Steps in personal
Selling process
Personal Selling consists of the following steps.
1. Pre-sale preparation: The first step in personal selling is the
selection, training and motivation of salespersons. The salespersons
must be fully familiar with the product, the firm, the market and the
selling techniques. They should be well-informed about the competitor's
products and the degree of competition. They should also be acquainted
with the motives and behavior of prospective buyers.
Personal Selling consists of the following steps.
1. Pre-sale preparation: The first step in personal selling is the selection, training and motivation of salespersons. The salespersons must be fully familiar with the product, the firm, the market and the selling techniques. They should be well-informed about the competitor's products and the degree of competition. They should also be acquainted with the motives and behavior of prospective buyers.
2. Prospecting : It refers to locating or searching out prospective buyers who have the need for the product and the ability to buy it. Potential customers may be spotted through observation, enquiry and analysis of records of existing customers. Social contacts, business associations and dealers can be helpful in the identification of potential buyers.
3. Approaching : Before calling on the prospects, the salesperson should fully learn their number, needs, habits, spending capacity, motives, etc. Such knowledge helps in selecting the right sales appeal. After such learning, the salesperson should approach the customer in a polite and dignified way. He should introduce himself and his product to the customer. He should greet the customer with a smile and make him feel at home. He should introduce himself and his product to the customer. In case he is busy with some other customer, he should assure the new customer that he would be attended very soon. The salesperson has to be very careful in his approach as the first impression is the last impression.
5. Demonstration: In order to maintain customer's interest and to arouse his desire, the sales-person must display and demonstrate the product. He has to explain the utility and distinctive qualities of the product so that the prospect realizes the need for the product to satisfy his wants. He should not be in a hurry to impress the customer and should avoid controversy. He may suggest uses of the product and may create an impulsive urge to possess the article by appealing to human instincts.
6. Handling objections: A sale cannot be achieved simply by creating interest and desire. Every customer wants to make the best bargain for the money he is spending. Presentation and demonstration of the product are likely to create doubts and questions in his mind. The salesman should clear all doubts and objections without entering into a controversy and without losing his temper. Testimonials, money-back guarantee, tact and patience are popular means of winning over s hesitant buyers. The salesman should convince the customer that he is making the best use of his money by purchasing the product. For this purpose, the salesman should prove the superiority of his product over the competitive products. He should not lose patience if the customer puts too many queries and takes time in arriving at any decision. If the customer does not buy even after meeting rejections, the salesman should let him go without showing temper. He must believe in the universal rule that the customer is always right.
7. Closing the sale: This is the climax or critical point in the personal selling process. Completing the sale seems to be an easy task but inappropriate handling of the customer can result in loss of sale. The salesman should not force the deal but let the customer feel that he has made the final decision. He should guide the customer in making the choice without imposing his own view. Some adjustment in price or other concession may sometimes be necessary for a successful closing. The salesman should show the same interest in the customer which he exhibited during approach stage. Sales should be closed in a cordial manner so that the customer feels inclined to visit the shop again. In closing the sale, the article should be packed properly and handed over to the customer with speed and accuracy. Once the customer has purchased the article, the salesman should show and suggest an allied product. For instance, he may suggest socks, ties, handkerchiefs, vests, etc., to a customer purchasing a shirt. This is known as additional sales and requires great skill and tact.
8. Post-sale follow-up : It refers to the activities undertaken to ensure that the customer is satisfied with the article and the firm. These activities include installation of the products, checking and ensuring its smooth performance, maintenance and after-sale service. It helps to secure repeat sales identify additional prospects and to evaluate salesman's effectiveness
SELLING PROCESS
All selling process contain the same basic steps, though the detail
of each step and time required to complete it will vary according to the
product that is being sold. For example: a door to door sales
representative may go through all the steps from prospecting to closing of
sale in a matter of ten to fifteen minutes in contrast, the selling process
for computer or electronic typewriter may take several visits, even years,
for getting an order.
2.5.1 Prospecting
The selling process begins with prospecting or finding qualified
potential customers. Except in retail selling, it is unlikely that customers
will come to the sales person. In order to sell the product, the sales
person must seek out potential customers, prospecting involves two
major activities-
(a) identifying potential customers also known as prospects; and
(b) qualifying them in order to determine if they are valid
prospects.
