Block 3
Block 3
BLOCK
3
Selling Process
UNIT 8
Sales Process
UNIT 9
Sales Presentation and Demonstration
UNIT 10
Concluding Sales -
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BLOCK 3 SELLING PROCESS
In the previous block, you have learned about buying motives, buyer behaviour and sales force
motivation. In this block, you will learn about sales process, sales presentation and
demonstration and methods of concluding sales. This block consists of three units:
Unit 8 explains the meaning of sales process, steps in sales process. This unit will also discuss
about the methods of approaching prospects and how to make sales presentation and
demonstration.
Unit 9 discusses the principles of effective presentation, planning the presentation strategy,
essentials, tools and techniques and steps involved in sales presentations and demonstration.
Unit 10 discuss the various techniques of closing sales, sales resistance, handling of objections,
and post sales services.
UNIT 8 SALES PROCESS
Structure
8.0 Objectives
8.1. Introduction
8.5 Keywords
8.0 Objectives
After studying this, unit you should be able to:
A sales process is a set of activities undertaken to successfully obtain an order and develop
long term customer relationship.A sales pipeline is a visual snapshot of opportunities in
different stages of sales process. It also enables salespeople to know which deals to focus on,
where do they need to put extra efforts, and how much are they likely to make in the coming
months.
It is a wastage of time and effort and also unethical for salespersons to sell their product to
people who do not need it. Salespeople should sell their product in such a manner that
product do not come back but the customer do. Individual and organisations who do not have
the ability to buy should not be pursued because they will try to postpone their purchase. Too
much of sales persons time is wasted talking to people who do not have the formal authority
to purchase a product. Majority of the time organisations have a buying committee who are
responsible for making purchase. Purchase decisions may even be shared at consumer level
between the family members. Before approaching a prospect, a sales person should confirm
that the prospect has eligibility to purchase the required product.
Activity1
On the basis of examples below identify if the following leads will qualify to be the prospects
and why:
3. Convincing a clerk in a real estate company to convince the CGM of the corporate to
provide the tender to a contractor………………………………
………………………………………
Steps in Prospecting
It is important to define your prospect so that the selling efforts are focused from the very
beginning. Once the prospect is defined it is important to search for the potential prospects:
where they are located so that the information about each tentative prospect can be collected.
Prospects with requirement ‘too small” to represent profitable business are removed from
consideration. In case more detailed information is needed personal visits may be handy to
separate prospects from non-prospects. Finally, it is important to relate the company’s
product to each prospects’ requirement in terms of its uses and application from customers
point of view.
Center of Cold
Influence Spotters Observations Advertising
canvassing
Method
Company
Endless chain Retailers Miscellaneous
records
.
Fig 2: Major Prospecting Methods
ACTIVITY 2
Discuss with the salesperson of an insurance company, an educational institution, a real estate
broker and identify the prospecting methods and strategies used by them and discuss why
they used those strategies?
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The significance of pre approach lies in concentrating only on prospects and not suspects,
hence saving time. It also provides all the required information about prospect so no loose
talks or mistakes may happen and sales person can give sales presentation more efficiently
and effectively. This builds up the confidence of the salesperson and demonstrate
professionalism on his part. It also helps in developing goodwill between the salesperson and
the prospect and enhance the probability of making a sale.
Planning the sales call requires obtaining strategic information about the prospects like
their name, position, personal background, educational background, technical knowledge,
normal buying behaviour, personality traits, authority in the decision making etc. Sales
person must understand total buying situation and try to gather information from trade
associations,chambers of commerce etc. Salesperson may also obtain preliminary information
by gathering first-hand information by making a preliminary call. Such a detailed information
is necessary to provide complete solution to the buyers.
A number of steps can be taken to ensure a positive response by the sales person. A senior
official in the company can be asked to set an appointment and salesperson can send a sales
promotion gift also known as ‘door openers’ like pen, key ring, calendar or diary along with a
personalized letter and brochure targeting buyer’s needs. Once the appointment is finalized
the salesperson should plan his sales call route to minimize travel time and expense.
Reconfirming the appointment on the scheduled day is always better to avoid unexpected
cancellation of appointment.
ACTIVITY 3
1.What kind of strategic information a salesperson selling avacuum cleaner and a salesperson
selling water purifier would require regarding their prospects before approaching them
directly. Prepare a checklist of eight items for the same.
1.…………………………………… …………2………………………………………….
3.…………………………………… …………4…………………………………………..
5.…………………………………… …………6…………………………………………..
7.…………………………………… …………8…………………………………………..
1.…………………………………… …………2………………………………………….
3.…………………………………… …………4…………………………………………..
5.…………………………………… …………6…………………………………………..
7.…………………………………… …………8…………………………………………..
2. Compare the checklist of both the salespersons, one selling vacuum cleaner and another
selling water purifier. Is there any difference? Why?
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A salesperson should always avoid paying surprise visits and should try to meet the prospects
during the slack hours rather than odd hours like too early in the morning or too late in the
evening or during financial closing. It is always advisable to meet during the slack hours.A
number of methods and strategies can be used by the salesperson to approach the prospect
depending upon the selling situation as explained in Fig 3.
