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Personal Selling
PURPOSES OF SELLING
 Introducing Innovation to Markets
 Conveying Information
 Solving Customer Problems
ATTITUDES ABOUT
SELLING
 “Sales people are born and not made.”
 “Sales people must be good Communicator.”
 “Selling is a matter of knowing the right
techniques or tricks.”
 “A good salesperson can sell ice to an
Eskimo.”
 “People generally do not want to buy.”
Personal Selling as Promotion
Flexible
Costly
Difficult to
attract quality
people
Minimize
waste
Focused
Goal is
sale
When Personal Selling is Used
When MARKET is concentrated:
•geographically,
•in few industries,
•in several large customers
When PRODUCT
•value is not apparent,
•has high unit cost,
•is technical,
•requires demonstration,
•is fitted to customer’s need,
•is in introductory stage
of the Product Life Cycle
THE FIVE SALES CHANNELS
 Personal selling occurs through several
types of communication channels
 Each sales channels has unique aspects
which make it relevant for particular
sales situations.
Over-the-
Counter
Field
Selling
Tele-
marketing
Online
Selling
© PhotoDisc
Inside
Selling
THE FIVE SALES CHANNELS
 Over-the-counter selling: personal
selling conducted in retail and some
wholesale locations in which
customers come to the seller’ place of
business
© PhotoDisc
Over-the-
Counter
Field
Selling
Tele-
marketing
Online
Selling
Inside
Selling
THE FIVE SALES CHANNELS
 Field selling: sales presentations made at
prospective customers’ homes or
businesses on a face-to-face basis
Field
Selling
Over-the-
Counter
Tele-
marketing
Online
Selling
Inside
Selling
THE FIVE SALES CHANNELS
 Telemarketing: promotional presentation
involving the use of the telephone on an
outbound basis by salespeople or on an
inbound basis by customers who initiate
calls to obtain information and place orders
Tele-
marketing
Over-the-
Counter
Field
Selling
Online
Selling
Inside
Selling
THE FIVE SALES CHANNELS
 Inside selling: performing the functions of field
selling but avoiding travel-related expenses by
relying on phone, mail, and electronic commerce to
provide sales and product service for customers on a
continuing basis
Inside
Selling
© PhotoDisc
Tele-
marketing
Over-the-
Counter
Field
Selling
Online
Selling
THE FIVE SALES CHANNELS
 Online Selling: performing the sales function via
the internet by allowing customers to access product
information, check prices, and place their own orders
without input from an actual salesperson.
Online
Selling
© PhotoDisc
Tele-
marketing
Over-the-
Counter
Field
Selling
Inside
Selling
PERSONAL SELLING AND
THE MARKETING MIX
 Price, Product, Place, and Promotion
– Advertising, Sales Promotion, Public
Relations, and Personal Selling
PERSONAL SELLING IS
CUSTOMER ORIENTED
SELLING
PERSONAL SELLING
PROCESS
 PRETRANSACTIONAL PHASE
(Prospecting, Qualifying, Pre-call
Planning)
 TRANSACTIONAL PHASE (Approach,
Needs Discovery, Presentation, Handling
Objections, Closing)
 POSTTRANSACTIONAL PHASE
(Service and Follow-up)
The Personal Selling Process
PROSPECTING: IDENTIFYING POTENTIAL CUSTOMERS
APPROACHING THE PROSPECT
FOLLOWING UP
CLOSING THE SALE
HANDLING OBJECTIONS
MAKING THE SALES PRESENTATION
Pre approach: QUALIFYING PROSPECTS
Personal Selling Process
Prospecting
Sales
Approaching
Sales
Presentation &
Demonstration
Handling
Objections
Sales
Closing
Follow-up
Act
of
Closing
A
Sales
(Action)
Increasing
Desire
And
Lowering
Cognitive
Dissonance
Secure
General
Interest
& Arouse
Desire
Bring
Attention
Further
Lowering
And
Minimizing
Cognitive
Dissonance
Bringing
Satisfaction
AIDAS Framework & Personal Selling Process
PERSONAL SELLING
PROCESS
 Prospecting
– External Sources
» Direct Inquiries
» Referrals
» Directories
» Cold Canvassing
– Internal Sources
PERSONAL SELLING
PROCESS
 Qualifying
– Qualified candidates have a need, have the
authority to buy, and can afford to buy
PERSONAL SELLING
PROCESS
 Pre-call Planning
– What do I want to accomplish?
