CHAPTER 1

Nature of Salesmanship
Salesmanship is not just selling i.e., transferring the ownership of goods in
exchange for money. It is the process of persuading the prospective customers to buy
the goods or services which they really need. In other words, salesmanship is not just
the act of satisfying the demand for a product that exists already. It is the process of
creating a demand by guiding the consumers in the proper selection of goods.

Again, true salesmanship is not creating demand for a product by high-pressure

tactics or by playing on the ignorance or weakness of the customers. Such an act is not
only unethical, but also harmful to the concern in the long run. True salesmanship is the
act of creating demand by convincing the people, through factual arguments and
making them buy what they really need.

Various discussion on Salesmanship

Is Salesmanship an Art or Science?

An art is the process of producing results by the exercise of skill. Salesmanship

involves inducing the people to buy what they want. It is the process of increasing the
sale of goods by the exercise of skill by the salesman. So, salesmanship can be
considered an art.

A science is a systematized body of knowledge. It has its own set of principles

and they are universally accepted. Salesmanship is a specialized knowledge that has its
own rules or principles. A successful salesman is required to know the rules or
principles of salesmanship.

Salesmanship involves a systematic or scientific approach to selling. So, one can

say that salesmanship is a science. But it is not a pure science as physics, chemistry or
mathematics. It is only a social science, based on human psychology. To conclude,
salesmanship is not only an art, but also a science.

Salesmanship as a Profession

A job or an occupation can be called a profession only if it satisfies the following

requirements—

1. It requires an organized body of knowledge.

2. It requires a certain degree of skill.

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3. It needs systematic preparation for a relatively long period before taking up the job.

4. It implies a certain amount of specialization of work.

5. It involves a well-organized programme for imparting training to those who intend to

take up the profession.

6. The persons desirous of taking up a profession are examined by the public body.

7. There is an established and accepted code of ethics to be followed by the members

of the profession.

8. There should be the motto of service before self.

Now, let us consider how far salesmanship satisfies the above criteria and ascertain
whether it can be considered a profession.

Salesmanship does need an organized body of knowledge. It also requires

certain degree of skill or talent. There are specialized institutions offering courses in
salesmanship. Salesmanship does have certain ethical standards. Service is the
primary motto of salesmanship. So, we can conclude that salesmanship can be
regarded as a profession, even though not as high as medicine, engineering, law,
accounting, audit and business management professions.

Is Salesmanship Productive?

It is argued by some critics that salesmanship is unproductive in the modern

capitalist system. Let us critically analyse this argument and see for ourselves. To
answer the question, we must know as to when an economic activity becomes
productive, and when it becomes unproductive. An economic activity becomes
productive, if

1. It reduces the cost of marketing,

2 .It reduces the cost of production.

3. It increases the utility of the product or service.

4. It produces more effective results in proportion to its cost.

5. It contributes to social welfare or well-being.

Now, let us consider whether salesmanship satisfies these conditions and whether it
can be considered productive or not?

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1. Salesmanship is capable of reducing the cost of marketing. Through salesmanship,
producers and dealers know as to where the products should be sold and when. This
avoids dumping of goods in places where there is no demand. As a result, the cost of
marketing comes down. Further, by contributing to increased sales, effective
salesmanship brings about reduction in the marketing cost per unit.

2 Effective salesmanship contributes to increased sales. Increased sales lead to large-

scale production. The increased production results in lower cost per unit.

3. Salesmanship always creates more uses for the products. Increased uses of the
products denote increase in the utility of the products. So, salesmanship does increase
the utility of the products.

4. Effective and successful salesmanship definitely results in benefits which are more
than the costs of salesmanship, that is why companies employ salesmen.

5. Salesmanship contributes to social welfare in many ways. First, it brings about

increase in the production of goods for the consumption of the society. Secondly, it
brings about rise in economic activities, level of employment and income of the people.
Thirdly, it raises the standard of living of the people by converting the luxuries and
comforts of yesterday into necessities of today. So, salesmanship is definitely
productive.

Conditions Under which Salesmanship Works Best

There are certain conditions under which a firm thrives on effective salesmanship. They
are—

1. Where there is a relatively small potential market for a product or service.

2. Where a product is complex, and highly technical, such as machinery and cannot be
adequately presented by means of advertising or sales promotion.

3. Where the product is of a high unit value.

4. Where the product must be tailored (made for a particular purpose) to suit the
individual needs of a customer.

5. Where the presence of a salesman helps to inspire a customer’s confidence and thus
improve the possibility of a sale.

6. Where a company does not have enough financial resources to carry on an

advertising programme.

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Differences between Selling and Salesmanship
Salesmanship is, no doubt, a technique of selling goods or a service or an idea. But it is
different from selling. There are many differences between selling and salesmanship.
They are:

1. Selling is the mere transfer of the ownership of goods or services in exchange for
money. On the other hand, salesmanship is the process of presenting the goods to the
prospects. convincing them with the desirability of the goods and persuading them to
buy the goods and also guiding them in the proper selection of the goods. So, the scope
of salesmanship is much wider than that of selling.

2. Selling is a much easier job, whereas salesmanship is a highly difficult task.

3. Selling does not require much skill on the part of salesman. But salesmanship
requires much skill on the part of the salesman. Salesmanship can be performed
effectively only by a skilled and well-trained salesman.

4. Selling results in mere cash sales. But salesmanship creates satisfied and regular
customers for the business.

5. Selling begins with the demand for goods by the buyers. But salesmanship begins
with the creation of demand for products.

6. Selling ends with the sale or passing of the ownership of goods. But salesmanship
does not end there. Salesmanship is a continuous process.

Criticisms Against Salesmanship

It is true that salesmanship is very helpful to different sections of the society. But it is not
free from criticism. The various criticisms against salesmanship are:

1. Consumers are pressurized to buy things

One of the criticisms against salesmanship is that consumers are pressurized to

buy things which they do not really need or buy things which are beyond their means.
No doubt, there is an element of truth in this criticism. Sometimes, consumers are
brought into the trap by salesmen by adapting high pressure tactics. But this is not
completely true.

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 As stated earlier, high-pressure salesmanship is not salesmanship at all. True
salesmanship lies in not inducing the customers to buy what they do not need. It is
actually inducing and helping the people to buy what they really need.

2. Salesmanship increases the cost of marketing

Another criticism against salesmanship is that it increases the cost of marketing.

It is true that salesmanship involves marketing costs. But, salesmanship, by confining its
appeal only to a selected group of prospective customers reduces the cost of marketing.

3. Salesmanship is unproductive

Another serious criticism against salesmanship is that it is unproductive. This

criticism holds good only when salesmanship fails to yield the desired results. On the
other hand, salesmanship is effective and successful and brings about reduction in
marketing and production costs, reduction in selling prices, increase in economic
activities, rise in employment level and helps the customers in the proper selection of
goods. In view of all these benefits, salesmanship cannot be considered unproductive.

4. Salesmanship is unnecessary

Yet another criticism against salesmanship is that it is an unnecessary,

superfluous and wasteful adjunct of modern capitalist economy. This criticism is based
on the age old idea that whatever is produced will be ultimately sold, and so
salesmanship is not necessary. This might have been true in the pre-industrial
revolution days. But, in today’s business world, where there is buyers’ market,
salesmanship is absolutely necessary.

Conclusion

On a careful examination of the criticisms against salesmanship and our answers

to these criticisms, one can conclude that most of the criticisms against salesmanship
do not hold good. Further, salesmanship offers benefits to the various sections of the
society. So it is quite essential in the modern business world.

https://accountlearning.com/advantages-benefits-salesmanship/

5
Salesmanship: Definition, Importance, Duties and Types!
“The personal selling” and “salesmanship” are often used interchangeably, but there is
an important difference. Personal selling is the broader concept. Salesmanship may or
may not be an important part of personal selling and it is never ‘all of it. Along with other
key marketing elements, such as pricing, advertising, product development and
research, marketing channels and physical distribution, the personal selling is a means
through which marketing programmes are implemented.

The broad purpose of marketing is to bring a firm’s products into contact with markets
and to effect profitable exchanges of products for money. The purpose of personal
selling is to bring the right products into contact with the right customers, and make
ownership transfer.

Salesmanship is one of the skills used in personal selling, as defined by Stroh, “it is a
direct, face-to-face, seller-to-buyer influence which can communicate the facts
necessary for marketing a buying decision; or it can utilize the psychology of persuasion
to encourage the formation of a buying decision”.

Salesmanship is seller-initiated effort that provides prospective buyers with information

and motivates or persuades them to make favourable buying decisions concerning the
seller’s products or service. The salesman of today has to react and interact in any
different ways to many different people.

Apart from the knowledge of the product, a salesperson has to be a psychologist with
one prospect, a human computer with another, an adviser with another, and at the
same time a friend with some buyers. Salespersons must adjust their personalities on
every call. Salesmanship may be implemented not only through personal selling but
through advertising. Thus, advertising has been described as “salesmanship in print.”

Some definitions emphasize that salesmanship is the art of influencing or persuading

people to do what sales representative wants them to do. For instance, contractors,
teachers, ministers, authors, politicians, industrial engineers etc., practice the art of
influencing others to do what they want them to do. Every man is a salesman in his own
walks of life.

Definition:

According to W.G Carter, “Salesmanship is in attempt to induce people to buy goods.”

According to the National Association of Marketing Teachers of America, “It is the ability
to persuade people to buy goods or services at a profit to the seller and benefit to the
buyer.”

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According to Knox, “Salesmanship is the power or ability to influence people to buy at a
mutual profit, that which we have to sell, but which they may not have thought of buying
until call their attention to it. Salesmanship is the ability to persuade people to want they
already need.”

According to Prof Stephenson, “Salesmanship refers to conscious efforts on the part of

the seller to induce a prospective buyer to purchase something that he had not really
decided to buy, even if he had thought of it favourably. It consists of persuading people
to buy what you have for sale in making them want it, in helping to make up their
minds.”

https://www.yourarticlelibrary.com/salesmanship/salesmanship-definition-importance-
duties-and-types/50988

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The Importance of Personal Selling
What is personal selling?

Advertising acquaints potential customers with a product and thereby makes

personal selling easier. Personal selling is a face-to-face sales presentation to a
prospective customer. Sales jobs range from salesclerks at clothing stores to engineers
with MBAs who design large, complex systems for manufacturers. About 6.5 million
people are engaged in personal selling in the United States. Slightly over 45 percent of
them are women. The number of people who earn a living from sales is huge compared,
for instance, with the nearly 300,000 workers employed in the traditional advertising
sector. Personal selling offers several advantages over other forms of promotion:

Personal selling provides a detailed explanation or demonstration of the product. This

capability is especially desirable for complex or new goods and services.

The sales message can be varied according to the motivations and interests of
each prospective customer. Moreover, when the prospect has questions or raises
objections, the salesperson is there to provide explanations. In contrast, advertising and
sales promotion can respond only to the objections the copywriter thinks are important
to customers.

Personal selling can be directed only to qualified prospects. Other forms of

promotion include some unavoidable waste because many people in the audience are
not prospective customers.

Personal selling costs can be controlled by adjusting the size of the sales force
(and resulting expenses) in one-person increments. In contrast, advertising and sales
promotion must often be purchased in fairly large amounts.

Perhaps the most important advantage is that personal selling is considerably

more effective than other forms of promotion in obtaining a sale and gaining a satisfied
customer.

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The Selling Process
Selling is a process that can be learned. Experts have spelled out the steps of
the selling process, shown in (Figure), and professional salespeople use them all the
time. These steps are as follows:

Prospecting and qualifying: To start the process, the salesperson looks for sales
prospects, those companies and people who are most likely to buy the seller’s offerings.
This activity is called prospecting. Because there are no surefire ways to find prospects,
most salespeople try many methods.

For many companies, the inquiries generated by advertising and promotion are
the most likely source of prospects. Inquiries are also known as sales leads. Leads
usually come in the form of letters, cards, e-mail addresses, telephone calls, or through
social media sites. Some companies supply salespeople with prospect lists compiled
from external sources, such as Chamber of Commerce directories, newspapers, public
records, club membership lists, internet inquiries, and professional or trade publication
subscription lists. Meetings, such as professional conventions and trade shows, are
another good source of leads. Sales representatives attend such meetings to display
and demonstrate their company’s products and to answer the questions of those
attending. The firm’s files and records can be another source of prospects.
Correspondence with buyers can be helpful. Records in the service department can
identify people who already own equipment and might be prospects for new models.
Finally, friends and acquaintances of salespeople can often supply leads.

One guideline is that not all prospects are “true” opportunities for a sale. Just
because someone has been referred or has made an inquiry does not mean that the
person is a genuine prospect. Salespeople can avoid wasting time and increase their
productivity by qualifying all prospects. Qualifying questions are used to separate
prospects from those who do not have the potential to buy. The following three
questions help determine who is a real prospect and who is not:

Does the prospect have a need for our product?

Can the prospect make the buying decision?

Can the prospect afford our product?

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A diagram shows the 6 steps in the sales process as a staircase.

Exhibit 12.9 Steps in Making a Successful Sale (Attribution: Copyright Rice University, OpenStax, under
CC BY 4.0 license.)

Approaching customers: After identifying a prospect, the salesperson explains

the reason for wanting an appointment and sets a specific date and time. At the same
time, the salesperson tries to build interest in the coming meeting. One good way to do
this is to impart an interesting or important piece of information—for instance, “I think my
product can cut your shipping and delivery time by two days.”

Presenting and demonstrating the product: The presentation and demonstration

can be fully automated, completely unstructured, or somewhere in between. In a fully
automated presentation, the salesperson shows a movie or slides or makes a
PowerPoint presentation and then answers questions and takes any orders. In today’s
business world, in which relationships are most important for long-term sales, canned or
structured presentations are not well received, nor do they support the idea of building a
great bond with the customer. A completely unstructured presentation that has no set
format is a much more successful approach. It may be a casual conversation, with the
salesperson presenting product benefits and assisting the customer in solving his or her
problems (like a partner on the client company’s team) in a way that might interest the
potential buyer.

Handling objections: Almost every sales presentation, structured or unstructured,

meets with some objection. Rarely does a customer say, “I’ll buy it,” without asking
questions or voicing concerns. The professional salesperson tries to anticipate
objections so they can be countered quickly and with assurance. The best way to
counter objections is to have a thorough knowledge of the product offering so that a
solution can be found that overcomes the objection.

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 Often employed in business, the “higher authority” objection is frequently used
when one of the parties says, “This agreement looks good, but I’ll have to run it by my
committee” (or wife or any other “higher authority”). The result is that that sales
presentation turns out to be just a preliminary, nonbinding round. After the higher
authority responds, often disapproving the agreement, the sale goes into round two or
starts all over again.

For example, when a customer wants to buy a house, car, or anything expensive,
the salesperson will say, “If we find the house (or car) that you really like, is there any
reason you could not make the purchase today?” Once they get the green light, the
salesperson will spend whatever time it takes to find the right product for the customer.
However, if the client says his uncle has to give the final approval because he will be
loaning the money, the salesperson will try and set up an appointment when the uncle
can be present.

Closing the sale: After all the objections have been dealt with, it’s time to close
the sale. Even experienced salespeople sometimes find this part of the sales process
awkward. Perhaps the easiest way to close a sale is to ask for it: “Ms. Jones, may I
write up your order?” One of the best techniques is to act as though the deal has been
concluded: “Mr. Bateson, we’ll have this equipment in and working for you in two
weeks.” If Mr. Bateson doesn’t object, the salesperson can assume that the sale has
been made.

Following up on the sale: The salesperson’s job isn’t over when the sale is made.
In fact, the sale is just the start. The salesperson must write up the order properly and
turn it in promptly. This part of the job may be easy for many consumer products, but for
B2B products or services, it may be more complex. An order for a complex piece of
industrial equipment may include a hundred pages of detail. Each detail must be
carefully checked to ensure that the equipment is exactly what was ordered.

After the product is delivered to the customer, the salesperson must make a
routine visit to see that the customer is satisfied. This follow-up call may also be a
chance to make another sale. But even if it isn’t, it will build goodwill for the
salesperson’s company and may bring future business. Repeat sales over many years
are the goal of professional salespeople.

Summary of Learning Outcomes

What is personal selling?

About 6.5 million people in the United States are directly engaged in personal selling.
Personal selling enables a salesperson to demonstrate a product and tailor the
message to the prospect; it is effective in closing a sale. Professional salespeople are

11
knowledgeable and creative. They also are familiar with the selling process, which
consists of prospecting and qualifying, approaching customers, presenting and
demonstrating the product, handling objections, closing the sale, and following up on
the sale.

GLOSSARY

personal selling

A face-to-face sales presentation to a prospective customer.

prospecting

The process of looking for sales prospects.

qualifying questions

Inquiries used by salespeople to separate prospects from those who do not have the
potential to buy.

sales prospects

The companies and people who are most likely to buy a seller’s offerings.

https://courses.lumenlearning.com/suny-osintrobus/chapter/the-importance-of-personal-
selling/#:~:text=Personal%20selling%20enables%20a%20salesperson,effective%20in
%20closing%20a%20sale.

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 CHAPTER 2
Developing A Powerful Sales Personality
Sales Success

Becoming excellent in closing sales is an inside job. It begins within you. In sales,
your personality is more important than your product knowledge. It is more important
than your sales skills. It is more important than the product or service that you are
selling. In fact, your personality determines fully 80 percent of your sales success.

Take Charge of Your Life

The biggest mistake you can make is to ever think that you work for anyone but
yourself. From the time you take your first job until the day you retire, you are self
employed. You are the president of your own entrepreneurial corporation, selling your
services into the marketplace at the highest price possible. You have only one
employee—yourself. Your job is to sell the highest quality and quantity of your services
throughout your working life.

FREE REPORT: Everyone is a Sales Person

But I’m Not in Sales

Think again my friend. If you’ve ever applied for a job, been married, went out on a date,
raised your kids, started a business, had a garage sale, waited on tables or done any of
a thousand other things…you were involved in sales.

Even as a kid, you traded sports cards or bought or sold a bicycle or had a
lemonade stand or a paper route. Maybe you sold Girl Guide cookies or apples as Boy
Scout. Whatever you did as a kid, like most people you were exposed to sales at an
early age. In fact, one of your first sales involved you crying because you were hungry.
You were obviously pretty convincing because your parents rushed to feed you.

View Yourself as Self-Employed

In a study done in New York some years ago, researchers found that the top 3 percent
of people in every field looked upon themselves as self-employed. They treated the
company as if it belonged to them personally. They saw themselves as being in charge
of every aspect of their lives. They took everything that happened to their company
personally, exactly as if they owned 100 percent of the stock.

Winners Versus Losers

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The difference between winners and losers is quite clear. Winners always accept
responsibility for their actions. Losers never do but instead always have some kind of
explanation for why they are doing poorly.

Don’t Waste Time

The average salesperson today wastes about 50 percent of his or her working time.
According to research, he comes in a little later, works a little slower, and leaves a little
earlier. He spends most of his working time in idle chitchat with co-workers, personal
business, reading the paper, drinking coffee, and surfing the internet. Winners arrive a
little earlier, work a little harder, and stay a little later.

