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Preliminary Steps in the Selling Process
Sales Management
The Selling Process
PROSPECTING- Identify &
- QualifyPotential Customers
PREPARING- Pre-approach- Call Planning
PRESENTING- Approach
- Probe for needs- Convince the prospect
Handling Objections
Closing
Follow up
Step 1- Prospecting
“ Identifying potential customers & qualifying them to determine if they are valid prospects” Through:
Networking: an active process of acquiring new contacts
and cultivating existing onesDefine Target Market
• Networking
• Market surveys
Generate Sales lead
• Sales lead is a specific person or organization that might need a good/service
Qualify Prospects
• Product need
• desire to buy
• Financial resources
• Decision making authority
Step 1- Identifying Prospects• Present Customers• Former Customers• Cold Calling: making unsolicited Sales call• Spotters: people who identify & qualify sales leads• Directories & Mailing Lists• Prospecting Services: companies that provide specific
information on prospects.• Personal Contacts• Trade shows & Exhibits• Direct Marketing• Referrals: Techniques are
- “centre of influence approach "is when a person with information about other people or influence over them helps a salesperson identify good prospects.- Endless Chain Prospecting involves sales representative asking customers for names of friends or business associates who might need similar goods or services
Step 1- Qualifying Prospects
•Potential customers must be qualified for validity based on prospects:- Money- Authority- Need
Qualifying Checklist!
Will they buy? Yes No Unknown
1. Do they have good business reasons to buy?
2. Have their needs (objectives) been identified?
3. Is top management aware of these needs?
4. Has funding been identified and approved?
5. Have the decision criteria been established?
6. Is the decision maker available for us?
7. Will other key people give us time and information?
8. Have they said they are definitely going to buy?
9. Have all levels of management agreed to buy?
Will they buy from me? Yes No Unknown
1. Have I established a favorable image for us?
2. Did I adequately describe our proven capabilities?
3. Does (Do) our product(s) provide solutions for their needs?
4. Has genuine interest in our product(s) been expressed?
5. Is the decision maker biased towards us?
6. Have any preferences for us been stated by key people?
7. Is (are) our solution(s) competitive?
8. Does the competition have major advantages over us?
9. Is a consultant (or other third party) involved?
Qualifying Checklist!
Qualifying Checklist!Will they buy from me now? Yes No Unknown
1. Is there a pressing business reason to act?
2. Does a sense of urgency exist with the key people?
3. Has justification been presented and accepted?
4. Have the key steps in the decision process been finalized?
5. Has a decision date been determined?
6. Is the competition making progress in the sales cycle?
7. Has an installation or delivery date been established?
8. Is a demonstration or benchmark required?
9. Can we meet their implementation schedule?
Step 2- PreparingTwo key activities are
1. Pre-Approach: Sales call preparation in which the sales person seeks out additional information after the prospecting process is completed- Who is the customer? gatekeeper, economic buyer, user or technical personnel?- What are the customer needs?- What other information is required?- Where does one obtain information?
2. Call Planning: involves a specific sequence of activities before the sales interview take place such as:- Specifying the objective of the sales call- Developing a strategy- Making an appointment
Step 2- Preparing
SALES SITUATION MANAGEMENT
Marketing Services
Estimate of Selling Solution
STEP I
Consider the customer’s objectives and goals
STEP II
Consider your objectives. If multiple, set priorities.
STEP III
Compare your objectives and the customer’s.Is there a conflict if so, would you:• re-examine your own objectives• attempt to change the customer’s objectives?• really try to keep this customer?
STEP IVConsider your GoalsShort range goals. Goal of Today’s call?Do they conflict with one another or with our objectives?Do they really enhance your objectives?If not, which is right…your goals or your objectives?
STEP V
Gather intelligence(Essential elements of Intelligence)Intelligence on the nature of your competition.Intelligence on products-yours and competition’sIntelligence on economic factors of the customer’s businessIntelligence on psychological factors affecting the customers.
Cont..SALES SITUATION MANAGEMENT
STEP VI
Analyze the intelligence(Identify facts, make assumptions)Consider assured advantages, possible advantages, effects.Consider assured disadvantages, possible disadvantages, effects.
STEP VII
Develop your sales strategyConsider possible courses of action, with alternativesConsider customer’s alternativesConsider competitor’s alternativesConsider customer or competitor reactions to your alternatives.Choose the most promising in terms of your long-range objectives.Avoid attractive short-range methods that jeopardize objectives.
STEP VIII
Plan Opening TacticsSame considerations as in step VIIExploit your advantagesAnticipate and meet disadvantagesHave alternate tactical plans ready.
Advanced Steps in the Selling Process
Sales Management
The time is always right to do what is right.~Martin Luther King Jr.
Sales Presentation Activities
Approach
Probe for needs
Convinc
e the Prospect
Handle objections
Close
Follow up
Step 1- Approach
“ Selling step during which the salesperson obtains the prospect’s interest and attention.”
