3 – Process of Personal Selling

Introduction

Personal selling entails locating a potential buyer, delivering a good sales pitch, and obtaining the order. As simple as it may appear, personal selling is a sophisticated communication and learning process for both the salesperson and the prospective consumer. When making a sales ‘pitch,’ the salesperson can take either a sales-oriented strategy that includes high-pressure selling techniques (such as those used in selling encyclopaedias or automobiles) or a customer-oriented approach that focuses on consumer issue solving. Here, the salesperson attempts to identify the customer’s wants and offers a suitable product solution.

There are numerous approaches to making a sale since each salesperson has a unique style of accomplishing the goals.

3.1 Prospecting, Identification, and Qualification

Prospecting refers to the planning work that is required to eliminate non-buyers. Finding the most potential prospects is the most crucial component of the selling process. The first step is to identify prospects, and the second is to locate qualified potential consumers and validate their legitimacy. Taking suspects off the list of prospects is also a crucial aspect of the job.

1. Identification of Prospects

Prospect identification is complex, and every salesperson should endeavour to gather information on potential customers from all accessible sources. The following are some of the sources and approaches used to find prospects:

-Current Customers

Current satisfied customers are an excellent source of new clients. Furthermore, they are easier to entice when marketing additional goods and services.

-Referrals of Satisfied Customers or Endless Chain

Satisfied customers operate as a valuable source of referrals; salespeople ask existing satisfied customers for the names of family, friends, or business acquaintances who may require a similar product or service. When the salesperson contacts these potential consumers for sale, they provide further information or references to other possible clients. As a result, the process continues and is known as the ‘Endless Chain.’ A similar source has been used to promote Reader’s Digest.

2. Center of Influence

This strategy is based on referrals from those who know something about other people or have power over them. A person like this can assist a salesperson in identifying good prospects. Housewives, bankers, local politicians, and others are examples of people who fall into this category.

3. Sales Trainees/Spotters

A corporation may hire sales trainees, mainly to assist salespeople in identifying prospects. The sales trainees are known as ‘spotters.’ This significantly reduces the time and effort required for a salesperson to qualify a prospect independently.

4. Cold Canvassing 

This strategy entails calling on a potential consumer without an appointment. Here, the salesperson walks in, introduces himself to the prospect, and inquires about the prospect’s need for the product or service. However, because most calls do not materialise, this strategy requires significant time and effort.

5. Directories

Directories are a great place to identify potential customers. Aside from traditional phone directories, membership directories of trade associations and professional societies, as well as civic and social organisations, are excellent sources of prospects.

6. Mailing List

Certain organisations generate lists of individuals and organisations for direct mail ads, pamphlets, and other purposes. These kinds of lists can also be used to identify sales prospects. One significant advantage of this source over directories is that mailing lists are frequently more current and selective than directories.

7. Trade Shows, Exhibitions, etc.

More and more businesses are beginning to participate in trade fairs, exhibitions, and other similar events because they cannot only advertise, promote, or sell their products but also obtain crucial market information about clients and prospective purchasers. As a result, information from such trade events and exhibitions can be a valuable source for discovering opportunities.

Qualifying the Prospects

An outstanding sales presentation will fail if it is delivered to someone or an organisation with no actual need for the product or service, cannot afford to purchase it, or is very content with its current long-term provider.

Thus, the following considerations about the prospect should be kept in mind for a good sales presentation:

a. He has a clear and specific need for the goods or services.

b. He has the financial means to pay for it.

c. He can purchase a large enough quantity for a lucrative sale.

d. He has the power to make a decision.

These criteria that must be considered to qualify a candidate are encapsulated in the acronym MAN, which stands for:

Money: The ability to pay for goods or services with money.

Authority: The authority to commit on his own

Need: There is a need for the goods or services. Authority: the authority to commit on his own.

3.2 Pre-approach and Call Planning

Once a prospect has been identified, the salesperson should not rush into scheduling a meeting and presenting their sales pitch. It is critical to recognise that before a salesperson contacts a prospect, as much information as possible on the prospect should be acquired, and a lot of planning is required.

A. Pre-approach

The pre-approach is built on the marketing concept premise that emphasises client orientation. The more the salesperson understands the prospect, the more likely a sale will be made.

The salesperson should attempt to obtain information such as:

1. What is the prospect’s financial situation?

2. What are his specific requirements or problems?

3. How might the company’s products or services meet these unique requirements?

4. Who will be engaged in the purchasing decision?

5. What is the most likely motivation or appeal to be effective?

6. What are the buyer’s personal qualities and interests outside of work? The information acquired should assist the salesperson in the following ways:

a. Determining the prospect’s wants and ability to purchase the product or service.

b. Delivering a ‘tailor-made’ presentation.

c. To avoid making severe tactical mistakes.

d. To boost the salesperson’s confidence in delivering the sales pitch.

