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SDM-Ch.2 1
Psychology in Selling
SDM-Ch.2 2
Buying Process of Consumers and Business Buyers
Five stage model for household Eight stage model for business
customers buyers
1. Problem / need recognition 1. Problem / need recognition
2. Characteristics and quantity
determination
3. Specification development
2. Information search / collection 4. Supplier search and qualification
5. Obtain and analyse supplier
proposals
3. Evaluate alternatives 6. Evaluation and selection of
suppliers
4. Purchase decision 7. Selection of purchase order routine
5. Post purchase behaviour 8. Performance feedback and post-
purchase evaluation
SDM-Ch.2 3
Buying Situations Faced By
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
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
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
Preapproach
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
Approach
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
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)
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
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
SDM-Ch.2 18
Negotiation
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