Develop Empathy and Understanding

Top salespeople have high levels of empathy, i.e., they really care about their
customers. Ambition, the desires to achieve, combined with empathy, the genuine
caring for the well-being of your customers, are the twin keys to top sales performance.

A person with empathy makes every effort to get inside the mind and heart of the
customer and to understand his situation and needs. They find out what the customer
really wants and then presents it to them in a manner he/she finds palatable.

Keep Your Word

Top-selling salespeople are impeccably honest with themselves and with others. There
is no substitute for honesty in selling. Earl Nightingale once said, “If honesty did not
exist, it would have to be invented as the surest way of getting rich.”

Do What you Love to Do

One of the secrets of success in selling is for you to do what you love to do. Top
salespeople love what they are selling. They believe in it passionately. They will defend
it and argue over it. They will talk about it day and night. When they go to bed, they
think about their product. When they wake up in the morning, they can hardly wait to
talk to prospects about it. Look at the top salespeople in the very best companies, and
you’ll find that these people are fanatical about their products and services.
Succeed Now

Resolve today, that you are going to become one of the hardest-working professional
salespeople in your industry; start earlier; work harder; stay later. Do whatever it takes
to reach your financial goals.

https://www.briantracy.com/blog/sales-success/developing-a-powerful-sales-personality/

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What does Sale Personality Mean?
A sales person has characteristics vital to sales success. He is driven by
challenges with a mission to close. People may see a person with a sales personality as
friendly and outgoing but what they may not recognize is that he is friendly and a
people-person with a purpose. He speaks to people, assessing if this person may be a
target customer. A person with a sales personality focuses on one thing -- making the
sale happen.

Assertive

Behavioral traits of a sales person include assertiveness with an outgoing

personality. Top sales performers rank on the top end of the assertiveness scale. They
are comfortable speaking up and asking questions. A person with an assertive sales
personality can convince a customer to agree with him and has no reluctance in closing
the sale. Someone with a relaxed personality may show the ability to cope but may not
have the drive to succeed in a fast-paced, time-sensitive environment and therefore,
may not be a good sales person.

Flexible

One aspect of a sales person is the ability to be flexible. Some customers are in
a hurry and like to get to the bottom line quickly. Others are calm and collected, wanting
to take the time to hear all the details before making a decision. A person with a flexible
sales personality can be in coordination with the pace and tone of the customer. She
does not impose her dynamic personality on a patient customer, nor would she be
reserved in her approach to a dynamic, energized customer.

Achiever

People with high achieving sales personalities are motivated by the challenge to
beat their own track record and surpass all others. They are comfortable pursuing
aggressively. In a negotiation, a sales person listens to be polite but tends to be
dominant. He is always thinking about the next step or different alternatives to make the
sale. The one trait a sales person needs to develop is to listen to a prospect's objections
and opinions in order to present satisfactory alternatives.

People Person

A sales person loves to be around people and can easily form relationships. He is
comfortable with social interaction and may be the one who mingles the most at a party.
There is a fine line between a person with a sales personality and just another friendly
person. A friendly person's focus may be on forming a relationship and in the process,

15
miss identifying target customers, whereas a person with a sales personality shows
moderation in affiliation and warmth, always focusing on the business prospect.

https://smallbusiness.chron.com/sales-personality-mean-20021.html

16
The Role of Personality in Sales and Marketing
There’s no special, single plan for success in sales and marketing. It’s not as
easy as flipping a switch and suddenly turning into an expert salesperson. There are
factors at play that are hard to define, and lots of different elements that may be
responsible for a salesperson’s success or failure. Two people may have the same
education, resources, and amount of sales experience, yet one of them ends up with far
more sales than the other. This may seem perplexing, but there is another factor to
consider: personality. It may seem obvious—sure, of course personality will play a part.
But is it really that significant a factor? And why does it matter, anyway?

Why Personality is Important

Every business is more than their product; a product – no matter how good it is –
most often is not enough to convince someone to buy it. This is what makes sales
representatives important. Every representative is the face of his or her company to
clients, giving personality to an inanimate product and business. A company’s brand
and marketing strive to add personality to the business, but salespeople really drive it
home. This is where a salesperson’s personality comes into play. A sales
representative’s personality and attitude will shape the customers’ view of and feelings
toward the product, company, and brand. The way a client feels about the rep they
interact with will often determine the way the client feels about the company, as well as
anything they sell, do or make. A sales representative’s personality, then, must give
clients positive, confident feelings about the product or service they are considering.
This raises an obvious question: what kind of personality traits make for the best
salespeople?

Personality Traits to Pursue

It’s true that there are successful salespeople possessing certain traits that other
successful salespeople lack. There isn’t exactly a formula that guarantees success or a
perfectly-proportioned blend of personality traits that ensures consistently mind-blowing
sales results. However, there are personality traits that tend to work in a salesperson’s
favor, and these traits are worth nurturing.

Drive Without Pushiness: Any good salesperson must have the drive to succeed.
They must have the necessary motivation and ambition that can withstand failure.
Obstacles do not crush the best salespeople, because a good sales rep has the internal
determination to overcome any hindrance. However, that ambition must never reach a
point of excessive aggression, since disproportionate pushiness will be interpreted as
disrespect.

Pro tip:

17
If you want to learn how to improve the mental stamina or mental toughness of your
sales team, look into the psychology techniques used in sports. These techniques can
help sales people overcome the fear of failure (or rejection), master the art of
confidence, and learn how to keep their composure when in the hot seat or under
intense demands.

Charisma: General likeability is always an asset. It helps to be a people person, adept

at interacting with others in a natural and friendly manner. Charisma is a hard trait to
define, however, a kind of magnetism and allure that seems almost mystical. Some
people just have it, the natural charm that makes people gravitate toward the
charismatic individual.

Pro tip:

Charisma is not something that someone can learn…either someone is charming or

they aren’t. However, if you understand how to be likeable to nearly everyone it will be
easier to disguise a lack of charisma. How is this done? By understanding the buyer as
well as what keeps them up at night and brings purpose to their life. This will require
some research but can be well worth the effort.

Positivity: Clients aren’t looking for a glum, negative individual. Sure, the sales rep might
run into some snags, but any obstacles or miscommunications should always be
handled with positivity. Positivity helps clients feel both comfortable and confident.

Pro tip:

Staying positive requires a mindfulness of being positive. In other words, if the desire is
to eliminate negative thoughts, perceived threats and pessimism among sales teams
there must be a clear understanding of each representative’s emotional intelligence.
These tests help to identify two things: strengths and weaknesses. Strengths can be
leveraged so that these skills work to a representative’s advantage, while weaknesses
offer opportunities to improve. Additionally, when used in conjunction – someone’s
weaknesses might complement someone’s strengths which is where micro-teams
consisting of 2-4 people can be highly effective.

Honesty: Positivity is important, but it doesn’t mean a sales rep should sugar coat
everything. Clients don’t want a salesperson who dances around the issue, afraid of
addressing difficult subjects. Even if the honest truth is something the customer doesn’t
want to hear, a lie is never the answer. The best sales reps will be honest about any
difficulties, while also working hard to address overcome these obstacles.

Pro tip:

18
Recent studies have demonstrated that most people, not just those in sales, use
deception even if it a white lie, within the workplace. The number one reason a lie is told
– fear of losing a job or losing a customer. One of the best scenarios managers can set
up for teams is to welcome honesty, even if that means that losing a sale or customer.
When the fear of termination is eliminated, sales teams will be more willing to be
honest. Furthermore, post-sales customer check-ins should also address the issue of
honesty in surveys, etc.

Competitiveness: The sales game is a competitive one, and the best salespeople play
to win. Whether it’s in regard to other reps at the same company, or competing
companies, the best reps are looking to outdo the competition. They want to provide
better service, create better relationships, and reach better numbers.

Pro tip:

A little healthy competition never hurts in sales environments. However, if the only
competition is around quotas, there may be significant missed opportunities to promote
a more rounded (and healthier) competition that better represents the business or
brand. For example, competitions, at the micro-level, can be on scoring the highest in
customer satisfaction surveys, minimizing the need for post-sales support, earning
repeat business, earning the most margin per sale, etc. Another way is to offer a larger
motivator for top performers. This can be a non-cash incentive such as an all-expense
paid trip to an exotic location as it not only rewards for positive outcomes but provides
insights into new cultures and encourages conversation with prospects.

Confidence Without Arrogance: Part of a salesperson’s job is building customer

confidence. The goal is to make a client confident that they’re making the right choice,
assuring them that the product or service in question is truly beneficial to them. But a
salesperson lacking confidence will have a hard time building confidence in his or her
client. Sales representatives must possess confidence in the product or service they are
selling, truly believing that what they sell is beneficial to their customers. However, this
confidence must be balanced so that it doesn’t come across as arrogance.

Pro tip:

Better educated sales representatives as well as first hand experiences with products
and services can do wonders for even the least confident sales representative. If
confidence appears to be lacking, it could be a symptom that additional training is
needed, or that it is time for management to step in and build confidence through
encouragement.

Inquisitiveness: Sales is about relationships, and questions are a great way to build
rapport. They show that your clients aren’t merely numbers on a page, but real people

19
who you’d like to invest in. Of course, business questions are just as important as
personal ones. The best salespeople aren’t afraid to ask questions—even tough
questions—because questions produce answers, and answers are information. Sales
reps want as much information as possible, knowledge that will help them better serve
their clientele.

Pro tip:

Knowing the right questions to ask can be taught, and in other cases it comes from
experience. This is where a combination of training and partnerships with experienced,
top performers, can be helpful. Most top performers are rarely asked how they do what
they do, but are more than willing to share if when inquiries are made. This combined
with mentorship programs can be a powerful combination in helping sales teams learn
the questions to ask – as well as helping them to refine their intuition as it related to the
customer base.

Conclusion

There are plenty of variables when it comes to landing a sale, but a salesperson’s
personality and behavior are a significant factor. Sales representatives do well to
cultivate traits that help build relationships and earn trust. It is those personality traits
that often help seal the deal and make the sale.

https://www.gavelintl.com/role-personality-sales-marketing/#:~:text=A%20sales
%20representative's%20personality%20and,they%20sell%2C%20do%20or%20make.

20
Ten sales personality traits that will help you push the
horizons of your selling career.
Conscientiousness

This trait features prominently in many studies that explore human success.
Endorsed by acclaimed author and academic Steve W. Martin and billionaire
philanthropist Warren Buffett, conscientiousness encompasses many characteristics
such as responsibility, accountability, honesty, and dependability. Conscientious people
plan and organize for success, own their mistakes, and hold themselves accountable for
their performance. Conscientious people are recognizable for their ability to fulfill their
side of the bargain.

Curiosity

Virtually any sales skill can be learned, but to master a skill, a learner must be
curious. A seller with innate curiosity tends to be more open to new things and is happy
learning new techniques, tools, and methods. Sales is a constantly evolving field and
most top-tier professionals find joy in discovering new knowledge and learning new
tricks.

Drive

Obviously, low motivation will dampen your performance. If you're not

enthusiastic about something, it will show one way or another. But how do you remain
upbeat in a field notorious for bringing everyone down? You draw inspiration from
within, not from the external circumstances you can’t control. Self-motivated sellers
retain the energy and competitiveness they need to smartly engage customers and beat
their performance metrics.

Goal-Oriented

Successful sellers not only have a goal in mind, they also persist in achieving
that goal. Being goal-oriented mean sellers make and execute effective plans that move
them closer to their team’s overall business objectives. For example, if an account
requires the nod of seven decision makers, goal-oriented sellers will target each
decision-maker and use the right personalized tactic to secure everyone’s sign-off. High
sales performers relish the experience of pursuing goals and visualize the rewards for
achieving them.

Team Player

New sales environments demand a different creature. In the digital economy,

only sellers with high levels of sociability and adaptability can thrive. Today, it takes a
21
game plan played out by many stakeholders to close a single deal and succeed as a
team in B2B sales. Professionals who don't enjoy teamwork and who lack the flexibility
to adapt with new tools, approaches, and tactics will struggle in B2B sales.

Empathy

To achieve excellence, today’s sellers must go beyond sociability. They should

possess enough empathy to accurately see where different people are coming from,
which experiences truly delight them, and which pain points hurt the most. Because
business has become buyer-focused, sellers should translate their empathy into a
customer-centric mindset. Sellers with high levels of empathy are better at listening,
negotiating, and closing deals with customers.

Humility

Contrary to the B2B SaaS "sales bro" stereotype, many high performers actually
exhibit high levels of humility. In the new buyer-centric B2B market, many prospects
prefer professionals who are approachable rather than aggressive. Humble sellers tend
to give credit to others and have better relationship-building skills.

Grit

To thrive in the tough sales environment, salespeople have to be tougher. Grit

makes it possible for a seller to continue striving for the goal even after repeated
rejections, disappointments, and setbacks. Sellers with grit have the ability to bounce
back and sell the next meeting as if it was their first.

Optimism

Nothing beats a positive attitude. Optimistic sellers are easier to relate to and
easier to work with. Buyers can pick up on their positive energy and are more likely to
feel good about your product when they feel good about the seller's attitude. Even if no
sale happens, at the very least they'll have made a connection. One study of MetLife
sellers revealed that professionals with a positive outlook outsold their pessimist peers
by as much as 57%.

Ambition and Passion for Sales

Finally, the vast majority of professionals who succeed in sales come to love the
craft, even if they started out hating it. You can’t remain in sales very long unless you
develop affinity and affection for selling. Whether it's the thrill of the sale, belief in the
company's mission, relationships with customers, or something else, successful
salespeople have a reason to keep coming back to work each day. That reason is
rooted in ambition and passion.

22
Level Up With Tech

While it might be possible to develop some traits over time, they are largely
inherent and may take more effort than it's worth to acquire. If you have some (or most)
of the foregoing traits — good for you. There is awesome technology that can elevate
your sales performance.

https://www.outreach.io/blog/sales-personality-traits#:~:text=A%20person%20with%20a
%20sales,closing%20higher%2Dvalue%20deals%20faster.

How to improve sales personality ?

The personality is the personal distinction or dynamic force which is felt by
everybody who comes within the radius. It is one’s ability to impress favorably those he

23
meets. Sales personality is the sum total of all qualities like physical features,
mannerism, conduct, character, habit etc. That is sufficient to influence the customers
favorably. By using these ability and qualities the salesman is able to impress the
customers and many of them buy and enjoy the products or services.

There are a number of traits or qualities that make up the sales personality.
According to Prof. Davar, “The positive qualities which bring success in the field of
salesmanship are tact, courtesy, kindness, courage, confidence, honesty,
unselfishness, loyalty, cheerfulness and good health.”

Some salesman are both the certain qualities, i.e. they are gifted with certain
talents. But it is impossible to find all the positive qualities within a salesman. Therefore,
there are many qualities that can be developed. For example, a salesman possessing
good health may not have good manners. These qualities can be learnt. Similarly,
certain physical qualities can be improved by like curing bad breath, improving ill health
by exercising etc. Qualities like tolerance and patience can be developed by habit which
sales talks and good manners can be learnt from seniors.

A good salesman always tries to acquire at least some if not all of the personal
development qualities. Proper attempt and sincere practice helps him to develop such
qualities. Sales personalities can also be developed by proper training. It is the
responsibility of the organization to impart such training to their sales force. This will
help them to mould themselves into various changing circumstances.

However, it is impossible for every salesman to acquire all the personal

development qualities. There may remain deficiencies some where or the other. In such
cases, the salesman should try to compensate the drawback of one quality by excelling
another. For example, if he is not good in talking with customers he can please the
customers by excellent manners and behavior. Thus it can be concluded that a
salesman generally has some born qualities in him. He acquires some qualities by
learning or training. Therefore, a salesman is born and not made.

https://www.preservearticles.com/preserve-your-articles

CHAPTER 3
Social Responsibility and Ethics

24
 Social responsibility is an ethical theory in which individuals are accountable for
fulfilling their civic duty, and the actions of an individual must benefit the whole of
society. In this way, there must be a balance between economic growth and the welfare
of society and the environment. If this equilibrium is maintained, then social
responsibility is accomplished.

What it Means to be Socially Responsible and Ethical?

The theory of social responsibility is built on a system of ethics, in which

decisions and actions must be ethically validated before proceeding. If the action or
decision causes harm to society or the environment, then it would be considered to be
socially irresponsible.

Moral values that are inherent in society create a distinction between right and
wrong. In this way, social fairness is believed (by most) to be in the “right”, but more
frequently than not this “fairness” is absent. Every individual has a responsibility to act in
manner that is beneficial to society and not solely to the individual.

Find out how Social Justice and Environmental Justice are intrinsically interconnected.

When Do Social Responsibility and Ethics Apply?

The theory of social responsibility and ethics applies in both individual and group
capacities. It should be incorporated into daily actions/decisions, particularly ones that
will have an effect on other persons and/or the environment. In the larger, group
capacity, a code of social responsibility and ethics is applied within said group as well
as during interactions with another group or an individual.

Businesses have developed a system of social responsibility that is tailored to

their company environment. If social responsibility is maintained within a company, then
the employees and the environment are held equal to the company’s economics.
Maintaining social responsibility within a company ensures the integrity of society and
the environment are protected.

Often, the ethical implications of a decision/action are overlooked for personal

gain and the benefits are usually material. This frequently manifests itself in companies
that attempt to cheat environmental regulations. When this happens, government
interference is necessary.

Unfortunately, social responsibility and ethics are often not practiced by American
companies outside of U.S. borders, which makes regulation difficult.

The Pachamama Alliance

25
 Pachamama Alliance is an organization that seeks to instill social responsibility in
the industrialized or “modern” world. Our partnership with the indigenous Ecuadorian
tribe, the Achuar, began when they recognized the imminent threat of oil drilling in their
home. This tribe, hidden deep in the Amazon forest, has inhabited this area for
thousands of years and is at risk of total destruction.

The goal of The Pachamama Alliance is to restore a sense of active decision-

making to the people and companies of the modern world. Currently, the Achuar and
their home are in danger because of our addiction to crude oil. This addiction is the
result of a faulty system of beliefs that disregards the environment, its inhabitants, and
the consequences of our actions. A change in this universal mentality is imperative if the
Achuar are to survive this threat; in order to do so, pandemic social responsibility is
essential.

https://www.pachamama.org/social-justice/social-responsibility-and-ethics

B. Company

Companies are increasingly ramping up their focus on social responsibility,

whether its championing women’s rights, protecting the environment, or attempting to
obliterate poverty, on local, national, or global levels. From an optics perspective,
socially responsible companies project more attractive images to both consumers and
shareholders alike, which serves to positively affect their bottom lines.

KEY TAKEAWAYS

-Being a socially responsible company can bolster a company's image and build its
brand.

-Social responsibility empowers employees to leverage the corporate resources at their

disposal to do good.

-Formal corporate social responsibility programs can boost employee morale and lead
to greater productivity in the workforce.

-Customers Matter

-Embracing socially responsible policies goes a long way towards attracting and
retaining customers, which is essential to a company’s long-term success. Furthermore,
many individuals will gladly pay a premium for goods, knowing that part of the profits will
be channeled towards social causes near and dear to them.

Companies can likewise witness increased foot traffic if they enhance the local
community. For example, banks that dispense loans to low-income households are apt
to see an uptick in business, as a direct result.

