Personal Selling

Personal Selling Defined

Personal selling refers to personal communication with an audience through paid personnel of an organization or its agents in such a way that the audience perceives the communicators organization as being the source of the message.

Definition of Personal Selling

Personal selling
1) two-way flow of communication 2) between a buyer and seller 3) a face-to-face or real time encounter

Why are face to face and two-way important?

Advantages of Personal Selling

Provides a detailed explanation or demonstration of product Message can be varied to fit the needs of each prospective customer Instant feedback Personal persuasion can be used A good salesman can get you to buy ice in winter

Evolution of Personal Selling

Peddlers selling door to door . . . served as intermediaries Selling function became more structured

1800s 1900s 2000s st century, selling continues to develop, As we begin Post-Industrial the 21 Industrial War and Modern becomingRevolution more professional and more relational Revolution Depression Era

Business organizations employed salespeople

Selling function became more professional

When to Use Personal Selling

Product has a high value Product is custom made Product is technically complex

There are few customers

Customers are concentrated

Selling image, not product

Creating Value Through Salespeople Relationship Selling

building ties to the customer, based on a salespersons attention and commitment to customer needs over time.

Examples of Personal Selling

Retail selling Field selling Telemarketing Inside selling

12 million people are engaged in personal selling in the United States Represents about 10% of the work force

Relative Importance of Advertising and Personal Selling

Pre-transaction:
Create recognition and info understanding
Personal selling

Post-transaction:
Reminder and reassurance
Personal selling Advertising

Transaction:

Advertising Persuasion Personal selling Advertising

Buyer Seller Dyads

Factors influencing Buyer seller dyadic interactions :
1)Whenever possible sales personnel should be assigned to prospects whose characteristics are similar . E g prospects who brought insurance knew more about sales person & their companies , & felt more positively towards them than the prospects who did not buy . 2) The customers perception of the sales persons behavior is a necessary condition for continuation of the dyadic interaction . E g In pharmaceutical business the customers perception of the sales mans behavior allows him to enter the retail store . 3) The buyers initial conditioning with respect to selling E g people are taught from childhood to be aware of tricky sales person.

Six stages of Personal Selling

1) Prospecting 2) Pre-approach 3) Approach 4) Presentation 5) Close 6) Follow-Up

Sources of prospects

1 Personal Selling: Prospecting

Prospect- possible customer Qualified Prospect-customer who has desire, means and power to decide Cold Canvassing- seller initiated contact of,potential customers without advance warning.

Personal Selling: 2)Pre- Approach & 3) Approach

2) Pre-approach-Gathering information (when to call, income level, risk tolerance) 3) Approach-First meeting (Physical impressions highly importantappearance, timeliness, confidence)

4) Personal Selling: Presentation

A) Stimulus-Response Format (suggestive selling)
keep suggesting items until the buyer responds, like the McDonalds order taker

B) Formula Selling Format more formal and planned,

like a telemarketer

Canned Selling Presentation Memorized, standardized message conveyed to every prospect. Works when seller is a novice or does not know the buyer well

Personal Selling: Presentation

Need-Satisfaction FormatLet the customer do the talkingSalesman probes, listens then suggests, like a financial planner

Adaptive Selling- pro-active but selective presentation of offerings, based on pre-approach data

Consultative Selling re-active presentation for problem solution

Personal Selling: Presentation

Handling Objections
Acknowledge and Convert the Objectionuse the objection as a reason to buy (expensive) Postpone hold off answer because next info will convince buyer (complicated) Agree and Neutralize show the objections insignificance (side effects) Denial refute objection with clear facts

Dealing with Objections

 Listen & do not interrupt

Dealing with Objections(cont)

Interruption denies the buyer the kind of respect they are entitled to, and may lead to a misunderstanding of the real substance behind the objection. The correct approach is to listen carefully, attentively and respectfully. The buyer will appreciate the fact that the salesperson is taking the problem seriously and the salesperson will gain through having a clear and full understanding of the true nature of the problem.

Agree & Encounter

This approach maintains the respect that the salesperson shows to the buyer. The salesperson first agrees that what the buyer is saying is sensible and reasonable, before then putting forward an alternative point of view. It therefore takes the edge off the objection and creates a climate of agreement rather than conflict. For example: Buyer: The problem with your tractor is that it costs more than your competition. Salesperson: Yes, the initial cost of the tractor is a little higher than competitors models, but I should like to show you how, over the lifetime of the machine, ours works out to be far more economical.

