13th July13
Selling Methods:
Product
Ceiling fan Fruit juices
Feature
2 Ball bearings 100% juice
Advantage
Very quiet Great nutrition
Benefit
Great for classrooms On-the-go meal for children
FAB
Writing Pen
Running shoes
Demo.
Attributes Car Price , Safety , Resale value , Mileage , Leg space , Boot space , 4-W drive , Colour , Dashboard , Acceleration , look-at-me , .. Create a 10-pronged FAB approach to selling of a Car ( say Maruti Swift ) to customers with varying needs.
Need recognition
Information search
Evaluation of alternatives
Purchase decision
All consumers whether individuals or households or business pass through certain steps in buying a product. The steps are mental for most individuals or HHs but could be formal for business ( Depending upon value of purchase , technicality of buy). Every buying process begins with a need ( real or
Need recognition
perceived) . The stimuli could be internal or external ( hunger vs appetizing food / appealing looks. The stimuli could be physiological or psychological.
Nature of search could vary from passive to active with intensity depending upon :
Size of purchase Involvement with product Complexity
evaluated ( weighed) on their ability to satisfy the need. Example Car buyer may be looking at product attributes such as Price , safety , resale value , mileage , leg space , boot space , 4-wheel drive , colour , dash board Consumer forms preferences among brands leading to an intention to buy the most preferred brand.
Car
Sales Strategy
Specific customers are classified into different customer groups.
All customers within a target segment are not exactly the same.
Companies develop different sales strategy for each of these customer groups allowing for better targeting.
The relationship between buyers & sellers falls in the range of : Transactional relationship ( Low sales / profit ; low loyalty) vs ( Less discounts , services & commt.) Collaborative relationship ( High commitment ; High value ; L.T) vs (Joint efforts prob. solving & integration) Value-added relationship ( Medium sales / profit ; Potential)
( Mid-scale ; Exceed competition)
Relationship Strategy
Sales Strategy
Sales people use different selling methods to suit different relationship strategies. No hard & fast rules Flexibility is the key Broad listing of selling methods : i. Stimulus response method :
Canned approach Memorized sales presentation or prepared sales presentation. Foundation being Right stimuli leads to right response Product centric vs Need centric. Used by tele-marketing , door-to-door sales people. Best used when relationship strategy is ?
ii.
Formula method :
More evolved stimulus based approach. Approach based on AIDA ( Attention , Interest , Desire and Action ) Best used when relationship strategy is ? This method focuses on the customer. It begins with understanding of buyers needs ( 5 Ws ). More creative and sales effective . Then discussion follows on how the sellers product can meet the customers needs better than that of a competitor. ( FAB ) Best used when relationship strategy is ?
Selling methods
iii.
Need-satisfaction method
iv. FAB
Sales Strategy
v. Consultative selling method
Also referred to as problem-solution method. Requires the seller to have an in-depth understanding of the customers company Needs / strategic goals / values Commonly deployed approach by advertising , marketing , research and IT companies . Best used when relationship strategy is ?
Selling methods
Sales managers need to ensure that the customers ( specific or group) receive effective & efficient service. The various sales channels available to reach the customer are :
1. 2. 3. 4. 5. 6. 7. 8. Company sales force 3rd party dedicated sales force ( ma foi) Distributors Tele-marketing Internet Brokers and commission agents. Dedicated outlets ( Company showrooms). Franchisees
Channel Strategy
Preapproach
Approach
The selling activities consist of various steps of the selling process. We discussed the art of selling in the earlier lessons. Understanding the PS process is the science of selling. No magic formula for sale but following the process would improve the chances of success.
Preapproach
Information gather is followed by planning the sales call ( i.e setting of objective for the call ) :
Understanding customer need / requirement. Brief on company / product Relationship building.
Approach
1. Introductory approach Salesperson begins with a salutation & introduces self , company. 2. Customer benefit approach Identifies benefit sought by buyer and appeals to it. Schools Offices Airlines 3. Product approach
Product is carried and shown / sampled useful with new , unique product 4. Question approach Salesperson leads with a question to get the conversation rolling or to get the prospect curious .
5. Praise approach Sincere & subtle praise lower resistance ( Energy , dcor , leadership ..)
2. 3.
Sales presentation can be improved by demonstration especially when a USP exists & has a touch / feel / taste / hear / see ( 5 senses ) element.
Car test drive Food / beverage sampling. Sample flat
Sales does not end at procuring the order. Salesperson needs to ensure customer requirements ( special time of delivery , credit , packaging dates etc) are understood & executed correctly. Relationship building thru Win+Win transactions allows for increase in account share through width & depth expansion.
3. Assumptive close
Have seen the stock position & this is the order.
4. Summary-of-benefits close
Closing techniques
>>N
7. Probability close
Buyer says will let you know Prob. Fix Retry if < 50%
8. Negotiation close
Win-Win approach helps to build L.T sustainable relationship & continued stream of revenues & profitability..
Product Features Maxima The display dial is extra digital watch large sized.
Multi-functions like alarms , Only sub-Rs 1000 brand with stop watch & countdown these features. timer.
Available in 10 colour choices. Breaks the monotony & lends brightness to look.
Versatile accessory that you can mix-n-match with your dressing. Symbol of class & success for the world. Unmatched life time accuracy
Price of Rs 3 lacs
Affordable only to the very wealthy. Removes wear / tear of the movement.
Quartz movement uses revolutionary XYZ technology . Mother of pearl dial face
The watch would be a true reflection of your taste & personality and thus would be a truly big status symbol.