INTRODUCTION To Market & Sales

Presented To : Saurabh Mishra

Submitted By :
Vivek Bhattacharya Kunwar Vikram Shreyas Bharadwaj Sandeep Mishra Balram Mishra Gyanesh Shukla

PERSONAL SELLING

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 Can be directed to specific qualified prospects

Instant feedback
Personal persuasion can be used A good salesman can get you to buy ice in winter

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.

Six stages of Personal Selling

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

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

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

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: Follow-Up

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

Sales Force Motivation Compensation

Straight Salary Compensation Plan Straight Commission Compensation Plan Combination Compensation Plan

Sales Force Evaluation

Quantitative Assessments sales quotas
easy but ignores selling environment

Qualitative Assessments behavioral evaluations

attitude attention product knowledge selling skills appearance and professionalism

Personal Selling

Personal selling involves the two-way flow of communication between a buyer and seller, often in a face-to-face encounter, designed to influence a persons or groups purchase decision.

Personal Selling Process

The personal selling process consists of six stages: (1) prospecting, (2) preapproach, (3) approach, (4) presentation, (5) close, and (6) follow-up.

Adaptive Selling

Adaptive selling involves adjusting the presentation to fit the selling situation, such as knowing when to offer solutions and when to ask for more information.

Consultative Selling

Consultative selling focuses on problem identification, where the salesperson serves as an expert on problem recognition and resolution.

THEORIES OF SELLING

THEORIES OF SELLING
Selling

is considered as an art by some and a science by others.

This

has produced two contrasting approaches to the theory of selling.

Four Theories of Selling

AIDAS Right

set of circumstances Formula

Buying

Behavioral

Equation

AIDAS and Right Set Of Circumstances are seller oriented theories. Buying Formula theory of selling is Buyer oriented. The Behavioral Equation theory emphasizes the buyers decision process but also takes the salespersons influence process into account.

AIDAS theory of selling

A-Securing attention. I-Gaining Interest. D-Kindling desire.

A-Inducing Action.
S-Building Satisfaction.

Right Set of Circumstances

Theory can be summarized as Every thing was right. This theory is also known as Situation-response theory. A sales person needs to be well skilled to handle the set of circumstances.

BYUING FOMULA THEORY OF SELLING

The name buying formula has been given by the late E.K. Strong.
It is a step-by-step explanation of the buyers needs. Reduced to its simplest form, the mental processes involved in a purchase are

need solution purchase

After adding the fourth element, it becomes

Need(or problem)

solution

purchase

satisfaction

After modification in the solution and satisfaction, the buying formula becomes
product and/or service and trade name purchase satisfaction/dissatisfaction
need

After adding adequacy and pleasant feelings, it becomes

adequacy
feelings

pleasant

product and/or service and trade name purchase satisfaction/dissatisfaction

need

Behavioral Equation Theory

Using a stimulus response model and incorporating findings from behavioral research, J.A. Howard explains buying behavior in terms of the purchasing decision process, viewed as phases of the learning process. Four essential elements of the learning process included in the stimulusresponse model are: 1. DRIVES: a) INNATE DRIVES
b) LEARNED DRIVES

2. CUES:
a) PRODUCT CUES b) INFORMATIONAL CUES

3. RESPONSE 4. REINFORCEMENT

Howard incorporates these four elements into an equation

B =P * D * k * V
Where

B= response or internal response tendency P= predisposition or the inward response tendency K= incentive potential V= intensity of all the cues

Carrier In Marketing In Sales & Profession Of Personal Selling

Many managers believe that experience in selling is critical to a good understanding of the business and is an important place to start. The opportunities are numerous, ranging from clerking in retail stores, order taking, telemarketing and many other direct marketing activities, managing clients in endless settings, upto the sophisticated handling of customers for multimillion dollar purchases of raw materials, commodities, and equipment. Sales representation occurs in almost all organizations, including manufacturing, wholesaling, retailing, insurance, real estate, financial services, and many other service businesses.

THANK YOU