Dealing with Objections(cont)

The Straight Denial
This method has to be handled with a great deal of care since the danger is that it will result in exactly the kind of antagonism that the salesperson is wishing to avoid. However, it can be used when the buyer is clearly seeking factual information. For example: Buyer: I expect that this upholstery will be difficult to clean. Salesperson: No, Mr. Buyer, absolutely not. This material is made from a newly developed synthetic fiber that resists stains and allows marks to be removed simply by using soap, water and a clean cloth.

Dealing with Objections(cont)

Question the objection
Sometimes an objection is raised which is so general as to be difficult to counter. For example, a customer might say they do not like the appearance of the product, or that the product is not good quality. In this situation the salesperson should question the nature of the objection in order to clarify the specific problem at hand. Sometimes this results in a major objection being reduced to one which can easily be dealt with.
Buyer: Im sorry but I dont like the look of that car. Salesperson: Could you tell me exactly what it is that you dont like the look of? Buyer: I dont like the pattern on the seats. Salesperson: Well, in fact this model can be supplied in a number of different upholstery designs. Shall we have a look at the catalogue to see if there is a pattern to your liking?

Dealing with Objections(cont)

Forestall the objections
With this method, the salesperson not only anticipates an objection and plans its counter, but actually raises the objection as part of their sales presentation.
There are two advantages of doing this. First, the timing of the objection is controlled by the salesperson. Consequently, it can be planned so that it is raised at the most appropriate time for it to be dealt with effectively. Second, since it is raised by the salesperson, the buyer is not placed in a position where, having raised a problem, they feel that it must be defended.

Dealing with Objections(cont)

Turn the objection into a trial close
A trial close is where a salesperson attempts to conclude the sale without prejudicing the chances of continuing the selling process with the buyer should they refuse to commit themselves.

The ability of a salesperson to turn the objection into a trial close is dependent upon perfect timing and considerable judgment. Usually it will be attempted after the selling process is well under way and the salesperson judges that only one objection remains. Under these conditions they might say the following: If I can satisfy you that the fuel consumption of this car is no greater than that of the Vauxhall Vectra, would you buy it?

Dealing with Objections(cont)

Hidden Objections
Not all prospects state their objections. They may prefer to say nothing because to raise an objection may cause offence or prolong the sales interaction. The correct salespersons response to hidden objections is to ask questions in an attempt to uncover their nature. If a salesperson believes that a buyer is unwilling to reveal their true objections, they should ask such questions as the following: Is there anything so far which you are unsure about? Is there anything on your mind? What would it take to convince you? Uncovering hidden objections is crucial to successful selling because to convince someone it is necessary to know what they need to be convinced of.

Overcoming Objections
IF HE HADNT TOLD ME WHAT HIS OBJECTION WAS, I NEVER WOULD HAVE BEEN ABLE TO HELP!

Personal Selling: Close

Trial Close-Can I put you down for blue or green?

Assumptive Close-ask about delivery or warranty choices.

Urgency Close-Offer valid for today only.

Final Close-Buyer initiated acceptance of the sale.

Personal Selling Process

Closing the Sale Closing signals Trial close Asking the prospect to buy

Closing the Sale ( cont)

 Simply ask for the order

The simplest technique involves asking directly for the order: Shall I reserve you one? Would you like to buy it? Do you want it? The key to using this technique is to keep silent after you have asked for the order.

Summarise and then ask for the order

This technique allows the salesperson to remind the buyer of the main points in the sales argument in a manner that implies that the moment for decision has come and that buying is the natural extension of the proceedings.

Closing the Sale ( cont)

The concession close
This involves keeping one concession in reserve to use as the final push towards agreement: If you are willing to place an order now, Im willing to offer an extra 2.5 per cent discount.

The alternative close

This closing technique assumes that the buyer is willing to purchase but moves the decision to whether the color should be red or blue, the delivery should be Tuesday or Friday, the payment in cash or credit, etc. In such circumstances the salesperson suggests two alternatives, the agreement to either thus closing the sale: Would you like the red one or the blue one? Would you like it delivered on Tuesday or Friday?

