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Chapter

3
The Personal
Selling Process
The sales process itself plays
an increasing role in
creating customer value.
Neil Rackham
THE EIGHT STEPS OF THE SALES PROCESS
8. Follow-up
7. Gaining Commitment
6. Meeting objections
5. Presentation
4. Need Assessment
3. Approach
2. Preapproach
1. Prospecting
Challenges in Personal Selling
Inability to hard-sell
Manager resistance
Priority dilution
Irregular reporting
Poor data quality
Employee turnover
Loss of interest over a period
1) Prospecting
Leads can be identified through
Referrals from customers
Referrals from internal company sources
Sales manager; Marketing dept.; Telemarketing dept.
Referrals from external agencies
Trade Associations,Industry Associations,Internet,Online Information
services
Published directories
Yellow Pages
Networking by the Salesperson
Cold canvassing
The method or system by which sales-people learn the names of
people who need the product and can afford it.
Prospecting Activities for Residential Real Estate
Property Exhibitions
Customer References
Corporate Tie Ups (Discount of Rs 25-50/sft)
Tie up with Property Portals e.g Indiaproperty.com

Prospecting Activities for Commercial Vehicles
Financier
Demo Caravans
Advertisements in local
newspapers
Visit to Competition
customers
Tenders/Contracts
Brokers
Vehicle Clinic
Promotional Offers/Schemes
Prospecting (Mutual Funds)
Existing Sources
Bank Customers,mostly salary
account holders
Customer Referrals
Directories of Industrial zones
NASSCOM,CII,FICCI,ASSOCHM
Activities
Local
Advertisements(Leaflets)
Kiosks in Apartment Complex
Corporate PPT
Financial Trade Fairs
Retailers of High end goods
(Cold Canvassing)
Spreading Financial literacy in
Kitty parties
Meeting Celebrities in
Bangalore
Rahul Dravid
Puneet Rajkumar

Lead Management Tools
Activity Prospect Stack Up Tracker

Prospect Customer Form
Name of the Customer along with address & contact
details.
End use application of the product for each segment.
Product/Brand currently used
Type of customer
Standardised or Customised
Mode of Enquiry
Model Description & Quantity
Enquiry Status
Follow up Details
Reason for loss of sale
Qualifying Leads
A qualified prospect
Has a need for the products being sold.
Can afford to buy the products.
Is receptive to being called on by the
salesperson.
Prospect Management Puzzle

Cold Prospect?
Prospect?

Warm
Prospect?


Hot Prospect?

The Answer!
To improve availability and predictability of prospect data and
complete control over prospect management cycle
Defining prospect categories
Month
s
0 1 2 3
Hot Prospect
Warm Prospect
Cold Prospect
Point of
Contact
Intension to purchase
Our Prospects
Retailed:
Goods delivered after
invoicing
Full Payment:
DO / Payment Received
Commercial transaction
complete
Can be skipped if credit
offered

Cold Prospect:
Expected Purchase < 3
months
Suspect contacted from CDB
Warm Prospect:
Expected Purchase <2
months
Taken quotation

Hot Prospect:
Expected Purchase- within the
month
PO / Token money taken

Checklist to Qualify Hot Prospects for CV

Check Compliance to the following activities when
Qualifying Hot Prospects
1. SE aware of the specific requirements of prospect.
2. Product related discussion (demo) has happened.
3. Quotation given to prospect.
4. Price agreement reached.
5. Applied for loan from a financier.
6. Indicated a specific date by which prospect needs to have
the vehicle.
7. Prospect gives positive & assuring reply to SE on every
call.
Out of 7 points mentioned above, minimum of 5
points should be applicable for a prospect to be
categorized as Hot.
Checklist to Qualify Hot Prospects for WM
Check Compliance to the following activities when Qualifying
Hot Prospects
1. RM aware of the investment requirements of prospect.
2. Financial Profiling based on age group has happened.
3. Different Financial Product (MF, Insurance/Pension plans, Real Estate,
Equities & Term deposit in banks, PPF, Fiduciary Services) information
along with a model portfolio recommended to prospect .
4. The Portfolio customised based on risk return expectations of
prospect.
5. Customer Form along with list of Documents required for compliance
(KYC, Address & ID Proof, Photograph, Blank cancelled Cheque, POA
if need be)
6. Indicated a specific date by which prospect can collect the
investment funds .
7. Prospect gives positive & assuring reply to RM on every call.(3-5)
Out of 7 points mentioned above, minimum of 5 points should
be applicable for a prospect to be categorized as Hot.
Hot Prospect Tracking Sheet

Prospect Funnel
Understanding prospect funnel is
essential for
effective Prospect Management


How is a prospect funnel different
from a prospect pipeline or are
they the same?


