Module 3 Personal Selling: Approaches and Process 1

CLASSIFICATION OF PERSONAL SELLING APPROACHES Stimulus-Response Selling (Figure 3.1) Continue Process until Purchase Decision Salesperson Provides Stimuli Buyer Responses Sought 9

CLASSIFICATION OF PERSONAL SELLING APPROACHES Mental-States Selling Attention Interest Desire Action Conviction 10

CLASSIFICATION OF PERSONAL SELLING APPROACHES Need-Satisfaction Selling (Figure 3.2) Present Offering to Satisfy Buyer Needs Continue Selling until Purchase Decision Uncover and Confirm Buyer Needs 11

CLASSIFICATION OF PERSONAL SELLING APPROACHES Problem Solving Approach to Selling (Figure 3.3) Continue Selling until Purchase Decision Generate Alternative Solutions Evaluate Alternative Solutions Define Problem 12

CLASSIFICATION OF PERSONAL SELLING APPROACHES Consultative Selling The process of helping customers reach their strategic goals by using the products, service, and expertise of the selling organization. Three Primary Roles: Strategic Orchestrator Business Consultant Long-term Ally 13

Sales Process Model (Figure 3.4) Salesperson Attributes Initiating Customer Relationships Developing Customer Relationships Enhancing Customer Relationships Selling Strategy 16

The Sales Process The sales process is increasingly being viewed as a relationship management process Developing trust between customer and salesperson is an essential part of this process (via salesperson attributes) Recognizing and providing for the customer's needs is another part of this process The version of the sales process covered here suggests that salespeople must have certain attributes to develop trust in their customers and that salespeople should adapt their selling strategy to fit the situation

Salesperson Attributes Customer Oriented Honest Dependable Competent Likable

Selling Strategy Sales Territory Each Customer Each Sales Call

Initiating Customer Relationships Prospecting Methods (Exhibit 3.3) External Sources: Referral Approach Community Contact Contact Organizations Introduction Approach Noncompeting Salespeople Cultivate Visible Accounts Internal Sources: Examine Records Inquiries to Advertising Phone/Mail Inquiries Personal Contact: Personal Observation Cold Canvassing Miscellaneous: Hold/Attend Trade Shows Bird Dogs Sales Seminar 9

Initiating Customer Relationships Screening Criteria Compatibility Accessibility Eligibility Authority Profitability 10

Initiating Customer Relationships Prospecting Issues Which method works best? Cold-call reluctance Teleprospecting 11

Initiating Customer Relationships Pre-call Planning Preapproach Gathering information about the prospect that will be used to formulate the sales presentation Sales Presentation Planning Decide on presentation format Decide on sales mix 12

Sales-Presentation Formats Canned Sales Presentation Pros Logical Complete Minimizes sales resistance by anticipating prospects objections Can be used by an inexperienced salesperson Cons Unable to tailor message to the prospect Does not handle interruptions well Hard to use with broad product line May alienate buyers 13

Sales-Presentation Formats Organized Sales Presentation Organizes the key points into a planned sequence that allows for adaptive behavior Feedback from buyer is encouraged Con Requires a salesperson with more product knowledge and selling experience 14

Sales-Presentation Formats Sales Proposal Used in competitive bidding situations and when dollar value of sale is large Pros Written word is usually accepted as being more credible Technical information, pricing data, and perhaps a timetable are available for review 15

Sales Mix Model (Figure 3.5) Presentation Pace Presentation Scope Prospect Two-Way Communication Depth of Inquiry Use of Visual Aids

Approaching the Customer Getting the appointment Starting the sales call 21

Developing Customer Relationships Sales Presentation Delivery Build Credibility Achieve Clarity Address Customer Concerns

Developing Customer Relationships Gaining Customer Commitment Avoid high-pressure sales techniques Seek commitment if prospect has voiced no concerns Seek commitment if prospect concerns have been adequately addressed Avoid “early and often” mentality Suggest a specific course of action 22

Relationship Enhancement Activities Entering orders Expediting orders Installing the product or service Training customer personnel Resolving complaints Correcting billing errors 31