Personal selling

1. www.studygalaxy.com

2. Buying Decision Process
Problem or Need Recognition
Information Search
Evaluation of Alternatives
Purchase Decision
Post Buyer Behaviour
The buying is either
- Routine Decision Making
- Limited Decision Making
- Extensive Decision Making

3. A definition of personal selling
“ The process of persuasion leading to a continuing
trade arrangement, initiated and perpetuated at
either a personal or impersonal level but commonly
confined to oral representation supported by visual
aids” (Institute of Marketing).

4. Selling and the promotional mix
Personal selling is one element of the
promotional mix.
In business to consumer markets (B2C) personal
selling and advertising are the main elements of
the mix.
Personal selling becomes more important when
The product is more complex
The product is more expensive
The product is bought infrequently
The customers is another business i.e. B2B markets

5. Types of Communication
Promotion
Personal Selling AdvertisingPublic Relations
Product Place Price
Sales Promotion Direct Marketing

6. Personal selling v advertising
% of
Promotional
Effort
Complex / Expensive GoodsSimple / Inexpensive Goods
Relative importance of the two main elements in
the promotional mix
Personal
Selling
Advertising

7. B2C transactions where
personal selling is….
Very important
Motor vehicles
Fitted kitchens
Double glazing
Security systems
Conservatories
Shopping and speciality
goods
Unimportant
Food
Grocery
Clothing
CDs/DVDs
Books
i.e. Convenience goods

8. The essence of personal selling
The presentation of products and associated
persuasive communication to potential clients
Involves two way, persuasive communication
The aim is to match customer needs with the
goods/services on offer
Ultimate objective: to make a sale

9. Selling involves..
Creating positive attitudes towards a product or
service
Motivating people to want to purchase a product or
service
Convincing people that they will be acting wisely if
the buy
Closing/clinching a sale
Reassuring people that they have acted wisely in
making a purchase

10. The objectives of personal selling
To increase the volume of sales
To increase sales revenue
To reduce the costs of sales
To increase the number of distribution outlets
To prospect for new customers
To increase sales per customer
To reduce the number of customers with minimum
viable orders

11. The role of the sales
representative
To gather information about customer wants
To communicate information especially on the
advantages of the product to the customer
To prospect-look for new opportunities. Prospecting is
concerned with locating potential customers
To display and demonstrate the product
To advise customers
To advise on stock levels
To progress orders
To build goodwill
To deal with complaints
To close the sale - i.e. to secure a sale
To provide after -sales service
To collect orders from customers
In some cases, to make deliveries

12. Types of salespeople
Order takers - primary responsibility to respond to
customer orders
Customer service providers - provide personal
assistance to existing customers
Missionaries - primary task is to increase business with
information and advice
New business salespeople - aim to win new business
Organisation sellers - build up and maintain
relationships with major customers

13. Personal selling skills
Interpersonal qualities
Adaptability
Self motivation
Problem solving capabilities
Product knowledge
Customer knowledge
Presentation skills

14. Sales reps require information
on…
The product
Customers
Territory
Techniques of selling
Promotional material
His/her own organisation
Targets

15. Five Ps of personal selling
Preparation- preparation of material for use
Prospecting - locating potential customers
Pre-approach - tailoring material for the “prospect”
(the potential buyer)
Presentation - delivering the presentation
Post sale support - re-enforcing and confirming the
customers choice

16. Sales representatives - typical
tasks

17. Steps in the sales process (1)
Prospecting - locate potential customers.
Pre-approach - gather information on the product
and the prospect (the potential buyer).
The approach - face to face meeting
to create favourable impression
to verify the facts
to set the stage for the rest of the meeting

18. Steps in the sales process (2)
The presentation:
transmit the promotional message.
describe the product.
highlight the advantages.
cite examples of customer satisfaction.
demonstrate to reinforce the message.

19. Steps in the sales process (3)
Handling objections - this is an opportunity to
present additional points.
Closing - the critical stage in which the salesperson
seeks to gain the buyer’s commitment to purchase.
The follow-up: to make sure the buyer is satisfied.

20. The Sales Process
Prospecting/ Qualifying
Preapproach/ Planning
Presentation
Handling Objections
Closing the Sale
Approach
Follow up
IdentifyingNeeds
IdentifyingNeeds

21. Personal selling process (1)
Prospecting
 Identify the potential customers
 Making warm contacts rather than cold calling
• Leads - prospective customers.
• Prospects – before a contact, find they with
potential.
• Qualified prospects – after a contact, find they with
great potential.

22. Sources of prospects

23. Personal selling process (2)
Preparation and planning
 It is to look for:
• Customer’s buying criteria and needs
• Customer organisation’s purchasing structures
• The application of the product and the features and
benefits required.

24. Personal selling process (3) Initial
contacts
 It is to build up mutual rapport, respect and trust
between the buyer and seller before the formal and
serious business discussion.
 Two approaches:
• Initial phone call for a meeting appointment
• Could calling/visiting for a lucky meeting
arrangement

25. Personal selling process (4) -Sales
presentation
 It is to show how the product offering and the
customer’s needs match.
• Stimulus response.
• Formula selling.
• Need satisfaction.

