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CH1
What
is
selling?
Personal
Selling:
Salesperson
examines
a
- customers
situation/needs
- provides
information
and
advice
- seeks
to
gain
commitment
from
the
customer
that
will
be
continuous
Consultative
component:
- The
customers
situation,
problem
and
needs
Advantages:
- Customer
satisfaction
- Customer
loyalty
- Word
of
mouth
- Long
term
profit
Challenges:
- Salespersons
requires
skills
- Salespersons
stress
Influence
Component:
Gain
commitment
Consultation
and
Influence
Selling
as
problem
solving
Steps
(IDSF)
1
Identify
problem
2
-
Develop
and
evaluate
potential
solutions
3
Select
&
communicate
the
best
solution
4
Follow
through
to
ensure
the
solution
is
effective
Required
skills
- Analytical
skills
- Communication
skills
- Presentation
skills
- Persuasion
skills
The
Buyers
Side
Why
do
they
buy?
- Selling
creates
economic
exchange
- Involves
profits
for
both
parties
Buyers
value
=
Benefits
received
-
[Selling
price
+
Time
and
effort
of
purchase]
The
Role
of
personal
selling
in
a
firm?
The
purpose
of
selling
increase
the
profit
Profit
=
Price
X
Quantity
-
Cost
Information
provider
to
their
firm
Salesperson
Information
provider
to
the
firm
Role
of
sales
Traditional
&
Modern
view
Marketing
process:
- Situation
analysis
- Objectives
- Market
segmentation
- Marketing
Mix
- 4
Ps
- Budgets
and
controls
Tasks:
- Investigate
market
- Identify
targets
- Groups
of
customers
with
same
needs
- Develop
integrated
strategy
to
attract
selected
customer
groups
Modern
View:
- What
strategic
input
may
sales
be
able
to
deliver
- Market
intelligence
What
are
the
different
types
of
salespeople?
Distribution
channel:
Set
of
people
and
organisations
responsible
for
flow
of
products
and
services
from
producer
to
ultimate
user
Business
to
business
channels
Direct
sales
to
a
business
customer
Sales
through
distributors
to
business
customers
Industrial
sales
people
Employed
by
manufacturer
to
sell
to
businesses
Trades
salespeople
Employed
by
manufacturer
to
sell
to
distributor
Distributor
salespeople
Employed
by
distributors
to
sell
to
business
Missionary
salespeople
Work
for
manufacturer
and
promote
their
products
to
other
firms
Customer
channels
1. Direct
sales
to
consumers
2. Sales
through
retailers
3. Sales
through
distributors
Manufacturer
agents:
Independent
businesspeople
paid
a
commission
by
manufacturer
for
products
and
services
sold
Describing
the
sales
job
Characteristics
Gatekeepers:
- Control
the
flow
of
information
and
limit
the
alternatives
considered
- Ensure
purchases
are
consolidated
under
one
contract
- Reduce
costs
and
increase
quality
Deciders
- Make
the
final
choice
Users:
- Do
not
make
the
ultimate
purchasing
decision
- Manufacturing
personnel
for
OEM
products
&
capital
equipment
Types
of
customers:
(PGCRI)
Producers
- Buy
products
&
services
to
manufacture
and
sell
their
products
&
services
to
customers
Government
agencies
- Purchase
goods
&
services
- Develop
quantified
specifications
for
products
- Invite
qualified
suppliers
to
submit
bids
- Conduct
small
purchases
without
bidding
Consumers
- Purchase
products/services
for
use
by
themselves
of
by
their
families
Resellers
- Buy
finished
products
or
services
with
the
intention
to
resell
them
to
business
consumers
Institutions
- Public
and
private
Why
does
it
matter
for
salespeople?