Prospect Funnel vs. Pipeline
Prospects
Cold
Warm
Hot
FP
R
FP Full Payment
R Retailed
Conversion Ratios
Hot to Retailed = R
Hot + FP + R


100
54
7
2
19
73%
Cold
Warm
Hot
FP
R
Measure of :
Deal closing skills
Financier relationships
Conversion Ratios
Warm to Hot = R + FP + Hot
R + FP + Hot + Warm

Measure of :
Quality of coverage in
previous and
this month
Selling skills and product
/ market
knowledge

100
54
7
2
19
32%
Cold
Warm
Hot
FP
R
Conversion Ratios
Warm to Retailed = R
R + FP + Hot + Warm

Measure of :
Quality of coverage in
previous and
this month
Selling skills and product /
market
knowledge
100
54
7
2
19
23%
Cold
Warm
Hot
FP
R
Conversion Ratios
Cold to Warm = R + FP + Hot + Warm
R + FP +Hot + Warm + Cold


Measure of :
Quality of coverage in previous
and this month
Quality of prospect, segment
selection
Availability of a comprehensive
CDB
Competition knowledge

100
54
7
2
19
40%
Cold
Warm
Hot
FP
R
Conversion Ratios
Cold to Retailed = R
R + H + FP+ W + C
100
54
7
2
19
10.5%
Cold
Warm
Hot
FP
R

Measure of :
Quality of coverage in previous
and this month
Quality of prospect, segment
selection
Availability of a comprehensive
CDB
Competition knowledge

Month Closing Funnel
Cold
Warm
Hot
FP
R
Conversion Ratios
Cold to warm=(W+H+FP+R)/(C+W+H+FP+R))100 =
Warm to Hot = ((H+F+P+R)/(W+H+FP+R)) 100 =
Warm to Retailed = (R/(W+H+FP+R)) 100 =
Hot to Retailed = (R/(H+FP+R)) 100 =
Reclassification of Prospects on 1
st
of Month
30
th
/31
st
of a Month

Out of 600 cold prospects, suppose 500 become suspects or they do not meet
the criteria for cold prospect classification, then these 500 people will go to
back end master database.
Out of 250 Warm prospects, 150 shift to cold status.
Out of 50 Hot prospects, 25 shift to warm status.


1
st
of Next Month
Cold=600
Warm=250
Hot=50
FP
R
Cold = 250
Warm=125
Hot =25
FP
R
Estimating Prospect Funnel
Sales target: 50

Conversion factors are as:
Cold to Warm
40%
Warm to Retailed
23%
Hot to Retailed
73%

Calculate:
Target Cold, Warm, Hot
prospects for the month (Cp,
Wp, Hp)
Cold
Warm
Hot
FP
R
Opening Prospect Funnel
Cold - 150
Warm - 75
Hot - 8
Full Payment -0
Retailed -0
This gives a visibility in the system in terms of the number of
prospects you need to generate to achieve the planned results.
Now you have to make an action plan to generate the required
number of prospects.

Cold to Warm =
(Warm+Hot+FP+Ret
ail)/(Cold+Warm+H
ot+FP+Retail)

(50+149+18)/
(50+149+18+C) =
0.4
= 326
Balance Cold for the
Month = 326 - 150 =
176

Warm to Retailed =
Retail/(Warm + Hot
+ FP+ Retail)
0.23 x 18 +
0.23 x W + 0.23 x 50
= 50
= 149
Balance Warm for
the Month = 149 -
75 = 74



Hot to Retailed =
Retail/(Hot + FP+
Retail)
(0.27/0.73) x
50 = 18
Balance Hot for the
Month = 18 - 8 = 10


At the end of the month, you need to calculate
these ratios to see your performance vis--vis
industry benchmarks.
If the ratios are lower than the industry
benchmarks, then take the ratios achieved in
previous month as the benchmark. i.e.
If IB>CR,then use CR of the previous month
If they are higher than the industry benchmarks
then use the industry benchmarks for the next
month.
If IB<CR,then use IB
TARGET FUNNEL
SALES TARGET =50
MONTH OPENING
FUNNEL
SHORTFALL FUNNEL
Conversion
Ratios
Prospect
Target
Cold
Warm
Hot
FP
R
Prospect
Target
Cold
Warm
Hot
FP
R
Prospect
Target
Cold
Warm
Hot
FP
R
C TO W =


