Ibrahim Sameer

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Nature of Selling ‘Personal selling’ involves face-to-face contact between sellers and buyers. Selling tasks differ,

depending on the type of goods and services.

Personal selling is a primary communication tool in organizational (especially industrial) marketing,

where up to 80% of the total marketing budget can be spent on sales force costs.

Personal selling is less important in many retail market situations (especially fast moving

consumer goods (FMCG) markets).

With goods and services requiring high-involvement decisions, the role of personal

selling is clearer. Negotiating the sale of expensive consumer durables like cars usually

requires a personal approach, a high degree of product knowledge and selling skills.

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Nature of Selling (cont…) As an element of the communications mix, the importance

of personal selling depends on company objectives, the

type of business in which the company is involved and

conditions in the market.

Personal selling should be used where it can achieve results

more cost-effectively than other communications mix

elements like advertising or direct mail.

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Situation Requiring a Personal Approach

Situations of high perceived risk: are where purchase of products that are

new, expensive or technically complex might be viewed as risky by prospective

buyers. A salesperson uses professional skill to identify the customer’s areas of

concern and takes steps to lower the concern or eliminate the perceived

problems.

Technically complex products: like robotic machine tools or a new computer

system are complicated and may need to be explained to customers so they can

grasp the capabilities of the product system. The sales task can only be carried

out face-to face by salespersons with high levels of product knowledge.

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Situation Requiring a Personal Approach (cont…)

Commercially complex negotiations: might involve

financial arrangements, maintenance contracts, spare-

parts availability, staff training and other areas that make

commercial details complicated. The complexity of a

buying situation contributes to the degree of perceived risk

on the part of potential purchasers and such situations

require negotiation and explanation at a personal level.

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Communicating and the Salesperson

Communication is a two-way process because,

important as it is for the salesperson to talk, it is just as

important to listen. Listening skills should be

developed. It is too easy to switch off when someone is

talking a lot. The professional salesperson actively

listens to what customers are saying, and this requires

a conscious effort.

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The Sales Sequence The general plan used for all sales interviews is called

the ‘sales sequence’. It should be flexible and capable

of being adapted to suit individual situations. The

general sales sequence is a guide, and this format is

adopted by professional salespeople. The following

format is a general plan for this sequence.

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Preparation Preparation for individual interviews means having as much general and

personal knowledge about customers as possible so that the interview can be

conducted at a more personal level. There follows a checklist of points:

Company knowledge: includes familiarity with the company’s systems,

procedures, price, terms and policy on complaints and returned goods. The

salesperson needs to be updated on a regular basis.

Product knowledge: includes information about existing and new products.

Limitations of the product range should also be known. Making exaggerated

claims can lead to customer dissatisfaction.

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Preparation (cont…) Market knowledge: means an understanding of the general state of the

market including new developments in the market and between competitors.

Buyer knowledge: is needed at a personal level, which may include knowledge

of the buyer’s family circumstances.

Equipment, samples and sales aids: Sales brochures and literature,

Handbooks and product specifications, Up-to-date price lists, Samples,

Demonstration kits/films/videos/ laptop + spreadsheets & Order book.

Journey planning: An organized plan for appointments and other calls on a

daily basis is important. Planning should consider both current customers and

prospects.

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Approach The way the salesperson approaches a prospective customer is a basic sales skill.

Some pointers are:

First impressions are important and the salesperson should be prepared, alert and

well groomed in the context of not dressing or behaving in an extreme manner.

The opening of the sales interview should be pleasant and businesslike. This is

important if it is the first interview. In such a situation, opening remarks are critical

as this is where first impressions are gained.

Business at hand should be discussed as soon as possible to avoid wasting selling

and prospecting time, but clearly the salesperson is regulated by the buyer.

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Approach (cont…) If the prospect sets a time limit this should be strictly adhered to.

If a further appointment is made, this should be noted straight away

along with details of the conversation on the customer visit record.

Relevant questions should be asked as well as actively listening to

answers.

Sometimes debts, of which the buyer may be unaware, must be

discussed. This should take place at the start. Once the debt question is

discharged new negotiations can be undertaken without the

complication of previous dealings.

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Presentation & Demonstration This stage depends on good foundations. The salesperson should have a clear idea

of the buyer’s requirements and have established the level of explanation required.

Products or services have many features, and ‘customers buy benefits, not features’.

A salesperson should examine the product range listing major selling points of each

product. Important selling points are those that are unique to the product and give

an advantage over similar products offered by competitors. These significant selling

points are the ‘unique sales proposition (USP)’.

A good presentation can help overcome objections. If the prospect gives the

salesperson buying signals, an attempt should then be made to close the sale.

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Negotiation

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Negotiation concerns two parties who wish to bring

about an agreement that is acceptable to both sides.

The seller typically makes a presentation and an offer

in terms of price, credit, delivery, etc.

Negotiation (cont…)

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Closing The objective of selling is to obtain an order, so closing techniques should be

understood. Some techniques are:

Basic close: is when the salesperson sees buying signals from the prospect

and starts to fill in the order form. If there is no objection, a sale is achieved.

