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9 SALES AND DISTRIBUTION MANAGEMENT L E S S O N 5 : SELLING PROCESS L e a r n i n g O b j e c t i v e s On completion of this lesson,you should be able to Understand the selling process in sales management Role of salesperson in selling process Meaning of prospecting Salespersons Influence Process The process by which the salesperson influences the buyer isexplainable in term of the equation B =P xd x k x v. Thesalesperson influences P (predisposition) directly, for example,through interacting with the buyer in ways rewarding to thebuyer. The greatest effect on P , however, comes from using

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theproduct. The salesperson exerts influencethrough D (amountof motivation), this influence being strong when the buyerseeks information in terms of informational cues. If the endsto be served are not clearly defined, by helping to clarify these,the buyers goals, the salesperson again exerts influence through D. When the buyer has stopped learning-when the buyersbuying behavior becomes automatic- the salesperson influences D by providing triggering cues. When the buyer has narroweddown the choices to a few sellers, the salesperson, by communi-cating the merits of the merits of the company brand, can causeit to appear relatively better, and thus affect K (its potentialsatisfaction for the buyer). Finally, the salesperson can very theintensity of his or her effort, so making the difference in V (theintensity of all cues). Salespersons Role in Reducing Buyer Dissonance According to Festingers theory of cognitive dissonance, whenindividuals choose between two or more alternatives, anxiety ordissonance will almost always occur because the decision hasunattractive as well as attractive features. After decisions, peopleexpose themselves to information that they perceive as likely tosupport their choice, and to avoid information likely to favorrejected alternatives.Although Festinger evidently meant his theory to apply only topost decision anxiety, it seems reasonable that it should holdfor predecision anxiety. Hunk, for instance, writes that a buyermay panic on reaching the point of decision and rush into thepurchase as an escape from the problem or put it off because of the

difficulty of deciding. It seems, then, that a buyer canexperience either prodecision or postdecision dissonance, orb o t h . Reducing pre-and post decision anxiety or dissonance is animportant function of the salesperson. Recognizing that thebuyers dissonance varies both according to whether the productis an established or a new one, and whether the salesperson-client relation is ongoing or new, these are four types of casesinvolving the salespersons role. 1.An established product-an ongoing salespersonc l i e n t relationship. Unless the market is unstable, the buyertends toward automatic response behavior, in which nolearning is involved and thus experiences little, if any,dissonance; but insofar as it does occur, the salesperson iseffective because the salesperson is trusted by the buyer. 2 . A n e s t a b l i s h e d p r o d u c t - a n e w s a l e s p e r s o n - c l i e n t relationship. The salesperson, being new, is less effectivein reducing dissonance. 3 . A n e w p r o d u c t - a n d o n g o i n g s a l e s p e r s o n - c l i e n t relationship. Unless the buyer generalizes from personalexperience with an established similar product, the buyerexperiences dissonance, especially if it is an importantproduct. Because of the established relationship with thebuyer, the salesperson can reduce dissonance. 4.A new product-a new salesperson-client relationship. The buyer needs dissonance reduction, and the salespersonis less capable of providing it.How can a salesperson facilitate the buyers dissonance reduc-tion? Two ways are (1) to emphasize the advantages of theproduct purchased, while stressing the disadvantages of theforgone alternatives, and (2) to show that many characteristicsof the chosen item are similar to products the buyer hasforgone, but which are approved by the reference groups. Inother words, the buyer experiencing cognitive dissonance needsreassuring that the decision is or was a wise one; the salespersonprovides information that permits the buyer to renationalizethe decision Prospecting Efficient organization of time and through planning of work are earmarks of above-average salespersons. They look forways to stretch productive selling time. They arrange traveland call schedules to economize on time spent enroute anddistance travelled. They make appointments to avoid pro-longed waiting for callbacks. They do not waste time trying tosell to people who cannot buy or are not likely to do so. Theplanning work, which is essential in eliminating calls on nobuyers, is called prospecting.Improvement in prospecting is one way to stretch productiveselling time. Many sales personnel devote too little time toprospecting and, as a consequence, too much to calling onnonprospects. Salespersons who are proficient in prospectingapply their selling efforts productively; they do not call onnonprospects and can devote their full attention to those likelyto buy.Some companies use specialized personnel for prospecting, butmost regard it as one of the salespersons they often have accessto information on likely prospects that is not available to centraloffice personnel. Step in Prospecting The steps in prospecting are (1) formulating prospect defini-tions, (2) searching out potential accounts, (3) qualifyingprospects and determining probable requirements, and (4) 1 0 1 1 . 2 3 . CopyRight:RaiUniversity SALES AND DISTRIBUTION MANAGEMENT relating company products to each prospects requirements. Formulating Prospect Definitions

