PERSONAL SELLING AND SALES MANAGEMENT

Definition of Personal Selling Personal selling

1) two-way flow of communication 2) between a buyer and seller 3) a face-to-face or real time encounter

Why are face to face and two-way important?

Advantages of Personal Selling

Provides a detailed explanation or demonstration of product Message can be varied to fit the needs of each prospective customer Can be directed to specific qualified prospects Instant feedback Personal persuasion can be used A good salesman can get you to buy ice in winter

When to Use Personal Selling

Product has a high value Product is custom made Product is technically complex

There are few customers

Customers are concentrated

Selling image, not product

Creating Value Through Salespeople Relationship Selling

building ties to the customer, based on a salespersons attention and commitment to customer needs over time.

Six stages of Personal Selling

1) Prospecting 2) Pre-approach 3) Approach 4) Presentation 5) Close 6) Follow-Up

Personal Selling: Prospecting

Prospect- possible customer Qualified Prospect-customer who has desire, means and power to decide Cold Canvassing- seller initiated contact of,potential customers without advance warning.

Personal Selling: Pre- Approach & Approach 2) Pre-approach-Gathering information (when to call, income level, risk tolerance) 3) Approach-First meeting (Physical impressions highly importantappearance, timeliness, confidence)

Personal Selling:Presentation
A) Stimulus-Response Format (suggestive selling)
keep suggesting items until the buyer responds, like the McDonalds order taker B) Formula Selling Format more formal and planned, like a telemarketer
Canned Selling Presentation Memorized, standardized message conveyed to every prospect. Works when seller is a novice or does not know the buyer well

Personal Selling: Presentation

Need-Satisfaction FormatLet the customer do the talkingSalesman probes, listens then suggests, like a financial planner
Adaptive Selling- pro-active but selective presentation of offerings, based on pre-approach data Consultative Selling re-active presentation for problem solution

Personal Selling: Presentation

Handling Objections
Acknowledge and Convert the Objectionuse the objection as a reason to buy (expensive) Postpone hold off answer because next info will convince buyer (complicated) Agree and Neutralize show the objections insignificance (side effects) Denial refute objection with clear facts

Personal Selling: Close

Trial Close-Can I put you down for blue or green? Assumptive Close-ask about delivery or warranty choices.

Urgency Close-Offer valid for today only.

Final Close-Buyer initiated acceptance of the sale.

Personal Selling: Follow-Up

Address concerns with delivery and installation, so todays customer becomes tomorrows qualified prospect or referral source

Sales Force Motivation Compensation

Straight Salary Compensation Plan Straight Commission Compensation Plan Combination Compensation Plan

Sales Force Evaluation

Quantitative Assessments sales quotas
easy but ignores selling environment

Qualitative Assessments behavioral evaluations

attitude attention product knowledge selling skills appearance and professionalism

Personal Selling

Personal selling involves the two-way flow of communication between a buyer and seller, often in a face-to-face encounter, designed to influence a persons or groups purchase decision.

Prospecting and Pre-approach

Improving Productivity Through Prospecting

An Experts Viewpoint:
Prospecting process that treats the generation of sales leads and qualification of prospects as an ongoing sales strategy. . . .

Action

Improving Productivity Through Prospecting

An Experts Viewpoint: Result

A comprehensive screening system not only improves the closing ratio of salespeople and account managers, but also has a positive influence on customer satisfaction and retention by better assuring the right match between customer needs an company solutions.

Why Buyers Wont See Salespeople

1. 2. 3. 4. They may have never heard of the salespersons firm. They may have no need; they just bought the product category. The buyer may have their own deadlines on other issues. Buyers are constantly getting calls from salespeople and do not have the time to see them all.

5.

Gatekeepers in any organization screen their bosses calls and are often curt and even rude.

Prospecting
The process of identifying, qualifying, and prioritizing organizations and individuals that have the need for and potential to purchase the salespersons market offering of products and services.
Screening Procedures for Qualifying Leads

Sales Leads

Qualified Prospects

Prospecting Plans are the Foundation for Effective Prospecting Set Goals
Establish daily, weekly and monthly quotas for acquiring new prospects

Prospecting Plans are the Foundation for Effective Prospecting Set Goals
Allocate Time
Establish a regular daily schedule for conducting prospecting activities.

Prospecting Plans are the Foundation for Effective Prospecting Set Goals
Allocate Time

Keep Records

Track your results from using the different prospecting methods.

Prospecting Plans are the Foundation for Effective Prospecting Set Goals
Allocate Time

Keep Records
Evaluate

What is working for you? Compare results and use the methods that work best for you.

Prospecting Plans are the Foundation for Effective Prospecting Set Goals
Allocate Time

Keep Records
Evaluate Stay Positive

Develop confidence by knowing your products and believing that you offer the best solutions.

Popular Prospecting Sources & Methods

External Sources
Referrals Introductions Community Contacts (Centers of Influence) Organizations Non-competing Salespeople Visible Accounts

Popular Prospecting Sources & Methods

Internal Sources
Company Records Lists and Directories Advertising Inquiries Telephone Inquiries Mail Inquiries Internet or World Wide Web

Popular Prospecting Sources & Methods

Personal Contact
Observation Cold Canvassing Trade Shows Bird Dogs (Spotters)

Qualified Prospects . . .

Can benefit from the sales offering Have the financial wherewithal to make the purchase Play an important role in the purchase decision process Are eligible to buy based on a fit within the selling strategy Are reasonably accessible and willing to consider the sales offering Can be added to the customer base at an acceptable level of profitability

Importance of Effective Prospecting

Many Leads

Suppose it takes 10 leads to generate one qualified prospect

100 Leads
Few Qualified It will Prospects take

And suppose it takes 10 qualified prospects to generate one customer

100 leads to generate Many Qualified one customer

Prospects

One Customer
Few Customers

Importance of Effective Prospecting

50 Leads

The better the lead generation method, the higher the proportion of qualified leads.

The more accurate the qualifying process, the higher the proportion of customers per qualified lead. One Customer

Gathering Precall Information: The Prospect

The prospects name and title

Correct spelling and pronounciation can be gathered by asking the receptionist or secretary or gatekeeper to verify information.

Gathering Precall Information: The Prospect

Is this prospect willing to take risks? Are they confident with their decision making?

May have to ask the prospect

Gathering Precall Information: The Prospect

Is the buyer involved in their community? Do they belong to clubs or professional organizations?

Observe club or organizational honors displayed in the office.

Gathering Precall Information: The Prospect

Does the prospect have hobbies or interests they are proud of?

Observation of office.

Gathering Precall Information: The Prospect

What is the prospects personality type? Easy going? All business?

Observation and experience with buyer.

Gathering Precall Information: The Prospect

Where did this prospect grow up? Where were they educated?

Look for diplomas. Ask.

Gathering Precall Information: The Prospects Organization

What type of business are we dealing with?

Can be gathered from a directory and company web site.

Gathering Precall Information: The Prospects Organization

To what market does the company sell? Who are its primary competitors? What does the company make and sell?

Annual reports and company web site.

Gathering Precall Information: The Prospects Organization

Who and how many vendors does the prospect presently buy from? How much and how long have they been purchasing from their supplier(s)? What challenges is the organization facing?

Salesperson may have to ask for this information.