EFFECTIVE PERSONAL SELLING

PROF. IYER

SALES MANAGEMENT Effective Personal Selling 2 .

Effective Personal Selling ‡ Why effective selling matters ‡ The personal selling process ‡ Effective selling and hiring effective sales representatives 3 .

4 (28.8% 15.8% 20 11.8 8.4 192 Retaining existing accounts 62 11.Why does effective selling matter: Profitability? Practice Systems selling to major accounts Determining the profitability of sales to each account Selling at higher prices % who consider themselves very or quite effective 18% Overall Survey Effective Firms % Difference 11.7 27 11.5 4 .8) Gaining share within existing accounts Selling new products 37 11.8 21.2% 28.7 177 32 11.8 34.8 22.8 32.6 91.8 84.

The personal selling process ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ Prospecting Classifying Leads Pre-call planning Approach/relating Needs discovery Presentation Handling Objections Closing Follow-up and servicing 5 .

Prospecting: ‡ Building a prospect (suspect) list ± ± ± ± Direct inquiries Directories Referrals Cold Calling 6 .

Qualifying Prospects ‡ Needs ‡ Buying Authority ‡ Ability to pay 7 .

markets. current suppliers. buying routines ‡ Where can I find information ± ± ± ± ± company records other salespeople customer employees published information/web observation (what s being delivered/loading dock) ‡ What am I going to say? 8 .Pre-call Planning ‡ What do I want to accomplish? ‡ What do I know about the prospect? ± Their size.

competence. commonality.The Approach/Relating ‡ Gaining access ± Direct personal contact ± Phoning ahead ± Personal letters ‡ Establishing rapport ± Know your product/know your customer ± Listen to your customer ± Reduce tension ‡ propriety. intent 9 .

Needs Discovery ‡ ‡ ‡ ‡ ‡ Permission Fact finding Feeling finding Checking Using open and closed-ended questions 10 .

The Presentation: basic selling process models ‡ Stimulus-Response presentations ‡ Need Satisfaction presentations ‡ Problem-Solutions presentations 11 .

. ± A product is is standardized ± or when the benefits are the same for all customers ± inexperienced salespeople/ high turnover ‡ Ensures a uniform. high-quality presentation 12 .Stimulus-Response Presentations ‡ Translate features into benefits ‡ Canned presentations ‡ Useful when.

‡ Most commonly used..Need-Satisfaction Presentations ‡ Discovering & meeting customer needs ‡ Discovery occurs early in selling process ‡ Useful when. ± Dollar value of the sale is high enough to justify the time spent ± Different benefits need to be emphasized for different customers ‡ Requires training the sales force to ask the right questions. 13 .

. telecommunications systems 14 . advertising campaigns.Problem-Solutions Presentations ‡ More formal than the need-satisfaction approach ‡ More team oriented/ technical sales people are usually involved ‡ Useful when. ± Dollar value is high enough to justify the expense (or you get the customer to pay for it) ± Long selling cycles ‡ Typical for computer systems.

Handling Objections ‡ Real objections ‡ Pseudo-objections 15 .

Closing ‡ When to close ‡ Closing techniques ± alternative choice ± summary close 16 .

Follow-up ‡ ‡ ‡ ‡ Supporting the buying decision Managing implementation Dealing with dissatisfaction Enhancing the relationship 17 .

36-41. 18 Sales & Marketing Management. The Shape of Things to Come.. . O Connell and William Keenan.How salespeople spend their time Face-to-Face Selling 33% Phone Selling 16% Account Service Coordination 16% Internal Meetings Administration 10% Travel 20% 5% SOURCE: William A. Jr. January 1990. pp.