveness.

1. SDM-Ch.2 1
Chapter 2
Personal Selling:
Preparation and Process

2. SDM-Ch.2 2
Psychology in Selling
• If a sales person makes a presentation, the
prospect may or may not buy
• The above “buyer behaviour model” does not tell
us the reasons of buying or not buying
• To understand the psychological aspects of
selling or buying, salespeople should study
consumer or buyer behaviour, including buying
process and situations
Stimulus
(Sales Presentation)
Response
(buy or no buy)
Buyer’s decision
making process

3. SDM-Ch.2 3
Buying Process of Consumers and Business Buyers
Five – stage model for household
customers
Eight – stage model for business
buyers
1. Problem / need recognition 1. Problem / need recognition
2. Characteristics and quantity
determination
3. Specification development
2. Information search / collection 4. Supplier search and qualification
5. Obtain and analyse supplier
proposals
3. Evaluate alternatives 6. Evaluation and selection of
suppliers
4. Purchase decision 7. Selection of purchase order routine
5. Post – purchase behaviour 8. Performance feedback and post-
purchase evaluation

4. SDM-Ch.2 4
Buying Situations Faced By
Household customers Business Buyers
• Routine decision-making • New task / New purchase
• Limited decision-making • Modified re-buy / change in
supplier
• Extensive decision-making • Straight re-buy / Repeat
purchase
• Buying process and situations differ for household
consumers and business buyers.
• Consumers / Buyers may skip or reverse some stages in
buying process. A consumer buying toothpaste

5. SDM-Ch.2 5
Knowledge of Sales and Sales-related
Marketing Policies
Sales Knowledge Marketing Policies
• Company knowledge • Pricing and Payment policies
• Product knowledge • Product policies
• Customer knowledge • Distribution policies
• Competitor knowledge • Promotional policies
Major reasons for giving above information / knowledge
through training programmers to salespeople are:
• increase their self-confidence
• Meet customers’ expectations
• Increase sales
• Overcome competition
•Better service to the prospect

6. SDM-Ch.2 6
The Sales Process
As a part of selling activities, if salespeople follow the steps
or phases shown below, their chances of success are far
better.
Prospecting &
Qualifying
Pre-approach /
Pre-call planning
Approach
Presentation &
Demonstration
Follow-up &
Service
Trail close /
Closing the sale
Overcoming
Objections
• The sequence of above steps may change to meet the
sales situation in hand.
• Some of the above steps may not be applicable for selling
to the trade
• We now discuss application of above steps to industrial
selling

7. SDM-Ch.2 7
Prospecting
• It is identifying or finding prospects i.e. prospective or
potential customers.
• Methods of prospecting or sales lead generation are:
(1) referrals from existing customers, (2) company sources
(website, ads., tradeshow, tele-prospecting), (3) external
sources (suppliers, intermediaries, trade associations), (4)
salespersons’ networking, (5) industrial directories, (6)
standard industrial directories (SID) system.
Qualifying
• Companies qualify sales leads by contacting them by mail
or phone to find their interests (or needs) and financial
capacity.
• Leads are categorized as: Hot, Warm, and Cool

8. SDM-Ch.2 8
Preapproach
• Information gathering about the prospect.
Sources of information: the Internet, industrial
directories, government publications,
intermediaries, etc.
• Precall planning
• Setting call objectives
• Tentative planning of sales strategy: which
products, features and benefits may meet the
customer needs

9. SDM-Ch.2 9
Approach
• Make an appointment to meet the prospect
• Make favorable first impression
• Select an approach technique:
• Introductory
• Customer benefit
• Product
• Question
• Praise
• The approach takes a few minutes of a call,
but it can make or break a sale

10. SDM-Ch.2 10
Approach Technique Commonly Used
Introductory
Approach
The salesperson states his/her
name and the company’s name
“Good morning, Mr. Dasgupta, I
am Krishna kumar from crompto
greaves. Friendly with
handshake
Customer
benefit
The salesperson should
identify one major buying
motive that generally a
prospect has and appeal to it
By converting your existence
insurance policy to our new plan,
you can get Rs. 200000 more
coverage than existence
Product This techniques is useful if the
product is new, unique, or
colorful.
The sales person hands over the
new bottle of Pepsi to the retailer
and waits for the retailer to begin
the conversation
Question The salesperson asks a
question to start a two-way
communication or to make the
prospect curious about product
May I help you? What benefits
you want most in a new washing
machine?
Praise An indirect praise conveyed
sincerely and subtly can have a
positive impact on the prospect
Your office is so well designed
and comfortable that I would
remember it when we design our

11. SDM-Ch.2 11
Presentation and Demonstration
There are four components:
• Understanding the buyer’s needs
• Knowing sales presentation methods / strategies
• Developing an effective presentation
• Using demonstration as a tool for selling
We will examine each of the above points

12. SDM-Ch.2 12
Understanding the buyer’s needs
• Firms and consumers buy products / services to
satisfy needs
• To understand buyer’s needs, ask questions and
listen
• In business situations, problem identification and
impact questions are important
• Have you experienced any problems on quality
and delivery from the existing supplies?
• What impact the quality and delivery problems
will have on your costs and customer satisfaction?

13. SDM-Ch.2 13
Knowing 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.
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.

14. SDM-Ch.2 14
Sales Presentation Methods (Continued)
• 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
Product: Feature (Special design), Advantages (Low voltage),
Benefit (Our motor can work even in low voltage condition)
• Consultative selling method / Problem-solving
approach
• Salespeople use cross-functional expertise
• Firms adopt team selling approach
• It is used by software / consulting firms

15. SDM-Ch.2 15
Developing an Effective Presentation
Some of the guidelines are:
• Plan the sales call
• Adopt presentation to the situation and person
• Communicate the benefits of the purchase
• Present relevant and limited information at a
time
• Use the prospect’s language
• Make the presentation convincing – give
evidence
• Use technology like multi-media presentation

16. SDM-Ch.2 16
Using Demonstration
• Sales presentation can be improved by
demonstration
• Demonstration is one of the important selling
tools. 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

17. SDM-Ch.2 17
Overcoming Sales Objections / Resistances
• Objections take place during presentations / when
the order is asked
• Two types of sales objections:
• Psychological / hidden
• Logical (real or practical)
• Methods for handling and overcoming
objections:
(i) For Psychological objections: ask questions.
(ii) For logical objections: (a) ask questions, (b) turn
an objection into a benefit, (c) deny objections
tactfully, (d) third-party certificate, (e)
compensation.

18. SDM-Ch.2 18
Trial close and Closing the sale
• Trial close checks the attitude or opinion of the
prospect, before closing the sale (or asking for
the order)
• If the response to trial close question is
favorable, then the salesperson should close the
sale
• Some of the techniques used for closing the
sale are: (a) alternative-choice, (b) minor points,
(c) assumptive, (d) summary-of-benefits, (e) T-
account, (f) special-offer, (g) probability, and (h)
negotiation

19. SDM-Ch.2 19
Follow-up and Service
• Necessary for customer satisfaction
• Successful salespeople follow-up in different
ways: For example,
• Check order details
• Follow through delivery schedule
• Visit when the product is delivered
• Build long-term relationship
• Arrange warranty service

20. SDM-Ch.2 20
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, (c) purpose
• 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