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Personal Selling

Interpersonal communication process in which a seller uncovers and


satisfies the needs of a buyer to the mutual, long-term benefit of both
parties

Communication Methods

Are Sales People Born or Made?

Made

What do Salespeople do?


Client relationship manager
Account team manager
Supply chain logistics and channel manager
Information provider to their team
Emotional Intelligence
The ability to effectively understand and use your own emotions and
those of people with whom you interact. Include four aspects: (1)
knowing your own feelings and emotions as they are happening, (2)
controlling your emotions so you do not act impulsively, (3) recognizing
your customers emotions, and (4) using your emotions to interact
effectively with customers

Persuasion
Practice by a salesperson designed to influence the buyers decision,
not manipulate it

Manipulation
Practice by a salesperson to eliminate or reduce the buyers choice
unfairly

Steps in the Buying Process


1. Recognizing a need or a problem
2. Defining the type of product needed
3. Developing product specifications
4. Searching for qualified suppliers
5. Acquiring and analyzing proposals
6. Evaluating proposals and selecting a supplier
7. Placing an order and receiving the product
8. Evaluating product performance
New Task

Purchasing a product or service for the first time


Straight Rebuys
Buying the same product from the source it was bought previously
Modified Rebuys
Obtaining new information of a product or a similar product that was
purchased in the past

Users
Manufacturing personnel for OEM products and capital equipment
Do not make the ultimate purchase decision
Initiators
Start the buying process
Could be an executive making a decision
Influencers
Directly or Indirectly provide information
Economic influencer: Concerned about the financial aspects of a
decision
Technical influencer: Makes sure the technical requirements are met

Coach: Advises and directs a salesperson in a buying process leading


to sale

Gatekeepers
Control the flow of information and limit the alternatives considered
Ensure that purchases are consolidated under one contract
Reduce costs and increase quality
Deciders
Make the final choice
For straight rebuys the purchasing agent usually selects the vendor
and place the order

Lifecycle Costing
A method for determining the cost of equipment or suppliers over their
useful lives

Personal Value Equation


= Benefits Received (selling price + time and effort to purchase)
Standard Memorized Presentation
Completely memorized sales talk
Presents same selling points to all customers
Provides complete and accurate information
Limited effectiveness
No opportunity for the salesperson to tailor the presentation
Outlined Presentation
Prearranged presentation that includes
o Standard introduction
o Standard answers to common objectives
o Standard method for getting the customer to place an order
Effective because it is well organized
Customized Presentation
Based on a detailed analysis of the customers needs
Use the communication principles to:
o Discover the customers needs and problems
o Propose the most effective solution
Adapts to customer needs
Adaptive Selling
Changing sale behavior according to the selling situation
Illustrated by customized presentation
Emphasizes the importance of satisfying customer needs
Being adaptable:
o Increase buyer trust and commitment

o Results in higher sales performance


Social Style Matrix
Training program used to help sales people adapt their communication
styles
David Merrill and Roger Reid Patterns of communication behaviors, or
social styles
People who recognize and adjust to the behavior patterns have better
relationships with other people
Style Flexing: Adjusting your behavior to mirror or match your
customers social style

Prospect
A lead that is a good candidate for buying what the salesperson is
selling

Lead
A potential prospect; a person or organization that may have the
characteristics of a true prospect

Criteria For Effective Call Objectives


Specific
o What the salesperson hopes to accomplish
o What the objective targets are
Measurable
o Goals can be objectively evaluated
o Set objectives that require a buyers response
Achievable
o Challenging but reachable
o Cultural influencers are considered
Times based
o Achieved within a set frame of time

Impression Management
Activities in which salespeople engage to affect and manage the
buyers impression of them
Managing first impression

Identifying the prospects social style and status


Getting the customers attention
Developing rapport (close, harmonious relationship founded on mutual
trust)
Maintaining proper perspective and a sense of humor, when things go
wrong

Situation Questions
General data-gathering questions about background and current facts
Problem Questions
Questions about specific difficulties, problems, or dissatisfactions that
the prospect has

