Chp 2 Sales Management Personal Selling and Salesmanship

Chp 2. Sales Management, Personal Selling and Salesmanship

l Sales Management directs Personal Selling Implemented Salesmanship

l Sales Management – l Personal Selling – l The planning, direction and control of personal selling, including recruiting, selecting, equipping, assigning, routing, supervising, paying and motivating as these task apply to the personal sales force Along with other marketing elements such as pricing, advertising, product development and research, marketing channels and physical distribution is a means of implementing marketing program Salesmanship – It is art of successfully persuading prospects or customers to buy products or services from which they can derive suitable benefits, thereby increasing their total satisfaction

Buyer-Seller DYAD – “dyad” a situation in which two people interact l l A salesperson and the prospect interacting with each other The more alike the salesperson and their prospects, higher the chances of the sale – E. g. Insurance

l Diversity in Personal-selling situations – – Service Selling – obtain sales from existing customers whose habits and patterns of thought are already conductive Developmental selling – aims to convert prospects into customers

Sales Positions l Group A (service selling) 1. 2. 3. 4. 5. Inside Outside Taker – “waits on customer” – sales clerk behind the counter Delivery Salesperson – delivering the product Route or Merchandising Salesperson – Operates as an order taker but works in the field Missionary Technical Salesperson

Sales Positions Group B ( developmental selling) l 1. Creative salesperson of Tangibles – 2. Vacuum cleaners Creative Salesperson of Intangibles – Insurance Group C ( dev. Selling + unusual creativity) l – – “Political”, “Indirect” or Back Door Salesperson engaged in Multiple sales

Theories of Selling l AIDAS theory of selling – – – Attention Interest Desire Action Satisfaction

l Securing Attention – – l Gaining Interest – l Receptive state Few min. of the interview crucial Intensify the prospects attention -> strong interest Kindling desire – – Ready-to-buy point Obstacles/Objections

l Inducing Actions – l The “right time” Building satisfaction – Reassurance

l “Buying Formula” Theory of Selling Need ( or problems) -> solution -> Purchase Need -> solution -> Purchase-> Satisfaction Need -> Product service -> Purchase-> Satisfaction/ and/or Dissatisfaction Adequacy trade name Need -> Product service -> Purchase-> Satisfaction/ and/or Dissatisfaction trade name Pleasant feelings

l “Behavioral Equation” Theory – Four essential elements of learning process l Drives – strong internal stimuli Innate drive from physiological needs – Learned drives – l Cues- weak stimuli that determine when the buyer will respond Triggering cues – Nontriggering l Product cues l Informational cues – l l Response Reinforcement

Salesperson Knowledge Universe Product Knowledge • Features • Benefits • Styles • Origin • Price Company Knowledge • History • Finances • Management • Size • Policies and • Procedure Competitors Knowledge Salesperson Knowledge universe • Industry structure • Market Share • Market Behaviour • Other policies

The Selling Process Pre sale Preperation Follow up action Prospecting Pre-approach B 4 the interview Closing the sale Handling customer Objections Approach to the customer Sales presentations

Pre-approach Information l l l l l Size of the business Product lines and market they sell Responsible executives and key personnel Buying routines and procedures Competitors Any previous business dealing with your competitors From whom are customers buying currently Levels of volume possible Where, when, why and by whom will the products be used Prospects of developing future sales form the client

Prospecting l Prospecting – The planning work which is essential in eliminating calls on nonbuyers is called “prospecting”

l Steps in Prospecting – Formulating prospect definitions l – Searching out potential accounts l – Names of prospects Qualifying prospects and determining probable requirements l – Getting to the right person Additional information sources to qualify Relating company products to each prospects requirements l Strategy for approaching each prospect

50 potential prospects 15 qualified prospects 25 qualified prospects 6 interviews 17 interviews 1 sale 7 sale No Yes Successful prospecting

Popular methods of prospecting l l l Cold canvassing Endless chain customer referral Prospect pool Centers of Influence Non-competing sales force Observation Friends and Acquaintances List and Directories Direct mail Telemarketing Trade Shows and Demonstrations

Pre-approach Information b 4 the interview l Customer Benefit Plan – FAB analysis l l l – – Features Advantages Benefits Own as well as the competitors Reason to purchase

FAB Analysis l Features The salesperson describes the features or characteristics of the products, service or market offering – l Advantages The salesperson then describes how the feature helps or give advantage to any prospect – l For e. g. “Our ceiling fan has two ball bearing” “because of the bal bearing, our ceilings fans make hardly any notice and have a longer life” Benefit The Salesman described how the feature or advantage meets a clear and detailed need expressed by the prospect. – “Our ceiling fans can be used in classrooms where noise level should be low as needed by you”

