CHAPTER THREE Personal Selling PURPOSES OF SELLING Introducing Innovation to Markets Conveying Information Acting as Intelligence Agent Solving Customer Problems ATTITUDES ABOUT SELLING “Sales people are born and not made.” “Sales people must be good talkers.” “Selling is a matter of knowing the right techniques or tricks.” “A good salesperson can sell ice to an Eskimo.” “People generally do not want to buy.” TRAITS OF “WINNING SALES PEOPLE” Desire to succeed Continually seek self-improvement Accept responsibility Have mental toughness PERSONAL SELLING AND THE MARKETING MIX Price, Product, Place, and Promotion – Advertising, Sales Promotion, Public Relations, and Personal Selling PERSONAL SELLING IS CUSTOMER ORIENTED SELLING “Consultative Selling” “Adaptive Selling” PERSONAL SELLING PROCESS PRETRANSACTIONAL PHASE (Prospecting, Qualifying, Precall Planning) TRANSACTIONAL PHASE (Approach, Needs Discovery, Presentation, Handling Objections, Closing) POSTTRANSACTIONAL PHASE (Service and Follow-up) PERSONAL SELLING PROCESS Prospecting – External Sources » Direct Inquiries » Referrals » Directories » Cold Canvassing – Internal Sources PERSONAL SELLING PROCESS Qualifying – Qualified candidates have a need, have the authority to buy, and can afford to buy PERSONAL SELLING PROCESS Precall Planning – – – – What do I want to accomplish? What do I know about the prospect? Where can I find information? What am I going to say? PERSONAL SELLING PROCESS Precall Planning--”What do I want to accomplish?” – determine information on historical inventory levels. – determine who is involved in the purchasing decision. – arrange for a follow-up meeting – agreement to a trial-run purchase PERSONAL SELLING PROCESS Precall Planning--”What do I know about the prospect?” – Size of business/products sold/markets served – Key personnel – Buying routines/purchasing process – Present supplier(s)/volumes purchased – Future plans PERSONAL SELLING PROCESS Precall Planning--”Where can I find information?” – – – – – Ask prospect directly Observe business facilities Ask other company salespeople Ask current customers Ask competitors PERSONAL SELLING PROCESS Precall Planning--”What am I going to say?” – The Sales Mix Model » Presentation Pace » Presentation Scope » Depth of Inquiry » Two-way Communication » Visual Aids PERSONAL SELLING PROCESS Precall Planning--”What am I going to say?” – Implications for managers » how to structure the presentation » product, competitive, industry information » increase rep confidence PERSONAL SELLING PROCESS The Approach – Securing Appointments – Establishing Rapport PERSONAL SELLING PROCESS “Why is the approach important?” – It can help capture the buyer’s attention – It can help to establish a harmonious atmosphere – It serves as a good transition to the presentation – It can help in need determination PERSONAL SELLING PROCESS The Approach – Types of Approaches » Introductory Approach » Assessment Approach » Product Approach » Consumer Benefit Approach » Referral Approach PERSONAL SELLING PROCESS Need Discovery – Ascertain buyer benefits – Types of questions: permission, fact finding, feeling finding, checking PERSONAL SELLING PROCESS Presentation Types – Canned – Organized – Tailored PERSONAL SELLING PROCESS The Presentation – – – – – – Focus on Benefits, not just Features Keep it Simple Talk the Prospect’s Language Stress Application Get the Prospect Emotionally Involved Seek Credibility FROM THE INTERNET Psycho Selling Skills--Getting Inside Your Prospect’s Head <http://www.pentech.net/psycho.htm> PERSONAL SELLING PROCESS Overcoming Objections LSCPA Approach to Overcoming Objections: – Listen to the buyer’s feelings – Share the concerns without judgment – Clarify the real issue with questions – Problem solve by presenting options/solutions – Ask for action to determine commitment PERSONAL SELLING PROCESS Closing – Alternative Choice – Summary Close PERSONAL SELLING PROCESS Service and Follow-up – – – – Entering Orders Installation of Product Training Handling Billing Problems FROM THE INTERNET “Basic Selling Skills Questionnaire” <http://www.sales.org/quizes/BSQ.html> PERSONAL SELLING APPROACHES Stimulus-Response Selling Need Satisfaction Selling Problem Solving Selling PERSONAL SELLING APPROACHES STIMULUS RESPONSE SELLING – Manipulate customer to elicit desired responses PERSONAL SELLING APPROACHES NEED SATISFACTION SELLING – Presentation is tailored to fit needs of buyer PERSONAL SELLING APPROACHES PROBLEM SOLVING (PROBLEMSOLUTION) SELLING – The salesperson defines a customer problem that may be solved by various alternatives. PERSONAL SELLING POSITIONS Sales Support Personnel (Missionaries) New Business (Pioneers and Order Getters) Existing Business (Order Takers) Direct to Consumer Sales Combination Sales Positions FROM THE TEXT... Read pages 96 to 127.