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Transcript of session2 (2)
8/3/2019 session2 (2)
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MANAGEMENT
SESSION 2: PERSONAL
SELLING, TYPES OF
SALES MANAGEMENTPOSITIONS, THEORIESOF PERSONAL SELLING
AND STRATEGIES OFPERSONAL SELLING
Prepared by: Dhaval Motwani
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Personal selling
Personal selling refers to personalcommunication with a an audiencethrough paid personnel of anorganization or its agents in
such a way that the audienceperceives the communicator’s organization as being the sourceof the message.
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Evolution of Personal Selling
Selling functionbecame more
structured
Peddlers selling doorto door . . . servedas intermediaries
Business organizationsemployed salespeople
Selling functionbecame moreprofessional
As we begin the 21st century, selling continues to develop,becoming more professional and more relational
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Contribution of Personal Selling
Towards the Society
• Salespeople helpstimulate the economy
• Salespeople help with the
diffusion of innovation
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Towards the Employing firm
• Salespeople generate revenue
• Salespeople provide marketresearch and customerfeedback
• Salespeople become futureleaders in the organization
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Towards the customer
• Salespeople provide
solutions to problems• Salespeople provide
expertise and serve asinformation resources
• Salespeople serve asadvocates for the customerwhen dealing with the sellingorganization
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Objectives of Personal Selling
Qualitative objectives To do the entire selling job.
2) To service existing accounts.3) To search out and obtain new customers.4) To secure and maintain customers co-operation in
stocking and promoting the product line.5) To keep customers informed on changes in the productline and other aspects of marketing strategy. 6) To assist customers in selling the product line.7) To provide technical advice and assistance tocustomers.
8) To assists with the training and middlemen’s salespersonnel.9) To provide advice and assistance to middlemen onmanagement problems.10) To collect and report market information of interest anduse to company management.
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Quantitative objectives
) To capture and retain a certain market share.2) To obtain sales volume in ways that contributes
to profitability.3) To obtain some number of new accounts ofgiven types.4) To keep personal selling expenses with in set
limits.5) To secure targeted percentage of certainaccounts business
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Types of Selling
Industrial selling
Retail selling
Services selling
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Industrial Selling:More popularly known as Business-to-business
selling 4 major categories Selling to retailers: objective here is to gain maximum
shelf space and higher point-of-purchase display. eg.Hero cycles, T-series
Selling to business users: sales of first firm to thesecond firm which is a business customer so product isutilised for production of a final good. Eg. IBM sellingPentium processors to Compaq
Institutional selling: selling products to institutions fordaily use, products used provide support to the buyer’sbusiness rather than producing his goods. Eg. Xeroxphotocopiers
Selling to governments: selling only to governmentundertakings which follows a different procedure
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Retail Selling:
Selling to the ultimate customer for end use or
consumptionHere , a buyer seeks a seller
Eg: Shoppers stop, Walmart, Big Bazar, KhodiyarProvision store
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Services Selling:
Intangible in nature
Eg: Insurance, travel experience, tourismCannot be stored or re-sold at a later date
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Types of Selling
Sellingfunction
Order
takers
Ordercreators
Ordergetters
Sales support
salespeople
Front-linesales people
merchandisers
Technical supportsalespeople
Consumersalespeople
Organizational sales
people
New Businesssalespeople
Missionarysalespeople
Outsideorder taker
Deliverysalespeopl
e
Inside-order taker
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Types of selling
Order takers
Inside order taker: retail sales assistants whoserole is to complete the transaction
Delivery sales person: sales people whose job isto deliver the goods and in some cases to install it
Outside order takers: those whose job is to visitcustomers, provide demonstration of the product
if necessary and take orders only. Eg. EurekaForbes people
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Order creators
Missionary salespersons: those who do not closea sale but persuade the customers, educate and
make aware the customers and to promote aseller’s brand. Eg: medical representatives
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Order getters: people who actually make sales bygoing door-to-door Frontline salespeople: who go door-to-door to make
sales New business salespeople: who persuade new buyers and
non users to buy the product
Organizational salespeople: the industrial sellers who try toestablish and nurture a long term relationship with theorganizational buyers, generally helped by a support staff
sales team Consumer salespeople: go door-to-door to sell spices,
eatables, insurance etc
Sales support salespeople: those who provide supportto the sales people Technical support salespeople: provide support to the sales
people when the product is complex or needs negotiationsdemanding financial attention of the company
Merchandisers: provide sales support in retail and wholesaleselling situations
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Sales management positions
CEO/ Presiden
t
VP sales/VPMarketing
National SalesManager
Regional/Zonal/Divisional/Sales Manager
Branch/Area/District Sales Manager
Sales trainee/sales person/ sales representative
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Sales management positions
Top level:
National level and above
Responsible for long term marketing and sales planning, scanning externalenvironment, setting long term and short term objectives, developing strategies,decision making and coordination.