(a) Identifying prospects
32
The identification of potential customers is not an easy job,
especially for a new sales person. Rejection rate is quite high and
immediate payoffs are usually minimal. In some consumer goods
businesses, identification of prospects usually come from friends and
acquaintances, other sales people, former customers, present customers
etc. Few of the best sources and techniques for finding prospects are
discussed below.
Present customers: The best source of prospects is usually the
sales person’s existing satisfied customers. It is much easier to sell
additional goods and services to existing customers than to attract new
customers. Indian companies are using this method of selling
successfully. For example person or an organization who has purchased
a portable typewriter from an office automation product company and is
pleased with it is usually more receptive to purchase a bigger typewriter
and similar product from the same company than someone else. This is
the main reason, present customers should get first priority by the
company when new products and services are introduced.
Endless chain: This is also an effective prospecting tactics. In this
method companies use satisfied customers as source of referrals. Sales
representatives ask current customers for names of friends or business
associates who might need similar products or services. Then, as the
sales person contacts and sells to these prospects, more referrals are
solicited. In this way the process continues further.
Centre of Influence: Another effective prospecting technique
based on referrals is the center of influence approach. A center of
influence is a person with information about other people or influence
33
over them that can help a sales person identify good prospects. Some
frequently used centers of influences are housewives, bankers, local
politicians etc.
Spotters: Some companies use spotters as a source for prospecting
potential customers. Spotters are usually ‘sales trainees’ who help sales
person identifying prospects, thus saving time and qualifying sales lead.
Cold call: Cold call is also known as unsolicited sales calls. This
prospecting techniques involves knocking on doors. The sales person
makes contact with a potential customers, introduces himself or herself,
and asks if there is a use for the product or service. This technique is
utilized by the sales person when they have time available between
scheduled appointments.
Directories: A wide variety of directories are full of prospect. The
classified telephone directory is the most obvious one. A sales person
may also find that membership directories of trade associations,
professional societies, and civic and social organizations are good sources
for prospects.
Mailing lists: In India, specialized companies compile lists of
individuals and organizations for direct mail advertisers. These lists may
also be used to identify sales prospects. The major advantages of mailing
list are that they are often more current and more selective than
directories.
Trade shows and exhibitions: A cost effective way to make
personal contacts and locate prospective buyer is to participate in trade
shows and exhibitions. Now a days more and more companies are
34
increasing their participation in these shows and exhibitions to
company’s booth by mailing invitations or promising a gift. Advance
announcements sent to trade publications may also help to attract
prospects. In view of the rising costs of personal selling trade shows have
become an increasingly important source of prospecting. India
International Trade Fair organized by Trade Fair Authority of India every
year provides a good example of usage of trade shows for prospecting.
(b) Qualifying prospects
Once the sales person has identified potential customers, he or she
must qualify them to determine, if they are valid prospects. Unless this is
done, time and energy is wasted in trying to sell to people who cannot or
will not purchase the product or service.
There are several factors to consider while qualifying a prospect.
One approach to qualifying often called MAN (Money, Authority and Need)
approach is given below:
Money: Does the prospect have the money or resources to
purchase a product or service? Ability to pay is very critical factor in
qualifying a prospect. The sales people must be familiar with financial
resources of a prospect.
Authority: Does the prospect have the authority to make
commitment? This is a particular concern when dealing with corporation,
government agencies or other large organizations. Even while selling to a
married couple, it may be difficult to identify who actually makes the
purchase decision. A sales person must identify the key decision maker
early to economise on selling time more effectively.
35
Need: Does the prospect need the product or service? If a sales
person cannot establish that the customer will benefit from purchasing a
product or service, there is no reason to waste a sales call. The prospect
either will refuse the offer or will end up dissatisfied with the purchase.
Before proceeding further the sales person should first appraise whether
money, authority and need exist with the prospect.
2.5.2 Preparation
After a prospect has been identified and qualified, the sales person
prepares for the sale of product or service. The preparation stage involves
the two key activities i.e. Pre-approach and Call Planning.
(a) Pre-approach
The pre-approach step includes all the information gathering
activities necessary to learn relevant facts about the prospect and his or
her needs and situations.
Four necessary steps of pre-approach are:
1. It should disclose the party need and ability to buy.
2. It should provide information that will enable the seller to
tailor the presentation to the prospect.
3. It should provide information that may keep the sales person
from making serious tactical errors during the presentation.
