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1、Selling and negotiation skills,Qualities of a professional sales executive-Thorough analysisMarket efficient qualitative and quantitative personal-selling objectives,Selling and negotiation skills,Appropriate sales policiesPersonal selling strategy,Selling and negotiation skills,Skillful application
2、 of organizational principles to the conduct of a sales operationThe ability to install,operate and use control procedures appropriate to the firms situations and objectives,Responsibilities of a sales executive,1)to their organization2)to the customers3)to the society,Responsibilities towards the o
3、rganization,1)obtaining sales volume2)providing profit contributions3)continuing business growth,Responsibilities towards the customer,Customers can be wholesalers,retailers or industrial usersAll of them expect to supply easily resalable products and services,Responsibilities towards the customer,B
4、acked by supporting activities(training to dealers sales personnel,help in preparing local advertisement,provision of credit etcAssurance that the products and services are wise investment,Responsibilities to the society,Society looks to them to assure the delivery of goods and services that final b
5、uyers wants at prices that final buyers are willing to payTo develop and market products which are minimal environment damaging(socially responsible products),Evolution of the sales department,Prior to industrial revolution,small-scale enterprises dominated the economic scene.Orders were obtained wi
6、th minimum effortsSingle individual supervised all the phases of the business,Evolution of the sales department,Manufacturing problems received the most attention(selling and marketing was handled on a part-time basis)With industrial revolution,which began in 1760,in England(shortly after the Americ
7、an revolution),finding new markets became essential,Evolution of the sales department,Adjacent markets could not absorb the increased quantities Sales departments were established only after the activation of manufacturing and financial departments,Sales executive as a-coordinator,Coordination invol
8、ving-1)the organization2)the planning3)other elements in the marketing strategy,Organization and co-ordination,Coordination of the different order-getting methods personal selling,advertising etc)Inside the sales department,under democratic administration,co-ordination of units under respective cont
9、rol,Planning and co-ordination,In marketing objectives and draft plans at optimum costDetermine the elements(personal selling,advertising etc),Planning and co-ordination,Apportioning the relative amountsSeek to secure a marketing program that is both appropriate for market conditions and reflects th
10、e probable contribution of the sales force,Coordination with other elements,Like advertising,display and other promotional effortsSynchronizing personal selling with advertising,Coordination with other elements,Point-of-purchase displays are set up in retail stores where customers will see them at t
11、he precise time that tie-in advertisements appear in national and local mediaAlerting dealers to special couponing or sampling effort so that they can benefit from heightened customer interest,Co-ordination with distributive network,Gaining product distributionObtaining dealer identification to avoi
12、d clogged distribution channels Reconciling business goals-of manufacturers and middlemenSharing promotional risks(co-operative advertising),Coordination and implementation of overall marketing strategy,Sales executives see that field sales personnel integrate every phase and segment of the promotio
13、nal programs of distributors and dealers,Personal selling situations,1)services selling2)developmental selling3)developmental but unusual creative,Service selling,1)inside order taker-sales clerk behind neckwear counter at a store2)delivery sales person-delivering bread,milk,oil,Service selling,3)ro
14、ute or merchandising salesperson-the soap or spice salesperson calling on retailers,Service selling,4)missionary-only to build goodwill,not expected to take orders-pharma detailing5)technical sales person-engineering sales person,Developmental selling,1)creative,selling tangibles-vacuum cleaners,aut
15、omobiles,encyclopedias2)creative,selling intangibles-insurance,advertising services,educational programs,Developmental-but unusual creativity,1)political,indirect or back-door salesperson-getting large orders for flour from baking companies by catering to key buyers interests in fishing,golfing etc,
16、Developmental-but unusual creativity,2)salesperson engaged in multiple sales-involves sales of big-ticket items to committee consisting of several individuals-ad agency account executive,Is selling an art or science?,In a survey of 173 marketing executives,46%perceived selling as an art8%as science4
17、6%as an art evolving into a science,Selling theories-,1)AIDAS-attention,interest,desire,action,satisfaction 2)Right set of circumstances theory-3)buying formula-4)Behavioral equation theory-,1)AIDAS,Attention-can be grabbed by favorable first impressions like proper attire,neatness,friendliness and
