2. 07/06/10 2
“A student pursuing management education from IILM-
Graduate School of Management, for example may find
himself or herself placed in a firm as a Sales Manager.
Our goal is to prepare the student for the exciting
challenges related to leading sales organizations in
today’s hyper-competitive global economy”.
IILM-GSM
Importance of this course
Selling & Sales Management
4. 07/06/10
Contents
• The Selling Process
• Stages in Selling Process
– Prospecting
– Pre-Approach before Selling
– Approach to the Customer
– Need Identification
– Sales Presentation
– Handling Customer Objections
– Closing the Sale
– Follow-up Action
• Case Study: The Selling Process in Asian Paints
IILM-GSM
Selling & Sales Management Selling Process
5. 07/06/10
Stages in the Selling Process
Prospecting
Sales
Presentation
Handling
Customer
Objections
Closing the
Sale
Follow up
action
Need
Identification
Approach to
the
customer
Pre-
approach
before the
interview
IILM-GSM
Selling & Sales Management Selling Process
6. 07/06/10
Prospecting
IILM-GSM
Selling & Sales Management Selling Process
• Prospecting involves identifying the potential customers
for a particular product or service.
• A prospect is a MAD buyer, someone with Money to
spend, the Authority to buy what you are selling, and
Desire to buy it. (Although the buyer's desire might not
be specifically for your product, at least she has a
desire).
• The process of finding prospects involves several steps.
The first step is to identify a lead, or someone who
appears to have the characteristics of a prospect.
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Process of Prospecting
Identify and define prospects
Search for sources of potential
accounts
Qualify the prospects from the
suspects
IILM-GSM
Selling & Sales Management Selling Process
9. 07/06/10
Methods of Prospecting
Cold canvassing
Endless chain customer referral
Prospect pool
Centers of influence
Non competing sales force
Observation
Friends and acquaintances
Lists and directories
Direct mail
Telemarketing
Trade shows and demonstrations
IILM-GSM
Selling & Sales Management Selling Process
10. 07/06/10
Methods of Prospecting
Cold Canvassing
It is method in which the sales person goes from door to door in an
identified area and tries to find out prospects. cold canvassing
involves face to face interviews with people in many instances ,it
may result in identifying the buyers needs ,making presentation
and doing immediate sale. however, cold calling is time consuming
process and one has to spend considerable time in qualifying the
customers as the sales representative makes the cold call without
much information about them.
It is also useful in business to business for standard item
like copiers, calculators and faxes. Insurance agents and
ready made garment reseller also do cold calling.
IILM-GSM
Selling & Sales Management Selling Process
11. 07/06/10
Methods of Prospecting
Endless Chain Customer Referral
It is another popular method in which each customer is
requested to give a list of names who might be interested
in the product It does not take a long time.
To develop a lengthy list of prospects, this method of
prospecting is particularly seen in the case of insurance
and securities. In Birla Sun Life the insurance advisor asks
for five names who are known to customer and might be
interested in the insurance products .Eureka Forbes also
use this method.
IILM-GSM
Selling & Sales Management Selling Process
12. 07/06/10
Methods of Prospecting
Prospects Pool
It is group of names gathered from various sources like a
telephone directory or a list . A prospect pool is created from
four main sources. they are:
Leads: people and organizations sales people know nothing or. very
little about .
Referrals: people or organizations sales people know very little
about other than what they learned from the referrals.
Orphans: Orphans customers whose sales person has left the
company. Company records are the only source of information about
these past customers.
Customers: the most important prospects for future sales.
IILM-GSM
Selling & Sales Management Selling Process
13. 07/06/10
Methods of Prospecting
Centers of Influence
These are the people who, because of their position,
responsibility, accomplishment or personality, exercise more
than ordinary influence .
These kind of people are found in trade association, trade
shows seminars and many business related social events.
In a typical buying process they are the innovators who set
trends in the society for others to follow them.
Film personalities and the celebrities are the centre of influence
who can influence purchasing patterns and serve as potential
source of prospects.
IILM-GSM
Selling & Sales Management Selling Process
14. 07/06/10
Methods of Prospecting
Non Competing Sales Force
Sales people of non competing products are rich source of
prospects names.
They have the information about new business openings,
names of authorities who make decisions and changes in
personnel in the purchase department, which can be
collected by sales people.
IILM-GSM
Selling & Sales Management Selling Process
15. 07/06/10
Methods of Prospecting
Observation
In this method the sales person looks around for the type
of prospects that he or she needs.
In the case of EPBAX sellers, they look for construction
site and newly coming up office spaces and then prepare
a list of prospects.
Many sales people use their sales associate called a’ bird
dog’ who make arrangements for their presentation to the
prospects.
IILM-GSM
Selling & Sales Management Selling Process
16. 07/06/10
Methods of Prospecting
Friends and Acquaintances
They constitute and rich source of prospects that he or
she needs.
