MKTM508

SALES AND DISTRIBUTION

MANAGEMENT
Topic: Selling Process

Lecture Jan 24, 2024

 Learning
Outcomes
After the session you will be able to
• Recognize the selling process and apply
success factors in selling
Given are two scenarios. Identify the scenario(s) in which the mode of selling may lead to
cash flow crunch?
S1: A company makes products and sells them intermittently. The government is the customer
and there are numerous paperwork that need to be done before the consignment is billed.
S2: A company has opened a retail store that sells shoes and handbags and has also developed
a website for online shopping.
A. S1
B. S2
C. S1, S2
D. None of the mentioned option
Team selling approach is typically used for ___________________
(a) government companies
(b)institutional customers
(c) key customers
(d) distributors
Discussion Question

Assume that you are a regional sales manager of two wheeler auto
company and you are asked by your general manager (sales and
marketing) to submit your sales force strategy and tactics to achieve
an increase in sales volume by 20 percent for the next financial year.
What would be your response?
Personal Selling

Personal selling is defined as, “personal communication of information so as to

persuade a prospective customer to buy a product, a service, or an idea that
satisfies the needs of the buyer”.

The personal communication to a customer is usually done by a company’s

salesperson. The nature or characteristics of personal selling includes:
(i) Transactional and relationship selling,
(ii) Varying sales positions, and
(iii) Sales as a career.
 Inside order takers

Outside order takers

Sales
Creative sellers
Positions
Consultative Sellers

Key Account sales executive

Propose the solution

It’s October 1 and your first day on the job as a salesperson for a central
air conditioning firm in a town of about 65,000 people. Your boss, the
owner of Stibb’s Commercial Air Conditioning, has said, “Go out and
get some business customers.” Until now, Mr. Stibb has relied on a small
advertisement in the local telephone directory to generate sales, but
because sales are particularly slow during the fall and winter months, he
has hired you as his first salesperson. Your earnings will come solely
from commissions. How will you prospect for potential customers?
 The Selling Process
If salespeople follow the steps shown below, their chances of success are far better.

1. Prospecting & 4.Discovering &

2.Pre-approach 3.Approach
Qualifying Understanding

7.Closing the 6.Handling 5.Sales Presentation

8. Follow-up Sale & Demonstration
Objections

• The sequence of above steps may change to meet the sales situation in hand.
• All kinds of selling do not necessarily pass through the eight steps of the selling
process shown above.
 Prospecting
Prospecting is identifying prospective or potential customers for the company’s
products/services.
Methods for identifying sales leads or leads (i.e. names and addresses of prospects)
are: (1) consulting existing customers, (2) The company sources (website, ads.,
tradeshows, phones), (3) external sources (suppliers, intermediaries, trade associations),
(4) salespersons’ networking, (5) publications like industrial directories, (6) cold
canvassing, (7) standard industrial classification (SIC) system. (8) world wide web’s
(WWW’s) search engines.
.
Qualifying
Companies qualify sales leads to prospects by contacting them by e-mails or on
phone to find their (i) interests (or needs), (ii) financial capacity, and
(iii) ability to make a decision.
After qualifying, the sales leads are categorized as: Hot, Warm, or Cold prospects
Process of Prospecting and Qualifying

Start with leads/probable prospects (using

methods for identifying sales leads).
From leads to qualified prospects (using
need, decision making, affordability criteria).
Identify hot prospects ( criteria : sound
finance, likely to buy).

Convert hot prospects to

customers (purchased the
company’s products / services).

Sales Funnel
Successful salespeople always keep the sales funnel full.
During a sales call with a potential client, the client, after being told about the
benefits of your product, states that he is happy with the competitor's product
and it gives the same benefits as yours. What can be said about the attitude of
the customer in this case?
A. Objection
B. Indifference
C. Skepticism
D. Acceptance
 Pre–Approach
Before approaching a prospect , a salesperson performs two tasks (1)
information gathering ,(2) planning the sales call.
Information Gathering
Salespeople collect the prospective customers’ information like location, type
of business, purchase orientation and practices, & so on.
Sources of information include the Internet, trade magazines, industrial
directories, online information services, etc
Planning the Sales Call
Whom to see?
Where to go?
What are the call objectives?
How to approach the prospect?
 Approac
h
Make an appointment to meet the prospect.
Make a favorable first impression.

Which of the following ‘approach techniques’ to be used?

• Introductory.
• Customer benefit statement.
• Product.
The purpose of approach is to gain the prospect’s agreement to move forward to the next step.
 Discovering & Understanding Buyers’ Needs
Customers buy products/ services to satisfy their needs or to solve their
problems.
Salespeople uncover & know buyers’ needs by asking questions.
Research based ‘SPIN Model’ suggests four types of questions :
(1) Situational questions –to know buyer’s current situation
(2) Problem questions-to discover problems or dissatisfaction experienced
by the buyer.
(3) Implication questions-to find implications or consequences of not
solving the problem.
(4) Need-payoff questions- to know the value or importance of the solution
to the problem. The purpose is to develop the buyer’s desire for a solution.
 Sales Presentation Methods

The Objective of sales presentation is to persuade the customer that the

company’s product/service being sold will meet his / her needs better than
that of competitors.

