1. Session 3-4 Personal selling Sales call steps Negotiation skills
Closing the call

2. Personal Selling
There is a growing importance of personal selling due to complexity of products & services and intense competition.
Salesmen becoming consultants, reduce the inherent inertia, provide info, work as catalysts.

3. Advertising vs. Personal selling
Adv. Important PS important
No. of customers Large Small
Buyer’s info need Lo Hi
Size / imp of deal Small Large
After sales service Little Much
Product complexity Lo Hi
Dist. Strategy Pull Push
Pricing Policy Preset Negotiated

4. Situations conducive for personal selling
New Product Launches.
Selling Embarrassment Category products.
Industrial and institutional products.
High value items.
Insurance and other undesirable products.
Loans, financial schemes.
Missionary selling.

5. Growing importance of personal selling
In India there is high scope of personal selling activity:
Absence of media in many areas.
No advertising for many products.
Vast distribution system.
Low-literacy.
Need for negotiations (psychological need).
Totally unorganized to specialized retailing.
New focus on B2B and Government business.

6. Sales Don’t Just Happen
80% of all sales are made after the 5th call
48% of all salespersons call once, and quit
25% call twice, and quit
10% keep on calling
These 10% make 80% of the sales

7. SELLING MODEL
STRATEGIC/CONSULTATIVE SELLING MODEL Figure 1.5

8. STEP 1 : DEVELOP PERSONAL SELLING PHILOSOPHY
ADOPT MARKETING CONCEPT
VALUE PERSONAL SELLING
BE PROBLEM SOLVER/PARTNER

9. STEP 2: DEVELOP RELATIONSHIP STRATEGY
ADOPT WIN-WIN APPROACH
PROJECT PROFESSIONAL IMAGE
MAINTAIN HIGH ETHICAL STANDARDS

10. STEP 3: DEVELOP PRODUCT STRATEGY
BECOME PRODUCT EXPERT
SELL BENEFITS, NOT FEATURES
CONFIGURE VALUE-ADDED SOLUTIONS

11. THE TOTAL PRODUCT CONCEPT
Figure 6.3.
Figure 6.3

12. STEP 4: DEVELOP CUSTOMER STRATEGY
UNDERSTAND BUYER BEHAVIOR
DISCOVER CUSTOMER NEEDS
DEVELOP PROSPECT BASE

13. STEP 5: DEVELOP PRESENTATION STRATEGY
PREPARE OBJECTIVES
DEVELOP PRESENTATION PLAN
PROVIDE OUTSTANDING SERVICE

14. INTERRELATIONSHIP OF BASIC STRATEGIES
Figure 1.7

15. Creative Selling Process
Follow-Up
Close
Handling Objections
Sales Presentation
Approach
Preapproach
Prospecting and Qualifying

16. Contd.
NIS REED and ODPEC process
Xerox SPANCO
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, teleprospecting), (3) external sources (suppliers, intermediaries, trade associations), (4) salespersons’ networking, (5) industrial directories, (6) cold canvassing

17. 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

18. Preapproach Information gathering about the prospect.
Sources of information: the Internet, industrial directories, government publications, intermediaries, etc.
Pre-call Planning – Homework on the customer’s needs and developing solutions from your offering.
Develop the FAB, USP, UPB for the offering
In case of Institutional Selling, identify the MAN (Money, Authority & Need)

19. Contd. Call Planning – Understand the objective of the call
sales, more info, permission, appointing new dealer, payment collection, dispute settling, post-sales follow-up.

20. Approach Make an appointment to meet the prospect
Make favourable 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
Proper approach-(Gillette 4 x 20, RBI SMART+1C).

21. 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
This is the point where the seller has to use any of the sales theories, which he believes is relevant to that particular product / situation

22. 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

23. 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

24. 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)

25. Contd.
Objection Handling – Stated objections, real objections, Probing & experience are required to get to the root of problem.
Techniques:
Superior feature method
Yes…but method

26. Contd. Negotiations – To arrive at mutually acceptable solution.
Most of the branded products in B2C have a MRP and fixed margins. So limited scope for negotiation
More prevalent in industrial/ institutional selling and bulk customer dealing

27. Obtaining the Best Deal Distributive Negotiations
Maximum price the buyer is willing to pay or VIU Price
Minimum price the seller is willing to accept
Zone of Agreement
Price Analysis
Supplier Cost Analysis
Value Assessment
Price per Unit

28. Cooperating with Suppliers Integrative Negotiations
Zone of
Agreement
Customer’s Minimal Acceptable Level for Item A
Supplier’s Minimal Acceptable Level for Item B
(Adapted from Bazerman 1986)

29. VALUE CREATION
Value = creative improvements enhancing customer experience
Consumers reward sales people who add value at each step
When customer not aware of value added by salespeople, focus may shift to price
Last slide Chapter 1.

30. Theory of Principled Negotiations
Propounded by Roger Fisher and William Ury
Separate the people from the problem
Focus on interests, not on positions (stance). Combination of substantive issues and support to human beings on the other side works best
Invent options for mutual gains
Insist on objective criteria

31. PRICE ICEBERG
Price is only the tip of the iceberg…remind customer of value-added factors below tip

32. Negotiations (contd.)
The purpose of negotiations – To arrive at better results than what one would have got without bargaining.
The concept of BATNA
Best Alternative to a Negotiated Agreement

33. Closing the Call Effective closing techniques:
Action close – use a financial help.
Gift close – use of additional incentive.
One more Yes – series of positive responses.
Direct Close
Early Close – sense the buying signals.
Follow-up – To maintain the account, CRM

34. 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

35. Selling Consumer Non-durables
Making calls per day to retailers & some wholesalers
Checks shelf-stock, replenishes stock and tries to get the ‘push’ going
POP / merchandizing activity
Following beat / route plans

36. Selling Consumer Durables
Less number of calls per day to dealers
More emphasis on demonstration, merchandizing, store-salesmen training etc.
Sometimes doing customer-interaction
Look out for new competition & opportunities
Building strong relationships with his direct customers – stockists / dealers
Working closely with service team to understand potential objections from the market

37. What goes in selling the following?
Pharmaceuticals
Industrial Products
Services

38. ESP for Successful Selling
Enthusiasm
Sincerity
Perseverance

39. Selling Skills & attitudes
Communication skills
Listening skills
Conflict resolution
Negotiation skills
Objection-handling ability
Problem-solving skills
Diligence
‘Can Do’ attitude