To understand psychology in selling, buying decision process and buying situations To learn communication skills, sales knowledge, and sales related marketing policies To understand personal selling process To learn about negotiation

1. Chapter
2
Personal Selling:
Preparation and Process
Prepared By:
Mr. Nishant Agrawal

2. Learning
Objectives
• To understand psychology in selling, buying decision
process and buying situations
• To learn communication skills, sales knowledge, and
sales related marketing policies
• To understand personal selling process
• To learn about negotiation

3. Psychology in
Selling
• If a sales person makes a presentation, the prospect may or
may not buy
• The above “buyer behavior 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 behavior,
including buying process and situations
Sales Presentation
Response
(buy or no buy)
Buyer’s decision
making process

4. Buyer Decision Process
Need
recognition
Need
recognition
Information
search
Information
search
Evaluation of
alternatives
Evaluation of
alternatives
Purchase
decision
Purchase
decision
Postpurchase
behavior
Postpurchase
behavior

5. 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
3. Specification development
2. Information search / collection
 Low involvement
 High involvement
4. Supplier search and qualification
5. Obtain and analyze supplier
proposals
3. Evaluate alternatives 6. Evaluation and selection of
suppliers
4. Purchase decision
 Attitude of others
 Unanticipated situational
7. Selection of purchase order routine
5. Post – purchase behaviour 8. Performance feedback and post-
purchase evaluation

6. Buying Situations Faced
Household customers Business Buyers
• Routine decision-making
(Do not go thought all five step)
Ex. Milk, bread, grocery etc)
• New task / New purchase
Ex. CRM Software
• Limited decision-making
(Seek for more information)
•Ex. T.V
• Modified rebuy / change in
supplier
• Extensive decision-making
(Highly involved)
Ex. Home, car, property
• Straight rebuy / Repeat purchase

7. Sale Knowledge and Sale Related Marketing Policy
Sales Knowledge Marketing Policies
• Company knowledge (Growth, policy) • Pricing and Payment policies
• Product knowledge • Product policies
• Customer knowledge • Distribution policies
• Competitor knowledge (SWOT) • Promotional policies
Major reasons for giving above information / knowledge through training
programmes to salespeople are:
• increase their self-confidence
• Meet customers’ expectations
• Increase sales
• Overcome competition

8. 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
Preapproach /
Precall 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.
1 2 & 3
456

9. Selling Process
• Prospecting: Identifying likely new
customers
– Leads
– Developing lists of Potential Customers
Pre-approach (Qualifying)
Finding and analyzing
information about prospects
Evaluating a prospect’s
potential

10. Prospecting
• It is an individual , a family who needs the product or service a
salesperson is selling and has ability to buy
• Methods of prospecting or sales lead generation
(1) Referrals from existing customers
(2) Company sources (website, advertisement)
(3) External sources (suppliers, intermediaries, etc),
(4) Salespersons’ networking,
(5) Industrial directories

11. Qualifying
• To meet the necessary standard or condition to receive further
attention.
•Companies qualify sales leads by contacting them by mail or
phone to find their interests (or needs).
–Hot : Good Requirement of company’s Product & handed over to
salesperson to convert them to company’s customer.
–Warm: Medium requirement , telemarketing team for follow up
–Cool: low requirement, kept pending and follow in future

12. Continue..
• Sales people get more than 80% of
buyers business if they follow up a sale
equity, as compare to 40% if they do not
follow

13. Approaching The Prospect
How do we make the Initial
Contact & Build Report
There is only one
time to make a first
impression
&3
Approach , Presentation &
Demonstration

14. Preapproac
h
• Information gathering about the prospect / vision
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

15. Approac
h
• Make an appointment to meet the prospect
• Make favorable first impression
• Select an approach technique:
• Introductory
• Customer benefit
• Product ( If the product is unique, salesperson carry new product)
• Question
• Praise Approach

16. Presentation and
Demonstration
There are four components:
1. Understanding the buyer’s needs
2. Knowing sales presentation methods / strategies
3. Developing an effective presentation
4. Using demonstration / exhibition as a tool for selling

17. 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 & impact questions
are important
E.G. Have you experienced any problems on quality and delivery
from the existing supplies?

18. Knowing Sales Presentation Methods/Strategies
Firms have developed different methods / styles / strategies of sales presentation
•Response method / canned approach.
• The sales person talks without knowing the prospect’s needs. E.G. Used by tele-
marketing people
• Formula method / mental states selling
• The salesperson uses a standard formula – AIDA (attention, interest, desire, and
action). It is used if time is short
• Advantage: Salesperson has to plan sales presentation and understand
customer's mental stage.
• Disadvantage: Customer’s need are not understood , so less effective

19. • Attention
– Favorable 1st
impression created by pope dress, smile, cheerful
expression etc
• Interest
– Salesperson find out which factor of product attract and Carry product,
CD
• Desire
– Buyer raise some objective which need , discuss how to overcome this
objective
• Action
– If yes then salesperson asks for order and if No then salesperson
continue with presentation to fully convince prospect
AIDA Model / Stage

20. 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
• Consultative selling method / Problem-solving approach
• Salespeople use cross-functional expertise
• Firms adopt team selling approach
• It is used by software / consulting firms

21. FAB Approach
Product /
Service
Feature Advantage Benefit
Ceiling Fan Ceiling Fan has
two ball bearing
Because of ball
bearing , ceiling
fan make hardly
any noise and
have longer life.
Ceiling fan can be
used in the class
rooms where
noise level should
be low as needed
by you.

22. 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

23. Demonstration
• Sales presentation can be improved by demonstration.
Independent. Demonstration is one of the important selling tools
Ex: Test drive of cars
• Advantage: Reduce risk and prove benefit of product
• Benefits of using demonstration for selling are:
• Buyers’ objections are cleared & their Questions are answered
• Improves the buyer’s purchasing interest
• Helps to find specific benefits of the prospect

24. Overcoming Objections
– Questions
– Reservations
• Understand Concern
• Counterarguments
• Acknowledge concern
• Clues to process
Selling Process

25. Overcoming Objections
IF HE HADN’T TOLD
ME WHAT HIS
OBJECTION
WAS, I NEVER WOULD
HAVE BEEN
ABLE TO HELP!

26. Overcoming Sales Objections /
Resistances
• Objections take place during presentations / when the order is
asked
• Two types of sales objections:
1. Psychological / hidden : preference of brand
2. Logical (real or practical): high price, product quality &
Availability
• Methods for handling and overcoming objections:
(a) ask questions, (b) turn an objection into a benefit, (c) reject
objections tactfully, (d) third-party certificate, (e) compensation

27. Closing the Sale
• Closing signals
• Trial close
• Asking the prospect to buy
Selling Process

28. 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
• Buying Signals are 1) Examine product 2) Asks Questions 3)Become
friendly 4) Asks another person’s opinion
• Some of the techniques used for closing the sale are: (a) alternative-
choice, (b) minor points, (c) summary-of-benefits, (d) special-offer, (e)
probability, and (f) negotiation

29. Following Up
• Commitments met
– Shipment
– Performance
• Satisfied customers rebuy
& recommend
Selling Process

30. 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

31. Negotiatio
n
• 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

32. • Transactional Selling
• Relationship Selling
• Value Added Selling

33. End of Session