Exercise Product/Service Washing Machine Passenger Car MBA Programme Life Insurance Feature Advantage Benefit

Approach to the customer l l Crucial step Commonly occurring mistakes – – – – – Disregarding the concept of the first impression Forgetting the goal of obtaining the order Selling the company's image than the products Lack of response to needs and objections of customers Overcomplicating the technical and managerial jargons Relying on product literature for product information Talking and arguing instead of listening Brushing of questions and objections Failing to ask for the order

Sales Presentation l What the customer wanted to ask you but did not spell out to you – – – – Why should I listen to you? What is important in your presentation? What will I get out of it? Who says that yours is the best in the business? So what if you have a great product, everybody say so? Who else has done the buying of your product? Do I know anyone of them?

Sales Presentation l Attracting Customer Attention – – – Understanding the customers mind and thought and placing the product according to that so it matches his line of thought. External factors Internal factors

Sales Presentation l Creating Interest – Charles Fernard l l Interest appreciations Serviceability Identification Arousing desire and Building conviction

Methods of Sales presentation l Canned Presentation – – l Organized Presentation – – – l Prepared by the company Little scope for modification New salespeople; confidence Repeated calls to the same customer – not useful Enough scope to word the presentation but on the lines of the company policy and systems Flexibility New and old salespeople Tailored Presentation – Business to business selling

Handling customer Objections l Sales Resistance – – – Real or imagined obstacles Obstacles to sales Sales Objections

Handling customer Objections l l l l Start with the highest expectations Avoid conceding first Be sure the customer understand the value of a concession Makes concession in small amount Admit mistakes and make corrections willingly Be prepared to withdraw a mistake Do not advertise the willingness to concede

Methods of Handling customer Objections l l l Superior feature method Yes. . but method Reverse English method Indirect denial method Pass out method Comparison method Direct denial method Another angle method Narrative method Testimonial method Question or why method

l Closing sales – Caution method l – Implied consent method l – – Satisfied customer; place order at the end Special induced method l – Product availability Reminds about the promotional scheme Direct order method Choice narrowing method

Follow up action l Advantages – – – Evaluate competitive sales moves Generate additional leads from satisfied customers Cross-selling and upselling Good will Repeat business

Exercise l The Mordex Photocopier Company

Selling Skills

Selling skills Communication Skills Problem Solving skills Selling skills Negotiation Skills Listening Skills Conflict Management and resolution skills

Selling Skills l Communication Skills – Salesperson’s behaviour l l l Truth of words Predictability of action Competency Intent or empathy Likeability

l Communication Skills – – – – Avoid using big, confusing jargon or expressions Personal appearance Postures Gestures Facial Expressions Eye contact Space distancing Empathy

Listening Skills l Content listening – – l Understand retain the speakers message Information flows from the speaker to the listener Critical listening – Understand evaluate the meaning of the speakers message at several levels l l l l The logical level of the argument Strength of the evidence Validity of the conclusions Implications of the message for the customer The speakers intention and motives Omission of relevant data Emphatic listening l Understand the speaker’s feelings, needs and demands

The Process of listening Attendance Interpretation Remembrance Evaluations Response Action

The Levels of listening Feedback Paraphrasing Clarifications Emphatic Listening Active listening

Barrier to listening l Sheet to be given to students – l Bad/Good listener Exercise

Conflict Management l Methods of resolution – – – Competing Collaboration Avoiding Accommodating Compromising

l Must read – – Fisher and Ury – Getting to yes( Negotiation) Stephen Covey – the seven habits of highly effective people ( Problem solving)

Negotiation Skills l Fisher and Ury – – Separate the people from the problem Focus on interest on positions Invent options for mutual gains Insist on objective criteria l BATNA = best alternative to a negotiated agreement

Bargaining Tactics l Questions to ask oneself before making an offer – – – Should I give the first offer? Should I start with the high offer? Should my preparation lead to a closing? Should I sketch an agreement from the beginning? Should I construct a framework for agreement? Should I move towards the commitment gradually?

Tactical Consideration and Strategies l l l Let the other party have its own way Visit the Balcony Step to their side Reframing rather than rejection Let them take ownership Educating them to senses

Negotiation Tactics l l l l Acting crazy Auctioning The good guy- Bad guy routine Budget bogey Get a prestigious ally Escalation The well is dry Limited Authority Whipsaw/auction Divide and conquer Sticks and Stones Deadlines Get Lost/Stall for time Take it or leave it l l l Wet noodle Veiled threat Lets split the difference Play the Devils advocate Surprises