Overview of Personal Selling
Personal Selling – Defined
Personal selling refers to personal
communication with audience
through paid personnel of an
organization or its agents in
such a way that the audience
perceives the communicator’s as being the source
of the message.
Personal selling –
1) two-way flow of communication
2) between a buyer and seller
3) a face-to-face or real time encounter
Advantages of Personal
Selling
Provides a detailed explanation or demonstration of
product
Message can be varied to fit the needs of each prospective
customer
Instant feedback
Personal persuasion can be used
“A good salesman can get
you to buy ice in winter”
The Personal Selling Process
FOLLOWING UP
CLOSING THE SALE
HANDLING OBJECTIONS
MAKING THE SALES PRESENTATION
APPROACHING THE PROSPECT
Pre approach: QUALIFYING PROSPECTS
PROSPECTING: IDENTIFYING POTENTIAL CUSTOMERS
1. Prospecting and Qualifying
Prospecting: identifying potential customers
Qualifying: Screening leads
Prospecting
It is identifying or finding prospects i.e. prospective or
potential customers.
Methods of prospecting or sales lead generation are:
[Link] from existing customers,
[Link] from company sources (website, ads., tradeshows, tele-
prospecting),
[Link] from external sources (suppliers, intermediaries, trade
associations),
[Link]’ networking,
[Link] directories,
2. Pre approach
Learning as much as possible about a
prospective customer prior to making a sales
call
Pre-approach
Includes 2 tasks:
1. Information gathering about the prospect
2. Precall planning
a. Information gathering about the prospect
Information about: :Prospect’s business,
products/services, plant location, background, etc.
Sources of information: the Internet, industrial
directories, government publications,
intermediaries, trade magazines, annual reports,
etc.
b. Precall planning
Setting Call Objectives: making sales
presentation, gather info, etc.
Planning the Sales Strategy: find out when and
whom to approach by phone call, followed by
personal visit, make tentative plan for presentation
and sales strategy.
3. Approach
Stage where the salesperson meets the customer
for the first time
4. Presentation and Demonstration
Presentation and Demonstration
Benefits of the product are presented/demonstrated
Understanding prospect needs is key
There are four components:
Understanding the buyer’s needs
Knowing sales presentation methods / strategies
Developing an effective presentation
Using demonstration as a tool for selling
Understanding 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 important
E.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/Strategies
Firms 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
Contd…
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.
Contd…
Need – satisfaction method
• Interactive sales presentation
• First find prospect’s needs, by asking questions and listening
• Use FAB approach: Features, Advantages, Benefits
• Effective method, as it focuses on customers
Consultative selling method / Problem-solving
approach
• Salespeople use cross-functional expertise
• Firms adopt team selling approach
• It is used by software / consulting firms
Developing an Effective Presentation
Some of the guidelines are:
Plan the sales call
Adopt presentation to the situation and person
Communicate the benefits of the purchase
Present relevant and limited information at a time
Use the prospect’s language
Make the presentation convincing – give evidence
Use technology like multi-media presentation
Using Demonstration
Sales presentation can be improved by
demonstration
Demonstration is one of the important selling tools
EGs: Test drive of cars; demonstration of industrial products
in use
Benefits of using demonstration for selling are:
• Buyers’ objections are cleared
• Improves the buyer’s purchasing interest
• Helps to find specific benefits of the prospect
• The prospect can experience the benefit
5. Overcoming Sales Objections
Handling Objections and Closing
Asking for the order
Objections take place during presentations / when the
order is asked
Two types of sales objections:
• Psychological / hidden
• Logical (real or practical)
Methods for handling and overcoming objections:
(i) For Psychological objections: ask questions.
(ii) For logical objections: (a) ask questions, (b) turn an
objection into a benefit, (c) deny objections tactfully,
6. Trial close and Closing the sale
Trial close checks the attitude or opinion of the
prospect, before closing the sale
If the response to trial close question is favourable,
then the salesperson should close the sale
Closing the sale means asking for order
7. Follow-up and Service
Necessary for customer satisfaction
Successful salespeople follow-up in different
ways: For example,
• Check order details
• Follow through delivery schedule
• Visit when the product is delivered
• Build long-term relationship
• Arrange warranty service
Personal Selling
Salespeople have many names
Agents
Sales consultants
Sales Representatives
Account
Executives
Sales Engineers
District Managers
Marketing representatives
Account Development Representatives
Examples of Personal Selling
Retail selling
Field selling
Telemarketing
Inside selling
• Represents about 10% of the work force
THEORIES OF SELLING
AIDAS Theory:
ATTENTION
INTEREST
DESIRE
ACTION
SATISFACTION
A Key to Success
Stay Close to
Your
Customer
and
LISTEN!
