Selling Style & Process [Compatibility Mode]

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    Effective Selling

    Prof. Sanjeev Varshney

    Session 3 & 4

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    Effective Selling

    Understand the buyer purchase process and

    take him from one stage of decision making

    to another

    Integrate sales people with other functions inmarketing to influence this purchase process

    Focus only on those activities which a sales

    man can do best

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    Right way of selling

    The desire to help customers make

    satisfactory purchase decisions

    Helping the customers assess their needs

    Offering products that will satisfy those needs

    Describing products accurately

    Avoiding deceptive or manipulative influencetactics

    Avoiding the use of high pressure

    A shift from transaction based selling to relationship based selling

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    Roles of a SalesmanBuilding

    relationships

    Effective day

    planning

    Prospecting

    Seeking

    referrals

    Market

    intelligence

    Selling the

    product

    Maintaining

    profitability

    Closing deals

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    Shopper may or may not consume the product

    Role of Sales Force

    Sales Force BrandManagement

    Retailer

    Shopper(one who involves

    in the act ofpurchase and

    buys

    Consumer(one who identifies

    the needand decides

    about the product)

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    Role of Sales Force in Traditional Retail

    (Planned Shopping Behaviour)

    Need Identification

    Generate Alternatives

    Evaluate Alternatives

    Purchase Decision

    Purchase ActPost Purchase

    Behaviour

    Trade

    Marketing/

    Sales Force

    Product

    Marketing

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    Role of Sales Force in Modern Retail

    (Planned Shopping Behaviour)

    Need Identification

    Generate Alternatives

    Evaluate Alternatives

    Purchase Decision

    Purchase ActPost Purchase

    Behaviour

    Product

    Marketing

    Trade

    Marketing/

    Sales Force

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    Impulse Shopping Behaviour

    Need Identification

    Generate Alternatives

    Evaluate Alternatives

    Purchase Decision

    Purchase ActPost Purchase

    Behaviour

    Product

    Marketing

    Trade

    Marketing/

    Sales Force

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    Impulse Shopping Behaviour

    Decision Making Role of Shopper-

    so Role of a shopkeeper-salesman

    Modern Retailing

    Traditional Retailing

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    Context

    Cognitive (Information)

    Affect (Perceptions

    and atti tude)

    Conation (Decision

    stage

    and Readiness to act)

    Action (Purchase)

    ProductMarketing

    Trade

    Marketing/

    Sales Force

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    Basic Sales Principles

    What are the factors responsible for the

    success of a product? Individually, list all these factors.

    Time 5 minutes.

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    Out of the list generated here, what

    are the key factors a sales man can

    impact, and to what extent?

    Basic Sales Principles

    Exercise II

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    Basic Sales Principles

    The Key factors you influence:

    Distribution

    Display Date

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    Role and Responsibility

    What is the meaning of

    Distribution?

    Right Outlet Right Range

    Right Quantity

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    Role and Responsibility

    Distribution What is Right Outlet?

    Bakers and Confectioners.

    General Merchants.

    Modern retail outlet

    Wholesalers

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    Role and Responsibility

    Distribution Right Quantity

    Enough stocks to last till the next

    sales call.Ensure adequate Display Space in

    the Outlet even when you take the

    next order.

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    Role and Responsibility

    Display Good Displays act as Silent

    Salesman. Displays are the means

    through which Salesmen drive

    consumer offtake.

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    Role and Responsibility

    Date Fresh Stock to the consumer.

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    Role in different stages of

    Decision makingMental

    State

    Sales

    Step

    Critical Sales Task

    Curiosity Attention Get Prospects excited, then you Get them to like

    you

    Interest Interest Interview: needs & wants

    Conviction Conviction Whats in it for me?,Product- Will it do what I want it to do?

    Price- Is it worth it? The Hassle of Change/

    Cheaper elsewhere

    Peers- What will others think of it?Priority- Do I need it now? (sense of urgency)

    Desire Desire Overcome their stall

    Action Close Alternate choice close: which , not if!

