Personal Selling Process

1. THE PERSONAL
SELLING PROCESS
Shipra Bhutani, Asst. Professor, CPJCHS

2. INTRODUCTION
 Personal selling is where businesses use
people (the “sales force”) to sell the product
after meeting face-to-face with the
customer. The sellers promote the product
through their attitude, appearance and
specialist product knowledge. They aim to
inform and encourage the customer to buy, or
at least try the product.

3. • Personal selling Interpersonal influence process
involving a seller’s promotional presentation
conducted on a person-to-person basis with the buyer.
• Sixteen million people in the U.S. are employed in
sales.
• Personal selling is the single largest marketing
expense in many firms.
It is the oral presentation in a conversation with one or
more prospective purchasers for the purpose of
making sales; it is the ability to persuade people to buy
goods & services at a profit to the seller and benefit to
the buyer

4. Nature of Personal Selling
 It involves direct personal contact between the
seller and the buyer.
 It is face to face and oral communication
 It is the art of persuasion that converts human
needs into demand.
 It is the science of winning the buyer’s
confidence in the seller and his product.
 It is an art as well as science.

5.  It involves contact with a limited number of
buyers
 It requires a flexible approach as different
people react differently.
 Real purpose is not to trap customers but to
buikd a mutually advantageous and
premanent relationship

6. Objectives
 Creation of demand
 Handling objections
 ‘exploring hidden wants
 Educating customers
 Building relationships
 Providing feedback

7. Importance of personal selling
 Benefits of consumers
 Benefits to businessmen
 Benefits to society

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.
• Some of the above steps may not be applicable for selling
to the trade
• We now discuss application of above steps to industrial

9. STEPS OF THE SALES
PROCESS
 Prospecting
 Preapproach
 Approach
 Presentation & Demonstration
 Overcoming objections
 Trial Close/ Closing the sale
 Follow-up & Service

10. 1. PROSPECTING &
QUALIFYING

11. PROSPECTING
 It is the method or system by which
salespeople learn the names of people who
need the product and can afford it.
 2 STEPS IN PROSPECTING:
1. Generating leads
2. Qualifying leads

12. IDENTIFYING LEADS
 Referrals from customers
 Referrals from internal company sources
 Referrals from external referral agencies
 Published directories
 Networking by the salesperson
 Cold canvassing

13. QUALIFYING LEADS
 The customer has a need for the products
which are being sold
 The customer can afford to buy the products
 The customer is receptive to being called upon
by the salesperson
 HOT PROSPECTS
 WARM PROSPECTS
 COOL PROSPECTS

14. 2. PREAPPROACH

15. 1. Information gathering about the
prospect.
Sources of information: the Internet,
industrial directories, government
publications, intermediaries, etc.
2. Precall planning/Planning sales call
3. Setting Call Objectives
4. Tentative planning of sales strategy:
which products, features and benefits
may meet the customer needs

16. 3. APPROACH

17.  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

18. 4. PRESENTATION &
DEMONSTRATION

19. There are four components:
1. Understanding the buyer’s needs
2. Knowing sales presentation methods /
strategies
3. Developing an effective presentation
4. Using demonstration as a tool for selling
We will examine each of the above points

20. 1. 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

21.  Situational Questions: who are involved in
buying decision making?
 Problem identification Questions: Have you
experienced any problems on quality and
delivery from the existing supplies?
 Problem impact questions: What impact the
quality and delivery problems will have on
your costs and customer satisfaction?
 Solution value questions: How would an
error free system help?
 Confirmation question: would you be
interested in our services to minimize

22. 2. 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.
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.

23. 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
 Team selling method

24. 3. 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

25. 4. 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

26. PRODUCT
DEMONSTRATIONS
 A good sales presentation is built around a
forceful product demonstration. Reps should
demonstrate everything possible during the
presentation. Today there are numerous
softwares which can be used with laptops to
make product demonstrations easier.

27. DEVELOPING EFFECTIVE
SALES PRESENTATIONS
 Keep the presentation simple
 Talk the prospect’s language
 Stress the application of the product or service
to the prospect’s situation
 Seek credibility at every turn

28. 5. OVERCOMING
OBJECTIONS

29. MEETING OBJECTIONS
 Objections are encountered in practically
every presentation. They should be welcomed
because they indicate that the prospect has
some interest in the proposition. There are
several techniques that should be used in
responding to a buyer objection.

30. 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)

31. Methods for handling and
overcoming objections
 ASK QUESTIONS:
Buyer: It seems price of your product is higher
than competitors
Salesperson: I accept your concern. Do you
want to know why is it so?
 TURN AN OBJECTION INTO A BENEFIT,
Buyer: delivery time 4 week is too long. We want to
finish installation in 5 weeks
Salesperson: I appreciate your point but the
equipment is specially designed to your specific
needs. We will deliver in 4th week and will finish
installation in 5th week

32.  DENY OBJECTIONS TACTFULLY
Buyer: I don’t want to buy this car as my friend
told me that it has lot of problems
Salesperson: yes I agree it happened two years
ago but then we replaced n resolved all those
problems. In last year our car is the highest
selling car
 THIRD-PARTY CERTIFICATE,
 COMPENSATION

33. 6. TRIAL CLOSE AND
CLOSING THE SALE

34.  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

35. 7. FOLLOW-UP AND
SERVICE

36. FOLLOW-UP
 Reps must learn that the sale is not over when
they get the order. Good sales reps follow up
in various ways. They make certain that they
have answered all the buyer’s questions and
that the buyer understands the details of the
contract.

37.  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

38. 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),

39. Transactional and Relationship
selling
Parameters Transactional Relationship
Objective Get the order or
sales
Become sole or
preferred supplier
Focus Sales
presentation,
overcoming
objections and
closing
Building trust &
superior customer
service
Customer type
and number
Many customers
with low profit
potential
Few high profit
potential
customers
Length of
relationship
Short (days) Long(
month/years)

40. Transactional and Relationship
selling
Parameters Transactional Relationship
Sales team One or two junior
level sales people
Team selling with
3 to 5 junior and
senior level
people
Selling efforts Low to medium,
involving few
functions
High, involving
many functions
Pricing Strategy Competitive or
lowest prices to
get sales
Mutually
acceptable prices
for profits or
mutual benefits

41. Value Added Selling
 Focus is on complete understanding of the
present and future needs of the customer, and
meeting those needs better than competitors,
so as to obtain maximum share of the
customer’s business.