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
Personal Selling
– 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
Salesmanship
– 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
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. Inside Outside Taker – “waits on customer” –
sales clerk behind the counter
2. Delivery Salesperson – delivering the product
3. Route or Merchandising Salesperson –
Operates as an order taker but works in the field
4. Missionary
5. Technical Salesperson
Sales Positions
Group B ( developmental selling)
1. Creative salesperson of Tangibles
– Vacuum cleaners
2. Creative Salesperson of Intangibles
– Insurance
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
– Intensify the prospects attention -> strong interest
Kindling desire
– Ready-to-buy point
– Obstacles/Objections
Inducing Actions
– The “right time”
Building satisfaction
– Reassurance
“Buying Formula” Theory of Selling
Need ( or problems) -> solution -> Purchase
Need -> solution -> Purchase-> Satisfaction
Need -> Product service -> Purchase-> Satisfaction/
and/or Dissatisfaction
trade name Adequacy
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 Competitors
Knowledge Knowledge
•History
•Finances •Industry structure
•Management •Market Share
•Size •Market Behaviour
•Policies and Salesperson •Other policies
•Procedure Knowledge
universe
The Selling Process
Pre sale Pre-approach Approach to the
Prospecting
Preperation B4 the interview customer
Handling customer Sales
Follow up Closing the sale
Objections presentations
action
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
– Searching out potential accounts
Names of prospects
– Qualifying prospects and determining probable
requirements
Additional information sources to qualify
– Relating company products to each prospects requirements
Strategy for approaching each prospect
50 potential prospects 50 potential prospects
15 qualified prospects 25 qualified prospects
6 interviews 17 interviews
1 sale 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 Feature Advantage Benefit
Washing Machine
Passenger Car
MBA Programme
Life Insurance
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
Organized Presentation
– Enough scope to word the presentation but on the lines of
the company policy and systems
– Flexibility
– New and old salespeople
Tailored Presentation
– Business to business selling
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
– Caution method
Product availability
– Implied consent method
Satisfied customer; place order at the end
– Special induced method
Reminds about the promotional scheme
– 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 Skills
– Salesperson’s behaviour
Truth 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
Critical listening
– Understand and evaluate the meaning of the speakers message at
several levels
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
Emphatic listening
Understand the speaker’s feelings, needs and demands
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 Wet noodle
Auctioning Veiled threat
The good guy- Bad guy routine Lets split the difference
Budget bogey Play the Devils advocate
Get a prestigious ally Surprises
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