W TO H =

W TO R =

H TO R =
Use conversion ratios to
calculate the prospect targets
required to achieve the given
vehicle target
Use fig. from previous month
closing funnel and update the
status of the prospects
Calculate shortfall by subtracting
balance prospect requirement
from target no of prospects
= 326

= 149

= 18

= 0

= 50
= 150

= 75

= 8

= 0

= 0
=176

=74

=10

=

=
(A) (B) (C)= (A) (B)
Sales Executive
Tap new prospects and build pipeline/Funnel.
Keep feeding the sales funnel at the top
Classify prospects
Fill Prospect Forms
Update prospect status
Implement Activity plan finalized with DSM.
Daily reporting to SM/ MIS Operator.
Daily Prospect Call Tracker Format
MIS Operator
Receive daily prospect report from all DSE
Compile daily reports from DSE in the given
format/ tool
Submit the report to DSM
Send a daily status of reports received from SE to
SM
Daily Prospect Monitoring Sheet
Area Sales Manager
Month Planning
Prospect target calculation
Activity Planning
Review Meetings
Prospect position analysis
Review & corrective action for each SE
Inventory Planning
Analyze daily compiled report from MIS operator
and highlight problem areas
Daily reporting to RSM

2) Preapproach: Planning the Sale
Includes all the information-gathering activities
salespeople perform to learn relevant facts about the
prospects, their needs, and their overall situation.

Adaptive selling:
When a salesperson alters the initial objectives or plans
of the sales process because of new information gained
from the customer during the actual call.
Customer Research
Size
Present purchasing practices
The location of its HQ,Branch offices & location of
manufacturing plants
The names of people who make the buying decisions
as well as those who influence the purchase.
Buyers background Education,social affiliations &
personalities.
Become familiar with the problems of prospective
buyers.
Read the company files from customer database-
sales records,correspondence,past sales calls.

Planning the Sales Presentation
It takes 4-5 calls to close a sale.
The salesperson must obtain from the buyer
some type of commitment for action that moves
the sales process forward.e.g.
Vendor Selection Criteria
Meeting with other decision makers
Salespeople recognize differences across selling
situations & adapt their presentations
accordingly.
3) The Approach: The first minute or so of the call.(Icebreak)
A good approach makes a favorable impression and
establishes some degree of rapport between the
salesperson and the buyer.
Salespeople can draw attention of the buyer by
Handing over a sample
Highlighting some benefit in which the buyer will likely be
interested

Expectations in India:
Greeting in the local language
Professional attire
Body Gestures & eye contact.
4) Need Assessment
The stage in which the
salesperson must
discover, clarify, and
understand the buyers
needs.
The best way to uncover
and understand needs is
by asking questions.
They Need it!
Why do people Buy!
They want it!
They Desire it!
They just want to Spend!

Find out what is driving
them to Buy!!!
Gather information about
the customer and the
buying process.
Open Probes
Start with Who, Where, Why,
What, When & How
They cannot be answered as
YES/NO
Shall be used to gain
info/Opinion
Makes the Customer Talk
Customer feels that his views
are valued
Closed Probes
Ask Closed ended questions
Have opposite effect of open
ended questions
Restrict responses to YES/NO.
This is possible where a
specific answer is required.
The Probing Triangle
F
A
B
Situation
Problems Areas of concern
Effect Building
Gain Commitment
to a Solution
Quantity Evaluate
NEED ASSESSMENT
Situational questions
How often do you change the cutting oil in your drill presses?
In addition to the hospital administrator, who else has an influence on the decision?
Problem discovery questions
Have you experienced any delays in getting repair parts?
In which part of the production process is quality control the most important?
Problem Impact questions
How do these delays in getting parts affect your production costs?
What impact do the quality consistency problems have on your production costs?
Solution value question
If your inventories could be reduced by 20%, how much would that save you?
If your rejection rate on final inspection was reduced to under one percent, how much would
that save you?
Confirmatory questions
So, you would be interested in an inventory control system that reduced your inventories by 20%?
If I can provide evidence to you that our products would lower your rejection rate to under one
percent, would you be interested?