18、genuine smile Opening remarks be about the prospect or favorable comments about prospects business,How to create interest?,Develop a contagious enthusiasm for the product or a sampleUse flipcharts,sales portfolios or other visual aids in case of technical or bulky productsFind out basic motivation o
19、f prospects,their mood(receptive,skeptical,hostile),Kindling desire,By keeping the conversation running on the main courseObstacles must be faced and ways found to get around them,Kindling desire,Objections be answered,before they are raised,Kindling desire,External interruptions cause break.After r
20、esuming,summarise what has been saidDigressive remarks be disposed off tactfully with finesse(distracting digression be handled bluntly),Inducing action,Buying is not automatic and as a rule must be inducedThe trial close,close on a minor point and the trick close are used to test the prospects reac
21、tionsAsk for the order straightforwardly,Building satisfaction,By thanking the customer for the orderReassure the customer that the decision was correct,Building satisfaction,Customer should be left with the impression that the sales person merely helped in decidingThe order is the climax of the sel
22、ling situation-possibility of anticlimax be avoidedSales person should not linger too long,2)Right set of circumstances-theory,Situation response theory,2)Right set of circumstances-theory,Particular circumstances prevailing in a given selling situation cause the prospect to respond in a predictable
23、 wayMore skilled the salesperson is in handling the set of circumstances,the more predictable is the response,3)Buying formula-theory of selling,1)if the prospect does not feel a need or recognize a problem that can be satisfied by the product or service,the need or problem should be emphasized,3)Bu
24、ying formula-theory of selling,2)if the prospect does not think of the product or service when he or she feels the need or recognizes the problem,the association between need or problem and product or service should be emphasized,3)Buying formula-theory of selling,3)if the prospect does not think of
25、 the trade name when he or she thinks of the product or service,the associations between product or service and trade name should be emphasized,3)Buying formula-theory of selling,4)if need or problem,product or service,and trade name are well associated,emphasis should be put upon facilitating purch
26、ase and use,3)Buying formula-theory of selling,5)if competition is felt,emphasis should be put upon establishing in the prospects minds the adequacy of the trade-named product or service,and pleasant feelings toward it,3)Buying formula-theory of selling,6)if sales to new prospects are desired,every
27、element in the formula should be presented7)if more sales to old customers are desired,the latter should be reminded(developing new uses is comparable to selling to new customers),Behavioral equation theory(j.a.howard),Is based on stimulus-response modelSophisticated version of the right set of circ
28、umstances theory4 elements of the learning process-drives,cue,response and reinforcement,equation,B=PXDXKXV where,B=response or the internal response tendency,i.e.the act of purchasing a brand or patronizing a supplierP=predisposition or the inward responseD=present drive level(amount of motivation)
29、K=inventive potential that is,the value of the product or its potential satisfaction to the buyerV=intensity of all cues:triggering,product,or informational,Summary of J A Howard theory,When the satisfaction(K)yields a reward,reinforcement occurs,and,technically,what is reinforced is the tendency to
30、 make a response in the future to the cue that immediately preceded the rewarded response.,Summary of J A Howard theory,After reinforcement,the probability increases that the buyer will buy the product(or patronize the supplier)the next time the cue appears-buyer has learned,prospecting,Is the plann
31、ing work which is essential in eliminating calls on non buyersSteps in prospecting-1)formulating prospect definitions,prospecting,2)searching out potential accounts3)qualifying prospects and determining probable requirements4)relating company products to each prospects requirements,Formulating prosp
32、ect definition-,Prospective customers-Must have the willingnessThe financial capacity,Formulating prospect definition-,Authority to buyMust be available to the sales personKey characteristics of profitable accounts be found and used while screening the prospects,Searching out potential accounts,Dire
33、ctories of all kindsNews and notes in trade papers and business magazinesCredit reports,Searching out potential accounts,Membership lists of chambers of commerce and trade and manufacturers associationLists purchased from list brokersResponses to company advertising,Searching out potential accounts,