Introductory Approach
The salesperson can make an initial good impression by confident introduction of himself
and his organisation.
Reference Approach
The salesperson can carry testimonial letters from satisfied customers.
Compliment Approach
Praising the prospect for his good choice or classy taste.
Interactive Approach
Involving the prospect in two way communication or interaction to understand the
requirement of the buyers.
Dramatic Approach
This attention getting approach is used by salesperson since time immemorial.
Sample Approach
Salesperson can offer samples or free gifts but should take care of legal and ethical
guidelines.
Identify which approaching method has been used in the following sentences:
1.“Well, I must say Mr. Sharma the interior of your office is very attractive. You have very
good taste”……………………………………………………………………………..........
3.“The furniture of our company is light weight, folding, adjustable and also anti-bacterial”.
…………………………………………………………………………………………………
5. “Let me show you how you can turn your white hair into black within 10
minutes”………….
7.“The premium that we offer if you purchasecar could be a year of free gas-fill ups” ……..
8.“Using this lightweight projector will creat a balance between size, price, brightness and
comfort. A perfect solution for last moment business trips or for work at home presentations”
……………..………………………………………………………………………………….
9 “Your friend xyzis satisfied with our washing machine and suggested that I contact you”
……………………………………………………………………………………………….
10. Welcome to our Apex Audio. Have you been into our store before? …………………….
1.Which of the following statements are True and which ones are False:
i. This stage involves the first opportunity for face-to face interaction, between the
prospect and the salesperson and the salesperson should put his best foot forward,
it is known as………………………
ii. In this approach a salesperson may carry references from previous customers, it is
known as ……………………….
iii. An individual or an institution may be qualified to be a prospect if he has the
need, authority………………………. to buy.
iv. It is very common for the salespeople to overreact and indulge in a kind of
performance to get prospects attention.This is known as ……………
v. Current satisfied customers, taxi drivers, clerks can act as
……………………..and help in providing a lead for a fee.
Sometimes prospects objections may be to get out of the selling situations or brush off the
salesperson. Like they may say, “we are just exploring our options right now” or “we are not
ready to take a decision today” or “we do not have money right now”. More often such
statements indicate purchase anxiety which can be handled by reducing their risks by
providing more information to them or link the product with their needs. Salesperson can use
a number of methods to handle prospects objections:
ACTIVITY 5
Identify which method has been used to handle objections in the following sentences:
3. Buyer: I don’t see the need for screen guard for the laptop
Salesperson: Do you have kids? If yes then you will be needing it.………………………..
4.Buyer: The fabric of this shirt does not seem to be of the best quality
Salesperson: Yes, you are right. If it had been, the price would have been considerably
higher……………………………………………………………. …………………………….
Every salesperson reach closing with certain apprehension as he cannot be 100% sure
because sometimes even after smooth flow throughout the sales process it may not end in
sale. If it is a high-pressure sale the salesperson has to convince the prospect that the product
is good for him and need effective persuasion to close the sale. Even after refusal of customer
salesman should not give up and aim for at least five ‘trial close’.A trial close is to see if the
prospect is ready to buy and salesperson can close the selling procedure.
Prospects may provide a number of closing cues to the salesperson. For example, ‘prospect
may begin handling the product’; prospect starts testing and trying the product; ‘prospect has
nothing more to ask’; ‘prospect start asking about the final price, installation, delivery etc.;
‘prospect unconsciously reach for his wallet.
The salesperson may try for ‘indirecttrial closes’ by asking questions like:
If even after theses ‘indirect trial closes’salesperson fails to close the sale, then he should try
for ‘direct closes’ Sometimes prospect expect the salesperson to ‘push them into buying’. It
makes them feel important and also put them at much better bargaining position. But certain
prospects may respond negatively to such frank requests.
After all these efforts, if the prospect does not show any inclination to purchase the product
the salesperson should continue to sell the product by providing more information about the
product, stressing upon the positive points, summarising the benefits of the product, offering
better price or extending the corporate warranty.
ACTIVITY 6
1. Suggest a suitable strategy for closing the sale of:
a) Washing machine
b) Car
c) Insurance
d) An apartment
e) A holiday package
Moreover, if the company do not listen to their criticism, they will bad mouth it to others and
this will harm the credibility of the company.It is said that if the customers are dissatisfied
only 10% customers come back to you and the remaining will bad mouth to others. Feedback
may also help the salesperson to introduce complementary products of the company. A
satisfied customer will always be brand loyal and can be used as a reference for establishing
future contacts and networking. This is what relationship marketing is all about.
The following steps can be taken by the salesperson after the sales:
Concentrate on account penetration. Look for people with needs and problems that
can be satisfied by you.
Maintain contact and relationship with customers.
Handle customers complains immediately because this demonstrates your
commitment towards them.
Always keep your promise as nothing destroys the relationship then not keeping your
promises.