– What do I know about the prospect?
– Where can I find information?
– What am I going to say?
PERSONAL SELLING
PROCESS
 Precall Planning--”What do I want to
accomplish?”
– determine information on historical
inventory levels.
– determine who is involved in the purchasing
decision.
– arrange for a follow-up meeting
– agreement to a trial-run purchase
PERSONAL SELLING
PROCESS
 Precall Planning--”What do I know about
the prospect?”
– Size of business/products sold/markets
served
– Key personnel
– Buying routines/purchasing process
– Present supplier(s)/volumes purchased
– Future plans
PERSONAL SELLING
PROCESS
 Precall Planning--”Where can I find
information?”
– Ask prospect directly
– Observe business facilities
– Ask other company salespeople
– Ask current customers
– Ask competitors
PERSONAL SELLING
PROCESS
 Precall Planning--”What am I going to
say?”
– The Sales Mix Model
» Presentation Pace
» Presentation Scope
» Depth of Inquiry
» Two-way Communication
» Visual Aids
PERSONAL SELLING
PROCESS
 Precall Planning--”What am I going to
say?”
– Implications for managers
» how to structure the presentation
» product, competitive, industry information
» increase rep confidence
PERSONAL SELLING
PROCESS
 The Approach
– Securing Appointments
– Establishing Relationship / Bonding
PERSONAL SELLING
PROCESS
 “Why is the approach important?”
– It can help capture the buyer’s attention
– It can help to establish a harmonious
atmosphere
– It serves as a good transition to the
presentation
– It can help in need determination
PERSONAL SELLING
PROCESS
 The Approach
– Types of Approaches
» Introductory Approach
» Assessment Approach
» Product Approach
» Consumer Benefit Approach
» Referral Approach
PERSONAL SELLING
PROCESS
 Need Discovery
– Ascertain / establish buyer benefits
– Types of questions: permission, fact finding,
feeling finding, checking
PERSONAL SELLING
PROCESS
 Presentation Types
– Canned (Informal Recorded or taped)
– Organized
– Tailored / Customized
PERSONAL SELLING
PROCESS
 The Presentation
– Focus on Benefits, not just Features
– Keep it Simple
– Talk the Prospect’s Language
– Stress Application
– Get the Prospect Emotionally Involved
– Seek Credibility
PERSONAL SELLING
PROCESS
 Overcoming Objections
 LSCPA Approach to Overcoming Objections:
– Listen to the buyer’s feelings
– Share the concerns without judgment
– Clarify the real issue with questions
– Problem solve by presenting options/solutions
– Ask for action to determine commitment
PERSONAL SELLING
PROCESS
 Closing
– Alternative Choice
– Summary Close
PERSONAL SELLING
PROCESS
 Service and Follow-up
– Entering Orders
– Installation of Product
– Training
– Handling Billing Problems
PERSONAL SELLING
APPROACHES
 Stimulus-Response Selling
 Need Satisfaction Selling
 Problem Solving Selling
PERSONAL SELLING
APPROACHES
 STIMULUS RESPONSE SELLING
– Manipulate customer to elicit / Draw desired
responses
– Sales approach which emphasizes saying the
right thing at the right time (on the basis of a
carefully scripted presentation) by guiding the
prospect along a standard question-answer
(stimulus-response) sequence.
PERSONAL SELLING
APPROACHES
 NEED SATISFACTION SELLING
– Presentation is tailored to fit needs of buyer
– Need satisfaction selling is a sales approach
where the sales person probes into the needs of
the consumer, both stated or
expresses needs and unstated or tacit needs and
then prepares his sales pitch or presentation in
accordance to these needs in order to satisfy the
consumer.
PERSONAL SELLING
APPROACHES
 PROBLEM SOLVING (PROBLEM-
SOLUTION) SELLING
– The salesperson defines a customer problem that
may be solved by various alternatives.
– Selling approach in which the salesperson attempts
to identify the customer's problems and come up
with one or more alternatives that solve the problem
by using the product he or she is selling.
