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Website: www.itc.ac.ug Phone: 0417 333 500

Professional Selling Skills

Refresher Session

4th May 2020

By: Donato Laboke, MCIM USB-ED

2SELLING PROCESS AND KEY MARKETING TERMS USED

Learning Objectives

➢Define terms used in selling

➢Differentiate between selling and marketing

➢Differentiate between Goods and Services

➢Explain the selling process

3‘Sale, Selling’ - Defined

• What is a sale: Is a transaction between a buyer and a seller where the buyer receives a product (goods or services) in exchange for a price (money)

• Selling is the art of persuading the consumer that; buying the product or service will benefit him or her

• Selling as a profession refers to the act of inducing a commercial transaction through inducing the purchase of a product, with an intent of earning remuneration.

4Selling vs Marketing

Selling Marketing

i. Emphasis on the product.

ii. More concern is about

profit made.

iii.Stresses on the needs of

the seller.

iv.Company first makes the

product then figures out

how to sell.

v. Planning is short term i.e.

in terms of today’s sales

and profits.

➢ Emphasis on the customers’

needs.

➢ More concern is about customer

satisfaction.

➢ Stresses on the needs of the

customer.

➢ Company first identifies

customers’ needs then figures

out how to make & deliver a

product that satisfy that need.

➢ Planning is long term i.e. in

terms of tomorrows’ sales and

future growth.

5

,

Services Defined

➢ Services include all economic activities whose output is not a physical

product, is generally consumed at the time it is produced and provides

added value in forms that are essentially intangible concerns of its first

purchaser.

➢ Services are provided by people, such as insurance, doctors,

lawyers, care workers, dentists, barbers and waiters.

6Marketing of Services

Services exhibit the following characteristics

• Intangible

• Inseparable from its producer

• Variable in its characteristics

• Perishable (Time factor of a service, its consumed as its provided)

• Dependent on the involvement of the customer in its production.

Discuss how to make them tangible

7The Sales Process - Defined

• Is a sequence of phases that a typical salesperson goes through to make a sale.

• It is important to stick to this well-defined process of making a sale particularly in insurance.

• It supports the saying that insurance is sold and not bought

• It also enables one to professionally sell the promise in insurance differently from the physical goods that are sold.

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THE PROCESS

9The Principles of Marketing

Learning Objectives

➢Understand Marketing

➢Explore the Evolution of Marketing Concept

➢Define the marketing mix

➢Explain the 7Ps in marketing

➢Explain the relevance of each of the 7Ps in insurance selling.

10Definitions of marketing

• It is a management process responsible for identifying, anticipating and

satisfying customer requirements profitably (CIM-UK)

• It is all about getting the right product or service to the customer at the right

price , at the right time(Kotler, CIM-UK)

• Marketing consists of individual and organisational activities that facilitate and

expedite satisfying exchange relationships in a dynamic environment through

creation, distribution, promotion and pricing of goods, services and ideas (Dibb,

etal)

11Importance of Marketing

Enables organisation to:

• Understand its customers and stakeholders better,

• Address competitor activities and market developments, and

• Effectively harness its capabilities

Overall sustainability of a profitable growth and relevant customer offering…

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The Marketing Mix

❑ The marketing mix refers to the set of actions, or tactics, that a company uses to promote

its brand or product in the market

❑ It refers to the tactical elements of the marketing strategy.

❑ It is the blending of the 7Ps of Marketing

13Marketing Mix Elements

They include the following:

1. Product

2. Price

3. Place

4. Promotion

5. Processes

6. People

7. Physical Evidence

14Promotion Mix

Promotion mix consists of the following elements:

1. Advertising

2. Personal selling

3. Sales promotion

4. Public relations

How do you understand Publicity/Brand Visibility?

15Example of physical evidence include:

• The building itself, its design, surroundings, parking, outside signage and branding, etc

• The interior of any service environment, including the design, equipment, internal signage, air conditioning.

• Packaging.

• Internet/web pages.

• Paperwork (such as letterheads, invoices, envelopes).

• Brochures.

• Furnishings.

• Signage (such as those on vehicles).

• Uniforms and employee dress.

• Business cards.

• Mailboxes.

• Stickers

• Policy Documents

16THE KEY SELLING TECHNIQUES

Learning Objectives

▪Demonstrate an understanding of successful

selling of insurance products.

▪Apply selling skills learnt to make a successful

sale of insurance products.

▪Answer questions in areas of professional selling of insurance products.

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Selling Techniques

• Methods you use as a salesperson to generate revenue / sales.

• They are developed over a long a long period of time.

• They are based on one’s experience.

• They are what differentiate salespersons.

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1. Attitude

• Its how you think and feel. How you approach yourself, your company, your product, your customer.