- Different
needs
- Different
purchase
processes
- Different
importance
of
relationship-building
Government
agencies:
Multi-attribute
model
of
product
evaluation
and
choice
(PIOVS)
- Performance
evaluation
of
characteristics
- Importance
weights
- Overall
evaluation
- Value
offered
- Supplier
selection
Implications
for
salespeople
-
Approaches
for
changing
perceived
value
Increase
performance
rating
for
the
product
Decrease
the
rating
of
competing
products
Increasing/decreasing
an
importance
wright
Adding
a
new
dimension
-
Decreasing
the
price
of
the
product
Types
of
organisational
buying
decisions:
New
purchase:
purchasing
a
product/service
for
the
first
time
Straight
re-buys:
Buying
the
same
product
from
the
source
it
was
previously
bought
Modified
re-buys:
Obtain
new
information
about
a
product
purchased
in
the
past
Making
a
purchase
decision
Think
again
of
the
complex
product
in
which
you
analysed
before
Try
and
identify
different
steps/activities
that
you
undertook
before
and
after
the
purchase
Organisational
buying
process
(RDDSAEPE)
- Recognition
of
need
- Define
product
type
needed
- Development
of
detailed
specification
- Search
for
qualified
suppliers
- Acquisitions
and
emphasis
of
proposals
- Evaluate
proposal
select
supplier
- Place/receive
order
- Evaluation
or
product
performance
Supplier
evaluation
and
choice
selection
of
products
&
suppliers
are
affected
by
the
needs
of:
Supplier
evaluation
&
selection
of
products
&
suppliers
are
affected
by
the
needs
of:
- organisations
- individuals
making
the
decisions
Categories
of
organisational
and
personal
needs:
Rational
needs:
Performance
of
the
product
Emotional
needs:
Personal
rewards
&
gratification
of
the
person
buying
the
product
Factors
influencing
organisational
buying
decisions:
Organisational
factors:
Economic
criteria
Quality
criteria
Service
criteria
Individual
factors:
Needs
of
buying
centre
members
Personal
risks
Personal
needs
Economic
criteria
Life-cycle
cost
-
May
have
higher
initial
cost,
but
lower
lifetime
cost
(power,
maintenance,
operating)
Service
criteria
- Value
analysis
- Remove
unnecessary
components
- Use
other
materials
CH
3
Using
communication
principles
to
build
relationships
Two
Way
communications
Encoding
The
sender
(seller)
encodes
messages
Decoding
Receiver
(buyer)
decodes
message
Feedback
The
receiver
becomes
the
sender
who
encodes
a
reply
message
The
receiver
then
decodes
the
buyers
message
Communication
breakdown
- Environment
(noise,
physical
comfort)
- Encoding
&
decoding
problems
- Buyers
hidden
agenda
Sending
verbal
messages
effectively
Achieve
persuasion:
The
salesperson
attempts
to
convince
people
to
change
their
attitude
or
behaviours
regarding
an
issue
while
understanding
that
the
other
person
is
free
to
accept/reject
the
idea
- choice
of
words
(dos:
strong,
force,
charm
donts:
overeager,
tasteless,
slang
- voice
characteristics
(rate
of
speech,
loudness,
inflection,
articulation
- stories
(word
pictures,
analogies)
- keep
open
lines
of
communication
(80%
listening
20%
speaking)
Active
listening:
Think
about
speakers
conclusions,
evaluate
evidence
presented,
sort
out
important
facts
from
irrelevant
ones,
attempt
to
draw
out
as
much
information
as
possible
How
can
you
improve?
