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SALES AND DISTRIBUTIONMANAGEMENT
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04
The Sales Process
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The Sales Process or The Personal Selling Process
All selling processes contain the same basic steps.
Personal selling can adjust the manner in whichfacts are communicated and can consider factors
such as culture and behaviour in the approach.
The sales representative can ask questions to
discover the specific need of the customer, getfeedback and adjust the presentation.
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The Sales ProcessThe sales or the selling process is defined as the process by whicha salesperson identifies and locates the prospects, separates theprospects from the suspects, approaches them and makes a sales
presentation, handles their objections and closes the sale.Prospecting &
QualifyingPreapproach /
Precall planningApproach
Presentation &
Demonstration
Follow-up &Service
Trial close /Closing the sale
OvercomingObjections
The end result of this planned process is a sales realisation for thesalesperson, satisfaction for the customer and positive word of
mouth for the firm as a quality product or service manufacturer.
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The Sales Process
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Prospecting The selling process begins with
prospecting or finding qualifiedpotential customers.
Prospecting involves two majoractivities:
Identifying potential customers or
prospects
Qualifying prospects
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Identifying prospects The identification of potential customers is not an
easy job, especially for a new sales person.
Rejection rate is quite high and immediate payoffs
are usually minimal.
In some consumer goods businesses, identification
of prospects usually come from friends and
acquaintances, other sales people, formercustomers, present customers, etc.
Up to 20% of a firm's customer base can be lost for
reasons like transfer, death, retirement, takeovers,
dissatisfaction with the company and competition.
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Identifying prospectsEndless chain
For prospecting, companies use satisfied customers
as source of referrals.
Sales representatives ask current customers for
names of friends or business associates.
Then the sales person contacts and sells to those
prospects and solicits more referrals.
Centre of Influence
A center of influence is a person with information
about other people or influence over them. Some frequently used centers of influences are
housewives, bankers, local politicians etc.
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Shakti Entrepreneur Programme
Hindustan Unilever's Shakti Entrepreneurial Programme helps
women in rural India set up small businesses.
The scheme equips women with business skills and a way out
of poverty as well as creating a crucial new distribution channel
for Unilever products in the large and fast-growing global
market of low-spending consumers.
By 2010 the Shakti network aims to have reached 600 million
consumers.
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Shakti Entrepreneur Programme
Project Shakti is a rural distribution initiative of Hindustan
Unilever Limited (HUL) that targets small villages populated by
less than 5000 individuals.
This is a sales and distributive initiative which recruites village
women as sales persons called Shakti Amma and trains them
to communicate and sell HUL products in villages.
The idea is to be able to reach those villages which do not have
good road connectivity and where the penetration of media ispoor.
Armed with micro-credit, rural women become Shakti
entrepreneurs: direct-to-home distributors in rural markets.
This micro-enterprise offers low risks and high returns.
The products distributed are some of the countrys mosttrusted brands of consumer goods and include a range of
mass-market products especially relevant to rural consumers.
HUL invests its resources in training the entrepreneurs, helping
them become confident, business-savvy professionals.
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Shakti Entrepreneur Programme
The Shakti Entrepreneur is also called as Shakti Amma
Shakti means Power/Empowered and Amma means Mother
in Telugu the language spoken in Andhra Pradesh where
Project Shakti was first piloted in 2000.
The project started in a few pilot villages in Andhra Pradesh in
2000.
Today there are about 45,000 Shakti Ammas across 15 states in
India. Shakti Vani now covers 15 states in India with over 45,000
women entrepreneurs covering over 100,000 villages and 3
million households every month.
On an average, a Shakti Amma sells Rs 10,00015,000 worth of
HUL products providing her a regular income of Rs 700-1,000every month.
Shakti distributors now account for 15 percent of the
company's sales in rural India.
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Shakti Entrepreneur Programme
Questions
What led to the launch of Shakti EntrepreneurProgramme?
What processes are followed to make the
programme successful?
What are the special features of the programme thatmake it unique and successful?
Are there any other ways HUL could have sold its
products in rural India so effectively?
Is the programme recognised by the Government ofIndia?
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Identifying prospects
Spotters
Spotters are usually sales trainees who helpsalesperson identify prospects, thus saving time and
qualifying sales lead.
Cold call
Cold call is an unsolicited sales call. This
prospecting technique involves knocking on doors.
Directories
Membership directories of trade associations,professional societies and civic and social
organizations are good sources for prospects.
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Identifying prospects
Mailing lists
In India, specialized companies compile lists ofindividuals and organizations for direct mailers.
Trade shows and exhibitions
A cost effective way to make personal contacts and
locate prospective buyer is to participate in trade
shows and exhibitions.
India International Trade Fair organized by Trade Fair
Authority of India every year provides a good
example of usage of trade shows for prospecting.
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Qualifying prospects
Once the sales person has identified potential
customers, he or she must qualify them to
determine, if they are valid prospects.
Money: Does the prospect have the money or
resources to purchase a product or service?
