What is Personal Selling?

Selling is just one of many marketing components

Personal selling:
Personal communication Persuasive Need fulfillment Goods Services and ideas

Everybody Sells!
When have you sold? Who was involved? What did you sell? What did you need to consider?

Where does selling fit in a business organization?

VP Marketing Marketing Manager Marketing Mix The 4 Ps of Marketing Promotion Strategy
Advertising Personal selling Sales promotion Other communication

Types of Sales Jobs

Selling in Retail
A retail salesperson sells goods or services to consumers for their personal, non-business use.
Direct

Sellers

Face-to-face (or telephone) sales to consumers who use the products for their personal use.

Types of Sales Jobs

Selling for a Wholesaler
For resale For use in producing other goods

For use within an organization

Selling

Works for the firm who manufacturers the product This is usually one of the most prestigious jobs to hold

for a Manufacturer

A Continuum
The complexity and difficulty of these seven sales job categories increase as they move left to right.

Sales Clerks

Sales Reps

Technical Reps

Busines s Solutio ns Special ists

Key Accoun t Reps

Top Sale s Exec OrderGetters 30, 000

Order-Takers 10000

A Salespersons Career Path

Why Choose a Sales Career?

There are a wide variety of sales jobs available
The freedom of being on your own The opportunity for advancement in a company The rewards from a sales career can be substantial

Rewards
Non-financial
Intrinsic reward of knowing youve skillfully delivered a sales presentation Quicker path to managing large amounts of responsibility Different kinds of incentives e.g. trips, gifts

Financial
Higher average than that of other workers at the same level within the organization Based upon performance

What is Relationship Selling?

Build and maintain a longterm relationship
Non-adversarial Non-manipulative Consultative Partnering Problem-solving

Customer Relationship Process: maintain a customer focus

Analyze needs

Maintain and grow the relationship

Customer

Recommend solution and gain commitment

Implement the recommendation

Building Relationships

through Selling

The sales process is a sequential series of actions

Prospecting Pre-approach Approach Presentation Trial close Objections Meet objections Trial close Close Follow-up and service

Ten Important Steps

1.

2.

3.

Prospecting a. Locating b. Qualifying prospects Preapproach a. Appointment b. Objective setting for the call c. Know your customer d. Whats customers benefit? e. Presentation strategies Approach a. Greeting b. Breaking Ice c. Pre presentation talk

4. Presentation ` Uncovering needs Relating product benefits to needs Demonstration Dramatization Visuals Proof

5. Trial close a. Hows that ? b. What do you feel ? c. Your comments please. 6. Objections a. Solicit questions b. Any excuse is objection 7. Handling Objections a. Answer all questions b. You know better

8. Trial close -2 Ask opinion again 9. Close Taking him to buy 10. Follow up and After sales service

What is Retailing?
Individual or organization that sells good or services to final customers for their personal, non-business use.
Key: The final customer

Career Opportunities
Financial rewards are excellent Straight salary Commissions Combination of salary & commission Non-financial rewards are many Excellent training programs Rapid assumption of responsibility Personal growth & development

The Retail Salespersons Role

Service is the key Working hard and knowing product and stock is necessary Personal selling is where its at! Accurately completing transactions is a must

Basic Retail Selling Process

The Five Rights of Retailing
Right Product Right Price Right Place (location and distribution) Right Time Right Quantity
product

customer
company salesperson

Whats Different About the Business Market?

The business market

Derived, inelastic and joint demand Industrial, producer, organizational

Businesses buy for three purposes:

To make other goods and services To sell to consumer or other users To conduct organizations operations

Types of Business Purchases

New Task Straight Rebuy Modified Rebuy

Please provide a business example for each!

Requests for Proposals [RFPs]

What are they? When are they used? What is the process? How do you respond?

Who Makes the Decisions Around Here?

Understanding the business buying process
The eight steps are: see text pg 281

Key: Finding and spending time with the right person

Persons with influence over buying decision Purchasing agent

The Purchasing Decision: Who makes it?

Lets think of a business buying situation where there are many people who influence the buying decision. The purchase of a company car! The Salesperson needs to take into consideration who will influence the purchasing decision. These influencers are:

Decision makers to include:

Initiator Deciders Influences Buyers Gatekeepers Users What is the influence of each of these?

Selling Services is Challenging!

Characteristics of Services Intangibility Inseparability Heterogeneity Perishability and fluctuating demand Lets try selling a business service! You are a DJ selling your music service to a wedding planner. How would you proceed?

Nonprofit Selling
No profit motive! Most nonprofit organization sell services rather than intangibles, such as:
Cultural: museums, zoos Religious: temples, mosques Social cause: civil rights, smoking Political: political parties, politicians

Non-profit Selling
Nonprofit clients Nonprofit contributors Importance Impact

What do Professional Salespeople need to know.

Sources of Sales Knowledge Knowledge Builds Relationships Know Your Customers Know Your Company Know Your Product Know Your Resellers A FABulous Approach to Buyer Need Satisfaction

Knowledge Requirements
Advertisement and Sales Promotional Tools Pricing Your Product Know Your Competition, Industry, and Economy Personal Computers and Selling How knowledge of Technology Enhances Sales and Customer Service Global Technology Provides Service Others????

Sources of Sales Knowledge

Sales training Experience Literature (trade magazines) Established Business databases ( and they are???) Colleagues, Customers World Wide Web (lets check out
sites on text pg 57)

Knowledge Builds Relationships

Knowledge increases salespersons confidence. Knowledge increases buyers confidence in salesperson. More knowledge, more sales, more relationships.