4. Finally, a good pre-approached increases the sales person
confidence and makes him confident to handle whatever may
arise during the sales.
36
(b) Call planning
Call planning involves a specific planning sequence. The sales
person defines the objective of the call, devise a selling strategy to achieve
this objective, and makes the appointments. The primary objective of any
sales effort is to get an order. For some sales call intermediate objectives
may be needed. Some examples of intermediate objectives are:
• To obtain more information about the prospect.
• To relate the prospects needs and concerns to features and
benefits of the product or service.
• To obtain permission for demonstration of the product.
• To introduce a new distributor.
The sales person must develop a strategy, or course of action to
achieve his or her objective. Careful consideration of the prospect’s
background and needs is required in order to able to formulate a tailor
made strategy appropriate for the prospect. Since sales calls are costly,
they should be arranged in advance. Cold calls i.e. calls without specific
appointment may be appropriate for introducing the sales person or
dropping off information. This method is generally inefficient for selling
most products and services and is not consistent with modern
professional selling.
2.5.3 Presentation
After establishing rapport with the prospects through calls, the
sales person proceeds to the formal sales presentation. The objective of
the presentation is to explain how the product meets the special needs of
the consumer. The job of the sales person is to inform the prospect about
37
the characteristics, capabilities and availability of goods and services that
are for sale. In order to ensure that the presentation is understood by the
prospect, the sales person should be clear in his/her communication.
Presentation should also be interesting enough to keep the attention of
the prospect focused on the proposal.
Sales presentations are classified into the different categories:
Fully automated, Semi-automated, Memorized, Organized, and
Unstructured.
Fully automated: The fully automated presentation is the most
highly structured approach, based on film or slide presentations. The
sales person simply answer questions or clear up doubts. e.g. selling life
insurance to the rural or semi-urban prospects.
Semi-automated: In this approach, the sales person reads from
brochures or literatures, adding comments to the prepared materials
when necessary. A common example is selling of pharmaceutical
products by medical representatives.
Memorized: In memorized presentation, company message is
presented, with few changes initiated by the sales person.
Organised presentation: The most popular and often the most
effective sales presentation method is the organized presentation. With
this method the sales person has complete flexibility in oral
communication but follows a company prepared outline or checklist. The
organized approach best exemplifies the selling process in which
customers are moved through four stages to a purchase decision; i.e.
attention, interest, desire and action (AIDA).
38
Unstructured presentations: (Also referred to as problem solving)
In this approach, the buyer and seller together explore the problems that
are the real sources of the company’s needs. Although unstructured
presentations are often effective and widely used, they have a number of
limitations. Such presentations tend to be not too well-focused. As a
result, points are often missed and time is wasted. Further, sales person
do not usually anticipate objections but may have to face surprise
complaint from the prospects. Because it is difficult to teach sales person
how to use the unstructured method, the problem solving presentation
seems best suited to experienced, sales person who are selling to
established customers.
Sales presentation comprises of two distinct activities, approach
and demonstration.
a) Approach
When the sales person has the name of the prospect and adequate
pre-approach information, the next step is the actual approach. It
frequently makes or breaks the entire presentation. If the approach fails,
the sales person often does not get a chance to give a presentation or
demonstration. It gets the prospect attention, it immediately inspires
interest in hearing more about the proposition, and it makes easy
transition into the demonstration phase.
Four basic approaches are in common use:
1. The introductory approach, the sales person introduces
himself to the prospect and states what company he
represents.
39
2. The product consists of handling the product to prospect
with little conversation. It can be most effective when the
product is unique and creates interest on sight.
3. The sales person starts the sale in a consumer-benefit
approach by informing the prospect of what the firm can
provide in benefits. In other words, directs the prospects
attention toward the benefits the firm has to deliver.
4. Lastly, referral approach successful in getting an audience
with prospect who is difficult to see directly. It consists of
obtaining the permission of a past or present customer to
use his or her name as a reference in meeting a new
prospect.
(b) Demonstration
The demonstration is the core of the selling process. The sales
person actually transmits the information and attempts to persuade the
prospect through product demonstration to make a customer.
Two factors should be taken into consideration in preparing an
effective product demonstration:
i) The demonstration should be carefully rehearsed to reduce
the possibility of even a minor malfunction.
ii) The demonstration should be designed to give customers
‘hand on’ experience with the product wherever possible. For
example an industrial sales representative might arrange a
demonstration before the purchaser’s technical personnel.