Closing the Sale ( cont)

The objection close
This closing technique involves the use of an objection as a stimulus to buy. The salesperson who is convinced that the objection is the major stumbling block to the sale can gain commitment from the buyer by saying, If I can convince you that this model is the most economical in its class, will you buy it? A positive response from the buyer and reference to an objective statistical comparison by the seller effectively seal the sale.

Personal Selling: Follow-Up

Address concerns with delivery and installation, so todays customer becomes tomorrows qualified prospect or referral source

Personal Selling Process

Following Up
Commitments met
Shipment Performance

Reinforce L-R relationship Satisfied customers rebuy & recommend

The follow-up call can also be used to provide reassurance that the purchase was the right one. Many customers suffer from cognitive dissonance, that is being anxious that they have made the right choice

Characteristics of Personal Selling

Pro

Flexibility
Adapt to situations Engage in dialog Builds Relationships
Long term Assure buyers receive appropriate services Solves customers problems

Con
Can not reach mass audience Expensive per contact Numerous calls needed to generate sale Labor intensive

Types of Salespersons
ORDER GETTERS Current customers New customers

ORDER TAKERS
Inside Order Takers (via mail, telephone, internet) Outside Field Sales

SUPPORT PERSONNEL
Missionary Salespersons Trade Salespersons Technical Salespersons

Personal Selling
Salespeople have many names
Agents Sales consultants Sales Representatives Account Executives Sales Engineers District Managers Marketing representatives Account Development Representatives

Personal Selling Tasks

Order getting
Seeking out customers Creative selling Pioneering Account management

Order taking
Routine
l l

writing up orders checking invoices assuring prompt order processing

Suggestive selling

Personal Selling Tasks

Missionary Detailer Goodwill Closers Cross-functional Account service rep

You are part of the total product

Classification or Theories of Personal Selling

Mental States Selling Right set of Circumstances Selling Buying Formula Selling Behavioral Equation Selling

Mental States Selling/AIDAS

Attention

Interest

Desire

Action

Satisfaction

1)Mental States Selling/AIDAS

Securing Attention -- Put the prospect in to a receptive state
of mind

Gaining Interest -- By using flip charts or visual aids or probing

also .Sometimes prospect drops hints which sales person uses in selecting the best approach .

Kindling Desire --Salesperson keeps the discussion going on.

He should answer objections & kindle desire towards ready-tobuy point .

Inducing Actions-- Always ask for the order Building Satisfaction After customer placed an order the
sales person should reassure the customer that the decision was right

2)Right set of Circumstances Selling

Salesperson Provides Stimuli

Buyer Responses Sought

Continue Process until Purchase Decision

Right set of Circumstances Selling

The sales person seeks selling appeals that evoke desired response The set of circumstances include factors external & Internal to the prospect . E.g. suppose the sales person tells the prospect Lets go out for a cup of coffee .The sales person & the remark are external factors . But the four factors internal to the prospect which affect response are. The presence or absence of desire to 1)have the cup of coffee 2) to have it now 3) to go out 4) to go out with the sales person .

3)Buying Formula Selling (adequacy& pleasant feeling)

Define Problem

Generate Alternative Solutions

Evaluate Alternative Solutions

Continue Selling until Purchase Decision

Buying Formula Selling(adequacy& pleasant feeling )

Adequacy
Adequacy

Need or problem

Product service

and/or

Trade name

Purchase

Satisfaction

Pleasant feelings

Pleasant Feelings

4)Behavioral Equation Selling

Four elements are included : 1) Drives: Strong internal stimuli which impels buyers response . 2 Kinds a) Innate ( psychological needs such as hunger , thirst, pain ) b) Learned ( striving for status or social approval . 2) Cues :Weak stimuli that determine when the buyer will respond 3) Response :Is what the buyer does 4) Reinforcement: Any event that strengthens the buyers tendency to make a particular response

Behavioral Equation Selling

Howard incorporates these four elements into an equation : B= P x D x K x V
B= response or internal response tendency i.e. buying behavior P= predisposition or force of habit D= which is the drive or motivation depending on innate drives which are internal such as purely functional requirements, and learned drives which can be due to social factors such as status symbols, K= which is the incentive potential i.e.. the value of the product or its potential to satisfy the needs of the buyer V= which is the intensity of cues ( stimuli) which influence when to buy ( cues can be triggering as well as non triggering & specific triggering)