• Maintaining positive attitude is a must for a salesperson.

192. Product Knowledge

• Product Knowledge is paramount for any salesperson

• One must know, understand and be able to explain the following:

a) Product name

b) Why the product was developed – the gaps identified by the product developer

c) What needs the product seeks to satisfy

d) How well that product satisfies those needs

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3. Communication

• Communication is a key element in selling skills

• Its not so much what you say but how you say it.

• Its about the tone of voice, the choice of words, facial

expression, attitude

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4. Listening Skills

• A good communicator listens

• Active listening is a must for any salesperson if he is to succeed

in getting to understand the customer needs of his prospect

• Good listening creates a rapport with the speaker and gets them

to freely express themselves

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5. Building Rapport

❑ Developing a connection is still important in today’s sales environment.

❑ People still buy from people.

❑ Creating rapport with someone means connecting with them.

❑ You need to be able to speak your prospect’s language.

❑ You need to demonstrate that you understand the business problems they

face.

❑ Be a good storyteller – as long as it is relevant and can help you to connect

❑ Remember, Emotion always precedes Logic in the buying process

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6. Building relationships

❑ Building and maintaining healthy relationships to develop a

strong network.

❑ Networking will allow you to reach more prospects.

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• Good prospecting skills

• Advance your education

• Time Management

• Presentation – How you appear

to the prospect

• Support customer initiatives

• Persistence

• Organisational Skills

Other Selling Skills

• Focus

• Self Motivation

• Trust Building

• Ambitious

• Confident

• Hard working

• Disciplined

25MANAGING THE SALES PROCESS AND SYSTEM

1) To comfortably manage their selling process and work with various selling systems in the day to day business activity.

2) Discuss the personal selling, exhibitions, direct marketing

3) modern selling as critical sales/communication tools

4) Discuss modern selling and the key stages of the selling process

5) Discuss the approaches to sales management

6) Discuss the key pillars of building an effective sales force

7) Discuss how one can use Sales management and monitoring tools/systems i.e. Sales pipeline and Sale funnels

Learning Objectives

26Effective management of the selling process stages

1) Initial Contact

2) Establish Rapport

3) Agree an agenda

4) Get an up-front agreement to your terms

5) Establish who has authority and, if a complex sale, the buying process (procurement approach)

6) Ask ‘facts questions’

7) Ask issue questions

8) Present your features and benefits

9) Negotiate terms (Win-win negotiating)

10) Close the sale

11) The Follow-up

27Modern Selling Concept

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Sales Management

Managing the salesforces; setting sales objectives, recruitment and selection, training, motivation and compensation, evaluation of the sales team

29The sales management approach- Key Steps

i. Adopting a Marketing Strategy; sales direction

ii. Setting the Personal Selling objectives and actions

iii. Designing the salesforce i.e. determine size and structure

iv. Managing the salesforces; setting sales objectives, recruitment

and selection, training, motivation and compensation, evaluation

of the sales team

v. Evaluation and Control of the entire sales operation.

30Common sales management challenges

i. Geographic separation between sales managers & the field

ii. Repeated rejection; a common trait in selling

iii. The salesperson’s personality vs. the realities of the job

iv. Oversimplification of the task; as and missing the big picture

31Sales monitoring and management tools

Sales Pipeline; as a specific sequence of actions that a sales rep needs to take to move a prospect from new lead to paying customer.

32Sales monitoring and management tools

• Sales funnel; a visual representation of the steps required to sell your product or service.

• The sales funnel gives you a complete overview of where in the sales process your money is.

Prospects 100%

Pontential Leads 50%

Customer 5%

33Sales pipeline Vs Sales funnel (Difference?)

❑Both describe; the flow of the prospects through a sales process

clearly indicating the same stages.

❑Sales pipeline; focuses on the tactic or strategic actions

❑Sales funnel; visually presents the prospect conversion rate (Leads

dropping %) through similar stages,

34EMERGING TRENDS IN SELLING & MARKETING

By the end of this session, you will be able to:

• Appreciate emerging trends in selling of insurance as a result of changing consumer behaviour

• Demonstrate the understanding of role of technology in changing the selling and marketing of insurance products

• Answer questions concerning emerging trends in selling and marketing insurance products

Learning Objectives

35The face of emerging trends today;

• Marketing Specialization and use of Technologies

• Customers want it all

• Customer relationship marketing

• Educate and facilitate

• Move from mass marketing to fragmentation and segmentation

• Buyers are in the driver`s seat

• Automation is critical

• Heightened competition

• Globalisation

• Sales and marketing are converging

36COMMUNICATION IN SALES

Learning Objectives

➢Define Communication

➢Understand the various communication methods

➢Appreciate the various models in communication

➢Appreciate the importance of communication in Insurance

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Communication Defined

❑Communication is sharing of meaning through transmission of information

❑Marketing Communication is the transmission of persuasive information about a product, service or an idea, targeted at key stakeholders and consumers within a target market segment

❑Marketing communications centres on the Promotional Mix.

