SDM@Suryadatta : Unit 1

Personal Selling
 Psychology in Selling
• Some prospects buy their products and/or
services after the sales presentation, some do
not.
• Stimulus (sales presentation)=>Buyer’s decision
making process => Response (B, NoB)
• Psychological factors of buyer or consumer
behaviour
– Attitudes
– Perceptions
– Motivations
– Personality of buyers
 Buyers
• Consumer Markets
– Individual and Household Consumers
– Buying decision based on 5 mental stages of the buying process
• Problem (or need) recognition
– Psycological desire for prestige leads to owning a Skoda car
– Thirst (coke)
– Hunger (ccokies)
• Information search/collection
– Low involvement less investment in time and money
» Bread, butter, biscuits
– High involvement more investment in time and money
» Home, automobile, insurance
• Evaluation of alternatives (see next slide)
– Brand beliefs…relevance of attributes of product
• Purchase decision (see slide)
• Post-purchase behaviour
• Business (or Industrial) Buyers
– {business schools have a separate course Industrial Marketing and
Procurement}
– B2B business to business
 Evaluation of Alternatives
• FACTORS
– Consumer tries to satisfy a need or solve a problem
– Consumer looking for certain advantages or benefits
from product or service
– Consumer knows that each alternative product or
brand has a set of characteristics or attributes that try
to satisfy his/her need
– The importance and relevance of attributes vary from
product to product
• Different consumers give varying importance to
these characteristics
 Brand/Supplier Evaluation System
example
• Attribute (or characteristics) for tyres
– Price
– Quality
– Safety
– Life
• Weight (importance)
– (30, 25, 25, 20) totals 100
• Brand/Supplier beliefs
– (0.8, 0.6, 0.6, 0.5)
 Purchase decision
• In the evaluation stage the consumer forms
preferences among the brands
– And also an intention to buy the most preferred
brand
• The intentions can be changed by
– “attitude of others”….relatives, friends, boss,
published reviews, chat rooms
– “unanticipated situational factors”
• Financial problem, health related problem, other
product purchase decisions becoming more urgent
 High involvement product purchase
decisions
• Which brand to purchase
– Brand decision
• Timing of purchase
• How much quantity
• From which retailer or dealer to buy
• How to make the payment
 Post-purchase behaviour
• If customer delighted
– High probability of purchasing the product or the
brand again
• Dissatisfied customers
– May return the product
– Stop buying
– Tell friends and relatives
– Take a legal action
– Complain to the company
 Buying situations for household and
individual consumers
• Routine decision-making
• Limited decision-making
• Extensive decision-making
 Buying situations for business buyers
• New purchase
– Or new task
• Change in supplier
– Or modified rebuy
• Repeat purchase
– Or straight rebuy
 Effective Communication
• Get feedback to uncover buyer needs by asking relevant
questions
• Empathise with the buyer’s feelings, ideas, and situation
• Build a relationship based on mutual trust with the
customer
• Use the selling philosophy of keep it simple, salesperson
• Listen carefully to the prospect’s words, feelings and
thoughts (and talk less)
• Enthusiasm towards the sales job and customer’s business
• Use proof stts from objective sources to add credibility to
sales message.
 Sales knowledge and sales related
marketing policies
• Company knowledge
• Product knowledge
• Customers and competitors knowledge
– Useful during negotiations
– Also while dealing with prospect’s objections
• Sales-related marketing policies
– Pricing
– Distribution
– Promotional
– Product
• Product mix (assortment)
• New product ideas
• Product info, quality, and service policy
 Personal selling process

• Prospecting and qualifying the sales lead

– Needs and also has ability to buy
• Preapproach (precall planning)
• Approach
• Presentation and demonstration
• Overcoming objections
• Trial close/ Closing the sale
• Follow-up and service
Prospecting/lead generating methods
• Referrals from existing customers
• Referrals from internal company sources
– Advertising, direct mail, website, trade shows,
teleprospecting activities
• Referrals from external sources
– Suppliers, intermediaries, bankers,trade associations,
commercial dotcom vendors
• Networking by salespersons
• Industrial directories
• Cold canvassing
– Costly and time consuming!!!