26
Other Key Practices

Socially responsible companies tend to attract employees who are eager to make a
difference in the world—in addition to simply collecting a paycheck. With large
companies, there is strength in numbers, where collective employee efforts can achieve
substantial results, which increases workplace morale and boosts productivity.

Community-oriented companies often enjoy a leg up on their competition, as

well, thanks to superior brand imaging. For example, Tesla Inc. (TSLA) CEO Elon Musk
has successfully attracted environmentally-minded consumers, with his line of cutting
edge electric-powered cars and green automotive products.1

Examples of Corporate Social Responsibility

Coca-Cola Company (KO)

In 2010, Coca-Cola started the 5by20 initiative to empower women across the globe.2
The company stated:

Through 5by20 programs around the world, we equip women entrepreneurs to

overcome social and economic barriers by providing business skills training, access to
financial services and assets, and connections with peers and mentors. The women
participating in 5by20 work in roles across our value chain, including retailers, suppliers,
producers, artisans and more. 3

Visa Inc. (V)

Through its Financial Inclusion program, Visa has developed innovative ways of
bringing digital cash to places in the world where the financial infrastructure doesn't
exist or for people who don't have access to the financial system, like residents of many
developing countries.4 The company stated:

Today, about half the adult world lives in the informal economy, dealing exclusively in
cash. To be one of these estimated two billion people is to face financial barriers that
make life risky, expensive and inefficient. Financial Inclusion helps put people on a path
out of poverty, creates productive, empowered citizens, fosters business opportunities
and fuels economic growth. 4

The Bottom Line

Socially responsible companies cultivate positive brand recognition, increase customer

loyalty, and attract top-tier employees. These elements among the keys to achieving
increased profitability and long-term financial success.

Being Socially Responsible to:

27
A. Pospect

Abstract

In the world practice, corporate social responsibility (CSR) is recognized an

important component of sustainable development strategy, for which reason
governments of many countries pay considerable attention to the promotion of CSR
ideas at the national level, creating favourable conditions for socially responsible
behaviour of national and foreign enterprises. The author aims to analyse the
experience of regulation of corporate social responsibility policy in the EU Member
States, to show the practice of national governments of the EU Member States in the
field of CSR, and to determine prospects of corporate social responsibility at the modern
development stage in view of implementing the concept of sustainable development.
Summarizing approaches to the definition of CSR, it can be emphasized that CSR
should positively influence society, in which the enterprise operates. It is a free choice in
favour of increasing the welfare and moral and ethical values of society through
appropriate approaches to doing business. Relations between enterprises both in the
European Union and in other countries are increasingly based on the principles of CSR.
Compliance with these principles becomes an important prerequisite for attracting
foreign investment and obtaining government orders. In the international context, CSR
is an efficient instrument to develop partnership and cooperation of countries in the
context of achieving the Millennium Development Goals, to control the negative
influence of the industrial sector on ecology, to prevent social crises, as a consequence,
to ensure sustainable development of the world civilisation. Among the European
institutions, the European Commission's committees play a key role in disseminating the
idea of CSR. One of the main factors in strengthening the EU economy is considered
precisely the stable growth based on the rational use of resources, ecology, and
competition. Plans of the Strategy for 2012-2015-2020 clearly show that the European
Union intends to strengthen control over economic management and "voluntarily oblige"
the business to follow the rules of CSR. The goal of a new CSR Strategy is to create
conditions favourable for sustainable development, responsible business conduct, and
permanent employment in the medium and long term. Key changes in comparison with
the policy for 2010 - definition of corporate social responsibility as "Responsibility of
enterprises for their impact on society" and rejection of the principle of voluntariness:
"the European Commission recognizes that some regulations stimulate CSR, therefore,
public authorities should support the CSR development by applying a mix of voluntary
and regulatory policies". As the study showed, the governments of the EU countries are
actively engaged in the development and promotion of corporate social responsibility.
The role of the state is manifested in the implementation of the following key functions:
the state as a legislator and a controlling authority; the state as an employer; the state
as a consumer and a buyer; the state as a partner; the state as an institutional investor;

28
the state as a participant in international relations. The most significant results have
been achieved by those EU Member States that use the systemic approach to CSR
development. In these countries, responsible state structures have been formed that
coordinate work in all areas. The approach to the choice of instruments is individual and
is selected taking into account the priorities of the country's socio-economic
development and the importance of economic, environmental, and social aspects. An
example of Great Britain, France, Belgium, Estonia, and Spain shows the possibility of
successful CSR development.

https://ideas.repec.org/a/bal/journl/2256-074220175425.html

Companies are increasingly ramping up their focus on social responsibility, whether its
championing women’s rights, protecting the environment, or attempting to obliterate
poverty, on local, national, or global levels. From an optics perspective, socially
responsible companies project more attractive images to both consumers and
shareholders alike, which serves to positively affect their bottom lines.

KEY TAKEAWAYS

Being a socially responsible company can bolster a company's image and build its
brand.

Social responsibility empowers employees to leverage the corporate resources at their

disposal to do good.

Formal corporate social responsibility programs can boost employee morale and lead to
greater productivity in the workforce.

Customers Matter

Embracing socially responsible policies goes a long way towards attracting and
retaining customers, which is essential to a company’s long-term success. Furthermore,
many individuals will gladly pay a premium for goods, knowing that part of the profits will
be channeled towards social causes near and dear to them.

Companies can likewise witness increased foot traffic if they enhance the local
community. For example, banks that dispense loans to low-income households are apt
to see an uptick in business, as a direct result.

Other Key Practices

Socially responsible companies tend to attract employees who are eager to make a
difference in the world—in addition to simply collecting a paycheck. With large

29
companies, there is strength in numbers, where collective employee efforts can achieve
substantial results, which increases workplace morale and boosts productivity.

Community-oriented companies often enjoy a leg up on their competition, as

well, thanks to superior brand imaging. For example, Tesla Inc. (TSLA) CEO Elon Musk
has successfully attracted environmentally-minded consumers, with his line of cutting
edge electric-powered cars and green automotive products.1

Examples of Corporate Social Responsibility

Coca-Cola Company (KO)

In 2010, Coca-Cola started the 5by20 initiative to empower women across the globe.2
The company stated:

Through 5by20 programs around the world, we equip women entrepreneurs to

overcome social and economic barriers by providing business skills training, access to
financial services and assets, and connections with peers and mentors. The women
participating in 5by20 work in roles across our value chain, including retailers, suppliers,
producers, artisans and more. 3

Visa Inc. (V)

Through its Financial Inclusion program, Visa has developed innovative ways of
bringing digital cash to places in the world where the financial infrastructure doesn't
exist or for people who don't have access to the financial system, like residents of many
developing countries.4 The company stated:Today, about half the adult world lives in
the informal economy, dealing exclusively in cash. To be one of these estimated two
billion people is to face financial barriers that make life risky, expensive and inefficient.
Financial Inclusion helps put people on a path out of poverty, creates productive,
empowered citizens, fosters business opportunities and fuels economic growth. 4

The Bottom Line

Socially responsible companies cultivate positive brand recognition, increase

customer loyalty, and attract top-tier employees. These elements among the keys to
achieving increased profitability and long-term financial success.

C. SalesmenFunctions, Duties and Responsibilities of a Salesman

1. Selling

The fundamental duty of a salesman is selling. This duty includes meeting the
prospects, presenting and demonstrating the products, inducing the prospects to buy,
taking orders and effecting sales.

30
2. Guiding the buyers

A salesman should guide the buyers in buying the goods they want.

3. Attending to complaints

A salesman should attend to the complaints of the customers immediately and try
to settle their grievances quickly and sincerely.

4. Collection of bills

Sometimes, a salesman may be required to collect the outstanding bills relating

to the goods sold by him. In such a case, he has to collect the bills and remit the
amount to his firm.

5. Collection of credit information

A salesman may, sometimes, be required to collect information about the credit-

worthiness of the customers. In such a case, he has to collect detailed information and
submit it to his firm in time.

6. Reporting

A salesman, especially a traveling salesman, is required to send daily, weekly or

monthly reports to his firm, providing information about the calls made, sales effected,
services rendered, route schedule, expenses incurred, business conditions,
competition, if any, etc.

https://accountlearning.com/functions-duties-responsibilities-salesman/

D. Competitors

Corporate Social Responsibility

Corporate Social ResponsibilityA conflict between the interests of the stakeholder

and the shareholder is endemic while addressing the issue of whose interests to
prioritize. The provisioning to meet the interest of the stakeholders is seen as a dilution
of the financial returns to the shareholders.

As a dominant institution of the society, business is now expected to conduct itself in a

manner that the negative impact of its economic behavior is reduced.

There is a reasoned logic in the assumption that business has to act voluntarily
to emerge not only as a wealth-generating institution but also as a responsible, sensitive
institution of society whose multiple resources and expertise can be used to improve the
human existential conditions.

31
 The stakeholders expect the organization to optimize its economic, social, and
ecological performance. The three are not isolated from each other but interlinked.

The economic performance expectations imply that the organization must

undoubtedly be profitable. An unprofitable organization does not at all optimize the use
of resources, most of which are no longer as freely available as before.

Beyond capital appreciation, the organization is expected to develop knowledge

and intellectual capital, which can be harnessed to meet some of the legitimate but
unmet needs of society (the solar kiosk in the last module is one such example).

The compliance of regulations is mandatory as the regulations are seen as

safeguards for the larger interest and not controls on business. The organization has
developed sufficient knowledge to comply and, at the same time, be profitable.

The economic role of business has the potential to create social disparities by
concentrating more on wealth in the hands of some people. The role of business in the
equitable distribution of the economic benefits is accepted.

In 2012, many billionaires under the stewardship of Berkshire Hathaway founder

Warren Buffet had come forward to pledge large donations for global humanitarian
causes.

Organizations are well-placed to develop programs for employee welfare and

safety, encouraging the disadvantaged groups to join the mainstream through programs
of inclusive growth or diversity enhancement.

Organizations are also well placed for further learning and sharing for the greater
good.

Ecological concerns are gaining ground with the depletion of resources, climate
change, and ecologic disasters such as the Exxon Valdez accident, methyl isocyanate
leakage at the Bhopal plant of Union Carbide.

By applying the simple systems concept to the organization, we see that they consume
resources at the stage of input, transformation, and output. In the process, some of the
natural resources get depleted.

Resource depletion and pollution are the two important consequences of the production
of goods and services.An ecological balance must be maintained in the production and
consumption of goods and services. This places the onus for responsible behavior on
the organizations.

32
Responsible behaviour on the organisations

What is Corporate Social Responsibility?

In your daily life, you perform several activities.

For example, brushing your teeth, listening to your parents, showing respect to elders
obeying traffic rules on the road, etc. Now, why do you perform all these activities?

It is because you live in a family as well as in society and the members of your
family, as well as the society, want you to do all of them. They do several things for you
and expect something from you, which you must do.The expectations of the family or
society become your obligations, which you need to fulfill.

For example, taking care of your parents or children, keeping the road clean by not
throwing garbage on it, etc. There are also obligations towards yourself, which you need
to fulfill.

For example, taking food timely, going to sleep early at night, etc. that keep you fit and
takes care of your health. Now you fulfill all these obligations by performing certain
activities which are called your responsibilities.

Any responsibility you have, particularly towards members of the society with
whom you interact or towards the society in general, is called your social
responsibility.This is true in the case of business also. As we know, every business
operates within society.It uses the resources of society and depends on society for its
functioning. This creates an obligation on the part of the business to look after the
welfare of society.So all the activities of the business should be such that they will not
harm, rather they will protect and contribute to the interests of the society.

Social responsibility of business refers to all such duties and obligations of business
directed towards the welfare of society.

These duties can be a part of the routine functions of carrying on business activity, or
they may be an additional function of carrying out welfare activity.

Let’s take an example.

A drug-manufacturing firm undertakes extensive research and, thus, produces

qualitatively superior drugs. It also provides scholarships or fellowships to the family
members of its employees for studying abroad.

We find, in both cases, the drug-manufacturing firm is carrying out its social
responsibility.

33
In the case of the former, it is a part of its routine business function, while in the latter
case, it is a welfare function.

According to UNIDO (United Nations Industrial Development Organisation),

“Corporate Social Responsibility is a management concept whereby companies
integrate social and environmental concerns in their business operations and
interactions with their stakeholders.”

Corporate social responsibility implies a commitment of the organizations to be ethically,

economically, socially, and ecologically responsive voluntarily.

This extends beyond the regulatory compliance, and the actions are taken thus are is
more than the compliance requirements. The voluntary compliance of social and
ecological responsibility of companies is called Corporate Social Responsibility (CSR).

Concept of Social Responsibility in Business

We all know that people engage in business to earn a profit. However, profit-
making is not the sole function of the business. It performs several social functions, as it
is a part of society.

It takes care of those who are instrumental in securing its existence and survival like the
owners, investors, employees, consumers, and government in particular and the society
and community in general.

So, every business must contribute in some way or the other for their benefit.

For example, every business must ensure a satisfactory rate of return to investors,
provide a good salary, security, and proper working condition to its employees, make
available quality products at a reasonable price to its consumers, maintain the
environment properly, etc.

However, while doing so, two things need to be noted to view it as a nodal responsibility
of business.

First, any such activity is not charity.

It means that if any business donates some amount of money to any hospital or
temple or school and college etc., it is not to be considered as the discharge of social
responsibility because charity does not imply fulfilling the responsibility.

Secondly, any such activity should not be such that it is good for somebody and bad for
others.

34
 Suppose a businessman makes a lot of money by smuggling or by cheating
customers and then runs a hospital to treat poor patients at low prices; his actions
cannot be socially justified.

Social responsibility implies that a business person should not do anything

harmful to society in the course of his business activities.

Thus, the concept of social responsibility discourages business people from adopting
unfair means like black-marketing, hoarding, adulteration, tax evasion, and cheating
customers, etc. to earn a profit.

Instead, it encourages them to earn profit through judicious management of the

business by providing better working and living conditions to its employees, providing
better products, after-sales-service, etc. to its customers and simultaneously to control
pollution and conserve natural resources.

Why Should Business be Socially Responsible?

The concept of social responsibility of business was first mooted by President Wilson
(USA) as early as 1913.

Social responsibility is a voluntary effort on the part of a business to take various

steps to satisfy the expectation of the different interest groups.

As you have already learned, the interest groups may be owners, investors, employees,
consumers, government and society, or community.

But the question arises, why the business should come forward and be responsible for
those interest groups. Let us consider the following points:

Public Image

The activities of business towards the welfare of the society earn goodwill and
reputation for the business, the earnings of business also depend upon the public image
of its activities.

People prefer to buy products of a company that engages itself in various social
welfare programmers. Again, the good public image also attracts honest and competent
employees to work with such employers.

Government Regulation

To avoid government regulations, business people should discharge their duties

voluntarily. For example, if any business firm pollutes the environment, it will naturally

35
come under strict government regulation, which may ultimately force the firm to close
down its business.

Instead, the business firm should engage itself in maintaining a pollution-free

environment.

Survival and Growth

Every business is a part of society. So for its survival and growth, support from
society is very much essential. The business utilizes the available resources like power,
water, land, roads, etc. of the society.

So it should be the responsibility of every business to spend a part of its profit for
the welfare of society.

Employee Satisfaction

Besides getting a good salary and working in a healthy atmosphere, employees

also expect other facilities like proper accommodation, transportation, education, and
training.

Employers should try to fulfill all the expectations of the employees because employee
satisfaction is directly related to productivity, and it is also required for the long-term
prosperity of the organization.

For example, if a business spends money on training the employees, it will have more
efficient people to work and thus, earn more profit.

Consumer Awareness

Nowadays, consumers have become very conscious of their rights. They protest against
the supply of inferior and harmful products by forming different groups.

This has made it obligatory for the business to protect the interest of the consumers by
providing quality products at the most competitive price.

Triple Bottom Line Approach for CSR

For being socially responsible, the triple-bottom-line approach is also advocated. The
phrase” “Triple Bottom Line” was coined by John Elkington in his book Cannibals with
Forks: the Triple Bottom Line of 21st Century Business, published in 1997.

3 Ps imply people, profits, and the planet.

36
 The idea of the 3P approach is that people, planet, and profits are interlinked.
People are not only employees but also that outside. The 3P organization does not
make decisions that harm or exploit the people (exploitation includes the employment of
child labor or unfair employment practices). The planet refers to the ecological
environment. The 3P organization is sensitive about the ecologic footprints its
consumption may leave, so it refrains from manufacturing that is ecologically disastrous
or unsustainable.

A life cycle assessment of its products is carried out to facilitate disposal. Profits are the
economic returns.

The return is not just the accounting return but also the return earned on good
practices. The 3P approach considers the argument that involvement with sustainability
and community renders businesses unprofitable, as being untenable.

The triple bottom line approach was first used in the corporate context by the Shell
Group in its 1997 sustainability report. Sustainability was first defined by the Brundtland
Commission of the United Nations in 1987.

Social Responsibility Model

For its societal strategy to be meaningful, an organization needs to decide upon the
following:

The extent of its involvement – from reactive to proactive, shown as ‘A.’

The choice of the area it will serve beyond regulatory compliance shown as ‘B.’

The resources it will commit to the area/ issue shown as ‘C.’

Social Responsibility Model

The extent of the organization’s involvement implies whether it seeks a proactive

posture or a reactive one. Usually, the earlier behavior of the business organizations
has indicated that they chose to be reactive rather than proactive.

The wisdom of being reactive was that the business of business is business, and the
organizations should not commit action and resources until compelled to do so.

Unless there was a compulsion, there was no sense in taking any decision as any
proactive behavior will only invite more restrictions.

The demands placed on a business evolve. Usually, there is a pattern in the emergence
of demand. Let us consider the issue of automotive emissions.

37
First, awareness at large is created about the harmful effects of the emissions, the
expectation of action follows the awareness, and some organizations may respond to it
and use it as a differentiating factor. Most others do not respond.

There is some dormancy for the issue, and then the demand for action rises, and then
enforcement through legislation is enforced. The corporate response is evolutionary and
not ad hoc.

However, some organizations are more proactive than reactive.

Even in the case of regulations, some organizations may set the bar beyond just
regulatory compliance because, as society learns, the acceptable levels of behavior
also change.

Whether the organization will be proactive or reactive will depend on managerial

knowledge and awareness, the type of industry the business organization is in, and the
economic health of the organization.

The choice of the area to be served

Organizations cannot meet all the expectations.

However, all the organizations can meet all the expectations by staggering them
among themselves and meeting those for which the organization has the
complementary skill and competency set.

Having fulfilled the various regulatory requirements, an organization may choose

to address the issues of ecological, social, governance, or economic segments in its
environment.

The choice would depend upon the relevance of the sector to the business, the
environment forces driving the attention to the cause/ issue, the skill set that an
organization has, and the kind of changes that it can bring about.

Resource Commitment

Engagement with any issue of concern involves resource commitment.

The organization has to decide upon how much time, money, workforce, goodwill, and
skills to commit to the cause. The commitment to the issue is usually determined by the
top management.

For example, a carbonated cold drinks manufacturer locates its plant in an area where
the water table is low.

38
The manufacturer will inevitably consume water and lower the water table still further.
This action is a cause of community resentment.

In the perception of the community, the organization has claimed resources for its
commercial use, and, naturally, it does something to restore the water table.