B. Call Planning

Call planning is essentially a predefined planning process. The salesperson must first establish the goal of the call, then design a sales plan to attain that goal, and finally schedule the appointment. Aside from the ultimate goal of obtaining the order, there may be other interim goals, some of which may be:

1. To find out more about the potential.

2. Connect the prospect’s requirements and concerns to the product or service’s features and benefits.

3. Obtaining approval for the product demonstration.

4. The introduction of a new distributor.

5. To resolve previous collection disputes.

While developing a strategy to achieve his goals, the salesperson should attempt to grasp the prospects’ actual needs. To do so, he should thoroughly investigate the prospect’s background. Because many prospects are occupied at specific times, the optimal time for the call should also be considered. ‘Cold calls’ are generally unwelcome and should be avoided to the greatest extent possible.

3.3 Presentation

The purpose of a sales presentation is to demonstrate that the salesperson has a thorough awareness of the prospect’s wants and needs. The presentation is all about demonstrating to the customer how the items satisfy their demands. The salesperson should inform the prospect of the characteristics, capabilities, and availability of goods and services.

When the salesperson appears to present the pitch, he should be well-dressed and have a friendly and helpful demeanour toward the prospective customer. He should also be able to communicate effectively.

3.3.1 Categories of Presentation

Sales presentations can be divided into five categories. They are as follows:

1. Fully automated

This is frequently done using films or slide projections and is based on a highly planned approach. It is usually used to market intangible services, such as life insurance, to prospects in rural or semi-urban areas.

2. Semi-automated

In this strategy, the salesperson uses pamphlets or literature and continues to add comments as needed. It is beneficial in the sale of pharmaceutical products.

3. Memorised

The salesperson presents the company message with a few adjustments in this type of presentation.

4. Organised

This is the most common and effective type of sales presentation. The salesperson has total freedom of expression but must adhere to the company’s outline or checklist. The prospect goes through four stages: ‘attention,’ ‘interest,’ ‘desire,’ and ‘action’ (AIDA) before buying.

5. Unstructured

This is the presentation’s problem-solving technique. Prospects and salespeople gather here to discuss concerns and discover answers. Such presentations are not very focused, and much time is wasted. As a result, there is a need for competent salespeople who can rapidly clear customers’ questions and complaints.

3.3.2 Requirements of a Presentation

The efficiency of the presentation is determined not by how well it is presented but by how well it has assisted the buyer in relating his needs to the product and his incentive to purchase the goods. A good presentation should meet the following six basic requirements:

Plan

Good presentations are always planned and do not happen by accident. While planning the presentation, the salesperson should include information on the customer.

Pattern

A reasonable, step-by-step process should guide the customer to accept the goods.

Power

Behind every effective presentation lies enthusiasm, self-confidence, and the ability to persuade others.

Proof

When making claims about a product or service, enough proof should be provided to the customer. For example, they might be notified of letters from pleased customers.

Pictures

Because we live in a visually oriented culture where we are continuously assaulted with television, print advertising, and other visual stimuli, a visual presentation always has a higher impact than a verbal one. It has been discovered that we retain only 10% of spoken communication, but 50% of visual signals are preserved. This demonstrates that words will never be able to match the power of images.

Participation

The salesperson should pay attention to the consumer’s reaction, welcome his remarks, and watch for a purchasing signal.

1. One of the most crucial indications is when a consumer picks up a product.

2. Returning to a previously exhibited item.

3. His gaze is frequently drawn to a specific item.

4. He walks closer to the product to get a better look.

5. He abruptly stands up in the middle of his presentation.

Aside from buying signals, the salesperson should attempt to assess the consumer’s purchasing reasons. Some purchasing motivations include:

1. Fear of being left behind.

2. Envy other people’s accomplishments.

3. Vanity acknowledgement from others for making a great decision.

4. Approval and love from family, friends, and colleagues.

5. Entertainment, pleasure, or relaxation

6. Feelings such as family heritage and patriotism.

7. The satisfaction of being a part of a successful endeavour.

8. The pleasure obtained from using the product or service.

9. The benefit of enhanced efficiency.

10. Consider your health when purchasing a less harmful or difficult product.

11. The security of purchasing a product from a well-known company or brand name.

12. Increased utility, such as ease of use.

13. Caution should be exercised when purchasing a product that requires less servicing or a durable product with a long life.

Consequently, the salesperson should aim to sell the concept behind the product rather than the product itself. For example, if a salesperson is involved in selling calculators, he should be selling ‘speed, precision, and efficiency,’ just as a lady who buys cosmetics is buying the ‘dream of looking good.’

In a nutshell, the goal of a presentation is to persuade the buyer that:

1. There is a demand for the product.

2. The product in question can meet that need, and

3. The prospect can afford to acquire the product.

A sales presentation consists of two activities: the approach and the demonstration.