Become a valued partner in business. Shift your role from a salesperson to trusted
advisor for customer.
Appreciate your customer by offering him a birthday card, or a thank you note or, a
thank you call.
1.Which of the following statements are True and which ones are False:
i. Sales objections is an indication that the prospect is paying attention to the sales
presentation and may be interested if the objections can be addressed effectively.
ii. Salespersons should not listen to the criticism by buyers because the more they listen,
the more buyers will complain.
iii. Creating a fear of loss in people can be an effective method of closing a sale.
iv. Salesperson feel relax once they have sold the product and should forget about the
current customers and start afresh.
v. Low pressure sales throughout is an indication that prospect will surely purchase the
product.
i. Prospects objections like they may say, “we are just exploring our options right
now” or “we are not ready to take a decision today”
show…………………………on their part.
ii. Nullifying prospects objections by cross questioning is known as
………………………..approach.
iii. Which color customer would like to buy, which payment option he will use are
the few examples of ……………………
iv. Offsetting prospects valid objection by providing an advantage is known as
……………….
v. Feedback of follow up is very important to reduce
…………………………………….. of the buyers.
The process of selling involves a series of seven steps that commences with prospecting and
qualifying, Pre-approach, Approaching the prospect, sales presentation, handling with
customer objection, closing the sales and finally, the follow-up action. An effective selling
process bolster the managers and organization to accomplish their aims and goals set for the
individual, territory and organization.
Prospecting and qualifying isa process of identifying prospective buyers of the product. An
individual or an institution may be qualified to be a prospect if he has the need, authority,
ability and eligibility to buy. The major prospecting methods are center of influence method,
spotters, advertising, endless chain, observation, cold canvassing, company records, retailers
etc.
The second step in the selling process Pre-approach in which sales person gather information
about the needs, behaviour, nature, likes, dislikes, preferences, economic and social status so
that accordingly sales person equip himself to give effective sales presentation. The
significance of pre approach lies in concentrating only on prospects and not suspects, hence
saving time.
Third step is Approaching when prospect and salesperson come in direct contact with each
other. The salesperson should create a good impression on the prospect through his
personality, product information, professionalism and command of the situation. A number of
methods and strategies can be used by the salesperson to approach the prospect depending
upon the selling situation this includes introductory approach, customer benefit approach,
compliment approach, reference approach, interactive approach, dramatic approach and
sample approach.
Forth step is Making the sales presentation or demonstration which is an exercise to showcase
the characteristics of the product and highlight its utilities, performance, services and
quality.If the prospect can test the product successfully in front of prospect, it will enhance
the confidence of the prospect and buying decision is reinforced.
Fifth step in selling process is dealing with prospects objections. Once the product
characteristics have been demonstrated any rational prospect will have certain questions,
doubts, objections in his mind about the performance of the product. So, objections should be
taken as a positive sign of interest and involvement. It may be an indirect way of asking for
more information, more time, more convincing or more assurance before they commit
themselves.
Once the salesperson has demonstrated the product and handled sales objections then finally
the salesperson should close the sales at the right time. This is the sixth step in selling
process.Inadequate preparation, poor impression, failure in meeting objections or wrong
approach on the part of the salesman may come in his way of closing the sale.
Once the product is sold it is very important to take the feedback or follow up with customers
to ensure if they are satisfied with the product. This last step of selling process is very
important to reduce post purchase dissonance of the buyers and enhance their loyalty towards
the company.
8.5 Keywords
Sales Process: It is a set of recurring steps that a sales person follows while selling a product.
It is a complete cycle which commences from identifying the customer to closing the deal
with them.
Prospecting: It is the first step in process of sales, which involves identifying and qualifying
potential customers. The aim of prospecting is to convert the potential customer into current
customer.
Prospects:A prospect is a customer who has potential and has been qualified as fitting certain
criteria outlined by a company based on its business offerings.
Approaches to selling: These are the approaches that a salesperson follow to reach the
prospect and make good impression. This prepare the prospect to be receptive to sales
presentation and demonstration
Sales closing methods: These are the different techniques adopted by a salesperson to close
the sales.
9.1 Introduction
9.0. OBJECTIVES
After studying this unit, you should be able to:
ACTIVITY 1
You must have watched salesperson involved in sales presentation and demonstration in B2B
and B2C selling. What difference in their approach was witnessed by you?
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ACTIVITY 2
Imagine yourself as a salesperson of Sony LED TV. How will you display a good sales
presentation and demonstration?
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Slide shows and power points do not have the ability to impress the prospects now.
Increasing competition require that the message should stand out. Technology can make
presentations more memorable and effective. Digital interactivity has become the buzzword
today which allows the prospects and the clients to interact with the presentation making it
more engaging. Companies are creating multi touch experience with their presentations.
Prospects can interact with them using touch points, using their mobile or laptops sitting at
home. Digital interactive software is making interactive and colorful presentations. Video
conferencing that shows the body language, facial expression is an outstanding contribution
of technology. It helped millions in connecting with each other during the pandemic.