Know Your Customers (Prospects) Company

General Company Information:

Company history, growth and accomplishment Buying policies and procedures Warehouse facilities Mission statement and values How they plan to use your product Their wants and needs Their partners

Lets think of a your Buying Customer

What information do we need to know about this customer? Where could we find out this information? Lets do it now!!!!!

Know Your Selling Company: The Supplier

General Company Information:
Company history, growth and accomplishment Selling policies and procedures Production facilities Mission statement Service facilities In-house Research and Development Other Customers

Know the Product you are selling

Product knowledge may include:
Performance data Any testimonials??? Physical size and characteristics (specifications) How the product operates Specific features, advantages, and benefits of the product How well the product is selling in the marketplace Other information?????

Know Your Resellers

(If it is a product that is being resold?)
Understand the channel of distribution. Know as much about each channel member as possible, including the preferences of each channel members customers. Describe a channel that includes a supplier, reselling buyer, and consumer. The buyer, in this case, is selling a product intact to the consumer who is the end user Please provide an example of the seller, buyer, product and consumer for this situation.

Industrial Selling / Buying

Understand the channel of distribution. Know as much about each channel member as possible, including the preferences of each channel members customers. Describe a channel that includes: A supplier who sells to a buyer who uses the purchased product to either make another product or to be used within its own operation. What is the difference between this channel and the previous one? Please provide an example of the seller, buyer, and product for this situation. Now, how can we expand this channel in both directions. Lets try now!

Differences between Industrial Selling and Reselling

What are they? Do you understand the differences?
How are the wants and needs for the product different for the Business Buyers depending where they are positioned in the channel?

Know your Companys Advertising Plan

Main ingredients of a firms promotional effort.
Types of Advertising Differ:
National advertising Retail advertising Trade advertising Direct-mail advertising Internet advertising

Know your Companys Sales Promotion Plan

Consumer sales promotion Trade sales promotion Point-of-purchase (POP) displays Shelf positioning Shelf facings Planogram Software Premiums

Know your Companys product pricing strategy

Types of Prices Discounts lower the price Markup and profit Unit Cost Value an ROI

Know Your Competition, Industry, and Economy

Understand competitors products, policies, price, and practices. What is YOUR competitive advantage
Sources:
National Post Globe and Mail Canadian Business ACNielsen

How do Personal Computers assist your in your Selling?

Uses and Benefits Growing use as sales management tools More effective management Improved customer relations More efficient account control and servicing Improved accuracy

Top 10 PC Applications

Knowledge of Technology Enhances Sales and Customer Service Personal Productivity

Contact management Calendar management Automate sales plans, tactics, and tickets
Geographic information systems Computer-based presentations

Knowledge of Technology Enhances Sales and Customer Service

Communications with Customers and Employer
Word processing E-mail Fax capabilities and support Customer Order Processing and Service Support Sales Mobile Offices

Global Technology Provides Service

Increased worldwide interaction and distribution

Summary
Company knowledge includes information on a firms:
history development practices procedures
products distribution promotion pricing

Summary
Salesperson should be able to confidently discuss price, discounts, and credit policies with customers. Success in sales requires knowledge of the many technologies used to sell and service customers. Success requires knowledge of products, competitors.

ProspectingThe Lifeblood of Selling

Main Topics
The Sales Process Has 10 Steps Steps Before the Sales Presentation ProspectingThe Lifeblood of Selling Prospecting Guidelines The Prospect Pool The Referral Cycle

The Sales Process

The selling process has 10 important steps.

The Sales Process Has 10 Steps

Follow up The Close Trial close Meet Objections Determine Objections Trial Close Presentation Approach Pre-approach Prospecting
(including gathering leads and lead qualification into qualified prospects)

When????
Does a Lead become a Prospect!

Does a Prospect become a Customer!

ProspectingThe Lifeblood of Selling

Prospect: qualified person
Prospecting: identifies potential customer Lead: Suspect vs. Prospect

Qualifying a Prospect (from a lead)?

1. 2. The Three Determinants are:

3.

Qualifying A Prospect: The Techniques

Asking the referral for information Researching the company prospectus Keeping your industry knowledge up to date Speaking with non-competing salespeople

Successful Salespeople must prioritize their effort, time and resources

Determine prospect close-ability: Motive Why prospect buys Means Ability to buy

Opportunity Salesperson provide the opportunity to buy

Planning a Prospecting Strategy

Requires a strategy. Is a skill that can be constantly improved. Involves evaluating different methods.

Where to Find Prospects

Sources may be varied or few. Persons selling different services and goods might not use the same sources.

Prospecting Methods that Work!

In-class Activity
Your instructor will divide you into groups of two or three and assign each group a different method. Please take 15 minutes to prepare a presentation of this method that you will use to teach this method to your class. Provide a real Business situation for which this method would be effective!

Prospecting Guidelines
Three criteria:
Customize High potential customers Call back

Referrals used in most prospecting methods reputed to be the most effective

The Sales Funnel

Components of the Prospect Pool

The Referral Cycle

Obtaining referrals is a continuous process without beginning or end.

The Referral Cycle

The secret is to ask correctly during referral cycle: The preapproach contact phase The presentation Product delivery contact phase Service and follow-up contact phase
Dont mistreat the referral.