Authority: Does the prospect have the authority to
make commitment?
Need: Does the prospect need the product or
service?
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Pre-approach or Pre-call planning
The preparation stage involves the two key activities,
that is, Pre-approach and Call Planning.
Pre-approachThis includes all the information gathering activities
necessary to learn relevant facts about the prospect
and his or her needs and situations.
Four necessary steps of pre-approach are: It should disclose the prospects need and ability
to buy.
It should provide information that will enable the
seller to tailor the presentation to the prospect.
It should provide information that may keep the
salesperson from making serious tactical errors
during the presentation.
It should increase the salesperson confidence.
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Pre-approach or Pre-call planning
Call planning
It involves a specific planning sequence. The
salesperson defines the objective of the call, devisesa selling strategy and makes the appointment.
The primary objective of any sales effort is to get an
order.
For some sales call intermediate objectives may beneeded.
To obtain more information about the prospect
To relate the prospects needs and concerns to
features and benefits of the product or service
To obtain permission for demonstration of the
product
To introduce a new distributor
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Approach
If the approach fails, the sales person often does not
get a chance to give a presentation or
demonstration. If it gets the prospect attention, it immediately
inspires interest in hearing more about the
proposition.
It makes easy transition into the demonstrationphase.
Four basic approaches are in common use:
The introductory approach
The product
The benefits
Referral approach
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Class Assignment
What methods will you follow for prospecting in the
following product sales?
Crazy Pen Drive
Washing Machine
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Class Assignment
What methods will you follow for prospecting in the
following product sales?
Savings Bank Account giving 12% interest p.a.
Certification Course in Marketing at AIMT
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Class Assignment
What methods will you follow for prospecting in the
following product sales?
Steam Iron
Nokia Smartphone
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Class Assignment
What methods will you follow for prospecting in the
following product sales?
Caf Coffee Day opposite AIMT
Olay Anti-ageing cream
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Presentation and Demonstration
Presentation
The objective is to explain how the product meets
the special needs of the consumer. The job of the sales person is to inform the prospect
about the characteristics, capabilities and availability
of goods and services that are for sale.
Sales presentations are classified into four different
categories:
Fully automated
Semi-automated
Memorized
Organised presentation
Unstructured presentation
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Organised Presentation The organized approach best exemplifies the selling
process in which customers are moved through four
stages to a purchase decision, attention, interest,desire and action (AIDA).
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AIDAA - Attention (Awareness): attract the attention of
the customer.
Have you ever...? Are you noticing...?
Can you see...?
I - Interest: raise customer interest by focusing onand demonstrating advantages and benefits.
Listen to them; talk about their problems.
Tell them things that affect their problems.
Demonstrate things, rather than just tell.
Get them actively involved.
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AIDAD - Desire: convince customers that they want and
desire the product or service.
They can recognize that they have a need butthat is not desire.
Desire is like a fire and can be stoked:
Show them how the item to be desired will not be
available for long (Scarcity principle). Show how other people approved it and
acquired.
Show how offered item will solve some of their
problems.Feature and Benefits (FAB)
Build the prospects desire by linking features
and benefits.
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AIDAD - Feature and Benefits (FAB)
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AIDAA - Action: lead customers towards taking action
and/or purchasing.
The scariest point is where you ask for the sale or
ask them whether they actually do agree fully.
Are they asking you about when you can deliver or
what after-sales support you give? Summarize the problem you are solving for them.
Use the appropriate closing technique.
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Unstructured Presentation The buyer and seller together explore the problems.
Such presentation tends to be not too well-focused.
Points are often missed and time is wasted.
Salesperson does not usually anticipate objectionsbut may have to face surprise complaints from the
prospects.
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Demonstration The demonstration is the core of the selling process.
The sales person actually transmits the information
and attempts to persuade the prospect throughproduct demonstration.
The demonstration should be carefully rehearsed to
reduce the possibility of even a minor malfunction.
The demonstration should be designed to give
customers handson experience with the product.
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Overcoming Objections Sales resistance takes the form of an objection as
stated or hidden.
Prospects hide their real reasons for not buying. Their stated objection may be phoney.
Keep the prospect talking by asking probing
questions.
Use insights gained through experience, combinedwith knowledge of the prospects situation, to
perceive the hidden objection.
Product objections can be answered best when
sales people have extensive product knowledge of
both their own products and competitors.
Many times prospects may be misinformed or may
not understand some of the technical aspects.
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Trial Close/Closing the Sale Action close technique
Gift close technique
Yes close technique Direct close technique
Experienced sales people always try to close early.
If they are not successful, they continue thepresentation and then try a different closing
technique.
Closing is the most important aspect of the sales
process.
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Follow-up and Service The selling process is not completed by merely
making a sale.
Effective sales follow-up improves the chance forfuture business.
The complaint should be taken seriously and
handled with concern.
The customer must know that the company caresabout maintaining good customer relations.
The salesperson keeps customer informed about the
latest products or services.
A salesperson should analyse every call to
determine what factors influenced its eventual
outcome.
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