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8/3/2019 2. Personal Selling
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What is Personal Selling?
Selling is just one of many marketing
components
Personal selling: Personal communication
Persuasive
Need fulfillment Goods
Services and ideas
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Everybody Sells!
When have you sold?
Who was involved?
What did you sell?
What did you need to consider?
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Where does selling fit in a business
organization?
VP Marketing
Marketing Manager
Marketing Mix
The 4 Ps of Marketing Promotion Strategy
Advertising
Personal selling
Sales promotion Other communication
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Types of Sales Jobs
Selling in Retail
A retail salesperson sells goods or services to
consumers for their personal, non-business use.
Direct Sellers
Face-to-face (or telephone) sales to consumerswho use the products for their personal use.
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Types of Sales Jobs
Selling for a Wholesaler
For resale
For use in producing other goods
For use within an organization
Works for the firm who manufacturers the
productThis is usually one of the most prestigious jobs
to hold
Selling for a Manufacturer
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A Continuum The complexity and difficulty of these seven sales job
categories increase as they move left to right.
Order-Takers
10000Order-Getters
30, 000
SalesClerks
SalesReps TechnicalReps
Busines
sSolutio
ns
Specialists
KeyAccount Reps
TopSale
s
Exec
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A Salespersons Career Path
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Why Choose a Sales Career?
There are a wide variety of sales jobs available
The freedom of being on your own
The opportunity for advancement in a company
The rewards from a sales
career can be substantial
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Rewards
Non-financial
Intrinsic reward of knowing youve skillfully
delivered a sales presentationQuicker path to managing large amounts of
responsibilityDifferent kinds of incentives e.g. trips, giftsFinancial
Higher average than that of other workers at thesame level within the organization
Based upon performance
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What is Relationship Selling?
Non-adversarial
Non-manipulative
Consultative
Partnering
Problem-solving
Build and maintain a long-term relationship
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Customer Relationship Process:
maintain a customer focus
Maintain and grow
the relationship
Analyze
needs
Recommend solution
and
gain commitmentCustomer
Implementtherecommendation
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BuildingRelationships through Selling
The sales process is a sequential series ofactions
Prospecting ObjectionsPre-approach
Approach
Presentation
Trial close
Meet objections
Trial close
Close
Follow-up and service
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Ten Important Steps
1.Prospectinga. Locating
b. Qualifying prospects
2. Preapproach
a. Appointment
b. Objective setting for the call
c. Know your customer
d. Whats customers benefit?
e. Presentation strategies
3. Approacha. Greeting
b. Breaking Ice
c. Pre presentation talk
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Uncovering needs
Relating product benefits to needs
Demonstration
Dramatization
Visuals
Proof`
4. Presentation
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5. Trial close
a. Hows that ?
b. What do you feel ?
c. Your comments please.
6. Objections
a. Solicit questionsb. Any excuse is objection
7. Handling Objections
a. Answer all questions
b. You know better
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8. Trial close -2
Ask opinion again
9. Close
Taking him to buy10. Follow up and After sales service
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What is Retailing?
Individual or organization that sells good or
services to final customers for their personal,
non-business use.
Key: The final customer
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Career Opportunities
Financial rewards are excellent
Straight salary
Commissions
Combination of salary & commission
Non-financial rewards are many Excellent training programs
Rapid assumption of responsibility
Personal growth & development
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Basic Retail Selling Process
The Five Rights of
Retailing
Right Product
Right Price Right Place (location
and distribution)
Right Time
Right Quantity
company salesperson
product
customer
Whats Different About the Business
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What s Different About the Business
Market?
The business market Derived, inelastic and joint demand
Industrial, producer, organizational
Businesses buy for three purposes:
To make other goods and services
To sell to consumer or other users To conduct organizations operations
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Types of Business Purchases
New Task
Straight Rebuy
Modified Rebuy
Please provide a business example for
each!
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Requests for Proposals [RFPs]
What are they?
When are they used?
What is the process?
How do you respond?
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Who Makes the Decisions Around
Here?
