13. Personal Selling - Direct Mark... (Chapter 18)
Terms in this set (11)
Representatives of a company interacts directly with a consumer to provide information to help the consumer make a buying decision about a product or service.
* One-to-one Interaction:
- Address Specific Customer Needs
- Alter Message
- Provide Additional Information
*Must have a clear value message
Personal Selling Best when
1. The company is using a push strategy for a new product or service.
2. When the product or service is complex such as real estate.
3. When buyers purchase the product infrequently
4. When the product is expensive (automobiles, expensive jewelry)
5. When buyers will take their time to make up their mind
6. When the product or service is customized
7. When post-purchase service is required
8. When negotiation is required.
Advantages of Personal Selling
- Detailed explanation or demonstration
- Variable sales message
- Directed to qualified prospects
- Controllable adjustable selling costs
- More effective than other promotion in obtaining sale and gaining customer satisfaction
Personal Selling Process
The is the practice used by salespeople to identify, research, and approach potential customers to sell products and services
* Sales is one of the fastest growing careers. Over 15 million people in the US are employed in sales and related occupations. Sales is very demanding and fast-paced but is also financially rewarding. Exceptional sales people are easily identified by top management, making upward career growth possible even with a short tenure at a firm.
Personal Selling Process
1. Prospect and qualify is identifying potential customers (prospecting) and then determining whether the prospect has the potential to become a customer (qualifying).
2. Pre-Approach - During the pre-approach or research stage the salesperson is seeking information on the key decision makers, company business practices, current suppliers and other information that will be helpful in the sales process. There are several sources of information that the salesperson can turn to including Dun and Bradstreet, Hoovers, and Lexisnexus. Some of the best sources of information are non-competing salespeople who have dealt with the company in the past.
3. Approach - The approach stage is where the salesperson contacts the prospect to schedule a sales call. This stage is not about making the sale per se, as the main focus is gaining access to the prospect for a sales presentation.
4. Sales Presentation - The sales presentation is where the salesperson can show the prospect the benefits of using the product or service. One key element of the sales presentation is building a relationship with the prospect. This can be accomplished by finding out information about the buyer (looking around their office for clues helps). The salesperson should also be asking questions about the needs or problems that the prospects company is facing. By doing so, the salesperson has the opportunity to show how the product can deliver the solution.
5. Overcome Objections - Buyers will most likely express objections as a means of not making a purchase decision. These can be based on price (too high), quality, existing supplier, etc. A good salesperson will have already determined the best approach in overcoming the prospects objections.
6. Close the Sale - Addressing a buyer's objections moves the sales process to the point where the salesperson asks for the order. There are many methods for moving the prospect to saying yes, including giving the buyer an option such as "would you like that in red or blue?" or asking "how many cases would you like?"
7. Follow-up - After the delivery has been made the salesperson should contact the buyer to determine if the order was received as expected. This reinforces to the buyer that the salesperson is truly looking to build a relationship.
- Direct Mail/ Telemarketing
- Cold Calling
- Internet web site
- Trade shows/ conventions
- Company records
Lead generation, or prospecting, is the identification of those most likely to buy the seller's offerings.
Sales leads can be secured in several different ways, such as those sources shown on this slide.
- Recognized need
- Buying power
- Receptivity and accessibility
1. When a prospect shows interest in having more information about a product, the salesperson has the opportunity to qualify the lead.
2. Lead qualification consists of determining whether the prospect has three things:
A recognized need
The authority to make the purchase decision and access to funds to pay for it * Receptivity and accessibility to the salesperson
3. The Web site offers a way of qualifying online leads by getting visitors to register for more information.
> Focus on closing sales
> limited sales planning
> discuss product
> assess "product-specific" needs
> "lone wolf" approach
> pricing/product focus
> short-term sales follow-up
The end result of relationship selling tends to be loyal customers who purchase from the company time after time. Relationship selling promotes a win-win situation for both buyer and seller.
Sell advice, assistance, counsel
> focus on customer's bottom line
> sales planning is top priority
> build problem-solving environment
> conduct discovery in operations
> team approach
> profit impact and strategic benefit focus
> long-term sales follow-up
Time Spent in Key Steps of Selling Process
See slide 13
Cialdini's Six Principles
1. Reciprocity: People are more likely to be persuaded when they are given something.
2. Commitment: If people commit, by words or in writing, to an ideal or goal they are more likely to honor that commitment because of establishing that idea or goal as being congruent with their self-image.
3. Social proof: People will do things that they see others doing
4. Authority: People tend to obey authority figures, even if they are asked to perform objectionable acts.
5. Liking: People more easily persuaded by other people that they like
6. Scarcity: Perceived scarcity will generate demand.