Western University College

Department of Business Administration

Sales Management
2015/2022

04/16/2024 1
 Unit One: Overview of Sales
Management

Session One: The Meaning and Evolution of

Sales Management

04/16/2024 2
 The Meaning of Sales Management

• The word ‘Sales Management’ is a combination of

two concepts i.e. sales and management.
• Sales is an art of persuading a prospective
customer to purchase a product or service.
• Management is the process of getting things done
through others with the help of managerial
activities.
• Thus, Sales Management is the process of
managing, leading and directing the activities
involved in generating, developing and maintaining
an organization’s sales.
04/16/2024 3
 Cont
• Sales management has been defined
differently by authors. Some are given bellow.
• Sales management refers to the administration
of the personal selling component of a
company's marketing program.
• It includes the planning, implementation, and
control of sales programs, as well as
recruiting, training, motivating, and evaluating
members of the salesforce.
04/16/2024 4
 Cont
• Sales management is the management process of
establishing, directing, and coordinating the sales
development activities for the company products.
• It includes:
 establishing salesforce objectives,
 organizing the salesforce,
 recruiting and selecting salespeople,
 training sales personnel,
 compensating salespeople,
 motivating salespeople,
 developing sales plans and developing sales
development programs.
04/16/2024 5
 Cont
• “Sales management” means management of all
marketing activities, including advertising,
sales promotion, marketing research, physical
distribution, pricing, and product
merchandising.
• Sales management is the attainment of sales
force goals in an effective and efficient manner
through planning, staffing, training, leading
and controlling organizational resource.

04/16/2024 6
 Cont
This definition cover two important ideas:
• The five functions planning, staffing, training,
leading and controlling, some sales
management theorists identify some other
functions such as organizing, communicating
and decision making.
• Attainment of organizational goal in an
effective and efficient manner.

04/16/2024 7
 Cont
• The Definitions Committee of the American
Marketing Association agreed that:
Sales management meant
• the planning,
• direction, and
• control of personal selling, including recruiting,
selecting, training, assigning, routing,
supervising, paying, and motivating as these
tasks apply to the personal Salesforce.
04/16/2024 8
 The Evolution of Sales Management
• Prior to the Industrial Revolution, small scale
enterprises dominated the economic scene, and
selling was no problem.
• The chief problem was to produce enough
goods for nearby customers.
• Orders were obtained with minimum effort,
and they were on hand before goods were
produced.

04/16/2024 9
 Cont

• In most firms a single individual supervised all phases

of the business, including both manufacturing and
selling.
• Manufacturing problems received the most attention.
Selling and other marketing problems were handled on
a part time basis.
• With the industrial Revolution, which began about
1760 in England and shortly after the American
Revolution in the United States, it became increasingly
necessary to find and sell new markets.
• Newly built factories were turning out huge quantities
of goods of every description.
04/16/2024 10
 Cont
• Their continued operation demanded great expansions
in the area of sales coverage, as adjacent markets could
not absorb the increased quantities being
manufactured.
• But, even under these circumstances other business
problems took precedence over selling.
• These were problems associated with hiring large
numbers of workers, and acquiring land, buildings, and
machinery.
• To solve them, large amounts of capital had to be
raised.
04/16/2024 11
 Cont
• The result was that more and more businesses
adopted the corporate form of organization the day
of large scale manufacturing enterprises had arrived.
• Firsthand administration of all phases of the
operation being beyond the capabilities of most
individuals, authority was increasingly delegated to
others.
• Separate functional departments were established,
but sales departments were set up only after the
activation of manufacturing and financial
departments.
04/16/2024 12
 Cont
• The advent of specialized sales departments helped to
solve the organizational problems of market
expansion, but another problem remained
communicating with customers.
• Little by little, manufacturers shifted portions of the
marketing function to middlemen. At the start, goods
were sold to retailers, who resold them directly to
consumers.
• Eventually, some larger retailers began to purchase
for resale to other retailers, and, as time passed, many
of these evolved into wholesale institutions.

04/16/2024 13
 Cont
• Other wholesalers developed out of the import export
business.
• The manufacturers’ sales department was becoming
more remote from consumers, and it was increasingly
difficult to maintain contact with final buyers and
users of the product and to control the conditions
under which wholesalers and retailers made their sales.
• Thus, in some respects, the addition of middlemen to
the channel of distribution complicated the problem of
market expansion.

04/16/2024 14
 Cont

• Meanwhile, marketing activities conducted by the

manufacturers’ sales department grew in importance.
• Many tasks, such as advertising and sales promotion,
became increasingly complex.
• One solution was to split the marketing function, a
trend that is still continuing.
• New departments were and are being organized for the
performance of specialized marketing tasks.
• Marketing activities today are carried on not only by
the sales department, but by such departments as
advertising, marketing research, export, sales
promotion, merchandising, traffic and shipping, and
credits and collections.
04/16/2024 15
 Cont
• In spite of this growing fragmentation of
marketing operations, the sales department still
occupies a strategically important position.
• The underlying responsibility for the making of
sales has not shifted elsewhere.
• Businesses continue to rely upon their sales
departments for the inward flow of income.
• It has been aptly said that the sales department
is the income producing division of business.
04/16/2024 16
 Cont

Session 2: The Objectives and Benefits of Sales

Management

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The Objectives of Sales Management
• Sales management objective refers to what a
firm intended to achieve in its sales
management program.
• From the company viewpoint, there are three
general objectives of sales management:
Achievement of sales volumes/values
 Contribution to profits
Growth in sales and in market share

04/16/2024 18
 The Benefits of Sales Management
• There are different benefits of selling activities,
which are as follows:
Benefits to the society:
• It stimulates consumption and accelerates the
rate of production.
• It creates employment opportunities for a large
number of people.
• It increases the national income of the country.
• It helps to raise the standard of living of people.
04/16/2024 19
 Cont
Benefits to business firms; their salespersons and
customers
• Salespersons are owned by their companies,
while customers are the end users of the
company’s product(s) and/or services.
• All these people, in the chain of marketing,
stand to benefited by sales activities.
• A business firm can be profitable only if its
revenues exceed its costs.

04/16/2024 20
 Cont
• The prime responsibility of the salespersons is
to sell the goods, produced by the
organization, at a profit.
• The creative sales person, tries to penetrate
his/her territory, and adopts suitable means
and techniques of profitable selling of goods
and/or services.
• Business firms, derive various other benefits
from, non selling activities of sales persons.
04/16/2024 21
 Cont

• The salesperson, in the field, is an ideal person, to

keep the company abreast, or ahead of
competition.
• He/she, thus, becomes an important source of
field intelligence by providing important (and
sometimes very crucial) information about the
nature of competitive activities, and also about the
changing needs of customers.
• The salesforce has the additional responsibility of
serving the needs of customers that buy the firm’s
product(s).
04/16/2024 22
 Cont

• Most firms cannot survive, only on the basis of

one time sales; repeat sales are necessary. This is
possible only if the customers are served in a
professional manner.
• A customer oriented sales person has to perform
such activities as:
• providing customers with product information and
demonstration(s);
• training customers’ employees in product use;
• providing customers with sales advice; and
• assisting customers in maintaining inventories.
04/16/2024 23
 Session 3: The Nature and Levels of Sales
Management

04/16/2024 24
 The Nature of Sales Management

• The nature or characteristics of sale

management can be explained in its
integration with marketing management,
relationship selling, and varying sales
responsibility.
A. Its integration with marketing management
process of delivering service to the consumers.
• As sales management is a part of marketing
management, sales planning should be
integrated with marketing planning.
04/16/2024 25
 Cont

• A company’s marketing team typically

consists of two basic groups:
• Field selling teams or field salesforce are in
their territories (or branches, or regions)
contacting existing and prospective (or new)
customers.
• The headquarter marketing team performs
support and service functions such as
promotion, marketing research, marketing
logistics, and customer service and
coordination to assist salespeople in their jobs.
04/16/2024 26
 Cont

B. Relationship Selling
• Every business relationship is an exchange,
which is the process of obtaining a desired
product or service from someone by offering
something in return.
• Relationship selling is the practice of building
ties to customers based on a salesperson’s
attention and commitment to customer needs
over time.

04/16/2024 27
 Cont
• Relationship selling consists of three types.
• Partnership relationship selling: With
partnership selling, buyers and sellers combine
their expertise and resources to create
customized solutions; commit to joint
planning; and share customer, competitive,
and company information for their mutual
benefit, and ultimately the customer.

04/16/2024 28
 Cont

• In this type of relationship selling, both selling

and buying organizations work collaboratively to
lower the total costs or increase value, in order
to achieve mutual benefits.
• Transactional relationship selling: All customers
do not have high sales and profit potential.
• With customers who have low sales and profit
potentials and businesses that have low-priced
and low-profit products and services the focus is
on single transaction with each customer.

04/16/2024 29
 Cont
• This is called transaction-oriented selling, where after
the product or service is sold, the customer is not
contacted again and hence the relationship is not
extended.
• Value-added Relationship Selling: In this case the
focus is on the salesperson understanding the current
and future needs of the customer correctly and
meeting those needs better than the competitors.
• After the purchase is made, the salesperson contacts
the customer to find out if the customer is satisfied
and has any future needs.

04/16/2024 30
 Cont
• Such customers have medium sales and profit
potential.
• The role of salespeople is very important in the
company’s relationship marketing program.
C. Varying Selling Responsibility
• The diverse nature of the buying situation means
there are many types of selling job.
• Selling varies according to the nature of selling task.
• Most sales tasks are quite different from one another
and sales jobs generally are different from non selling
jobs.

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 Cont
• On the basis of the creative skills required, sales
job can be classified as: order takers, order
creators and order getters from the simple to the
complex.
• Order takers respond to already committed
customers;
• order creators do not directly receive orders since
they talk to specifiers rather than buyers;
• order getters attempt to persuade customers to
place an order directly.
04/16/2024 32
 Cont
Order-Takers: Responsive selling
• Inside order-takers: This is a position in which the
salesperson takes orders at the seller’s place of
business-for example, a retail clerk standing
behind the counter, or a telephone representative
at a catalog retailer. Most customers have already
decided to buy, and the salesperson’s job is to
serve them efficiently.
• Delivery salespeople: The primary job of the
delivery salesperson is to deliver the product e.g.
soft drink, bread, milk etc.
04/16/2024 33
 Cont
• The selling responsibilities are secondary. Good
service and a pleasant personality may lead to more
sales
• Outside order-takers: Outside order-takers visit
customers, but their primary function is to respond
to customer requests rather than actively seeking
persuade.
• Example includes spice sales person who calls on
retail food stores, soft drinks and bottled water who
calls on shops, re-distributors. These sales people
do little creative selling.
04/16/2024 34
 Cont

Order-Creators
• Missionary salespeople: These salespersons are
not expected or permitted to solicit an order.
• Their job is to build goodwill or to educate actual
or potential users by providing product
information and other personal selling assistance.
• For instance, doctors cannot make a direct sale
but prescribes ( them for patients).
• Similarly, in the building industry, architects act
as specifiers rather than buyers.

04/16/2024 35
 Cont

Order-Getters: Creative selling

• Order-getters are those in selling jobs where a
major objective is to persuade customers to
make a direct purchase. These are the front-
line salespeople.
• New business salespeople: The task is to win
new business by identifying and selling to
prospects (people or organizations who have
not previously bought from the company’s
salespersons).
04/16/2024 36
 Cont
• Organizational salespeople: These salespeople
have the job of maintaining close long-term
relationships with organizational customers
(i.e. industrial buyers, buying for resale,
institutional buyers and local authorities).
• The selling job may involve team selling
where mainstream salespeople are supported
by product and financial specialists.

