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 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 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

Personal Selling

Salesmanship

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. 2. 3. 4. 5.

Inside Outside Taker waits on customer sales clerk behind the counter Delivery Salesperson delivering the product Route or Merchandising Salesperson Operates as an order taker but works in the field Missionary Technical Salesperson

Sales Positions

Group B ( developmental selling)

1.

Creative salesperson of Tangibles

Vacuum cleaners Insurance

1.

Creative Salesperson of Intangibles

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 desire

Intensify the prospects attention -> strong interest Ready-to-buy point Obstacles/Objections

Kindling

 Inducing

Actions satisfaction

The right time Reassurance

Building

 Buying

Formula Theory of Selling

Need ( or problems) -> solution -> Purchase Need -> solution -> Purchase-> Satisfaction Need -> Product service -> Purchase-> Satisfaction/ and/or Dissatisfaction Adequacy trade name 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 Knowledge History Finances Management Size Policies and Procedure Competitors Knowledge Industry structure Market Share Market Behaviour Other policies

Salesperson Knowledge universe

The Selling Process

Pre sale Preperation

Prospecting

Pre-approach B4 the interview

Approach to the customer

Follow up action

Closing the sale

Handling customer Objections

Sales presentations

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 Names of prospects

Searching out potential accounts

Qualifying prospects and determining probable requirements

Additional information sources to qualify Strategy for approaching each prospect

Relating company products to each prospects requirements

50 potential prospects 15 qualified prospects

50 potential prospects 25 qualified prospects

6 interviews 1 sale

17 interviews 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 Washing Machine Passenger Car MBA Programme Life Insurance Feature Advantage Benefit

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 Enough scope to word the presentation but on the lines of the company policy and systems Flexibility New and old salespeople Business to business selling

Organized Presentation

Tailored Presentation

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
availability customer; place order at the end about the promotional scheme

Caution method
Product

Implied consent method

Satisfied

Special induced method

Reminds

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

Truth

Skills

Salespersons behaviour
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 Understand and evaluate the meaning of the speakers message at several levels

Critical listening

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 Understand the speakers feelings, needs and demands

Emphatic listening

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 Auctioning The good guy- Bad guy routine Budget bogey Get a prestigious ally 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

Wet noodle Veiled threat Lets split the difference Play the Devils advocate Surprises