Learning

Objectives
To understand psychology in selling, buying
decision process and buying situations
To learn communication skills, sales knowledge,
and sales related marketing policies
To understand personal selling process
To learn about negotiation

SDM-Ch.2 1
 Psychology in
Selling
Stimulus Buyers decision Response
(Sales Presentation) making process (buy or no buy)

If a sales person makes a presentation, the

prospect may or may not buy
The above buyer behaviour model does not tell
us the reasons of buying or not buying
To understand the psychological aspects of
selling or buying, salespeople should study
consumer or buyer behaviour, including buying
process and situations

SDM-Ch.2 2
Buying Process of Consumers and Business Buyers
Five stage model for household
customers
1. Problem / need recognition
2. Information search / collection
3. Evaluate alternatives
4. Purchase decision
5. Post purchase behaviour
SDM-Ch.2
Eight stage model for business
buyers
1. Problem / need recognition
2. Characteristics and quantity
determination
3. Specification development
4. Supplier search and qualification
5. Obtain and analyse supplier
proposals
6. Evaluation and selection of
suppliers
7. Selection of purchase order routine
8. Performance feedback and post-
purchase evaluation
3
 Buying Situations Faced By

Household customers Business Buyers

Routine decision-making New task / New purchase

Limited decision-making Modified rebuy / change in

supplier
Extensive decision-making Straight rebuy / Repeat purchase

Buying process and situations differ for household

consumers and business buyers.
Consumers / Buyers may skip or reverse some stages in
buying process. E.G. A consumer buying toothpaste

SDM-Ch.2 4
 Knowledge of Sales and Sales-related
Marketing Policies
Sales Knowledge Marketing Policies
Company knowledge Pricing and Payment policies
Product knowledge Product policies
Customer knowledge Distribution policies
Competitor knowledge Promotional policies

Major reasons for giving above information / knowledge

through training programmes to salespeople are:
increase their self-confidence
Meet customers expectations
Increase sales
Overcome competition

SDM-Ch.2 5
 The Sales Process
As a part of selling activities, if salespeople follow the steps
or phases shown below, their chances of success are far
better.
Prospecting & Preapproach / Presentation &
Qualifying Approach
Precall planning Demonstration

Follow-up & Trail close / Overcoming

Service Closing the sale Objections

The sequence of above steps may change to meet the

sales situation in hand.
Some of the above steps may not be applicable for selling
to the trade
We now discuss application of above steps to industrial
selling
SDM-Ch.2 6
 Prospecting
It is identifying or finding prospects i.e. prospective or
potential customers.
Methods of prospecting or sales lead generation are:
(1) referrals from existing customers, (2) company sources
(website, ads., tradeshow, teleprospecting), (3) external
sources (suppliers, intermediaries, trade associations), (4)
salespersons networking, (5) industrial directories, (6) cold
canvassing

Qualifying
Companies qualify sales leads by contacting them by mail
or phone to find their interests (or needs) and financial
capacity.
Leads are categorized as: Hot, Warm, and Cool

SDM-Ch.2 7
 Preapproac
h
Information gathering about the prospect.
Sources of information: the Internet, industrial
directories, government publications,
intermediaries, etc.
Precall planning
Setting call objectives
Tentative planning of sales strategy: which
products, features and benefits may meet the
customer needs

SDM-Ch.2 8
 Approac
h
Make an appointment to meet the prospect
Make favourable first impression
Select an approach technique:
Introductory
Customer benefit
Product
Question
Praise
The approach takes a few minutes of a call, but
it can make or break a sale
SDM-Ch.2 9
 Presentation and
Demonstration
There are four components:
Understanding the buyers needs
Knowing sales presentation methods / strategies
Developing an effective presentation
Using demonstration as a tool for selling
We will examine each of the above points

SDM-Ch.2 10
 Understanding the buyers
needs
Firms and consumers buy products / services to
satisfy needs
To understand buyers needs, ask questions and
listen
In business situations, problem identification and
impact questions are important
E.G.
Have you experienced any problems on quality
and delivery from the existing supplies?
What impact the quality and delivery problems
will have on your costs and customer satisfaction?

SDM-Ch.2 11
 Knowing Sales Presentation Methods/Strategies
Firms have developed different methods / styles / strategies of sales
presentation
Stimulus response method / canned approach.
It is a memorised sales talk or a prepared sales presentation.
The sales person talks without knowing the prospects needs.
E.G. Used by tele-marketing people
Formula method / formulated approach.
It is also based on stimulus response thinking that all
prospects are similar.
The salesperson uses a standard formula AIDA (attention,
interest, desire, and action).
It is used if time is short and prospects are similar.
Shortcomings are: prospects needs are not uncovered and
uses same standard formula for different prospects.

SDM-Ch.2 12
 Sales Presentation Methods
(Continued)
Need satisfaction method
Interactive sales presentation
First find prospects needs, by asking questions and
listening
Use FAB approach: Features, Advantages, Benefits
Effective method, as it focuses on customers
Consultative selling method / Problem-solving
approach
Salespeople use cross-functional expertise
Firms adopt team selling approach
It is used by software / consulting firms

SDM-Ch.2 13
 Developing an Effective
Presentation
Some of the guidelines are:
Plan the sales call
Adopt presentation to the situation and person
Communicate the benefits of the purchase
Present relevant and limited information at a
time
Use the prospects language
Make the presentation convincing give
evidence
Use technology like multi-media presentation

SDM-Ch.2 14
 Using
Demonstration
Sales presentation can be improved by
demonstration
Demonstration is one of the important selling
tools EGs: Test drive of cars; demonstration of
industrial products in use
Benefits of using demonstration for selling are:
Buyers objections are cleared
Improves the buyers purchasing interest
Helps to find specific benefits of the prospect
The prospect can experience the benefit

SDM-Ch.2 15
 Overcoming Sales Objections /
Resistances
Objections take place during presentations /
when the order is asked
Two types of sales objections:
Psychological / hidden
Logical (real or practical)
Methods for handling and overcoming
objections: (a) ask questions, (b) turn an
objection into a benefit, (c) deny objections
tactfully, (d) third-party certificate, (e)
compensation

SDM-Ch.2 16
 Trial close and Closing the sale
Trial close checks the attitude or opinion of the
prospect, before closing the sale (or asking for
the order)
If the response to trial close question is
favourable, then the salesperson should close
the sale
Some of the techniques used for closing the
sale are: (a) alternative-choice, (b) minor points,
(c) assumptive, (d) summary-of-benefits, (e) T-
account, (f) special-offer, (g) probability, and (h)
negotiation
SDM-Ch.2 17
 Follow-up and
Service
Necessary for customer satisfaction
Successful salespeople follow-up in different
ways: For example,
Check order details
Follow through delivery schedule
Visit when the product is delivered
Build long-term relationship
Arrange warranty service

SDM-Ch.2 18
 Negotiatio
n
Salespeople, particularly in business to business selling,
need negotiating skills
When to negotiate?
(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 customised, (d) When the final price is to be
decided
How to prepare for negotiation?
(a) planning, (b) building relationship, (c) 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
SDM-Ch.2 19
 Key Learnings
For understanding psychology in selling, study
consumer or buyer behaviour, buying process and
situations
Salespeople are given knowledge of sales and relevant
marketing policies in order to increase their self-
confidence and sales, and meet customers
expectations
Typical steps in the sales process include prospecting
and qualifying, preapproach, approach, presentation
and demonstration, overcoming objections, trial close /
closing the sale, follow-up and service
Salespeople should know when to negotiate, how to
prepare for negotiation and which style of negotiation to
use
SDM-Ch.2 20