Effective Personal Selling Requires Effective Personal Selling Requires Managerial SkillsManagerial Skills

Date – 22/08/09Date – 22/08/09Submitted bySubmitted by

Neha Rai FT-2K8-32Neha Rai FT-2K8-32Neha Shrivastava FT-2K8-33Neha Shrivastava FT-2K8-33

Tanuja Kemkar FT-2K8-54Tanuja Kemkar FT-2K8-54Tosh Keshri FT-2K8-55Tosh Keshri FT-2K8-55

IndexIndex

Meaning Of Personal SellingMeaning Of Personal Selling EvolutionEvolution ImportanceImportance ElementsElements ClassificationClassification ProcessProcess FormsForms Managerial Skills RequiredManagerial Skills Required ContributionsContributions BibliographyBibliography

What is Personal Selling?What is Personal Selling?

Presentation of goods and services before Presentation of goods and services before the potential customers and persuading the potential customers and persuading them to buy the products or services.them to buy the products or services.

Interpersonal influence process involving a Interpersonal influence process involving a sellerseller’s’s promotional presentation promotional presentation conducted on a person-to-person basis conducted on a person-to-person basis with the buyer.with the buyer.

Evolution Of Personal SellingEvolution Of Personal Selling

IndustrialRevolution

Post-IndustrialRevolution

War andDepression

ModernEra

1800s1800s 1900s1900s 2000s2000s

Selling function became more

structured

Selling function became more

structured

Peddlers selling door to door . . . served as intermediaries

Peddlers selling door to door . . . served as intermediaries

Business organizations employed salespeopleBusiness organizations employed salespeople

Selling function became more professional

Selling function became more professional

As we begin the 21st century, selling continues to develop,becoming more professional and more relational

As we begin the 21st century, selling continues to develop,becoming more professional and more relational

Importance of Personal SellingImportance of Personal Selling

From seller’s point of viewFrom seller’s point of view1.1. creates demand for products both new as well as creates demand for products both new as well as

existing ones.existing ones.2.2. creates new customers and, thus helps in expanding creates new customers and, thus helps in expanding

the market for the product.the market for the product.3.3. leads to product improvement. While selling leads to product improvement. While selling

personally the seller gets acquainted with the choice personally the seller gets acquainted with the choice and demands of customers and makes suggestions and demands of customers and makes suggestions accordingly to the manufacturer.accordingly to the manufacturer.

From customer’s point of viewFrom customer’s point of view1.1. provides an opportunity to know about new productsprovides an opportunity to know about new products2.2. informs and educates the consumers about new informs and educates the consumers about new

products.products.

Essential Elements of Personal Essential Elements of Personal SellingSelling

Face-to-Face interactionFace-to-Face interaction PersuasionPersuasion FlexibilityFlexibility Promotion of salesPromotion of sales Supply of InformationSupply of Information Mutual BenefitMutual Benefit

Classification ofClassification ofPersonal Selling ApproachesPersonal Selling Approaches

Stimulus Response SellingStimulus Response Selling Mental States SellingMental States Selling

(AIDA Approach)(AIDA Approach) Need Satisfaction SellingNeed Satisfaction Selling Problem Solving SellingProblem Solving Selling Consultative selling Consultative selling Relationship SellingRelationship Selling

Stimulus Response SellingStimulus Response Selling

Also called as Canned Approach, a Also called as Canned Approach, a memorized sales presentation, or a memorized sales presentation, or a prepared sales presentation. Assumes that prepared sales presentation. Assumes that if a sales person makes the right stimuli he if a sales person makes the right stimuli he can get a favorable response from the can get a favorable response from the prospect.prospect.

This method is used by Telemarketing This method is used by Telemarketing people , door-to-door salespersons and for people , door-to-door salespersons and for training new sales people. training new sales people.

Salesperson Provides

Stimuli

BuyerResponses

Sought

Continue Process until

Purchase Decision

Stimulus Response Stimulus Response SellingSelling

Mental States SellingMental States Selling(AIDA Approach)(AIDA Approach)

Attention Interest Desire Action

Advantage – the salesperson has to plan the sales presentation and understand the customers mental stages

Disadvantage – the customer’s needs are not understood so the method is less effective.

