Chp 2.

Sales Management, Personal

Selling and Salesmanship
 Sales Management
directs

Personal Selling

Implemented

Salesmanship
 Sales Management
– The planning, direction and control of personal selling, including
recruiting, selecting, equipping, assigning, routing, supervising,
paying and motivating as these task apply to the personal sales
force
 Personal Selling
– Along with other marketing elements such as pricing, advertising,
product development and research, marketing channels and
physical distribution is a means of implementing marketing
program
 Salesmanship
– It is art of successfully persuading prospects or customers to buy
products or services from which they can derive suitable benefits,
thereby increasing their total satisfaction
Buyer-Seller DYAD

– “dyad” a situation in which two people interact

 A salesperson and the prospect interacting with each
other
 The more alike the salesperson and their prospects,
higher the chances of the sale
– E.g. Insurance
 Diversity in Personal-selling situations
– Service Selling – obtain sales from existing
customers whose habits and patterns of thought
are already conductive
– Developmental selling – aims to convert
prospects into customers
Sales Positions

 Group A (service selling)

1. Inside Outside Taker – “waits on customer” –
sales clerk behind the counter
2. Delivery Salesperson – delivering the product
3. Route or Merchandising Salesperson –
Operates as an order taker but works in the field
4. Missionary
5. Technical Salesperson
Sales Positions

 Group B ( developmental selling)

1. Creative salesperson of Tangibles
– Vacuum cleaners
2. Creative Salesperson of Intangibles
– Insurance
 Group C ( dev. Selling + unusual creativity)
– “Political”, “Indirect” or Back Door Salesperson
– Salesperson engaged in Multiple sales
Theories of Selling

 AIDAS theory of selling

– Attention
– Interest
– Desire
– Action
– Satisfaction
 Securing Attention
– Receptive state
– Few min. of the interview crucial
 Gaining Interest
– Intensify the prospects attention -> strong interest
 Kindling desire
– Ready-to-buy point
– Obstacles/Objections
 Inducing Actions
– The “right time”
 Building satisfaction
– Reassurance
 “Buying Formula” Theory of Selling
Need ( or problems) -> solution -> Purchase
Need -> solution -> Purchase-> Satisfaction
Need -> Product service -> Purchase-> Satisfaction/
and/or Dissatisfaction
trade name Adequacy

Need -> Product service -> Purchase-> Satisfaction/

and/or Dissatisfaction
trade name
Pleasant feelings
 “Behavioral Equation” Theory
– Four essential elements of learning process
 Drives – strong internal stimuli
– Innate drive from physiological needs
– Learned drives
 Cues- weak stimuli that determine when the buyer will respond
– Triggering cues
– Nontriggering
 Product cues

 Informational cues

 Response
 Reinforcement
 Salesperson Knowledge Universe
Product Knowledge
•Features
•Benefits
•Styles
•Origin
•Price
Company Competitors
Knowledge Knowledge
•History
•Finances •Industry structure
•Management •Market Share
•Size •Market Behaviour
•Policies and Salesperson •Other policies
•Procedure Knowledge
universe
The Selling Process

Pre sale Pre-approach Approach to the

Prospecting
Preperation B4 the interview customer

Handling customer Sales

Follow up Closing the sale
Objections presentations
action
Pre-approach Information

 Size of the business

 Product lines and market they sell
 Responsible executives and key personnel
 Buying routines and procedures
 Competitors
 Any previous business dealing with your competitors
 From whom are customers buying currently
 Levels of volume possible
 Where, when, why and by whom will the products be used
 Prospects of developing future sales form the client
Prospecting

 Prospecting
– The planning work which is essential in
eliminating calls on nonbuyers is called
“prospecting”
 Steps in Prospecting
– Formulating prospect definitions
 Getting to the right person
– Searching out potential accounts
 Names of prospects
– Qualifying prospects and determining probable
requirements
 Additional information sources to qualify
– Relating company products to each prospects requirements
 Strategy for approaching each prospect
50 potential prospects 50 potential prospects

15 qualified prospects 25 qualified prospects

6 interviews 17 interviews

1 sale 7 sale

No Yes

Successful prospecting
Popular methods of prospecting

 Cold canvassing
 Endless chain customer referral
 Prospect pool
 Centers of Influence
 Non-competing sales force
 Observation
 Friends and Acquaintances
 List and Directories
 Direct mail
 Telemarketing
 Trade Shows and Demonstrations
Pre-approach Information b4 the
interview

 Customer Benefit Plan

– FAB analysis
 Features
 Advantages
 Benefits
– Own as well as the competitors
– Reason to purchase
FAB Analysis

 Features The salesperson describes the features or

characteristics of the products, service or market offering
– For e.g. “Our ceiling fan has two ball bearing”
 Advantages The salesperson then describes how the feature
helps or give advantage to any prospect
– “because of the bal bearing, our ceilings fans make hardly any
notice and have a longer life”
 Benefit The Salesman described how the feature or advantage
meets a clear and detailed need expressed by the prospect.
– “Our ceiling fans can be used in classrooms where noise level
should be low as needed by you”
 Exercise
Product/Service Feature Advantage Benefit
Washing Machine