04/16/2024 37
 Cont

• Consumer salespeople: Consumer selling

involves selling physical products and services
to individuals.
• Much selling in this category tends to be one-
off and salespeople are generally rewarded
through commission.
• Technical support salespeople (Sales
engineers): Technical support salespeople
provide sales support to front-line salespeople.

04/16/2024 38
 Cont
• In this position the major emphasis is on the
sales person’s ability to explain the product to a
prospective customer, and also to adapt the
product to the customer’s particular needs.
• The products involve here typically are
complex, technically sophisticated items.
• A sales engineer usually provides technical
support, and works with another sales
representative who calls regularly on a given
account.
04/16/2024 39
 Cont
• A sales engineer takes such heavy responsibilities as
engineering advice and consultancy of customers while
using a heavy duty electronic or heavy machine,
equipment, installation, repair and maintenance of these
as part of customer service package etc.
• Merchandisers:
• Merchandisers salespeople provide sales support in
retail and wholesale selling situations. Orders may be
negotiated nationally at head office, but sales to
individual outlets are supported by merchandisers who
give advice on display, implement sales promotions,
check stock levels and maintain contact with store
managers.
04/16/2024 40
 The Levels of Sales Management

• In the organization structure of many

organizations several levels or positions are
involved in sales management.
• There are three levels of sales managers in
organizational hierarchy. These are
• strategic or top level sales managers,
• tactical or middle level sales managers, and
• operational or first line sales managers.

04/16/2024 41
 Cont
1. Top-level (Strategic) Sales Managers: The highest level
in sales management is often called vice president (sales),
or general manager (sales), or national sales manager.
• They are responsible for long-term marketing or sales
planning including scanning the environment, setting
long-term and short-term objectives and goals,
developing strategies for achieving them, making
decisions for implementing strategies and action plans,
and controlling the performance.
• They are also a part of top management team for the
organization's strategic planning and coordination
between various functional areas.
04/16/2024 42
 Cont

2. Middle-level (Tactical) Sales Managers:

• These positions mostly carry the title of
regional, zonal or divisional sales manager,
whose major responsibilities are to manage
several branches or districts reporting to them
and also to implement the strategies and action
plans approved by the top management.
• In some companies, these positions are
eliminated in order to make the organizations
use cross-functional team selling for high sales
potential customers.
04/16/2024 43
 Cont
3. First-line (Operational) Sales Managers:
• This is the first level of sales management with
titles such as branch sales managers, area sales
managers, or district sales managers.
• They are directly responsible to achieve sales
goals and objectives by providing day-to-day
supervision to salespeople.
• They implement the procedures and rules
decided by higher levels of management.

04/16/2024 44
Session 4: The Roles, Skills of a Sales Manager;
and Marketing VS Selling

04/16/2024 45
 The Roles of a Sales Manager
• Instead of the demanding controlling, volume
oriented, the modern and successful sales
manager is a team leader rather than a boss to
the salespeople.
• The sales manager directs and advises
salespeople by working with them and giving
them necessary authority to take decisions.
• Some of the importance changes in the roles
of the modern sales manager are as follows:

04/16/2024 46
 Cont
• Playing strategic role in the company by
giving key inputs for developing long term
company marketing and sales plans, such as
sale forecasting, salesforce management,
evolving sales and marketing strategies,
implementing and controlling sales budget.
• Working as a team leader with the salespeople
to achieve the objective or goals and profit

04/16/2024 47
 Cont

• Managing multiple sales channels such as

company’s salesforce, online selling direct
marketing and telemarketing.
• Market intelligence i.e. continually updating
information and understanding the changes in
marketing environment like customers,
competitors’ strategies an tactics, government
regulations and technological changes and the
likes.
• Playing leadership role i.e. influencing and
inspiring salespeople toward achieving sales
objectives.
04/16/2024 48
 The Skills of a Sales Manager
• A skill is an ability or proficiency in performing a
particular task.
• Management skills are learned and developed.
• Various skill classifications have been suggested as
being important in performing management roles.
• The following are the most important skill
categories a sales manager needs to have if he/she
has to manage the different sales facilities, sales
activities and salespeople of his/her unit in an
integrated manner.

04/16/2024 49
 Cont
• Technical skills: Technical skill is the ability to
use specific knowledge, techniques and
resources in performing work.
• In other words, it is the understanding of a
proficiency to perform specific tasks.
• Example ability to uses computer hardware
and software to perform specific task, ability
to prepare sales plan, set sales quota and sales
territories.
04/16/2024 50
 Cont

• Conceptual skills: refers to the ability of the

manager to think in wider context while acting
in his/her own unit.
• A manager should be able to think and
conceptually understand the overall
organization context while his/her action is
limited in the department he/she takes charge
of.

04/16/2024 51
 Cont
• This especially helps the sales manager to
understand how each unit of the sale
organization is interconnected, integrated and
is systematically interdependent.
• It also helps him/her to learn what his/her
unit’s contribution is in the overall
organizational goal achievement and what
would mean to the organization if he/he fails
to undertake his/her duties and responsibilities
properly.
04/16/2024 52
 Cont

• Human Relations Skill/interpersonal skill:

They are the ability to work with and
understand others. It also involves the ability
to understand and motivate people.
• Analytical skills: It is the ability to identify
key factors and understand how they are
interrelated and the role they play in a
situation. The analytical skill is actually an
ability to diagnose and evaluate management
problems

04/16/2024 53
 Cont
• Problem Solving Skill: A problem is the
difference that exists between the manager’s
expectation and the reality. Most managers
spend a significant amount of time resolving
problems.
• Effective managers identify specific problems
and their causes; they formulate and
implement solutions. Such managers must
anticipate, analyze, and make decisions
04/16/2024 54
 Cont
• Communication Skills: Communication skills are
a critical component of effective manager.
• Setting sales goals,
• organizing sales,
• sales forecasting, staffing,
• training,
• motivating,
• supervising,
• evaluating, and
• controlling the salesforce all involve
communication.
04/16/2024 55
 Cont
• The sales manager continuously transmits
information from upper management to the
Salesforce and from the Salesforce to upper
management.
• This information must be accurate, clear,
concise, and timely.
• An effective manager must have good oral and
written communication skills.

04/16/2024 56
 The Relationship between Marketing
and Selling
• Selling is defined as the personal or impersonal
process of assisting or persuading a prospective
consumer to buy a company’s product.
• More than any other profession, selling has the
most significant influence on the survival of the
world’s economy.
• Personal selling is parts of the marketing function
of a business and constitutes one of those
activities that together are commonly called the
marketing mix.
04/16/2024 57
 Cont
• The components of the marketing mix include:
products, prices, place (distribution channels)
and promotion which known as the 4Ps of
marketing.
• Personal selling is part of “and is
complemented by advertising and sales
promotion”.
• Personal selling is the personal communication
between a salesperson and a potential
customer or group of customers.
04/16/2024 58
 Cont
• The communication may be highly persuasive,
or it may be mostly informative.
• Although the audience of personal selling efforts
is smaller than with mass media advertising, the
interpersonal contact can make it the most
effective element of the promotional mix.
• For some products, such as industrial goods of
high unit value, personal selling is essential,
advertising may help with brand and product
recognition, but it will not close the sale. .

04/16/2024 59
 Cont

• Marketing is much wider than selling and

much more dynamic.
• There is a fundamental difference between the
two in approach as well as in the very
philosophy on which the two processes rest.
• Selling revolves around the needs and interests
of the seller whereas marketing revolves
around the needs and interests of the buyer.
• Selling starts with the existing products of the
corporation.
04/16/2024 60
 Cont
• On the other hand, marketing starts with the
customers, present and potential and views
business as a task of meeting the needs of the
customers by producing and supplying
products and services that would exactly meet
the needs of the customers.
• Selling seeks profits by ‘ the products on the
buyers.

04/16/2024 61
 Cont
• Marketing too seeks profits but not through
aggressive pushing of the products but by
meeting the needs of the customers and by
creating value satisfactions for them.
• A truly marketing minded firm tries to create
value satisfying goods and services that the
consumers will want to buy.
• What it offers for sale is determined not by the
seller but by the buyer.

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Session 5: Model of Sales Management

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 Sales Management Process

• The formulation of strategic sales program

• The implementation of sales program
• The evaluation and controls of salesforce
performance

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Formulation of Strategic Sales Programs
• The design of sales program requires five major
sets of decision.
• Personal selling strategy: adapting the personal
selling with the company’s environment and
integrate it with the other elements of the firm’s
marketing strategy.
• Account management policies: specifies who
salespeople should contact, what kind of selling
and customer service activities should be engaged
in, and how these activities should be carried out.
04/16/2024 65
 Cont
• Sales organization: structuring sales
organization to call on and manage various
types of customers as efficiently and
effectively as possible.
• Planning: this involves sales forecasting,
setting sales quota, and sales budget.
• Deployment: concerning with defining sales
territories, routing and scheduling the
salespersons time to cover the sales territories.
04/16/2024 66
 Implementation of the sales program
• Involves directing and motivating the
behaviors of salesforces.
• There are five factors influencing the
salespersons’ job behaviors and performance.
• Environmental variables: involves market
demand for the product being sold, the number
and aggressiveness of competitors, the health
of the economy, and other elements of the
firm’s marketing mix.

04/16/2024 67
 Cont

• Role perception: Before a salesperson can

perform his or her job adequately, he or she
must understand what the job entails and how
it is supposed to be performed.
• The activities and behaviors associated with a
particular job are defined largely by the
expectations and demands of other people,
both inside and outside the organization.

04/16/2024 68
 Cont

• Thus, a salesperson's job is defined by the

expectations and desires of his or her
customers, sales manager, other company
executives, and family members.
• Attitude: is individual’s personal characteristics,
such as personality traits, intelligence, and
analytical ability that influence a salesperson's
ability to perform the activities of his or her job.
• Skill levels: is ability or proficiency to perform
sales job effectively.
04/16/2024 69
 Cont
• Motivation level: is the ability and willingness
to expend effort on sales job.
• A salesperson cannot achieve a high level of
job performance unless he or she is motivated
to expend the necessary amount of effort.
• A person's motivation, in turn, is determined
by the kind of rewards he or she expects to
receive for achieving a given level of
performance.
04/16/2024 70
 Evaluation and Control of the Sales Program

• This phase involves the development of

methods for monitoring and evaluating sales
force performance.
• There are three major approaches that a
company might utilize in evaluating and
controlling the salesfroce to monitor sales
program performance.

04/16/2024 71
 Cont
• Sales analysis: is the detailed evaluation of
sales volume performance to detect strengths
and weaknesses.
• Sales volume can be monitored by each
salesperson.
• Sales figures are often also broken down:
• by geographic district,
• by each product in the line and
• by different type of customers.
04/16/2024 72
 Cont
• Cost analysis: the analysis of cost volume and
selling expenses to determine to the relative
profitability of a particular aspect of sales
operations.
• Behavioral analysis: Behavior is the tasks on
which the salesperson expended effort while
working.

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 Unit Two: Personal Selling and
Salesmanship

Session 6: Personal Selling VS Salesmanship

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 Personal Selling and the Relevant Situations

• Personal selling is the personal communication

between a firm’s salesforce and customers for
the purpose of making sales and building
customer relationships.
• Personal selling involves a two way flow of
communication between a buyer and seller,
often in a face to face encounter, designed to
influence a person’s or group’s purchase
decision.

04/16/2024 75
 Cont
• With advances in telecommunications,
however, personal selling takes place over the
telephone, through:
• video teleconferencing and
• interactive computer links between buyers and
sellers.