The success of e-commerce lies in the power of technology that can effectively present the
product using 3-dimensional presentations. Prospects are also provided options to view the
product from different angles, in different colors.
However, technology fails to develop relationships and personal interaction to sales which
are the foundation to sales. Salesperson should use technology selectively and chose the one
that yield highest productivity and performance. A judicious blend of technology with
personal touch will win the battle for salespersons.
ACTIVITY 3
ACTIVITY4
High-tech Ltd. is an air purifier brand, which has just entered the market. The company wants
to make its place in the competitive environment. You are required to design a sales
presentation to increase its sales.
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9.5 Types of Sales Presentations and Demonstration
Sales presentations and demonstrations can be oral and written. Oral presentations are used in
case of less expensive products and most of the times they supplement written presentation.
Oral presentations are used more in case of business to consumer (B2C)selling and explain
preliminary information related to features, benefits and uniqueness of the product.
Written presentations are an integral part of Business to business (B2B) selling. Sales
presentations are of three types:
Example: Generally, sales presentation to retailers who may not be always educated to catch
up with the little content, so presentation has to be self-explanatory.
In modern parlance buying has become more complex because it needs approval from more
than one person. Sales teams are involved who together design written proposal who should
have following characteristics:
They shall enhance salesperson and company’s image and attract attention of the
stakeholders.
Build trust in the company’s image to deliver and they get required response from
their client
The sales proposal should convey an understanding of their business client’s needs.
Deliver solutions to their problems.
1. Stimulus Response Strategy: Salespersons using this strategy present the purchase
stimuli in such a manner that it receives positive response from the prospects.
2. Consultative Selling Strategy: Also known as ‘problem solution strategy’, using this
strategy the salesperson aims to solve the problem of the prospect. The entire
presentation is guided to provide solution to the client or prospect. The solution is
arrived at after several rounds of interaction wherein at each stage advantages and
disadvantages are discussed. This is more common in case of technical products like
purchasing a software to enhance efficiency, event planners who plan events as per
specifications of their clients.
3. Need Identification and Satisfaction Strategy: In this selling strategy, the
salesperson first identifies the need of the prospect. Prospects disclose their
psychographic characteristics in terms of their attitudes, interests, opinions,
personality and lifestyles. This requires skillful questioning by an experienced
salesperson. The salesperson, like a psychologist should try to understand the mental
framework of the prospect. Try to understand his background and then indulge in
demonstration and presentation. Misreading or too conservative reading of prospect
may lead to losing the sale.
4. AIDA Strategy: When using AIDA strategy, salesperson move prospects through the
sequential steps of AIDA: attention, interest, desire, and action. It demonstrates the
stages a customer goes through during the process of purchasing a product.
5. Professional Selling Strategy: As buying has become more complex phenomenon
with purchase committees involving more than one decision makers selling has
become more professional involving team work. Each member of the Sales team is
specialist in his own field and they make presentation to the purchase committee or
buying team and must appeal to them all. Such kind of selling is very common in
government organizations.
6. Depth Selling strategy: Depth selling involves applying all the above-mentioned
selling strategies in unison. It starts with understanding the need of the prospect to
uncover the buying motives, stimulus-response strategy to get a positive response
from the prospect and then ends with problem-solving strategy to win prospects trust.
Using these strategies salesperson takes the prospect through various stages of AIDA.
So, it is a judicious blend of all selling strategies which can be used by a brilliant
salesperson only.
Eureka Forbes Ltd. started under Shapoorji Pallonji Group in 1982 as a multi- channel,
multi- product organization which included water purifiers, air purifiers, vacuum cleaners and
security solutions and India’s leading health and hygiene brand. The prize winning
Aquaguard is the star water purifier of Eureka Forbes followed the tried and tested direct
selling route and is regarded as the first direct selling companies in India. Sales personnel was
considered as the core strength of the company and they focused on recruiting young men in
their 30s who were enthusiastic, extroverted, outgoing with effective communication skills
called “Eurochamps”.
With a belief that ‘A relationship does not die with a sale. It actually begins.’ Eureka Forbes
focused on Customer Relationship Management (CRM) and maintained fabulous customer
feedback and today (2021) the company has a gross turnover of 29.6+ millions with 35
countries covered and 20+ million happy customers.
Sales Process
Usually, the following sales process is followed by sales personnel in Eureka Forbes.
The Euro champ requires to make a list of potential customers and qualify the leads.
Formulating prospect definition: They have to identify household, organizations and persons
who have the requirement for a water purifier.
Searching out potential sources: A number of traditional and modern methods of prospecting
are there and all Eurochamps continue looking for innovative sources.
Need Identification: From the information that the Eurochamp has about the company’s
product, now chooses and recommends those that seem to be the most appropriate for a
particular prospect.
Pre-approach: The initial contact that Euruchamp make with the prospect is known as
approach, and preparing for approach is known as approach. In this stage, the Eurochamp of
Eureka Forbes water purifiers gather knowledge about the water purifier he will sell, about
the company he will represent i.e. the Eureka Forbes company that he will represent, the
competitors, market in which he will sell and about the prices. Eurochamp is also working on
the pre-sales objectives, pre-sale presentation plan, details about the requirements of the
buyers, their buying behavior, personal characteristics. The more well prepared he is the more
chances of success.
