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Personal SellingPersonal Selling

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Advantages of Personal Selling

• Provides a detailed explanation or demonstration of product

• Message can be varied to fit the needs of each prospective customer

• Can be directed to specific qualified prospects

• Costs can be controlled by adjusting sales force size

• Most effective in obtaining sales and gaining satisfied customers

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Personal Selling

Customers are concentrated

Customers are concentrated

There are few customersThere are few customers

Product is technically complex

Product is technically complex

Product is custom madeProduct is custom made

Product has a high valueProduct has a high value

Personal Selling is more important if...

Customers are geographically dispersed

Customers are geographically dispersed

There are many customersThere are many customers

Product is simple to understand

Product is simple to understand

Product is standardizedProduct is standardized

Product has a low valueProduct has a low value

Advertising & Sales Promotion are more important if...

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Relationship Selling

A sales practice that involves

building, maintaining, and

enhancing interactions with

customers in order to develop

long-term satisfaction through

mutually beneficial

partnerships.

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Relationship Selling

Focus:Focus:

BuildingBuilding

MutualMutual

TrustTrust

Long-TermLong-TermValue-Added Value-Added Benefits to Benefits to

BuyerBuyer

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Relationship Selling vs. Traditional Selling

Sell advice, assistance, counsel Sell advice, assistance, counsel Sell products

TraditionalTraditionalPersonal SellingPersonal Selling Relationship SellingRelationship Selling

Focus on closing salesFocus on closing sales

Limited sales planningLimited sales planning

Discuss productDiscuss product

Assess “Product-specific” needsAssess “Product-specific” needs

“Lone wolf” approach“Lone wolf” approach

Pricing/product focusPricing/product focus

Short-term sales follow-up Short-term sales follow-up

Focus on customer’s bottom lineFocus on customer’s bottom line

Sales planning is top prioritySales planning is top priority

Build problem-solving environmentBuild problem-solving environment

Conduct discovery in scope of operationsConduct discovery in scope of operations

Team approachTeam approach

Profit impact and strategic benefit focusProfit impact and strategic benefit focus

Long-term sales follow-up Long-term sales follow-up

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Sales Process

The set of steps a

salesperson goes through in

a particular organization to

sell a particular

product or service.

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Steps in Personal Selling1. Prospecting

2. Preapproach

3. Approach

4. Presentation and Demonstration

5. Handling Objections & Queries

6. Closing

7. Follow-up

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Steps in the Selling Process

Generate LeadsGenerate Leads

Qualify LeadsQualify Leads

Probe Customer NeedsProbe Customer Needs

Develop SolutionsDevelop Solutions

Handle ObjectionsHandle Objections

Close the SaleClose the Sale

Follow UpFollow Up

Basic StepsBasic Stepsin thein the

Personal SellingPersonal SellingProcessProcess

Basic StepsBasic Stepsin thein the

Personal SellingPersonal SellingProcessProcess

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Generating Leads

Cold CallingCold CallingAdvertisingAdvertising PublicityPublicity Direct Mail/TelemarketingDirect Mail/

Telemarketing

Trade Shows/Conventions

Trade Shows/Conventions

Web Sites/Internet

Web Sites/Internet ReferralsReferrals NetworkingNetworking

Company Records

Company Records

Sources ofSources ofSales LeadsSales LeadsSources ofSources of

Sales LeadsSales Leads

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Cold Calling

A form of lead generation in

which the salesperson

approaches potential buyers

without any prior knowledge

of the prospects’ needs or

financial status.

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Qualifying Leads

Recognized NeedRecognized Need

Buying PowerBuying Power

Receptivity & Accessibility

Receptivity & Accessibility

Characteristics ofCharacteristics ofQualified LeadsQualified Leads

Characteristics ofCharacteristics ofQualified LeadsQualified Leads

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Probing Needs

Product or serviceProduct or service

Salesperson must knoweverything

about...

Salesperson must knoweverything

about...

Customers and their needsCustomers and their needs

CompetitionCompetition

IndustryIndustry

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Needs Assessment

A determination of the

customer’s specific needs

and wants and the range

of options a customer has for

satisfying them.

