What is Personal Selling?

Promotion

Seller

Product Place Price Promotion Value

Integrated Marketing Communications Non-Personal Communications Personal Communications

Executing

Planning

Buyer

Promotion

Personal Communications

Executing

Seller

Product Place Price Promotion Value

Planning

Buyer

Types of Communication
Marketing Product Promotion Place Price

Personal Selling

Public Relations

Advertising

Sales Promotion

Direct Marketing

Objectives

Define Personal Selling The Selling Environment Types of Salespeople Rewards and Drawbacks The Sales Process

Definition

Personal Selling- is direct oral communication designed to explain how an individuals or firms goods, services, or ideas fit the needs of one or more prospective customers

(Source: Hoffman et al)

Types of Salespeople

Personal Selling Tasks

Order-getting Order-taking Supporting

The Selling Environment

Three Selling Environments

Telemarketing Over-the-Counter Selling Field Selling

(Source: Hoffman et al)

The Selling Environment

Telemarketing

(Source: Hoffman et al)

The Selling Environment

Over-the-Counter Selling

Usually conducted in retail outlets Order taker- is a salesperson who only processes the purchase that the customer has already selected

Order getter- is a salesperson who seeks to actively provide information to prospects, persuade prospective customers, and close the sales

Suggestion selling- occurs when the salesperson points out available complementary items in line with the selected item(s), in order to encourage an additional purchase
(Source: Hoffman et al)

The Selling Environment

Field Selling

Involves calling on prospective customers in either their business or home locations (be order takers or order getters) Professional Salespeople National Account Managers-highly skilled salespersons who call on key customers headquarters sites, develop strategic plans for the accounts, make formal presentations to top-level executives, and assist with all the product decisions at that level Missionary Salespeople- they do not seek to obtain a direct order from their customers, their primary goal is to persuade customers to place orders with distributors or wholesalers
(Source: Hoffman et al)

Support Salespeople- help the order-oriented salespeople-but they dont try to get orders themselves
(Source: Perreault and McCarthy)

The Sales Process

Prospecting/ Qualifying
Preapproach/ Planning

Identifying Needs

Identifying Needs

Approach

Presentation

Handling Objections

Closing the Sale

Follow up

Prospecting

What is the difference between a lead and a prospect?

A lead is a person or organization that might possibly have a need for the companys product or service A prospect is a lead that has been qualified in terms of need or want, ability to buy, authority to buy, accessibility.
(Source: Hite and Johnston)

Prospecting

Ability to Buy
The lead must have the ability to pay for the product or service How can the salesperson qualify the lead?

Rating service Financial status and credit rating Local credit agencies Noncompetitive salespeople Local banks Better Business Bureaus

May ask the lead if they can afford to buy what they want
(Source: Hite and Johnston)

Prospecting

Authority to Buy
In many firms the actual purchasing authority is not in the hands of the purchasing agent A buying committee often makes the buying decision, and the purchasing agent only carries out the committees mandate
(Source: Hite and Johnston)

Prospecting

Accessibility
The person with the authority to buy may be completely inaccessible Unless the person can be contacted, the lead does not become a prospect

(Source: Hite and Johnston)

Planning

The selling process should not be looked upon as a conflict between salesperson and prospect People dont always like to be sold, but PEOPLE LOVE TO BUY

When selling is approached as a conflict the worst is brought out in both the buyer and the seller
Selling should be approached as a problem-solving, helping situation
(Source: Hite and Johnston)

Planning

The sales presentation must be organized With organization most people will increase their sales The purpose of an organized sales presentation is to present ideas so systematically that they lead to action on the buyers parta purchase Most prospects are not organized to buy, they must be shown reasons for buying

(Source: Hite and Johnston)

Planning

Why Salespeople Should Plan Their Calls 1) Builds self-confidence 2) Develops an atmosphere of goodwill and trust will buyer 3) Professionalism 4) Increases sales due to preparedness

(Source: Futrell)

Planning

Developing the Presentation

Features vs. Benefits How to promote Benefits? Use of visual aids

(Source: Hite and Johnston)

Planning

The Organized Sales Presentation

Feature- Something important or outstanding that the manufacturer, provider, or seller has either included with, eliminated from, or made available in our product or services Benefit- What the feature will do for, or give to, the prospect

(Source: Huisken)

Planning

Acquiring Sales Opportunities

Once the sales presentation has been organized, the opportunity to make the presentation must be secured 1) Contact the correct person (one who can make the buying decision) 2) Contact the person at the most opportune time 3) Decide whether an appointment or a cold call is best 4) Know how to secure a sales presentation when making a cold call
(Source: Hite and Johnston)

The Approach

Purpose: Develop mutual trust and empathy

Key elements to building acceptance

1) Physical appearance 2) Ability to ask questions 3) Willingness to be a good listener 4) Skill in getting the prospects to talk about themselves or something of interest to them Offering a compliment on something the prospect has done
(Source: Hite and Johnston)

The Presentation

The general problem

The specific problem The companys product or service as the preferred solution The close

(Source: Hite and Johnston)

Objections

Why objections? Prospect may be afraid of purchasing the wrong type of product The salesperson should welcome objections

The most difficult prospect to handle is one who says no and gives no reason Objections should not be taken personally

(Source: Hite and Johnston)

Objections

Anticipating Objections The salesperson should anticipating objections Objections should never be ignored

Most of the time they should be answered immediately, but occasionally they should be put off
If the objections is not answered immediately, the prospect may hear little of what else is said
(Source: Hite and Johnston)

Objections

Types of Objections

1) Price 2) Product 3) Timing 4) Source 5) Service 6) Need

(Source: Hite and Johnston)

Closing the Sale

Viewed as part of the total selling process that will naturally occur if the salesperson meets the desires of the prospect Close- a question or action by the salesperson intended to evoke a favorable decision from the prospect

(Source: Hite and Johnston)

Closing the Sale

How to Close the Sale

Direct close: Asking for the order in a straightforward manner. Assumptive close: Ask for a minor decision, assuming the customer has already decided to buy.

Summative close: Provide the summary of all value added benefits that you are providing
Demonstration close Negative close Special concession close
(Source: Hite and Johnston)

Closing the Sale

Problems with Closing the Sale

1) Problems with the Prospect 2) Problems with the Salesperson

Closing the Sale

Problems with the Prospect

Prospects may be afraid to buy Industrial buyers often face greater risks that than the seller
Industrial buyer must consider:

1) Judge the supplier in terms of reliability, capability, and value 2) Companies budget 3) Goals of the firm 4) Capabilities of the equipment being considered 5) Complying with regulations 6) The buyers personal reputation as an effective purchaser
(Source: Hite and Johnston)

Closing the Sale

Problems with the Salesperson

1) Fear of rejection 2) Wrong attitude 3) Talking too much 4) Inadequate presentation 5) Improper prospecting

(Source: Hite and Johnston)

Follow Up

Good for repeat business Set delivery times Purchase terms Other details Reduce cognitive dissonance