Need Satisfaction SellingNeed Satisfaction Selling

Uncover and confirm

Buyer needs

Present offerings to

satisfy buyer needs

Continue selling until purchase decision

Advantage:- The salesperson describes how the feature can help or give advantage to the prospect.

Problem Solving SellingProblem Solving Selling

DefineProblem

GenerateAlternativeSolutions

ContinueSelling

untilPurchaseDecision

EvaluateAlternativeSolutions

Consultative SellingConsultative Selling

Long-term AllyLong-term AllyLong-term AllyLong-term Ally

The process of helping customers reach their

strategic goals by using the products, service, and expertise of the selling organization.

Business ConsultantBusiness ConsultantBusiness ConsultantBusiness Consultant

Strategic OrchestraterStrategic OrchestraterStrategic OrchestraterStrategic Orchestrater

Relationship SellingRelationship Selling

Building and creating customer Building and creating customer loyaltyloyalty

Also Known as Transaction Oriented Also Known as Transaction Oriented SellingSelling

Process Of Personal SellingProcess Of Personal SellingProspecting & Qualifying

Pre Approach

Approach

Presenting & Demonstrations

Overcoming Objections

Closing

Follow Up

Prospecting & QualifyingProspecting & Qualifying

Hot ProspectsHot Prospects Warm ProspectsWarm Prospects Cool ProspectsCool Prospects

PreapproachPreapproach

Information GatheringInformation Gathering Planning the Sales CallPlanning the Sales Call

ApproachApproach

Meet the buyer for the first timeMeet the buyer for the first time AppearanceAppearance AttitudeAttitude Opening LineOpening Line

Presentation & DemonstrationPresentation & Demonstration

Use latest technologyUse latest technology Modify PresentationModify Presentation Don’t OverloadDon’t Overload Prospect’s LanguageProspect’s Language

Overcoming ObjectionsOvercoming Objections

Psychological ObjectionsPsychological Objections Logical ObjectionsLogical Objections

Closing the SaleClosing the Sale

Buying SignalsBuying Signals Examines the productExamines the product Ask another person’s opinionAsk another person’s opinion Ask question about the productAsk question about the product Prospect becomes friendlyProspect becomes friendly

Follow UpFollow Up

Check customer orderCheck customer order Visit at the time of deliveryVisit at the time of delivery

Forms of Personal SellingForms of Personal Selling

Delivery Sales PersonDelivery Sales Person Order TakerOrder Taker Missionary Selling/Sales Support Missionary Selling/Sales Support

PeoplePeople Technical Sales Support/Sales EngineerTechnical Sales Support/Sales Engineer Demand Creator/Order GetterDemand Creator/Order Getter Solution VendorSolution Vendor

Skills Required For Effective Skills Required For Effective Personal SellingPersonal Selling

Physical QualityPhysical Quality Mental QualityMental Quality Integrity of characterIntegrity of character Knowledge of the product and the Knowledge of the product and the

companycompany Good behaviorGood behavior Ability to persuadeAbility to persuade

Contributions of Personal Selling: Salespeople and Society

Salespeople help stimulate the Salespeople help stimulate the economyeconomy

Salespeople help with the diffusion of Salespeople help with the diffusion of innovationinnovation

Contributions of Personal Selling: Contributions of Personal Selling: Salespeople and the Employing Salespeople and the Employing

FirmFirm

Salespeople generate revenueSalespeople generate revenue Salespeople provide market Salespeople provide market

research and customer feedbackresearch and customer feedback Salespeople become future leaders Salespeople become future leaders

in the organizationin the organization

Contributions of Personal Selling: Contributions of Personal Selling: Salespeople and the CustomerSalespeople and the Customer

Salespeople provide solutions to problemsSalespeople provide solutions to problems Salespeople provide expertise and serve Salespeople provide expertise and serve

as information resourcesas information resources Salespeople serve as advocates for the Salespeople serve as advocates for the

customer when dealing with the selling customer when dealing with the selling organizationorganization

Bibliography:Bibliography:

Books: Books: 1) Sales and distribution 1) Sales and distribution managementmanagement

By : Krishna HavaldarBy : Krishna Havaldar

Vasant CavaleVasant Cavale

2) Sales Management 2) Sales Management

By : JogranBy : Jogran Reference Sites:Reference Sites:

www.knowthis.comwww.knowthis.com

Thank YouThank You