PERSONAL SELLING
POSITIONS
 Sales Support Personnel (Missionaries)
 New Business (Pioneers and Order Getters)
 Existing Business (Order Takers)
 Direct to Consumer Sales
 Combination Sales Positions

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4Personal Selling process final.ppt

  • 2. PURPOSES OF SELLING  Introducing Innovation to Markets  Conveying Information  Solving Customer Problems
  • 3. ATTITUDES ABOUT SELLING  “Sales people are born and not made.”  “Sales people must be good Communicator.”  “Selling is a matter of knowing the right techniques or tricks.”  “A good salesperson can sell ice to an Eskimo.”  “People generally do not want to buy.”
  • 4. Personal Selling as Promotion Flexible Costly Difficult to attract quality people Minimize waste Focused Goal is sale
  • 5. When Personal Selling is Used When MARKET is concentrated: •geographically, •in few industries, •in several large customers When PRODUCT •value is not apparent, •has high unit cost, •is technical, •requires demonstration, •is fitted to customer’s need, •is in introductory stage of the Product Life Cycle
  • 6. THE FIVE SALES CHANNELS  Personal selling occurs through several types of communication channels  Each sales channels has unique aspects which make it relevant for particular sales situations. Over-the- Counter Field Selling Tele- marketing Online Selling © PhotoDisc Inside Selling
  • 7. THE FIVE SALES CHANNELS  Over-the-counter selling: personal selling conducted in retail and some wholesale locations in which customers come to the seller’ place of business © PhotoDisc Over-the- Counter Field Selling Tele- marketing Online Selling Inside Selling
  • 8. THE FIVE SALES CHANNELS  Field selling: sales presentations made at prospective customers’ homes or businesses on a face-to-face basis Field Selling Over-the- Counter Tele- marketing Online Selling Inside Selling
  • 9. THE FIVE SALES CHANNELS  Telemarketing: promotional presentation involving the use of the telephone on an outbound basis by salespeople or on an inbound basis by customers who initiate calls to obtain information and place orders Tele- marketing Over-the- Counter Field Selling Online Selling Inside Selling
  • 10. THE FIVE SALES CHANNELS  Inside selling: performing the functions of field selling but avoiding travel-related expenses by relying on phone, mail, and electronic commerce to provide sales and product service for customers on a continuing basis Inside Selling © PhotoDisc Tele- marketing Over-the- Counter Field Selling Online Selling
  • 11. THE FIVE SALES CHANNELS  Online Selling: performing the sales function via the internet by allowing customers to access product information, check prices, and place their own orders without input from an actual salesperson. Online Selling © PhotoDisc Tele- marketing Over-the- Counter Field Selling Inside Selling
  • 12. PERSONAL SELLING AND THE MARKETING MIX  Price, Product, Place, and Promotion – Advertising, Sales Promotion, Public Relations, and Personal Selling
  • 13. PERSONAL SELLING IS CUSTOMER ORIENTED SELLING
  • 14. PERSONAL SELLING PROCESS  PRETRANSACTIONAL PHASE (Prospecting, Qualifying, Pre-call Planning)  TRANSACTIONAL PHASE (Approach, Needs Discovery, Presentation, Handling Objections, Closing)  POSTTRANSACTIONAL PHASE (Service and Follow-up)
  • 15. The Personal Selling Process PROSPECTING: IDENTIFYING POTENTIAL CUSTOMERS APPROACHING THE PROSPECT FOLLOWING UP CLOSING THE SALE HANDLING OBJECTIONS MAKING THE SALES PRESENTATION Pre approach: QUALIFYING PROSPECTS
  • 16. Personal Selling Process Prospecting Sales Approaching Sales Presentation & Demonstration Handling Objections Sales Closing Follow-up Act of Closing A Sales (Action) Increasing Desire And Lowering Cognitive Dissonance Secure General Interest & Arouse Desire Bring Attention Further Lowering And Minimizing Cognitive Dissonance Bringing Satisfaction AIDAS Framework & Personal Selling Process
  • 17. PERSONAL SELLING PROCESS  Prospecting – External Sources » Direct Inquiries » Referrals » Directories » Cold Canvassing – Internal Sources
  • 18. PERSONAL SELLING PROCESS  Qualifying – Qualified candidates have a need, have the authority to buy, and can afford to buy
  • 19. PERSONAL SELLING PROCESS  Pre-call Planning – What do I want to accomplish? – What do I know about the prospect? – Where can I find information? – What am I going to say?
