Types of selling

Scope and Importance of Personal Selling

In the US, 14 million people are employed in sales positions, according to the department of labor.
Sales personnel include stockbrokers, manufacturing sales representatives, real estate brokers etc.
Most students in this class will have been employed as a sales person.

Nature of Personal Selling

Gives marketers:

• The greatest freedom to adjust a message to satisfy customers informational needs, dynamic.
• Most precision, enabling marketers to focus on most promising leads. vs. advertising, publicity and sales promotion
• Give more information
• Two way flow of information, interactivity.
• Discover the strengths and weaknesses of new products and pass this information on to the marketing department.
• Highest cost. Businesses spend more on personal selling than on any other form of promotional mix.
• Goals range from
• finding prospects
• convincing prospects to buy
• keeping customers satisfied--help them pass the word along

Types of Sales Persons

• Order Takers

  Seek repeat sales, make certain that customers have sufficient product quantities where and when they need it. Do not require extensive sales effort. Arrange displays, restocks them, answer phone calls. Low compensation, little training required. High turnover of personnel. 2 types:
  • Inside Order Takers receive orders by mail/phone, sales person in a retail store.
  • Field Order Takers travel to customers. Use laptop computers to improve tracking of inventory and orders etc.

• Order Getters

  Sell to new customers and increase sales to present customers, sometimes called creative selling.
  Generate customer leads, provide information, persuading customers and closing sales. Required for high priced, complex and/or new products. High pressure, requires expensive, time consuming training.

• Support Personnel

  Facilitate the selling function. Primarily business to business products.
  • Missionary Salespeople Distribute information regarding new goods or services, describes attributes and leaves materials, does not close sales. Assist producers' customers in selling to their own customers. IE call on retailers and persuade them to carry the product. Pharmaceuticals may go to doctors offices and persuade them to carry their products.
  • Trade Salespeople May perform order taking function as well. Spend much time helping customers, especially retail stores, to promote the product. Restock the shelves, set up displays. Technical Salespersons Offer technical assistance to current customers. Usually trained engineers etc.
  • Service Salespeople interacts with customers after sale is complete.
  Team selling...entire team of selling professionals in selling to and servicing major customers, especially when specialized knowledge is needed to satisfy different interests in customers' buying centers.

Elements of the Personal Selling Process

No 2 salespersons use exactly the same sales method, but it is generally a seven step process:

1. Prospecting and Evaluating

   Seek names of prospects through sales records, referrals etc., also responses to advertisements. Need to evaluate if the person is able (Undergraduate degree to attend a graduate program), willing and authorized to buy. Blind prospecting-rely on phone directory etc

2. Preapproach (Preparing)

   Review key decision makers esp. for business to business, but also family
   • assess credit histories
   • prepare sales presentations
   • identify product needs.
   Helps present the presentation to meet the prospects needs.

3. Approaching the Customer

   Manner in which the sales person contacts the potential customer. First impression of the sales person is Lasting and therefore important.
   Strive to develop a relationship rather than just push the product.
   Can be based on referrals, cold calling or repeat contact.
   

4. Making the Presentation

   Need to attract and hold the prospects Attention to stimulate Interest and stir up Desire in the product so the potential customer takes the appropriate Action. AIDA
   Try to get the prospect to touch, hold or try the product. Must be able to change the presentation to meet the prospect needs.
   Three types of presentations:
   • Stimulus Response Format: Appropriate stimulus will initiate a buy decision, use one appeal after another hoping to hit the right button...Counter Clerk @ McDonald's "Would you like fries with your burger?"
   • Formula Selling Format: (Canned Sales Presentation) memorized, repetitive, given to all customers interested in a specific product.
     Good for inexperienced sales people.
     Better with heavily advertised items that are presold.
     Telemarketing a credit card!!
   • Need Satisfaction Format: Based on the principal that each customer has a different set of needs/desires., therefore the sales presentation should be adapted to the individual customer's needs, this is a key advantage of personal selling vs. advertising.
     Sales person asks questions first, then makes the presentation accordingly.
     Need to do homework, listen well and allow customers to talk etc.
     Must answer two types of questions:
     • for more information
     • overcome objections.

   Overcoming Objections

   Seek out objections and address them.
   Anticipate and counter them before the prospect can raise them.
   Try to avoid bringing up objections that the prospect would not have raised.
   Price objection is the most common
   Need to provide customers with reasons for the $s, build up the value before price is mentioned
   Must be convinced of price in own mind before you can sell to customer.
   Get budget info. on buyer before you try to sell, and must know what they want, must sell service on top of product augmented product--to create value!!
   Must know value of product, provide warranties etc.!!

5. Closing

   Ask prospect to buy product/products. Use trial closes, IE ask about financial terms, preferred method of delivery.
   20% sales people generally close 80% sales., Avon, over 1/2 US $1.4 bn business from 17% of 415,000 SRs.
   Need to be prepared to close at any time. The following are popular closing techniques:
   • Trial Close (Minor decision close)
   • Assumptive close (Implied consent close)
   • Urgency close
   • Ask for the sale close
   If prospect says no, they may just need more reasons to buy!!

6. Following Up

   Must follow up sale, determine if the order was delivered on time, installation OK etc. Also helps determine the prospects future needs. Accomplishes four objectives:
   • customer gain short term satisfaction
   • referrals are stimulated
   • in the long run, repurchase
   • prevent cognitive dissonance
   Old school, sell and leave!!--Quickly before customer changes her mind!!
   Now:
   • Stay a few minutes after sale--reinforce, make them feel good, made wise choice, leave small gift (with co. name on it!!), call office at any time etc!!
   • Follow up, reinforce, know birthdays, new year etc, friendly correspondence...relationship building!!