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Developing and Proposing Solutions

Sales ProposalSales Proposal

Sales PresentationSales Presentation

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Handling Objections

Handling Handling ObjectionsObjections

Handling Handling ObjectionsObjections

Use the objection to close the sale

Use the objection to close the sale

Anticipate specific objections

Anticipate specific objections

View objections as requests for information

View objections as requests for information

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Closing the Sale

Closing Closing the Salethe Sale

Closing Closing the Salethe Sale

NegotiateNegotiate

Keep an open mindKeep an open mind

Look for customer signals

Look for customer signals

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Following Up

ResponsibilitiesResponsibilitiesinin

Following UpFollowing Up

ResponsibilitiesResponsibilitiesinin

Following UpFollowing Up

Employees are trainedEmployees are trained

Goods or service performas promised

Goods or service performas promised

Ensure delivery schedules are metEnsure delivery

schedules are met

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Prerequisites of effective selling

Know your company

Know your Product

Know your competitors and their products

Know your Customers

Know the Process of Selling

Know yourself

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Qualities of a Good Salesman

• Physical Qualities

• Social Qualities

• Mental Qualities

• Moral Qualities

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Sales Management Responsibilities

Evaluate sales forceEvaluate sales force

Compensate and motivatesales force

Compensate and motivatesales force

Recruit and trainsales force

Recruit and trainsales force

Determine sales force structure

Determine sales force structure

Define sales goals andsales process

Define sales goals andsales process

Tasks of Tasks of Sales ManagementSales Management

Tasks of Tasks of Sales ManagementSales Management

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Defining Sales Goals

ClearClear

Sales GoalsShould Be...Sales GoalsShould Be...

PrecisePrecise

MeasurableMeasurable

Time SpecificTime Specific

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Quota

A statement of the individual

salesperson’s sales

objectives, usually based on

sales volume alone but

sometimes including key

accounts.

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Sales Force Structure

CommonCommonSalesSales

OrganizationOrganizationStructuresStructures

CommonCommonSalesSales

OrganizationOrganizationStructuresStructures

Individual client or account

Individual client or account

Market or IndustryMarket or Industry

Marketing FunctionMarketing Function

Product LineProduct Line

Geographic RegionGeographic Region

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Training the Sales Force

Training Training includes...includes...

Training Training includes...includes...

Nonselling dutiesNonselling duties

Industry and customer characteristics

Industry and customer characteristics

Product knowledgeProduct knowledge

Selling techniquesSelling techniques

Company policies and practice

Company policies and practice

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Compensation Plans

CommissionCommission

CombinationPlans

CombinationPlans

SalarySalary

BasicBasicCompensation Compensation

MethodsMethods

BasicBasicCompensation Compensation

MethodsMethods

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Compensation Plans

StraightCommission

StraightCommission

StraightSalary

StraightSalary

The salesperson is paid some percentage when a sale is made. The salesperson is paid some percentage when a sale is made.

The salesperson receives a salary regardless of sales productivity.

The salesperson receives a salary regardless of sales productivity.

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Effective Sales Leaders

Effective Sales LeadersEffective Sales Leaders......Effective Sales LeadersEffective Sales Leaders......

Are assertive Are assertive

Possess ego drivePossess ego drive

Possess ego strengthPossess ego strength

Take risksTake risks

Are innovativeAre innovative

Have a sense of urgencyHave a sense of urgency

Are empatheticAre empathetic

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PerformancePerformanceMeasuresMeasures

PerformancePerformanceMeasuresMeasures

Evaluating the Sales Force

Contribution to ProfitContribution to Profit

Calls per OrderCalls per Order

Sales or Profits per CallSales or Profits per Call

Call Percentage Achieving GoalsCall Percentage Achieving Goals

Sales VolumeSales Volume

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The Impact of Technology on Personal Selling

Laptop computer linkLaptop computer link

Mobile telephonesMobile telephones

PagersPagers

Personal data assistantsPersonal data assistants

E-MailE-Mail

InternetInternet

Sales ForceSales ForceAutomationAutomationSales ForceSales ForceAutomationAutomation