1. Preparation and Process
Chapter 2
Personal Selling:
Preparation and Process

2. Learning Objectives
To understand psychology in selling, buying decision process and buying situations
To learn communication skills, sales knowledge, and sales related marketing policies
To understand personal selling process
To learn about negotiation

3. Psychology in Selling
Stimulus
(Sales Presentation)
Buyer’s decision
making process
Response
(buy or no buy)
If a sales person makes a presentation, the prospect may or may not buy
The above “buyer behaviour model” does not tell us the reasons of buying or not buying
To understand the psychological aspects of selling or buying, salespeople should study consumer or buyer behaviour, including buying process and situations

4. Buyer Decision Process
Need
recognition
Information
search
Evaluation of
alternatives
Purchase
decision
Postpurchase
behavior

5. Need Recognition & Information Search
The need can be triggered by internal stimuli when one of the person’s normal needs – hunger, thirst.
A need can also be triggered by external stimuli. e.g. word-of-mouth, advertisements.
The consumer can obtain information from any of several sources. These include personal sources, commercial sources, public sources
Commercial sources normally inform the buyer, but personal sources evaluate products for the buyer.

6. Evaluation of Alternatives & Purchase Decision
The consumer arrives at attitudes toward different brands through some evaluation procedure.
How consumer go about evaluating purchase alternatives depends on the individual consumer and the specific buying situation.
In some cases, consumers use careful calculations and logical thinking.
At other times, the same consumers do little or no evaluating; instead they buy on impulse and rely on intuition.
Two factors that affects the consumer’s purchase decision.
Attitudes of others.
Unexpected situational factors.

7. Post purchase Behavior
The answer to whether the buyer is satisfied or dissatisfied with a purchase lies in the relationship between the consumer’s expectations and the product’s perceived performance.
Almost all major purchases result in cognitive dissonance, or discomfort caused by post purchase conflict.
A satisfied customer tell 3 people about a good product experience, a dissatisfied customer gripes to 11 people.
Some 96 percent of unhappy customers never tell the company about their problem.

8. Buying Process of Consumers and Business Buyers
Five – stage model for household customers
Eight – stage model for business buyers
Problem / need recognition
Characteristics and quantity determination
Specification development
Information search / collection
Low involvement
High involvement
Supplier search and qualification
Obtain and analyse supplier proposals
Evaluate alternatives
Evaluation and selection of suppliers
Purchase decision
Attitude of others
Unanticipated situational
Selection of purchase order routine
Post – purchase behaviour
Performance feedback and post-purchase evaluation

9. Buying Situations Faced By
Household customers
Business Buyers
Routine decision-making
New task / New purchase
Limited decision-making
Modified rebuy / change in supplier
Extensive decision-making
Straight rebuy / Repeat purchase
Buying process and situations differ for household consumers and business buyers.
Consumers / Buyers may skip or reverse some stages in buying process. E.G. A consumer buying toothpaste

10. Knowledge of Sales and Sales-related Marketing Policies
Sales Knowledge
Marketing Policies
Company knowledge
Pricing and Payment policies
Product knowledge
Product policies
Customer knowledge
Distribution policies
Competitor knowledge
Promotional policies
Major reasons for giving above information / knowledge through training programmes to salespeople are:
increase their self-confidence
Meet customers’ expectations
Increase sales
Overcome competition

11. The Sales Process
As a part of selling activities, if salespeople follow the steps or phases shown below, their chances of success are far better.
Prospecting &
Qualifying
Preapproach /
Precall planning
Approach
Presentation &
Demonstration
Follow-up &
Service
Trail close /
Closing the sale
Overcoming
Objections
The sequence of above steps may change to meet the sales situation in hand.

12. Selling Process Prospecting: Identifying likely new customers
Leads
Developing lists of Potential Customers
Pre-approach (Qualifying)
Finding and analyzing information about prospects
Evaluating a prospect’s potential

13. Prospecting Qualifying
It is identifying or finding prospects i.e. prospective or potential customers.
Methods of prospecting or sales lead generation are: (1) referrals from existing customers, (2) company sources (website, ads., tradeshow)(3) external sources (suppliers, intermediaries, trade associations), (4) salespersons’ networking, (5) industrial directories, (6) cold canvassing
Qualifying
Companies qualify sales leads by contacting them by mail or phone to find their interests (or needs) and financial capacity.
Leads are categorized as: Hot, Warm, and Cool

