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MKTG 4P26 SALES Class2

Class 3– The Process of Buying and Selling
Stages of the Selling Process
1. Prospecting for customers
a. Rejection and delayed payoff
b. Hard work and requires design and discipline
c. Enhanced by internet and social media
2. Opening the relationship
a. Who is likely to have the greatest influence to initiate the purchase process
i. Can a specific person/department play a significant role?
b. Generate interest to obtain information needed to qualify a prospect
i. Is it ‘worthwhile’ potential customer
c. Identify key decision makers, desires, and relative influence
i. Existing guidelines for inexpensive products or technical complex
3. Qualifying the prospect
a. Does prospect have a need for the product?
i. Is it worth to put in the efforts?
b. Possibility to make prospect aware of need?
i. Upcoming trends/changes, regulations
c. Will the sales be profitable to the company?
i. Separate eternal optimism from objective realistic judgement for a profitable sale
4. Presenting the sales message
a. What is the purpose of sales presentation?
i. Transmit information
ii. Persuade prospect to become a customer
b. What can be the common complaints about sales presentation
i. Running down competitors
ii. Too aggressive or abrasive
iii. Inadequate knowledge of the competitors’ products/services
iv. Inadequate knowledge of the clients business
v. Poor delivery
5. Closing the sale
a. Begins w first contract
b. What does closing require
i. Asking for the order
ii. Trial close. Contract
iii. Understanding the prospect and buying process
c. How can the sales team pace the sales?
i. Some questions that can be asked:
1. May I write that order up for you?
2. Would that be cash or charge?
6. Servicing the account
a. What needs to be followed up to ensure satisfaction?
i. Product
ii. Installation
iii. Training
iv. Maintenance
v. Billing
b. Satisfied customer = Repeat customers
Organizational Buying Process – The Buying Center
Scenario: Firm intends to deploy AR glasses for the safety of employees
1. Initiators
a. Can anyone from the firm who starts buying process
b. Complaints from maintenance department about outmoded and inefficient
c. Top management’s decision to increase efficiency
2. Users
3. Influencers
a. People who provide evaluations for several alternatives
4. Gate Keepers
a. People who control the nature of the amount of information that needs to be
released to
b. Screens (i.e. secretaries)
5. Buyers
a. People who have the autonomy to place the order
b. Who could be best suitable for this job?
6. Deciders
a. Final authority to purchase
b. At times, higher executives
7. Controllers
a. People who determine the budget
b. Big question that is needed to be asked?
c. Whether cost fit into functioning of the company
Organizational Buying Decision Stages
1. Anticipation or recognition of a problem/need
2. Determination and description of the traits and quality of the needed items
3. Search for and qualification of potential suppliers
4. Acquisition and analysis of proposals or bids
5. Evaluation of proposals and selection of suppliers
6. Selection of an order routine
Class 4 – The Process of Buying and Selling Cont’d
The Nature of Organizational Buying Situations
o New Task Purchase
o First-time purchase
o In some cases, complex and expensive product or service(e.g. new piece of
product equipment or a new system
o Modified rebuy
o Modification to existing purchase decision e.g., customer wants a lower
price/modifications in specifications
o Might open the door for new supplier
o Straight Rebuy
o Routine purchase e.g., office supplies. Pre-approved list of suppliers preferred
o Reorder item purchase many times in the past
Key success factors/skills in selling
o Listening Skills
o Follow-up Skills
o Ability to adapt to sales style to situation
o Tenacity
o Well Organized
o Verbal Communication Skills
o Able to interact with people at all levels of an organization
o Ability to overcome objections
o Closing Skills
o Personal Planning and time management skills
Key Selling Activities
o Relationship Selling
o Building trust, relationships
o Promotional Activities and sales services
o Set up displays
o Entertaining
o Prospecting
o Call on potential customer accounts , respond to referrals
o Computer
o CRM software’s, SM
o Travel
o New geographic regions
o Training/Recruiting
o Train new reps
o Delivery
o Deliver product samples, stock shelves
o Product Support
o Expedite orders, supervise installation
o Educational Activities
o Attend sales meetings/trainings
o Office
o Fill out expense reports
o Channel Support
o Establish relationships with various departments/distribution
Technology related sales job factors
o Connectivity
o Customers might want total access
o Relationship
o Would you want to be in a salesperson contact list?
o At times customers have near perfect information
o Selling Tools
o Blogs, communities, associations, social networking sites
o Generational
o Take into account the difference between younger and older reps
o Global
o Crowdfunding campaigns
o Sales/Marketing Interface
o Branding is affected by different blogs, which makes sales easier
Session 6
The Process of Strategy Development
o From where do company’s goals and objectives come from?
o Company’s mission
o Goals and objectives are cut into smaller, attainable one for employee to reach, why?
o Specific, measurable, realistically attainable
o Strategic business units aid in this process
o Multiple division within organization are SBUs
o For example, General electric is competing in quite distinct markets aircrafts,
appliances, power systems
Market Exchange (Transactional Selling)
o Convenience
o What is the role of the sales person?
o Make an offering distinct, though it is hard
o Strip sales and related costs
o Ways to earn profit
Functional Relationship
o Creates climate of cooperation with open & honest communication
o Wat is the role of the sales person?
o Engender high level of personal trust in well managed business activities
 E.g. brokers in financial planning
o Provide expertise for competitive advantage
o Is there any danger?
o When sales person moves to another company, he/she takes all accounts along
with them
Strategic Partnership
o Long-term relationships where both parties make significant investments
o Can strategic partnership be created with every customer?
o Element of reciprocity e.g. Walmart relies on P&G’s market knowledge and P&G relies
on Walmart’s competence in supply chain management. Co-developed markets
How to build customer relationships?
o Under promise, over deliver
o Exceed customers’ expectations
o Don’t forget the small things
o Customers want to know you care,
ask follow-up questions
Integrated Marketing Communication (IMC)
o What is integrated marketing communication?
o Integrates personal selling, advertising, direct marketing, public relations and
other communications options
o Are there any advantages of personal selling in IMC
o Face-to-face
o More persuasive
o More demonstrative
 Large and complex information can be presented effectively with
promotional tools
o Customization opportunities
 Dedicated sales rep can get to know the problems that buyer facing and
how to better solve them
o Are there any disadvantages to IMC?
o Limited ability to duplicate
 Because of excessive customization
o Only small # of customers to target
o More Costly
Session 7