Approach: At approach stage when he is meeting the customer for the first time, it is
important for him to decide on the approach style so that favourable response can be
achieved.
Objectives of Approach:
Arresting the attention of the prospect Probing to find out the needs of the
prospect
This stage is also known as ‘story telling stage’where the Eurochamp displays the product to
the prospect. Demonstration is ‘showing and telling’ about the product. The ease of use of the
product is demonstrated to the prospect and how easy it is to have pure drinking water
through the purifier is further explained. The presentation and demonstration can be made
using brochures, pamphlets, fliers, charts etc. They, are used to ‘paint a picture’ in the mind
of the prospect. Further testimonials and references are used emphasize his point. Eurochamp
always link the features of water purifier with the needs of the customer thus, reducing the
gap between the customers and the product and reducing the possibility of objection in the
subsequent gaps.
While giving a sales presentation, the Eurochamp always try to associate features of the water
purifier with the needs of the customer. This helps in lessening the gap and level of customer
objection in the subsequent stages.
If the customer agrees with the opening idea, the salesperson goes for a trial closure.
Otherwise Eurochamp further elaborates the additional benefits. The apprehensions of the
customer regarding product performance are further clarified. Mor informationis seeked from
indifferent customers. This probing helps in confirming the fit between the stated needs and
promised benefits
Handling objections
The objections of the customers during the presentation are handled positively, deeper
probing is done to further clarify the objections, deny the relevance of objections and
transform the objections into the reasons for buying the product.Objections can be
psychological objections like reluctance, giving up), objections related to delivery, price,
company or product characteristics.
Closing
Once all the objections are countered successfully the sale is to be closed. Customers should
be motivated to sign the order form. If the customers objections have been handled
efficiently, presentation and demonstration is effective then final close should happen without
any resistance. First close is hardly so Eurochamps should try for several close and keep
trying various techniques of closing the sales.
Once the sales has closed, the Eurochampsexpress gratitude to the customer. The continuous
follow up is necessary to reassure him on his decision of purchase. Once again,all the
necessary details (like the delivery time, terms of purchase etc.) are clarified. A proper follow
up should be done to ensure correct installation, instruction and after sales service. Proper
follow up reduces the cognitive dissonance of the customers. These steps may create satisfied
customers with brand loyalty.
A prospect is a person who could be a customer of your business based on certain qualifying
criteria. This chapter discusses the various types of prospects namely: skeptical prospect,
procrastinator prospect, silent prospect, opinionated prospect, talkative prospect, timid and
cautious prospect, methodical prospect, impulsive prospect and chip on the shoulder prospect.
This unit also discusses various sales presentation strategies which can be used by a
salesperson to enhance the sales. Stimulus response strategy, Consultative selling strategy,
need identification and Satisfaction strategy, AIDA strategy, professional selling strategy,
Depth selling strategy.
Sales Presentation: A sales presentation is a talk that attempts to persuade an individual with
a planned strategy of sales presentation of a product or service.
Tailored Presentation: Presentations which are made according to specific needs of the
clients.
2. i. Impulsive ii. Tailored iii. Consultative selling iv. Silent Salesman v. Canned
Presentation
B 1. i. Procrastinator prospect ii. Impulsive Prospect iii. Skeptical Prospect
iv. Methodological Prospect v. Chip on the shoulder prospect vi. Talkative Prospect
b) Explain the tools and techniques used for sales presentation and demonstration.
e) What strategies can be used by a salesperson to make its sales presentation and
demonstration effective and efficient?
Anderson, Rolph E., Joseph F. Hair, Jr. and Alan J. Bush, 1992. Professional Sales
Management, McGraw-Hill, Inc.
Douglas J. Dalrymple, William L. Cron and Thomas DeCarlo, 2021.Sales management
Concepts and cases, John Wiley & Sons, Inc.
Panda, Tapan K and Sunil Sahdev, 2005. Sales and Distribution Management, Oxford
University Press; New Delhi.
Still Rr, Cundiff EW & Govani, NAP, Sales Management: Decisions, Strategies and Cases,
Fifth Edition, Prentice Hall of India. New Delhi.
Unit 10 Concluding Sales
Structure
10.0 Objectives
10.1 Introduction
10.3Closing Cues
10.0 Objectives
After studying this unit, you should be able to:
10.1 Introduction
This is the culmination of selling process. The entire exercise of selling a product becomes
futile if the sales do not take place. The objective of close is to convince the prospect to place
an order immediately or sign the order form. Closing the sales is the logical outcome for
every salesperson, the fruit of his labour at the end of long selling process after satisfactorily
answering customers objections and removing all obstacles. The salesperson should attempt
to close the sales when they are in the conviction stage of buying process. When sales
presentation is thorough and complete there is no difficulty in closing the sales.
