Personal Selling Module Two

A MANAGER SHOULD AT A MINIMUM HAVE COMPETENCY IN, AND BE KNOWLEDGEABLE OF, THE AREAS OF HIS REPONSIBILITY.

Industrial Revolution Industrial Revolution Post-Industrial Revolution Post-Industrial Revolution War and Depression War and Depression Modern Era Modern Era 1800s1900s2000s The Evolution of Personal Selling Selling function became more structured Peddlers selling door to door... served as intermediaries Business organizations employed salespeople Selling function became more professional As we begin the 21 st century, selling continues to develop, becoming more professional and more relational

The Continuing Evolution of Personal Selling Change Salesforce Response More emphasis on improving sales productivity Increased use of technology Increased use of lower-cost- per-contact methods More emphasis on profitability objectives Intensified competition More emphasis on developing and maintaining trust-based, long-term customer relationships

Continued Evolution Change Salesforce Response Demand for in-depth, specialized knowledge as an input to purchase decisions Team selling More emphasis on customer- oriented sales training

A FUNCTIONAL UNDERSTANDING OF THE PERSONAL SELLING PROCESS IS ESSENTIAL. THERE ARE EIGHT BASIC STEPS IN THE PERSONAL SELLING PROCESS

THE FIRST STEP #1 PROSPECTING GENERATE LEADS SOURCES OF LEADS CUSTOMER REFERALSCUSTOMER REFERALS ‘IN HOUSE’ REFERALS‘IN HOUSE’ REFERALS REFERAL AGENCIESREFERAL AGENCIES NETWORKINGNETWORKING DIRECTORIESDIRECTORIES COLD CANVASINGCOLD CANVASING FOLLOW YOUR COMPETITIONFOLLOW YOUR COMPETITION QUALIFY LEADS ESTABLISH ESTABLISH NEEDNEED ABILITY TO BUYABILITY TO BUY READY TO BUYREADY TO BUY

#2 PRE APPROACH PLANNING THE SALE AQUIRE AS MUCH INFO ABOUT THE CALL AS IS POSSIBLEAQUIRE AS MUCH INFO ABOUT THE CALL AS IS POSSIBLE SET AN OBJECTIVE FOR THE CALLSET AN OBJECTIVE FOR THE CALL USE ADAPTIVE SELLINGUSE ADAPTIVE SELLING

#3 THE APPROACH CHECK PERSONAL HYGENE, DRESSCHECK PERSONAL HYGENE, DRESS ESTABLISH RAPPORT (MOOD, ENVIRONMENT, TIME OF DAY)ESTABLISH RAPPORT (MOOD, ENVIRONMENT, TIME OF DAY) HAND SHAKE, EYE CONTACTHAND SHAKE, EYE CONTACT LIMITED SMALL TALKLIMITED SMALL TALK USE SAMPLE OR BROCHURE AS LEAD-INUSE SAMPLE OR BROCHURE AS LEAD-IN

#4 NEED ASSESSMENT SITUATIONAL QUESTIONS: SO HOW MANY TIMES HAS IT BROKEN DOWN?? PROBLEM DISCOVERY QUESTIONS: HAS SERVICE/REPAIR BEEN ADEQUATE? PROBLEM IMPACT QUESTIONS: IF IT BROKE DOWN HALF AS MUCH WOULD THAT MAKE A DIFFERENCE? CONFIRMATIONARY QUESTIONS: MAY I TELL YOU ABOUT AN AFFORDABLE SOLUTION TO THIS …