IILM-GSM
Selling & Sales Management Selling Process
17. 07/06/10
Pre-Approach
IILM-GSM
Selling & Sales Management Selling Process
• During the pre-approach stage, the salesperson tries to
learn everything he can about the account.
• Perhaps using contact management software, the
account's history with the firm can be explored and
salesperson can tell what the customer needs.
• Or, using the Internet, the salesperson can examine the
account's financial strength, future strategies and the
like.
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Approach
IILM-GSM
Selling & Sales Management Selling Process
• The approach step can be difficult because at this stage
the salesperson must ask the buyer to commit to a
meeting without really knowing what she needs or
wants.
• To obtain this commitment, the salesperson must make
an opening statement that gets the buyer's attention.
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Approach
IILM-GSM
Selling & Sales Management Selling Process
• Example, a salesperson might say something like,
“Hi, my name is Kumar from Microsoft, and our firm
is helping companies increase sales by upwards of
20 percent. May I have few minutes to explore
whether Microsoft could do that for you?”
• This statement is good because the seller is focusing on
the potential of increasing sales.
• Alternatively, if the seller said, “Hi, my name is Kumar,
and I'd like to sell you CRM software.” the focus is
entirely on the seller's goal.
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Need Identification
IILM-GSM
Selling & Sales Management Selling Process
• The next step is need identification step, the step in
which the salespeople confirms that the prospect is a
MAD one.
• There are few techniques in order to figure out the
customer's needs, like SPIN
• The following is a series of questions that might be
asked using the SPIN:
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Need Identification: SPIN Technique
IILM-GSM
Selling & Sales Management Selling Process
1. Seller (Situation Question): How far do you have to go to make copies?
Buyer: It is about a 10 minute drive.
2. Seller (Problem Question): Do you ever encounter problems because you
are gone from the office so long?
Buyer: Yes, sometimes customers call and I am not there to answer.
3. Seller (Implication Question): Have you ever lost a customer because you
weren't there when they called?
Buyer: Yes, I once lost a pretty good customer account that way.
4. Seller (Needs-Payoff Question): So a copier in your office, would that
eliminate that problem?
Buyer: Yes, I really need to get one for my office.
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Presentation
IILM-GSM
Selling & Sales Management Selling Process
• During the presentation, the salesperson describes the
product and how it meets the buyer's needs. In case of a
product with several features, the seller focuses on only
those features that buyer needs.
• One approach to presentation is to string together a
series of FEBAs or Statements of Feature, Evidence,
Benefit and Agreement.
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Presentation
IILM-GSM
Selling & Sales Management Selling Process
A pharmaceutical salespeople might say something like,
• Feature: “Placron reduces cholesterol to safe levels.”
• Evidence: “As you can see in this clinical study, the reduction
has been well under 200 in about 85% of all patients who did
not respond to competitive drugs.”
• Benefit: “So as you noted, you would have fewer patients
with difficulty lowering their cholesterol”. Describing how a
feature satisfies a need is a benefit.
• Agreement: “Is this the type of cholesterol-reducing program
you are looking for.” Finally, the salespeople asks the
customer if the product meets the need, gaining agreement.
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Objection Handling
IILM-GSM
Selling & Sales Management Selling Process
• Objections are reasons a buyer offers to not buy your
product.
• They can occur anytime during the sales call, not
necessarily during or immediately after the presentation.
For example, a salespeople might hear an
objection as soon as introductions are made:
“You are with that company? Oh, you guys are
terrible- I hate your products.”
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Handling Customer Objections
• Start with your highest expectations
• Avoid conceding first
• BE sure the customer understands the value of a concession
• Make concessions in small amounts
• Admit mistakes and make corrections willingly
• BE prepared to withdraw a concession
• Avoid ‘split the difference’ strategy
• Do not advertise willingness to concede
Suggested by SMITH
IILM-GSM
Selling & Sales Management Selling Process
26. 07/06/10
Methods of Handling Customer Objections
Superior feature method
Yes…But method
Pass out method
Comparison method
Direct denial method
Another angle method
Narrative method
Testimonial method
Question or WHY method
IILM-GSM
Selling & Sales Management Selling Process
27. 07/06/10
Closing the Sale
IILM-GSM
Selling & Sales Management Selling Process
• Closing a sale should be natural part of the selling
process and no surprise to the buyer.
• At this point, the buyer has already said several times
that the features of the product meet the stated needs, a
budget has already been discussed, an implementation
schedule for the product's delivery has been developed.
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Follow-Ups
IILM-GSM
Selling & Sales Management Selling Process
• Following the close and assuming a sale has been
made, the customer has to accept delivery of the
product.
• The salesperson's job may then be to ensure that the
customer has a good experience with the product.
