Personal selling process & Consumer Behaviour
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The document outlines the consumer buying process, which consists of stages from problem recognition to post-purchase behavior, and highlights the significance of personal selling in building customer relationships. It describes various personal selling steps including prospecting, approach, presentation, and closing techniques, alongside methods to overcome objections. Additionally, it contrasts transactional and relationship selling in terms of objectives, customer focus, and relationship duration.
Personal selling process & Consumer Behaviour
- 2. Consumer buying process Problem / Need recognition Information search / collection Evaluation of alternatives Purchase decision Post-purchase behaviour Jatin Vaid 2
- 3. Stages of consumer buying process 1. Problem recognition Internal stimuli (hunger, prestige) External stimuli 2. Information search Low involvement V/S High involvement category Visiting stores, asking friends, talking to sales personnel, Internet Jatin Vaid 3
- 4. Stages of consumer buying process 3. Evaluation of alternatives Evaluation of product features Brand beliefs: Price, quality, safety and life Positive & negative emotional beliefs 4. Purchase decision Most preferred brand Attitude of others: Friends, published reviews Situational factors Brand; timing; quantity; payment method Jatin Vaid 4
- 5. Stages of consumer buying process 5. Post-purchase behavior Meeting customer expectations Satisfied: Repurchase, brand ambassadors Dissatisfied: Return product, stop buying, negative word of mouth, complain, legal recourse Jatin Vaid 5
- 6. Personal Selling According to AMA, “Personal Selling is an oral presentation in a conversation with one or more prospective purchaser for the purpose of making sales” Jatin Vaid 6
- 7. Nature of Personal Selling Face to face contact Two – way communication Helps build long term customer relations Highly effective method of promotion Flexible Expensive Limited reach Jatin Vaid 7
- 8. Objectives of Personal Selling Product Awareness Creates interest Provides information Causes demand Reinforcing brand Increase sales volume Jatin Vaid 8
- 9. Personal Selling Process Steps: 1. Prospecting & Qualifying 2. Pre-approach 3. Approach 4. Presentation & Demonstration 5. Overcoming objections 6. Closing the sale 7. Follow-up & Service Jatin Vaid 9
- 10. 1. Prospecting & Qualifying Prospect or a potential customer is someone who needs a product and has an ability to buy Search for new markets / customers Methods: i. Referrals from existing customers ii. Internal company sources iii. Sales people networking iv. Cold canvassing v. Standard Databases Qualifying means the prospect is qualified to meet necessary standards and receive further attention Have the need for the product Can afford the product • Category: i. Hot – Good requirement & financially sound ii. Warm – Medium requirement & financially sound iii. Cool – Low requirements & low affordability Jatin Vaid 10
- 11. 2. Pre-approach i. Information gathering: Details about prospects: Business, purchasing practices, problems faced, industry challenges Sources: Internet, trade magazines, newspapers, annual reports, existing customers ii. Planning the sales call: Setting call objectives Sales strategy – Presentations, messages, behavior Jatin Vaid 11
- 12. 3. Approach Make an appointment to meet the prospect Favourable first impression Appearance, dressing sense, attitude, opening lines, greetings Get the attention of prospects Arouse interest Jatin Vaid 12
- 13. 4. Presentation & Demonstration Presentation: i. Understanding buyer’s needs Relevant questions – situation/problem/impact/solution ii. Sales presentation methods Attention, Interest, Desire, Action (AIDA) Features, Advantages, Benefits, Value (FABV) Problem – solution Team Selling iii. Effective presentation Tailored to the situation Persuasive & Convincing Use of technology Easily understood Jatin Vaid 13
- 14. Presentation & Demonstration (Cont.) Demonstration Important selling tool Prove benefits Reduce risk of wrong buying Potential to clear buyer’s doubt Potential to suit specific customer needs Jatin Vaid 14
- 15. 5. Overcoming objections Welcome objections & handle satisfactorily Important to sales Types of objections: i. Psychological – predetermined beliefs, preferences, decision-making, anxiety. ii. Logical – quicker delivery, high price, quality, availability Methods of handling objections: i. Asking questions ii. Focus on benefits iii. Denial iv. Third – party certificate Jatin Vaid 15
- 16. 6. Closing the sale Closing means asking customer for order It helps buyer make a decision Trial close: Technique to check customer’s attitude / opinion before closing Favourable response to trial close: Ask for order Negative response to trial close: Go back to presentation Readiness to buy signals: Examines the product Ask a friend’s opinion Asks questions Becomes friendly Jatin Vaid 16
- 17. Closing Techniques 1. Alternative choice close – Choice between two or more items 2. Minor points close – Choice on variants, Options on delivery; payment, etc. 3. Assumptive close – Delivery options, non- verbal actions of packing; getting the card swipe machine 4. Summary of benefits close – FABV Approach 5. Special offer – Irresistible offer to customer Jatin Vaid 17
- 18. 7. Follow-up & Service Sales personnel’s job is not over after closing the sale. Customer service is crucial to maintain long-term relations Check customer order Plan follow-up visit at delivery Account penetration Relationship marketing (CRM) Cross-selling & Up-selling Jatin Vaid 18
- 19. Transactional V/S Relationship Selling Parameters Transactional Selling Relationship Selling 1. Objective Get orders / sales Become preferred seller 2. Focus Presentation, closing Build trust, CRM 3. Customer type Many customers with low profit potential Fewer customers with high profit potential 4. Relationship length Short term (Days) Long term (Years) 5. Sales team Junior level sales people Mix of senior level and medium level sales people 6. Selling efforts Low to medium High, with diverse functions 7. Pricing strategy Competitive; Lowest prices to get sales Mutually acceptable prices for profits Jatin Vaid 19