04/16/2024 76
 Relevant Situation for Personal Selling
• Product situation: Personal selling is relatively more
effective and economically in case:
a) When a product is of a high unit value like machine,
computers etc.
b) When a product is in the introductory state of its life cycle
and requires creation of core demand.
c) A product requires personal attention to match specific
consumer needs e.g. insurance policy.
d)Product requires demonstration e.g. most of the industrial
products.
e) Product requires after-sales service.
f) Product has no brand loyalty or very poor brand loyalty.
04/16/2024 77
 Cont

• Market situation: Personal selling situation

can be best utilized when:
a) A company is selling to a small number of
large-size buyers.
b) A company sells in a small-local market or in
government or institutional market.
c) Desired middle men or agents are not
available.
d) An indirect channel or distribution is used for
selling to merchant-middlemen only.
04/16/2024 78
 Cont
• Company situation: Personal selling is
relatively more effective and economical
when:
a) The company is not in a position to identify
and make use of suitable non- personal
communication media.
b) A company cannot afford to have a large and
regular advertising outlay.

04/16/2024 79
 Cont
• Consumer behavior situation: Personal selling
is more effective when:
a) purchases are valuable but infrequent.
b) consumer needs instant answers to his/ her
questions.
c) consumer requires persuasion and follow-up
in the face of competitive pressure.

04/16/2024 80
 Salesmanship
• According to National Association of
Marketing Teachers of America “Salesmanship
is the ability to persuade people to buy goods
or services at a profit to the seller and benefit
to the buyers.”
• Salesmanship is seller initiated effort that
provides prospective buyers with information,
and motivates them to make favorable
decisions concerning the seller’s products or
services.
04/16/2024 81
 Cont
• Simply, salesmanship is the skill of creating an
attitude in the mind of the buyer to buy a
product or service.
• Where as, personal selling is a much broader
concept than salesmanship.
• Salesmanship is only one aspect of personal
selling as it is one of the tools used in personal
selling

04/16/2024 82
 Is Salesmanship Art or Science?

• Salesmanship is both an art and a science.

• A traditional controversy concerns the sales
personality: whether good salespeople are born
or made.
• For decades, it was assumed that salespeople
had personality traits that ensured their success.
• They were assumed to be born with an
extroverted personality, a hearty enthusiasm,
and some kind of personality gift that
transmitted from parents.

04/16/2024 83
 Cont
• Today you know that salespeople can be
trained and developed.
• The salespeople can develop their product
knowledge, customer knowledge and customer
service.
• Training and motivation have become the
ingredients of successful sales performance.

04/16/2024 84
 Characteristics of Salesmanship
• Salesmanship is the ability to persuade: Modern
salesmanship does not rely on pressure tactics or
compulsion to clinch a sale.
• The customer is led to a favorable buying
decision through careful and imaginative
handling.
• The salesperson necessarily creates a favorable
impression on the prospective buyer’s mind by
presenting the benefits associated with the
product or service being offered for sale.
04/16/2024 85
 Cont
• Salesmanship benefits both the buyer and
the seller: Since the salesperson is the link
between the seller and the buyer, it is always
ensured that both the parties involved in the
selling process are satisfied.
• The salesperson ascertains that the seller earns
profit out of the sale and the customer derives
the desired benefit out of the purchase.

04/16/2024 86
 Cont
• Salesmanship stands for commercial honesty:
Modern salespersons seldom resort to cheating
customers in the selling process because it can
never create permanent customers.
• A good salesperson rather guides the
customers in buying goods or services, which
provides utmost satisfaction and value for the
money spent by them.

04/16/2024 87
 Cont

• Salesmanship aims at winning the buyers’

confidence:
• Modern salesmanship always aims at winning
the confidence of the buyer by
• persuading and
• educating them about the availability of
product and services, their special features and
their utility in satisfying their respective needs.

04/16/2024 88
 Cont
• Salesmanship aims at serving the producer,
distributor and consumer:
• In the world of stiff market competition,
salespersons facilitate sales at a profit for
producers.
• For distributor, the salesperson makes the
distribution process smooth and easy by creating,
maintaining and extending sales.
• Above all, the salesperson guides the vital
consumer in the proper and wise selection of
product or service.
04/16/2024 89
 Cont

• Salesmanship is an educative process:

• Salesmanship not only sales products or
services but also educate people about their
need as well as the way in which they could
satisfy those needs.
• Salesperson performs the function of
educating the customer about their needs and
the satisfaction thereof through the purchase of
goods and services.
04/16/2024 90
 Cont
• Salesmanship creates satisfied customers:
• Salesmanship in modern days aims at creating
satisfied customers, rather than just profit
generating sales.
• Once there is a satisfied customer, it is the
beginning of a long lasting relationship, which
can create many more sales in future.

04/16/2024 91
 Unit Three: The Qualities of a Successful Salesperson

Session 7: Personality Qualities of a Salesperson

04/16/2024 92
 Cont
• A sales personality is the sum total of positive
qualities that is sufficient to make good impression
on the customer.
• By using these qualities and abilities skillfully, the
salesperson is able to impress the customers
favorably.
• As a result, the customers are attracted towards the
product or service and ultimately purchase it.
• The qualities that make up the overall personality of
a salesperson can be grouped under the following
four categories
04/16/2024 93
 Physical Qualities

• The physical quality of a salesperson is of

crucial importance since it is the most visible
aspect of all the qualities. A good physical
appearance is a very big asset for the
salesperson as it creates a favorable initial
impression.
• Health: it is commonly said and belied that
“health is wealth”. Just like a person without
good health cannot enjoy life, a salesperson
without sound health cannot be successful in
his/her selling job.
04/16/2024 94
 Cont
• A sound health, in fact, helps the salesperson to
perform his/her duties perfectly, contributes to
the development of mental qualities and
provides a lot of self-confidence.
• Posture: It is the position in which one holds
his/her body while standing, walking or sitting.
• A good posture of an individual spreads the
message of confidence to one and all.
• Salespersons with good posture are able to
create favorable impression on the prospects.
04/16/2024 95
 Cont

• Voice: The voice of the salesperson should not

be too loud or too low or unpleasant.
• Normally, customer should be able to hear as
well as receive clearly what the salesperson is
trying to say.
• Hoarse, high pitched, shrill, commanding or
nasal voices generally irritate the customers.
• Each and every statement of the salesperson
should be clear and pleasant to the customers.

04/16/2024 96
 Cont
• Appearance: The first impression on the
prospects is created by the physical appearance
of the salesperson.
• A salesperson should possess a good, neat and
pleasing appearance which provides him/her a
lot of self-confidence to deal with the prospects.
• The appearance of the salesperson is judged
from his/her cleanliness, grooming and clothes.
• If the company has dressing code the salesperson
must obey the company code.

04/16/2024 97
 Mental Qualities
• The mental or the psychological qualities of the
salesperson are: alertness, imagination,
resourcefulness, observation, self confidence,
initiative, memory and cheerfulness.
• These attributes are the fundamental requirements
of successful salesmanship.
• Alertness: It is nothing but presence of mind
regarding what to say, how to say and on what
occasion. An alert salesperson is able to meet
objections, remove them, know the actual need and
serve to the best satisfaction of the customers.
04/16/2024 98
 Cont
• Imagination: is the ability of salesperson to
read the buyer’s mind. An imaginative’
salesperson is able to know the exact
requirements of such customers.
• This mental quality of reading the buyer's
mind is called empathy.
• This quality keeps the salesperson aware of the
buyer's requirement and assists the buyers to
choose and select such products which are
really needed by them.
04/16/2024 99
 Cont

• Self-confidence: In salesmanship, the need for

self confidence is seriously felt since the
salesperson is continuously subjected to
resistance, discouragement an opposition.
• Knowledge of the goods and services being
offered' for sale, knowledge of the customer's
needs and knowledge of the market builds the
self confidence of the salesperson, to face and
tackle selling effectively and efficiently.

04/16/2024 100
 Cont

• Initiative: It is nothing but the ability to work on

one's own without an guidance from anybody.
• Through initiative, a salesperson can sell more
products to old customers as well as create new
customers.
• An initiative oriented salespersons is able to
communicate the reactions and the suggestions of the
customers to the producers.
• Memory: It is the capacity to recognize customers,
recall previous meetings and recollect their specific
requirements and suggestions. The best way for
developing such memory is to keep record of various
important points for future references.
04/16/2024 101
 Cont
• Observation: It is keenly observing the changes
in, taste, style and fashion of people; activities
of the rivals and chances taking place in
political, economic and technological fields.
• In short having knowledge of what is happening
all around and for that should keep eyes and
ears open always.
• Resourcefulness: is the ability to think about
the alternatives and find out new ideas. This
ability helps the salesperson to be more creative
as well as confident.
04/16/2024 102
 Cont
• Cheerfulness: is being happiness or
joyfulness: A cheerful smile not only makes
the other person happy but also removes all
kinds of tension.
• By being cheerful, a salesperson is able to
attract more and more customers.
• A cheerful attitude induces the customers to
call the salesperson again and again..

04/16/2024 103
 Social Qualities

• A salesperson is required to deal with different

types of people in the society, persuade and
influence them in favor of products and
services, move in different circles, meet many
customers and get along with them.
• Therefore, salespersons must possess certain
social qualities.
• The social qualities which are essential for a
salesperson are:
04/16/2024 104
 Cont
• Ability and eagerness to meet people: is
natural tendency to meet people in a friendly
manner.
• A salesperson should develop the attitude of
mixing with people and adapt to customers of
differing age, sex, lifestyle, backgrounds, level
of education, beliefs and attitudes.

04/16/2024 105
 Cont

• Effective speech: It is the ability of a salesperson

talk pleasingly, convincingly and logically to
impress customers. The sales talk should be clear,
pleasant and persuasive.
• Courtesy: is being polite and considerate in
dealing with customers. It has been rightly pointed
out, 'courtesy costs nothing but pays much.
• Courteous words like 'thank you', 'excuse me',
'just a minute in appropriate occasions costs the
salesperson nothing. Rather, it creates a favorable
and lasting impression on the customers.
04/16/2024 106
 Cont
• Tactics: It is nothing but doing things correctly at
the right moment without offending others.
• A salesperson should speak properly and work
accurately to avoid causing dissatisfaction and
inconvenience.
• This quality can be developed by putting oneself
in place of customers.
• Cooperation: it refers to cooperation with
customers, fellow salesperson, superiors and
general public helps the salesperson in doing
better business and serve the firm in a' better way.
04/16/2024 107
 Cont

• Good mannner: Good manner simply means

being abstained from behaviors that can irritate
customers.
• Certain behaviors like
• cleaning the throat frequently while talking,
• chewing,
• scratching tables with fingers,
• swinging on the chair,
• propping the legs on the table,
• toying with the ring and so on generally irritate
customers.
04/16/2024 108
 Cont
• Patience and tolerance: is cooling down
while customers arguing the utility and price
of the product.
• The salesperson should try to listen patiently
to the arguments of the customers, their
objections regarding the products or services
and should try to explain his/her views in a
polite manner and remove the objections
through pleasing replies
04/16/2024 109
 Character Qualities

• The above mentioned physical, mental and

social qualities are found, more or less, in all
the human beings.
• However, there are certain moral qualities
which are also important in developing the
overall personality of a salesperson.
• Therefore, he should develop these qualities in
order to be successful in his/her selling job.
These qualities are:
04/16/2024 110
 Cont

• Loyalty: It means the desire or willingness to

obey, cooperate and work in the desired
manner.
• Loyalty of the salesperson can be viewed from
three angles, namely,
• (i) loyalty towards the organization,
• (ii) loyalty towards his/her customers, and
• (iii) loyalty towards his/her fellow employees.