40
2.5.4 Handling objections
All sales person confront sales resistance i.e. actions or statements
by a prospects that postpone, hinder or prevent the completion of the
sale. Normally sales resistance takes the form of an objection which can
be classified as stated or hidden. Prospects may state their objections to
a proposition openly and give the sales person a chance to answer them.
This is an ideal situation because everything is out in the open and the
sales person does not need to read the prospect’s mind. Unfortunately, in
many instances prospects hide their real reasons for not buying. Beside
having hidden objections, their stated objection may be phoney. Unless
one can determine the real barrier to the sale one shall not be able to
overcome it. There are two major techniques for discovering hidden
objections. One is to keep the prospect talking by asking probing
questions. The other is to use insights gained through experience in
selling the product, combined with a knowledge of the prospects
situation, to perceive the hidden objection. Often objection to price and
product are also faced by sales person either in a form of unaffordable or
too high price. Product objections can be answered best when sales
people have extensive product knowledge of both their own products and
competitors. Many times prospects may be misinformed or may not
understand some of the technical aspects of the proposition. In this case,
the sales person should provide additional information. Even the
prospects objections can be met simply and effectively by altering the
product to suit the customer.
41
2.5.5 Closing
After having answered and overcome objections, it is the stage for
sales person to ask for the order from the prospects. The entire effort is
wasted unless the sales person can get the prospect to agree to buy the
product. There are several closing techniques which are being used by
sales person in India. Sales person should select among these technique
one that fits the specific prospect and selling situation. Now we would
discuss few effective closing techniques. In action close technique the
sales person take an action that will complete the sale e.g. in case of high
priced products like Motorcar, photocopier or industrial product the sales
person may negotiate with the financial institution for financial
assistance for the prospects.
The gift close technique provides the prospect with an added
incentive for taking immediate buying action. In one more yes close
techniques, the sales persons restates the benefits of the products in a
series of questions that will result in positive responses by the prospects.
The process may result in an order.
The direct close is clear and simple technique, many sales persons
feel that this is the best approach for closing, especially if there are
strong positive buying motives, the sales person will summarise the
major points that were made during presentation to the prospects prior
to asking for the sale.
Experienced sales people always try to close early. If they are not
successful, they continue the presentation and then try a different
closing technique. Good sales person know that if they have successfully
42
completed all of the earlier steps, then the prospect is worth an extra
effort at closing. In most cases this simply means switching to a different
type of close. Closing is the most important aspect of the sales process.
Unless the sales person can close the sale, the other steps in the sales
process are meaningless.
2.5.6 Follow-up
The selling process is not completed by merely making the sale, as
generally assumed by many sales person. After sales activities are
important part of the whole selling process. Effective sales-follow-up
reduces the buyer’s doubt about the product or services and improves
the chance that the person will buy again in the future. In addition to
post-sale activities, sales person are also required to maintain good customer relations. Now-a-days many companies are evolving specific policies and practices to ensure that customer’s needs are not neglected. No matter how efficient a company is, there are always some customer complaints.
The complaint should be taken seriously and handled with concern. The customer must know that the company cares about maintaining good customer relations. Reasonably frequent contacts with the present customers are, an expected part of the sales person’s job. For important customers, personal visit are appropriate. Letters, notes, phone calls, greetings are also good ways to keep in touch with customers. Many good business house also offer customer newsletter. Successful sales person never stop serving customers. In addition to handling complaints, they keep customer informed about the latest
43
products or services, fulfil reasonable request, and provide other forms of assistance. The sales people should also appreciate the customer by thanking customers for their business. Small gifts can be given after the sale and at appropriate times during the year. Sales person should try to make self-analysis for evaluating their own selling performance and methods. A Sales person should analyse every call to determine what factors influenced its eventual outcome. Self-analysis is a very useful tool in improving overall sales effectiveness.
All selling process contain the same basic steps, though the detail
of each step and time required to complete it will vary according to the
product that is being sold. For example: a door to door sales
representative may go through all the steps from prospecting to closing of
sale in a matter of ten to fifteen minutes in contrast, the selling process
for computer or electronic typewriter may take several visits, even years,
for getting an order.
