SELLING AND

SALES MANAGEMENT
Birat Shrestha
BBA Hons/Emph, KUSOM
August/September 2018
BOOK REFERENCE

Selling and Sales Management -

David Jobber, Geoff Lancaster,
Prentice Hall, 8th edition

Management of Sales Force,

Rosann L. Spiro, William J. Stanton, Gregory A. Rich,
11th Edition, 2011, Tata Mc Grawhill
4. PERSONAL SELLING SKILLS
UNDERSTANDING PERSONAL SELLING
 It is direct interaction between seller and the
potential buyer
 Needs and preferences of the customer are better
understood
 The product presentation and demonstration is
involved
 Personal relationship is built between the
salesperson and the customer
 Mainly used in B2B situations
PERSONAL SELLING PROCESS
The Opening

Need Problem Identification

Presentation & Demonstration

Dealing with Objections

Negotiation

Closing the Sale

Follow-up
THE OPENING
 A favorable initial impression
 Making your right-hand free for hand shake

 Grooming and body language – eye contact, smile,

welcoming nature
 Opening remarks – setting a tone for further sales
presentation – should be business related
 Is your business growth as expected?
 We have been serving similar customers like you
NEED AND PROBLEM IDENTIFICATION
 Discover the problems and needs of the customer
 Understand the customer’s circumstances – type of product,
price range the customer is looking for
 The salesperson should adopt a question-and-listen posture
 Needs analysis - gives the salesperson the opportunity to
offer a solution
 Open question (requires more than a one-word or one-
phrase answer) - Why do you believe that a computer system
is inappropriate for your business?
 Closed question (invites a one-word or one-phrase answer)
- Would you tell me the name of the equipment you currently
use?
 Types of question used in personal selling - Table 8.2, page 253
 THE PRESENTATION AND DEMONSTRATION
 Presentation as per customer requirements
 Benefits analysis – buying a particular product and buying
from a particular supplier
 Linking features and benefits – which enables you to...
 Four ways to reduce risk for the buyer by salesperson
1. Reference selling (referring to a satisfied customer)
2. Demonstrations (tell me and I‟ll forget; show me and I may
remember; involve me and I‟ll understand – Chinese proverb)
 Two-stage approach – i. product features, benefits description ii. demo
 Pre-demonstration – a. tailor the demo; b. make it simple & never „over-
pitch‟ technicality as buyer will just pretend to understand; c. rehearse the
objections with colleagues; d. know the product‟s selling points & address
the buyer with „you‟ when showing the benefits; e. rehearse demonstration
 Demonstration – a. tell what is to be done with buyer involvement;
b. product demonstration; c. buyer participation in demo; d. selling points
 Advantages of Demonstration – a. add realism; b. buyer benefit
experience & proof ; c. more convincing; overcoming purchasing inhibitions
3. Guarantees (confidence to the salesperson‟s claims)
4. Trial orders (for new suppliers to breakthrough the buyer)
 DEALING WITH OBJECTIONS
 Listen and do not interrupt (listen carefully, attentively and
respectfully) - buyer will appreciate the fact that the salesperson is
taking the problem seriously and the salesperson will have clear idea of
the buyer’s problem
 Agree and counter (first agree that what the buyer is saying is sensible
and reasonable, before then putting forward an alternative point of view)
– Yes I agree that it‟s a bit expensive, but the ownership cost is not very
high as Ms. Mary you know is also satisfied with it (use referent selling)
 The straight denial (it can be used when the buyer is clearly seeking
factual information) – no, this is absolutely easy to maintain
 Question the objection (question the nature of the objection in order to
clarify the specific problem) – tell me what exactly are you looking for in
this product? We have options
 Forestall the objection (anticipates objection and plans its counter) -
pre-empt the objection by raising it first – we don‟t have that feature, but
we are good in others
 Turn the objection into a trial close (the sale without prejudicing the
chances of continuing the selling process) – if I can confirm that our
engine has more fuel efficiency, would you buy it?
 Hidden objections (prospect not objecting to be on friendly terms)
uncovering objections - second guess –let me know if you need further
information
NEGOTIATION
 Start high but be realistic
 Making the opening stance high - the buyer might agree to it and it
provides room for negotiation
 A buyer may come to expect concessions from a seller in return for
purchasing
 The limiting factor must be kept as per the buyer’s expectation

 Attempt to trade concession for concession

 It may be necessary to give a concession simply to secure the sale
 If the seller has left some negotiating room, this may be perfectly
acceptable
 When the seller has a degree of power through being able to meet
buyer requirements better than competition, the seller may be able
to trade concessions from the buyer – if you are prepared to make
the payment on delivery, I can give you 10% cash discount
NEGOTIATION
 Implement behavioural skills
 Ask questions (to seek information)
 Use labelling behaviour (I would like to clarify on that)
 Do not label disagreement (“I don‟t agree with you” statement
will make the buyer defensive)
 Maintain clarity by testing understanding and
summarizing (Let me see if I‟ve got this right)
 Give feelings (emotional appeal to an alternative to hard facts –
atmosphere of trust)
 Avoid counter-proposing (an instant turnoff from the buyer’s
proposal should not be done – think and answer)
 Avoid the use of irritators (listen I‟ve been selling this for years,
and you are just new to industry) – avoid these types
 Do not dilute your arguments (only present few strong
arguments, many points will allow the buyer to attack on weaker
ones)
 Avoid personalising the discussion (don’t get personal) – avoid
using words like – your offer is ridiculous
NEGOTIATION
 Buyers’ negotiating techniques
 Shotgun approach – if don‟t agree to price reduction, we‟ll
have to look for other options (check balance of power)
 Sell cheap, the future looks bright – your price is too
high, decrease it as we need many of them in future – ask for
firm’s commitment – LTA (Long Term Agreement)
 Noah’s Ark – I‟ve got quotations from your competitors and
they are far below – the salesperson can say – then I advise
you to choose from one of them (if the buyer is bluffing)
CLOSING THE SALE
 An effective presentation should lead the buyer
to ask for the product without the seller needing
to close the sale
 Salespeople should therefore look out for such
buying signals and respond accordingly
 Closing the sales when buying intention is at a
peak – after matching all product benefits to
customer needs
 Trial close – closing the sale even if the planned
sales presentation is incomplete
 CLOSING THE SALE
 Simply ask for the order
 Asking directly for the order - ‘shall I reserve you one?’
 The key to using this technique is to keep silent after you have asked for the order
 Ask a closed question implying a yes or no answer
 Summarise and then ask for the order
 Allows the salesperson to remind the buyer of the main points
 Well we have agreed that it enhances your productivity, shall I place an order?
 The concession close
 Keeping one concession in reserve to use as the final push
 If you are willing to place an order now, I’m willing to offer an extra 2.5 per cent discount
 The alternative close
 Assumes that the buyer is willing to purchase but moves the decision to an alternative like
color, delivery date
 Would you like red or blue; would you like to be delivered on Tuesday or Thursday
 The objection close
 Use of an objection as a stimulus to buy
 If I can convince you that this model is the most economical in its class, will you buy it?’
 Action agreement
 Salespeople do not try to close a sale but instead attempt to achieve ‘action agreement’
 Would you give me your date for the next week?
FOLLOW-UP
 Ensure that the customer is satisfied with the
purchase and no problems with factors such as
delivery, installation, product use and training
 It is important for repeat sales

 It is showing care for the customers

 Emails can be used for follow-ups – appreciation

Email for buying
 Websites - customers to log into a secure buyer
website to track the status of their orders, order
products online or pay invoices online
THANK YOU/BEST WISHES
Questions/Answers/Discussions