04/16/2024 111
 Cont
• Determination: It is the will to go ahead and
succeed. Some customers in the beginning say
'No'.
• This should not be taken for granted as the final
opinion of the customer.
• By unlimited determination and perpetual
efforts, the salesperson can change 'No' of the
customer to 'Yes'.
• In difficult and frustrating situations, the
salesperson should not give up hope. Rather,
he/she should always be confident about
success.
04/16/2024 112
 Cont
• Industriousness: Hard work is another name for
industriousness and there is hardly any substitute
for hard work.
• The salesperson must work hard to achieve sales
targets, satisfy the customers and ultimately satisfy
him/her.
• A hard-working salesperson is never satisfied with
the prevalent sales volume alone rather works
towards improving the existing sales volume and
works hard for achieving new targets in selling.

04/16/2024 113
 Cont
• All types of dealings, the salesperson must be
true and frank about the product or service
he/she wants to sell. The proverb, 'honesty is the
best policy', holds well in salesmanship.
• Courage: It is natural that a salesperson may
commit mistakes and make false promises. 'To
err is human', and a salesperson remains no
exception to the same.
• This may sometimes lead to unpleasant
situations. The salesperson must have enough
courage to face such situations.
04/16/2024 114
 Cont
• Whatever be the situation, the salesperson
must face it boldly and courageously.
• Sincerity: helps in attracting new customers as
well as maintaining the existing customers.
• A sincere salesperson should be able to present
his/her products, ideas, company and himself
with a lot of confidence.

04/16/2024 115
• Session 8:Knowledge of the Product

04/16/2024 116
 Cont
• Besides possessing a good sales personality,
the salesperson is expected to have a thorough
knowledge of the products or services he/she
is selling.
• It is rightly argued that personality without
knowledge of a product is a body without soul.
• There is hardly a precise answer as to how
much information a salesperson should have
about a product, because knowledge has no
limits.
04/16/2024 117
 Cont

• Similarly, there is also no limit to a

salesperson’s knowledge.
• Therefore, it would be proper to say that the
salesperson should know as many things as
possible but should be thorough with the
knowledge connected with the sale of a
product.
• Some of the important aspects and features
which the salesperson should know about
his/her products are:
04/16/2024 118
 Cont
• All technical and non technical details of
composition and construction, use, utility,
services offered, price, color, packing, design,
and weight and so on.
• It also includes knowledge of the organization,
knowledge of competition, knowledge of
government policy, knowledge of the market
situations.

04/16/2024 119
 Importance of Product Knowledge

• The importance of product knowledge in modern

marketing is quite significant.
• A thorough knowledge of the product makes a
salesperson efficient and successful in his/her job
and strengthens his/her self confidence.
• Up to date knowledge of the own product as well
as both existing and forthcoming, identical rival
products are essential for the salesperson to sell
efficiently in competitive marketing environment.
• Following are the important reasons for which
product knowledge becomes essential for the
salesforce.
04/16/2024 120
 Cont
• Personality is not enough: Sales personality
without thorough product knowledge is just
like a body without a soul.
• As a body cannot live without a soul, a
salesperson having excellent sales personality
cannot ensure sales without thorough
knowledge of the product that he/she intends
to sell.

04/16/2024 121
 Cont

• Ensures better sales: While selling, the

salesperson generally gives more stress on the
benefits and utilities of the products and
services he/she intends to sell.
• Unless he knows the product in detail, he/she
cannot provide essential information about the
product or service and its utilities usually
enquired by the customers.
• If sufficient product knowledge is lacking with
the salesperson, customers may not be
convinced about the product.
04/16/2024 122
 Cont
• Misleading and inaccurate information about
the product weakens the confidence of the
buyers and thereby it affects the sale
negatively. Thorough product knowledge helps
the salesperson to make customers understand
how the product will satisfy needs of the
customers. Thus it, ensures faster and better
sale of products and services.

04/16/2024 123
 Cont
• Strengthens self confidence: A thorough
knowledge of the product or service he is
selling helps the salesperson to speak with self
confidence and courage. It makes selling a lot
more easily and helps in establishing a proper
attitude towards his/her work.
• He can confidently talk to the customers if
his/her knowledge about the product is perfect.

04/16/2024 124
 Cont
• Detailed knowledge about the product also
helps the salesperson to remove doubts and
suspicions about the products from the minds
of the customers.
• Makes selling a pleasant task: Unless the
salesperson has a detailed knowledge of the
product, he cannot get job satisfaction from
his/her work.

04/16/2024 125
 Cont
• He will naturally feel that something is
lacking. If his/her knowledge about the
product is perfect he/she finds the sales job
easier as well as enjoyable.
• Therefore, a salesperson is expected to know
every detail of the product he/she is selling or
is expected to sell.
• Well informed salespersons therefore get
greater pleasure and satisfaction and achieve
better sales volume.
04/16/2024 126
 Cont
• Ensures satisfactory meetings of objections
and enquiries: Now a days most of the buyers
are more or less well versed about the products
and their nature, function, design, type, etc.
while a few others have limited knowledge
about products through newspapers, magazines,
television, etc.
• As a result, they make enquiries about the
nature, function, design, type, etc. from the
salesperson. Unless the buyers are provided with
the information about the products they intend to
know, they do not feel satisfied.
 Cont

• The salesperson should be well equipped with

all the technical as well as no technical
knowledge of the products and services in
order to satisfy them.
• This enables the salespersons to meet queries
from the buyers and convince them.
• Enables to withstand competition: Modern era
is the age of competition. A number of
manufacturers compete with one another to
sell identical products in the market.
04/16/2024 128
 Cont
• Such an environment of stiff competition,
success in selling depends on the up to date
detailed technical as well as non technical
knowledge of the products.
• A competent salesperson generally remains well
equipped with information about the product
he/she sells and the product of the competitors,
like a warrior in the field of selling.
• As a result, the salesperson is able to sell in a
competitive market.
 Cont
• Projects perfect images of the product: An
ignorant salesperson is not able to project the
perfect image of the product before the potential
buyers because he/she has insufficient product
knowledge. By his/her guesswork, general
statements and bluffs, the salesperson will try to
confuse the buyers.
• On the other hand, a perfect knowledge of the
product helps the salesperson to present a clear
picture of the product in the minds of the buyers. A
salesperson thus is able to win the buyer’s
confidence and consequently a solid business
relationship is established.
 Cont
• Multiple Earnings: With complete product
knowledge the salesperson is able to sell more.
• Earnings of the salesperson usually depend on
the sales volume.
• Thus, with the increase in the sales volume
and profit of the organization, the salesperson
is also able to increase his/her own earnings.
• In short, a salesperson with thorough product
knowledge is able to sell more and thus earn
more.
 What the Salesperson Should Know About a
Product?
• Some of the important aspects and features
which the salesperson should know about
his/her products are:
• Knowledge of the organization: A
salesperson is necessarily a representative of
the organization in which he/she is employed
and thereby represents the organization.
• While selling, the salesperson not only sells
the utility and service of the products to the
customers but also ensures the credibility of
the organization.
 Cont
• Therefore, the salesperson should have a
detailed and up to date knowledge of his/her
own organization which will help him in
projecting its image in its right perspective
before the customers.
• In fact, he/she should know everything about
his/her organization.

04/16/2024 133
 Cont
• Knowledge regarding the history and
development, ownership pattern,
manufacturing capacity, product structure,
sales volume, number of customers, number of
departments, managerial policy, research and
development programs, social contribution,
future expansion and diversification plans, and
such other things helps the salesperson to
present the right image of the firm before the
customers.
 Cont
• Knowledge of the product: Irrespective of
the type of product being offered for sale,
accurate and detailed knowledge is essential
for the sales force in order to sell successfully.
• Generally, a salesperson is expected to have an
accurate and detailed (both technical and non
technical) knowledge about the following
aspects of the product.
 Cont
• Background: The salesperson is expected to
know the background of a product. He/she
should know about the origin and history, past
modifications, present position, the future plan
or development, etc.
• Composition: The composition and construction
of a product have a direct influence on its utility
and durability. Therefore, the prospective buyer
may ask questions and make queries regarding
the composition and construction of a product.
 Cont
• Use and performance: The major and minor uses of
the product and its performance should be known to
the salesperson. Such product knowledge enables
the salesperson to present the product in an
impressive manner.
• For example, while selling a pressure cooker, the
salesperson has to explain as to how the user is
going to be benefited through saving of time as well
as fuel besides preserving the important vitamin
contents of the food. In addition, the working,
operational and upkeep details also must be
explained.
 Cont
• Service and guarantee: A salesperson is also expected
to know the specific services and guarantees offered
along with the product.
• Durable products like washing machines, refrigerators,
cars, scooters, motor cycles, etc. are offered free
services from the dealers up to a certain period.
• The salesperson must know the terms and conditions
of such free servicing. Similarly, guarantee of free
replacement of parts of some products up to a
stipulated period is also offered by the dealers. The
amount, kind and time limit of these services and
guarantees must be known to the salesperson.
 Cont
• Knowledge of competing goods: The
salesperson should have a current and up-to-date
knowledge of competitors’ goods and substitutes.
• For this the salesperson has to make a
comparative study of other similar products and
their selling points.
• A salesperson should be aware of the strong
advantages and disadvantages of his/her product
in comparison with competing and substitute
products.
04/16/2024 139
 Cont
• Knowledge of market conditions: Along with the
product information, the salesperson should also have
knowledge of the market conditions. In the present
era of ever changing market conditions, up-to-date
information regarding market is highly essential.
• The salesperson should keenly observe the changing
market conditions and act accordingly. The changes
in fashion, style, taste, habit income, marketing
channel, etc. should be closely observed, analyzed,
and necessary information should be provided to the
organization. The salesperson himself has to act
according to the changing market environment.
04/16/2024 140
 Cont
• Knowledge of government policy: Government policy
with regards to production and distribution changes
frequently. Success in selling, therefore, depends to a great
extent on the knowledge of the current government
policies. The salesperson should have the latest information
about taxes which vary from product to product.
• Government policy regarding price control and distribution
policy also affects sales. Therefore, on the basis of a
thorough and up-to- date knowledge of taxation and other
government policies, the salesperson can reply to the
complaints and objections raised by the customers
efficiently and thereby, sell the products with least
difficulty.

04/16/2024 141
 Cont
• Knowledge of competition: Competition is an
essential feature of the modern marketing
environment. It also poses a serious challenge to the
very survival of the business. Therefore, the
salesperson should have an up to date knowledge of
his/her competitive position in the market.
• The salesperson should also have knowledge about the
strong and the weak points of his/her products in
comparison with those of the competitors. He/she
should also have information about the price and
utility of products similar nature and having identical
use.
04/16/2024 142
 Source of Product Knowledge
• A salesperson is usually expected to sell a
number of articles.
• Therefore, it becomes quite difficult to know
every detail of the product from a particular
source.
• Rather, he has to gather the required
information about the products he is dealing
with from various sources.

04/16/2024 143
 Cont

• Personal experiences: The first and perhaps the

most important source of acquiring product
knowledge is the personal experience of the
salesperson. As the salesperson becomes more
and more familiar with his/her work, he becomes
increasingly aware with the possible questions
that buyers raise most often and also the
convincing answers for the same.
• In other worth, experience of handling customer
queries makes the salesperson competent in
providing convincing answers.
04/16/2024 144
 Cont
• Besides, the salesperson can gather a lot of information
about a particular product by using it personally.
Sometimes, he can convince the buyers
• By stating that he himself is a satisfied user of the
product.
• Libraries: Product information can also be gathered by
going through some related books in libraries.
• In recent years, there are many business and trade
journals who conduct consumer surveys at regular
intervals.
• Such surveys cover different aspects of consumer
behavior and provide valuable information. Library
04/16/2024 145
 Cont
• Trade journals: These journals usually provide
detailed information about new products,
improvements of old products, new innovations,
etc.
• The salesperson has to go through these journals in
order to gather knowledge of the product category.
• He/she can also gather information about
innovations and new products from these trade
journals.

