Presentation on theme: "Personal Selling of Industrial Products"— Presentation transcript:
1Personal Selling of Industrial Products Anand G Khanna
2SALES & MARKETINGPurpose of organization is only one i.e to create / identify and satisfy the customers. We exist only for customers. The rest is process.Two functions generate revenue – Sales and Innovation. All other are costs.Business purpose is to meet the requirements of customer and delivery of satisfaction. The delight to the customer should be the ultimate endeavor of the organization.
3SALES & MARKETINGGoals are attained by being result oriented and not merely activity oriented. Non directed activity keeps busy but do not give results.Effectiveness is doing the right things and Efficiency is doing things rightly. The former is essential as a Marketing activity and latter is selling activity.Marketing is preoccupying with the future and Sales and Selling is with current scenario.
4SALES & MARKETINGThe dimension of Marketing tasks are : New product, Market Analysis, Competitor Analysis, Technical Up gradation, Brand Management, New Opportunities, Promotion Concept, Sales Support, Training and Development, CRM, Interacting with CFTS (Cross functional team support) and Customer Financing.The dimension of Selling tasks are : Marketing Intelligence, Customer Contact, Pre tendering and selling activity, Selling and Negotiations, Sales Management, Order Management, Offer Follow Up, Relationship Management, Order execution and Payment realization, After sales service and Complaint management.
5SALES & MARKETINGThe broad task of Sales Person are : Prospecting - searching for prospects or leads, Targeting - deciding how to allocate their time among prospects and customers, Communicating benefits to derive edge for the product and services, Selling - approaching, presenting, answering and closing the sales, Servicing - providing various services to the customers – consulting in problems, rendering technical assistance, Information gathering – conducting market research and doing intelligence work., Allocating, deciding which customer would get what during shortages..The traits of a successful Sales Person are : Risk taking, powerful sense of mission, problem solving bent, care for customer, careful planning, habitual wooer, compulsive need to win, high level of energy, abundance of self confidence, chronic hunger for money, state of mind that regard each objection, resistance or obstacle as a challenge.
6SALES & MARKETING Your Journey begins Business Cards How does a person, business, or organization adequately describe themselves in a 3.5 x 2 inch space?One of the first things you must have done on joining is get a card printedBrochure Describing a Place or Organization (Informs, Educates, Persuades)
7PERCEPTIONS ABOUT SELLING “Sales people are born and not made.”“Sales people must be good talkers.”“Selling is a matter of knowing the right techniques or tricks.”“A good salesperson can sell ice to an Eskimo.”“People generally do not want to buy.”
8TRAITS OF “WINNING SALES PEOPLE” Desire to succeedContinually seek self-improvementAccept responsibilityHave mental toughness
10The Sales Process Identifying Needs Identifying Needs Prospecting/ QualifyingPreapproach / PlanningIdentifying NeedsIdentifying NeedsApproachPresentationHandling ObjectionsClosing the SaleFollow up
11Typical Sales Cycle: Tasks Performed Throughout the Sales Process Lead GenerationTriggered by a sales call, by a customer’s response to direct mail, or by a request for information through a Web site, an initial contact with a prospect is made.Lead QualificationPotential customer is screened: the prospect’s need for the product or service, buying interest, funding, and timeframe for making the purchase.Bid and ProposalPreparation of bid and proposal to meet customer’s requirements (a complex task for large technical projects)Negotiations and Sales ClosureThe negotiation of prices, terms, and conditions, followed by agreement on a binding contract.FulfillmentFor standardized product or service, delivery of offering to customer. Configuration, customization, and installation for more complex sales.Customer Care and SupportPost-sale problem resolution, customer guidance, and ongoing contact to ensure customer retention, loyalty, and growth.SOURCE: Adapted from Lawrence G. Friedman, Go To Market Strategy: Advanced Techniques and Tools for Selling More Products, To More Customer, More Profitably (Boston: Butterworth-Heinemann, 2002), pp
12SELLING PROCESS Prospecting External Sources Internal Sources Direct InquiriesReferralsDirectoriesCold CanvassingInternal SourcesOrder listsList of organizations / persons who approached thr company for as a Channel partnerList of persons who attended meetings (Influencers)
13SELLING PROCESS Qualifying Qualified Customers have a need, have the authority to buy, and can afford to buy
14SELLING PROCESS Precall Planning What do I want to accomplish? What do I know about the prospect?Where can I find information?What am I going to say?
15SELLING PROCESS Precall Planning--”What do I want to accomplish?” determine information on historical inventory levels.determine who is involved in the purchasing decision.arrange for a follow-up meetingagreement to a order / or trial-run purchase
16SELLING PROCESS Precall Planning--”What do I know about the prospect?” Size of business/products sold/markets servedKey personnelBuying routines/purchasing processPresent supplier(s)/volumes purchasedFuture plans
17SELLING PROCESS Precall Planning--”Where can I find information?” Ask prospect directlyObserve business facilitiesAsk other company salespeopleAsk current customersAsk competitors
18SELLING PROCESS Precall Planning--”What am I going to say?” The Sales Mix ModelPresentation PacePresentation ScopeTwo-way Communication
19SELLING PROCESS The Approach Securing Appointments Establishing Rapport
20SELLING PROCESS “Why is the approach important?” It can help capture the buyer’s attentionIt can help to establish a harmonious atmosphereIt serves as a good transition to the presentationIt can help in need determination
21PERSONAL SELLING PROCESS The ApproachTypes of ApproachesIntroductory ApproachProduct ApproachConsumer Benefit Approach
22PERSONAL SELLING PROCESS The PresentationFocus on Benefits, not just FeaturesKeep it SimpleTalk the Prospect’s LanguageStress on the ApplicationGet the Prospect Emotionally InvolvedSeek Credibility
23Handling customer objections Suggested by SMITHStart with your highest expectationsAvoid conceding firstBE sure the customer understands the VALUE of a concessionMake concessions in small amountsAdmit mistakes and make corrections willinglyBE prepared to withdraw a concessionAvoid ‘split the difference’ strategyDo not advertise willingness to concede
24Selling skills Selling Skills Effective communication skills Problem solving skillsSelling SkillsListening Skills(Questioning Skills)Negotiation and bargaining skillsConflict management and resolution skills
25Communication process Managing body language:Personal AppearancePostureGesturesFacial ExpressionsEye ContactSpace Distancing
26Process of listening Attendance Interpretation Remembrance Evaluations Response Action
27Levels of listening Feedback Paraphrasing Clarifications Emphatic listeningActive ListeningBarriers to Listening !
28Negotiation skills Situation and timing for negotiations Formulation for a bargaining strategyThe theory and strategy of principlenegotiationsseparate the people from the problemfocus on interests, not on positionsinvent options for mutual gainsinsist on objective criteria
29Problem solving skills Habit I: be proactiveHabit 2: begin with an end in mindHabit 3: put first things firstHabit 4: think win–winHabit 5: seek first to understand, then to be understoodHabit 6: synergizeHabit 7: renewal
30Problem solving process Define the problemGenerate alternative solutionsDecide the solutionImplement the solutionEvaluate the solution
31Six Cylinders of Selling External Factors of a CompanyEconomyIndustryProductMarketInternal Determinants for a CompanySelling SkillsAttitude
32ContactProf . Anand G Khanna Marketing Management Area Chairman (MDP & Consulting) Institute of Management Technology Raj Nagar, Ghaziabad ( UP ) Tel : Mob :