With the area being water-scarce, the actions of the organization attract negative
publicity.

At this juncture, the organization may treat it as more of a public relations exercise and
highlight some cosmetic action.

These will provide temporary respite. The involvement of senior managers and
the highlighting of the issue to the top management elicit a different response.

The organization develops a long term plan of water management with the active
involvement of the local community and government department experts.

It initiates voluntary action to improvise measures to recharge round water and also
educate the local community in simple measures they can adopt for recharge and
conservation.

It funds those initiatives. The organization decides to address issues of sustainable

agriculture and restoration of traditional water bodies and water harvesting systems.

These concerns are aligned with the business interest of the organization and, at the
same time, relevant to the community.

Some of the social initiatives are economically very beneficial, such as the
promotion of energy efficiency or recycling. These can be aligned with the competitive
strategy.

For example, recycling may reduce costs and also lead to differentiation. Many
organizations adopt such measures as the first steps toward social responsibility. This
serves two purposes.

First, such programs can be aligned with the existing operational programs of the
organization.

Secondly, the success of such programs reduces the managerial skepticism and makes
acceptance of subsequent programs easier. The programs are not seen as wasteful of
time.

The process of societal strategy formulation

39
 Societal strategy formulation, like corporate strategy formulation, is a complex
process. It has a political dimension as well as an analytical one.

On the one hand, there are the aspirations of the stakeholders. There are constraints
imposed by resources and managerial choices. The constraints that are already in place
have an impact on the societal strategy.

For example, the existing norms in many countries for effluent treatment or emissions
will impact the performance of the strategy in those areas.

If the regulations are strict and the price of non-compliance is high, whether or not the
segment is on the managerial agendas, it will be served. The resources consumed after
fulfillment of the obligations will be allocated for the other areas.

A large part of the societal budget may be consumed in compliance with existing
regulations organization develops its societal strategy

Within these constraints, shown as choice political and compliance dimensions, the
organization develops its societal strategy, which is to serve either the cause of socio-
efficiency or eco-efficiency or a combination of the two.

The example of the cola manufacturer above is a combination of both socio and eco-
efficiency. At the functional levels, the organization takes up those actions that are to be
integrated with operations.

Some of the operationally-oriented functional-level strategies are sustainable

procurement, mandatory disclosures, life cycle approach, sustainability reporting, and
sustainability audit.

These are integral to procurement, compliance in areas such as effluent disposal,

operations, finance, and marketing. Adoption of these in an integrated manner serves
an organization better than a disjointed or segregated adoption.

For example, if Wal-Mart follows the strategy of responsible procurement and labels its
products as being sourced from women for a cause and the sustainability accounting
apportions cost as a sustainable cost then the picture within the organization about the
rationale of the action and its financial accountability is clearer than would be if
procurement was a standalone exercise taken up sporadically.

These functional strategies have to be integrated with business-level strategies.For

example, sustainable procurement and sustainable accounting are linked, and the
procurement indices and percentage should be a part of the overall procurement rather
than a standalone exercise.

40
In a competitive world, only those organizations that serve the niche market for
sustainable products can compete only using sustainable materials.

Gradually, as customer awareness increases and they accept the need to pay more if
need be, the sustainable index in procurement can be increased.

Thus customer awareness will have to be a part of the sustainability strategy.

However, there is an emerging market for sustainable products such as cars

(electric) for which a different set of strategies would work and where the entire value
chain will be configured with different players following the same ethos.

Linking the social agenda of business with strategic management may be a

complex exercise but not an impossible one. How the agenda can be a part of the
overall strategy should be done from the initial stages to minimize resistance as the
organization scales up its sustainability actions across the organization.

This figure sums up the different stages an organization may go through before the
societal strategy is fully operational.

Social Responsibility Staircase

During the first stage, awareness of social issues is what is of concern either
because it has been made imperative or because the organization’s pro-activism has
shielded it from an ad hoc response to the imperative. It can choose its area of focus.

Once the issues are identified, the capability, build-up begins with management
support and resource commitment (as explained in the case of Wal-Mart and Huawei
and analysis of the process of responsiveness).

Articulation of societal strategy, which is an outcome of the political, regulatory,

and choice dimensions, is done. The measures for societal strategy may be simple
numbers, to begin with.

Over some time, the organization leverages these across functions to enhance
both its performance and the impact. Reinforcement and audits are done when the
organization begins to make resource commitment.

Having run a pilot with the steps as mentioned above, the organization replicates for the
same issue or another in a larger segment of the organization.

Related: Societal Marketing Concept

Responsibility Toward Different Interest Groups

41
 After getting some idea about the concept and importance of social responsibility
of business, let us look into the various responsibilities that a business has towards
different groups with whom it interacts.

The business generally interacts with owners, investors, employees, suppliers,

customers, competitors, government, and society.

They are called interest groups because, by every activity of a business, the interest of
these groups is affected directly or indirectly.

Responsibility Towards Owners

Owners are the persons who own the business. They contribute capital and bear the
business risks.

The primary responsibilities of business towards its owners are to:

Run the business efficiently.

Proper utilization of capital and other resources.

Growth and appreciation of capital.

A regular and fair return on capital invested.

Responsibility Towards Investors

Investors are those who provide finance by way of investment in debentures, bonds,
deposits, etc. Banks, financial institutions, and investing public are all included in this
category.

The responsibilities of business towards its investors are:

Ensuring the safety of their investment,

Regular payment of interest,

Timely repayment of the principal amount.

Responsibility Towards Employees

Business needs employees or workers to work for it. These employees put their best
effort for the benefit of the business. So it is the prime responsibility of every business to
take care of the interest of its employees.

If the employees are satisfied and efficient, then the only business can be successful.
The responsibilities of business towards its employees include:

42
Timely and regular payment of wages and salaries.

Proper working conditions and welfare amenities.

Opportunity for better career prospects.

Job security as well as social security like facilities of provident fund, group insurance,
pension, retirement benefits, etc.

Better living conditions like housing, transport, canteen, creches, etc.

Timely training and development.

Responsibility Towards Suppliers

Suppliers are businessmen who supply raw materials and other items required
by manufacturers and traders. Certain suppliers, called distributors, supply finished
products to the consumers.

The responsibilities of business towards these suppliers are:

-Giving regular orders for the purchase of goods.

-Dealing with fair terms and conditions.

-Availing a reasonable credit period.

-Timely payment of dues.

-Responsibility Towards Customers

No business can survive without the support of customers. As a part of the

responsibility of business towards them, the business should provide the following
facilities:

Products and services must be able to take care of the needs of the customers.

Products and services must be qualitative.

There must be regular ty in the supply of goods and services.

The price of goods and .ervices should be reasonable and affordable.

All the advantages and disadvantages of the product, as well as the procedure to use
the products, must be informed do the customers.

There must be proper after-sales service.

43
Grievances of the consumers, if any, must be settled quickly.

Unfair means like under weighing the product, adulteration, etc. must be avoided.

Responsibility Towards Competitors

Competitors are the other businessmen or organizations involved in a similar type of

business.

The existence of competition helps the business to become more dynamic and
innovative to make itself better than its competitors.

It also sometimes encourages the business to indulge in negative activities like resorting
to unfair trade practices. The responsibilities of business towards its competitors are:

-not to offer exceptionally high sales commission to distributors, agents, etc.

-Not to offer customers heavy discounts and /or free products in every sale.Not to
defame competitors through false or ambiguous advertisements.

Responsibility Towards Government

Business activities are governed by the rules and regulations framed by the
government. The various responsibilities of business towards government are:

Setting up units as per guidelines of the government

Payment of fees, duties, and taxes regularly as well as honestly.

Not to indulge in monopolistic and restrictive trade practice?

Conforming to pollution control norms set up by the government.

Not to indulge in corruption through bribing and other unlawful activities.

Related: Relationship between Government and Business Organizations

Responsibility Towards Society

A society consists of individuals, groups, organizations, families, etc.

They all are members of society. They interact with each other and are also dependent
on each other in almost all activities. There exists a relationship between them, which
may be direct or indirect.

Business, being a part of the society, also maintains its relationship with all other
members of the society.

44
Thus, it has certain responsibilities towards society, which may be as follows:

-to help the weaker and backward sections of the society

-to preserve and promote social and cultural values

-to generate employment

-to protect the environment

-to conserve natural resources and wildlife

-to promote sports and culture

-to assist in the field of developmental research on education, medical science,

technology, etc.

Social responsibility starts where the legal system ends. And CSR can be internal as
well as external to a business organization.

https://www.iedunote.com/corporate-social-responsibility

D. Yourself

Who's Responsible for Your Life?

You are totally responsible for your life. This is the foundational principle you
must embrace if you plan for happiness and success in your life and work. For many
people, everything is someone else’s fault. Every problem can be explained away with
reasons why they can’t affect the situation or the outcome, especially at work where it is
easy to find excuses because people are so closely intertwined—and every project has
a chain of internal customers who are dependant on others in the chain.

Every failure has a scapegoat that they can use to avoid taking responsibility for their
own actions—failure is never the result of the choices they made.

If You Don't Take Responsibility?

But without taking responsibility, you're all the more likely to look at your career as a
failure because you allowed any passing wind to blow you around, all the while blaming
the wind for how things turned out. When you fail to responsibly guide your direction
and outcomes, you set the stage for creating a miserable life—a life that fulfills none of
your dreams and aspirations.

45
Make No Excuses

Excuses for failure, excuses about your choices in life, excuses about what you
feel you have accomplished—and what you have not—fuel dysfunctional thinking and
consequently, undesirable actions and behaviors.

Making excuses instead of taking one hundred percent responsibility for your
actions, your thoughts, and your goals are the hallmark of people who fail to succeed
both in their professional lives and personal lives.

Part of the power of taking responsibility for your actions is that you silence the
negative, unhelpful voice in your head. When you spend your thinking time on success
and goal accomplishment, instead of on making excuses, you free up the emotional
space formerly inhabited by negativity.

This is especially true as that negative voice in your head will run endless tapes
of dissatisfaction and rehearse negative, unsatisfying outcomes over and over and over
again—ad nauseum.

The next time you catch yourself making an excuse, whether for the late project,
the unmet goal, or the job you have chosen to work, gently remind yourself—no
excuses.

Interrupt that incessant tape that is playing in your mind and stop rehearsing that
excuse-filled conversation. Spend your thought time planning your next successful
venture. Appreciate what you have today, not what you sorrow over from yesterday, or
are concerned about for tomorrow. Positive thinking becomes a helpful habit. Excuses
for your already taken actions fuel failure.

Take Responsibility for Your Life

People who take complete responsibility for their lives experience joy and control
of circumstances. They are able to make choices because they understand that they
are responsible for their choices.

Indeed, even when events that are not under your control go awry, you can at the very
least determine how you will react to the event. You can make an event a disaster or
you can use it as an opportunity to learn and to grow.

The most important aspect of taking responsibility for your life is to acknowledge
that your life is your responsibility. No one can live your life for you. You are in charge.
No matter how hard you try to blame others for the events of your life, each event is the
result of choices you made and are making.

46
 Want to travel? Then, travel. It is not your job, your spouse or partner, the cost,
or the time that holds you back from achieving your dreams. It is you. Want to weigh a
certain number of pounds? Then, eat and exercise like the person who would weigh that
particular weight.

Want a promotion into a management position? Then, act like, look like, and
practice the actions that successful managers exhibit in your organization in that role,
Make your desire known, too, as you will never realize your goal if you keep it a secret.
Passed over several times? Ask what you need to do to earn a promotion. Are you still
passed over? Look for a new job to continue to pursue your dream.

Are You Taking Responsibility or Placing Blame?

Above all else, listen to that little voice in your head. And, observe yourself
talking with coworkers, family members, and friends. Do you hear yourself taking
responsibility or placing blame?

Eliminate blame, eliminate excuses. If the blame track or the excuse track plays
repeatedly in your mind, you are shifting responsibility for your decisions and life to
others.

Listen to yourself when you speak. In your conversation, do you hear yourself
blame others for things that don’t go exactly as you want? Do you find yourself pointing
fingers at your coworkers or your upbringing, your parent’s influence, the amount of
money that you make, or your spouse? Are you making excuses for goals unmet or
tasks that missed their deadlines? If you can hear your blaming patterns, you can stop
them.

If an individual you respect supplies feedback that you make excuses and blame
others for your woes, take the feedback seriously. Control your defensive reaction and
explore examples and deepen your understanding of the coworker or friend. People
who responsibly consider feedback attract much more feedback.

You Matter

Live every day as if what you do matters—because it does. Every choice you make;
every action you take—matters. Your choices matter to you and create the life you live.
Your choices matter at work, too. You choose the path of productivity and contribution
or, you choose the path of a marginal employee.

Every action you take affects organizational progress in one way or in another.
You always make a difference. Let that difference move the world forward. You matter.
And, your thoughts matter, too.

47
Your Thoughts Matter

“Whatever we plant in our subconscious mind and nourish with repetition and
emotion will one day become a reality." Earl Nightingale’s apt summation of the power
of your thoughts is one of the most significant statements ever made. Think about it.
Your thoughts are always with you.

And, they tend to play themselves over and over again in your head. They either
support you to think about and take positive action or the opposite. Your thoughts either
criticize or support the accomplishment of your goals.

Listen to the voice in your mind. You know the drill. Negative thoughts are
overwhelming and they can take control of your mind for days. But, how to get even,
how to replay or recast a situation that has already occurred, or how to make excuses
or blame others is not powerful, positive thinking.

When your thoughts are negative or unsupportive of your happiness and

success, you have to change your thinking. Gently—don’t beat yourself up—redirect
your thinking to thoughts that will support your success and happiness. Laugh, if you
can, when you think about the time you spent obsessing over matters that are over and
completed.

Your thoughts govern the success of your interpersonal interactions. Your

thoughts are the headlights illuminating your path in the darkness. They always precede
you and your actions. Said Nightingale, “The mind moves in the direction of our
currently dominant thoughts." Believe him.

https://www.thebalancecareers.com/how-to-take-responsibility-for-your-life-1919214

CHAPTER 4
Knowing your products and services
Product knowledge is an essential sales skill. Understanding your products'
features allows you to present their benefits accurately and persuasively. Customers

48
respond to enthusiastic sales staff who are passionate about their products and eager
to share the benefits with them.

Get to know your products or services

Customers are more likely to trust sales people who show confidence in
themselves and what they are selling. You can build this confidence by increasing your
knowledge of your products or services.

Use conventional and creative sources of information to learn about your products or
services, including:

-your own experiences using the products

-product literature such as brochures and catalogues

-online forums

-feedback from customers

-trade and industry publications

-internal sales records

-your team members

-visits to manufacturers

-sales training programs

-competitor information.

-Be honest about shortcomings

If your product or service has some shortcomings in certain situations, be honest

about them with your customers. Let them know early on if you don’t think your product
or service is right for them and they will be more inclined to trust you when they need
something in the future.

Turn product features into benefits

As you engage customers, you can use your knowledge to lead your customer
through the sales process, and make their experience an enjoyable one that they'll want
to revisit.

49
Successful salespeople know all of their products' features and skilfully turn these
features into benefits for their customers.

To practice this skill, list your product's features, potential benefits, and all information
up front for your customers. Consider how you can communicate the potential benefits,
for example:

Product features Possible benefits for your customer

-Its purpose It will meet your needs and save you time and
money

-How it works It is easy to use so you won't be frustrated by

complicated features

-How it is developed or

manufactured It supports local industry and helps the environment

-How it is checked for quality You can be confident it will work

-How it is delivered You don't have to worry about delivery— we organise

that for you

-How it is maintained and

serviced You can be assured that if it needs maintenance, we

will take care of it for you

-How long it is likely to last (including

any warranties) You can be confident that if it has any problems we

will fix it or replace it while under warranty

-Its price You can comfortably afford it

-How it compares to similar products

the business offers You can base your decision on the good
reputation our business has earned for selling
other well-regarded products

-How it compares to competitors'

products You are receiving quality and value for money

-Its strengths and limitations (the

50
capability of the product to deliver

benefits to clients) You are buying a product that is well-matched to

your particular needs

Other products that might complement it Buying this companion product will allow you to
meet the needs of your entire household.

https://www.business.qld.gov.au/running-business/marketing-sales/sales/skills/know-
product#:~:text=Product%20knowledge%20is%20an%20essential,share%20the
%20benefits%20with%20them.

Introduction

The objective of this paper is to study the importance of different sources of

information on product and process innovations. For years, the process of obtaining
innovations was developed under the logic of closed innovation, where internal R&D
investment was the most important factor of the innovation process [1,2]. The problem
with this model is that, if a firm is too internally focused, it misses out on the contribution
of external knowledge in its innovation activities. This fact caused a shift in the
conception of how firms generate new ideas and bring them to the market, giving rise to
the open innovation model. Chesbrough ([3]: 24) defines open innovation as “a
paradigm that assumes that firms can and should use external ideas as well as internal
ideas, and internal and external paths to market, as firms look to advance their
technology”. This perspective redefines the limits between the firm and its environment
in terms of innovation activities, making companies more porous and more likely to be
embedded into networks of different actors [4,5].

The open innovation model highlights the role of a variety of useful external sources
of information such as lead users, suppliers, rivals and universities among others [4,6].
Openness implies a commitment with external sources, but not a total dependence on
them [7]. Attention to external sources does not diminish the relevance of internal
knowledge [8], as firms that invest in internal sources of innovation are better able to
recognize and evaluate external information [9]. Additionally, they are also more able to
integrate and use their knowledge [9]. The evidence on complementarities between
external and internal knowledge confirms this arguments (see, for example [10,11]).

Although open innovation is a rather new concept, it has received a significant

amount of attention from both academics and firms [12]. The Connect+Develop strategy
(http://www.pgconnectdevelop.com/) introduced by Procter and Gamble [13] or the
Chorus model of Eli Lilly (http://www.choruspharma.com) are examples of the adoption

51
of an open innovation model. Open innovation models have also produced substantial
improvements in time and cost in R&D activities undertaken by pharmaceutical firms
[13–15]. However, despite the growing body of knowledge, quantitative studies involving
large samples are needed to understand the consequences of open innovation [12,16].

Rigby and Zook [17] describe the benefits of opening the innovation process to
external knowledge flows. Firms that use external sources can broaden their knowledge
base and access and integrate a greater variety of ideas to create new products and
processes. They are also in a better position to face the challenges of increasing R&D
risks and costs, shorter product life cycles and faster renewal [1,3,17,18]. However, as
Laursen and Salter [4] have argued, an excessive reliance on external knowledge can
be harmful. The reason is that an intensive use of external sources generates costs that
must be taken into consideration. Some organizations over-search, spending too much
time and effort looking for external sources [2], which may be detrimental in terms of
innovation performance. Additionally, an excessive reliance on external information
sources increases coordination and monitoring costs and could affect the building of
knowledge stocks within the firm [1,19].