Understanding the business buyingprocess
The eight steps are: see text pg 281
Key: Finding and spending time with theright person
Persons with influence over buyingdecision
Purchasing agent
The Purchasing Decision:
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The Purchasing Decision:
Who makes it?
Lets think of a business buying situationwhere there are many people who influencethe buying decision.
The purchase of a company car!
The Salesperson needs to take intoconsideration who will influence thepurchasing decision.
These influencers are:
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Decision makers to include:
Initiator
Deciders
Influences
Buyers
Gatekeepers
Users
What is the influence of each of these?
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Selling Services is Challenging!
Characteristics of Services
Intangibility
Inseparability
Heterogeneity
Perishability and fluctuating demand
Lets try selling a business service!
You are a DJ selling your music service to a wedding
planner. How would you proceed?
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Nonprofit Selling
No profit motive!
Most nonprofit organization sell
services rather than intangibles,
such as:
Cultural: museums, zoos
Religious: temples, mosques
Social cause: civil rights, smoking
Political: political parties, politicians
N fit S lli
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Non-profit Selling
Nonprofit clients Nonprofit contributors
Importance
Impact
Wh t d P f i l S l l d t
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What do Professional Salespeople need to
know.
Sources of Sales Knowledge
Knowledge Builds Relationships
Know Your Customers Know Your Company
Know Your Product
Know Your Resellers
A FABulous Approach to Buyer NeedSatisfaction
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Knowledge Requirements
Advertisement and Sales Promotional Tools
Pricing Your Product
Know Your Competition, Industry, and Economy Personal Computers and Selling
How knowledge of Technology Enhances Sales andCustomer Service
Global Technology Provides Service Others????
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Sources of Sales Knowledge
Sales training
Experience
Literature (trade magazines)
Established Businessdatabases ( and they are???)
Colleagues, Customers
World Wide Web (lets check outsites on text pg 57)
K l d B ild R l i hi
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Knowledge Builds Relationships
Knowledge increases salespersons confidence.
Knowledge increases buyers confidence in
salesperson.
More knowledge, more sales, morerelationships.
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Know Your Customers (Prospects) Company
General Company Information:
Company history, growth and accomplishment
Buying policies and procedures
Warehouse facilities
Mission statement and values
How they plan to use your productTheir wants and needs
Their partners
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Lets think of a your Buying Customer
What information do we need to know aboutthis customer?
Where could we find out this information?
Lets do it now!!!!!
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Know Your Selling Company: The Supplier
General Company Information:
Company history, growth and accomplishment
Selling policies and procedures
Production facilities
Mission statement
Service facilitiesIn-house Research and Development
Other Customers
K th P d t lli
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Know the Product you are selling
Product knowledge may include:
Performance data Any testimonials???
Physical size and characteristics (specifications)
How the product operates
Specific features, advantages, and benefits of theproduct
How well the product is selling in the marketplace
Other information?????
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Know Your Resellers(If it is a product that is being resold?)
Understand the channel of distribution.
Know as much about each channel member as possible,including the preferences of each channel memberscustomers.
Describe a channel that includes a supplier, reselling buyer,and consumer. The buyer, in this case, is selling a productintact to the consumer who is the end user
Please provide an example of the seller, buyer, product andconsumer for this situation.
/
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Industrial Selling / Buying
Understand the channel of distribution. Know as much about each channel member as possible, including
the preferences of each channel members customers.
Describe a channel that includes:
A supplier who sells to a buyer who uses the purchased product toeither make another product or to be used within its ownoperation. What is the difference between this channel and theprevious one?
Please provide an example of the seller, buyer, and product for thissituation. Now, how can we expand this channel in both directions.Lets try now!
Differences between Industrial Selling and
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Differences between Industrial Selling and
Reselling
What are they?
Do you understand the differences?
How are the wants and needs for the product
differentfor the Business Buyers depending
where they are positioned in the channel?
d i i l
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Know your Companys Advertising Plan
Main ingredients of a firms promotional effort.