REMEMBER! THE SEQUENCE MATTERS: »DON’T USE OVERKILL »GET CONCURRANCE AND »PROCEED TO NEXT STAGE

#5 THE PRESENTATION FEATURES – CHARACTERISTICS OF THE PRODUCT OR SERVICE.FEATURES – CHARACTERISTICS OF THE PRODUCT OR SERVICE. ADVANTAGES – HOW THE FEATURE ENHANCES PRODUCT PERFORMANCEADVANTAGES – HOW THE FEATURE ENHANCES PRODUCT PERFORMANCE BENEFITS – DESCRIBE HOW THESE ADVANTAGES WILL HELP THE BUYER (IE. SOLVE HIS PROBLEM).BENEFITS – DESCRIBE HOW THESE ADVANTAGES WILL HELP THE BUYER (IE. SOLVE HIS PROBLEM). PRODUCT DEMONSTRATIONS – LAPTOPS, BROCHURESPRODUCT DEMONSTRATIONS – LAPTOPS, BROCHURES PREPARED SALES PRESENTATIONS (DOG & PONY SHOWS) HAVE LIMITED APPLICATION (TOO INFLEXIBLE)

DEVELOPING PRESENTATIONS K.I.S.S. (Keep It Simple Stupid)K.I.S.S. (Keep It Simple Stupid) TALK THE PROSPECTS LANGUAGETALK THE PROSPECTS LANGUAGE STRESS PRODUCTS APPLICATION TO CLIENT’S SPECIFIC NEED.STRESS PRODUCTS APPLICATION TO CLIENT’S SPECIFIC NEED. ESTABLISH & MAINTAIN CREDIBILITY.ESTABLISH & MAINTAIN CREDIBILITY.

#6 MEETING OBJECTIONS –LISTEN –CLARIFY –RESPECT / EMPATHIZE –RESPOND

PRICE OR VALUE OBJECTIONS (WORTH THE COST)(WORTH THE COST) OFFER PRICE/VALUE COMPARISON OF ALTERNATIVE SOLUTIONSOFFER PRICE/VALUE COMPARISON OF ALTERNATIVE SOLUTIONS OR COST OF NOT DOING IT!OR COST OF NOT DOING IT!

PRODUCT SERVICE OBJECTIONS CASE HISTORIESCASE HISTORIES DEMONSTRATIONDEMONSTRATION TRIALTRIAL TESTIMONIALSTESTIMONIALS

HIDDEN OBJECTIONS KEEP ASKING QUESTIONS TO TRY AND ISOLATE THE OBJECTIONKEEP ASKING QUESTIONS TO TRY AND ISOLATE THE OBJECTION INVALID OBJECTIONS DISARMDISARM HUMOURHUMOUR

#7 GAIN COMITTMENT PLAN REALISTIC OBJECTIVES FOR EACH CALL PLAN REALISTIC OBJECTIVES FOR EACH CALL ASK FOR COMMITMENTASK FOR COMMITMENT CLOSESASSUMPTIVESPECIAL-OFFER SUMMARY CLOSE

#8 FOLLOW UP BE THERE AT THE TIME OF DELIVERY! THE FIRST STEP IN BUILDING CUSTOMER LOYALTY

Always remember… On average it takes four calls to ‘close’ a sale.On average it takes four calls to ‘close’ a sale. Each call costs an average of $ Each call costs an average of $

1.Are honest 2.Understand general business and economic trends, as well as the buyer's business 3.Provide guidance throughout the sales process 4.Help the buyer to solve problems 5.Have a pleasant personality and a good professional appearance 6.Coordinate all aspects of the product and service to provide a total package Buyers prefer to deal with salespeople who:

WHERE THE BUYER IS AT Mental States –Assume the buying process is essentially similar for most buyers –Often Buyers CAN BE led through certain mental states –AIDA (attention, interest, desire, and action)

THE BUYER’S PATH Attention Interest Interest Conviction Conviction Desire Desire Action Action

A BUYER’S NEED STATE Need Satisfaction –Based on the notion that the customer is buying to satisfy a need (once they realize they have one!) –Salesperson uses questioning, probing tactic to uncover / illustrate important buyer needs

Problem Solving Selling OFTEN THE SALE SOLVES A PROBLEM THAT THE BUYER HAD DefineProblem GenerateAlternativeSolutions ContinueSellinguntilPurchaseDecision EvaluateAlternativeSolutions

Long-term Ally Consultative Selling Strategic Orchestrator Business Consultant The process of helping customers reach their strategic goals by using the products, service, and expertise of the selling organization.