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    Product Categories & Role of

    Sales manDecision

    Process

    What is the Buyer Looking for

    during the purchase

    Role of the Sales man

    Picking/Impulse

    Convenience, very littleuncertainty of using untried brand

    Ensure Availability & gooddisplay

    Variety

    Seeking

    Convenience plus variety, very

    little uncertainty of using untried

    brands

    Ensure availability & good

    display as well positive word of

    mouth from the retailerHabit Willing to travel for brand. High

    uncertainty of untried brands

    Reassurance is required

    Sub-contract Buyer not knowledgeable, depends

    on a credible source

    Trade motivation to help the

    consumer in decision making

    Extended

    problem

    solving

    Willing to travel for brand, High

    uncertainty of untried brands

    Trade Motivation,

    demonstration and trial to help

    the consumer in decision

    making

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    Dominant Styles Used during

    selling

    Dominance/Submissive

    Sociability/Analytical Thinking

    Patience/Drive

    Compliance/Independence

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    Different selling styles

    Trade Selling

    Missionary selling

    Technical selling

    New Business Selling Consultative selling

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    Selling Styles for Different Buying

    Situations

    Low High

    Low Involvement of the

    Salesperson required

    during decision process

    Trade selling Trade selling (Variety

    seeking behavior)

    Acceptance (habitualbehavior)

    High involvement of the

    sales person requiredduring decision process

    Missionary selling New Business Selling

    Involvement of the end consumer in the decision process

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    Selling Styles for Different

    Service-Buying Situations

    Low Uncertainty of untried

    brands

    High Uncertainty of

    untried brands

    Low differences between

    brands

    Trade selling Dominance

    High differences between

    brands

    Trade selling

    Acceptance

    Selling solutions (if

    consumer is

    knowledgeable)

    Missionary selling (ifconsumer is not

    knowledgeable)

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    Steps of the Call

    1. Planning and Preparation

    2. Opening the Call3. Outlet Check and Housekeeping

    4. Persuasion and Objection Handling

    5. Closing6. Merchandizing

    7. Administration

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    Transaction Analysis

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    Transaction analysis

    Describes how people are structured psychologically

    It introduces different ego-state (Parent-Adult-Child)of an individual

    Explains how people function and expressthemselves in their behavior.

    Awareness on various ego states of individuals willenable you to identify and practice the mostappropriate ego state for successful interaction with

    team members.

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    Different Behaviour Ego States

    Parent

    Adult

    Child

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    In this state people behave, feel, and think in response to anunconscious mimicking of how their parents (or other parental

    figures) acted.

    Example: a person may shout at someone out of frustration becausethey learned from an influential figure in childhood the lesson thatthis seemed to be a way of relating that worked.

    Some of the Physical clues of a parent ego state are Pointing Index finger

    Hands on Hips

    Tongue Clicking

    Patting another on the headSome of the Verbal Clues of a parent ego state are

    Judgmental- based on automatic responses

    Evaluative

    Value based

    Parent

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    In this state people behave, feel, and think in response to what is going onin the "here-and-now," using all of their resources as an adult human beingwith many years of life experience to guide them. While a person is in the

    Adult ego state, he/she is directed towards an objective appraisal of reality.

    Some of the Physical clues of the adult ego state are Adult demonstrates listening attentively, by continual movement and the blinking

    of the eye.

    Some of the Verbal clues of the adult ego state are Common descriptors are:

    I think

    Possible

    Factual.

    Data based.

    Demonstrating Empathy.

    Retaining Composure. Patient.

    Probing Using words like what, why, where etc.

    Matter of Fact.

    Seeks information.

    Confirms understanding/ Clarifying

    Enhances Self Esteem of other person.

    Adult

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    In this state people revert to behaving, feeling and thinkingclose to how they did in childhood.

    Example, a person being told off by the boss at work may lookdown and feel shame or anger, as they used to when beingtold off as a child.

    Some of the Physical clues of the child ego state are Teasing.

    Delight/ Laughter

    Nail biting

    High pitched voice

    Some of the Verbal clues of the child ego state are I wish

    I want

    Bigger

    Best I dont care

    Child

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    Interaction Process

    A B

    BA

    Stimulus

    Response

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    Various form of Interaction

    2 people are in same ego-state

    2 people are in different ego-state

    P

    A

    C C

    A

    P

    P

    A

    C C

    A

    P

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    ExamplesExample A:

    The parent says-this bus is always late.

    The parent response would be-what do you expect from thismanagement.

    The adult response would be Have you traveled earlier by thisbus.

    The child response would be- I wish we had aero planes that flewon the earth.

    Example B:

    In a business scenario; The parent says- you should familiarize yourself with ground

    realities.

    The adult says- how many days you spend in the field.

    The Child says- I do not care about ground realities as long asyou are producing results

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    Outcomes of Interactions

    All of these interactions are not desirable

    But there is no general rule as to the effectivenessof any ego state in any given situation

    (some people get results by being dictatorial (Parent to

    Child), or by having temper tantrums, (Child to Parent),

    But for a balanced approach to life, and for success

    in business management Adult to Adult is generally

    recommended.