Types of Advertising Differ:
National advertising
Retail advertising
Direct-mail advertising
Internet advertising
Trade advertising
Know your Companys Sales
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Know your Companys Sales
Promotion Plan
Consumer sales promotion Trade sales promotion
Point-of-purchase (POP) displays
Shelf positioning Shelf facings
Planogram Software
Premiums
Know your Companys product pricing
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Know your Company s product pricing
strategy
Types of Prices
Discounts lower the price
Markup and profit
Unit Cost
Value an ROI
Know Your Competition Industry and
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Know Your Competition, Industry, and
Economy
Understand competitorsproducts, policies, price, andpractices. What is YOUR
competitive advantage Sources:
National Post
Globe and Mail
Canadian Business
ACNielsen
How do Personal Computers
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p
assist your in your Selling?
Uses and Benefits
Growing use as sales management tools
More effective management
Improved customer relations
More efficient account control and servicing
Improved accuracy
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Top 10 PC Applications
Knowledge of Technology Enhances Sales and
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Knowledge of Technology Enhances Sales and
Customer Service
Personal Productivity
Contact management
Calendar management
Automate sales plans, tactics, and tickets
Geographic information systems
Computer-based presentations
Knowledge of Technology Enhances Sales and
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g gy
Customer Service
Communications with Customers andEmployer
Word processing
Fax capabilities and support
Customer Order Processing and ServiceSupport
Sales Mobile Offices
Global Technology Provides Service
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Global Technology Provides Service
Increased worldwide interaction anddistribution
Summary
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Summary
Company knowledge includes informationon a firms:
history
products
procedures
development practices
distributionpromotion
pricing
Summary
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Summary
Salesperson should be able to
confidently discuss price, discounts, and
credit policies with customers.
Success in sales requires knowledge ofthe many technologies used to sell and
service customers.
Success requires knowledge of products,competitors.
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ProspectingThe
Lifeblood ofSelling
Main Topics
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Main Topics
The Sales Process Has 10 Steps
Steps Before the Sales Presentation
ProspectingThe Lifeblood of Selling
Prospecting GuidelinesThe Prospect Pool
The Referral Cycle
The Sales Process
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The Sales Process
The selling
process has 10important steps.
The Sales Process Has 10 Steps
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The Sales Process Has 10 Steps
Follow up The Close
Trial close
Meet Objections
Determine Objections
Trial Close Presentation
Approach
Pre-approach
Prospecting
(including gathering leadsand lead qualification intoqualified prospects)
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When????
Does a Leadbecome a Prospect!
Does a Prospectbecome a Customer!
ProspectingThe Lifeblood of
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Selling
Prospect: qualified person
Prospecting: identifies potential
customer
Lead: Suspect vs. Prospect
Qualifying a Prospect (from a lead)?
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Qualifying a Prospect (from a lead)?
The Three Determinants are:
1.
2.
3.
Qualifying A Prospect: The Techniques
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Qualifying A Prospect: The Techniques
Asking the referral for information
Researching the company prospectus
Keeping your industry knowledge up todate
Speaking with non-competing salespeople
Successful Salespeople must prioritize their
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effort, time and resources
Determine prospect close-ability: Motive
Why prospect buys
Means Ability to buy
Opportunity
Salesperson provide the opportunity to buy
Planning a Prospecting Strategy
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Requires a strategy. Is a skill that can be constantly
improved.
Involves evaluating different methods.
Where to Find Prospects
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Sources may be varied or few. Persons selling different services and goods
might not use the same sources.
Prospecting Methods that Work!
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In-class Activity
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y
Your instructor will divide you into groups oftwo or three and assign each group a differentmethod.
Please take 15 minutes to prepare a
presentation of this method that you will use toteach this method to your class.
Provide a realBusiness situationfor which this
method would be effective!
Prospecting Guidelines
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Three criteria:
Customize
High potential customersCall back
Referrals used in most prospecting
methods reputed to be the mosteffective
The Sales Funnel
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Components of the Prospect Pool
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The Referral Cycle
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Obtaining referrals is a continuous processwithout beginning or end.
The Referral Cycle
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y
The secret is to ask correctly during referralcycle:
The preapproach contact phase
The presentation
Product delivery contact phase
Service and follow-up contact phase
Dont mistreat the referral.