Repeat
information,
restate
or
rephrase,
clarify
information,
summarise
conversation,
tolerate
silence,
concentrate
on
the
ideas
being
communicated
Face
to
face
communication
Words
40%
Voice
10%
Nonverbal
50%
Non-verbals:
Body
angle
Back
and
forth
motions
positive
outlooks
Side-to-side
motions
Insecurity,
doubt
Towards
person
positive
regard
Leaning
back
boredom,
apprehension,
possible
anger
Face
Large
pupils
interest/excitement
Blink
rate
50-70
minute
=
stress
Focus
straight
=
passive,
staring
=
anger
&
dislike,
right
=
logic
&
facts,
left
=
emotional,
down
=
concentration,
away
extensively
=
disinterest
Arms
Crossed
-
disagree
Movement
rate
high
convey
opinion
Movement
style
broad
vigorous
=
more
empathetic
about
point
being
conveyed
Hands
Open
&
relaxed
positive
signal,
especially
with
palms
facing
upward
Touching
own
hands
tension
Involuntary
gestures
reveal
true
inner
emotions
Legs
Open
&
uncrossed
cooperation,
confidence,
friendly
interest
Crossed
away
disinterest,
with
to
end
the
call
Distance
Zones
Intimate
zone
For
closest
relationships
Personal
zone
For
close
friend
and
people
with
shared
interests
Social
zone
For
business
transactions
and
other
impersonal
relationships
Public
zone
For
speeches
and
passers-by
Customer
touching
groups
Non
contact
(STOP)
-
see
contact
as
overly
friendly
and
obtrusive
-
reaction:
disliking,
aggressions
Contact
(YES)
-
see
non-contact
as
cold
and
unfriendly
-
reaction:
liking
and
persuasion
Attire
Dress
for
success
Consider
geography
temperatures
&
local
cultural
norms
Consider
customers
their
appearance,
their
expectations
of
your
appearance
Consider
corporate
culture
norms
for
your
industry
Consider
aspirations
top
levels
of
your
organisation,
dress
above
your
position
Consider
personal
style
wait
until
you
have
the
halo
effect,
be
reasonable
Telephone
communications
Decide
what
to
say
before
Be
polite,
enthusiastic
and
an
active
listener
Take
notes
and
restate
the
message
Encourage
two-way
communications
with
verbal
ones
Give
customer
opportunity
to
ask
questions
Tips
for
voicemail
Email
communications
Immediacy
does
not
mean
intimacy
Use
meaningful
subject
lines
Put
important
in
the
first
few
lines
Finding
leads
Satisfied
customers
larger
quantities,
cross-selling,
generate
75%
of
customers
Endless
chain
attempt
to
secure
at
least
1
additional
lead
from
each
interview
Networking
personal
relationships
with
those
connected
&
secure
leads
Social
media
using
online
tools
to
prospect
for
customers
&
maintain
contact
Overcoming
fear
of
prospecting
and
coping
with
rejection
- Identify
&
evaluate
excuses
not
to
call
- Engage
in
sales
training
&
role-playing
- Prospect
with
supporting
partner
or
sales
manager
- Stop
negative
self-evaluation
Develop
a
positive
approach:
Identify
genuine
feelings
or
reluctance
Understand
that
not
all
individual
targets
will
lead
to
success
No
is
an
rejection
of
the
offer,
not
you
Reasons
for
rejection:
Company
related
may
not
have
corporate
image
of
reputation
the
client
seeks
Competition
related
may
have
been
approached
by
competitors,
reject
due
to
overkill
CH
6:
Planning
The
Sales
Call
Why
do
you
need
to
prepare?
Buyers
perspective:
respect
&
confidence
Sellers
perspective:
higher
chance
to
meet
objectives
What
do
you
need
to
prepare?
Information
about
prospect
Individual
prospect:
personal,
attitudes,
relationships,
evaluation
at
offering
Prospects
organisation:
demographics,
customers,
competitors,
current
buying
situat.
Sources:
CRM,
internet,
secretaries,
non-competing
salespersons
Selling
your
objectives
Setting
sales
call
objectives
Specific
What
they
hope
to
accomplish?
What
the
objective
targets
are?
Measurable
Goals
can
be
objectively
evaluated
&
require
a
buyers
response
Achievable/realistic
Challenging
but
reachable,
consider
cultural
differences
Time
based
Achieved
within
a
set
time
frame
Examples
of
sales
calls
Leading
up
to
sale
To
have
the
prospect
agree
to
demonstration
of
the
product
To
schedule
a
meeting
to
further
discuss
proposal
To
do
a
complete
survey
of
buyers
requirements
To
convince
the
buyer
to
endorse
the
product
to
the
buying
committee
Related
to
consummating
the
sale
To
obtain
an
order
from
the
prospect
To
schedule
a
co-op
advertising/marketing
program
To
make
the
prospect
agree
to
a
trial
run
of
the
product
To
convince
the
retailer
to
display
our
promotional
offer
Problem
questions
Questions
about
specific
difficulties
&
problems.
