Personal Selling of Industrial Products

Personal Selling of Industrial Products

Anand G Khanna

SALES & MARKETING

• Purpose of organization is only one i.e to create / identify and satisfy the customers. We exist only for customers. The rest is process.

• Two functions generate revenue – Sales and Innovation. All other are costs.

• Business purpose is to meet the requirements of customer and delivery of satisfaction. The delight to the customer should be the ultimate endeavor of the organization.

SALES & MARKETING

• Goals are attained by being result oriented and not merely activity oriented. Non directed activity keeps busy but do not give results.

• Effectiveness is doing the right things and Efficiency is doing

things rightly. The former is essential as a Marketing activity and latter is selling activity.

• Marketing is preoccupying with the future and Sales and

Selling is with current scenario.

SALES & MARKETING

• The dimension of Marketing tasks are : New product, Market Analysis, Competitor Analysis, Technical Up gradation, Brand Management, New Opportunities, Promotion Concept, Sales Support, Training and Development, CRM, Interacting with CFTS (Cross functional team support) and Customer Financing.

• The dimension of Selling tasks are : Marketing Intelligence,

Customer Contact, Pre tendering and selling activity, Selling and Negotiations, Sales Management, Order Management, Offer Follow Up, Relationship Management, Order execution and Payment realization, After sales service and Complaint management.

SALES & MARKETING• The broad task of Sales Person are : Prospecting - searching for prospects

or leads, Targeting - deciding how to allocate their time among prospects and customers, Communicating benefits to derive edge for the product and services, Selling - approaching, presenting, answering and closing the sales, Servicing - providing various services to the customers – consulting in problems, rendering technical assistance, Information gathering – conducting market research and doing intelligence work., Allocating, deciding which customer would get what during shortages..

• The traits of a successful Sales Person are : Risk taking, powerful sense of

mission, problem solving bent, care for customer, careful planning, habitual wooer, compulsive need to win, high level of energy, abundance of self confidence, chronic hunger for money, state of mind that regard each objection, resistance or obstacle as a challenge.

SALES & MARKETING

Your Journey begins

Business Cards How does a person, business, or organization

adequately describe themselves in a 3.5 x 2 inch space?

One of the first things you must have done on joining is get a card printed

Brochure Describing a Place or Organization (Informs, Educates, Persuades)

PERCEPTIONS ABOUT SELLING• “Sales people are born and not made.”• “Sales people must be good talkers.”• “Selling is a matter of knowing the right

techniques or tricks.”• “A good salesperson can sell ice to an Eskimo.”• “People generally do not want to buy.”

TRAITS OF “WINNING SALES PEOPLE”• Desire to succeed

• Continually seek self-improvement

• Accept responsibility

• Have mental toughness

SELLING PROCESS• PRE-TRANSACTIONAL PHASE (Prospecting,

Qualifying, Precall Planning)• TRANSACTIONAL PHASE (Approach, Needs

Discovery, Presentation, Handling Objections, Closing)

• POST-TRANSACTIONAL PHASE (Service and Follow-up)

The Sales Process

Prospecting/ Qualifying

Preapproach / Planning

Presentation

Handling Objections

Closing the Sale

Approach

Follow up

Identifying Needs

Identifying Needs

Lead Generation Triggered by a sales call, by a customer’s response to direct mail, or by a request for information through a Web site, an initial contact with a prospect is made.

Lead Qualification Potential customer is screened: the prospect’s need for the product or service, buying interest, funding, and timeframe for making the purchase.

Bid and Proposal Preparation of bid and proposal to meet customer’s requirements (a complex task for large technical projects)

Negotiations and Sales Closure

The negotiation of prices, terms, and conditions, followed by agreement on a binding contract.

Fulfillment For standardized product or service, delivery of offering to customer. Configuration, customization, and installation for more complex sales.

Customer Care and Support Post-sale problem resolution, customer guidance, and ongoing contact to ensure customer retention, loyalty, and growth.