Alternative choice is a trial close technique: When the salesperson has

received buying signals from the prospect, an attempt is made to close by

offering the prospect an alternative choice. (E.g. a prospect shows serious

interest in purchasing a new car and asks about delivery: that is taken as a

buying signal. The salesperson might then ask: ‘What would be your preferred

colour?’ If the prospect states a preference, a sale is made).

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Closing (cont…) The objective of selling is to obtain an order, so closing techniques should be

understood. Some techniques are:

Basic close: is when the salesperson sees buying signals from the prospect

and starts to fill in the order form. If there is no objection, a sale is achieved.

Alternative choice is a trial close technique: When the salesperson has

received buying signals from the prospect, an attempt is made to close by

offering the prospect an alternative choice. (E.g. a prospect shows serious

interest in purchasing a new car and asks about delivery: that is taken as a

buying signal. The salesperson might then ask: ‘What would be your preferred

colour?’ If the prospect states a preference, a sale is made).

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Closing (cont…) Puppy dog: This is often used by firms who offer new equipment free for a ‘trial

period’. It is then hoped that the prospect will get used to having it and that at the

end of the trial there may be resistance to return it as well as the potential for more

orders.

Summary question: is used when the salesperson experiences resistance. The

main cause of resistance has been discovered through elimination. For example:

‘Is it the price?’ ‘No!’

‘Is it the colour?’ ‘No!’

Each time the prospect says ‘No’, a potential cause of resistance has been eliminated.

This allows the salesperson to concentrate on the most important area of resistance.

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Follow - Up It is part of a salesperson’s task to provide advice and

information after the sale. The idea of customer care is

a modern technique that encourages repeat business.

Excellent after-sales service is vital in securing post-

purchase satisfaction and repeat business.

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Sales Management Sales force size

Factors to be taken into account in reaching a decision on sales force

size:

The company’s financial resources.

Numbers of customers to be reached.

Average number of calls that can be made by a salesperson in a given

period.

The firm’s distribution policy, e.g. if the company operates a policy of

selective, exclusive or mass distribution.

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Evaluating Sales Force Performance

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Looking at sales volumes between members of the sales force is too simplistic.

Measures can be qualitative or quantitative:

Qualitative

Degree of product knowledge.

Quality of sales presentation and demonstration.

Self-organisation (use of time, journey planning, etc.).

Intelligence.

Patience.

Enthusiasm, motivation and ambition.

Grooming and general appearance.

Evaluating Sales Force Performance (cont…)

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Quantitative

Sales volume.

Number of orders secured.

Number of new orders.

Number of customers/orders lost.

Expenses incurred.

Amount of market intelligence gathered.

Remuneration of Salespeople Straight salary: offers least incentive for salespersons to sell more, but

it offers stability and security. This is appropriate when salespersons

spend much time on customer care and where customer retention is

important.

Salary plus commission: (or sales-related bonus) is a popular method

of compensation. Some companies use escalator commission/bonus

schemes where the higher the sales, the higher the commission/bonus

pro rata. Once a salesperson sells above an agreed target or quota, then

an escalator commission is applied.

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Remuneration of Salespeople (cont…)

Commission only: is typically used for self-employed

manufacturers’ agents. organizations often employ

part-time salespeople on this basis. This method is

economic as the cost of each salesperson is directly

related to sales.

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Recruitment & Selection of Salesperson

A checklist for evaluating candidates for a selling position includes:

Age and marital status.

Health.

Interests.

Education.

Previous employment and experience.

Location.

Clean driving licence.

Intelligence.

Integrity.

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Recruitment & Selection of Salesperson (cont…)

Possible sources of recruitment include:

Inside staff i.e. current employees.

Salespeople from outside the company (in many cases

from competitors).

Advertising in the press, the internet and other media.

Specialist recruitment agencies.

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Past Paper Q & A

December 2009 / Q6

(a) Describe each of the seven stages of the ‘sales sequence’ used by an effective salesperson. (21 marks)

(b) Describe two buying signals that a salesperson should look out for during a sales presentation. (4 marks)

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Past Paper Q & A (cont…) Answer

(a)

Product knowledge: Selling is predominantly about persuading a customer to purchase a product and/or service. In order to do this the sales person must understand the product and its benefits and therefore a good product or product portfolio knowledge is essential. It is imperative that an organization invest in the training of its sales force firstly to ensure they have the product knowledge, and secondly to ensure this knowledge is kept up to date as products change and are developed.

Prospecting: An important part of a sales person’s role is to try to identify potential customers. Methods of prospecting include asking for referrals from existing customers, building potential customer lists from trade directories, networking at events such as exhibitions etc. In order for a sales person to be able to identify prospects effectively they must have a clear understanding of their customer profile.

Approach: It will often be the sales person’s role to make the first approach to a potential customer either through telephoning, writing or meeting at exhibitions and networking events. Sales people create the first impression of the brand/ product in the mind of the potential customer and it is essential that they are well prepared, well groomed and dressed appropriately.