Passenger Car

MBA Programme

Life Insurance
Approach to the customer

 Crucial step
 Commonly occurring mistakes
– Disregarding the concept of the first impression
– Forgetting the goal of obtaining the order
– Selling the company's image than the products
– Lack of response to needs and objections of customers
– Overcomplicating the technical and managerial jargons
– Relying on product literature for product information
– Talking and arguing instead of listening
– Brushing of questions and objections
– Failing to ask for the order
Sales Presentation

 What the customer wanted to ask you but did not spell out to
you
– Why should I listen to you?
– What is important in your presentation?
– What will I get out of it?
– Who says that yours is the best in the business?
– So what if you have a great product, everybody say so?
– Who else has done the buying of your product?
– Do I know anyone of them?
Sales Presentation

 Attracting Customer Attention

– Understanding the customers mind and thought
and placing the product according to that so it
matches his line of thought.
– External factors
– Internal factors
Sales Presentation

 Creating Interest
– Charles Fernard
 Interest appreciations
 Serviceability
 Identification
 Arousing desire and Building conviction
Methods of Sales presentation

 Canned Presentation
– Prepared by the company
– Little scope for modification
– New salespeople; confidence
– Repeated calls to the same customer – not useful
 Organized Presentation
– Enough scope to word the presentation but on the lines of
the company policy and systems
– Flexibility
– New and old salespeople
 Tailored Presentation
– Business to business selling
Handling customer Objections

 Sales Resistance
– Real or imagined obstacles
– Obstacles to sales
– Sales Objections
Handling customer Objections

 Start with the highest expectations

 Avoid conceding first
 Be sure the customer understand the value of a
concession
 Makes concession in small amount
 Admit mistakes and make corrections willingly
 Be prepared to withdraw a mistake
 Do not advertise the willingness to concede
Methods of Handling customer
Objections

 Superior feature method

 Yes..but method
 Reverse English method
 Indirect denial method
 Pass out method
 Comparison method
 Direct denial method
 Another angle method
 Narrative method
 Testimonial method
 Question or why method
 Closing sales
– Caution method
 Product availability
– Implied consent method
 Satisfied customer; place order at the end
– Special induced method
 Reminds about the promotional scheme
– Direct order method
– Choice narrowing method
Follow up action

 Advantages
– Evaluate competitive sales moves
– Generate additional leads from satisfied
customers
– Cross-selling and upselling
– Good will
– Repeat business
Exercise

 The Mordex Photocopier Company

Selling Skills
 Selling skills

Problem Solving skills Communication Skills

Selling skills

Negotiation Skills Listening Skills

Conflict Management
and resolution skills
Selling Skills

 Communication Skills
– Salesperson’s behaviour
 Truth of words
 Predictability of action
 Competency
 Intent or empathy
 Likeability
 Communication Skills
– Avoid using big, confusing jargon or expressions
– Personal appearance
– Postures
– Gestures
– Facial Expressions
– Eye contact
– Space distancing
– Empathy
Listening Skills
 Content listening
– Understand and retain the speakers message
– Information flows from the speaker to the listener
 Critical listening
– Understand and evaluate the meaning of the speakers message at
several levels
 The logical level of the argument
 Strength of the evidence
 Validity of the conclusions
 Implications of the message for the customer
 The speakers intention and motives
 Omission of relevant data
 Emphatic listening
 Understand the speaker’s feelings, needs and demands
The Process of listening
Attendance

Interpretation

Remembrance

Evaluations

Response Action
The Levels of listening
Feedback

Paraphrasing

Clarifications

Emphatic Listening

Active listening
Barrier to listening

 Sheet to be given to students

– Bad/Good listener
 Exercise
Conflict Management

 Methods of resolution
– Competing
– Collaboration
– Avoiding
– Accommodating
– Compromising
 Must read
– Fisher and Ury – Getting to yes( Negotiation)
– Stephen Covey – the seven habits of highly
effective people ( Problem solving)
Negotiation Skills

 Fisher and Ury

– Separate the people from the problem
– Focus on interest on positions
– Invent options for mutual gains
– Insist on objective criteria
 BATNA = best alternative to a negotiated agreement
Bargaining Tactics

 Questions to ask oneself before making an offer

– Should I give the first offer?
– Should I start with the high offer?
– Should my preparation lead to a closing?
– Should I sketch an agreement from the beginning?
– Should I construct a framework for agreement?
– Should I move towards the commitment gradually?
Tactical Consideration and Strategies

 Let the other party have its own way

 Visit the Balcony
 Step to their side
 Reframing rather than rejection
 Let them take ownership
 Educating them to senses
Negotiation Tactics
 Acting crazy  Wet noodle
 Auctioning  Veiled threat
 The good guy- Bad guy routine  Lets split the difference
 Budget bogey  Play the Devils advocate
 Get a prestigious ally  Surprises
 Escalation
 The well is dry
 Limited Authority
 Whipsaw/auction
 Divide and conquer
 Sticks and Stones
 Deadlines
 Get Lost/Stall for time
 Take it or leave it