• This responsibility might include training the buyer on how
the products work, how to obtain service, and any policies
or procedures of which the buyer should be aware.
Editor's Notes
To arm or prepare in advance of a conflict
The part of the arm between the wrist and the elbow.
Aztek software is a company with operation in all major cities of India. They make software for sophisticated customers ,and their product help integrating current supply chain management systems in management system in organizations with a web based customer relation ship management program .the solution sold by them cost not less than a million rupees to the client ,and software ,application has to be customized with existing client systems .
Like many other big ticket selling companies, they normally target the CEOs of companies for their presentation. Mr Ratan Halder, the CEO of Aztek ,makes it point to call a meeting fifteen days before the sales presentation ask the staff to prepare list of questions they are likely to face during the presentation ,and conduct brain storming sessions with the filed and corporate officer to develops suitable selling strategies .in crucial cases where the client is large corporate and the deal can also significantly contribute towards getting more business from the same client or getting a referral for their sister business concern, Mr halder makes it appoint to present personally during the presentation and handle a few question related to price, installation and on site servicing which sales staff can not decide themselves. This process also helps to close the sale promptly and also satisfy the queries raised by the customer during the presentation. mr halder is also of the opinion that his presence makes the CEO of the buyer of the buyer company feels that the sales success of aztecc is largely due to scientific preparation attention to details and suggested strategy by field staff ,and creative approach followed during the presentation.
EPBAX..electronic private branch automatic exchange
Bird dog is a kind of hunting dog..lokk for the prospects all the time
Payoff menas act or occasion of receiving money or material gain…
i. Eknown as HOT Button in B2B selling..when dealing with complex
Liver is able to regulate C level…if it exceeds then a problem..
This is an overall process to handle objections. See the objection-handling page for a list of methods for the detail of handling objections.
1. Listen
Stop! Do not try to jump in at the beginning - this may cause further objection. When you interrupt them, you are objecting to their objection. If you refuse to listen, then their next steps may well be towards the door.
Use active listening methods, nodding and physically showing interest.
They are trying to tell you something that will help you sell to them, which is a gift from them to you. If you do not listen, then their next step may well be towards the door.
2. Question
As appropriate, ask some questions. This not only shows you are interested in them, but it also gives you more information with which to make the sale. As you question them, watch carefully for body language that gives you more information about what they are thinking and feeling.
Remember that this is not an interrogation, and that giving them the 'third degree' will turn them off. So keep your questions light and relevant.
You might also tip the bucket at this time, asking them if there are any more concerns (=objections) that they have, and which, if you can resolve them, you might gain a close.
It is not always necessary to ask questions. Be deliberate about what you are doing if you do.
3. Think
Now before you dive into objection-handling, think! What methods will work best with them? Should you take a direct and confrontational approach or should you use the soft-soap to finesse the situation? Or maybe you should put it off to another day (but only if you can be sure that you can return to the selling situation).
Thinking is a good thing where you are adding a little pause into the proceedings, thus demonstrating how you are taking their objection seriously.
4. Handle
This stage may sometimes only be a few seconds after they object or it may require more time in the previous three steps. Now, when you are ready, use the objection-handling method that you believe will work best. Or make up your own. You are under no obligation to try and force-fit a method where it is unlikely to work.
5. Check
Finally, check to find out whether your objection-handling worked! Ask if you have answered their question. Ask if there are any more concerns. As necessary, handle outstanding objections.
Then go for the close.
Superior…emphaisis on USP…or UVP…any aspect of an object that differentiate it from similar objects.
Yes---this is ancient method in which SP agrees with the objection at the beginning and slowly makes an effort to remove the objections by handling of the arguments.
Passout…SP not pay any attention to the customer objection and expresses neutral opinions..when objection is baseless, it is suggested to pass them off without attending to them..customer may feel neglected..SP may loose opportunities
Direct denial….SP rejects the customer objection outright..outright means on the spot... He turns down the objection by calling them absolutely wrong, and builds up his presentation. This is mostly applicable to the seller’s market.
Another angle….SP tries to make a positive impact on the customer by enumerating the numbers of advantages that outnumber the disadvantages. Try to have another angle impact menas change customer mind from negative angle to positive angle.
Narrative….SP uses the story to remove customer objection…like when u attened Mela or Job Fair..u narrate them to ur friends.
SP listen to the objection systematically and sympathatically and then gives his response in the form of story that would appeal the customer..make a positive impact.
Testimonial….SP presents the sales message by referring to celebraties and the person of importance as the users of the product….most of the SP use this technique..a statement in support of a particular tructh, fact..written recommendation from a celebrity or satisfied customer affirming the performance..when I visit Fortis hospital sec-62, at the main gate I saw many testimonials regarding the services at Fortis.
Question..in this SP asks questions agagin and again without any break to the customer against his objections and tries to get suitable answers to those objections from …