Situations to Sell
Hand Sanitizer
Situation Selling for Tata Nano
Shelter from adverse weather (Rain,Snow,
Summer)
Family of 4 wants to go out exursion
An expectant mother to deliver a baby in the
middle of night
Inter City Travel Intra City Travel
5) The Presentation
A discussion of those product and/or service features, advantages,
and benefits that the customer has indicated are important.
Built around a forceful product demonstration

Prepared presentation vs. Adaptive selling

Tips for effective presentations
Keep it simple
Talk the prospects language
Stress the application of the product/service to the
prospects situation
Seek credibility at every turn.
Canned Presentation
Advantages
Very good impression in the
mind of the consumer.
Will know what to say and will
be well prepared.
Can manage to answer the
queries.
Its better to use prepared PPT
most of the time, especially
when presenting to the board
of the company such as IT
solution.
Disadvantages
Will be a little less
spontaneous.
Will be caught off guard when
questions come out of what
he/she has not prepared

Presentation of Product, Features, Benefits, Advantages
Product Features Benefits Advantages
Camera Telephoto lens Take pictures Able to capture
from longer images of animals
distances. or people from a
distance.
Bicycle Attached water Can hold a water Dont get dehydrated.
bottle. bottle holder Dont have to stop
for water.
Feel more refreshed.
Drill Press Multiple drill Can change bits Saves time.
bits attached without shutting Saves money.
down the machine.
Motor Oil Rust inhibitor Oil and engine Saves money.
have longer life.
PEN ELECTRIC SWITCH POTATO OB BOOK
WATCH CELLO TAPE SHOE TISSUE PAPER
LIGHTER SCISSOR VISION SPECTACLES PERFUME
PEN DRIVE STAPLER SOAP TILE
LAPTOP PUNCH DUSTBIN WALLET
MOBILE PHONE CHOCLATE MINERAL WATER BELT
RING CHEWING GUM BRACELET PAPER WEIGHT
NECKLACE TIE MOUSE
CHAIR SHIRT EGGS
FAN KPL STEEL GLASS
Use the FAB Model to sell following Products
6) Meeting Objections
Objections should be welcomed because they indicate that the
prospect has some interest in the proposition.

In responding to an objection
Listen to the buyer
Clarify the objection
Respect the buyers concern
Respond to the objection

Common types of objections
Price or value objections
Product/service objections
Procastinating objections
Hidden objections
7) Gaining Commitment
Asking the buyer to commit to some action that
moves the sale forward.

Common Sales Closes
The Assumptive Close
Now what size do you want?
Special Offer Close
If you buy this product today, well double the length of the
warranty.
Summary Close
You have agreed that our product is the best on the market.
Correct? Then I suggest that you place your first order today so
we can have it to you by the end of the week.
1. Summary & Alternative Close
Summarize the benefits and present alternatives
for a decision. e.g.

A. Now Mr Customer, we have agreed that our
product can take care of your requirements.
B. Where do you want the equipment installed?

2. Minor Decision Close
By getting the customer to make a decision on a
lesser matter, you atleast get a decision. e.g.

A. As I see it, its now come down to a decision
whether to go for a product A or product B.
3. Blank Order Close
Ask the prospect question, the answer to which
should be filled out on a proforma invoice.

A. What is the exact company name?
B. Who of our delivery people would be
contacting?
C. How much amount would you be releasing as an
advance?
4. Balance Sheet Close
This is the only close that physically involves the
customer, and properly used sees the customer
writing down all the reasons, why he should buy or
use your product/service.

Let the customer think of all positives & negatives.
Divide a paper horizontally into 2 & let customer fill
in all the WHY on the left side and WHY NOT on
the right side. Then arrive at a conclusion.
5. Call Back Close
This may be used when you had a NO and have
had to leave without any agreement on the next
steps. e,.g
Call back the customer
Sir, I have an apology for you, I cant think how it
happened but forgot to tell you about it.

The forgotten fact must be genuine and if
possible significant.

6. Clean Sweep Close
Clean Closure without much objections.
7. The Final Objection Close
To obtain the customers agreement assuming
that there is only one objection.
8. Sharp Angle Close
This is when a customer asks/comments on a
particular feature of the product.
Customer: I am looking for a product which
can..
9. Similar Situation Close
Many customers feel associated with others who
had been in similar situations.

Therefore, your cautionary tale can be negative
illustrating what happened because the prospect
did not go ahead to buy or positive illustrating the
benefit obtained by a third party.
Make it easy for the prospect to relate to a tale.
8) Follow-Up
Reps must learn that the sale is not over when
they get the order.
It is much more expensive to acquire new
customers than it is to retain existing
customers.
Following up to ensure that the customer is
fully satisfied builds trust and is consistent
with the concepts of Relationship Marketing.
Benefits to Company
Higher internal efficiency
Lower and active inventory
Higher productivity of working capital
Higher productivity of manpower
Prediction accuracy of monthly retail
Lesser product shortages
Reduced seasonality effect on retail
Higher retails and market shares
Financiers performance measures