34、Sales personnel of non-competing firms calling on the same general class of tradeConventions and meetingsBankers and other centers of influence,Searching out potential accounts,Salespersons own observationEndless chain(of satisfied customers)Insurance salesman uncover prospects among their acquainta
35、nces,members of their professional,religious and social organizations and referrals of friends,Qualifying prospects and determining probable requirements,Prospects with requirements too small to represent profitable business are removed from further consideration unless their growth possibilities sh
36、ow promiseAdditional information by personal visit to confirm prospects from nonprospects,Relating company products to each prospects requirements,By a tailored presentationClear idea about specific likely objections being raised and other obstacles to the sale that may be encountered,Relating compa
37、ny products to each prospects requirements,The salesperson is ready to contact the prospectThe remaining tasks are-making an appointment,deciding how to open the presentation and determining how to persuade the prospect to become a customer,Sales resistance-,In the form of obstacles or an objectionO
38、bstacle is real or unrealObjection is sincere or insincere,Obstacles to sales,E.g.“a temporary shortage of cash prevents buying”Can be circumvented by explaining a method for financing the purchase,Sales objections,At best,an objection requires a satisfactory answer;at worst,it blocks the saleSincer
39、e objections trace to incompleteness,in-accuracy,or vagueness in the sales presentation,Sales objections,Prospects may be confused about their own need or may react unfavorably to the salespersons personalitySincere objections are overcome by patient and thorough explanations,Sales objections,Insinc
40、ere objections are raised by the customer to get rid of the salesman or to check their competenceInsincere objections should not be allowed to provoke into an argument,Handling objections,One theory says that each objection be treated with utmost courtesy,Handling objections,Another theory suggests
41、to ignore insincere objectionsThe best defensive strategy often is the strong counterattack and the salesperson should try to regain the initiative as he or she can gracefully possible,Closing sales,Low pressure sales are closed more easily than high pressure ones,Closing sales,In low pressure sales
42、,prospects feel that they are reaching the buying decisions themselves,and primarily through rational processes of thought,so there is no need for extra push just before the sales are consummated,Closing sales,In high pressure sales,the main thrust is to the prospects emotions,so salespersons attemp
43、t to propel prospects into buying decisions.Often the prospect regains normal perspective as the sale nears its climax,and,if this happens,the salesperson needs unusually effective persuasion to close the sales,closing,When an attempted close fails,the salesperson should normally try another.The ref
44、usal does not necessarily imply an unwillingness to buy;it may indicate the prospects need for additional information or clarification of some point,closing,Some executives recommend that sales personnel attempt as many as five closes before giving up,closing,Early closing attempts should be so expr
45、essed that a refusal will not cut off the presentationThe sales person first uses an indirect close,i.e.attempts to get the order without actually asking for it,In-direct close,The sales person may ask the prospect to state a preference from among a limited number of choice(as to models,delivery dat
46、es,order size,or the like)so,phrasing the question that all possible responses are in the salespersons favor.,In-direct close,Secondly,the salesperson may summarize,emphasizing features that visibly impress the prospect,showing how the reasons for the purchase outweigh those opposed to it till he ge
47、ts a response like,go ahead and write the order and hand it to the prospect for approval-if the prospect balks,the issue is clearer,In-direct close,Perhaps one last objection is voiced,but after it is answered,the sale is made,Direct close,When one or more attempts at an indirect close fail,the sale
48、s person uses the direct approach.,Direct close,Few prospects respond negatively to a frank request for the orderMany people,especially those who are themselves engaged in selling,do not buy unless the order is asked for outright,Personal selling-qualitative objectives,1)to do the entire selling job
49、(as when there are no other elements in the promotional mix2)to service existing accounts(that is,to maintain contacts with present customers,take orders,and so forth),Personal selling-qualitative objectives,3)to search out and obtain new customers,Personal selling-qualitative objectives,4)to secure
50、 and maintain customers cooperation in stocking and promoting the product line5)to keep customers informed on changes in the product line and other aspects of marketing strategy,Personal selling-qualitative objectives,6)to assist customers in selling the product line(as though missionary selling)7)t