  • 20. PERSONAL SELLING PROCESS  Precall Planning--”What do I want to accomplish?” – determine information on historical inventory levels. – determine who is involved in the purchasing decision. – arrange for a follow-up meeting – agreement to a trial-run purchase
  • 21. PERSONAL SELLING PROCESS  Precall Planning--”What do I know about the prospect?” – Size of business/products sold/markets served – Key personnel – Buying routines/purchasing process – Present supplier(s)/volumes purchased – Future plans
  • 22. PERSONAL SELLING PROCESS  Precall Planning--”Where can I find information?” – Ask prospect directly – Observe business facilities – Ask other company salespeople – Ask current customers – Ask competitors
  • 23. PERSONAL SELLING PROCESS  Precall Planning--”What am I going to say?” – The Sales Mix Model » Presentation Pace » Presentation Scope » Depth of Inquiry » Two-way Communication » Visual Aids
  • 24. PERSONAL SELLING PROCESS  Precall Planning--”What am I going to say?” – Implications for managers » how to structure the presentation » product, competitive, industry information » increase rep confidence
  • 25. PERSONAL SELLING PROCESS  The Approach – Securing Appointments – Establishing Relationship / Bonding
  • 26. PERSONAL SELLING PROCESS  “Why is the approach important?” – It can help capture the buyer’s attention – It can help to establish a harmonious atmosphere – It serves as a good transition to the presentation – It can help in need determination
  • 27. PERSONAL SELLING PROCESS  The Approach – Types of Approaches » Introductory Approach » Assessment Approach » Product Approach » Consumer Benefit Approach » Referral Approach
  • 28. PERSONAL SELLING PROCESS  Need Discovery – Ascertain / establish buyer benefits – Types of questions: permission, fact finding, feeling finding, checking
  • 29. PERSONAL SELLING PROCESS  Presentation Types – Canned (Informal Recorded or taped) – Organized – Tailored / Customized
  • 30. PERSONAL SELLING PROCESS  The Presentation – Focus on Benefits, not just Features – Keep it Simple – Talk the Prospect’s Language – Stress Application – Get the Prospect Emotionally Involved – Seek Credibility
  • 31. PERSONAL SELLING PROCESS  Overcoming Objections  LSCPA Approach to Overcoming Objections: – Listen to the buyer’s feelings – Share the concerns without judgment – Clarify the real issue with questions – Problem solve by presenting options/solutions – Ask for action to determine commitment
  • 32. PERSONAL SELLING PROCESS  Closing – Alternative Choice – Summary Close
  • 33. PERSONAL SELLING PROCESS  Service and Follow-up – Entering Orders – Installation of Product – Training – Handling Billing Problems
  • 34. PERSONAL SELLING APPROACHES  Stimulus-Response Selling  Need Satisfaction Selling  Problem Solving Selling
  • 35. PERSONAL SELLING APPROACHES  STIMULUS RESPONSE SELLING – Manipulate customer to elicit / Draw desired responses – Sales approach which emphasizes saying the right thing at the right time (on the basis of a carefully scripted presentation) by guiding the prospect along a standard question-answer (stimulus-response) sequence.
  • 36. PERSONAL SELLING APPROACHES  NEED SATISFACTION SELLING – Presentation is tailored to fit needs of buyer – Need satisfaction selling is a sales approach where the sales person probes into the needs of the consumer, both stated or expresses needs and unstated or tacit needs and then prepares his sales pitch or presentation in accordance to these needs in order to satisfy the consumer.
  • 37. PERSONAL SELLING APPROACHES  PROBLEM SOLVING (PROBLEM- SOLUTION) SELLING – The salesperson defines a customer problem that may be solved by various alternatives. – Selling approach in which the salesperson attempts to identify the customer's problems and come up with one or more alternatives that solve the problem by using the product he or she is selling.
  • 38. PERSONAL SELLING POSITIONS  Sales Support Personnel (Missionaries)  New Business (Pioneers and Order Getters)  Existing Business (Order Takers)  Direct to Consumer Sales  Combination Sales Positions