2.5.1 Prospecting
The selling process begins with prospecting or finding qualified
potential customers. Except in retail selling, it is unlikely that customers
will come to the sales person. In order to sell the product, the sales
person must seek out potential customers, prospecting involves two
major activities-
(a) identifying potential customers also known as prospects; and
(b) qualifying them in order to determine if they are valid
prospects.
(a) Identifying prospects
32
The identification of potential customers is not an easy job,
especially for a new sales person. Rejection rate is quite high and
immediate payoffs are usually minimal. In some consumer goods
businesses, identification of prospects usually come from friends and
acquaintances, other sales people, former customers, present customers
etc. Few of the best sources and techniques for finding prospects are
discussed below.
Present customers: The best source of prospects is usually the
sales person’s existing satisfied customers. It is much easier to sell
additional goods and services to existing customers than to attract new
customers. Indian companies are using this method of selling
successfully. For example person or an organization who has purchased
a portable typewriter from an office automation product company and is
pleased with it is usually more receptive to purchase a bigger typewriter
and similar product from the same company than someone else. This is
the main reason, present customers should get first priority by the
company when new products and services are introduced.
Endless chain: This is also an effective prospecting tactics. In this
method companies use satisfied customers as source of referrals. Sales
representatives ask current customers for names of friends or business
associates who might need similar products or services. Then, as the
sales person contacts and sells to these prospects, more referrals are
solicited. In this way the process continues further.
Centre of Influence: Another effective prospecting technique
based on referrals is the center of influence approach. A center of
influence is a person with information about other people or influence
33
over them that can help a sales person identify good prospects. Some
frequently used centers of influences are housewives, bankers, local
politicians etc.
Spotters: Some companies use spotters as a source for prospecting
potential customers. Spotters are usually ‘sales trainees’ who help sales
person identifying prospects, thus saving time and qualifying sales lead.
Cold call: Cold call is also known as unsolicited sales calls. This
prospecting techniques involves knocking on doors. The sales person
makes contact with a potential customers, introduces himself or herself,
and asks if there is a use for the product or service. This technique is
utilized by the sales person when they have time available between
scheduled appointments.
Directories: A wide variety of directories are full of prospect. The
classified telephone directory is the most obvious one. A sales person
may also find that membership directories of trade associations,
professional societies, and civic and social organizations are good sources
for prospects.
Mailing lists: In India, specialized companies compile lists of
individuals and organizations for direct mail advertisers. These lists may
also be used to identify sales prospects. The major advantages of mailing
list are that they are often more current and more selective than
directories.
Trade shows and exhibitions: A cost effective way to make
personal contacts and locate prospective buyer is to participate in trade
shows and exhibitions. Now a days more and more companies are
34
increasing their participation in these shows and exhibitions to
company’s booth by mailing invitations or promising a gift. Advance
announcements sent to trade publications may also help to attract
prospects. In view of the rising costs of personal selling trade shows have
become an increasingly important source of prospecting. India
International Trade Fair organized by Trade Fair Authority of India every
year provides a good example of usage of trade shows for prospecting.
(b) Qualifying prospects
Once the sales person has identified potential customers, he or she
must qualify them to determine, if they are valid prospects. Unless this is
done, time and energy is wasted in trying to sell to people who cannot or
will not purchase the product or service.
There are several factors to consider while qualifying a prospect.
One approach to qualifying often called MAN (Money, Authority and Need)
approach is given below:
Money: Does the prospect have the money or resources to
purchase a product or service? Ability to pay is very critical factor in
qualifying a prospect. The sales people must be familiar with financial
resources of a prospect.
Authority: Does the prospect have the authority to make
commitment? This is a particular concern when dealing with corporation,
government agencies or other large organizations. Even while selling to a
married couple, it may be difficult to identify who actually makes the
purchase decision. A sales person must identify the key decision maker
early to economise on selling time more effectively.
35
Need: Does the prospect need the product or service? If a sales
person cannot establish that the customer will benefit from purchasing a
product or service, there is no reason to waste a sales call. The prospect
either will refuse the offer or will end up dissatisfied with the purchase.
Before proceeding further the sales person should first appraise whether
money, authority and need exist with the prospect.
2.5.2 Preparation
After a prospect has been identified and qualified, the sales person
prepares for the sale of product or service. The preparation stage involves
the two key activities i.e. Pre-approach and Call Planning.