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i. To build relationships

ii. To give instructions

iii. To disseminate information

iv. To share ideas

v. To discuss and negotiate

vi. To create awareness

vii. To receive feedback

Communication Methods

• Post

• Telephone

• Email

• Face-to-face communication

• Print media / Newspapers

• TV Shows / documentaries

• Radio shows

Why Communicate

39Objectives of communication: The DRIP Model

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41Communication and “the AIDA” vs “the 5As’’ models

• In today's business environment the AIDA model which brings to light the customer path was developed as early as 1898 (E St. Elmo Lewis)

• In Marketing 4.0, Philip Kotler proposes a new framework to accommodate changes shaped by technology. Kotler’s proposed framework is the 5 As model that factors in Aware, Appeal, Ask, Act, Advocate

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5As Framework:

1# Aware

Consumers are passively exposed to brands, advertising and/or advocacy of influencers, friends and family.

4# Act

Purchase &

Usage of the product

Post-purchase services.

Focus on a great customer experience

To get repeat purchase/referrals

2# Appeal

Consumers either create short-term memory or amplify long-term memory.

Consumers short-list the brands that are the most memorable

3# Ask

Consumers research brands they short listed by collecting more information from the social media and other digital channels, traditional media channels, friends and family and the brands themselves.

Build ask-and-advocate relationships

5# Advocate

Encompasses loyalty, retention, repurchase and advocacy to others.

Consumers movement-online connectivity

Social pressure Groups

437. BUYER READINESS AND THE PURCHASE PROCESS

Learning Objectives

➢Appreciate how different organizations uses the marketing

mix to serve their customers

➢Understand the Buying Decision-Making Process

➢Understand the Buying Decision-Making Unit

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a) Customers do not buy products, they buy benefits. I do not want a packet of detergent. I want clean clothes.

b) Customers are not interested in the organization’s smart supply chain logistics; they wish to experience convenience with the right product, in the right place, at the right time and in the right condition for their use.

Customers & Buying Decisions

45The buying decision-making process

Need recognition/

Problem-solving

Information

searchEvaluation of

alternatives The purchase

decision Post-purchase

evaluation

46The buying Decision-Making Unit

✓ This is the organ that makes buying decisions in a Business

environment

✓ It is a collection of individuals who participate in the process of

buying a product or products for an organization

✓ These roles range from initiators to the final user

47DMU Interface Illustration

48Initiators

❑They are the ones who recognize that there is need to be satisfied or a problem to be solved.

Example:

The need could range from identifying old equipment needing replacement, to discovering newer technologies, identifying gaps within the workflow that need to be streamlined etc.

49Influencers

❑They make recommendations based on their experience and their knowledge of products and services.

Examples of formal influencers:

❑Consultants hired for that purpose, Lawyers offering legal advice, older staff already used such products before, etc.

Examples of informal influencers:

❑Referrals, peers, family members, colleagues, mentors, etc.

50Deciders

❑Could be a committee or an individual who is entrusted with the

responsibility

❑Their role carries the responsibility of confirming the final order

❑They consider all information provided by all the alternative service

providers before making their final decision

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Approvers

❑They examine the financial aspects of the purchase including payment terms

❑They also consider the budget, cash-flows and overall financial impact

Buyers

❑A professional arm of the organization for purchasing.

❑The place the order of acquiring the product

❑Little flexibility to switch vendors

❑Buy with a fit to order as per the specifications

52Gatekeepers

❑They proactively search for information and deliver it to the deciders and buyers

❑They ensure compliance with safety as well as organization policies

Example

❑Internal auditors, personal assistants, legal departments, compliance and governance departments etc.

Users

• Final use the product, product or service into operation

• Post-purchase evaluation & influence repeat purchase

53UDERSTANDING CUSTOMER COMMUNICATION NEEDS

Learning Objectives

• Understand the needs of customers and the benefits of a marketing oriented approach.

• Recognize the importance of collecting information to gain a better understanding of

customer needs.

• Explain information collection from a range of sources in order to create and maintain a

customer database.

• Explain how customer information can help with identifying customer needs and

developing appropriate marketing mix activities.

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Communicating with Customers

❑Customers are both internal and external.

❑Understanding customers assists;

✓In developing appropriate marketing strategies.

✓It helps to build customer loyalty.

✓It helps in reducing the potential for conflicts

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Integrated Communication

❑Integrated Marketing Communications (IMC) ensures that all forms of communications and messages are carefully linked together.