SUCCESFUL SELLING ~ SELLING SUCCESS Salesperson Attributes Possess Excellent Communication Skills Understand Buyer Behavior Be Trustworthy and Behave Ethically To be successful in today’s business environment, salespeople must have a solid relationship building foundation. They must:

Don’t let the term “Relationship Selling” miss lead you… The “relationship” is not a personal one, though it may evolve to be – It is business based and initiated & built solely from superior products & services. Selling on friendship alone is dead. (see Death of a Salesman)

Arthur Miller's 'Death of a Salesman' … the American dream of success … was in serious trouble for Willy Loman … He believed in the myth that success was based on popularity, personality and personal attractiveness. "Be liked and you will never want." and "... personality always wins the day."

Selling Strategy In order to be successful in today’s business environment, salespeople must also think and act strategically. The must develop strategies for: Their Sales Territory Each Sales Call Each Customer

The Sales Process -1 Salesperson Attributes Prospecting Pre-approach Presentation Planning Approaching the Customer Developing Customer Relationships Initiating Customer Relationships Enhancing Customer Relationships

The Sales Process -2 Salesperson Attributes Sales Presentation Delivery Earning Customer Commitment Developing Customer Relationships Initiating Customer Relationships Enhancing Customer Relationships

Adding Value through Follow-up, Self-leadership, and Teamwork The Sales Process - 3 Salesperson Attributes Developing Customer Relationships Initiating Customer Relationships Enhancing Customer Relationships

A Brief Review of Personal Selling The Nature (Levels) Of Personal Selling –Provider – takes order & delivers –Persuader - minor persuasion –Prospector – pro-active solicitation –Problem solver – finds best fit for customer’s needs –Procreator – creates best fit for customer’s needs.

New Roles Symbiotic relationship thru expertise Surveying – increase knowledge of customers (expert)Surveying – increase knowledge of customers (expert) Mapmaking – plan solutions for customer & sell same.Mapmaking – plan solutions for customer & sell same. Guiding – ID opportunities & solutions for customer.Guiding – ID opportunities & solutions for customer. Fire starting – engage & direct customers to desired solution.Fire starting – engage & direct customers to desired solution.

Personal Selling Responsibilities Locating perspective customers (prospecting)Locating perspective customers (prospecting) Qualified leads decision-maker, etc.Qualified leads decision-maker, etc. Determining customer’s needs / wants.Determining customer’s needs / wants. Recommending a solution.Recommending a solution. Show product / service attributes.Show product / service attributes. Close the sale – hardest part.Close the sale – hardest part. Follow up & serviceFollow up & service

Evaluating the Personal Selling Effort Based on sales criteria.Based on sales criteria. % growth / area% growth / area New accountsNew accounts New account typesNew account types New lines / packagesNew lines / packages

Criteria for Evaluating Personal Selling Level & quality of trade / competitive feedback.Level & quality of trade / competitive feedback. Level & quality of trade / consumer acceptance of promo materials & mechanics.Level & quality of trade / consumer acceptance of promo materials & mechanics. Programme implementation – the quality & quantity of promo presentation, execution / merchandising.Programme implementation – the quality & quantity of promo presentation, execution / merchandising.

Advantages of Personal Selling –Facilitate two-way interaction –Tailoring the message. –Fewer distractions –Involvement in the decision process – consultative selling. –Source of research info. – Firm’s eyes & ears.

Disadvantages of Personal Selling Inconsistent messagesInconsistent messages Sales / marketing conflicts (corp. Politics)Sales / marketing conflicts (corp. Politics) High costHigh cost Poor reachPoor reach Potential ethical problems SR’s do anything to get the sale.Potential ethical problems SR’s do anything to get the sale.

Relationship Marketing An organization’s effort to develop a long term, cost-effective link with customersAn organization’s effort to develop a long term, cost-effective link with customers For mutual benefit.For mutual benefit.

Purchase decisions are not always rationally based.