Unfortunately, the research shows that 64% of salesperson fail to close the sales because they
are afraid of being told “no”. In this unit, we will study the meaning of concluding or closing
the sale, analyze the closing cues, explain how ‘trial close’ be attempted by salesperson,
outline the sales closing techniques, and explain that the selling does not end with sale.
But no matter how good a salesperson is, he cannot be 100% sure thateven in case of ‘low
pressure sales’ sales are bound to happen and in case of ‘high pressure sales’ sales will not
take place. Sometimes it may happen that throughout the selling process the prospect agreed
with the salesperson and sales process was smooth, still sales may not happen. On the other
hand, it may also happen that the prospect had a very critical approach and there was very
high pressure on the salesperson but towards the end the prospect readily agreed to purchase
the product.
When customer is interested, he will start handling the product. “Let me try the
trousers to check the fitting and the style” or “let me check the camera of this mobile
by clicking a selfie”.
When the prospect admires the product and make a positive statement about the
product. He may say, “Oh! This blanket is very soft” or “This puppy is so lively. He
will reduce all my stress when I am back from office after a hard day’.
When the prospect asks for the order form and start reading it.
When the prospect start asking about the ‘best deal’ that the salesperson can offer
him’, or he is interested in the final discounted price of the product.
When prospect start asking much detailed questions like how will product be
delivered, how it will be installed, how early it can be installed, who will come to
instal the product.
When the prospect’s voice become soft, expressions become more friendly and
pleased and the prospect start conversation with the salesperson in a relaxed and
jovial manner.
When the prospect becomes interested in who all are using the product. This is to
reduce his post purchase dissonance and get social approval for his decision.
When the prospect unconsciously checks if he has the cash or if he is carrying his
debit/ credit card. He further asks about other payment options like UPI or net
banking or any other.
When the prospect is interested in trying or test the product……..Like.. “When can I
test drive the car.
When prospect has completed the sales presentation and now, he looks at the prospect
for some indication or positivity from him.
When prospect has answered prospects objections successfully.
ACTIVITY 1
Have you ever used/ noticed the ‘closing cues’ in your interaction with salesperson? Is
there any difference in the ‘closing cues’while making a purchase for your home and
while making a purchase for your office?
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i. Once the salesperson has demonstrated the product and handled sales objections
then finally the salesperson can close the sales any time.
ii. The entire exercise of selling a product becomes futile if the sales do not take
place.
iii. In case of ‘low pressure sales’ salesperson can be 100% sure that sales are bound
to happen.
iv. The salesperson must learn not only ’how’ to close but also ‘when’ to close.
v. The salesperson continuously must assess the attitude and mood of the prospect.
2. Fill in the blanks:
i. If the prospect knows who all are using the product it is easy to get
……………………………………………….. for his decision.
ii. The salesperson should attempt to close the sales when they are in the
……………………………… stage of buying process.
iii. When customer is interested, he will start ………………………. the product.
iv. The research shows that 64% of salesperson fail to close the sales because they are
afraid of being told ……………………………………………………………….
v. Continuous rejections can be ………………………….. for a salesperson.
A salesperson may try for ‘indirect close’ using verbal and nonverbal forms in the
following ways;
“Will you like to purchase an extended warranty of another one year for this Dell laptop”.
“Will you pay all at one time in cash or you would prefer to pay in instalments and will
take loan.”
Give the perfume or product to the prospect to touch, smell, or hear. Let him have multi-
sensory experience. …… “The fragrance of this perfume will last in your clothes for at
least two washes”.
“This cardigan will keep you very warm and cosy in this winter”.
The prospect may respond in different ways to the salesperson’s ‘indirect close’.Some
prospects may want more information before he makes his commitment while others may
come up with more objections. The prospect may feel that salesperson is too hurried and
so he may become defensive.If an “indirect trial close” fails to get a favourable response
from the prospects the salesperson may try for ‘direct close’ as well. For example, he
may try for ‘direct close’ and ask very politely, “What is your opinion about the product”;
“What do you think about our offer”; “What is your point of view on the things discussed
so far”. If still it does not work, he should continue selling the product with a positive
attitude.
ACTIVITY 2
Conduct a market survey with 5 housewives engaged in B2C purchase and 5 heads of
purchasing in different offices engaged in B2B purchase. Identify the most common ‘trial
closes’ used by salesperson that they have noticed. Compare the trial closes used in B2C
and B2B.
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Choice Close: Instead of being asked openly whether the prospect will purchase the
product or not, in case of this technique the prospect is gently guided to choose between
two items the seller has. For example, prospect can be asked, “Which model washing
machine you would prefer?”.
Minor Points Close: Using this approach, the salesperson take confirmation from the
prospect on minor points and gradually winning him over and leading towards final sale.
He may help the prospect in narrowing down his choice by asking questions like, “Which
colour would you prefer?”
“You want a deluxe model car or premium model car”, “How would you like to make
payment cash, debit card, credit card?”, “Will it be down payment or instalment”, “How
soon you want it to be delivered to you”.
