Course: Sales And Distribution Management (MKT 504) Session 3

The Selling Process

IN ST R U C TOR: D R . SH A ON SEN
EMAIL : s h a o n s e n .8 8@imth yd e r a b ad .e d u.in
 The Selling Process

Steps

Prospecting & Discovering &

Qualifying Pre–approach Approach
Understanding

Closing the Handling Sales Presentation

Follow-up Sale Objections & Demonstration

 The sequence of above steps may change to meet the sales situation in hand

 All kinds of selling do not necessarily pass through the eight steps of the selling process
shown above
 Prospecting
Prospecting is identifying prospective or potential customers
for the company’s products/services

Methods for identifying sales leads or leads (i.e. names and

addresses of prospects) are:
 consulting existing customers

 the company sources (website, ads., tradeshows, phones)

 external sources (suppliers, intermediaries, trade associations)

 salespersons’ networking

 publications like industrial directories

 cold canvassing

 standard industrial classification (SIC) system

 world wide web’s (WWW’s) search engines

 Qualifying

Companies qualify sales leads to prospects

by contacting them by e–mails or on phone to
find their –

 interests (or needs)

 financial capacity, and
 ability to make a decision
After qualifying, the sales leads are
categorized as: Hot, Warm, or Cold
prospects
Process of Prospecting and Qualifying

Start with leads/probable prospects (using

methods for identifying sales leads).
From leads to qualified prospects (using
need, decision making, affordability criteria).
Identify hot prospects ( criteria :
sound finance, likely to buy).

Convert hot prospects to

customers (purchased the
company’s products / services).

Sales Funnel
Successful salespeople always keep the sales funnel full
 Pre Approach

Before approaching a prospect, a salesperson performs two tasks –

information gathering
planning the sales call
 Pre Approach
Information Gathering
Salespeople collect the prospective customers’ information like
location, type of business, purchase orientation and practices, & so
on
Sources of information include the Internet, trade magazines,
industrial directories, online information services, etc.
 Pre Approach

Planning the Sales Call

Whom to see?
Where to go?
What are the call objectives?
How to approach the prospect?
 Approach

 Make an appointment to meet the prospect

 Make a favorable first impression

‘Approach techniques’ to be used –

 Introductory statement
 Customer benefit statement
 Product
The purpose of approach is to gain the
prospect’s agreement to move forward to the
next step
 Approach
‘Approach techniques’ to be used –

Introductory statement –
 Meet and greet
 Break the ice
 Develop a favorable impression instantly
 An elevator pitch
 Approach
‘Approach techniques’ to be used –

Customer benefit statement –

 What’s there in for the buyer in the
product/service offerings
Example: ‘switch to our insurance plan to
avail an extra rupees 2 Lakhs more
coverage’
 Approach
‘Approach techniques’ to be used –

Product approach –
 Carry the product or a demo or a cut–out to make the prospective
buyer understand the features of the product easily

 Mostly applied when the product is either new or unique in the

marketplace
 Discovering & Understanding Buyers’ Needs

Customers buy products/ services to satisfy their needs or to

solve their problems
Salespeople uncover & know buyers’ needs by asking questions
Research based ‘SPIN Model’ suggests four types of questions –
 Situational questions – to know buyer’s current situation
 Problem questions – to discover problems or dissatisfaction
experienced by the buyer
 Implication questions – to find implications or consequences of
not solving the problem
 Need–payoff questions – to know the value or importance of the
solution to the problem – purpose is to develop the buyer’s desire
for a solution
Sales Presentation Methods

The Objective of sales presentation is to persuade the customer that the company’s
product/service being sold will meet his / her needs better than that of competitors

Salespeople can choose from the following sales presentation methods –

 Stimulus Response Method/Canned Approach

 Formula method / formulated method

 Need–Satisfaction method

 Consultative selling method (problem solving approach)

Sales Presentation Methods
Stimulus Response Method / Canned Approach –

 It is a memorized sales talk or a prepared sales

presentation
 The salesperson talks without knowing the
prospect’s needs
 This method is used by telemarketing people, door–
to–door salespersons, and for training new
salespeople with some changes
Sales Presentation Methods
Formula Method / Formulated
Approach From To
 This method is also based on stimulus A. Attention Rapport
response thinking
I. Interest Need
 Salesperson assumes that buyers can
be led through mental steps by using a D. Desire Solution
well-known formula – AIDA (attention,
A. Action Close
interest, desire, and action)
Sales Presentation Methods
Formula Method / Formulated Approach

AIDA (attention, interest, desire, and action)

 Awareness (A) – Grabbing attention of the prospect is

important as it determines how the later course of the
conversation will be
Example: Make a favorable statement on the client’s business
etc.
 Interest (I) – Identify the features or aspects of the product which
are exciting the prospect – roll the ball in that direction
 Desire (D) – It is now important to arouse a strong feeling of
want for the product in the prospect’s mind
 Action (A) – The sales person now wants to close the sale – so
needs to understand the prospect is willing to buy or not
Example: The sales person performs a trial close to find out the
reaction of the prospect – favorable or unfavorable – if favorable
– sales is closed; if unfavorable – further persuasion is required
 Sales Presentation Methods

Need – Satisfaction Method

 It is an interactive sales presentation – a creative form of selling

 Salesperson first uncovers prospect’s needs by asking questions and
listening
 He then makes a sales presentation by using FAB approach –
• Features, Advantages, Benefits
 It is an effective method, as it focuses on customers
Sales Presentation Methods
Consultative Selling Method / Problem–Solving Approach