Goal:
uncover
problem
Implication
questions
Follow
problem
questions
help
prospect
recognise
ramifications
of
problem
&
desire
to
solve
Need
payoff
questions
Implication
questions,
gauge
buyers
value
of
solving
the
problem
&
offer
solution
If
buyer
doesnt
find
problem
severe,
identify
other
problems
Translate
features
into
benefits
Feature
Quality/characteristic
of
the
offering
Benefit
A
way
in
which
a
particular
feature
will
help
a
particular
buyer
FAB
Features
Advantages
Benefit
FEBA
Feature
(mention)
Evidence
(provide)
Benefit
(explain)
Agreement
(ask
for)
Making
adjustments:
Changing
direction
Collecting
additional
information
Developing
a
new
sales
strategy
Altering
the
style
of
presentation
Creating
credibility
and
trust
Commit
to
time
meeting
takes
and
stick
to
it
Back
up
claims
Credibility
statements
Balanced
presentations
Demonstrate
product
expertise
Four
As
of
Selling
Process
Acknowledge
Acquire
Advice
Assure
CH
8
Responding
to
objections
obtaining
commitment
Objections:
Concern
or
a
question
raised
by
the
buyer
Right
attitude:
Show
proper
attitude
welcome
objections,
answer
sincerely,
refrain
from
arguing
Right
self-perception:
See
yourself
as
helper,
counsellor,
advisor
Postpone
method:
- Seek
permission
to
answer
the
question
after
the
presentation
- Useful
when
a
price
objection
occurs
early
in
the
presentation
- Answer
directly
Objections
when
selling
to
a
group
- Get
an
idea
of
whether
other
buyers
share
the
concern
- Throw
the
concern
back
to
the
group
- Any
response
should
be
directed
to
all
buyers,
not
just
that
which
asked
the
question
- Make
sure
all
buyers
are
satisfied
with
the
answer
Most
common
Price
objection
- Most
frequently
mentioned
obstacle
- Use
up-to-date
information
- Dont
lower
price
as
a
first
response
- Establish
the
value
Two
step
approach
Recall
Aspects
Discussed
- Types
of
objections
- Best
practice
handling
objections
- Response
options
to
objections
Closing
Asking
for
the
buyers
business
Dont:
Use
the
traditional
focus
on
closing
no
matter
what
As
it
- Damages
trust
- Insults
the
buyers
intelligence
- Raises
the
possibility
of
losing
commitment
Do:
- Close
should
be
the
natural,
logical
progression
of
the
sales
consultation
- Win
buyers
commitment
that
enables
a
close
Commitment
Examples:
- Informing
buyer
&
having
them
read
product
brochure
- Set
up
follow-up
appointments
- Have
buyer
visiting
for
product
demo
- Have
buyer
agreeing
to
call
reference
customers
- Have
buying
using
offering
for
trial
product
When
to
attempt
to
obtain
commitment
Closing
cues:
indications
that
the
buyer
is
ready
to
buy
Verbal
cues:
questions
about
product,
requirements,
benefit
statement,
response
to
trial
Non-verbal
cues:
facial
expression,
actions
To
successfully
obtain
commitment
Best
practice:
- Positive
attitude
- Let
customer
set
pace
- Be
assertive,
not
aggressive
or
submissive
- Sell
right
items
in
right
amounts
FOB
destination
Buyer
takes
responsibility
for
the
goods
once
they
reach
the
buyers
location,
seller
pays
freight
FOB
installed
Title
and
responsibility
do
not
transfer
until
the
equipment
is
installed
&
operating
properly
Bringing
interview
to
close:
Leave
with
a
clear
plan,
review
what
you
will
do
next,
what
the
customer
will
do
next,
when
you
will
meet
again
Follow
up
promptly
with
a
thankyou
and
reminder
note
CH
9
Formal
negotiating
building
partnering
relationships
Formal
negotiating:
Negotiation:
Bargaining
process
through
which
buyers
&
sellers
resolve
areas
of
conflict
&
arrve
at
agreements
Minor
issues:
Eg.
Who
should
attend
future
meetings
Major
issues:
Eg.
Cost
per
unit
or
exclusive
purchase
agreements
Negotiation
VS.