Implication Questions
Questions that logically follow one or more problem questions;
designed to help the prospect recognize the true ramifications of the
problem

Need Payoff Questions


Questions that ask about the usefulness of solving the problem
When do Buyers Raise Objections?
The salesperson attempts to secure an appointment, during the
approach, during the presentation, when the salesperson attempts to
obtain commitment, and during the after-sale follow-up
Also during formal negotiation sessions

5 Types of Objections

Related to needs
Related to the product
Related to the source
Related to the price
Related to time
Effective Response Methods
Direct denial
Indirect denial
Compensation method
Referral method
Revisit method
Acknowledge method
Postpone method
Buying Signals
Nonverbal cues given by the buyer that indicate the buyer may be
ready to commit; also called closing cues

Effective Methods of Closing


Direct Request Method
Asking the buyer for commitment
Benefit Summary Method
Reminding the buyer of the agreed-on benefits of the proposal
Balanced Sheet Method
Helping prospects who cannot make a decision, even when the reason
for their behavior is not apparent

Probing Method
Using a series of probing questions to discover the reason for the
hesitation

Negotiation Objectives Ex. 12.3

Competing Mode
Assertive and uncooperative
Pursuing own goals and objectives at the expense of the other party
Accommodating Mode
Unassertive and highly cooperative
Focus on the needs and desires of the other party

Avoiding Mode
Refers to individuals who do not attempt to fulfill their own needs or
the needs of others
Do not strive for a win-win agreement or any agreement

Compromising Mode
Applies to people in the middle, in terms of cooperativeness and
assertiveness
Attempts to arrive at a win-win solution

Collaborating Mode (Best Mode)


Individuals who are both assertive and cooperative
Seek to maximize the satisfaction of both parties
Seek to reach a truly win-win solution
Good Guy Bad Guy Routine
Works on the hurt and rescue principle
Bad Guy: negotiator makes all sorts of outlandish statements and
requests
Good Guy: Offers a win-win solution by presenting a lower demand

Lowballing
Occurs when one party intentionally underestimates or understates a
cost

Emotional Outbursts Tactic


Used by buyers to make seller feel uncomfortable, so as give in to
their demands

Budget Limitation Tactic


Claims of budget ceiling
A ploy to try to get a lower price
Best defense is to do homework before going into negotiation session
Customer Lifetime Value
Combined total of all future sales
Market Exchange
Transaction between a buyer and seller in which each party is
concerned only about its own benefit

Solo Exchanges
Bother the buyer and the seller pursue their own self-interests

No future business
Functional Relationships
Long-term market exchanges characterized by behavioral loyalty
Relational Partnerships
Buyer and seller have a close personal relationship
Marked by open, and honest communication
Partners trust each other and worry about small details
Not necessarily strategic but provides flexibility
Strategic Partnerships
Long-term business relationships
Partners make significant investments to improve the profitability of
both parties
Partners have gone beyond trusting each other

Partnerships get a strategic advantage


Created for uncovering and exploiting joint opportunities
Phases of Relationship Management
Awareness
It is likely that no transaction has taken place
Exploration
A search and trial phase for both buyer and seller

Expansion
Involves efforts by both parties to investigate the benefits of a longterm relationship

Commitment

The customer and seller have implicitly pledged to continue the


relationship for a period of time
Investments are made at this stage

Dissolution
Can occur at any time in the relationship process, though it doesnt
necessarily have to occur at all

Characteristics of Successful Partnerships


Mutual trust
Open communication
Common goals
Commitment to mutual gain
Organizational support
Stages of Partnerships
Awareness
Exploration
Set correct expectations
Monitor order processing
Ensure proper initial use
Follow up
Make personal visits
Handle complaints
Achieve customer satisfaction

Expansion
Generate reorders
Upgrade
Full-line sell
Cross-sell

Commitment
Secure complete commitment from both companies
Manage change
Dissolution
Limited relationships
Failure to monitor competitors or industry
Complacency
Change Agent
Person who is a cause of change in an organization
Champion
Person who works for the buying firm in the areas most affected by the
proposed change and works with the salesperson for the success of the
proposal