Assumptive Close: In this case the prospect assumes that the prospect will make
purchase and he communicates this thought to the prospect through his actions, comments
etc. “How will you like to make payment- cash or card” “Will you eat it here in the
restaurant or take away”. He may start wrapping the product, start preparing the bill or
take out his card payment machine. Handling the prospect, a pen to write or handling over
the keys to him is an example that the sale is about to close.
Stimulus-Response Close: The salesperson ask such questions that the prospect is
stimulated to provide favourable response. “You would prefer a base cream that would
compliments your fair complexion, Isn’t”. “You would like to wear such a dress for your
wedding that you stand out, something that nobody has worn before, right”. Such a
strategy is used more by inexperienced salespersons. However, the salespersons should be
careful in implementing this strategy ascertain prospects may find such compliments
irritating.
Summary Close: After the presentation is over the prospect may sum up the advantages
and disadvantages of the product to the prospect. So once everything is in front of the
prospect in black and white it is easy for him to take decision. He can weigh the
advantages and disadvantages and take his decision accordingly. Such a strategy works
very well with rational prospects.
Standing Room Only Close: The salesperson wants the prospect to take his decision
immediately after the presentation because he knows no matter how much the prospect is
impressed with the product, brand and the salesperson once he leaves without deciding he
may not be able to come back because of personal, environmental and situational factors.
So, they put psychological pressure on the prospect by saying that the only few pieces of
the product are left so if they postpone their purchase, they may lose the product as the
product is selling like hot cakes.
Special Deal Close: Sometimes it happens that the prospect is almost ready to purchase
the product but needs some extra push to take favourable decision.Offering their best deal
is one way of luring the prospect to take purchase decision. The salesperson might say, “I
can offer microwave idli-maker along with the microwave if you purchase today” or,
“Since this is the last piece of electric tandoor left, I can offer 15% discount instead of
10%”. He may also say, “I am giving you discount from my commission because with
this piece I will reach my target”.
Success Story Close: The salesperson can cite examples from past customers with
similar problems. He may say that the product solved their problems so it will be of great
help to them as well. “My sister also purchased this electric scooter and she found it to be
very economic with almost zero maintenance”or, “My brother also completed his MBA
from this business school, and he is very well placed in Dubai and my cousin from same
business school qualified for IAS”.
Closing on Resistance: Sometimes the prospect may still have doubts even when the sale
is about to close. Under such situation sales person should be patient and very quietly turn
the resistance into the reason for purchasing the product. “Don’t worry about the weight
of the pots with fresh plants, I will get them home delivered and not only that my man
will plant the saplings also in the pot of your choice”.
Turnover Close: Such closing technique is very common in case of technical products.
Today rather than one individual salesperson handling the entire sales, sales team are
involved in the procedure. If the salesperson feels that prospect’s objections are very
technical or in some cases prospect is looking for greater discount, he might handover the
prospect to his senior stating, “My team leader can answer your specific questions. Let
me introduce you to him”.
Puppy Dog Close: It is based on the notion that very few can resist a cute puppy and if
they take them home they end up keeping them. Similarly, if the salesperson let the
prospect take home the product and try it before finally purchasing it, they will find it
difficult to part with it. For example, if the prospect is not able to decide between buying
which brand, salesperson may ask the prospect to carry home both the products and take
his own time to decide. Majority of the time prospect end up keeping both the products.
One prospect stated, “My family jeweller told me to take both the diamond ring and the
diamond bracelet home because I was not able to decide what to purchase to gift my niece
for her wedding. I ended up purchasing both- ring for my niece and bracelet for myself.”
No-Risk Close: This technique also works like puppy dog close. In this case there is no
risk for the prospect as salesperson is giving money back guarantee in case the prospect
does not like the product, he can return the product and get the money back. Most of the
time even if the prospect is not fully satisfied with the product, he will not return the
product and adjust. The reason being that the moneyback guarantee reduces his post
purchase dissonance. He feels that the product is not forced upon him. The prospect may
think, “I am not fully satisfied with the water purifier and informed the salesperson about
it. He said that there is no problem I may try the water purifier for few more days and if
still I am not satisfied with the product, I may return it but after few days I got used to the
faults in the purifier. Moreover, going to the shop again and trying new product again
seemed too much because of my busy schedule so I continued with the same water
purifier.”
Lost Sale Close: This sale technique requires humility on part of salesperson. He finally
accepts that he was unable to provide the kind of product the prospect was looking for
and so apologizes to the prospect for not able to understand him and fulfil his need. He
may honestly ask him what would have taken for the sale to happen. This may surprise
the prospect and he may himself help the salesperson to provide what he is looking for
and ultimately sales may happen on happy note.
ACTIVITY 3
Give one example each for the following closing techniques used by salesperson from
your interaction with them on various occasions:
Turnover Close……………………………………………………………………………..
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Assumptive Close…………………………………………………………………………..