 Buyers are aware of the problems but they do not know how to solve them
 Buyers want a solution within their budget to meet their strategic goals

 Used as a professional selling process in the 21st century – sales people or team
participates in fulfilling the strategic goals of the buyer
 Salespeople use cross–functional expertise – enables in–depth analysis of the
problem and formulate the effective solution
 Firms adopt team selling approach
 Sales team work in a collaborative/partnering relationship with the buying firm
 Used by software / consulting firms
 Demonstrating the Product
Sales presentation can be improved by demonstration

 Demonstration is one of the important selling tools

Examples : Test drive of cars; demonstrations of
industrial products in use at trade shows.
Benefits of using demonstration for selling –
 Buyers’ objections are cleared
 Improves the buyer’s purchasing interest
 Helps to find specific benefits needed by the
prospect
 The prospect can experience the benefits
 Handling Objections
Objections from prospective customers can take place during
presentations / when the order is asked

If objections are handled satisfactorily, they can result in sales

Two types of sales objections happen –

 Psychological / hidden objections – predetermined

ideas or beliefs – mental reservations
 Logical or real or practical objections – tangible
objections – pricing, quicker delivery etc.

Methods used for handling objections –

 For Psychological objections – ask questions to clarify
the customer’s thinking
 For logical objections – (a) ask questions, (b) turn an
objection into a benefit, (c) deny objections tactfully, (d)
show third-party certificates, (e) offer compensation
 Trial Close and Closing the Sale

‘Trial close’ checks the attitude or opinion of the

prospect, before closing the sale
If the response to trial close question is favorable, then
the salesperson should close the sale (i.e. ask for the
order)
If not, go back to presentation
 Trial Close and Closing the Sale
Some of the major closing techniques –

 Alternative–choice close – provide the prospect with a choice between two or more
models or items – Not between buying or not buying
 Minor points close – highlight the minor points of the product – which model you decided
to buy? Will you prefer paying on instalments? etc.
 Assumptive close – the sales person assumes that the sale is made – Who should the
bill be addressed to ? etc.
 Summary of benefits close – Follow – SELL sequence
• S – Show the feature
• E – Explain the advantages
• L – Lead into benefits
• L – Let the customer speak
 Trial Close and Closing the Sale
 T–account or balance sheet close – Draw a ‘T’ table – enlist all the benefits on the left –
enlist the drawbacks identified by the prospect on the right – compare benefits with
drawbacks – convince the prospect on the trade–off – attempt to close sale

Benefits
Drawbacks
(Vacuum cleaner)
• Time saving
• Less Efforts o Scarcity of more
• Ease of payment models
• Quick delivery

 Special–offer close – even after efforts of convincing the prospect, if the prospect still
shows resistance to buy – the sales person then can make some special offer to further
convince the prospect in purchasing the product – if you buy this refrigerator, I will
ensure you avail an extra 2% discount on it
 Trial Close and Closing the Sale
 Probability close –

• when the prospective buyer delays the decision making – ‘I will let you
know’
• the seller can unfold the real or hidden objections by asking – ‘ what is the
probability that you will be making the purchase by next week?’
• a response of 50% chance or more shows a good chance of the sales
to happen
• a response of less than 50% generally shows fewer chances of closing
sales

 Negotiation close – the attitude and style of negotiation of the sales person
determines the closure of the sales – can employ ‘both of us win’ style
 Follow-Up
 Job of a sales person is over after the closure of the sales or receiving the order

 Successful sales person follows up with the customer with a number of related task

 Necessary for customer satisfaction and building loyalty

 Successful salespeople follow–up in different ways –

 Check customer order – has the order reached the customer as promised
 Visit when the product is delivered
 Build long–term relationship
 Carry out account penetration
Success Factors in Selling

For success in selling, a salesperson should

possess certain characteristics and develop a set
of skills

Characteristics of an Effective Salesperson

 Burning desire
 Cooperativeness
 Empathy
 Positive attitude
 Discipline
 Technology savvy

Set of Necessary Skills

 Communication skills
 Listening skills
 Negotiation skills
 Communication Skills

 Communication is transmission of verbal & non-

verbal information between a salesperson and a
buyer

 Non-verbal communications include eye

contact, posture, gestures, facial expression,
and overall grooming

 For effective verbal communication, a

salesperson’s tone should be pleasant with
moderate pace of speech, using positive and
layman’s language
 Communication Skills

Listening Skills

 Listening is more important than talking

 Effective salespeople listen very attentively

and actively to what is said and unsaid

 Successful companies send their

salespeople to the training programs which
give importance to listening and speaking
 Negotiation Skills
Salespeople need negotiating skills
 Negotiations are needed under the following
circumstances –
 When the buyer puts certain conditions for buying to the
seller
 When agreement between the buyer and the seller is
needed on several factors
 When the product is customized
 When the final price is to be decided
 Steps needed to prepare for negotiation with customers –
 planning
 building relationship
 knowing the purpose
 Styles of Negotiation –
 I win, you lose
 Both of us win (or win-win style)
 You win, I lose
 Both of us lose
 References &
Acknowledgements

• Havaldar And Cavale, Sales And Distribution Management, 3rd ed.

• (Late) Prof. S. Badrinathan