Previous studies have shown the effect of internal and external sources of
information on the novelty of product innovation [4,20]. However, new products are not
the only result of open innovation; service and process innovations are other important
results of open innovation practices, either to create enhanced customer support or to
support internal business efficiencies [21]. A smaller number of studies have centered
on process innovation (see, for example [22]). Nevertheless we are not aware of any
studies that analyze how different sources of information affect the development of both
product and process innovation. Additionally, the literature often ignores the extent to
which different kinds of innovation rely on different sources of knowledge. This study
addresses these gaps by providing a comprehensive analysis of the sources of
information that affect the generation of product and process innovation. Furthermore,
the introduction of product innovation may cause the development of process
innovations, and process innovation can stimulate the production of product
innovations. Previous research (see, for example [23,24]) suggests the existence of
complementarities between product and process innovation. For example Reichstein
and Salter ([22]: 677) suggest that: “the two types of innovation should be seen as
“brothers” rather than “distant cousins”. Analyzing these questions allows a deeper
understanding of the innovation process at the firm level by identifying internal and
external factors that affect the joint generation of the two types of innovation.

We use information from the Spanish Technological Innovation Panel (PITEC),

(accessible from http://icono.fecyt.es/PITEC/Paginas/por_que.aspx), for 2005–2012.

52
This data offers information on the innovation activities of a large sample of Spanish
manufacturing firms, including the type of innovations obtained (product and process)
and the sources of information used. Additionally, the data allows us to distinguish
between three types of process innovations: innovations in manufacturing methods, in
logistics and in supporting activities. We expect the sources of information used by the
firm to be positively related to the introduction of both product and process innovation.
At the same time, our hypothesis is that the pattern of influence will differ between
product and process innovations and, in the case of the latter, between the three types
identified. The methods of analysis are bivariate and multivariate probit models where
the dependent variable is the generation of product or process innovation, which is
explained by internal and external sources of information and several control variables.

Materials and Methods

Sample and data

The empirical analysis was carried out using the Spanish Technological
Innovation Panel (PITEC). PITEC is sponsored by the Fundación Española para la
Ciencia y la Tecnología (FECYT) and the COTEC Foundation and managed by the
National Institute of Statistics. The dataset, the questionnaire and the description of
each variable are available free of charge from:
http://icono.fecyt.es/PITEC/Paginas/por_que.aspx.

This dataset has been used previously to study the influence of external and
internal factors on the degree of innovation [25], the complementarity effect of R&D on
firm productivity [26] and the relationship between R&D cooperation and environmental
innovations [27].

This data set is important as it contains information on the introduction of product

innovation and different types of process innovation. Furthermore, it includes
information about the importance of different sources of information for the innovation
process. The sources of information are divided into internal and external. The data set
also allows controlling for firm and industry characteristics. Among the variables
provided, we have data on the new products sold by the firm, the capital structure and
the sector to which the firm belongs.

Although the information is available from 2003, some firms were incorporated into the
data set in 2003 and others in 2004. In order to use a comparable set of firms, we use
information for 2005–2012. The initial sample includes around 12,000 firms per year
and 85,468 observations. The final sample was created after taking into account the
following considerations. First, like Amara and Landry [20], we only use innovative firms

53
belonging to the manufacturing sectors. Second, we exclude public firms and those that
had undergone start-ups, mergers and closures. Third, we exclude firms that did not
provide the necessary information to build our variables. As a result, our sample is
composed of 34,964 observations. Table 1 displays a first approximation to the data set,
showing a brief description of firms by size and sector over the period 2005–2012. We
have split the sample into two sub-samples: large firms with 200 or more employees
and small firms with fewer than 200 employees. Table 1 shows the composition of the
final sample: approximately 82% are small firms and 18% large firms.

Variable description and measurement

Dependent variables.

The two dependent variables capture whether the firm has generated product and
process innovations. The Spanish Technological Innovation Panel was designed
according to the guidelines of the Oslo Manual [28]. Therefore, the definitions of product
and process innovations are consistent with these guidelines.

Product innovation. The introduction of product innovation is measured through a

dummy variable that takes the value 1 when the firm introduced new or significantly
improved goods (the simple resale of new goods and changes of a solely aesthetic
nature are not included) in the previous two years, and 0 otherwise.

Process innovation. The introduction of process innovations is measured through a

dummy variable that takes the value 1 when the firm introduced a new or significantly
improved production process, distribution method, or supporting activity in the previous
two years, and 0 otherwise. In order to find out whether the effect of the sources of
information varies depending on the type of process innovation, we consider three
different types of process innovation, namely, innovation in manufacturing methods, in
logistics and in supporting activities. Accordingly, we define three dependent variables
that take the value 1 when the firm introduced new or significantly improved methods of
manufacturing or producing goods (Manufacturing methods innovation), logistics,
delivery or distribution methods for inputs or goods (Logistic innovation) or supporting
activities for processes, such as maintenance systems or operations for purchasing,
accounting or computing (Supporting activities innovation), and 0 otherwise.

Independent variables.

The database contains data about the importance of internal and external
sources of information. The PITEC considers 10 different sources: one internal and nine
external. We only selected external sources from market and scientific agents [29,30].

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Although we also have information on the use of other external sources, i.e.
conferences and professional associations, we do not use them in order not to incur
double counting.

Specifically, we consider the importance of each of the following: (1) within the
enterprise or enterprise group (Internal), (2) suppliers of equipment, materials,
components or software (Suppliers), (3) customers (Customers), (4) competitors or
other enterprises in the sector (Competitors), (5) consultants, commercial labs or private
R&D institutes (Consultants) and (6) universities or other higher education institutions
(Universities). Firms are asked to rate the importance of each source on a four-point
scale (none/not used, low, medium and high). We recodified these variables to obtain
measures ranging between 0 (none) and 1 (high importance).

Control variables.

The literature has suggested a number of firm and industry variables that could
affect the likelihood of innovation. First, larger firms are usually more likely to introduce
product and process innovations, given that they have more resources. We include the
sales of the firm (in thousand euros) (Size) as a proxy for this variable [31]. Second,
according to Cohen and Levintal [9] firms with higher levels of absorptive capacity are
more likely to innovate. To control for this effect, we include the firm’s innovation
intensity. Following Cassiman and Veugelers [10], this variable is calculated as the ratio
of the total innovation investments to sales (Innovation intensity). Third, firms exposed
to international markets are more likely to innovate [10]. Therefore, we expect a positive
relationship between a firm’s export propensity (Export propensity) and the introduction
of product and process innovations. This variable is measured through the ratio of
exports to sales in a given year [32]. The presence of foreign capital could also affect
the decision to innovate in a positive way. For this reason, we include a dummy variable
(Foreign capital) that takes the value 1 when the participation of foreign investors in the
firm’s capital is higher than 50%, and 0 otherwise [23].

When analyzing the factors affecting the decision to innovate, one important
element to take into account is technological opportunity [33]. Firms belonging to high
intensity sectors have greater access to knowledge and technological progress and,
therefore, are more likely to innovate [34]. To control for this effect, we include a dummy
variable (High intensity sector) that takes the value 1 when the firm belongs to a high
intensity sector, and 0 otherwise. We have used the OECD [35] classification of
manufacturing industries to form the high and the low intensity groups.

Finally, to control for time effects we include a set of time dummies that take a value of
1 for each of the years (2005–2012) considered.

Model and methodology

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 The focus of this paper is the estimation of an innovation equation. We have five
innovation outcomes. We know whether the firm has obtained product or process
innovations. We also know the type of process innovation obtained: manufacturing
methods, logistic and supporting activities.

The innovation equation follows the form:

(1)where Iit is the innovation outcome of interest, SIit-1 are the sources of information
used by the firm and Xit-1 the control variables capturing firm, industry and time effects.

Following Blundell, Griffith and Van Reenen [36], eq (1) can be derived as the outcome
of a firm’s optimal search rule for innovation. The model considers that the search
process generates innovation in future periods and that is why all independent variables
are lagged. Previous papers (see, for example, [24]) have also used a single lag to
capture the dynamic component of the model.

As we are interested in the effect of information sources on the innovation outcome, our
empirical model takes the following form:

(2)where CV stands for control variables, namely, High intensity, Export intensity,
Foreign capital, R&D intensity, Size and Temporal dummies, and εi,t and ϑi,t are the
error terms. We expect the sources of information and all the control variables to have a
positive impact on innovation, except for the Temporal dummies, whose effect is
indeterminate.

One important issue that has to be considered is that the continuous latent variable,
innovation outcome of firm i at time t, is not observed. We only observe whether firm i
has or has not generated a given type of innovation, Innovation outcome i,t. The latent
variable is related to the observed dependent variable such that [36]:

(3)Due to the dichotomous nature of our dependent variables, we use the probit model
as the base of all our estimations [37]. It is important to bear in mind that it is likely that
the error terms of the different innovation outcomes are correlated. The correlation may
be due to product innovations that involve the modification of the production process or
to process innovations that result in the introduction of product innovations. However, it
could also be the result of common factors affecting the probability of introducing these
innovations and that the model does not control for. If this correlation is not considered,
the estimated parameters could be biased and inconsistent [38]. To solve this problem,
in the analysis of product and process innovation, we estimate a bivariate probit model.
As we also distinguish between three types of process innovation (manufacturing
methods, logistic and supporting activities), a natural extension of the probit model, the

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multivariate probit model proposed by Cappellari and Jenkins [39], is also applied. In
both models, we cluster the errors by firm to control for the fact that observations are
correlated within firms. All the models are estimated using Stata 13.

Results and Discussion

The descriptive analysis and correlation matrix of the variables used are displayed
in Table 2. This table first provides important information about the frequency of product
and process innovations. Approximately 68% of the cases considered introduce product
and process innovations. These figures also show that, of all the types of process
innovation considered, manufacturing methods innovation is the most frequent (56%),
while innovation in logistics is the least frequent (16%). Second, the data reveals the
importance of the different sources of innovation used by the firms. Internal sources of
information are the most important (78%). Among external sources, suppliers and
customers present similar frequencies (with percentages of 52% and 54%,
respectively). Universities are the source of information least frequently used by firms in
the sample (24%). Third, the correlations between the explanatory variables are low,
although the highest correlations are found between the different sources of information
considered.

Fig 1 shows information on product and process innovations by industry. It depicts

the proportion of firms that have innovated in each of the industries considered (see
Table 1 for a description of these industries). To plot the position of each industry, we
calculated the proportion of product and process innovators in each industry and
subtracted the mean proportion of all the industries. Therefore, the lines going through 0
on the x-axis and the y-axis represent, respectively, the average of the proportion of
product and process innovators in manufacturing. Industries to the right of the x axis are
abovmean in terms of the percentage of product innovators, whereas industries to the
left of the x axis are below the mean. Similarly, industries at the top of the figure have a
larger proportion of process innovators than the overall average, and industries below
the red line are below average proportion of process innovators. Fig 1 not only reveals
industry differences in product and process innovations, but also whether the two types
of innovation tend to take place simultaneously.

Fig 1 shows that some industries with the highest levels of product innovation also
have high levels of product innovation. This is the case of the petroleum industry, the
pharmaceutical industry and the motor vehicles industry. However, there are also some
industries with high rates of process innovation and low rates of process innovation like
basic metals, rubber and plastic, wood and cork, paper and food. Finally, there are
certain industries with high rates of product innovation and low rates of process
innovations—machinery and equipment and computer, electronic and optical products.
These results are consistent with Reichstein and Salter [23] and generally suggest that,

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in industries with high technological opportunity, there is a greater probability of
obtaining both product and process innovation.

Table 3 shows the estimation of a bivariate and a multivariate probit model using
the 29,510 observations available. The number of observations available for the
analysis (34,964) is higher than the number of observations in the estimation (29,510).
We lose observations as a consequence of the lag of the independent variables.
Columns 1 and 2 present the determinants of product and process innovation. Columns
3 to 6 estimate the model with the same sample, but distinguishing between different
types of process innovation. The table also shows the result of estimating the
correlation between the different types of innovations (the rhos at the bottom). All the
models are globally significant, as revealed by the Wald tests. Similarly, the observation
of the variance inflation factors (VIFs) indicates that there are no multicollinearity
problems because they show values below the usual thresholds.

Regarding the influence of information sources on product innovation, column 1

reveals the positive and significant impact of four of the six sources considered, as
expected. Information from customers ( = 0.550 p<0.01) and from internal sources ( =
0.535; p<0.01) are the ones with the highest impact on the likelihood of obtaining
product innovation. Information from competitors ( = 0.243; p<0.01) and universities ( =
0.107; p<0.05) are the ones with the lowest impact on new products. Information from
suppliers ( = 0.022; p>0.1) and consultants ( = 0.022; p>0.1) does not significantly affect
product innovations.

Of the effects of the different sources (of information) on process innovation, the most
important is that obtained from suppliers ( = 0.502; p<0.01), followed by internal
information ( = 0.329; p<0.01) and by that coming from consultants ( = 0.190; p<0.01)
and universities ( = 0.115; p<0.01). Information from customers and competitors does
not have a significant influence ( = -0.002; p>0.10 and = -0.024; p>0.10 respectively).
The estimates also suggest that product and process innovation are sometimes
produced together, given the positive and significant correlation between the two
(RhoProduct, process = 0.148; p<0.01). This correlation, however, seems low and,
together with the results just described, suggests that there are differences in the
production of the two types of innovation (we further explore this issue in the next
section).

Columns 3 to 6 present the results of estimating a multivariate probit model that shows
the effect of information sources on product innovation and on the different types of
process innovation. They confirm the pattern just described for product innovations: the
change in the values of the estimated coefficients is negligible, with customers ( =
0.550; p<0.01) and the firm (internal) ( = 0.534; p<0.01) being the most important
sources. However, they also show some differences when the types of process

58
innovations are considered. Among the commonalities, it is important to highlight that
the most important source of information for process innovation are suppliers. A
comparison of the coefficient accompanying this variable in the three types of process
innovations shows that the differences are not significant (χ2 = 3.24; p>0.1). The impact
of universities on process innovation is also similar, given that the Wald test (χ2 = 4.37;
p>0.1) does not show differences between coefficients.

If we focus on the differences, although internal sources appear among the three
most important for the all the types of process innovations, the results show statistically
significant differences (χ2 = 22.46; p<0.001). This is also the case with consultants (χ2
= 6.52; p<0.05), whose importance is the highest in supporting activities innovation ( =
0.235; p<0.01) and the lowest in the case of manufacturing methods innovation ( =
0.108; p<0.01). Finally, some of the sources considered are non-significant for certain
types of process innovation: customers, in the case of manufacturing innovations ( =
0.056; p>0.1), and competitors, in the cases of manufacturing ( = 0.049; p>0.1) and
supporting activities innovation ( = 0.060; p>0.1). Overall, these results suggest that
information sources affect process innovations differently, depending on their type.

It is also important to note that manufacturing methods innovation is the type of

process innovation more likely to take place together with product innovation
(RhoProduct, manuf. = 0.186; p<0.01). The correlations between the different types of
process innovation also suggest that they are frequently tied. Process innovation in the
areas of supporting activities and logistics have a higher correlation (RhoLogistic,
support = 0.493; p<0.01), followed by supporting activities and manufacturing methods
innovation (RhoManuf., logistic = 0.317; p<0.01).

Regarding the effect of control variables, the results show that the sector to which
the firm belongs also has an effect on product and process innovation. Firms in high
technology sectors are more likely to generate product innovations ( = 0.272; p<0.01).
However, these firms are less likely to introduce process innovations ( = -0.244;
p<0.01). The analysis of the different types of process innovation shows that this
negative impact is driven by the negative and significant impact of this variable on
manufacturing methods innovation ( = -0.208; p<0.01). The results also reveal that firms
with high export propensity are more innovative in terms of product ( = 0.209; p<0.01)
and process innovation ( = 0.296; p<0.01). The only exception is logistic innovation,
where we cannot reject the null hypothesis ( = 0.051; p>0.1). Innovation intensity is
positively related to product innovation ( = 1.020; p<0.01) and non-significant for
process innovation. However, in the case of process innovations, we find that there is a
negative association with innovation in logistics ( = -0.519; p<0.01). Finally, the
explanation of product and process innovations is also different when size and foreign
capital are considered. Both variables have a positive effect on process innovation,
while it is non-significant for product innovations. These results are in line with previous

59
research (see, for example, [23]) and seem to suggest that large firms and firms with
foreign capital have access to the complementary resources needed to appropriate the
value from process innovations [40]. These findings are consistent with the literature on
process technology adoption and the role of the two variables in shaping the adoption
behavior of firms [41,42].

Finally, some papers argue that past innovation activities generate expertise about
how to perform innovative activities [43,44]. To test this idea, we built a measure of
innovation experience based on the number of years a firm has obtained product or
process innovation in the past. The results (not shown) reveal that previous experience
has a positive impact on all the types of innovation.

Further analyses

The results presented in the previous sections suggest that product and process
innovations could be related. However, the significant correlation between the different
innovation outcomes could be due to complementarities or to the existence of
unobserved heterogeneity. Furthermore, innovation activities may be persistent. To
further explore these ideas, we performed additional analysis. More precisely, we
estimated a dynamic probit specification that controls for the initial conditions problem
(see [45,46]) To deal with heterogeneity we use Wooldridge’s [47] approach, which
proposes that unobserved heterogeneity depends on the initial value of the dependent
variable (Initial conditions0) and the mean of the exogenous variables. Given the lack of
variation of the exogenous explanatory variables over time, we have considered a more
restricted approach where unobserved heterogeneity is assumed to be correlated only
with the initial value of the dependent variable [48]. To capture complementarities
between product and process innovation, the product (process) innovation equation
incorporates the lagged value of process (product) innovation.

Table 4 shows the results of a bivariate (multivariate) dynamic probit in which

heterogeneity is controlled for in the way described above. The results suggest that the
probability of obtaining a product (process) innovation in t depends on whether or not
the firm has generated a product (process) in the past because the coefficient for
product (process) innovation in t-1 is positive and significant. This result is similar to
those of Peters [45] and Mañez et al. [46]. Further, our estimates also show that
obtaining a process innovation in t-1 increases the probability of obtaining product
innovations in t. Similarly, achieving product innovations in t-1 also increases the
probability of obtaining innovations in logistics and in supporting activities. These results
suggest a complementarity relationship between product and process innovation. This
conclusion is further reinforced by the correlations between product and process
innovations. They maintain their positive and significant coefficients (see the Rho

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correlations at the bottom of Table 4). Note that, in this case, the models control for
unobserved heterogeneity.

Additionally, we explored whether there are different patterns in the use of

information sources depending on the level of technological intensity. We used the
OECD industry aggregation [35] in order to distinguish between high and low
technology sectors. This exercise showed important differences regarding the
importance of internal sources. Specifically, the results show that internal sources are
significant for obtaining process innovation in high technology sectors. However, in low
technology sectors, internal sources are important for obtaining product innovations.

Conclusions

In this paper, we have studied the importance of different sources of information

in product and process innovation. The results lead us to two conclusions. First, they
show that the six sources considered (internal, suppliers, customers, competitors,
consultants and universities) play a role in producing innovation. These results are in
line with previous papers that find that innovations are developed by using knowledge
from a diverse set of internal and external sources of information (see, for example [20])
and not just from that generated by R&D investments. Additionally, we have shown that
the influence of each source is different depending on the type of innovation. To obtain
product innovations, firms mainly rely on customers and on internal sources, although
information from competitors and universities is also important. To obtain process
innovations, internal sources and suppliers are the main contributors, followed by
consultants and universities. This means that only internal information and information
from universities are important in both types of innovation. These differences are also
found in the production of the three types of process innovations identified in our study.