Non-negotiation
selling:
- Regular
sales
call
are
constrained
- Negotiations
differ
from
regular
sales
calls
more
intensive
planning,
larger
number
or
people
from
the
selling
firm
- Formal
negotiations
only
with
very
large/important
prospective
buyers
Negotiation
philosophies
Win-lose
negotiating:
Negotiator
attempts
to
win
all
important
concessions
&
thus
triumph
over
opponent
Win-win
negotiating:
Negotiator
attempts
to
secure
an
agreement
that
satisfies
both
parties
Planning
the
negotiation
session:
What
to
plan:
(PRTNIT)
Prepare
Location
Time
allotment
Negotiation
objectives
Information
control
Team
selection
&
management
Advantages/disadvantages
of
teams
Advantages
-
More
creative
than
one
individual
due
to
different
backgrounds
-
Members
help
one
another
&
reduce
the
chances
of
making
a
mistake
Disadvantages:
-
More
participants
involve
more
time
to
reach
agreement
-
Different
opinions
make
the
sellers
team
appear
disorganised
Team
size,
roles
&
management
Size:
as
few
as
possible,
match
buyers
team
size
Roles:
team
leadermanages
session,
expertstechnical
questions,
executives-speaker
Understanding:
rules
&
signals
to
communicate
with
one
another,
practice
roles
-
-
-
Special
treatment
Confidential
information
Backdoor
selling
Sales
ethics
&
relationships
In
relationships
with
the
salespersons
company
- expense
accounts
- reporting
work
time
information
- switching
jobs
In
relationships
with
colleagues
- sexual
harassment
- taking
advantage
Related
to
competitors
- False
claims
- Sabotaging
Illegal
Business
Practices
Business
defamation
Unfair/untrue
statements
to
buyer
about
competitor
or
its
salespeople
Reciprocity
Special
relationship
in
which
two
firms
buy
products
from
each
other
Tying
agreement
Buyer
is
required
to
purchase
one
product
in
order
to
get
another
Conspiracy
An
agreement
between
competitors
before
customers
are
contacted
Collusion
Competitors
working
together
while
the
customer
is
making
a
purchase
decision
Resale
price
maintenance
Mimimum
price
below
which
distributors/retailers
should
not
resell
the
products
Spiff
(push
money)
Special
incentives
to
get
a
resellers
salespeople
to
push
products
Breach
privacy
laws
Obtain
private
information
about
a
consumer
&
illegally
use
or
share
it
Do
not
call
register
Call
numbers
registered
on
do-not-call
register
International
Ethical
Issues
Lubrication
(UNETHICAL)
Paying
small
sums
of
money/gifts
to
low
ranking
managers/government
officials
in
countries
where
these
payments
are
not
illegal
Subordination
(ILLEGAL)
Paying
larger
sums
of
money
to
higher-ranking
officials
to
get
them
to
do
something
that
is
illegal
or
to
ignore
an
illegal
act
What
to
do
if
ethical
standard
differ
Cultural
relativism
View
that
no
cultures
ethics
are
superior
Ethical
Imperialism
View
that
ethical
standards
in
ones
home
country
should
be
applied
to
ones
behaviour
across
the
world
Compensation/evaluation:
Salary,
incentive
pay
(commission/bonus),
straight
salary
method,
combination
plas
Field
sales
managers
- Evaluate
performance
- Training
Managing
ethics
in
sales
Sales
executive
&
sales
field
manager
Responsibilities:
- Determine
corporate
policy
regarding
ethics
- Including:
monitoring,
punishing,
rewarding
- Open-door
policy
- Be
ethics
role
model
- Include
ethics
in
trainings
Strategies
for
handling
unethical
requests
- Leave
the
organisation/ask
for
transfer
- Negotiate
an
alternative
course
of
action
- Blow
the
whistle,
internally/externally
- Threaten
to
blow
the
whistle
- Appeal
to
higher
authority
- Agree
to
demand/dont
carry
it
out
Salespeople
as
partners
- Geographic
salespeople
- Customer
support
reps
- Field
support
reps
- Product
specialists
- House
accounts
managers
- National/strategic
account
managers
- Key
account
managers