❑It means integrating all the promotional tools

SHARE A RELEVANT EXAMPLE

56Caution: Keeping communication short & sweet!

❑Customers receive loads of information per day from various sources i.e. unneeded.

❑Marketing oriented organizations must ensure:

✓Messages are worthy of being remembered.

✓Messages are delivered effectively and efficiently.

57Sustaining Sales Growth Through Customer Service

Customers

❑Customers want to feel valued,

handled confidently and

compassionately

❑ Prefer not to be judged, need

more empathy

❑ They want to be listened to and

offered solutions vs excuses.

58Customer Care / Service

❑ Customer service is the provision of

service to customers before, during

and after a purchase.

❑ Criteria for delivering good

customer service includes;

o Friendly and knowledgeable staff.

o Having appropriate procedures

and processes.

o Product / service reliability.

Customer Experience

❑ Customer Touch-points

❑ The experience that a customer

has with a brand.

❑ The entirety of the interactions a

customer has with a company and

its products.

59SIVA

Customer service model by C. Deva

& Son S.(AMA Journal);

❖ Product Solutions

❖ Promotion Information

❖ Price Value

❖ Place Access

Key Questions:

❑Solution: How appropriate is the solution to the

customer needs?

❑Information: Does the customer know about the

solution? Do they know enough to make a buying

decision?

❑Value: Does the customer know the value of the

transaction, cost, benefits, what they must

sacrifice and the reward?

❑Access: where can the customer find the

solution? How easily can they buy it and delivered

– locally.

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Relationship Marketing

Devoting marketing resources to maintaining and exploiting the firm’s existing customer base rather than using the resources solely to attract new customers.

Is relationship marketing important?

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Transactional Marketing Relationship Marketing

❖ Emphasis on product features ❖ Product benefits

❖ Short timelines ❖ Long timelines – long term profits

❖ Focus is a single transaction ❖ Building customer loyalty

❖ Little emphasis on customer retention ❖ High levels of customer service tailored

to individual customers

❖ Limited customer commitment ❖ High levels of customer commitment

❖ Moderate customer contact ❖ High levels of customer contact

❖ Quality concern of production ❖ Quality is the concern of all

Transactional Marketing Vs Relationship Marketing

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1. Identify customer needs and perceptions: To create a standard

2. Establish a Mission: To give direction and purpose to all

3. Set service level standards: For all to follow in all aspects of the business,

communication, complaints, deliveries, feedback.

4. Establish a management process: Define who does what and when, allocating

responsibility.

5. Communicate the process: To internal teams, measurement of service, feedback

from teams, meetings and trainings.

6. Establish a complaints system: Train staff about procedures, document

complaints, have timelines, make the process easy.

7. Get management buy – in: To get resources (people and systems), get cultural

push and changes.

8. Develop control systems: Have objectives and measure performance, get

feedback

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63BASICS OF INSURANCE BUSINESS ETHICS

Learning Objectives

▪Understand the concept of business ethics.

▪Fundamental principles of business ethics.

▪Responsibility of insurance market players.

▪Ethical behavior

▪Unethical behavior

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❑Ethics is from the Greek word “Ethos” referring to the character or custom of people or place.

❑Principles or guidelines which help in deciding what is right or wrong.

Meaning of Ethics❑ The principles that shape

behavior, express purpose, meaning and aim of our lives.

❑ It deals with values related to human conduct such as Truth, Integrity, Honesty, Responsibility, Character and Love.

❑ It provides a moral basis for behavior, relationships and standards.

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❑Business needs ethics if it is to be sustainable and profitable.

❑The current trend in business is that it is responsible to all its stakeholders;

✓Customers & employees

✓Shareholders & Investors

✓Environment & Community

✓Suppliers and government

Business Ethics

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❑Compliance with laws and regulations is a must in today business world.

❑Non-compliance can lead to complications particularly when things go wrong.

ComplianceoResources are used for

intended purposes

oEnhanced Public accountability.

oEmployee retention

oCompliance with internal and external requirements

oQuality performance and results

oSurvival and prosperity of company.

Why Business Ethics?

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• Accountability: To all stakeholders by management.

• Fairness: Treat all stakeholders equitably.

• Transparency: Timely and accurate disclosure of all material

matters, including the financial situation, performance,

ownership and corporate governance

• Independence: Avoid conflict of interest and influence from

others.

Pillars of Business Ethics

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❑Integrity, honesty, straight forward

❑Objectivity – avoid bias

❑Professional competence and due care CPD, knowing your limit.

❑Confidentiality of information and avoidance of unnecessary disclosure.

❑Professional Behavior – comply with relevant laws and regulations.

Fundamental Principles of Insurance Ethics

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Questions & Discussion

Thank you,