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Past Paper Q & A (cont…) Answer (a) cont..

Establishing needs: In order to make a sale the sales person must ensure that he correctly establishes the need of a potential customer. This can be achieved by questioning and listening to the customer. By correctly establishing a customer’s needs, a sales person can ensure that he highlights the features and benefits of the product/brand that will satisfy the needs of the customer.

Presentation: This is the stage where the sales person formally or informally explains how the product’s features and benefits will meet and satisfy the needs of the customer. The sales person will need to prepare either a formal presentation and/or demonstration or have prepared an informal presentation ensuring that key messages are communicated. It is also at this stage that the sales person should try to anticipate objections and questions and use techniques such as existing customer testimonials as part of the presentation.

Closing: This is the key stage of making a sale. It is at this stage that the sales person should seek an action (ideally a sale) from a potential customer. The sales person should be aware of buying signals from the customer so that he can take the opportunity to close a sale by asking for an order. Also at this stage, sales promotional techniques such as offering discounts can be used to try to persuade the customer to make the sale.

Follow-up: In order to gain repeat business it is essential that a sales person does not forget to follow up on a sale to ensure the customer is satisfied with the product/brand they have purchased. Also, value can be added to the sale by providing good customer service such as ensuring the product is working properly, has been delivered on time and is meeting customer expectations.

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Past Paper Q & A (cont…) Answer (b)

Body Language: A sales person should be aware of a customer’s body language and look

for positive purchasing signs such as nodding in agreement or handling samples. If body

language can be read correctly the sales person can pick his moment to close the sale/ask

for an order. On the other hand a sales person should be aware if there is negative body

language such as lack of eye contact, slouched/uninterested body position or defensive

body language such as crossing arms etc. This may be an indication that the customer has

objections to the product which the sales person must try to clarify and address.

Verbal Signals: The customers will give verbal buying signals such as asking lots of

questions about the product or perhaps credit terms, delivery times etc. These types of

question indicate that the customer is interested in the product and the sales person

should use these signals as opportunities to persuade the customer to make the purchase

decision. 29

Past Paper Q & A (cont…) December 2008 / Q 7

(a) Explain five advantages of using a sales force. (10 marks)

(b) Describe the main principles for making effective sales presentations. (15 marks)

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Past Paper Q & A (cont…) Answer (a)

Technical Product: Personal selling means that a technical product can be demonstrated for a customer enabling them to understand and experience the benefits of the product.

High Risk Purchase: Where the cost of the product is high a sales person can use persuasive techniques and reassure the potential customer by highlighting the benefits of the product as well as explaining any guarantees etc.

Stage in the Product Life Cycle: If the product is in the introduction stage of the product life cycle potential customers are likely to be unaware of the benefits of the product as it is new to the market, therefore a sales person would be able to explain the benefits of the new product to the potential customer.

Complex Decision-Making Unit: Particularly in organizational buying where the decision-making unit is complex, and involves many people, a sales person would be able to identify the influencers and decision-makers in their buying decisions and thereby communicate with them directly.

Building Long-Term Relationships: A sales person is able to develop a long-term relationship with a customer by building trust and gaining a greater understanding of customer needs, therefore customers are likely to be more loyal.

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Past Paper Q & A (cont…) June 2008 (b)

Preparation: It is important that a sales person prepares for a presentation by clearly identifying and understanding (as much as is possible) customer needs and then tailoring the presentation to clearly communicate the benefits of a product to meet those needs. If needs are unknown it is wise for a presentation to start with a section to identify those needs.

Presentation: During the presentation the sales person should explain clearly the unique benefits of the product in relation to customer needs and competitor products. The presentation should include listening to the customer, anticipating and dealing with objections and identifying any buying signals from the customer. Objections can be overcome by providing testimonials, demonstrations etc.

Negotiation: The sales person should have clear objectives of what he wishes to achieve from the sale and work to seek out objections/issues.

Close: This is a very important part of the process, where the sales person must ask for an order or action, e.g. sending a sample etc.

Follow-up: The sales person must make sure that any follow up actions are completed, such as sending samples or delivering the order as this creates trust between the sales person and helps develop a positive customer relationship.

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Past Paper Q & A (cont…) December 2007 / Q - 6

(a) Explain what is meant by the term ‘personal selling’

and what the objectives are. (3 marks)

(b) Outline and explain the advantages of personal

selling. (10 marks)

(c) Describe and give a brief explanation of each stage

of the sales sequence. (12 marks)

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Past Paper Q & A (cont…) Answer (a)

Personal selling is the activity undertaken by a sales person in

order to try to persuade a customer or potential customer to

purchase a product or service through personal one-to-one

communications.

The primary objective of personal selling is to generate sales

creating a revenue for the organization.

(b) Refer slide 31

(c) Refer slide 32

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Past Paper Q & A (cont…) June 2009 / Q 3

(a) Explain five ways in which Personal Selling can

contribute to effective marketing. (15 marks)

(b) Describe five attributes and/or skills you would

expect an effective sales person to possess. (10 marks)

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Q & A

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