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Prospective customers must have the willingness, the financialcapacity, and the authority to buy, and they must be available tothe salesperson. Salespersons waste time when they attempt tosell individuals who have neither need for the product ormoney to pay for it. Salespersons waste time if they try to sellto the wrong persons; so it is important to ascertain whichpersons in each firm Have the authority to buy. Althoughindividuals may qualify as prospects in other respects, they maybe inaccessible to the salesperson. The president of a largecorporation, for example, may need insurance and be willingand able to pay for it, but a particular salesperson may have noway to make the contact.In addition to meeting the stated requirements, there is otherrequirementUnique to each companys customers. Starting with data on theprofitability of present accounts, any characteristics typical of profitable accounts but not shared by unprofitable accountsshould be detected. These identifying characteristics ideallyshouldbe ones recognizable from information appearing indirectories or lists. Prospects in many businesses and profes-sions, for instance, are readily indentified from classified listingsin telephone and city directories. Key characteristics that identifyprofitable accounts are assembled into descriptions of thevarious classes of customers, and these are the prospectdefinations. Searching Out Potential Accounts Using the prospect definations, the salesperson combs differentsources for the names of probable prospects, or suspect, asthey are called. Sources of prospect information includedirectories of all kinds, news and notes in trade papers andbusiness magazines, credit reports, membership lists of chambers of commerce and trade and manufacturers associa-tions, lists purchased from list brokers, and records or servicerequests. Other sources are responses to company advertising,sales personnel of no competing firms calling on the samegeneral classes of trade, conventions and meetings, bankers andother centers of influence and the salespersons ownobservations. Salespeople selling services, insurance, forexample, uncover prospects among their acquaintances;members of their professional, religious, and social organiza-tions; and the referrals of friends. Another source of prospectsis the endless chain satisfied customers suggest, voluntarilyor on request, other leads to the salesperson who served them. Qualifying prospects and Determining ProbableRequirements As information is assembled on each tentative prospect(i.e.suspect), it is easier to estimate the probable requirementsof each for types of products sold by the company. Prospectswith requirements of each for the types of products sold by thecompany. Prospects with requirements too small to representprofitable business are removed from further considered, unlesstheir growth possibilities show promise. Even after tapping allreadily available information sources, additional informationoften is required to qualify certain prospects, and personal visitsby salespersons may be the only way to obtain it. These visitsmay not bring in sales, but they save time, as prospects areseparated from nonprospects. Relating Company Products to Each ProspectsRequirements The final step is to plan the stratify for approaching eachprospect. From the information assembled, it is usuallypossible to determine each prospects probable needs. Fromwhat the salesperson knows about the companys productneeds. From what the salesperson knows about the companysproducts, their uses, and applications, he or she selects thosethat seem most appropriate for a particular prospect.The salespersons presentation is now easy to construct, and it istailored to fit the prospect. The salesperson should have clearideas about specific abjections the prospect may raise and otherobstacles to the sale that may be encountered. The salespersonsready to contact the prospect, the only tasks remaining aremaking an appoi8ntment, deciding how to open the presenta-tion, and determining how to persuade the prospect to becomea customer. Conclusion

In this lesson,we studied the selling process and the role asalesperson performs in the same.The role of salespperson isvery crucial if the organization wants its selling process toconform to its objectives.Prospecting emphasizes on selling thegoods to a limited number of people instead of wasting timeon those consumers who are least interested in the product. Questions 1.What role does a salesperson plays in the selling process?2.What is prospecting and discuss the different steps inprospecting?3.Why prospevting is important in the selling process? N o t e s :