Marketing bán hàng - Chapter 2: Personal selling: Preparation and process

Chapter 2Personal Selling:Preparation and ProcessLearning ObjectivesTo understand psychology in selling, buying decision process and buying situationsTo learn communication skills, sales knowledge, and sales related marketing policiesTo understand personal selling processTo learn about negotiationPsychology in SellingIf a sales person makes a presentation, the prospect may or may not buyThe above “buyer behaviour model” does not tell us the reasons of buying or not buyingTo understand the psychological aspects of selling or buying, salespeople should study consumer or buyer behaviour, including buying process and situationsStimulus(Sales Presentation)Response (buy or no buy)Buyer’s decision making processBuying Process of Consumers and Business BuyersFive – stage model for household customersEight – stage model for business buyersProblem / need recognitionProblem / need recognitionCharacteristics and quantity determinationSpecification developmentInformation search / collectionSupplier search and qualificationObtain and analyse supplier proposalsEvaluate alternativesEvaluation and selection of suppliersPurchase decisionSelection of purchase order routinePost – purchase behaviourPerformance feedback and post-purchase evaluationBuying Situations Faced ByHousehold customersBusiness Buyers Routine decision-making New task / New purchase Limited decision-making Modified rebuy / change in supplier Extensive decision-making Straight rebuy / Repeat purchase Buying process and situations differ for household consumers and business buyers. Consumers / Buyers may skip or reverse some stages in buying process. E.G. A consumer buying toothpaste Knowledge of Sales and Sales-related Marketing PoliciesSales KnowledgeMarketing Policies Company knowledge Pricing and Payment policies Product knowledge Product policies Customer knowledge Distribution policies Competitor knowledge Promotional policiesMajor reasons for giving above information / knowledge through training programmes to salespeople are: increase their self-confidence Meet customers’ expectations Increase sales Overcome competitionThe Sales ProcessAs a part of selling activities, if salespeople follow the steps or phases shown below, their chances of success are far better.Prospecting & QualifyingPreapproach / Precall planningApproachPresentation & DemonstrationFollow-up & ServiceTrail close / Closing the saleOvercoming Objections The sequence of above steps may change to meet the sales situation in hand. Some of the above steps may not be applicable for selling to the trade We now discuss application of above steps to industrial selling Prospecting It is identifying or finding prospects i.e. prospective or potential customers. Methods of prospecting or sales lead generation are: (1) referrals from existing customers, (2) company sources (website, ads., tradeshow, teleprospecting), (3) external sources (suppliers, intermediaries, trade associations), (4) salespersons’ networking, (5) industrial directories, (6) cold canvassingQualifying Companies qualify sales leads by contacting them by mail or phone to find their interests (or needs) and financial capacity. Leads are categorized as: Hot, Warm, and CoolPreapproachInformation gathering about the prospect. Sources of information: the Internet, industrial directories, government publications, intermediaries, etc.Precall planningSetting call objectivesTentative planning of sales strategy: which products, features and benefits may meet the customer needsApproach Make an appointment to meet the prospect Make favourable first impression Select an approach technique:IntroductoryCustomer benefitProductQuestionPraiseThe approach takes a few minutes of a call, but it can make or break a salePresentation and DemonstrationThere are four components:Understanding the buyer’s needsKnowing sales presentation methods / strategiesDeveloping an effective presentationUsing demonstration as a tool for sellingWe will examine each of the above pointsUnderstanding the buyer’s needs Firms and consumers buy products / services to satisfy needs To understand buyer’s needs, ask questions and listen In business situations, problem identification and impact questions are importantE.G. Have you experienced any problems on quality and delivery from the existing supplies? What impact the quality and delivery problems will have on your costs and customer satisfaction?Knowing Sales Presentation Methods/StrategiesFirms have developed different methods / styles / strategies of sales presentation Stimulus response method / canned approach. It is a memorised sales talk or a prepared sales presentation. The sales person talks without knowing the prospect’s needs. E.G. Used by tele-marketing people Formula method / formulated approach. It is also based on stimulus response thinking that all prospects are similar. The salesperson uses a standard formula – AIDA (attention, interest, desire, and action).It is used if time is short and prospects are similar. Shortcomings are: prospects’ needs are not uncovered and uses same standard formula for different prospects.Sales Presentation Methods (Continued)Need – satisfaction methodInteractive sales presentationFirst find prospect’s needs, by asking questions and listeningUse FAB approach: Features, Advantages, BenefitsEffective method, as it focuses on customersConsultative selling method / Problem-solving approachSalespeople use cross-functional expertiseFirms adopt team selling approachIt is used by software / consulting firmsDeveloping an Effective PresentationSome of the guidelines are:Plan the sales callAdopt presentation to the situation and personCommunicate the benefits of the purchasePresent relevant and limited information at a timeUse the prospect’s languageMake the presentation convincing – give evidenceUse technology like multi-media presentationUsing DemonstrationSales presentation can be improved by demonstrationDemonstration is one of the important selling tools EGs: Test drive of cars; demonstration of industrial products in useBenefits of using demonstration for selling are: Buyers’ objections are clearedImproves the buyer’s purchasing interestHelps to find specific benefits of the prospectThe prospect can experience the benefitOvercoming Sales Objections / ResistancesObjections take place during presentations / when the order is askedTwo types of sales objections:Psychological / hiddenLogical (real or practical)Methods for handling and overcoming objections: (a) ask questions, (b) turn an objection into a benefit, (c) deny objections tactfully, (d) third-party certificate, (e) compensation Trial close and Closing the saleTrial close checks the attitude or opinion of the prospect, before closing the sale (or asking for the order)If the response to trial close question is favourable, then the salesperson should close the saleSome of the techniques used for closing the sale are: (a) alternative-choice, (b) minor points, (c) assumptive, (d) summary-of-benefits, (e) T-account, (f) special-offer, (g) probability, and (h) negotiationFollow-up and ServiceNecessary for customer satisfactionSuccessful salespeople follow-up in different ways: For example,Check order detailsFollow through delivery scheduleVisit when the product is deliveredBuild long-term relationshipArrange warranty serviceNegotiationSalespeople, particularly in business to business selling, need negotiating skillsWhen to negotiate? (a) When the buyer puts certain conditions for buying to the seller, (b) When agreement between the buyer and the seller is needed on several factors, (c) When the product is customised, (d) When the final price is to be decidedHow to prepare for negotiation? (a) planning, (b) building relationship, (c) purposeStyles of negotiation (a) I win, you lose, (b) Both of us win (or win-win style), (c) You win, I lose, and (d) Both of us loseKey LearningsFor understanding psychology in selling, study consumer or buyer behaviour, buying process and situationsSalespeople are given knowledge of sales and relevant marketing policies in order to increase their self-confidence and sales, and meet customers’ expectationsTypical steps in the sales process include prospecting and qualifying, preapproach, approach, presentation and demonstration, overcoming objections, trial close / closing the sale, follow-up and serviceSalespeople should know when to negotiate, how to prepare for negotiation and which style of negotiation to use