26. Sales Presentation Methods/Strategies
Firms have developed different methods / styles / strategies of sales
presentation
 Stimulus response method / canned approach.
• It is a memorised sales talk or a prepared sales presentation.
• The sales person talks without knowing the prospect’s needs.
E.G. Used by tele-marketing people
 Formula method / formulated approach.
• It is also based on stimulus response thinking that all prospects
are similar.
• The salesperson uses a standard formula – AIDA (attention,
interest, desire, and action).
• It is used if time is short and prospects are similar.
• Shortcomings are: prospects’ needs are not uncovered and uses
same standard formula for different prospects.

27. Sales Presentation Methods contd..
Need – satisfaction method
• Interactive sales presentation
• First find prospect’s needs, by asking questions and
listening
• Use FAB approach: Features, Advantages, Benefits
• Effective method, as it focuses on customers

28. Using Demonstration
Sales presentation can be improved by
demonstration
Demonstration is one of the important selling
tools EGs: Test drive of cars; demonstration of
industrial products in use
Benefits of using demonstration for selling are:
• Buyers’ objections are cleared
• Improves the buyer’s purchasing interest
• Helps to find specific benefits of the prospect
• The prospect can experience the benefit

29. Personal selling process (5)
Handling typical objections
 Typical objections:
 Your: company, product, service,
pricing;
 You; you are not competitive enough
 I can’t afford it; I don’t need it
• Ask the objection back.
• Agree and counter.
• Boomerang.
• Feel, felt, found.
• Denial.

30. Personal selling process (6) Types
of negotiations
• Co-operative or win-win - trading concessions
results in a better deal for both parties.
• Competitive negotiation - hard bargain focused on
short term gain.

31. Personal selling process (7) Types
of sales closure
 It has reached the point where the customer agrees
to purchase.
• Alternative close.
• Assumptive close.
• Time pressure close.

32. Personal selling process (8) Follow-up and
account management The role of personal
contact

33. Excel Books2– 33
Block I : Basics of Sales Management
Personal Selling
Dr. S L Gupta
•Personal Selling and Distribution
• Sales force has a significant role to play role in coordinating, liaisoning
and advocating the product’s utility to the end user. The end result of any
distribution effort is the ready availability of the product to the customer,
in the right quantity and at the right place.
•If the product is not available when it is actually required by the
customer, then the whole business activity and all related efforts are
rendered useless.
Personal Selling and Product Promotion
•The sales force actually stimulates and generates enough interest in the
customer and helps him make the final decision to buy the product.
• Without this effort the whole exercise of advertising and public
relations would be futile.
• Advertising and public relations actually support the efforts of the sales

34. Excel Books2– 34
Block I : Basics of Sales Management
Personal Selling
Dr. S L Gupta
Presentation and Demonstration
•A good presentation is as important as a good product.
•The significance of a good presentation of the product can be gauged from the
fact that many a time an attractively packed presentation is sufficient to sell the
product.
•A good presentation can be in the form of attractive packaging and display,
conspicuous placement of the product in the display window, etc. A good
presentation also includes the interior decoration of the shop and appearance of
the article.
Close the Sale ( Get the sales order )
This is the last stage of any sales presentation. The whole exercise becomes useless
if the sale does not take place. Therefore, it is the most crucial stage for a
salesman. The main aim of the close is to convince the prospect to sign the order
form or to place an order immediately rather than in the future.

35. Negotiation
Salespeople, particularly in business to business selling, need
negotiating skills
When to negotiate?
(a)When the buyer puts certain conditions for buying to the seller
(b)When agreement between the buyer and the seller is needed
on several factors
(c)When the product is customised
(d)When the final price is to be decided
How to prepare for negotiation?
(a) planning, (b) building relationship,
Styles of negotiation
(a) I win, you lose, (b) Both of us win (or win-win style), (c) You
win, I lose, and (d) Both of us lose

36. Key Learnings
For understanding psychology in selling, study consumer
or buyer behaviour, buying process and situations
Salespeople are given knowledge of sales and relevant
marketing policies in order to increase their self-
confidence and sales, and meet customers’ expectations
Typical steps in the sales process include prospecting and
qualifying, pre-approach, approach, presentation and
demonstration, overcoming objections, trial close /
closing the sale, follow-up and service
Salespeople should know when to negotiate, how to
prepare for negotiation and which style of negotiation to
use

37. Excel Books2– 37
Block I : Basics of Sales Management
Personal Selling
Dr. S L Gupta
Changing Face of Personal Selling
1. Value Sharing: The salespeople share the same values as their
customers and perceive the customer’s needs with the sole view to
serve them better.
2. Relation Building: A value-based relationship helps the
salespeople to constantly mobilize resources and modify the end
product by catering to the specifics of the buyer. This culminates in
building long-term relationships.
3. Role Playing: The salespeople, in personal selling, go far beyond
realizing sales volume. They act as consultants to their prospective
customers constantly advising them of new products.
4. Changing Approach: personal selling comes in a package
containing the inputs of the experts from different areas such as
maintenance, installation, trouble shooting, delivery staff, sales
personnel, etc.