Second, our findings reveal that there are complementarities between innovation
types. These complementarities are small between product and process innovations
and mainly involve the three types of process innovations. In the case of the latter, the
relationship between logistic and supporting activities innovation is stronger than in the
two combinations that include manufacturing methods innovation (manufacturing-
logistic and manufacturing-supporting). Importantly, we detect complementarities even
when controlling for unobserved heterogeneity.

Our results also have implications for our understanding of how innovation is
produced and studied. They suggest the need to separate product and process
innovations if they are to be studied effectively. This adds to recent evidence that shows
that the influence of the various factors involved in the propensity to engage in product
and process innovations is different. For example, Berchicci, Tucci and Zazzara [49]
find that industrial downturns have a different impact on the product and process

61
innovations of Italian manufacturing firms. We also find that the development of process
innovations has distinguishing features, depending on their type. For example, internal
sources are more important for manufacturing methods innovation than for supporting
activities innovation.

Our paper also has implications in terms of the selection of a firm’s innovation
model. The high speed of technological change has produced a shift towards open
models of innovation in some firms. These models assume that even large firms with
good resource endowments need information from external sources to produce
innovation [3]. Our results confirm the importance of external sources of information, but
they also highlight the importance of internal sources, especially for product innovations.

An open innovation model allows firms not only to obtain higher innovation
performance but also to capture value [3]. For example, the R&D productivity of Procter
and Gamble with the Connect and Develop strategy increased by nearly 60% [50].
Similarly, Roper et al. [51] found evidence of a direct link between the use of knowledge
from external sources and business growth and productivity. In our sample, firms stating
that both internal and external sources are important or very important obtain
(statistically significant) higher levels of labor productivity (sales per employee) than
rivals that do not.

In terms of policy prescriptions, these findings suggest that policies that encourage
the links between firms and market and scientific sources of information should be
promoted because they positively affect innovation performance. These policies should
take into account that a varied mix of sources of information is beneficial to innovation
performance. However, they should also consider the different nature and impact of the
sources of information on product and process innovation in order to obtain the desired
outcome. Keeping or providing incentives to investments in innovation (R&D, for
example) would also benefit product innovation.

This study has limitations. First, the database contains information on a large
number of firms and variables. However, it was not designed to evaluate the role of
information sources on innovation performance. More information on the type of
innovation outcome obtained would be interesting. For example, the distinction between
product innovations with different degrees of novelty seems an interesting extension.
Similarly, the data used in the empirical analysis consider the firm as the unit of
analysis. However, this does not allow for a precise evaluation of how specific pieces of
information are used. As firms are likely to organize their innovation efforts into projects,
information at this level could provide a more detailed assessment. A second limitation
is that our study refers to only one country, Spain. This means that the influence of
certain environmental variables (institutional factors, for example) could condition the
relationships identified.

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 These limitations open new opportunities for research. Researchers could
examine the impact of information sources on the degree of novelty of innovations.
They could also collect detailed information on how the fluxes of internal and external
information are used in the innovation process. Additionally, the study could be
performed using a sample of different countries to capture the consequences of
different institutional and economic contexts.

https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0152743

What are Knowledge Products?

We define knowledge products as information that will help members/stakeholders

in their decision making efforts. Examples might include: industry reports, statistics and
economic updates, benchmarking and best practices information, specialized
seminars/webinars.

Knowledge products position an association as a “knowledge broker,” they provide

member value and potentially generate non-dues revenue via sponsorship opportunities
and/or report sales. The creation of knowledge products gives the association the
opportunity to approach a sponsor with a unique opportunity.

For a sponsor, knowledge products provide a platform to demonstrate thought

leadership, engage with the industry/profession and create good will that will transfer
into business opportunities.

Sponsors can shape the research and ask their own set of proprietary questions.
Sponsors will receive multiple exposures across platforms e.g. print, online,
whitepapers, roundtable discussions, article reprints and conferences.

Types of Knowledge Products

1. Market surveys

Topics covered in a market survey typically relate to current conditions within a

given market or industry e.g. employment issues, profits, productivity, challenges and

63
opportunities. The findings of the research can be turned into content that can be used
on multiple platforms e.g. the association website, newsletter and white papers,
roundtable discussions, conference presentations.

2. Industry/profession outlook

Outlook surveys typically focus on expectations for the next year. Question areas
include:

1. Outlook for your business/profession in the upcoming year

2. Revenue expectations

3. Key challenges/constraints to growth

4. Biggest areas of opportunity

5. Growth strategies

As with market surveys, results can be made available in a variety of formats

including: the association website, newsletter and white papers, roundtable discussions,
conference presentations.

3. Benchmarking and best practices

Surveys of this type allow participants to compare their performance, results and
best practices with other members of the association. Here are some sample categories
of inquiry from a survey we completed for Interior Designers of Canada and Canadian
Interiors magazine.

1. Profile of organization

2. Number and type of projects completed

3. Staffing and employment of students

4. Gross billings and average profit/loss

5. Billing rates for specific positions

6. Salaries

7. Marketing efforts

8. RFP’s - Average cost to develop, percent resulting in business

Revenue can be generated by both sponsorship and report sales. Report buyers
can order a custom report that will allow them to make specific comparisons e.g. size of
64
operation and region. Overall survey results can be made available on the association
website, newsletter and white papers, roundtable discussions, conference
presentations.

4. Compensation and benefits

As well as collecting compensation and benefits information, surveys of this type

typically examine topics such as job responsibilities and satisfaction, professional
development, work/life balance. The findings can be promoted on the association
website, newsletter, conference presentations and via an online salary calculator.

5. Brand awareness and perceptions

Typically surveys of this type examine awareness and familiarity with key brands.
For example, brands may be rated on specific attributes e.g. value, quality, innovation,
reliability, likelihood of recommending. Reports are made available to individual or
multiple sponsors.

Conclusion

Research–based “knowledge products” deliver valuable, proprietary information

to association stakeholders. The examples mentioned in this blog can be customized to
the needs of specific industries and professions.

These knowledge products typically fall into two categories:

1) High value customized reports e.g. benchmarking/best practices research that can be
made available to association members for a fee.

2) Research-based studies that can generate advertising and sponsorship dollars and
be turned into content across multiple platforms e.g. print, online, article reprints,
roundtable discussions and conferences.

https://www.brammresearch.com/Blog/ArticleID/1055/Five-Examples-of-Knowledge-
Products-That-Provide-Member-Value

CHAPTER 5
What is knowledge in business?

65
 Business knowledge is an important strategic asset. It is a sum of skills,
experiences, capabilities and expert insight, which you collectively create and rely on in
your business. As a shared resource, knowledge shapes and affects all the activities in
and around your business.

Types of business knowledge

Knowledge can exist in many forms, but will usually fall under one of three main
categories:

 Tacit knowledge - personal know-how or skills rooted in experience or practice

(eg aesthetic sense or intuition). Tacit knowledge is difficult to write down,
visualise or transfer.
 Explicit knowledge - articulated knowledge recorded in documents, memos,
databases, etc. Explicit knowledge is easy to store, distribute and communicate.
 Embedded knowledge - skills and understanding locked in processes, products,
rules or organisational culture (eg informal routines, codes of conduct,
organisational ethics).

Knowledge can belong to individuals or groups within your business, or exist at the
organisational level. You can also share it with different organisations.

You can apply business knowledge in many organisational areas and

competencies, from financial management and organisational governance to market
analysis, strategic planning, and human resources. See more on strategic planning for
business growth.

Examples of business knowledge

Examples of knowledge that already exists in your business include:

-the skills, competencies and experiences of your workforce

-the designs and processes for your goods and services

-the industry or market data you've gained from research

-your files or documents (electronic or otherwise)

-your customer data or information on suppliers and stakeholders

-your plans for future activities, such as ideas for new products or services

-Importance of business knowledge

66
 Knowledge has great value since it is inherently unique to your organisation. It
shapes and drives your business activity, your ability to sell or do more, and stand apart
from your competitors.

Individual knowledge is easily lost, especially when key employees leave. Make sure
that your employees share knowledge and skills, and pass them on to their successors
wherever possible. For example, you can:

-hold brainstorming sessions

-organise training courses

-maintain up-to-date documentation about processes and procedures

-See more on sharing knowledge in business.

What is knowledge management in business?

Your understanding of what customers want, combined with your workers' know-how,
can be regarded as your knowledge base. Using this knowledge in the right way can
help you run your business more efficiently, decrease business risks and exploit
opportunities to the full. This is known as the knowledge advantage.

Effective knowledge management makes it possible to create, transfer and apply

knowledge at different levels in a coherent and productive way. Read about the
advantages and disadvantages of knowledge management.

https://www.nibusinessinfo.co.uk/content/what-knowledge-
business#:~:text=Importance%20of%20business%20knowledge&text=It
%20shapes%20and%20drives%20your,stand%20apart%20from%20your
%20competitors.&text=Make%20sure%20that%20your%20employees,hold
%20brainstorming%20sessions

Importance of Product Knowledge for a Salesmen

Let us know, first why one needs product knowledge. In brief, they are:

67
1. Sales, a Pleasant Task:

A salesman should have up-to-date information relating to the products he deals with
the customers. When one possesses thorough knowledge, he feels joy to explain to
others. Complete and useful knowledge of goods is fundamental requisite of a
salesman. These will increase the sales and render better service to buyers. Correct
ideas, not guess work, create self-confidence, which generate potential buyers through
satisfactory dealings. Knowledge makes the salesman’s job a happy one.

2. Technical Knowledge:

There are certain products, which needs complete information regarding their function.
Generally customers ask questions to clarify doubts or some may have thirst for
increasing their knowledge. In such cases, the salesman will be in trouble to face such
prospects who feel that a particular salesman adopts deceitful attitude. To overcome all
these, salesman should have complete information of the products, which he deals with.

3. Product Knowledge Coupled with Personality:

Product knowledge is a background on which salesman’s personality acts as a scooter-

plug. Customers are highly interested to see how a salesman explains the products and
how he offers a helping hand for a proper purchase. Sales personality, without the
knowledge of product is like a dry water reservoir.

4. Deep Self-confidence:

If a salesman lacks full knowledge of the products, it is a shame. The confidence grows
when he can explain the products’ capacities, performance, merits and limitations to the
perspectives. His perfect knowledge of the product will naturally increase the confidence
in himself All types of queries can be satisfactorily met by such a salesman. If a single
question is unanswered or wrongly answered, there arises a doubt in the mind of the
consumers.

5. Winning Customers from Competitors:

At present, the products are of various types and the market increases. Competition is
the order of the day. The success in selling solely depends upon the ability of the
salesman. The merits and demerits of the rival products must be understood by the
buyers, possibly with facts and figures. All these aid to win the customers from the field
of competitors.

6. Selling Points:

A proper understanding of a product has many advantages or selling points. Customers

are highly concerned with the selling points, such as, durability, attractiveness of

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product, its package, discount sales, selling terms, designs, price reduction,
convertibleness, easy operation etc. All these favour a sale and are related to buying
motives. A salesman must know all these to boost the sale at the counter.

https://www.yourarticlelibrary.com/marketing/product/importance-of-product-knowledge-
for-a-salesmen/50991

Business information comes in general surveys, data, articles, books, references,

search-engines, and internal records that a business can use to guide its planning,
operations, and the evaluation of its activities. Such information also comes from
friends, customers, associates, and vendors. Published sources may be daily
newspapers; financial, trade, and association magazines; databases, government
statistics, directories, technical manuals, and much else. In effect, since "information" is
defined more by context than by content, business information is whatever information
helps a business know its environment.

Writing in his book Business Information: How to Find It, How to Use It, Michael
R. Lavin commented that business information is of tremendous value in problem
solving and strategic planning: "Information can be used to evaluate the marketplace by
surveying changing tastes and needs, monitoring buyers' intentions and attitudes, and
assessing the characteristics of the market. Information is critical in keeping tabs on the
competition by watching new product developments, shifts in market share, individual
company performance, and overall industry trends. Intelligence helps managers
anticipate legal and political changes, and monitor economic conditions in the United
States and abroad. In short, intelligence can provide answers to two key business
questions: How am I doing? and Where am I headed?"

Business analysts cite two primary sources of business information: external

information, in which documentation is made available to the public from a third party;
and internal information, which consists of data created for the sole use of the company
that produces it, such as personnel files, trade secrets, and minutes of board meetings.

EXTERNAL BUSINESS INFORMATION

External information comes in a variety of forms--from printed material to broadcast

reports to online dissemination.

Print Information

The category of print covers not only a vast array of books and periodicals, but also
includes microfilm and microfiche, newsletters, and other subcategories. State and
federal government reports also fit into this category; indeed, Lavin described the U.S.

69
Government Printing Office as "the largest publisher in the free world; its products can
be purchased by mail, telephone or through GPO bookstores in major cities."

Perhaps the most accessible documents in the print category are books and
periodicals. Certainly business owners have a wide array of book titles to choose from,
many of which find their way onto the shelves of public, business, and university
libraries every year. In addition to books that provide general reference information on
human resources management, start-up financing, product development, establishing a
home-based business, and a plethora of other topics of interest to small business
owners, the publishing industry has seen a surge of books that tackle more
philosophical issues, such as balancing work and family life, establishing healthy
personal interactions with co-workers and employees, the nature of entrepreneurial
activity, and many others.

Many other small business owners, meanwhile, get a considerable amount of

their business information from print sources. As with books, entrepreneurs and
established business owners (as well as corporate executives, human resource
managers, and nearly every other category of person involved in business) can turn to a
variety of periodical sources, each with its own target niche. Some magazines and
newspapers, such as Business Week and Wall Street Journal, provide general interest
coverage, while others (Forbes, Fortune) provide more of an emphasis on subjects of
interest to investors and executives in large firms. Still others--most notably Inc.
Magazine and Inc.com, Small Business Start-Ups, and Nation's Business (published by
the U.S. Chamber of Commerce)--publish information specifically targeted at small
business owners. These magazines can provide entrepreneurs with helpful information
on every aspect of operations, from creating a good business plan to determining which
computer system is most appropriate for your enterprise.

Then there are the trade journals, an enormous subsection of print aimed at very
select audiences. These trade journals, which typically provide narrow coverage of
specific industries (journals targeted at owners of bakeries, amusement parks, real
estate businesses, grocery stores, and a variety of other businesses can all be found),
often contain valuable industry-specific information. Another subcategory of the
specialized print category is the material published through business research services
and associations such as Commerce Clearing House, the Bureau of National Affairs,
and Dun & Bradstreet.

Finally, both government agencies and educational institutions publish a wide

variety of pamphlets, brochures, and newsletters on a range of issues of interest to
small business owners and would-be entrepreneurs. While government brochures and

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reports have long been a favored source of business information--in some measure
because many of these documents are available free of charge--consultants indicate
that valuable studies and reports compiled by educational institutions are often
underutilized by large and small companies alike.

Television and Radio Media

This source of business information is perhaps the least helpful of the various
external sources available to small business owners. Programs devoted to general
investment strategies and the changing fortunes of large companies can be found, of
course, but the broad-based nature of broadcasting makes it difficult, if not impossible,
to launch programs aimed at narrow niche audiences (like dental instrument
manufacturers or accounting firms, for example).

Online Information

As we advance into the first decade of the 21st century, the ever-greater speed
and scope of the Internet is beginning to turn the Web into the most powerful source of
information for the small business. With appropriate subscription services like InfoTrac,
even access to print sources is easier to achieve than actually searching newspapers or
trade magazines. Search skills, of course, must be developed, but the small business
owner can practice this art in the evenings when libraries and bookstores are closed.

Many of these databases offer information pertinent to the activities of business

owners. As Ying Xu and Ken Ryan observed in Business Forum, the Internet includes
data on demographics and markets, economics and business, finance and banking,
international trade, foreign statistics, economic trends, investment information, and
government regulations and laws. This information is provided by Internet news groups,
online versions of newspapers and magazines, and trade associations. In addition,
"many colleges, universities, libraries, research groups, and public bodies make
information freely available to anyone with an Internet connection," stated Robert
Fabian in CMA--The Management Accounting Magazine. "Often, the motivation is to
make information available to people within the institution. But it can be less costly to
provide general access than to screen access." He also noted that "increasingly,
governments are publishing information on the Internet and insisting that organizations
they fund also publish on the Internet. It's a practical way to move towards open
government, and does make information, which is paid for by the taxpayers, far more
accessible to those taxpayers (and any others with Internet access). The range of
available information is impressive."

CD-ROM Information

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 CD-ROM (compact disc read-only memory) is an alternative to online services.
As the name implies, CD-ROM is not so much an interactive system; in usage it is close
to traditional print. In fact, CD-ROM versions of such print staples as the Oxford English
Dictionary are now commonly available. Business applications for CD-ROM include
corporate directories such as Dun & Bradstreet's Million Dollar Disk and demographic
statistics such as Slater Hall Information Products' Population Statistics. The primary
drawback associated with business CD-ROM products is the absence of current
information, although many publishers of CD-ROM products offer updates on an
annual--or even more frequent--basis.

The CD-ROM as an information delivery system is now facing increasing competition

from subscription-based online services. The growing speed of the Internet when
accessed by cable or DSL lines is making large down-loads from the Web less of a
frustration; at the same time very rapid updates to the databases consulted are
available to the user.

OTHER SOURCES OF BUSINESS INFORMATION

External sources of business information can be invaluable in helping a small

business owner or entrepreneur determine appropriate courses of action and plan for
the future. But researchers note that members of the business community often rely on
personal contact for a great deal of their information.

"Common experience and the result of numerous research studies show quite
clearly that managers, and indeed all seekers of information, frequently prefer personal
and informal contacts and sources to published documents and formal sources
generally," wrote David Kaye in Management Decision. "The reasons are well
understood. A knowledgeable friend or colleague will often provide, not only the facts
requested, but also advice, encouragement, and moral support. He or she may be able
to evaluate the information supplied, indicate the best choice where there are options,
relate the information to the enquirer's needs and situation, and support the enquirer's
action or decision. Many such personal contacts will of course be found within the
manager's own organization, which is for many people the prime source of facts,
knowledge, and expertise'¦. Any organization is a complex information processing
system in which actions and decisions are underpinned by an array of oral and written
instructions, reports, regulations, information, and advice. Accordingly, many managers
seldom look beyond the organization's boundaries in their search for information."

Business analysts note, however, that companies that do rely exclusively on internal
information sources run the risk of 1) remaining uninformed about important trends in
the larger industry--including new products/services and competitor moves--until it is too

72
late to respond effectively; and 2) receiving skewed information from employees whose
goals and opinions may not exactly coincide with the best interests of the business.

https://www.inc.com/encyclopedia/business-information-sources.html

Introductions are important. They establish credibility and prepare the audience for the
presentation ahead. And yet, people fail to give it enough thought. If you’re up for a
presentation, here’s how to do it effectively.

An Ideal Introduction Includes…

Researchers have found that you only have two minutes to make an impression
with the audience. Use this time well by giving your audience a summary of who you are
and your beginnings. This includes giving your name, title, job description, etc. Move on
to explain about the company. How and when was the company formed? Build a story
around the idea that inspired you to start the company and the problems that you’ve
faced so far. Is there something interesting that you’d like to share the logo or the
company name? Nothing puts off audiences more than an introduction that sounds like
a sales pitch. Rather than explaining what you sell, briefly describe how you help. Tell
them how your company makes life easier for everyone and how you solve problems.
Audiences are more likely to be receptive to such an approach, rather than a
presentation that’s all ‘I, me, myself.’