04/16/2024 146
 Cont
• Senior and Fellow salespersons: A great deal of
product knowledge can be acquired by consulting the
employer, senior salespersons and fellow
salespersons. Regular discussion with them provides
valuable product knowledge for the salesperson.
During probation period and training sessions, senior
salespersons and sales manager provide all
information about the products to the juniors.
• Sometimes, wholesalers, retailers and even friendly
customers provide important product information to
the salesperson. Thus, colleagues, customers,
suppliers, retailers and wholesalers are a rich source
of product knowledge for the salesperson.
04/16/2024 147
 Cont
• Manufacturers’ literature and assistance:
Manufacturers and dealers also try to assist the
salesperson in acquiring product knowledge through a
number of means. Followings are some of the
important ones.
A. Sales manuals: Sales manuals are generally published
by the manufacturers for the purpose of reference by the
sales force.
• They contain information about the products, the
procedure to be followed in selling the products,
selling reports, credit facilities, discounts, delivery
facilities, etc.
04/16/2024 148
 Cont
B. Sales bulletins: In order to provide additional and
up-to-date information about the products, sales
bulletins are published by the manufacturers.
• Such sales bulletins are published at regular
intervals to provide supplementary information
over and above those provided in the sales manual.
• These bulletins contain additional and up-to-date
information regarding the products, its selling
points, its improvements and additions, changes in
market policy, etc.

04/16/2024 149
 Cont
C. Salesperson’s portfolio: While sales bulletins and
sales manuals are meant exclusively for the company’s
sales force, salesperson’s portfolio (also known as the
sales portfolio) are usually handed over to the dealers.
• Sales portfolio are usually prepared in a book form
containing instructions and devices regarding the
method of display, advertising materials, testimonial
letters, etc. for the benefit of the retailers.
• Actual photographs of window display and
advertising materials drafted exclusively for the
retailers are also given in a sales portfolio.
04/16/2024 150
 Cont
D. Visit to factories: Most often manufacturers arrange the
visit of the sales force to the factories to gain first- hand
product knowledge. Such visit to the factories enables the
salesperson to obtain a great deal of information about the
products.
• Through such visit the salesperson comes to know in
detail about the manufacturing process, raw material
used, standard of quality control, packing, etc. in details.
• Salespersons living at distant places often visit
showrooms of either the manufacturer or the wholesaler
to acquire detailed product knowledge.

04/16/2024 151
 Cont
E. Meetings and conferences: Manufacturers arrange
meetings and conferences of the salespersons at
regular intervals. These periodic meetings and
conferences also help the sales force in enhancing
their product knowledge through interactions,
discussions, and deliberations.
• In such meetings and conferences, senior
salespersons and sales officers deliver lectures and
demonstrate important features of the products.

04/16/2024 152
 Cont
F. Motion pictures and visual aids, etc.: Some
manufacturers use motion pictures, video clippings
and slides to educate their salespersons about the
product features, uses and benefits etc.
• Though this method is comparatively expensive, it
is quite useful for the salesperson to know the
salient features and various uses of the product.
• Sometimes, when new products are introduced
this method is used to provide product knowledge.

04/16/2024 153
 Cont
G. Education and training: In order to improve the
selling skills of the existing sales force, the manufacturer
often arranges education and training programs.
• Such orientation programs are usually conducted by
experienced professional people who equip the sales
people with new techniques and methods to improve
their sales performance.
• Salespersons are also offered correspondence courses
to update their product and organizational knowledge
as well as selling skills.

04/16/2024 154
 Cont
H. Questionnaire system: Often manufacturers attempt
to brush up and test the product knowledge of their
sales force. They prepare a questionnaire about the
various aspects of their products and the salespersons
are required to answer these questions.
• The best answer giving salesperson is given a prize
and such events are provided wide publicity.
• In order to prove their efficiency and competency for
such occasions, the salespersons keep their product
knowledge up-to-date.
04/16/2024 155
 Cont
I. Traveling demonstrators: Some manufacturers
appoint demonstrators to assist the salespersons in their
demonstration.
• These companies appointed demonstrators visit
branches and showrooms at regular intervals for
guiding and assisting the salespersons in effective
demonstration and impressive presentation to the
consumers.
• These traveling demonstrations undertaken by
professional people considerably enhance the selling
skills and product knowledge of the salesperson.
04/16/2024 156
Session 9: Buying Motives of Customers

04/16/2024 157
 Cont
• Buying motives are the set of thoughts, feelings,
emotions and instincts which motivate the buyer
to buy an article. The buyer purchases a product
or decides to purchase a product usually
influenced by a set factors. The buyer’s decision
of when, where, what, and how much to buy are
based these motives.
• Buying motives can be classified on the basis of
product and patronage. Product buying motives
are those which are attached to the product like
durability, economy, fashion, comfort, habit, etc.
04/16/2024 158
 Cont

• On the other hand, patronage buying motives

are those which, more or less depend on the
buyers.
• There are certain factors like price, credit
facilities, behavior, appearance of a shop,
which attract the consumers to buy from a
specific dealer.

04/16/2024 159
 Rational Product Buying Motives

• Generally, people are rational in buying i.e.

selective, with due consideration to factors like
price, quality, durability, etc.
• Consumers usually purchase products by
testing, comparing and observing the products
keenly.
• The rational buying motives are based on wise
thoughts, reasoning and judgment.

04/16/2024 160
 Cont

• However, there are certain rational buying

motives which are product related.
• They are:
• Durability: Almost all the people like to
purchase products having the longest possible
life span and least upkeep requirements.
• Unless they are satisfied by the product’s
durability, they hardly purchase products like
cars, two wheelers, sewing machines, washing
machines, vacuum cleaner, etc.
04/16/2024 161
 Cont

• Suitability: means that which fits in well with

the needs and requirements of the customers.
• Individual requirements differ widely and
therefore customers pay much attention ‘to the
factor of suitability.
• As a part of rational buying motive, consumers
always give a serious thought to the
appropriateness of a product or service,
according to the need.

04/16/2024 162
 Cont

• Multiple uses: A rational buyer always takes

into account the additional benefit one will
derive out of the article to be purchased.
• In other words, he always wants to get
maximum benefit out of the proposed
spending.
• For example, he prefers a sofa cum bed instead
of an ordinary sofa for its versatile use.
• Similarly, products like two in ones, folding
furniture are well accepted by the consumers
for their multiple utility.
04/16/2024 163
 Cont

• Economy: Economically motivated consumers

usually visit several stores, make a
comparative study of different products
available and choose a particular product
which gives best value for their money.
• Safety: People are, generally afraid of losing
their health, wealth and life and can readily do
anything, which guarantees safety. Human
beings by their nature can anticipate certain
level of risks and take steps to get rid of them.

04/16/2024 164
 Cont
• The motive of safety plays an important role in
buying articles like tonics, vitamins pills, iron
chest and services like insurance policies, savings
bank account, hiring lockers in banks, etc.
• Similarly, fear of losing health has induced many
people to purchase home exercising machines,
membership in health clubs, etc.
• Convenience: Some customers prefer
convenience attached to a particular product
though it may be a bit costly.

04/16/2024 165
 Cont
• People, therefore, prefer luxury, goods which
are convenient for them and provide comfort
and status at the same time.
• This is an important buying motive for selling
goods like pressure cookers, grinders, washing
machines, refrigerators, air conditioners, pocket
calculators, personal computers, cell phones,
automobiles, etc.
• These goods are popular among customers
because of their appeal to the buying motive of
convenience
04/16/2024 166
 Emotional Product Buying Motives

• The consumer at times is driven by emotions

while buying a product or a service.
• In such cases, consumers hardly make
intelligent or right decisions.
• Their decisions, in such cases, are affected or
influenced by emotions based on feelings or
passions.
• Following are certain factors of emotional
buying motives:
04/16/2024 167
 Cont
• Pride: Human beings by their sheer nature
always wish to be admired and appreciated in
the society. They invariably try to keep
themselves above others in terms of social
status, activities and achievements.
• Fashion or imitation: Fashion or imitation is
closely related to the motive of pride. People
generally try to copy or imitate others,
particularly, movie stars, sportspersons,
business personalities, politicians, etc.
04/16/2024 168
 Cont
• Sex and romance: Men want to be attractive to
women and women want to attract them.
• The appeal of sex and romance is very
important in case of articles like fancy dress,
cosmetics, travel, clothing and automobiles.
• It is natural that buyers want to love and be
loved by the opposite sex.

04/16/2024 169
 Cont
• Love and affection: Most human beings have
an inborn tendency to care for their near and
dear ones.
• Affection and love for family, society, and
country often drives consumers to buy certain
articles.
• Affection for children is mostly responsible for
buying things, like baby food, chocolates,
toys, dresses, life insurance policies, etc.
04/16/2024 170
 Cont
• Habits: Habits once made become the basic need
and repetitive act on the part of the individuals.
• Knowingly or unknowingly, most of the activities
of people from dawn dusk are based on habits.
• Habits like smoking, cigarettes, hard drinks of a
particular brand, stitching clothes at a particular
place, cutting hair at a particular saloon, etc. very
often provide the necessary stimulus for the
consumer to buy articles or services.
• It always takes time to form habits. Once
formed, habits rarely change.
04/16/2024 171
 Rational Patronage Buying Motives
• Patronage motives refer to the choice of the buyer
to purchase from a particular seller.
• Sometimes customers patronize a store or shop,
driven either by their emotions or rational choice.
• There are certain factors which are responsible for
such a choice of the buyers.
• A large number of buyers, by their rational choice,
prefer to buy from a particular shop or store.
• They apply their judgment and intelligence before
patronizing a particular shop.

04/16/2024 172
 Cont
• They always measure the benefits of extending
their loyalty to a particular shop or store. The
rational patronage motives include the
following:
• Credit facilities: Some rational buyers patronize
a particular shop or dealer because of the liberal
credit facilities offered by that shop or the
dealer. Sometimes, costly and durable goods are
offered on installment basis by certain stores in
order to attract the consumers.
• As a result, customers patronize those shops in
order to avail such facilities.
04/16/2024 173
 Cont
• Close location: Close location is also an
important reason for a shop to be patronized.
• Some customers prefer a shop to others
because of its proximity to their residence.
Shops and stores so located are easy to reach
and ultimately save a lot of time for the
• Treatment: Generally, people prefer to
patronize a particular dealer or shop because
they receive warm and cordial treatment from
that dealer.
04/16/2024 174
 Cont
• Wide choice : Varieties enable consumers to
pick up the goods best suited for their
requirements.
• Therefore, customers patronize such shops
which offer a wide range of varieties.
• Replace defective parts and repair articles at
concessional rates, accommodate complaints
and so on.
• Such provisions go a long way in establishing a
harmonious relationship with the consumers.
04/16/2024 175
 Emotional Patronage Buying Motives
• Emotional patronage depends upon the mentality
of consumers. Sufficient reasons or adequate
explanation cannot be given for such a patronage.
• In almost all such cases, the customer hardly
applies intelligence and rational judgment while
making purchases.
• Rather, he is carried away by emotion and
impulse.
• Following are some of the patronage motives
based on emotions.
04/16/2024 176
 Cont
• Appearance: Some customers are attracted to a
particular shop or store by its appearance. The
appearance mainly constitutes the decoration of
the shop. It actually becomes a case of love at
first sight.
• Recommendations: Customers also visit a
specific shop on the recommendations of their
friends and relatives. Usually, these friends and
relatives happen to be the satisfied customers of
that particular shop. As a result, they
recommend the store to others so that they can
also avail the same types of facilities.
04/16/2024 177
 Cont

• Imitation: Mostly, customers are motivated to

follow others, particularly, the elites, the
fashion leaders, the opinion leaders and so on.
• Most often, it seems easier and safer for many
customers to go to a particular shop imitating
the others.
• This motive is stronger in case of fashion
oriented and style based products and services.