14. Approaching The Prospect
HOW DO WE MAKE THE
INITIAL CONTACT & BUILD RAPPORT
There is only one time to make a first impression
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15. Preapproach Information gathering about the prospect.
Sources of information: the Internet, industrial directories, government publications, intermediaries, etc.
Precall planning
Setting call objectives
Tentative planning of sales strategy: which products, features and benefits may meet the customer needs

16. Approach Make an appointment to meet the prospect
Make favourable first impression
Select an approach technique:
Introductory
Customer benefit
Product
Question
Praise
The approach takes a few minutes of a call, but it can make or break a sale

17. Presentation and Demonstration
There are four components:
Understanding the buyer’s needs
Knowing sales presentation methods / strategies
Developing an effective presentation
Using demonstration as a tool for selling

18. Understanding the buyer’s needs
Firms and consumers buy products / services to satisfy needs
To understand buyer’s needs, ask questions and listen
In business situations, problem identification and impact questions are important
E.G.
Have you experienced any problems on quality and delivery from the existing supplies?
What impact the quality and delivery problems will have on your costs and customer satisfaction?

19. Knowing Sales Presentation Methods/Strategies
Firms have developed different methods / styles / strategies of sales presentation
Stimulus response method / canned approach.
It is a memorised sales talk or a prepared sales presentation.
The sales person talks without knowing the prospect’s needs. E.G. Used by tele-marketing people
Formula method / formulated approach.
It is also based on stimulus response thinking that all prospects are similar.
The salesperson uses a standard formula – AIDA (attention, interest, desire, and action).
It is used if time is short and prospects are similar.
Shortcomings are: prospects’ needs are not uncovered and uses same standard formula for different prospects.

20. Sales Presentation Methods (Continued)
Need – satisfaction method
Interactive sales presentation
First find prospect’s needs, by asking questions and listening
Use FAB approach: Features, Advantages, Benefits
Effective method, as it focuses on customers
Consultative selling method / Problem-solving approach
Salespeople use cross-functional expertise
Firms adopt team selling approach
It is used by software / consulting firms

21. Developing an Effective Presentation
Some of the guidelines are:
Plan the sales call
Adopt presentation to the situation and person
Communicate the benefits of the purchase
Present relevant and limited information at a time
Use the prospect’s language
Make the presentation convincing – give evidence
Use technology like multi-media presentation

22. Using Demonstration
Sales presentation can be improved by demonstration
Demonstration is one of the important selling tools EGs: Test drive of cars; demonstration of industrial products in use
Benefits of using demonstration for selling are:
Buyers’ objections are cleared
Improves the buyer’s purchasing interest
Helps to find specific benefits of the prospect
The prospect can experience the benefit

23. Selling Process Handling Objections Understand Concern
Questions
Reservations
Understand Concern
Counterarguments
Acknowledge concern
Clues to process

24. Overcoming Objections
IF HE HADN’T TOLD
ME WHAT HIS OBJECTION
WAS, I NEVER WOULD
HAVE BEEN
ABLE TO HELP!
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25. Overcoming Sales Objections / Resistances
Objections take place during presentations / when the order is asked
Two types of sales objections:
Psychological / hidden
Logical (real or practical)
Methods for handling and overcoming objections: (a) ask questions, (b) turn an objection into a benefit, (c) deny objections tactfully, (d) third-party certificate, (e) compensation

26. Selling Process Closing the Sale Closing signals Trial close
Asking the prospect to buy

27. Trial close and Closing the sale
Trial close checks the attitude or opinion of the prospect, before closing the sale (or asking for the order)
If the response to trial close question is favourable, then the salesperson should close the sale
Some of the techniques used for closing the sale are: (a) alternative-choice, (b) minor points, (c) assumptive, (d) summary-of-benefits, (e) T-account, (f) special-offer, (g) probability, and (h) negotiation

28. Selling Process Following Up Commitments met
Shipment
Performance
Satisfied customers rebuy & recommend

29. Follow-up and Service Necessary for customer satisfaction
Successful salespeople follow-up in different ways: For example,
Check order details
Follow through delivery schedule
Visit when the product is delivered
Build long-term relationship
Arrange warranty service

30. Negotiation
Salespeople, particularly in business to business selling, need negotiating skills
When to negotiate?
(a) When the buyer puts certain conditions for buying to the seller, (b) When agreement between the buyer and the seller is needed on several factors, (c) When the product is customised, (d) When the final price is to be decided
How to prepare for negotiation?
(a) planning, (b) building relationship, (c) purpose
Styles of negotiation
(a) I win, you lose, (b) Both of us win (or win-win style), (c) You win, I lose, and (d) Both of us lose