Salespeople can choose from the following sales presentation methods:

(1) Stimulus Response Method/Canned Approach

• It is a memorized sales talk or a prepared sales presentation.
• The salesperson talks without knowing the prospect’s needs
• This method is used by telemarketing people, door-to-door
salespersons, and for training new salespeople with some changes.
 (2) Formula Method / Formulated Approach.
• This method is also based on stimulus response thinking. Salesperson
assumes that buyers can be led through mental steps by using a well-
known formula – AIDA (attention, interest, desire, and action). However,
the AIDA model is now changed, as seen below :

From To

A. Attention Rapport
I. Interest Need
D. Desire Solution
A. Action Close
Which method would you recommend for selling washing machine?
 Sales Presentation Methods (Continued)
(3) Need – Satisfaction Method
• It is an interactive sales presentation, a creative form of selling.
• Salesperson first uncovers prospect’s needs by asking questions and listening. He then makes a sales presentation
by using FAB approach: Features, Advantages, Benefits.
• It is an effective method, as it focuses on customers.

(4) Consultative Selling Method/Problem-Solving Approach

• Used as a professional selling process in the 21st century.
• Salespeople use cross-functional expertise.
• Firms adopt team selling approach.
• Sales team work in a collaborative/partnering relationship with the buying firm.
• Used by software / consulting firms.
 Demonstrating the Product

Sales presentation can be improved by demonstration.

Demonstration is one of the important selling tools.
Examples : Test drive of cars; demonstrations of industrial products in use at
trade shows.
Benefits of using demonstration for selling are:
• Buyers’ objections are cleared.
• Improves the buyer’s purchasing interest.
• Helps to find specific benefits needed by the prospect.
• The prospect can experience the benefits.
 Handling Objections

Objections from prospective customers may take place during presentations /

when the order is asked. If objections are handled satisfactorily, they may
result in sales.
Two types of sales objections happen :
• Psychological / hidden objections
• Logical, real or practical objections
Methods used for handling objections:
(i) For Psychological objections: ask questions to clarify the customer’s
thinking.
(ii) For logical objections: (a) ask questions, (b) turn an objection into a
benefit, (c) deny objections tactfully, (d) show third-party certificates, (e)
offer compensation.
 Trial Close and Closing the
Sale
‘ Trial close ‘ checks the attitude or opinion of the prospect, before closing the
sale.
If the response to trial close question is favorable, then the salesperson should
close the sale ( i.e. ask for the order ). If not, go back to presentation.
Some of the major closing techniques are: (a) alternative-choice, (b) minor
points, (c) assumptive, (d) summary-of-benefits, (e) T-account, (f) special-offer,
(g) probability, and (h) negotiation
Closing techniques based on situations
 Follow-Up

Necessary for customer satisfaction and building

loyalty.
Successful salespeople follow-up in different ways:
• Check customer order.
• Visit when the product is delivered.
• Build long-term relationship.
• Carry out account penetration.
 Success Factors in Selling

For success in selling, a salesperson should possess certain characteristics and

develop a set of skills.
Characteristics of an Effective Salesperson
Burning desire .
Cooperativeness.
Empathy.
Positive attitude.
Discipline.
Technology savvy.

Set of Necessary Skills

Communication skills.
Listening skills.
Negotiation skills.
Communication Skills
These are required for salespeople and sales managers.
Communication is transmission of verbal & non-verbal information between a salesperson and a buyer.
Non-verbal communications include eye contact, posture, gestures, facial expression, and overall grooming.
For effective verbal communication, a salesperson’s tone should be pleasant with moderate pace of speech,
using positive and layman’s language.

Listening Skills
Listening is more important than talking.
Effective salespeople listen very attentively and actively to what is said and unsaid.
Successful companies send their salespeople to the training programs which give importance to listening and
speaking.
 Negotiation Skills

Salespeople need negotiating skills

Negotiations are needed under the following circumstances :
(a) When the buyer puts certain conditions for buying to the seller, (b) When agreement between the buyer and the
seller is needed on several factors, (c) When the product is customized, and (d) When the final price is to be decided.

Steps needed to prepare for negotiation with customers:

(a) planning, (b) building relationship, and (c) knowing the purpose.

Styles of Negotiation
(a) I win, you lose, (b) Both of us win (or win-win style), (c) You win, I lose, and (d) Both of us lose.
Homework

Visit the website of sales and marketing management

www.salesandmarketing.com and make a report on current issues of
importance to sales management.
Room No. 305, Block-14 Mittal School
of Business