Sales Management

Personal selling theories(approaches) Sales channels of serving customers or types of salesmen Personal Selling Process

Third Lecture

Personal Selling Theories( buying process mental stages )

Stimulus Response Selling Mental State Selling Need Satisfaction Selling Problem Solving Selling

Stimulus Response Selling Sony vs. LG TV

Salesperson Provides Stimuli

Buyer Responses Sought

Continue Process until Purchase Decision

Mental State Selling Sony, LG TV or other brands

Attention

Interest

Conviction

Desire

Action

Need Satisfaction Selling (Any color TV)

Uncover and Confirm Buyer Needs

Present Offering to Satisfy Buyer Needs

Continue Selling until Purchase Decision

Problem Solving Selling (Any color TV)

Define Problem

Generate Alternative Solutions

Evaluate Alternative Solutions

Continue Selling until Purchase Decision

AIDAS Selling Theory (Attention, Interest ,Desire, Action,& Satisfaction)

Five Successive Mental States of customer: Securing attention: Sales person should put the prospect( new customer) in receptive state of mind First few minutes of the interview are crucial & the first impression is important He should be skilled conversationalist, friendly and with a genuine smile AIDAS Gaining interest is a Second goal is to intensify the prospects attention into strong interest seller oriented theory Explain product USP, technical features, benefits, etc stressing Try and match customer s needs with what is being offered sales person Kindling desire controlling the Third goal is to kindle the customer s desire to ready to buy point situation Objections need answering to the prospects satisfaction Induction of action If the above process is tactfully handled the customer should be ready to buy. Building satisfaction After the customer has given the order, he should get the feeling of great satisfaction that the salesman has helped in making the right choice

Selling Channels( Jobs)

Over-theOver-theCounter Inside Selling Field Selling TeleTelemarketing

Online Selling

Personal selling occurs through several types of communication channels Each sales channel is unique which make it relevant for particular sales situations.

THE FIVE SALES CHANNELS( type of selling jobs)

Over-theOver-theCounter Inside Selling Field Selling TeleTelemarketing

Online Selling

Over-the-counter selling: Personal selling conducted in retail and some wholesale locations in which customers come to the seller place of business

THE FIVE SALES CHANNELS

Over-theOver-theCounter Inside Selling

Field Selling

TeleTelemarketing

Online Selling

Field selling: Sales presentations made at prospective customers homes or businesses on a face-to-face basis

THE FIVE SALES CHANNELS

Over-theOver-theCounter Inside Selling Field Selling TeleTelemarketing

Online Selling

Telemarketing: promotional presentation involving the use of the telephone on an outbound basis by salespeople or on an inbound basis by customers who initiate calls to obtain information and place orders

THE FIVE SALES CHANNELS

Over-theOver-theCounter Inside Selling Field Selling TeleTelemarketing

Online Selling

Inside selling: Performing the functions of field selling but avoiding travel-related expenses by relying on phone, mail, and electronic commerce to provide sales and product service for customers on a continuing basis

THE FIVE SALES CHANNELS

Over-theOver-theCounter Inside Selling Field Selling TeleTelemarketing

Online Selling

Online Selling: Performing the sales function via the internet by allowing customers to access product information, check prices, and place their own orders without input from an actual salesperson.

The Sales Process

DemonDemonstration Handling Objections Closing FollowFollow-up

Presentation

Approach

Prospecting: personal-selling function of identifying potential customers Qualifying: determining that a prospect has the needs, income, and purchase authority necessary for being a potential customer

Prospecting and Qualifying

The Sales Process

DemonDemonstration Handling Objections Closing FollowFollow-up

Presentation

Approach

Prospecting and Qualifying

Approach: salesperson s initial contact with a prospective customer Precall Planning: use of information collected during the prospecting and qualifying stages of the sales process and during previous contacts with the prospect to tailor the approach and presentation to match the customer s needs

The Sales Process

DemonDemonstration Handling Objections Closing FollowFollow-up

Presentation

Approach

Presentation: describing a product s major features (AND BENEFITS) and relating them to a customer s problems or needs

Prospecting and Qualifying

The Sales Process

DemonDemonstration
Handling Objections

Closing

FollowFollow-up

Presentation

Approach

Prospecting and Qualifying

Objections: expressions of sales resistance by the prospect Price is the #1 objection, but it may not be the real concern Objections are reasonable and professional salespeople are prepared to handle them appropriately

The Sales Process

DemonDemonstration Handling Objections
Closing

FollowFollow-up

Presentation

Approach

Closing: stages of personal selling where the salesperson asks the customer to make a purchase decision Nearly 80% of salespeople fail to close when the buyer is ready

Prospecting and Qualifying

The Sales Process

DemonDemonstration Handling Objections Closing
FollowFollow-up

Presentation

Approach

Follow-up: postsales activities that often determine whether an individual who has made a recent purchase will become a repeat customer Follow-up helps build mutually beneficial long-term relationships

Prospecting and Qualifying

PhotoDisc

Personal Selling Tasks

Order Getting Order Taking Customer Sales Support Personnel Missionary salespeople Sales engineer Team selling

Order getting as personal selling task

Order getting functions
Sell to new prospects (pioneers) Sell to continuing customers (account managers) Creative selling More time consuming Some use of telemarketing, particularly to small accounts

Objectives Seek out customers Analyze their problems Discover solutions Sell solutions to customers

Order taking as personal selling tasks

Order taking functions Do very little creative selling Write up orders Check invoices for accuracy Assure timely order processing May use suggestive selling
Inside or field order- takers Telemarketers are often ordertakers

Due to improvements in inventory management and communications technology, some field order-takers have been replaced by computers

Sales support and cross-functional teams

MISSIONARIES or DETAILERS Provide technical information and solve problems, but rarely sell Perform a public relations function CROSS- FUNCTIONAL TEAMS

In large business-tobusiness transactions (new production lines, buildings, computer systems, etc.) a variety of technical specialists form a team to help the sales person and the client

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