Middle level:
Mostly the title of regional, zonal or divisional sales managers Responsible for managing several branches or districts and implementing the
strategies and action plans approved by the top management.
First line sales managers: Titles of branch sales managers, area sales managers or district sales managers
Directly responsible for sales goals and objectives
Day to day supervision of sales persons below them Stall sales management positions
Sales training manager, customer service manager, sales co-ordination manageretc
They have an advisory role and do not have any authority on live sales managersand sales force.
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Personal selling Strategies
Stimulus Response Selling
Mental States Selling
Need Satisfaction Selling
Problem Solving Selling
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Stimulus Response Selling
SalespersonProvidesStimuli
BuyerResponses
Sought
ContinueProcess until
PurchaseDecision
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Mental States Selling
Attention Interest Conviction Desire Action
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Need Satisfaction Selling
Uncover andConfirm
Buyer Needs
PresentOffering to
SatisfyBuyer Needs
ContinueSelling until
PurchaseDecision
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Problem Solving Selling
DefineProblem
GenerateAlternativeSolutions
Continue
Sellinguntil
PurchaseDecision
EvaluateAlternativeSolutions
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Consultative Selling
Long-term Ally
The process of helping
customers reach theirstrategic goals by usingthe products, service,and expertise of theselling organization.
Strategic Orchestrator
Business Consultant
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The Sales Process
• Sales Presentation Delivery
• Earning Customer Commitment
DevelopingCustomer
Relationships
Initiating CustomerRelationships
EnhancingCustomer
Relationships
• Prospecting• Pre-approach• Presentation Planning• Approaching the Customer •Adding Value through Follow-
up, Self-leadership, andTeamwork
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Sales process cont...
Prospecting &
qualifying
Pre-approac
h
Approach
Presentation&demonstratio
n
Handlingobjection
sClosing
Follow-up
Identifyqualified
potentialcustomers
Learn asmuch aspossible
aboutcustomer
Make a
relationship
Tell the product “story” &
focus on customer
benefits
Overcomecustomerobjections
Ask foran
order
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Prospecting:
Can be an individual, family, organization etc
Has the need and the ability to buy
Hot prospects, warm prospects and cold prospects
Pre-approach:
Involves information gathering, planning the sales call, setting the sales call,
Approach:
The actual meeting with the customer
Important and can make or break the sale
Presentation delivery
Very important Involves conveying the highlights of the product to the customer
Arousing the need and convincing him
Use of technology, adaptability of the presentation, benefit plan, use of language& convincing
Use of demonstration if required
Matching the presentation method with situations Earning customer commitment
Convincing the customer and making him believe the worthiness of the product
Overcoming objections (psychological and real/logical)
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Closure of sale Asking for the order
Proper timing important
Understand the buying signals Examines the product
Asks another person’s opinion
asks a question
Becomes friendly
After sales follow up and serviceHelps to build relationship
Satisfaction here leads to customer delightGood brand reputation and leads to repeat sales
Helps to build loyalty among customers
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Theories of selling
Selling is an art as well as a Science
AIDAS theory
“right set of circumstances” theory
“Buying formula” theory
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AIDAS theory:
A – attention Beginning of the conversation/interview
First impression important
Proper attire, neatness, friendliness, and genuine smile
A good way of greeting and slowly bring up the actual topicto the customer
I – Interest Aids to generate interest in the products like flip charts, ppts
or even a demonstration
Generally hints dropped by the prospect which should bepicked by the salesperson. This helps in selecting the best
approach This skills comes with experience
Care to be taken about the timings, mood and relation withthe customer
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D - Desire:
Making the buyer ready to pay
Face and solve the sales obstacles and queries Proper anticipation of sales objections helps
A- Actions
Buying action has to be induced
Asking for the order
S - Satisfaction
Reassurance that the decision is right
Means thanking the customer for the order and a
promise of proper after sales service
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“Right set of circumstances” theory:
Particular circumstances cause the prospect torespond in a predictable way during the salesprocess
The sales person must be able to gain advantageof this
Internal and external factors decide thecircumstances
Internal will be the thoughts of the prospect,mood, psychology, beliefs, tensions
External will be the place, timings, appearance ofthe sales person etc.
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“Buying formula” theory Focus on what lines is the buyer thinking
Internal factors given much importance as they have the mostlikely effect on the thinking
When a need/problem is recognised, buyer thinks of a solution interms of the product, service or the brand name
Proceeds mentally from the need, to product/service, to tradename, to purchase and ultimately the satisfaction ordissatisfaction
When a person is satisfied or has found a solution he
Need/problem
Productservice and
/orTrade name
purchase satisfaction
Need/problem
Productservice and
/orTrade name
purchase satisfaction
Adequacy & pleasant feelings