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    Exercise

    Please list down various statements that

    your customers make.

    Now we will classify them as P-A-C.

    Adult Responses to the same, and try toestimate how the whole discussion will

    go.

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    Role Play I Lets observe a customer-sales man

    interaction for purchase of a Car.Customer wants a bigger car for fulfilling

    his big family needs but also has

    investment constraints in mind. He is notable to make a choice. You are a sales

    man from Ford Motors.

    Discussion: What is the outcome? What ego state

    people were into and how can you make the output

    effective?

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    Role Play II

    Lets observe a sales manager-distributor

    interaction with regard to market expansion andbetter display. Sales manager is asking for

    greater efforts towards market expansion and

    ensuring better display. Distributor complaintsthat market is already crowded and margins are

    low and is thus difficult to work towards market

    expansion and better display.

    Discussion: What is the outcome? What ego state

    people were into and how can you make the output

    effective?

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    Building Relationships

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    Prejudices of Customers

    Sales People tell lies

    Sales People are only concerned about

    their own targets.

    Sales People do not honour commitment. Sale People only talk, dont do.

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    Prejudices of Sales People

    Retailers are ONLY concerned about

    their margin and Profit. Retailers know what they want to buy.

    Retailers know how much to buy.

    Retailers will not let me merchandize withoutpaying for it.

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    Managing Prejudices

    Is it possible to change the prejudices

    of retailers?

    No, You cannot change these prejudices. It is

    extremely difficult.

    It is possible to overcome these prejudices.

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    Managing Relationships

    In every interaction, we want both BUSINESSneeds and EMOTIONAL needs to be fulfilled.

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    Comparing Transaction-Based Marketing

    and Relationship Marketing Strategies

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    Ways to Build Relationships

    Making promises

    Enabling Promises

    Keeping Promises

    The Relationship Marketing

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    The Relationship Marketing

    Continuum

    First Level: Focus on Price

    Second Level: Social Interactions

    Third Level: Interdependent

    Partnerships

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    Three Levels of Relationship Marketing

    Characteristic Level 1 Level 2 Level 3

    Primary bond Financial Social Structural

    Degree of

    customization

    Low Medium Medium to high

    Potential forsustained

    competitive

    advantage

    Low Moderate High

    Examples American AirlinesAAdvantage

    program

    Harley-DavidsonsHarley Owners

    Group (HOG)

    Federal ExpressPowerShip

    program

    Building Buyer Seller

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    Building Buyer-Seller

    Relationships Many customers are seeking ways to simplify

    their lives, and relationships provide a way todo this

    Customers find comfort with brands that have

    become familiar through their ongoingrelationships with companies

    Such relationships often lead to more efficient

    decision-making by customers and higherlevels of customer satisfaction

    To Change Attitude:

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    To Change Attitude:

    Change the CognitiveComponent

    Change Beliefs Shift Importance

    Add Beliefs

    Change Ideal

    To change attitude:

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    g

    Change the AffectiveComponent

    Classical Conditioning: repeat

    Increase affect (Do Brand Building-develop

    trust)

    Mere exposure

    Change the Behavioral

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    Change the Behavioral

    Component Reciprocity

    Door-in-the-face technique (big request first - targetrefuses, then the communicator concedes by asking

    for a small favor -target agrees) Scarcity - one-day offer, two-days sale, must suggest

    better value

    Authority - expert endorsers

    Commitment - make the target commit to some small thing

    Foot-in-the-door technique (small request first)

    Low-balling - to commit to an attractive option first(car deals)

    Even-a-penny-will-help technique

    Liking/compliments - persuasion by favorite or/and similarendorsers

    Social validation -statistical advertisements(85 % of thepopulation)

    Understanding the

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    Understanding the

    retailers/customers needs

    Why do retailers buy?

    To Re-sell (But will he buy everything he can re-sell?)

    To make profit

    To fulfill needs of their own customers.

    Why do customers buy?

    To fulfill functional needs

    To fulfill emotional/psychological needs

    To minimise risk (financial, psychological and

    physical)

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    Some more

    Is there any other reason why Customers buy?

    To deal in quality products

    He likes to be associated with big brands

    He gets credit (good service) from the Distributor

    He gets the service from YOU that he expects

    He likes YOU. You have an excellent rapport with

    him.

    Understanding the

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    Understanding the

    Customers needs

    Summary1. We often assume that the Customer buys

    ONLY for profit. Hence we talk most often of

    schemes. This is incorrect.

    2. When we fulfill Emotional Needs of the

    Customer, we build an excellent rapport with

    them. This is extremely important for

    Successful Selling.