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Need Identification
The shops are either proprietorships or partnerships. Asian Paints, being the market leader
with an outstanding brand pull, does not require to make market push to create customer
traffic. But the requirement for the customers to directly deal with the company is too strong
because of market dynamics. This happens because of low direct benefits for the shop like
higher stocking, high levels of instant investment, zero credits and all credits at the end of the
month resulting in higher purchase cost or higher obstruction of funds.
The possible requirements of the resellers can be categorized as per the following: the
shopkeeper wants to start the shop’s image by becoming an authorized dealer; wants to build
trust among customers by becoming an authorized dealer; wants to increase share in the
market; wants to expand into paints; wants to participate with other shops having dealerships;
requires company assistance to growing business.
Demonstration
The terms and conditions of becoming an Asian Paints dealers are explained. The procedures
are simple, not much of certification required. The product portfolio is explained with
importance on making the brand move quicker in the channel. The standard pack sizes are
clarified, and demonstration kits are used if required during the demonstration.
Handling Objections
The most common objections encountered and the way they are handled are explained below:
In response to objections on higher stocking (must order in average quantities and not loose),
the prospective dealers are instructed that it is proposed for the advantage of the dealer so that
he can entice huge number of customers. In such a case, stocking is essential. The SKUs that
are not fast moving can be sold loose also.
In response to objections on high level of instant investment, they are guided that this
investing is one time and since Asian paints products enjoy a higher return on investments,
the returns on the same investments are higher compared to investments with the competitors.
It is always advantageous for the dealer to stop the entire range as in such a case he stands to
gain customers who may not come to his shop due to non-stocking of the same.
In response to objection on zero credit, they are instructed that this is a company rule as
accompany is dealing with the dealer for the first time and the company is not taking any
securities like other companies do (It only takes payments for the goods build). The credit
provision may be considered once few transactions are over depending on the value of
transactions, examples of other dealers are given in the context.
In response to objections on all credits at the end of the month resulting in higher purchase
cost/higher obstruction of funds, they are instructed that there are other assistances that an
authorized dealer enjoys against which the blockage is negligible.
In response to the argument that competition is offering better schemes and better credit, they
are counselled that it is difficult for the competitors to maintain sales as fast as that of Asian
Paints. So, the higher return on investment that the dealer will get by Asian Paints will
compensate for the same.
In response to claims of better servicing by the competitor company, they are counselled that
this is by far not true and can be countered by comparing the number of visits the competitors
salesperson makes (his frequency of visits are less compared to Asian Paints sales personnel).
The responses to dealer are much faster due to the smaller geographical territory assigned to
Asian Paints salespeople.
In response to objections on counting complexity (tracking of purchase and settlement of
schemes), they are advised that documents of accounts are shown with their responses in the
customer service initiative response book for his contentment.
In response to objection against happy selling competition and no needs for Asian Paints
dealership campaign run by the competitors, they are counselled that the higher ROI that the
Asian Paints dealer enjoys gives him higher returns throughout the year rather than for a
specific period.
Closing
Once all the objections are answered successfully, the initial order for first billing is made,
this order is made keeping in mind the profile and potential of the shop and no such products
are billed that can end up as dead stock. This determination and concern is to bill only those
items that will have a fast-moving character in his shop. The sales is closed with a clear
signal that the company is acting in the interest of the dealer. Sales activities are also
undertaken at the point of the end customers of the product. The end customers include
painters, painting contractors, interior designers, architects, committee members (in case of
Cooperative societies/Institutions), technical/purchase departments, end customers (husband,
wife and even kids), builders, and dealers. The decision makers can be a combination of
several or all the above with the varying degrees of influence at different phases of buying
paint.
A trial close is often used by a salesperson to check whether the prospect is ready to buy the
product. A ‘trial close’ is a very significant tool at the disposal of salesperson and be used
after the sales presentation and demonstration stage and close of the main body of the
presentation before moving towards sale or when prospect is ready for sale. The ‘trial close’
may help a salesperson to determine: Whether the prospect likes your product, whether his
objections have been answered satisfactorily, whether some additional questions are not
answered or whether the prospect is ready to close the sales.If an “indirect trial close” fails to
get a favourable response from the prospects the salesperson may try for ‘direct close’ as
well.
There are several closing techniques that can be used by a salesperson alone or in
combination with other techniques as per the situation. For example: choice close, minor
point close, assumptive close, stimulus response close, summary close, special deal close,
turnover close etc.
Closing the sale is not the end of salesperson and customer’ interaction. In fact, it is the
beginning of development of new relationship between them which is the foundation of any
relationship and is known as relationship marketing. Follow up calls from salesperson play a
very important role in alleviating the anxiety and reassuring the customers of their decisions.
Trial Close:A trial close is used by a salesperson to check whether the prospect is ready to
buy the product and thus he may proceed to close the sale.
Closing Cues: It is an opportunity that salesperson should identify which could lead him to
close the sales.
Sales Closing Methods: Different techniques that can be used by salesperson to close the
sales for example choice close, minor points close, assumptive close, summary close, puppy
dog close, turn over close etc.
2.i.. minor point close ii. assumptive close iii. post-purchase anxiety