Sdm 1.3
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This document outlines the personal selling process in business, emphasizing steps such as prospecting, planning, presentation, handling objections, closing, and follow-up. It defines leads versus prospects, discusses the importance of a well-organized sales approach, and highlights techniques for building trust and overcoming objections. Additionally, it covers various closing strategies and the significance of follow-up for securing repeat business.
Sdm 1.3
- 1. DEPARTMENT OF BUSINESS ADMINISTRATION & RESEARCH Shri Sant Gajanan Maharaj College of Engg., Shegaon Personal Selling
- 2. Personal Selling Personal Selling- is direct oral communication designed to explain how an individual’s or firm’s goods, services, or ideas fit the needs of one or more prospective customers (Source: Hoffman et al)
- 3. The Sales Process Prospecting/ Qualifying Preapproach/ Planning Presentation Handling Objections Closing the Sale Approach Follow up IdentifyingNeeds IdentifyingNeeds
- 4. Prospecting What is the difference between a lead and a prospect? A lead is a person or organization that might possibly have a need for the company’s product or service A prospect is a lead that has been qualified in terms of need or want, ability to buy, authority to buy, accessibility, and eligibility (Source: Hite and Johnston)
- 5. Prospecting Ability to Buy The lead must have the ability to pay for the product or service How can the salesperson qualify the lead? Dun and Bradstreet rating service Financial status and credit rating Local credit agencies Noncompetitive salespeople Local banks Better Business Bureaus May ask the lead if they can afford to buy what they want (Source: Hite and Johnston)
- 6. Prospecting Authority to Buy In many firms the actual purchasing authority is not in the hands of the purchasing agent A buying committee often makes the buying decision, and the purchasing agent only carries out the committee’s mandate (Source: Hite and Johnston)
- 7. Prospecting Accessibility The person with the authority to buy may be completely inaccessible Unless the person can be contacted, the lead does not become a prospect (Source: Hite and Johnston)
- 8. Prospecting Eligibility Some companies sell only thorough distributors or wholesalers. If a company sells to direct customers, it may run the risk of alienating its retail customers or wholesalers (Source: Hite and Johnston)
- 9. Planning The selling process should not be looked upon as a conflict between salesperson and prospect People don’t always like to be sold, but PEOPLE LOVE TO BUY When selling is approached as a conflict the worst is brought out in both the buyer and the seller Selling should be approached as a problem-solving, helping situation (Source: Hite and Johnston)
- 10. Planning The sales presentation must be organized With organization most people will increase their sales The purpose of an organized sales presentation is to present ideas so systematically that they lead to action on the buyer’s part—a purchase Most prospects are not organized to buy, they must be shown reasons for buying (Source: Hite and Johnston)
- 11. Planning Why Salespeople Should Plan Their Calls 1) Builds self-confidence 2) Develops an atmosphere of goodwill and trust will buyer 3) Professionalism 4) Increases sales due to preparedness (Source: Futrell)
- 12. Planning Developing the Presentation Features vs. Benefits How to promote Benefits? Use of visual aids (Source: Hite and Johnston)
- 13. Planning The Organized Sales Presentation Feature- Something important or outstanding that the manufacturer, provider, or seller has either included with, eliminated from, or made available in our product or services Benefit- What the feature will do for, or give to, the prospect (Source: Huisken)
- 14. Planning Acquiring Sales Opportunities Once the sales presentation has been organized, the opportunity to make the presentation must be secured 1) Contact the correct person (one who can make the buying decision) 2) Contact the person at the most opportune time 3) Decide whether an appointment or a cold call is best 4) Know how to secure a sales presentation when making a cold call (Source: Hite and Johnston)
- 15. The Approach Purpose: Develop mutual trust and empathy Key elements to building acceptance 1) Physical appearance 2) Ability to ask questions 3) Willingness to be a good listener 4) Skill in getting the prospects to talk about themselves or something of interest to them Offering a compliment on something the prospect has done (Source: Hite and Johnston)
- 16. The Presentation The general problem The specific problem The company’s product or service as the preferred solution The close (Source: Hite and Johnston)
- 17. Objections Why objections? Prospect may be afraid of purchasing the wrong type of product The salesperson should welcome objections The most difficult prospect to handle is one who says “no” and gives no reason Objections should not be taken personally (Source: Hite and Johnston)
- 18. Objections Anticipating Objections The salesperson should anticipating objections Objections should never be ignored Most of the time they should be answered immediately, but occasionally they should be put off If the objections is not answered immediately, the prospect may hear little of what else is said (Source: Hite and Johnston)
- 19. Objections Types of Objections 1) Price 2) Product 3) Timing 4) Source 5) Service 6) Need (Source: Hite and Johnston)
- 20. Closing the Sale Viewed as part of the total selling process that will naturally occur if the salesperson meets the desires of the prospect Close- a question or action by the salesperson intended to evoke a favorable decision from the prospect (Source: Hite and Johnston)
- 21. Closing the Sale How to Close the Sale Direct close Assumptive close Summative close Demonstration close Negative close Special concession close (Source: Hite and Johnston)
- 22. Closing the Sale Problems with Closing the Sale 1) Problems with the Prospect 2) Problems with the Salesperson
- 23. Closing the Sale Problems with the Prospect Prospects may be afraid to buy Industrial buyers often face greater risks that than the seller Industrial buyer must consider: 1) Judge the supplier in terms of reliability, capability, and value 2) Companies budget 3) Goals of the firm 4) Capabilities of the equipment being considered 5) Complying with regulations 6) The buyer’s personal reputation as an effective purchaser (Source: Hite and Johnston)
- 24. Closing the Sale Problems with the Salesperson 1) Fear of rejection 2) Wrong attitude 3) Talking too much 4) Inadequate presentation 5) Improper prospecting (Source: Hite and Johnston)
- 25. Follow Up Good for repeat business Set delivery times Purchase terms Other details Reduce cognitive dissonance