Selling Process: Gopal Thapa

1. Selling process
Gopal Thapa

2. Selling Process
 Prospecting
 Preapproach
 Approach
 Sales Presentation
 Meeting Objection
 Closing Sales
 Follow Up

3. Meaning of Prospecting
Prospecting is the first step in the selling
process. It is the activity of seeking out
Potential Customers.
Dictionary of Marketing

4. Importance of Prospecting
 It is estimated these changes result in a 15 to
20% annual turnover of customers.
 Unless a company has a steady flow of new
prospects, it will soon be out of business.
 Prospecting is more important in some selling
fields than in others
 Eg. Life insurance or real state business who
does not have an effective prospecting plan,
does not last long in the business.

5. Importance of Prospecting
 No one with an ample supply of good
prospects ever left the life insurance
business. As long as the human heart keeps
pumping blood through the veins, a person
continues to live despite all infirmities. As
long as prospecting keeps pumping a supply
of names, a person continues in the life
insurance business.
New York Life Insurance Company

6. Importance of Prospecting
 General Rule of Prospecting
It takes 100 suspects:
• To get 50 prospects
• To have an opportunity to make 25 presentations
• Which will result in 12 sales
 Prospecting is important even for sales
people in high technology products
 A recent survey of computer sales people
found that: reps who had sale of more than
150% of quota did more prospecting than
lower performing sales people.

7. Importance of Prospecting
 To generate leads, they relied heavily on
referrals, business related articles in
newspapers and trade journals, civic meeting
and cocktail parties.
 In retail selling, most of the prospecting is
done through advertising.
 Sales people who can go out and get their
own prospects have an advantage over retail
sales people who must wait for customers to
come into the store.

8. Importance of Prospecting
 Some retailers, such as appliance dealer,
recognize the importance of an aggressive
prospecting system by having sales people
call at homes to demonstrate and sell their
products.

9. Characteristics of a Good Prospects
 Does a want or need exist?
 Does the prospect have the ability to buy?
 Does the prospect have the authority to buy?
 Can the prospect be approached favorably?
 Is the prospect eligible to buy?

10. How and Where to Obtain Prospects?
 Inquiries
 Endless chain method
 Center of influence method
 Public exhibitions, demonstrations and trade
shows
 Lists
 Friends and acquaintances
 Cold canvas method
 Others

11. Pre-Approach
 the salesperson should know the prospect’s
likes and dislikes, his eeds,references,habits,
nature, behaviour, economic and social
status etc.
 Based on all this information, the salesman
has the necessary tools to plan his
visit/interview with the prospect and can give
an effective sales presentation.
 This kind of preparation to meet the prospect
is called the pre-approach

12. Significance of Pre-approach
 It is a method by which a salesman concentrates
only on the prospects and not the suspects, thus
saving his time and energy.
 It helps a salesman gain all the possible information
about the prospect before approaching him.
 As the salesman has prior knowledge about the
prospect, he is able to give a sales presentation more
efficiently, effectively and with confidence.
 The sales presentation is focused around the needs
of the prospect and is short, meaningful and to the
point.

13. Approaching
 In this stage the prospect and the
salesperson come in contact with each other
face to face.
 Here the salesman has an opportunity to
understand and interact with the prospect in a
better way.

14. Methods of Approach
 No one method can be described as the best,
since different methods are suitable for
different prospects.
 It is, however, possible to start the approach
with one method and end it with another.

15. Methods of Approach
 . Cashing in on Brand Name or the
Company’s Reputation:
 This is the commonest of all the methods.
(a) The salesman here uses the influence of the
brand name of his product or the reputation of
his company to attract the attention of his
prospect.
(b) This method, however, is not suitable for
lesser known firms or brands.

16. Methods of Approach
 Customer Benefit Approach:
 In this approach the salesman arouses his
prospect’s interest by making the prospect realize
that buying the product will definitely benefit him.
 Statements such as “Would you like to cut down
your credit card bills by 40%” or “Would you like to
earn more interest on your savings” or “Would you be
interested in a personal loan that is provided to you
within 2 hours without much hassles” etc. will
definitely arouse the curiosity of the prospect and
develop an interest in learning more about the
product

17. Methods of Approach
 Innovative Product Opens the Door to the
Salesman:
 Under this approach, the product examined
must be new in the market, better designed,
unique, attractive and appealing to the
customer.
 When credit cards were launched in India, it
generated a lot of curiosity.

18. Methods of Approach
 The Premium Approach:
 Under this approach, salesmen generally give away
small gifts or novelties to the prospect to draw
attention to them and the product.
 A Bank salesperson can offer free services like
anytime credit card bill request service over phone, or
upto 5% discount on usage of credit card.
 This method is generally popular with housewives

19. Methods of Approach
 The Shock Approach:
 Under this method, the salesman highlights
rising crime rates, uncertainties, risks of old
age etc. which forces the prospects into
thinking about such factors.
 This method is useful for products such as
insurance, wealth management, savings
account, locker facility etc.

20. Methods of Approach
 The Approach of ‘Making the Prospect
Feel Important’:
 The salesman should always remember that
it is the prospect who has to make the buying
decision.
 Salespersons often use lines like, “you are
our esteemed customer” or “we are happy to
be associated with you” etc. to make the
customers feel important

21. Methods of Approach
 The Survey Approach:
 Before approaching a prospect, the
salesman must survey the needs and
preferences of the prospect so as to give an
effective presentation that is to the point and
useful to the prospect.
 This technique can be very useful in cases
where the prospect is a corporation or high-
net worth individual.

22. Methods of Approach
 Interactive Approach: Under this approach,
the salesman asks the prospect some
questions and in this way interacts with him
 The questions should be specific, appropriate
and match the requirements of the prospect.
 This approach may also be combined with
other approaches such as the Customer
Benefit Approach and should arouse the
prospect’s curiosity.