SOURCE: Adapted from Lawrence G. Friedman, Go To Market Strategy: Advanced Techniques and Tools for Selling More Products, To More Customer, More Profitably (Boston: Butterworth-Heinemann, 2002), pp. 234-236.

Typical Sales Cycle: Tasks Performed Throughout the Sales Process

SELLING PROCESS• Prospecting– External Sources

• Direct Inquiries• Referrals• Directories• Cold Canvassing

– Internal Sources• Order lists• List of organizations / persons who approached thr company

for as a Channel partner• List of persons who attended meetings (Influencers)

SELLING PROCESS• Qualifying– Qualified Customers have a need, have the

authority to buy, and can afford to buy

SELLING PROCESS• Precall Planning– What do I want to accomplish?– What do I know about the prospect?– Where can I find information?– What am I going to say?

SELLING PROCESS• Precall Planning--”What do I want to

accomplish?”– determine information on historical inventory

levels.– determine who is involved in the purchasing

decision.– arrange for a follow-up meeting– agreement to a order / or trial-run purchase

SELLING PROCESS• Precall Planning--”What do I know about the

prospect?”– Size of business/products sold/markets served– Key personnel– Buying routines/purchasing process– Present supplier(s)/volumes purchased– Future plans

SELLING PROCESS• Precall Planning--”Where can I find

information?”– Ask prospect directly– Observe business facilities– Ask other company salespeople– Ask current customers– Ask competitors

SELLING PROCESS• Precall Planning--”What am I going to say?”– The Sales Mix Model• Presentation Pace• Presentation Scope• Two-way Communication

SELLING PROCESS• The Approach– Securing Appointments– Establishing Rapport

SELLING PROCESS• “Why is the approach important?”– It can help capture the buyer’s attention– It can help to establish a harmonious atmosphere– It serves as a good transition to the presentation– It can help in need determination

PERSONAL SELLING PROCESS• The Approach– Types of Approaches• Introductory Approach• Product Approach• Consumer Benefit Approach

PERSONAL SELLING PROCESS• The Presentation– Focus on Benefits, not just Features– Keep it Simple– Talk the Prospect’s Language– Stress on the Application– Get the Prospect Emotionally Involved– Seek Credibility

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Handling customer objections

• Start with your highest expectations• Avoid conceding first• BE sure the customer understands the VALUE of a concession• Make concessions in small amounts• Admit mistakes and make corrections willingly• BE prepared to withdraw a concession• Avoid ‘split the difference’ strategy• Do not advertise willingness to concede

Suggested by SMITH

Selling skills

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Selling Skills

Listening Skills

(Questioning Skills)

Conflict management and resolution skills

Negotiation and bargaining

skills

Problem solving skills

Effective communication

skills

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Communication process

Managing body language:• Personal Appearance• Posture• Gestures• Facial Expressions• Eye Contact• Space Distancing

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Process of listening

Attendance

Interpretation

Evaluations

Remembrance

Response Action

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Levels of listeningFeedback

Paraphrasing

Emphatic listening

Clarifications

Active Listening

Barriers to Listening !

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Negotiation skills• Situation and timing for negotiations• Formulation for a bargaining strategy• The theory and strategy of principle negotiations- separate the people from the problem- focus on interests, not on positions- invent options for mutual gains- insist on objective criteria

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Problem solving skills

• Habit I: be proactive• Habit 2: begin with an end in mind• Habit 3: put first things first• Habit 4: think win–win• Habit 5: seek first to understand, then to

be understood• Habit 6: synergize• Habit 7: renewal

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Define the problem

Generate alternative solutions

Decide the solution

Implement the solution

Evaluate the solution

Problem solving process

Six Cylinders of SellingExternal Factors of a Company• Economy• Industry• Product • Market Internal Determinants for a Company• Selling Skills • Attitude

Contact

Prof . Anand G Khanna Marketing Management Area

Chairman (MDP & Consulting) Institute of Management Technology Raj Nagar, Ghaziabad 201001 ( UP )

Tel : 0120-3002274 Mob : 98116 99153 akhanna@imt.edu

anandkh84@gmail.com