What You Should And Shouldn’t Do:

Try The Elevator Pitch:

An elevator pitch is a quick and persuasive summary that ideally doesn’t last
longer than 20 to 30 seconds, i.e., the time it takes for a brief elevator ride. The idea is
to introduce yourself or an idea succinctly and hopefully, memorable. It should be about
who you are, what you do, who’s your target audience, and what’s your USP. Once
you’ve got all of this information put together, remember it practice it at every given
opportunity.

Pay Attention To Body Language:

The art of delivering a perfect elevator pitch relies on monitoring the body
language. Do you cross your arms during the introduction? Are you fidgeting? Are you
using distracted hand gestures while talking? Practice the pitch before a mirror until you
sound confident and composed.

Stay Away From Jargons and Fancy Words:

Using big and fancy words just for the sake of it does not make you look smart;
sometimes, it can have the complete opposite effect. You may across as phony and

73
disconnected from the audience. Of course, you have to come across as intelligent and
emphasize what you know. But you also want the audience to understand what’s being
communicated. Using jargons or academic-sounding words is certainly not the right way
to go about impressing people.

Understand Your Audience:

The earlier discussion about using simple and easy to understand words works
well. But you don’t have to dumb it down to a level where you’re belittling people and
their intelligence. This is called audience analysis and includes adapting your content to
match the level of understanding, attitudes, and beliefs of the listeners. It helps you
build a common ground between you and the audience and helps to keep them
interested.

https://www.visualspiders.com/how-to-introduce-your-company-effectively-in-a-
presentation/

Chapter 6
Knowing the Prospect

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 For a salesman to get a favorable action from his sales presentation and
dramatization, he must builda good relationship with his prospect. Good salesman-
prospect relationship stems from the fact that the salesman knows how to handle his
prospect intelligently. Intelligent handling of prospects necessitates knowing them
properly and accurately. Hence, knowledge of the prospect is Another key factor that is
worth the salesman's considerations.

Importance of knowing the Prospect

The background information of the prospect is vital to the salesman's Success. If

the salesman knows the age, profession, education, hobbies, and other personal
idiosyncrasies of his prospect, he would know how to deal and mingle with him. As the
salesman starts the conversation tackling about these background information, he is
able to get the ungdivided attention of his prospect. The prospect becomes willing to
share his interest for he feels that the salesman is interested in him.

Why do Prospects Buy?

People buy because they have a problem, a problem that is solved by your
product or service. There is a gap between where they are versus where they want to
be. We call this pain. Pain is the reason people buy. Interest, or curiosity, often
motivates a prospect to explore what you have to offer but does not in itself motivate
buying behavior.

How do Prospects Buy

People who would want to shop around first before deciding to buy are what we
call the competitive type of prospects. Of course, they like to get the best buy in terms of
quality, price, brand style, design and other product features. As such, the competitive
type of prospects may not immediately say, "YES" to the salesman. He will not buy until
he has done product comparisons. Also of prime importance for the salesman to know
are the buying patterns and practices of the customers. This is refer to how prospects
buy. Determining the right timing for the sales interview is dependent on the knowledge
concerning the prospect's patterns and practices in buying.

Chapter 7
Prospecting, Pre-approach and Approach
75
Prospecting is the step where salespeople determine leads or prospects. The pre-
approach is used for preparing for the presentation through customer research and goal
planning for the presentation. The approach is when the salesperson initially meets with
the customer and determines a customer’s wants and needs

What is Prospecting and How Important is This?

Prospecting is an important part of the sales process, as it helps develop the

pipeline of potential customers available. Sales person shaking hands Prospecting,
done right, not only creates a pipeline of potential customers, it helps to position you as
a trusted advisor. It also helps you focus on the right accounts.

Qualifying Prospects

To be able to get the most out of prospecting, the salesman must be

knowledgeable about quality prospect. To qualify prospects means to identity their
potential to be the salesman once given the chance to descent the prospect from the
suspect. It is become clients of the product and the company. This is where really a
must to do this to avoid wasted efforts and direct the strategies of the salesman to the
more productive sales interviews.

How does the salesman qualify his prospects? A set of criteria is very important to
do this. The salesman has to provide a "yes" answer to each of the following questions.

1. Does my prospect have a need for my product or services

2. Does my prospect have the ability to pay for my product or service?

3. Is my prospect willing to buy the brand that carry?

4. Does my prospect have the capacity and authority to decide favorably for my product
or service?

It is necessary that all four questions be answered positively for the salesman to obtain
an accurate decision to see his prospect.

The need - It is of prime importance for the prospect to feel a need for the product or
service before the salesman can convince him to place an order. If there is already a felt
need, the ordering of the product becomes a spontaneous action by the prospect. Thus,
the salesman should help the prospect realize a need for the product or service;
although at first, the possibility is nil.

The ability to pay - A very important factor to consider is the ability of the prospect to
pay. Does the prospect have the money to spend? Are the so of income of the prospect
adequate for an assurance that he can pay for what he will order? Company policies

76
and strategies can help the salesman close the sale notwithstanding any financial
difficulty the prospects may be experiencing.

•The willingness to buy-The prospect may have other purchase priorities. The
prospect may prefer other brands. The prospect may want to postpone the purchase.
The prospect's money may be reserved for the children s tuition fees, electric or
telephone bills, or another financial commitment. Appealing to the prospect's buying
motives for your product may help you win over these other priorities.

•The authority to decide-It is frustrating for a salesman when his prospect cannot
decide to buy after he has completed the sales presentation and dramatization. In
household sales, do not make sales presentation to the maid nor to the children. In
commercial sales, the salesman ought to look for the business executive or the
purchasing officer for a more viable sales interview.

Be particularly alert to solve problems as (1) the prospect has no money to pay but
needs the product and is willing to buy or (2) the prospect does not need the product but
willing to spend his money.

Common Methods of Prospecting

How does the salesman prepare his list of prospect? Where does he get names he will
include in his prospect's list? How resourceful can the salesman be with his
prospecting? There are number of prospecting methods that this portion is suggesting
the salesman to tap and utilize. A discussion of each of these prospecting methods is
given in the following paragraphs.

(1) Friends and Acquaintances - The easiest, the simplest and widely used by
beginners is the friends and acquaintances method. As soon as a new recruit has
completed his sales orientation and seminar, he has to begin listing names of
prospective clients he will call on for sales interviews. Normally, the new recruit will think
of his family, his relatives, his friends, his former acquaintances like teachers,
classmates, co-choir members, co-players in a basketball league, and others. These
people could hardly say "no", thus, the salesman can surely have his ice breaker which
will provide him with his needed self-confidence and trust.

(2) Referrals - After calling on a friend or acquaintance, the salesman must follow the
cardinal rule of asking for two or more names that can be his next prospects. Of course,
the people whom the salesman knows also have friends and acquaintances that can be
referred to him. When used properly as a method of prospecting, referrals can provide
the salesman a continuous network of prospects that can be scheduled for sales
interviews.

77
(3) Endless-Chain Method- With the salesman's network of prospects becoming bigger,
it will never be a problem for him to be running out of prospect. Every now and then, he
has somebody to offer his product or service. Hence, the salesman is using endless-
chain method of prospecting.

(4) Center-of-Influence Method- When a salesman is referred to a certain prospect, he

has to mention this to that prospect. By doing so, this prospect is relieved of his tension
of meeting a stranger. Besides, this prospect will develop trust and confidence in the
salesman. Anyway, the prospect feels familiar to the salesman for he knows the person
known to the salesman. This is known as the center-of-influence method.

(5) Telephone Prospecting -With the widespread use of the telephone in business and
industry, sales appointments are often consummated through the telephone. Many
marketing films give instructions to their sales agents to try using the directories for
some possible household or commercial prospects.

(6) Group or Party Prospecting- Every time a sales group under takes or sponsors a
party, more prospects, at one given time, are interviewed and finally closed for orders.
This is similar to what other marketing outfits engaged in the sale of insurance,
education, and pension plans do as their sales advisors go out for institutional sales.
They arrange with the administration of private offices, banks and even government
agencies so they can talk with the employees as a group.

(7) Company Leads -To the new sales recruits, the sales supervision may provide them
with leads for them to enter their selling career. The sales supervisors or even the
company itself maintains records and files of prospective clients which they allows for
use by their new recruits. Thus, they can begin calling on prospects to discuss their
sales proposals.

(8) Mini Fairs and Exhibits-This is an affair sponsored by the company for purposes of
launching a new product or for introducing improvement on an existing product.
Logbooks are located strategically within their covered area so that guests may sign
their names together with their addresses and telephone numbers. Salesmen refer to
these logbooks later.

(9) Sales Blitz-This is an occasion when a group of salesmen together with their sales
supervisors will go on a tour to one or more sales territories to offer, on a house-to-
house basis, their product. What the sales supervisor does is to deploy his sales
representatives to the various areas of that given community which they will cover.
Though house-to-house selling does not always yield positive result, there are also
instances when the activity becomes fruitful.

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(10) Cold Canvass Method-This is practically the most difficult method of prospecting to
use. It is actually house-to-house selling which allows the salesman to experience the
problems of not being entertained, no order taken, argumentative or hot-headed
prospects, and other similar consequences. Nevertheless, these are challenges to the
salesman.

The Need for Pre-Approach

Having identified and qualified his prospects, the salesman is not yet ready to meet his
client. With the help of the background information he has gathered, he has to study this
at some length before actually meeting his prospective client. The salesman has to
undertake other preparations prior to approach which are treated determinants of a
successful sales interview.

Preparations of the Salesman Prior to Approach

(1) Request for an appointment - A sign of professionalism is revealed when the

salesman requests for an appointment from his prospect, In order not to disrupt the
busy day's work of the prospect, the client must have other important commitments,
hence, it is but fitting to ask from the prospect his convenience day, time and place. The
salesman can use the telephone for this purpose.

(2) Have ready and check on the contents of your sales kit- A sales kit must contain
brochures, price lists, policy contracts, ball pen, calculator, scratch pad and documents
about the company, some product samples and accessories needed for the product
demonstration. Everything must be checked to be inside the sales kit so that the entire
sales presentation will go on as smoothly as planned.

3) Decide on the answer to possible questions and objections of the prospect - The
experience of the salesman can help him anticipate the possible questions and
objections of prospects. His knowledge of the product and the company will help him
find the answers to these possible questions and objections. On the other hand, a
beginner must seek the help of his sales supervisor on this matter. There is nothing
better than to be well prepared for this sales occasion.

(4) Be sure to make yourself presentable - Check on the clothes you will wear, your
shoes, your necktie, your handkerchief and other accessories. In other words, check on
your total self-presentation. Your sales personality is your primary concern in this
instance.

(5) Determine the right approach and presentation strategy to use-With your knowledge
of the prospect, product, and company, the approach you will use including your

79
presentation strategy is not at all a problem. Make sure the sales interview shall be
tailor fit to the particular prospect that you are calling upon.

The Approach and the Methods to Use

What is approach?

The approach is the time when the salesman and his prospect other. This
is the time when the actual sales interview begins after all the prospecting and
preparations done by the salesman. The salesman goes to the house, office or
business address of his prospect.

Is approach important?

The salesman must be able to use the right approach to a particular prospect.
Otherwise, the undivided attention of the prospect may not be obtained. Hence, the
readiness to listen on the part of the prospect, will be far from reality. Consequently,
understanding the merits of the product will be a difficult thing to achieve including the
decision of the prospect to subscribe to the product.

What does the salesman do during approach?

Before finally introducing the product offered for sale, the salesman must concentrate
on certain preliminaries to develop rapport with the prospect.

What are the preliminaries?

(1) Greet the prospect. There is nothing better than to wish the prospect a happy day.
Call the prospect by his name and attach his position in your greeting. The sweetest
sound to anyone's cars is the sound his own name.

(2)Introduce yourself. For proper identification, the prospect is interested to know who
you are and from where you are. Be proud of your company, the manufacturer of the
product you sell.

(3) Offer a warm handshake; a professional salesman is one who means business with
his prospect through handshake.

(4) Discuss first few related matters-This is what we call amenities. Amenities are things
that the prospect is interested to talk about which may give the salesman a chance to
introduce the product. A sales advisor of an educational plan can talk about first the
high cost of education nowadays and also the importance of the future of the children.

80
(5) Introduce the product using any combination of the following approach methods.
Remember here that you are only introducing the product: you are not yet presenting its
features and benefits.

What Approach Methods Can Salesman Use?

These approach methods are:

• Compliment method

• Question method

• Benefit method

• Curiosity method

• Shock method

Chapter 8
Sales Presentation and Dramatization

81
(Effective Strategies and Formulas Used)

The focus of this chapter is to provide the future salesman with effective
strategies he can use to culminate a sales effort favorably both to him and his prospect.

Effective Formulas Used

• A-I-D-A-S

• A-stands for attention

• I-stands for interest

• D-stands for desire

• A-stands for action

• S-stands for satisfaction

Catching Attention

Being able to catch attention of your prospect is something because he lends you
his trust and confidence. To be trusted by your prospect is a prime necessity as you will
never get into your mission without it. Try to cultivate this as early as possible during the
presentation.

Creating Interest

As soon as the attention of the prospect is obtained, the salesman has to hold on.
Attention sustained becomes interest and unknowingly, the prospect becomes
engrossed listening to him. This is what the salesman needs to grasp the chance of
delivering his presentation and dramatization.

Juan Antonio Carrion, in his book Salesmanship Imperatives, suggested to excite

the mental feeling of the prospect through self-interest, emotion, your message, and
expression.

Self-interest refers to the personal experiences of the salesman in using the

product. Many marketing firms would suggest that salesmen be first to subscribe, buy,
and use the product they will sell. Telling the prospect of the satisfaction he is deriving
from the use of the product is one way of persuading him to also like and try the
product. Since the so-called follow-the-crowd mentality among consumers' is still
prevalent, it is likely that your prospect's imagination shall be tickled with what you
explain.

82
 As you narrate your personal satisfying experiences using the product, appealing
to the emotion of your prospect becomes a necessary tool. It will be much better, if you
can dramatize your storytelling. In this way, you are exciting the mental feelings of your
prospect. Maybe, he will envy you for your reason to like the product ahead of him.
Actions speak louder than voice. Therefore, you need a lot of facial expression, bodily
movement, even your tone of voice and choice of words are of equal importance.

Your message must be clear and meaningful. Be sure your prospect realizes that
using the product will also be beneficial to him. The prospect stop arguing as he learns
the disadvantages of not having the product. Your message truly becomes clear and
meaningful as you emotionally and expressively relate to your prospects your personal
testimonies about the product. You really relate to your to be an actor or access in front
of your prospect.

Developing Desire

As the prospect shows interest in your sales propositions, you are to turn interest
into a desire to own the product. Desire is an intense feeling, a longing to own and use.
More often than not, prospects are emotional rather than rational buyer. Appealing to
their emotions or feelings may prove more fruitful, hence, desire is developed.

To do this, the salesman has to appeal to the various buying motives of his
prospect. If a prospect learns that she'll be more beautiful with the product, or that his
macho image can be more enhanced, or that people will look up to him with respect, or
that it is easy on the budget, or that he will become healthier, the salesman is
undoubtedly appealing to the buying motives of his prospect.

The prospect, then, becomes desirous of experiencing these things. The fruit is ripe
that a salesman can pick it anytime he feels the buyer is ready to order. With these, the
prospect is now persuaded to make an order of the product or service the salesman is
offering.

Producing Conviction

Presenting evidence may also require presenting concrete proofsor the utility and
durability of the product. A product demonstration may be necessary to do this. Hence,
the buyer sees for himself how effective and powerful the product is.

Sell not the product, but sell what the product can do. This his is another way by
which the salesman can present evidence, thus, convincing the prospect of the value of
his product. The prospect is less interested in the technical aspect of the product; he is
rather more convinced of the product performance.

Securing Action

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 After using evidence and appealing to motives, the prospect is sure to be convinced
and persuaded about the usefulness of the product. Desire is developed and conviction
is produced. At this point, action can now be secured from the prospect. Securing action
refers to obtaining the favorable response of the prospect. The much awaited
opportunity to close the sale is now at hand. It takes guts and creativity on the part of
the salesman to do this.

Providing Satisfaction

Satisfaction may mean being able to fulfill the needs of your prospect. You also
visit a prospect to provide a solution to his problem. Should you be able to this, you are
giving your prospect satisfaction. A follow-up discussion on this subject will be given in
the latter chapter.

In another context, providing satisfaction may refer to providing answers to the

questions and objections of the prospect. Clearing out the doubts in the mind of the
prospect is a way of satisfying his queries. Providing more facts and information can
help enhance the purchase decision of the prospect and can, likewise, provide
satisfaction.

S-N-P-S-P-T

This sales formula constitutes factors which may enhance the prospects decision
to buy. These factors when use a effectively by the salesman may result to favorable
response and action from the prospect.

These factors are:

S - Salesman factor

N - Need factor

P - Product factor

S - Service factor

P - Price factor

T - Time factor

The salesman must be very, very careful along these lines so he may get the most
out of this sales formula. Salesman Factor -If the personality of the salesman is
agreeable, the trust and confidence of the prospect may be solicited. Together with this
is a favorable impression of the professionalism of the salesman. With trust and

84
confidence, the prospect listens to the sales interview which permits understanding and
finally purchase decision. Hence, the prospect may buy the product because of the
salesman factor.

Need Factor - The salesman should not yet discuss the features of his product. What he
needs to clarify is the general importance of the "thing" he wants to explain. The
Forever Living Products distributor should discuss first the general importance of good
health. He has to create in the mind of the prospect the problem about health. He has to
offer solutions to the health problem such as daily exercise, enough rest and sleep,
proper diet. plenty of juice and water, medical and dental consultations and taking good
supplements, like Forever.

Product Factor - Now that the salesman has introduced his pollen bee as enumerating
other alternatives, the prospect is now ready to listen more about the product. The
salesman has created interest in the mind of the buyer. The following solutions may be
offered by a safety consultant so that his prospect may prevent fire.

1. Keep matches out of reach of small children,

2. Check for leaks in your gas tank, hose and regulator;

3. Have a regular maintenance check of electrical installations;

4. Unplug home electrical appliances when not in use,

5. Install a handy fire extinguisher at home.

Service factor -means the assistance that the company may provide with the purchase
of the product. Service may include free delivery, free installation, free demonstration,
provision for returns and adjustments, free service warranty and other similar services.
The salesman's company may be specialized in the rendition of a unique kind of service
that other companies do not provide. Hence, the service factor may enhance purchase
decisions.

Price Factor - One of the last items to be discussed by the salesman is the price of the
product. It becomes premature to be citing the cost of the product early during the
presentation. The salesman has to begin explaining the effectiveness and benefits of
the product to, at least, cover up its high cost. Prospects may become unmindful of the
price of the product after learning the benefits of the product.

Time Factor - Calling on your prospect at the right time will do more good than harm. As
such, requesting for an appointment is advisable. The following is a list of suggestions
as to the right time when the salesman must request for the appointment.