•Preparation•Beginning the presentation
- Ask Questions- Use a referral- Offer a benefit- Offer a service- Compliment the prospect- Give something of Value
First Impressions are Essential!
• Wear neat, Conservative clothes
• Be clean and carefully groomed
• Know the prospect’s name and pronounce it correctly
• Be alert and pleasant
• Let the prospect offer to shake hands
• Forget about yourself and concentrate on the prospect
• Avoid smoking or chewing gum
Step 2- Probing for needs
• Probing for needs involves asking questions for identifying needs. An approach is SPIN selling that involves Situation Questions, Problem questions, Implication questions and need payoff questions in a logical sequence.
Benefit of Questions!
To learn about the prospect’s needs
To maintain subtle control of the presentation
To involve the prospect
To Build trust
To build relationship
SPIN (Neal Rackham - A British research psychologist developed the “SPIN” selling system.)
•Situation Questions deal with the facts about the buyers existing situation.
Individual
•What is your position?•How long have you been here?•What do you see as your objectives in this area?
Company
•What sort of business do you run?•Is it growing or shrinking?•What is your annual sales volume?•How many people do you employ?
Business
•What equipment do you use at present?•How long have you had it?•Is it purchased or leased?•How many people use it?
SPIN• Problem Questions ask about the buyer's pain and focus
the buyer on this pain while clarifying the problem, before asking implication questions. . These give Implied Needs:
▫ Is this operation difficult to perform?▫ Are you worried about the quality you get from the old
machine?▫ How satisfied are you with your present equipment?▫ What are the disadvantages of the way that you're
handling this now?▫ Isn't it difficult to process peak loads with your
present system?▫ How is the reliability on this system
SPIN
HURT & RESCUE
SPIN• Implication Questions discuss the effects of the problem,
before talking about solutions, and develop the seriousness of the problem to increase the buyer's motivation to change.
▫ How will this problem affect your future profitability?▫ What effect does the reject rate have on customer
satisfaction?▫ What effect does that have on your output?▫ You only have three people that can use them. Doesn't that
create work bottlenecks?▫ It sounds like the difficulty of using these machines may be
leading to an employee turnover problem. Is that right?▫ What does this turnover mean in terms of training cost?▫ Could that lead to increased cost?▫ Could that lead to customer service problems?▫ Will it slow down your growth?
SPIN• Need-Payoff Questions get the buyer to tell you about
their Explicit Needs and the benefits your solutions offers, rather than forcing you to explain the benefits to the buyer. Getting the buyer to state the benefits has greater impact while sounding a lot less pushy. What these questions do is probe for explicit needs.
▫ Would it be useful to speed this operation by 10%?▫ If we could improve the quality of this operation, would
that help you?▫ Is it important to solve this problem?▫ Why would you find this solution so useful?▫ Is there any other way that this could help you out?▫ So would you be interested in a way to control this cost?
Types of Questions
- Open Ended Questions: Broad questions asked early in the sales presentation- Reflective Questions: Questions asked in response to a prospect’s comments- Directive Questions: Leading questions designed to point the prospect toward areas of agreement.
Step 2- Probing for needs
Step 3- Convincing the Prospect
• Most salespeople use Features-benefit Selling in which the seller relates to a prospect’s needs by emphasizing the benefits received from the seller’s product.
• Presentation techniques used are:- Visual aids- Testimonials- Examples- Guarantees- Demonstrations
Step 4 – Handling Objections
- Sales resistance: actions or statements by a prospect that postpone, hinder, or prevent the completion of a sale.- Objections: Outward expression of a prospect’s doubts or negative feelings about a sales proposal. Objections could be related to timing, price, Source and competition.
Responding to Objections
Step 4 – Handling Objections
Listen carefully
Ask questions to
clarify objections
Respond to the
objections
Confirm your response and also make sure that the
prospect understands &
accepts it.
Prospect states objections/questions/concern
s
Step 5- Closing
• When to close- Look and listen to buying signals- Verbal buying signals- Nonverbal buying signals- Using a trail close: A sales technique that asks for an opinion.
• How to close: Some techniques are- Alternative proposal close: offers the prospect a choice between details- Assumptive close: Assumes that the prospect will make a commitment.- Gift Close: provides the prospect with an added inducement for taking immediate action.- Action Close: Suggests that the sales representative take an action that will consummate the sale.- One –more yes close: salesperson restates the benefits of the product in a series of questions that result in positive responses, then asks for the order.- Balance sheet close: the salesperson and the prospect list the reasons for acting now against the reasons for delaying, aimed at pointing advantages of prompt action.- Direct Close: Salesperson simply asks the prospect for a decision.
Step 5- Closing
Step 6- Follow up
•Follow up are the salesperson's after sale activities- Post sale action- Customer relations▫Handle Complaint, promptly and pleasantly▫Maintain contact with customers▫Keep serving the customer▫Show appreciation- Self Analysis: Continual personal evaluation
of a salesperson’s own performance and methods.