(a) Pre-approach
The pre-approach step includes all the information gathering
activities necessary to learn relevant facts about the prospect and his or
her needs and situations.
Four necessary steps of pre-approach are:
1. It should disclose the party need and ability to buy.
2. It should provide information that will enable the seller to
tailor the presentation to the prospect.
3. It should provide information that may keep the sales person
from making serious tactical errors during the presentation.
4. Finally, a good pre-approached increases the sales person
confidence and makes him confident to handle whatever may
arise during the sales.
36
(b) Call planning
Call planning involves a specific planning sequence. The sales
person defines the objective of the call, devise a selling strategy to achieve
this objective, and makes the appointments. The primary objective of any
sales effort is to get an order. For some sales call intermediate objectives
may be needed. Some examples of intermediate objectives are:
• To obtain more information about the prospect.
• To relate the prospects needs and concerns to features and
benefits of the product or service.
• To obtain permission for demonstration of the product.
• To introduce a new distributor.
The sales person must develop a strategy, or course of action to
achieve his or her objective. Careful consideration of the prospect’s
background and needs is required in order to able to formulate a tailor
made strategy appropriate for the prospect. Since sales calls are costly,
they should be arranged in advance. Cold calls i.e. calls without specific
appointment may be appropriate for introducing the sales person or
dropping off information. This method is generally inefficient for selling
most products and services and is not consistent with modern
professional selling.
2.5.3 Presentation
After establishing rapport with the prospects through calls, the
sales person proceeds to the formal sales presentation. The objective of
the presentation is to explain how the product meets the special needs of
the consumer. The job of the sales person is to inform the prospect about
37
the characteristics, capabilities and availability of goods and services that
are for sale. In order to ensure that the presentation is understood by the
prospect, the sales person should be clear in his/her communication.
Presentation should also be interesting enough to keep the attention of
the prospect focused on the proposal.
Sales presentations are classified into the different categories:
Fully automated, Semi-automated, Memorized, Organized, and
Unstructured.
Fully automated: The fully automated presentation is the most
highly structured approach, based on film or slide presentations. The
sales person simply answer questions or clear up doubts. e.g. selling life
insurance to the rural or semi-urban prospects.
Semi-automated: In this approach, the sales person reads from
brochures or literatures, adding comments to the prepared materials
when necessary. A common example is selling of pharmaceutical
products by medical representatives.
Memorized: In memorized presentation, company message is
presented, with few changes initiated by the sales person.
Organised presentation: The most popular and often the most
effective sales presentation method is the organized presentation. With
this method the sales person has complete flexibility in oral
communication but follows a company prepared outline or checklist. The
organized approach best exemplifies the selling process in which
customers are moved through four stages to a purchase decision; i.e.
attention, interest, desire and action (AIDA).
38
Unstructured presentations: (Also referred to as problem solving)
In this approach, the buyer and seller together explore the problems that
are the real sources of the company’s needs. Although unstructured
presentations are often effective and widely used, they have a number of
limitations. Such presentations tend to be not too well-focused. As a
result, points are often missed and time is wasted. Further, sales person
do not usually anticipate objections but may have to face surprise
complaint from the prospects. Because it is difficult to teach sales person
how to use the unstructured method, the problem solving presentation
seems best suited to experienced, sales person who are selling to
established customers.
Sales presentation comprises of two distinct activities, approach
and demonstration.
a) Approach
When the sales person has the name of the prospect and adequate
pre-approach information, the next step is the actual approach. It
frequently makes or breaks the entire presentation. If the approach fails,
the sales person often does not get a chance to give a presentation or
demonstration. It gets the prospect attention, it immediately inspires
interest in hearing more about the proposition, and it makes easy
transition into the demonstration phase.
Four basic approaches are in common use:
1. The introductory approach, the sales person introduces
himself to the prospect and states what company he
represents.
39
2. The product consists of handling the product to prospect
with little conversation. It can be most effective when the
product is unique and creates interest on sight.
3. The sales person starts the sale in a consumer-benefit
approach by informing the prospect of what the firm can
provide in benefits. In other words, directs the prospects
attention toward the benefits the firm has to deliver.
4. Lastly, referral approach successful in getting an audience
with prospect who is difficult to see directly. It consists of
obtaining the permission of a past or present customer to
use his or her name as a reference in meeting a new
prospect.