04/16/2024 178
 Cont
• Prestige: There are a number of customers who
possess adequate wealth, and therefore
sufficient purchasing power.
• For them, the most important buying motive is
the prestige and the feeling of superiority.
• The motive of prestige remains quite strong
with them.
• As a result, they often purchase goods which
they might not need at all at that time.
04/16/2024 179
 Chapter 4: Personal Selling Process
• Selling process refers to a sequential or series of
actions undertaken by the salesperson to convert a
prospect into a customer. The most commonly
accepted stages of the sales process are:
• Prospecting and qualifying
• Pre-approaching.
• Approaching
• Sales Presentations
• Determining and Meeting Objections
• Closing Sales
• Follow-up of Sales
04/16/2024 180
 Cont
• It should be noted that these stages are not
independent.
• Rather, all the stages are closely interlinked.
• The salesperson cannot afford to miss or
ignored a step. Instead, he has to move step-
by-step.

04/16/2024 181
 Session10: Prospecting and
Qualifying

04/16/2024 182
 Prospecting

• Searching out for individuals and organizations

who are in the need of the products and likely to be
the probable buyers or potential customers is
known as prospecting.
• A prospect is a qualified person or organization
that has the potential to buy your product or service.
A prospect should not be confused with a ‘lead’.
• The name of a person or an organization that might
be a prospect is referred to as a lead. A lead can
also be referred to as a ‘suspect’, indicating the
person or organization is suspected.
04/16/2024 183
 Qualifying Prospects
• Once the salesperson has identified potential
customers, he or she must qualify them to
determine, if they are valid prospects.
• Unless this is done, time and energy is wasted in
trying to sell to people who cannot or will not
purchase the product or service.
• There are several factors to consider while
qualifying a prospect.
• One approach to qualifying often called
AMENA (Authority, Money, Eligibility, Need
and Accessibility)
04/16/2024 184
 Cont
• Authority to buy: Does the prospect have the
authority to make commitment? This is a
particular concern when dealing with
corporation, government agencies or other large
organizations.
• Even while selling to a married couple; it may
be difficult to identify who actually makes the
purchase decision. A salesperson must identify
the key decision maker early to economize on
selling time more effectively.
04/16/2024 185
 Cont
• Money (Ability to buy): Does the prospect
have the money or resources to purchase a
product or service?
• Ability to pay is very critical factor in
qualifying a prospect. The salespeople must be
familiar with financial resources of a prospect.
• The salesperson has to observe that whether the
person in question is capable of paying and
willing to spend the amount.
04/16/2024 186
 Cont
• Eligibility to buy: the salesperson should see whether
the prospect is eligible to purchase or not. For instance,
some products like gun, liquor, explosive items need
license or permit. The salesperson of these items needs
to be convinced that the prospect is eligible to buy
before approaching him/her.
• Need to buy: Before approaching a prospect, the
salesperson should ascertain whether the prospect needs
to buy a certain product. If a person does not want the
product, she/he is not a good prospect. The needs of
customers vary according to their income, responsibility
and standard of living. The salesperson has to study this.

04/16/2024 187
 Cont
• Accessibility: there are certain prospects that
live in remote corners and distant places. The
salesperson should ensure whether the
prospect can be approached with normal
expenses or not.
• If it needs high expenditure, then it is said that
the prospect does not have accessibility. If the
prospect is unapproachable, the salesperson
should also forego such prospects.
04/16/2024 188
 The Importance, Sources and Methods of
Prospecting
• Importance of prospecting
• There are two reasons that a salesperson must look
constantly for new prospects: (a)to increase sales and (b)
to replace customers that will be lost over time.
• Therefore, the salesperson has to develop an effective
plan of prospecting for increasing the sales volume of the
organization. Prospecting is beneficial, both for the
organization as well as the salesperson. Successful
prospecting results in enhanced sales for the organization
on the one hand and incremental income for the
Salesforce on the other hand.
04/16/2024 189
 The sources of prospects
• Sources of prospects can be many and varied or few and
similar, depending on the service or product provided by the
salesperson. Basically, these sources can be categorized as
follows:
• Personal acquaintances
• “Bird dogs”; who are people who know about area resident,
such as a real estate salesperson, bank clerk, etc.
• Newspaper leads
• Lists and directories, such as the telephone directory.
• Old accounts.
• People selling different products might not use the same
sources for prospects. The above sources of prospects are used
in different instances.
04/16/2024 190
 Methods of Prospecting

• Cold canvasing or Cold turkey method: This

method is based on the law of averages.
• Initially, the salesperson contacts as many leads as
possible; recognizing that a certain percentage of
people approached will buy.
• There is normally no knowledge about the
individual or business called on. The salesperson
does not know their needs, likes, and dislikes,
financial conditions etc, of the prospects in
advance.
04/16/2024 191
 Cont

• Endless Chain Referral Method: In this

method of prospecting, after every sale, the
salesperson asks satisfied customers for a list
of several friends who might also be interested
in the product.
• The salesperson then approaches these
prospects, attempts to sell them and also asks
them for the names of other potential prospects

04/16/2024 192
 Cont
• Using Exhibitions and Demonstrations: Exhibitions
and demonstrations frequently take place at trade
shows and other types of special interest gatherings.
• Many times, related firms will sponsor a booth at such
shows, and staff it with one or more salespeople.
• As people walk up to the booth (show place) to
examine the products, a salesperson has only a few
minutes to qualify leads, get their names and
addresses so as to later contact them at their homes or
offices for demonstrations.
04/16/2024 193
 Cont
• Center of Influence Method: This method involves
finding and cultivating people in a community or
territory who are willing to cooperate in helping to find
prospects.
• Under this method, the salesperson takes the help of
influential persons for creating new customers. The
influential persons include doctor, lawyer, councilor,
banker, teacher, social worker, businessperson etc.
• These persons generally are influential personalities who
have many friends and known person in the society. With
the help of these persons, the salesperson can find
persons who are in need of his products and services.
04/16/2024 194
 Cont
• Direct mail and Telephone Method:
• Under this method, the salesperson approaches the former
buyers and present users directly through liters or by phone
call and informs them about the new and the latest
development in the exiting product or arrival of new products.
• In this method of prospecting telephone directory play an
active and important role by providing information about the
prospects to the salesperson.
• Direct mail or telephone method is considered to be one of the
best and suitable methods to introduce new product in the
markets.
• Using of telephone prospecting to contact a large number of
prospects across a vast area can be far less costly than the use
of a canvassing method.
04/16/2024 195
 Cont
• Telemarketing:
• It is a marketing communication system using
telecommunication technology and trained
personnel to conduct planned, measurable
marketing activities directed at targeted groups
of consumers.
• Telemarketing is not only for prospecting.
• It is also great for maintaining contact with
regular customers and providing salespeople
with up-to-date information.
04/16/2024 196
 Cont
• Personal Observation Method/ eye and ear
method:
• A salesperson can often find prospects by
constantly watching what is happening in the
sales area by using observation method.
• Office furniture, computer, and copier
salespeople look for new business construction
in their territories.

04/16/2024 197
 Ont
• Company’s Records: The Company’s records
usually contain the names of past and present
customers.
• By looking into such records, the salesperson can
meet those customers personally and try to renew
the sales.
• No matter what prospecting method used, it is
always important for a salesperson to keep eyes and
ears open for information on who needs the
product.
04/16/2024 198
 Session 11: Pre-approaching and
Approaching

04/16/2024 199
 Cont
• Pre-approaching: Preparation to meet with the
prospect. The pre-approach step includes all the
information gathering activities necessary to learn
relevant facts about the prospect and his or her needs
and situations.
• The prospecting job is completed when the salesperson
feels that he/ she knows enough about the concerned
people and there is a chance of selling to them.
• It is at this point that the pre- approach begins.
However, it is really difficult to point out clearly whine
the job of prospecting ends and the job of pre-approach
begins, since selling is a continuous process.

04/16/2024 200
 Cont
• Therefore, there is no clear-cut demarcation
between prospecting and pre- approach.
• Pre-approach means getting more detailed
information about the potential buyers.
• At the pre-approach stage, the salesperson tries
to collect some more information in addition to
the background information about the
prospective customers include their needs,
habits, preferences, behavior, economic status,
likes and dislikes of the prospect, and nature of
the prospect, etc.
04/16/2024 201
 Cont
• Approaching: Meeting with the prospect
• “Approaching” means meeting the prospect in person
to gain attention and serve the willingness of the
prospect.
• At this stage of the selling process, the salesperson
comes face to face with the prospect, tries to
understand the prospect better, must be able to attract
the attention of the prospect and get interested in the
product.
• He/she has to try the best level to convince the
prospect in favor of the product and ultimately win
over the prospect.
04/16/2024 202
 Cont
• By approaching the prospect, the salesperson aims
(i) to gain favorable attention from the prospect
and (ii) to serve the willingness of the prospect to
purchase the product. An approach can only be
completed when the above two objectives are
fulfilled.
• Besides, there are certain more objectives of the
approach like arousing the interest of the prospect,
persuading the prospect into purchasing the
product.
04/16/2024 203
 The Techniques in Approach
• The following are some of the important methods through
which the salesperson approaches the prospect.
• The introduction Approach The introduction approach is the
most common and effective method of approaching frequently
used by the salesperson during his visit to the prospect.
• Most of the time the salesperson starts with introductory
sentences like
• “Good Morning Mr. So and so, I am …”
• “I am Mr. …from Company….”
• “Hi! I am Mr. … from … May I have the honor of talking to
you for a while?”
• This is the most appropriate method used for big and reputed
organization. After these and other similar introductory
phrase, the salesperson talks about his business proposition.
04/16/2024 204
 Cont
• The Curiosity Approach: Some salespeople
make an appeal to the curiosity instinct of the
prospect and get immediate attention.
• While seeking an interview with the prospect,
the salesperson writes curious sentence either
on the business card or as a slip to attract the
prospect’s attention.
• For example, “will you give me a few minutes
of your precious time in solving a business
problem?”
04/16/2024 205
 Cont
• The Product Approach: In the product
approach, the salesperson hands over the
product to the prospect so that the prospect
gets an opportunity to examine the product.
• This usually is applied when the product is
new, attractive, and popular and eye catching.
• By handling the product, the prospect’s
interest is satisfied and he may place an order.

04/16/2024 206
 Cont
• The Consumer Benefit Approach: In this method,
the salesperson explains the utility that the prospect
will derive out of the purchases.
• For example, the salesperson may state: would you
like to increase your office efficiency by 10%? Or
would you like to cut down your electricity
consumption by 21% etc.
• These statements generally create interest in the
prospect, because the salesperson offers some
benefits.
04/16/2024 207
 Cont
• The Premium Approach: Under this method, the
salesperson comes in contact with the customers, hands
them small gifts like calendars, diaries, pens, pencils,
ashtrays, etc. These small presentations usually impress
the prospects most and create goodwill about the firm,
the salesperson and the product.
• The Shock Approach: Under this method of approach,
the salesperson prefers to shock the prospect by
indicating the element of fear of old age, death,
burglary, sickness, security, etc. Salespeople of life
insurance, burglary insurance, fine insurance, etc. use
this method exclusively.
04/16/2024 208
 Cont
• The Compliment Approach: Appreciation and
compliments are best tools to open an interview. Some
salespeople use compliments and praise the prospects
while approaching the prospects. However, there should
be a minimum and maximum limit to such compliments.
• The Survey Approach: Sometimes the salesperson
conducts real surveys about the product before
approaching. Thus, they are able to indicate customers’
needs and create interest in the sales talk. As they know
in advance, the needs of the prospect are able to present
the sales proposition in an effective manner.

