UNIT 2
PERSONAL SELLING
Why IIM Graduates are bad Sales
Persons ?????
5 Wrong things that your Mom
thought you
5 Wrong Lessons Learnt
1. Don’t talk to strangers
2. Wait to be properly introduced. Act
like a guest.
3. Don’t be pushy. Good things happen
for those who wait.
4. Better Safer than Sorry
5. Talk according to our situations
5 Remedies
1. Don’t talk to strangers – Re-define the term
STRANGER
2. Wait to be properly introduced. – Practice Self
Introductions
3. Don’t be pushy. Good things happen for those who
wait. – Change from Guest to Host Behavior
4. Better Safer than Sorry – Reject the Rejecters
5. Talk according to our situations – Always talk
according to others’ situations.
The Sales Process
Prospecting/ Qualifying
Preapproach/ Planning
Identifying Needs
Identifying Needs
Approach
Presentation
Handling Objections
Closing the Sale
Follow up
Why to look for new prospects?
To increase sales.
To replace customers that will be lost over time.
How will you qualify your prospect???
Does the prospect have the money to buy?
Does the prospect have the authority to buy?
Does the prospect have the desire to buy?
The MAD Approach….
Prospecting methods
E-prospecting – individuals and organizations
Cold canvassing – plan according to hit ratio
Customer referral – always the best !
Sales lead clubs – associate with the best one.
Prospect lists – primary and secondary sources.
Get published – pull the prospects.
Public exhibition and demonstrations – follow up !
Center of influence – contact the correct person
Direct mail – use strategic mails to impress.
Telephone and telemarketing – fastest and cheapest one
Observations – from market, competition
Networking – create good will in the market.
Test…
Biometric Attendance System
Life Insurance
Coffee Vending Machine
Packaging Machinery
Business Magazine
Treadmill
Recruitment Portal
Scenario 1
There are pros and cons of cold calling.
You have joined a new company and
you have got targets straightaway to
make a prospect database. What will
you do?
Cold calling
Call with taking appointments
Scenario 2
You want to enter a building and meet
a prospective client you don’t know.
Who is the main villain in Cold Calling ??
The Gatekeeper
Scenario 3
You want to know the name and details
of a prospective client whom you want
to tap. You have to impress the
receptionist in order to get the details.
What time would you call her if the
office time is 9.00 am – 5.00 pm. What
other strategies would you refer to?
Develop a Sales Presentation
Introduction
Present your product (FAB)
Present your marketing plan
Discuss the business proposition
Suggest a purchase order
Chose a natural closing method
Always use trial close wherever possible…
Using Trial Close
How does it sound to you
What do you think
Is this what you are looking for
Is this important to you
Does this answer your concern
FAB (Features, Advantages, Benefits)
Product Features Benefits Advantages
Camera Telephoto lens Take pictures Able to capture
from longer distance image from a
distance.
Bicycle Attached water Can hold a water Don’t get dehydrated.
bottle holder bottle.
New D.V.D. Can play any round Convenience Avoid multiple units.
Drill Press Multiple drill Can change bits Saves time.
bits attached without shutting Saves money.
down the machine.
Motor Oil Rust inhibitor engine to have Saves
money. have longer life.
Barriers to communication
Differences in perception
Buyer does not recognize need
Selling pressure
Information overload
Disorganized sales presentation
Distractions
Poor listening
How and what you say
Not adapting to buyer’s style
Remember the KISS Formula !
Don’t complicate things…
Individuals who are perforce constrained to be
domiciled in vitreous structures of patent frangibility
should on no account employ petrous formations as
projectiles.
A superabundance of talent skilled in the preparation
of gastronomic concoctions will impair the quality of
a certain potable solution made by immersing a
gallinaceous bird in ebullient Adam’s ale.
Answers:
1. People who live in glass houses shouldn’t throw
stones.
2. Too many cooks spoil the broth.
Customer Profile
Know each and everything about the customer
before the meeting.
Who is the decision authority
Terms & Requirement conditions
Who are the competitors ?
Purchasing policies
History of the account
Contents of a Presentation
Give a proper Introduction
Establish Credibility
Provide the Reference list
Introduce the product (FAB)
State your competitive advantage – market
plan, business proposition
Give quality assurances & Certifications
Handle objections effectively
Always use Trial Close wherever possible…
Scenario 4
You got an appointment with a big customer.