(b) Demonstration
The demonstration is the core of the selling process. The sales
person actually transmits the information and attempts to persuade the
prospect through product demonstration to make a customer.
Two factors should be taken into consideration in preparing an
effective product demonstration:
i) The demonstration should be carefully rehearsed to reduce
the possibility of even a minor malfunction.
ii) The demonstration should be designed to give customers
‘hand on’ experience with the product wherever possible. For
example an industrial sales representative might arrange a
demonstration before the purchaser’s technical personnel.
40
2.5.4 Handling objections
All sales person confront sales resistance i.e. actions or statements
by a prospects that postpone, hinder or prevent the completion of the
sale. Normally sales resistance takes the form of an objection which can
be classified as stated or hidden. Prospects may state their objections to
a proposition openly and give the sales person a chance to answer them.
This is an ideal situation because everything is out in the open and the
sales person does not need to read the prospect’s mind. Unfortunately, in
many instances prospects hide their real reasons for not buying. Beside
having hidden objections, their stated objection may be phoney. Unless
one can determine the real barrier to the sale one shall not be able to
overcome it. There are two major techniques for discovering hidden
objections. One is to keep the prospect talking by asking probing
questions. The other is to use insights gained through experience in
selling the product, combined with a knowledge of the prospects
situation, to perceive the hidden objection. Often objection to price and
product are also faced by sales person either in a form of unaffordable or
too high price. Product objections can be answered best when sales
people have extensive product knowledge of both their own products and
competitors. Many times prospects may be misinformed or may not
understand some of the technical aspects of the proposition. In this case,
the sales person should provide additional information. Even the
prospects objections can be met simply and effectively by altering the
product to suit the customer.
41
2.5.5 Closing
After having answered and overcome objections, it is the stage for
sales person to ask for the order from the prospects. The entire effort is
wasted unless the sales person can get the prospect to agree to buy the
product. There are several closing techniques which are being used by
sales person in India. Sales person should select among these technique
one that fits the specific prospect and selling situation. Now we would
discuss few effective closing techniques. In action close technique the
sales person take an action that will complete the sale e.g. in case of high
priced products like Motorcar, photocopier or industrial product the sales
person may negotiate with the financial institution for financial
assistance for the prospects.
The gift close technique provides the prospect with an added
incentive for taking immediate buying action. In one more yes close
techniques, the sales persons restates the benefits of the products in a
series of questions that will result in positive responses by the prospects.
The process may result in an order.
The direct close is clear and simple technique, many sales persons
feel that this is the best approach for closing, especially if there are
strong positive buying motives, the sales person will summarise the
major points that were made during presentation to the prospects prior
to asking for the sale.
Experienced sales people always try to close early. If they are not
successful, they continue the presentation and then try a different
closing technique. Good sales person know that if they have successfully
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completed all of the earlier steps, then the prospect is worth an extra
effort at closing. In most cases this simply means switching to a different
type of close. Closing is the most important aspect of the sales process.
Unless the sales person can close the sale, the other steps in the sales
process are meaningless.
2.5.6 Follow-up
The selling process is not completed by merely making the sale, as
generally assumed by many sales person. After sales activities are
important part of the whole selling process. Effective sales-follow-up
reduces the buyer’s doubt about the product or services and improves
the chance that the person will buy again in the future. In addition to
post-sale activities, sales person are also required to maintain good customer relations. Now-a-days many companies are evolving specific policies and practices to ensure that customer’s needs are not neglected. No matter how efficient a company is, there are always some customer complaints.
The complaint should be taken seriously and handled with concern. The customer must know that the company cares about maintaining good customer relations. Reasonably frequent contacts with the present customers are, an expected part of the sales person’s job. For important customers, personal visit are appropriate. Letters, notes, phone calls, greetings are also good ways to keep in touch with customers. Many good business house also offer customer newsletter. Successful sales person never stop serving customers. In addition to handling complaints, they keep customer informed about the latest
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products or services, fulfil reasonable request, and provide other forms of assistance. The sales people should also appreciate the customer by thanking customers for their business. Small gifts can be given after the sale and at appropriate times during the year. Sales person should try to make self-analysis for evaluating their own selling performance and methods. A Sales person should analyse every call to determine what factors influenced its eventual outcome. Self-analysis is a very useful tool in improving overall sales effectiveness.
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