04/16/2024 209
 Cont
• The Showmanship Approach: Under this method, the
product and the sales proposition is presented in a
dramatic manner. Certain prospects appreciate
showmanship. This is why the salesperson can present
his proposition in a dramatized manner when the
situation demands it.
• The Question Approach: Under this approach, the
salesperson approaches the prospects by putting
deferent questions for gaining an interview. This
method is gaining popularity nowadays. This method
becomes more effective when used along with other
approaches like consumer benefit approaches and
curiosity approach.
04/16/2024 210
 Principles in Approaching
• There are certain fundamental principles of a good
approach.
• Though, the choice of the approaching technique is
largely dependent on the situation facing the
salesperson, the product or the prospect.
• The following principles are essentials of a good
approach.
• Making Appointments: While arranging for
interviews, the salesperson should make it at an
appropriate time convenient to the prospects.
04/16/2024 211
 Cont
• Avoid pressurizing: This is to say that the salesperson
must make an effort to relax his prospect. At this stage
the salesperson has to deal with the emotional aspect of
the prospect. The salesperson can tell the prospect that
he/she has come only to put forward his/her sales
proposition.
• Don’t forget business cards: Nowadays it has almost
become a necessity to use business cards.
• Some experts point out that the business card should be
given to the prospect soon after the interview. Some
others say that the salesperson should send it in
advance and use it as a method of gaining an interview.
04/16/2024 212
 Cont
• Maintain physical quality: The appearance of a
salesperson is of much significance in approach.
• The first appearance that a salesperson makes on
customs is the most important impression.
• Avoid Early Dismissals: The salesperson should be
optimistic in nature and always hope to win the sale.
The salesperson has to provide important
information’s about the product tactfully to gain
favorable attention from the prospect. This helps to
avoid early dismissal of the salesperson.
04/16/2024 213
 Cont
• Avoid apology: Some salespeople are in the habit of
apologizing for taking the prospect’s time. It should
be avoided.
• The prospects should be made to feel that the
salesperson is doing a favor through the sales
proposition. Further, the prospect should feel that
the salesperson has come with a solution to problem.
• Otherwise when the salespeople beg apology, the
prospect becomes doubtful about the proposition of
the sales person.
04/16/2024 214
 Cont
• Retain attention: The salesperson should try to win
the undivided attention of the buyer. Some prospects
are in the habit of doing something while talking.
• The salesperson under such circumstances should
try to divert his attention, towards the product and
the sales talk. How?
• This may be done by flattering the prospect, by
putting model of the product, by demonstration of
the product; by showing the charts etc. the
salesperson should therefore try to develop
customers’ positive interest in the product.
04/16/2024 215
 Cont
• Follow up/Call back: If the salesperson fails
to make a sale in the first attempt or the
prospect is not in need of the product or
service at present, the salesperson should leave
the door open.
• In other words, he/she should think of some
reason to call back the prospect again.

04/16/2024 216
 Session 12: Sales Presentation

04/16/2024 217
 Cont
• Sales presentation involves a persuasive vocal
and visual explanation of a business
proposition. The main goal of sales
presentation is to sell the company product to
customer.
• It is a continuation of the approaching step and
it is the heart of the selling. It may take face-
to-face or other media of communication
depending on the nature of the product to be
sold or prospect you want to sell to.
04/16/2024 218
 Cont
• It is the step where the buyer decides to buy or
not to buy. Now you can see the logical
sequence of the selling process.
• Selling that starts by making a proposal of
whom to contact, how to make the initial
contact and making a firsthand contact will go
in to a detailed sales interview.
• This detailed and in-depth interview is the
expanded discussion between the prospect and
the salesperson on the business proposal.
04/16/2024 219
 Method of Sales Presentation

• As noted earlier, the sales presentation involves a

persuasive vocal and visual explanation of a business
proposition. While there are many ways of making a
presentation, only four will be discussed here.
• These four methods are presented to highlight the
alternatives available to help you sell your products.
They include:
1. Memorized (or stimulus -response) method
2. Formula method
3. Need-satisfaction method and
4. Problem-solution selling method.
04/16/2024 220
 Cont
• The basic difference in the four methods lies in
the question “what percentage of conversation
is controlled by the salesperson.”
• In the more structured memorized and formula
selling techniques, the salesperson normally
requires a monopoly on the conversation,
while the less structured methods allow for a
much greater degree of buyer- seller
interaction in which both parties participate
equally in the conversation.
04/16/2024 221
Memorized (Canned) Sales Presentation

• The memorized presentation (or stimulus- response

method) is based on either of two assumptions. The first
is, a prospect’s needs can be stimulated by direct
exposure to the product, via the sales presentation. The
second is the prospect’s needs have already been
stimulated because the prospect has made the effort to
seek out the product.
• In either case, the salesperson’s role is to develop this
initial stimulus into affirmative response to an eventual
purchase request. During the memorized sales
presentation, the salesperson does 80 to 90 percent of
the talking.
04/16/2024 222
 Cont
• The salesperson only occasionally allows the
prospect to respond (participate) to
predetermined questions.
• In this method, the salesperson does not
attempt to determine the prospect’s needs
during the interview, but just gives the same
canned sales talk to all prospects.
• The canned or memorized sales presentation
has a number of advantages and
disadvantages.

04/16/2024 223
 Cont
Advantages
• It ensures that the salesperson will give a well-
planned presentation and that the same information
will be discussed by all of the company’s
salespeople.
• It both aids and lends confidence to the
inexperienced salesperson
• It is effective when selling time is short, as in door
–to –door or telephone selling.
• It is effective when the product is non technical in
nature such as books, cooking ,etc.
04/16/2024 224
 Cont
Disadvantages
• It presents features, advantages and benefits that
may not be important to the buyer.
• It allows for little prospect participation
• It is impractical to use when selling technical
products that require prospect input and
discussion.
• It proceeds quickly through the sales presentation
to the close, requiring the salesperson to close or
ask for the order several times, which may be
misconstrued as high pressure selling.
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 The Formula Presentation
• The formula presentation, often referred to as the
persuasive selling presentation, is a keen to the
stimulus-response method: it is based on the
assumption that similar prospects in similar situations
can be approached with similar presentations.
• However, in order for the formula method to apply,
the salesperson must first know something about the
prospective buyer.
• The salesperson follows a less structured, general
outline in making a presentation, allowing more
flexibility and less direction.

04/16/2024 226
 Cont
• The formula selling approach obtains its name
from the salesperson using the Attention,
Interest, Desire, and Action (AIDA) procedure
of developing and giving the sales
presentation.
• Formula selling can be a very effective method
for calling on customers, who are currently
buying, and prospects, about whose operation
the salesperson has learned a great deal.

04/16/2024 227
 Cont
Advantages of formula presentation
• It ensures that all information is presented in a
logical manner.
• It allows for a reasonable amount of buyer and
seller –interaction.
• It allows for the smooth handling of anticipated
questions and objections.
• The formula technique of the sales presentation is
not adaptable to a number of complex situations.
04/16/2024 228
The Need-Satisfaction Presentation
• The need-satisfaction presentation is different
from the stimulus response and the
formularized approaches in that it is designed
as a relatively flexible, interactive sales
presentation. It is the most challenging and
creative form of selling.
• In this method, the salesperson will start the
presentation with a probing questions such as,
“what are you looking for?” or, “what type of
computer needs does your company have?”
04/16/2024 229
 Cont
• This opening brings up a discussion of the
prospect’s needs, and it also gives the
salesperson an opportunity to determine
whether any of the products being offered might
be beneficial.
• When something the prospect has said is not
understood by the salesperson, it can be
clarified by a question or by restating what the
buyer has said.
• The need satisfaction format is especially suited
to the sale of industrial and technical goods with
stringent specifications and high price tags.
04/16/2024 230
 Cont
• The need satisfaction presentation approach has three
phases:
• Phase 1: The need development phase: this takes the
first 50-60 % of conversation time. It is devoted to a
discussion of the buyer’s needs.
• Phase 2: The need aware phase: once aware of the
prospect’s needs, the salesperson takes control of the
conversation by restating the prospect’s needs to clarify
the situation.
• Phase 3: The need- fulfillment phase. This is the last
stage of the sales presentation where the salesperson
shows how the product will satisfy the prospect’s needs
.
04/16/2024 231
 Problem Solution Presentation
• In selling highly complex or technical products such
as insurance, industrial equipment, accounting
systems, and computers, salespeople are often
required to make several sales calls in order to
develop a detailed analysis of a prospect’s needs.
• After completing this analysis, the sales person
arrives at a solution to the prospect’s problems and
usually uses both a written analysis and an oral
presentation.
• The problem- solution presentation usually consists
of six steps:
04/16/2024 232
• Convincing the
Cont
prospect to allow the sales person to
conduct the analysis.
• Actually, making the analysis.
• Buyer and seller mutually agreeing on the problems and
determining that the buyer wants to solve them.
• Preparing the proposal for a solution to the prospect’s
needs.
• Preparing the sales presentation based on the analysis and
proposal.
• Making the sales presentation.
• The problem solution presentation is a flexible,
customized approach involving an in- depth study of the
prospect’s needs and requiring a well-planned
presentation.
04/16/2024 233
 Which Is the Best Presentation Method?

• Each of the four sales presentation methods

can be the best one when the method is
properly matched with the situation.
• For example, the stimulus –response method
can be used when time is short and the product
is simple.
• Formula selling is effective in repeat purchase
or when you know or have already determined
the needs of the prospect.

04/16/2024 234
 Cont

• The need -satisfaction method is most appropriate

when information needs to be first gathered from
the prospect, as is often the case in selling
industrial products.
• Finally, the problem-solution presentation is
excellent for selling high-cost technical products
or services, and especially for system selling
involving several sales calls and business
proposition.
• To help improve sales, the sales person should
understand and be able to use each method based
on each situation.
04/16/2024 235
Essential Feature of Sales Presentation
• Although there are so many factors that affect your
sales presentation, the first impression a salesperson
makes is critical for success. The initial impression
is based on appearance.
• If this appearance is favorable, the prospect is more
likely to listen to the salesperson, but if it is not
favorable, the prospect may erect communication
barriers that are difficult to overcome.
• A good sales presentation is also expected to have
the following essential features:
04/16/2024 236
 Cont
• Arousing Interests
• Promptness in presentation
• Clarity in presentation
• Showing proper quality and quantity
• Demonstrations and Dramatization
• Appealing to senses
• Suggesting tests
• Handling the goods
04/16/2024 237
 Session 13: Meeting objections,
Closing and Follow-Up of Sales

04/16/2024 238
Determining and overcoming objections
• An objection is the expression of disapproval of an
action taken by the salesperson. In other words,
objections are the feelings of disapproval. The
objection is usually raised by the prospect.
• Once an objection is raised, it indicates that the
prospect is yet undecided needs some more convincing,
and persuasion.
• It is the duty of the salesperson to remove doubts and
difficulties from the minds of the prospects that give
birth to objections.
• The raising of objection is otherwise known as sales
resistance.
04/16/2024 239
 The Reasons for Objections
• There are a number of reasons as to why
prospects raise objections.
• Some are genuine and some others are not
genuine, i.e. do not have proper grounds.
• The objections without any proper ground are
called false or fake objection.