1. Early morning between 9 and 1 o'clock in the case of industrial sales

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2. Early evening between 6 and 8 o'clock in the case of household sales

3. Weekends when the prospects are at home

4. On or before payday; or

5. When there is a family occasion to celebrate.

D-D-P

The third and the last formula that the salesman can use during his sales
presentation and dramatization is the so-called D-D-P. It is not really separated from the
A-I-D-A-S and S-N-P-S-P-T formulas. The salesman is advised to use a combination of
these formulas to be more enecive and convincing. Hence star salesman is made.

D- stands for discussion D-stands for demonstration P-stands for participatio

Chapter 9
Handling Objectives

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 Customers' objections are but natural occurrences during the sales
presentation. Certain doubts against the product may be in the mind of the prospect.
The prospect may really be interested in the product that he cannot help but ask for
more information. It may not be possible for the prospect to act now because of the
budgetary constraint. Or, the prospect may just be presenting alibis just to get rid of the
salesman.

Types of Customer Objections

Firstly, objections may be valid or simply are excuses. A valid customer's

deserves the salesman's attention and concentration. An excuse, on the other hand, is
simply to get rid of the sales interview. Whether the objection is valid or just an excuse,
the salesman has to be always prepared for whatever consequences that may arise.

If a valid objection is raised by the prospect, the salesman has to stop explaining
and immediately answer such question or objection. Should the reaction of the
salesman be postponed, the listening activity of the prospect will no longer be pursued.
The prospect's attention is now divided between listening and brooding over his
question which is unanswered.

A valid objection is asked by the prospect because of any of the following reasons

1. The prospect needs an assurance that he is buying something useful.

2. The prospect likes to clear out the doubts in his mind against the product and the
company.

3. The prospect needs assistance from the salesman in terms of use and application of
the product; and

4. The prospect is clarifying deliveries, warranties, and terms of payment, product

adjustments, and similar services.

lf the salesman can satisfactorily answer these questions and objections, the sale
could be closed immediately and further explanations are no longer necessary.
However, if more explanations may be required by the prospect, the salesman should
do his part with all humility.

An excuse is simply an alibi to get rid of the salesman and even the entire sales
interview. Some prospects may just be testing the patience and ability of the salesman.
Still others may just be making mockery of the sales situation.

Normally, as an excuse, the prospect asks irrelevant questions. The prospect may
want to deviate from the topic as she is not ready to buy the product. Some of the
common reactions of prospects who are asking for an excuse are enumerated below.

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1. The prospect has just bought that kind of product.

2 .A friend from abroad gave her a similar product as souvenir.

3. The prospect has no money;: payday is still far away;

4. A friend or a relative is also a sales representative of the same company.

5. The prospect will still have to consult with her husband regarding the product.

6. Attending to other matters at the time of the appointment is more

important to the prospect.

7. The price is quite expensive, the prospect cannot afford to pay.

8. The prospect is loyal to his brand.

9. Her children do not like the product; and

10. The prospect has other priorities to attend to.

The salesman can ignore the prospect's excuses to buy. He just have to continue
explaining his sales claims. Nonetheless, the salesman must watch out for the same
question that may crop out for the second or third time. If this happens, the prospect is
Sincere in asking the question. Hence, the salesman must immediately provide the
answer to satisfy his prospect's curiosity.

Other Types of Customer Objections

Generally, customer's objections may be valid or just an excuse. However,

specific types of objections may be met by the salesman as he discusses and
demonstrates his product. The salesman must be clever enough to discern the type of
objection being raised by the prospect and must know how to answer each objection
properly; the following is the discussion of the other types of customer objections.

(1) Objection against the salesman - Here, the salesman may look disagreeable to the
prospects. The salesman may not be businesslike in his approach, thus, antagonizing
the prospect. The prospect may also distrust the salesman because he looks like a
police character. The salesman should try his best to cultivate and develop a pleasing
sales personality to win the trust and confidence of his prospect. Otherwise, the
prospect will simply create alibis just to get rid of the salesman.

(2) Objection against need -The prospect may not need the product at the time of visit of
the salesman. The prospect may be sincere with his objection; however, to some it may

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simply be an excuse. Hence, the salesman may have committed the error of seeing this
prospect first. He should check again to qualify his prospects.

3) Objection against the product - The prospect may be convinced of the product's
potentials, but he has been using a different brand. The prospect may be afraid to use a
new brand, or he is loyal to the brand he is presently using. Furthermore, the prospect
may have had a sad experience in using a similar product.

Whatever it may be, the objection against the product is there.The salesman must
first help the prospect feel the need for the product. Then, educating the prospect as to
how the product differs from other brands is advisable. He has to emphasize on the
unique selling proposition of his product so the prospect will prefer it over the existing
brands.

(3) Objection against service This refers to the sales assistance provided by the
company like deliveries, installations, demonstration, warranties, and similar services.
The prospect may be looking for a better service from another company. Or, the
prospect may have had a previous sad experience with others.

It may be an excellent opportunity for the salesman to explain the kind of services
offered by his company. By doing so, the prospect is able to differentiate those services
with the services of other companies. One salesman may offer more conveniences and
economy of purchase. Hence, he is able to fight out the objection.

(4) Objection against price The number one objection among prospects and customers
is on the savings and economy in their every purchase. They initially resist buying the
product upon learning that it is expensive. Even if the price is already affordable,
consumers still ask for some price reduction. Thus, any price-off promotion offered is
surely attractive to the prospect.The salesman, on the other hand, must learn how to be
resourceful and creative in answering price objections. This was discussed in the first
section of the book.

(2) Objection against time - So that the salesman may not meet any objection against
time, it will be best for him to approach his prospect of the right time. The concept of the
right time approach was discussed earlier in this book. A limited offer may help counter
an objection against time. Similarly, throwing back the question to the prospect that he
will be missing a lot, should he not act now, is also an important consideration.

Methods of Handling

There are many methods of handling customer objections. In fact they vary from
one company to another and likewise among industries. The nature of the product, the
type of prospect considered, the selling schemes of important manufacturer and even

89
the service provided by the company are important determinants in considering the
method of handling objection to use.

For the purpose of this textbook, we will be limited to discussing only five of the
most commonly used methods. They are as follow:

1. Pass over or ignore the objection

2. Yes-but technique

3. Boomerang method

4. Compensation method

5. Direct-question technique

Each of these five methods of handling objections is discussed in the following section.

(1) Passover or ignore the objection as pointed out earlier, the salesman does not need
to answer immediately an excuse or an alibi of the prospect. This kind of objection may
be, passed over or ignored. However, the salesman must still be on guard as the same
question may be raised again.

(2) Yes-but technique - This method of handling objection is similar what we call "agree
in part, but later prove your point." So as not to hurt the fecling of the prospect, the
salesman must accept his objection as true and valid. On the other hand, he has also to
explain how his product and/or company differ from others. By this, the prospect
realizes the advantage of your proposal.

3) Boomerang method - Throwing back the question/objection to the prospect so he

may realize the importance of their product is another acceptable and effective method
of handling customer objections. That is what we call boomerang method. When the
salesman does this. he also needs to be diplomatic considering his tone of voice.

(4) Compensation method -The type of objection that is usually. The use of the
compensation method allows the salesman to accept that his product is expensive.
Nevertheless, there are certain product features and benefits that can help the
salesman explain that the product actually not expensive.

(2) Direct-question technique - When faced by a difficult question regarding non-

effectiveness of the product, the salesman may be caught unprepared. Therefore, the
salesman has to train himself to develop the habit of asking questions.

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 Chapter 10
Closing the Sales and Sales Follow-through
Meaning of Closing the Sale

What is closing the sale? The culminating activity in every sales interview is to be
able to obtain the "yes" answer of the prospect. If the salesman can have the prospect
sign the policy contract and issue a check for the down payment, the sale is
consummated the sale is closed.

91
The Right Time to Close

It does not necessarily mean that the salesman has to wait till the end of the
presentation before he attempts to close the sale. As mentioned earlier, a trial be
attempted alter answering a question or an objection. The prospect may be satisfied by
the answer provided by the salesman, thus, this might be considered as a closing
Signal. If more information may be required by the prospect, the salesman might as well
discuss more.

The salesman can likewise watch out for other closing clues and signals. From
time to time, he has to observe the facial reactions and body movements of the
prospect. If the prospect sits more relaxed, he may nod obviously to show his
agreement, he may smile revealing his tension is gone, or that the prospect may be
asking lead questions. All these are important closing clues and signals.

Lead questions by the prospect may be in terms of delivery dates, terms of

payment, discounts that may be obtained, availability of parts and accessories and
other company services. When these are asked, the salesman will possibly make it with
such accurate and convincing answers to these questions.

There are times when the prospect takes the initiative of placing his order
upon hearing this, the salesman must stop explaining; the prospect s mind may change.
As the saying goes, "Stop singing as soon as the baby falls asleep." It is difficult to have
the baby sleep again when he is awakened by the singing of the babysitter. The
salesman is fortunate to be facing this situation since the other prospects, thus, earning
more commissions.

Why Salesmen are Afraid to Close the Sale

A number of reasons are enumerated herein to explain why salesmen are

afraid to close the sale. They are the following:

1. Salesmen do not like to hear a negative response or a "no answer".

2. Salesmen are ashamed to ask for the order

3. The ahente lang guilt feeling of the salesman is what lingers in his mind.

4. Salesmen feel they are intruders begging for a living.

92
5. Salesmen forget to close after getting confused by an objection thus, losing control of
the sale; and

6. Salesmen expect the sale to automatically be consummated.

Methods of Closing the Sale

Since it is imperative for the salesman to close the sale, he has to learn how to do
it. There are a number of closing techniques which the salesman can learn easily. Some
of the most commonly used are discussed here.

(1) Closing on an objection- This is sometimes called the trap close and is similar to the
boomerang method of handling objections. If the an salesman can convincingly handle
objection, closing the sale becomes easy.

(2) Physical Action Close - The salesman simply puts out the purchase contract to be
signed by the prospect, or takes out his pen and order of his prospect.

(3) Minor-Point-Alternative Close- Help the prospect make minor decision so the
salesman can narrow down the choice for him. If the salesman can assist the prospect
choose between things from another, the sale can easily be closed.

(4) Testimonial Close - Testimonials are statements of happy users of the product;
these are persuasive proofs of satisfaction derived from the use of the product. Because
of the follow-the-crowd mentality among Filipino consumers, the testimonial close is a
very effective method of closing the sale.

(5) Waiting List Close (Standing Room Only) - If the salesman contactfuly explain that
the company stocks are limited, the prospect may opt to act now. Similarly, notifying the
prospect of a possible price increase may institute fear that he tends to take advantage
of the present lower price.

(6) Promotions Close - The use of inducements naturally urges a prospect to buy
immediately. These inducements may be price off, product premiums and give-away,
raffle draws, trips abroad and similar promotional items.

(7) U.S.P Close -U.S.P means unique selling proposition which differentiate the
salesman's product from other competing products. If the U.S.P can be reserved by the
salesman to culminate the sales efforts, it can be effective to obtain the favorable
response of the prospect.

The Need for a Sales Follow-Through

The closing of sale is accomplished. The sale either was made or lost.What
does a salesman do next? Whatever the outcome of your presentation, you have to

93
follow-through. When we make a follow-through, we are adding to the effectiveness of
something by doing something more.

lf the prospect has bought the product, the salesman wants to make sure he is
satisfied with it. The salesman likes to handle complaints and adjustments as he does
the follow-through. Through this, the salesman is given the chance to further build
goodwill for his product and his company. Any misuse of the product by the prospect
can be corrected by the salesman, if he makes a follow-through.

One more thing gratifying in making a follow-through is that the prospect may
order more, may be interested in another product line, or may refer you to another
prospect. You are again using the endless-chain method of prospecting. You are
actually back to step number I in the sales process which is prospecting as you try to
complete your first sales interview Via a sales follow-through.

The close of a sale does not mean the end of it, it is just the beginning. The
salesman must guarantee a satisfied and permanent customer of the company he
represents. He then has to Keep taking care of the customer's needs so that the
customer will know that his

39 Tips for Better Salesmanship

Here is a list of 39 basic ingredients for better salesmanship that was published
in a Guarantee Mutual Life's News. It is as good as the list as we have ever seen. We
suggest you to keep it and refer to it next time you fail to close a good prospect. A
constant review of your sales technique will go a long way toward correcting any weak
points you may have.

1. Plan the sales call. Don't just drop in. Have a reason for being there.

2. Know the product. The salesman who knows his product never has to misinterpret
the thing he has to sell.

3. Have faith in the performance of the product. The more you know the product, the
more conviction you have in selling.

4. Make a schedule of your calls in the conveniences ol your prospects and customers.
But first know what their habits are. Don't delay an early call just because you think it is
inconvenient for a customer. Calling when the customer is most receptive may not give
you banker's hours, but will give you an enviable sales record.

5. Sell the benefit of the product -not the gimmick. Know what the product will do for the
prospect tell him convincingly what it will do for him, and he will become a customer.

94
6. If you are selling a tangible product, demonstrate it. There is no better argument in
convincing a prospect than to let him see the product operation.

7. Don't overlook the chance to use case histories. It is easier to build customers out of
the prospects if you can show them how the product has benefited other customers.

8. Know who influences the sale. It may be of several factors. Don't waste your time
with people of no influence. But don't overlook any factor of influence.

9. Look on each sale objection as a sales opportunity. Know objections and know the
answers. The salesman who knows the answer never has to worry about the question.

10. Don't be afraid to break traditions.

11. Always be on the search for new outlets and new fields. Don't concentrate on the
regular rabbit runs. You have to work there because that's where everybody is working.
But don't overlook the opportunities of the new paths that have never been broken.

12. Close. This is the prime, No.1, 4-start extra rules of selling. Yet you'd be surprised
how many salesmen never quite get around of closing the sale.

13. Know when to close. Don't stop your talk too soon. Don't carry it on too long.
Sometimes it's easier to talk yourself out of a sale than talk yourself into one.

14. Often the follow-up is more important than the original call. watch your timing on the
follow-up. Many sales are lost because the salesman did not know when to make
follow-up.

15. Don’t stop your sales talk too soon. Make sure every point of importance to the
particular prospect has been covered. You don't have to cover every point with your
prospect. But you should never let go of any prospect until you are sure that he
thoroughly understands every benefit the product can give him.

16. Practice your sales story from the approach to the signed application. Some of the
most successful salesmen work in front of a mirror. Others try their talk out on friends.
The more rough spots you smooth off before calling on the prospect, the easier is the
road to the sale.

17. Work out on good selling plan. This does not mean a standardized selling plan. It
does not mean a standard selling plan that is flexible enough to be adapted to all cases.
You wouldn't make an automobile trip in a new territory without a road map. Make your
selling plan your sales road map.

18. If your company gives you aids, use them. They have been worked out by
experienced executives who have been through the mill. And don't hesitate to try out

95
your own sales aids. Sometimes a homely little gimmick created by the salesman
himself helps illustrate a point and carries the kind of conviction that leads to a sale.

19. Sell your product from the prospect's side of the fence. Study his problems. The only
way you can solve your own sales problem is by helping him solve.

20. Quality is still tops when it comes to looking for sales arguments. Price is important -
but quality will outsell price in the long run because it builds permanently satisfied
customers.

21. Don’t let the prospect get your goat. There is no such thing as ill-tempered
salesman. There are ill-tempered men trying to sell, but good salesman keeps their
tempers in the face of the roughest conditions.

22. Don't be softy. The voice with the smile wins but at the back of that smile must be a
purpose and conviction.

23. Remember, there is no such thing as closed door to the sale. You may not be able
to open all the doors you want to, but when you cannot get through the door, it is your
fault.

24. Talk to the customer's language. This is another old, tried and true sales essential
that is often overlooked. If you sell customer benefits and understand your prospect's
problems, then you are bound to talk in his language.

25. Adapt your sales approach to the customers. There is no such things a standardized
sales approach that will work on all customers. Even the most rigid canned sales talk
has to be adapted to the customer needs.

26. Patience, persistence, and enthusiasm are three character ingredients, for which the
salesman can find no substitute. Take away any of the three and the other two become
much less valuable.

27. Get to know the habits of the prospects. No two salesmen are alike. But once you
learn customer habits, you'll be surprised how many similarities there are among
customers.

28. Put the product in the hands of your prospect if possible. Let him hold it, feel it and
use it. Even if you are selling an intangible, try to find something tangible like a booklet
or another type of sales aid that will give the prospect a feeling of possession.

29. Don't be afraid to set a definite goal for yourself. Don't make it too low. No other field
of business activity does hitching your wagon to a star pay better dividend.

96
30. Always smooth your road with proper preparation. Understand your prospect. Pick
the right approach and employ the right sales tools. The salesman who is properly
prepared, physically, morally, mentally, and materially has no fear of a tough prospect.

31. Watch your health. A sick salesman cannot be a successful salesman.Regular

health check-up is important to every salesman.

32. Don' t over look the pride of ownership as the sales angle. It is seldom the most
important angle- sometimes it can be the little clincher that tips over the sale.

33. Always dispose of the sales objection. Never let it pass by thinking the prospect has
forgotten it, but it is likely to be the one objection that he will remember after you have
answered all the questions.

34. Don't underestimate the moral and ethical principles of your customers. A sale is
lost because the salesman offended the costume by misjudging his moral standing.
Avoid profanity, tough language and dirty story. Did you ever make a sale that
depended on a breach of taste?

35. Don't hesitate to use your satisfied customer to help you make sales.

36. Protect your customers from over buying. The oversold customer of this trip
becomes the unsold on your next trip.

37. Make the customer feel that you are a helper rather than an antagonıst. There is no
cement better than a friendly cooperation in building customers.

38. Don't overlook the little extras. Often a simple favor did outside the regular line
builds a permanent friendship that makes a permanent customer. The little extras are
never substitutes for a good sales argument. But they are mighty good supports.

39. Finally, don't duck the hard sale. Every successful salesman will tell you he learned
more from the tough ones than he did from the easy ones. The path to sales success is
not the line of least resistance.

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INTERNET SOURCES

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https://www.yourarticlelibrary.com/salesmanship/salesmanship-definition-
importance-duties-and-types/50988

https://courses.lumenlearning.com/suny-osintrobus/chapter/the-importance-of-
personal-selling/#:~:text=Personal%20selling%20enables%20a
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https://www.briantracy.com/blog/sales-success/developing-a-powerful-sales-
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https://smallbusiness.chron.com/sales-personality-mean-20021.html

https://www.gavelintl.com/role-personality-sales-marketing/#:~:text=A%20sales
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%20make

.https://www.outreach.io/blog/sales-personality-traits#:~:text=A%20person
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https://www.preservearticles.com/preserve-your-articles

https://www.pachamama.org/social-justice/social-responsibility-and-ethics

https://ideas.repec.org/a/bal/journl/2256-074220175425.html

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https://www.iedunote.com/corporate-social-responsibility

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https://www.business.qld.gov.au/running-business/marketing-
sales/sales/skills/know-product#:~:text=Product%20knowledge%20is%20an
%20essential,share%20the%20benefits%20with%20them.

https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0152743

https://www.brammresearch.com/Blog/ArticleID/1055/Five-Examples-of-
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%20shapes%20and%20drives%20your,stand%20apart%20from%20your

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