Selling Processes

Dr. Sanjeev Prashar

 The Sales Process
Eight basic steps of the Sales Process:
1. Prospecting
2. The pre-approach
3. The approach
4. Need identification
5. Presentation
6. Handling objections
7. Gaining commitment
8. Follow up
 Prospecting
• Qualified Sales leads- potential customers who have a
need for the salesperson’s product, the financial means to
purchase the product, and the authority to make the buying
decision.
• Referrals- obtained by the salesperson asking current
customers if they know someone else who might need the
product.
 Pre-approach and Planning

• The pre-approach is the collection of information about the

potential customer and the customer’s company prior to
the initial visit.
 Approaching the Client

• The approach is the development of rapport with the

customer
• Four basic social style categories
1. The driver
2. The analytical
3. The expressive
4. The amiable
 Identifying Client Needs
Through Probing Questions
• Success at the need-identification stage of the sales process
requires asking probing questions of the prospective
customer to determine needs.
– Organizational needs
– Personal needs
 Presenting the Product

• The presentation should be adapted to address the specific

customer needs.
• Features versus Benefits
• Types of Presentations
– Flexible (need-satisfaction) Presentation
– Memorized (canned) Presentation
 Handling Objections

• When faced with objections, the salesperson should

approach the objection as a sign of interest on the part of
the prospect, and provide information that will ensure the
prospect’s confidence in making the purchase.
 Gaining Commitment

• Commitment is gained when the prospect

agrees to take the action sought by the
salesperson.
• The salesperson must ask for the order.
 Following Up and Keeping
Promises
• Follow-up requires that the salesperson
complete any agreed upon actions.
• Salespeople should stay in touch after a sale
to ensure that the customers are still happy
with their purchase decisions.
In Short
THE SALES PROCESS
Personal
Personal Selling
Selling Process
Process
 The Sales Process
• Prospecting: personal-
selling function of
identifying potential
customers
• Qualifying: determining
that a prospect has the
needs, income, and purchase
Prospecting
Prospecting authority necessary for
and
and
Qualifying being a potential customer
Qualifying
 The Sales Process

• Approach: salesperson’s initial contact

with a prospective customer
• Precall Planning: use of information
collected during the prospecting and
Approach
Approach qualifying stages of the sales process
and during previous contacts with the
prospect to tailor the approach and
presentation to match the customer’s
needs
 The Sales Process

Presentation
Presentation
• Presentation:
describing a product’s
major features and
relating them to a
customer’s problems or
needs
 The Sales Process
Demon-
Demon-
stration
stration

• A demonstration allows the

customer to experience a
good or service
• Even ads as well done as the
one on the following slide
can not substitute for an
effective demonstration ride
in a new automobile
The Sales Process
Handling
Handling
Objections
Objections

• Objections: expressions of sales resistance

by the prospect
• Example: A customer’s “I don't like the
color” is probably their way of asking what
other colors are available
• Objections are reasonable and professional
salespeople are prepared to handle them
appropriately
 The Sales Process
Closing
Closing

• Closing: stages of personal selling

where the salesperson asks the
customer to make a purchase
decision
• Nearly 80% of salespeople fail to
close when the buyer is ready
The Sales Process
Follow-up
Follow-up

• Follow-up: post-sales activities that

often determine whether an individual
who has made a recent purchase will
become a repeat customer
• Follow-up helps build mutually
beneficial long-term relationships
 Other functions of Sales Process
• Finding customers
• Preparing
• Relationship building
• Product offering
• Offer clarification
• Securing the purchase
• Maintaining the relationship
 Relationship Building
• Making a favorable impression and gaining
trust of potential customer
– Time required varies by culture
• Number of ways to meet client:
– Guaranteed introduction
– Referral introduction
– Personal introduction
– Benefit introduction
 Relationship Building
• Should know appropriate greeting and
phrases in customer’s language
– Business cards in English and customer’s
language
– Business cards have taken the place of personal
introductions in Japan
 What is a Buying Center?
• One or more people in the B2B customer
firm that play different, but important, roles
in the buying process. They include:
– Initiators
– Users
– Influencers
– Buyer
– Gatekeeper
– Salesperson must identify and interact correctly
with each group of clients playing specific roles
 Product Offering
• Salesperson must select an appropriate method to
offer the product to the client
• This step normally includes one or more of the
following styles:
– Stimulus response
– Mental States
– Need satisfaction
– Problem solving
– Consultative selling
 Stimulus Response
• Salesperson provides appropriate stimulus
through words and actions that will derive
desired response
– Utilized with canned sales presentations
– Seen with low involvement products
– Purchaser involvement limited
– Often not flexible
– Used for one-time interactions
 Mental States
• Salesperson attempts to move customer
through the purchase stages (attention,
interest, desire, action)
– Presentation must be well-planned
– Limited purchaser involvement
– Hard to know what stage customer is in
– Difficult when used across cultures
– Not well received by professional purchasers
 Selling Approaches
• Need satisfaction – meets and asks questions in an
effort to identify and satisfy a customer need
– Focuses on customer’s need(s)
• Problem solving – extension of Need Satisfaction
that includes study or team of experts
• Consultative selling – salesperson functions as a
consultant and may even recommend a
competitor’s product that best satisfies customer
need(s)
 Buyer-Seller Meeting
• Meet with customer at appointed time
– Punctuality more important in some cultures
– Make favorable impression
• Sharing information through small talk
• Presenting gifts
• Begin meeting by restating last communication as
understood
– Insure customer’s goals understood
– No slick presentations
– Explain how the solution solves goals and needs
 Offer Clarification
• Once presentation finished, expect
questions
– Clarify offer or ask for price concessions
– Remember that negotiations take place during
the entire process
– May request test data or testimonials from
satisfied customer
– View this step as normal negotiations
 Securing the Purchase
• Simply asking the customer to purchase
– Difficult to manipulate buyer into purchase
– This is especially true in B2B interactions
• Best approach is the direct one
– Since our product addresses your need(s), shall
we agree to the purchase?
– Some countries, like China, seller may await
the buyer to raise issue of purchase
 Maintaining the Relationship
• Final, but very important step in sales
process
– Satisfied customers purchase again and again
– Customer wants supplier they can trust and who
will be there when problems arise
– Customer satisfaction very important in Japan
– B2B firms track customer satisfaction levels
– Salesperson must have authority to keep
customer satisfied
 Ethical Considerations
• Personal selling generates buyer complaints
– Salespersons believed to have low ethical
standards
– Some firms operate from a selling orientation
– Most complaints attributable to management
• Setting unrealistic sales goals/quotas
• Rewarding for sale even when questionable
behavior is involved
 Role of Salesperson
• That of a boundary spanner
– Must bring buyer and seller together
– Initial positions often far apart
• Seller wants: highest price, standard product,
longest delivery, and no service
• Buyer wants: lowest price, custom product,
shortest delivery, and service contract
• Salesperson must mediate
 Role Conflict
• Salesperson experiences role conflict when
two or more parties want her to comply
with their expectations
– Each party can reward or punish salesperson
• Sales manager can give or withhold raise
• Customer can order or withhold purchase
• Family can give or withhold love, approval
• Salesperson must attempt to satisfy
concerns of all parties – not an easy task!
 Summary
• The sales process is completed
– Approach must be modified based upon culture
of buyer
– No “tricks” to selling; just hard work!
• Salesperson may be viewed as being less
than ethical because of role played
• Role conflict can occur in B2B sales
• Ethical behavior always the best approach