04/16/2024 240
 Cont
1. Genuine objections
• There are a number of reasons as to why objections are raised by
the prospects. Some of the most important reasons for genuine
objections are:
• unable to understand the salesperson fully and therefore raising
objections.
• Salesperson pressurizes the prospects or uses some other unfair
devices to sell the product.
• Mismatch between their actual need and the salesperson’s guess on
their need.
• Expectation of the prospect of incomplete satisfaction from the use
of the salesperson’s product.
• Lack of ability of the salesperson to fully put the product’s overall
attribute to show it is really desirable to the prospect.
04/16/2024 241
 Fake Objections
• Fake objections could be raised for a number of reasons. The
most common ones are the following.
• The need for testing the ability and knowledge of the
salesperson. This is especially true of educated prospects who
expect the salesperson to say something extra but the
salesperson does not mention the expected idea.
• For the purpose of postponing the purchase because they
actually liked the product but do not want to say directly they
want to postpone purchase.
• The prospect does not want to buy the product for a while
even though the salesperson has showed him the point for
buying the product.
• Some prospects raise objections as mere excuses because
they do not have the necessary financial ability to buy at
present.
04/16/2024 242
 Commonly Raised Objections
• There are certain common objections that are usually raised by
the prospects. These are: price objections, quality objections,
payment method objections, service objections and time to buy
objections. Each of them is discussed below.
1. Price Objections
• It is the most common type of objection raised by prospects.
They express their inability to pay such a higher price. However,
this objection differs from person to person. Some prospects
also object that the price of the product is not equal with that of
neighboring shops in the market. Sometimes prospects pretend
that the price is higher for them with a view that the salesperson
might decrease the price. As a solution to such objections, the
salesperson may adopt the following methods:

04/16/2024 243
 Cont
• Offer Substitutes: The salesperson can offer substitutes
that are cheaper.
• Justify the Price: The price can be justified by the
salesperson by explaining about the quality, utility, and
durability of the product. He can also compare the
product with other competing products and prove its
superiority. Even in some cases, he has to show
invoices, cash bills, and the like to prove the price.
• Offer installment Payment: The salesperson can also
offer installment payment facility to the customer who
makes objections about the price.
04/16/2024 244
 Cont
• Avoid Price factor: Sometimes the
salesperson can avoid talking about the price,
starts talking about the durability, utility, and
services of the product when the customer
raises objections.
• Show Proofs: When prospects raise price
objections, the salesperson can prove the price
of a product by showing catalogued copies of
invoices, cash bills, etc.
04/16/2024 245
 Cont
2. Quality Objections: Some prospects raise objections regarding
the quality of the product. Sometimes objections are also raised
about design, durability, size, color, packing, etc.
• Salesperson has to apply his intelligence and experience to meet
such objections. He has to prove the superiority of the product
by making a comparison of competing products.
• The salesperson can also show them laboratory reports, expert
opinions, etc. in suitable cases to meet such objections
3. Payment Objections: Some customers object to buying because
they have no ready cash at all or adequate cash to pay the full price
of the product. It may be genuine or mere excuse. If the
salesperson knows it is genuine, he can offer credit. He can say
that the customer need not worry for the money now or can partly
pay now and take the product home. He can allow the customer to
pay later fully or in installments.
04/16/2024 246
 Cont
4. Service Objections: Often the salesperson is
confronted with objections regarding the services
offered by the organization. Some common service
objections relate to repair, delivery of goods, timely
attendance of the worker, etc. The salesperson while
meeting such objections has to emphasize the service
facilities offered by the organization.
He can illustrate prompt service by expert serviceman,
quick delivery at doorstep, prompt attendance of
workers when called and so on. In order to prove his/her
points, the salesperson can present the testimonials of
leading users, service experience of satisfied customers.
04/16/2024 247
 Cont
5. Time to buy Objections: This is another
important objection. Some prospects may say that
they do not want to buy the product now. Someone
else may say that they are waiting for the new model
and so on.
• While meeting such objections, the salesperson has
to emphasis the value of time and induces them to
purchase now.
• In some specific cases he can say that in the near
future the price is going to rise or the new model
will be too costly or the new model will enter the
market after a long period and so on.
04/16/2024 248
 Techniques of Handling Objections
• Preventing Objections: While presenting a sales
talk, salespeople generally make same common
mistakes.
• These mistakes include the salesperson telling
sentences like “You cannot challenge us or I am
telling you it is so or you do not know anything”
and so on.
• By avoiding such silly mistakes the salesperson can
prevent subsequent objections. All objections should
be met in a tactful and in non-offensive manner.
04/16/2024 249
 Cont

• Cushioning the Jolt :The cushion technique makes the

shock of the objection lighter. This is just like using shock
absorber. For example, he can invite a third party to act as
the neutral judge.
• This soothes the objection of the prospect and helps the
salesperson to establish his/her views before the prospect.
• Admitting Valid Objections: A good salesperson always
welcomes valid objections. But these valid objections are
explained intelligently by the salesperson so that the
prospect is fully convinced.
• For example, when a prospect complains about the high
price, he/she has to admit it. But the salesperson can
answer that good quality and durable articles always
costs a bit high.
04/16/2024 250
 Cont

• Using Direct Denial Method: Under this method, the

prospect is told that he/she is wrong. This method is the
most offensive one. It is not a successful way of handling
objections because direct denial very often offends the
customers.
• Using Indirect Denial Method: This method is widely
used by the salesperson. In this method the salesperson
agrees with the prospect’s objection immediately but
subsequently tells him/her humbly and politely that he/she
is looking at the article from a different angle.
• That is why this method is popularly, called as ‘Yes...but’
method or ‘you are right but … method. This method is
nothing but denying tactfully and politely without
offending the prospect.
04/16/2024 251
 Cont
• Reverse Position Method: This method is
known as “why method”.
• Under this method, the salesperson asks the
prospect question relating to the objections
such as ‘why?’ and “what do you really mean
sir” instead of explaining the objections.
• The prospect when confronted with such a
question, really hesitates before raising further
objections.

04/16/2024 252
 Cont
• Boomerang Method: In this method the objection of the
prospect is converted into a reason in favor of a purchase.
This method is also known as ‘transition method’ because
it translates the objections into a reason for making a
purchase.
• In other words, the prospects put an objection, this method
converts the objections into boomerang.
• For example, the prospect may object that the price is too
high. The salesperson can hit back and say; this is exactly
the reason why I believe you need the article.
• He/she can say that the quality of the product is superior,
the manufacturer provides a five-year guarantee and after
sales service etc.
04/16/2024 253
 Cont
• Superior Point or Compensation Method: In this
method, the salesperson admits the validity of the
objections frankly raised by the prospect. But
simultaneously offsets the objection by a superior
point of greater advantage.
• In this method the prospect’s the objection by a
superior point of greater advantage. In this method
the prospect’s compensating advantage of the
product.
• Thus, when attention of the prospect is diverted, it
minimizes the importance of a reasonable and valid
objection.
04/16/2024 254
 Cont
• Question or Interrogation Method: This method
has some similarity with the reverse method. In this
method, the prospects are asked questions tactfully so
that their objections are answered by themselves.
• For example, a prospect may say that I want to buy a
cheap suit. The salesperson can put a question to him
whether he would like to throw away the suit in one
year.
• Similarly, when the prospect raises doubt about the
durability of a product, the salesperson can ask what
made him/her think that the product will not last long.

04/16/2024 255
 Cont
• Pass-up Method: In this method the
salesperson clearly passes up most of the
objections.
• The salesperson just smiles or merely shrugs
his shoulder or uses any other method to evade
answers to objections.
• This method is not a good method and cannot
be applied to real objection cases.
• Rather when the objection is false or mere
excuses, it can be used to evade them.
04/16/2024 256
 Closing the Sales
• Closing is the process of helping people makes a
buying decision that will benefit them. This is the
climax of the various efforts made by the salesperson.
• The main objective of the salespeople is to sell and
closing is the natural culmination of the selling
process.
• The salesperson’s effort of obtaining attention,
arousing interest, creating the desire and convincing
the prospect has no value if he/she cannot close the sale
successfully.
• Therefore, it is the most important and crucial stage
from the viewpoint of the salesperson.
04/16/2024 257
 Features of Successful Closing
• The objective of closing the sale is to persuade
the prospect that he/she should act ‘now’ and
not ‘later’.
• The aim of closing is to persuade the prospect
to act positively at present and not later. In
other words, it aims at converting a desire into
demand.
• It is a means of getting the customer agree to
purchase the offering but it is not an attempt to
trick a customer into buying a product.
04/16/2024 258
 Cont
• Closing in fact is the culmination of the efforts so far made
by the salesperson. If the salesperson is able to close the sale
successfully, he is a good sales person otherwise he is not.
• The prospect should be convinced about the advantages and
benefits of the product using presentation and
demonstration. This leads the prospect to saying ‘yes’ so that
the salesperson can ask for the order.
• The prospect is thus converted into a customer. This process
requires a lot of self-confidence, practice and experience on
the part of the salesperson.
• It is obvious that a sale is the most crucial stage for the sales
person because it is only here where the prospect is
converted into a customer and his/her desire is converted
into demand.
04/16/2024 259
The Cases of Failures of Closing Sales
• Salespersons sometimes have difficulty in
closing the sale for a number of reasons:
• Fear of closing a sale: one reason salespeople
may fail to close a sale and get an order is that
they are not confident of their ability to close.
• This may be due to the loss of enthusiasm to
sale due to many factors, usually emotional
ones.

04/16/2024 260
 Cont

• Improper attitude: The salesperson fails to recognize

customer statements of objection (opposition),
indifference (no need), or skepticism (doubts). What isn’t
dealt with effectively remains on the customer’s mind,
and left with a negative attitude, the customer will not
make a commitment. These factors contribute to closing
failures.
• The salesperson should recognize the customer’s attitude
and respond dually. Other factors salesperson should
recognize the customer’s attitude and respond dually.
• Other factors dishonesty, lack of integrity, etc. also hinder
successful closing. Furthermore, pressuring prospects too
much on sales talk created closing failures.
04/16/2024 261
 Cont
• Verbal Overkill: Too much talking about the product
even long after the prospect has decided to buy
creates boredom and thus prohibit successful closing.
• On the other hand, the salespeople often determine
their own that the prospect does not need the quantity
or type of merchandise, or that the prospect simply
should not buy.
• So they do not ask or type of merchandise, or that the
prospect simply should not buy. So they do not ask
and responsibility whether or not to buy.
• Do not make that decision for the prospect.
04/16/2024 262
 Cont
• Failure to ask for the order: No matter when or how
you close, remember that after you ask for the order it is
very important to be silent.
• Do not say a simple word. If you say something anything
you increase your probability of losing the sale.
• You must put the prospect in a position of having to (1)
make a decision, (2) speak first, and (3) response to the
close. If you say anything after your close, you take the
pressure of the prospect to make that decision.
• The professional salesperson “asks for the order and
shuts up

04/16/2024 263
 Follow-up of Sales
• The selling process is not completed by merely
making the sale, as generally assumed by many
salespersons.
• After sales activities are important parts of the
whole selling process.
• Effective sales-follow-up reduces the buyer’s
doubt about the product or services and improves
the chance that the person will buy again in the
future.
• In addition to post-sale activities, salesperson is
also required to maintain good customer relations.
04/16/2024 264
 Cont
• Successful salesperson never stops serving customers. In
addition to handling complaints, they keep customer
informed about the latest products or services, fulfill
reasonable request, and provide other forms of assistance.
• The salespeople should also appreciate the customer by
thanking customers for their business.
• Small gifts can be given after the sale and at appropriate
times during the year. Salesperson should try to make self-
analysis for evaluating their own selling performance and
methods.
• A salesperson should analyze every call to determine what
factors influenced its eventual outcome. Self- analysis is a
very useful tool in improving overall sales effectiveness.
04/16/2024 265