You are in the middle of the presentation.
The mobile of your client rings and the call
lasts about 10 minutes. How would you
resume your presentation again?
Your client interrupts you and tells you “You
certainly have a good product, but I’m not
interested now. Maybe you can call me next
month.” What should you do?
Scenario 5
During an presentation, you don’t know an
answer, what is the best approach?
A. Simply admit that you don’t know the
answer and that you will get back offline and
note down the queries.
B. React quickly by calling your senior and
getting the query solved then and there at
that moment.
C. Just answer wrongly and save your face at
that point of time.
Scenario 6
Suppose your product has 10 features and you
have covered it in 10 slides of your
presentation. During an presentation, you
come to know that the client is interested in
the featured covered in the 8th slide. So what
will you do?
Directly go to the 8th slide and save time
Go as per the slides in the same order
Go as per the slides, but cover 1-7 slides
quickly and stress more on the 8th slide
or some other thing you can do ??
Scenario 7
Your sales presentation is going on. Still half
of the presentation is left. The customer is
interested and asks for the price. What will
you do?
Will you complete your presentation and then
quote the price.
Stop the presentation and quote the price.
Approach Techniques
How will you begin your presentation ???
Opening with a statement
Opening with a demonstration
Opening with one or more questions
You can always start with informal chat.
Some points to remember….
Get people involved
No discussion of prices till value proposed
Always summarize the benefits at the end.
Handle interruptions patiently
Do not discuss competition unless absolutely
necessary
Always be ready with a detailed comparison
of your product vis-à-vis your competitor.
Types of Objections
Hidden objection
Stalling objection
No-need objection
Money objection
Product objection
Source objection
Hidden objection
Smoke out hidden objectives by asking
questions:
What would it take to convince you ?
What is the basis of your saying so ?
Suppose my product would do ____
( what you want) will you buy it ?
Stalling objection
I have to think this over
I’m too busy now.
I’m too busy now. You can talk to Mr.X
first.
I plan to wait for 6 months.
Give them some incentive to act
immediately.
No-need objection
I’m not interested.
The present product we have is still good.
We are satisfied with the present vendor
Has to judge whether it is a hopeless objection
or a hidden objection.
Money objection
Your price is too high.
I can’t afford it.
Give me a 10 % discount and I’ll think of
giving you an order.
You can offer something better than this.
Always explain the price-value formula.
Use positive terms instead of negative terms.
Give installment options
Product objection
Your competitor’s product is better.
The machine we have is better than
yours.
I don’t want to take unnecessary risks
by taking a new product.
Explain what is your USP against others.
Source objection
I’m sorry. I cant buy from you.
I want to work with a more established
company.
I have been dealing with X company for
the last 5 years. Why should I change
now?
Build a rapport with the prospect.
Scenario 8
After your presentation , how and when
will you ask for the order?
Just immediately after the presentation
Whenever the client is interested
Give him one day to think and note the
queries and come back asking for order
the next day.
(Mcdonalds strategy to be followed)
Closing techniques
Alternative-choice close
Assumptive close
Compliment close
Summary-of-benefits close
Continuous-yes close
T-account or balance-sheet close
Standing-room-only close
Technology close
Which is the best closing technique ????
Depending on the type of customer…
Scenario 9
Your prospect tells you to mail your quotation
latest by 8 pm today otherwise your order is lost.
Unfortunately, you could not make it by 8 pm
and complete it by 10 pm. So what will you do?
a. Mail him the quotation at 10 pm
b. Call and apologize giving the reason for the
delay and then send him at 10 pm
c. Don’t send him at 10 pm. Send him in the
morning.
OR is there something else which you could do?
Scenario 10
You are in a final negotiation meeting with a
customer to finalise a big deal. You are selling
your product at Rs. 5 lacs, the bottom line
being Rs. 4 lacs. Your boss has given you
strict instructions not to go below the bottom
line. The customer insists on purchasing the
product at Rs.3.5 lacs. You clearly know that
you don’t have any other customers in line
and also there is a strong competitor waiting
to clinch this order. What will you do?
Summary of selling …..
Obtain thorough knowledge.
Never waste time on unqualified leads.
Get an appointment on priority basis.
Plan your sales call to perfection.
Be a professional before your prospect.
Give an effective sales presentation.
Handle all the objections tactfully.
Close the deal and always follow up.