Approach

The approach to a presentation can make or ruin it. If the technique fails, the salesperson will be unable to present the product or demonstrate it. The salesperson should aim to dress similarly to the buyers and be nice and polite.

A good approach should:

a. pique the prospect’s curiosity, and

b. pique his interest in the dialogue.

c. Make the move into the demonstration phase as simple as possible.

There are four fundamental approaches:

1. Introductory Approach: The salesperson uses an introductory approach to introduce himself and his organisation to the prospect.

2. Product Approach: After quickly explaining the product to the prospect, the salesperson passes it to him for examination.

3. Approach based on Consumer Benefit: In this strategy, the salesperson begins the sale by informing the prospect about the product’s benefits.

4. Referral Approach: During the meeting, the salesperson can provide the prospect with the name of a current satisfied client (with his prior permission) as a reference.

Demonstration

The selling approach revolves around the demonstration. The demonstration is divided into two sections. The first contains an overview of the product’s features and benefits and an explanation of how it works. The demonstration itself is the second stage. The goal of this process is to turn the prospect into a customer.

1. A well-prepared and referred-to product demonstration

2. It should be designed to provide a “hands-on” experience with the product.

3.4 Handling of Objections

Prospects typically oppose purchasing things by pointing out actual or fictitious roadblocks and voicing complaints. No matter how disingenuous, objects should be answered with the utmost decency. The salesperson should make the consumer feel sensitive and available whenever the customer requires it. If the customer’s needs are concealed, problems may occur. As a result, the salesperson should endeavour to grasp the customer’s clear needs.

There are two basic methods for locating hidden objectives. They are as follows:

1. Maintain the prospect’s interest.

2. Apply the knowledge learned through experience, i.e., the salesperson should be well-versed in their products and those of competitors.

The salesperson should always use a low-pressure approach, or the customer may feel pressured to decide.

Prospects may express various objections regarding the product’s pricing, quality, service, quantity, expectations, colour, or a combination of all of these. These can be managed effectively by comparing the product to be sold to other products or rearranging the product’s advantages. The desirable qualities and attributes of the product can sometimes make up for its flaws.

Objection Price: To address this objection, cheaper versions of identical products can be displayed. Cash memos from past clients’ bills can also be displayed, and a reduction can be offered as a last option.

To address such objections, references from critical consumers may be provided, and the product may be offered in the appropriate size, colour, and so on. Such arguments can be quickly addressed if the product has a good brand name and important aspects can be compared and elaborated on with other brands.

Objection on after-sales service: The consumer should be informed that the firm’s service team pays regular visits to the customers, and the company’s free service vouchers with the product should be shown as proof of this.

Objection on payment: If cash payment is unavailable at the time, the product can be supplied on credit or in instalments after the customer’s identity is validated. This could result in the product being sold.

Objections on timing: Some clients desire to postpone purchases until later. With his intelligence and tact, the salesman should be able to persuade the consumer to decide on the spot.

However, dealing with objections is challenging. It is extremely difficult for a salesperson to make an efficient sale if the consumer is determined to postpone his decision. A consumer can leave the store at any time for any reason. He may choose to visit different stores or view various models before deciding.

3.5 Closing the Sales

After resolving the customers’ objections, the salesperson requests the order. The entire procedure is a waste of time unless and until the sale occurs. As a result, the sale must take place. A couple of the more effective closing strategies are described below.

Action Close

In this stage, the salesperson takes action that will finish the sale, such as negotiating financial help for the prospects.

Gift Close

The salesperson offers an additional incentive for purchasing the product right away.

Benefit Close

In this section, the salesperson reiterates the product’s virtues to evoke a positive response from the prospect.

Direct Close

It is an essential strategy that works well when the buyer has robust and positive buying motives. The salesperson summarises the main aspects of the presentation and requests the order directly.

Alternative Close

This strategy gives the buyer options for the goods, such as a black or red one, and payment options, such as cash or credit.

Objection Close

Suppose an objection is the primary impediment to making a sale. In that case, the salesperson should attempt to obtain a commitment from the buyer that if the objection is removed, he will purchase the goods.

As a result, the close is the most critical aspect of the selling process because all the effort and presentation culminate at this point.

3.6 Follow Up

After a successful close, there is still a lot to be done. To satisfy the consumer, the salesperson must ensure that the product is delivered at the requested place and at the appropriate time. Sometimes, a customer will request modest changes to a product or service to meet their specific needs. The customer should also be taught how to use the product correctly and safely.

Even after all the legalities have been done, providing efficient after-sales services is critical. Such initiatives are critical in converting a purchase into a loyal customer. Client complaints should be addressed seriously and treated with care, as this demonstrates that the salesperson is concerned about preserving positive customer relations.

Keep in touch with consumers by sending letters, notes, phone calls, greetings, etc. Some businesses will also send clients company newsletters, etc., to keep them current. The salesperson should maintain contact with consumers and keep them up-to-date on the latest products or services.