   Handout...Toyota Calling In Japan's Car Market

   Half of cars are sold door-to-door. This is shrinking due to environmental changes. Toyota has more than 100,000 door-to-door sales people.
   Developing Long-term relationships is key, Keiretsu, do business with only those you know and trust. Face-to-face meetings before business to establish trust, the approach stage.
   Follow up is key to relationship:
   After sales:
   • call inquiring on car's immediate performance
   • hand written greeting cards
   • written invitations for low cost oil changes
   Prospecting includes:
   • Driving schools for people to obtain licenses = prospects
   • Also referrals from existing customers is very important
   • Curtesy calls to clients who referred new customers.
   Timing of presentation:
   • To housewife in the middle of the day
   • Just before 3 year "Shaken", following 2 years
   "At first I had no intention of buying a new car, but Mr. Saito is very good at proposing reasons why I should change" = $1,600 shaken.
   
   

   Management of Salesforce

   Sales force is directly responsible for generating sales revenue.
   Eight general management areas:

1. Establish Salesforce objectives

   Similar to other promotional objectives
   Demand oriented or image oriented.
   Major objective is persuasion, converting consumer interest into sales.
   Sales objectives; expected to accomplish within a certain period of time.
   Give direction and purpose and act as a standard for evaluation.
   Set for total salesforce and each individual salesperson.
   Can be $s, units sold, market share to achieve, for individual salespersons, also include ave. order size, ave. # of sales/time period, and ratio orders/calls.
   

2. Organizing the Salesforce

   • In-house vs. independent agents (manufacturer's sales agents).
   • Organize by:
     • Geography (simplest, but not suitable if product(s) are complex or customers require specialized knowledge)
     • Customer: Different buyers have different needs
     • Product: Specific knowledge re: products is needed
   • Size. Marginal analysis, or determine how many sales calls/year are needed for an organization to effectively serve its customers and divide this total by the average # of sales calls that a person makes annually. Also use subjective judgement.
     MBNA estimates how many calls to expect, one year in advance, and then determines the size of the salesforce at any given time.

3. Recruiting and Selecting Salespeople

   Need to establish a set of required qualifications before beginning to recruit. Prepare a job description that lists specific tasks the salesperson should perform and analyze traits of the successful salespeople within the organization.
   May use assessment centers--intense training environment that places candidates in realistic problem settings in which they give priorities to their activities, make and act on decisions.
   Recruitment should be a continual activity aimed at reaching the best applicants.
   Applicants that most match the demographics of the target market. Changing demographics, may be wise to hire hispanic sales people if your territory is in Florida!!
   

4. Training Sales Personnel

   Use formal programs, or Informal on-the-job training. Can be complex or simple.
   Training should focus on:
   • the company
   • products
   • selling techniques.
   Aimed at new hires and experienced personnel.
   Can be held in the field, educational institutions or company facilities.
   Oldsmobile spent $25 million last year to teach its dealers how to better treat its customers.
   

5. Compensating Sales People

   To attract, motivate and retain sales people, that facilitate and encourage good treatment of the customers. Need to understand personalities of sales people. Strive for proper balance of freedom, income and incentives.
   Need to determine the best level of compensation required, and the best method of calculating it.
   • Straight salary
   • straight commission (selling insurance)--single percentage of sales or sliding rate
   • Combination plan

6. Motivating Sales People

   Need a systematic approach, must also satisfy non-financial needs:
   • Job security
   • Working Conditions
   • Opportunities to succeed
   Sales contests increase sales.
   Symbolic awards--plaques, rings etc.
   Can also use negative motivational methods for under performers.
   Due to burn out--even the best need motivating!!
   Ongoing process...keep reps. hungry
   Need a motivational program.
   Spend time with reps, personal attention!!
   Take interest in them and the sales goals
   
   1. Compensation packet that rewards quality salesmanship and extra effort
   2. Recognition of extra effort of sales force
   3. Make sure SR feel important
   4. Keep SR informed of company activities
   5. Make certain reps. believe in the company
   6. Goals must be realistic and achievable and changeable
   7. Determine what they want and give it to them
   8. Controlling and Evaluating Salesforce performance
   Rely on information from call reports, customer feedback and invoices. Performance is determined by objectives. May compare with predetermined performance standards or with other sales people working under similar conditions

hello

good morning friends.today i am going to post a beutifull article by SHIV KHERA. before telling you the article ,i want to just give a brief introduction about mr. shiv khera.
Mr.shiv khera  is an U.S based indian author of self help books and activist .Born in a business family who used to have coal mines Kendua in Dhanbad, India. Soon after the nationalisation of coal mines by the Indian government, he had to search for his own living. In his early years he worked as a car washer, a life insurance agent, and a franchise operator before he became a motivational speaker. While working in the United states he was inspired by a lecture delivered by Norman vincent peale and followed his motivational teachings. Khera has written several books including  YOU CAN WIN.

Today's article is all about the leadership and the professionalism in ours. stating that  professionalism is a thing which matters a lot in our life as well in our living and country  which may be director indirectly.



16 years ago in Singapore I gave a taxi driver a business card to take me to a particular address.  At the last point he circled round the building.  His meter read 11$ but he took only 10.  I said Henry,  your meter reads 11$ how come you are taking only 10.  He said Sir,  I am  a taxi driver,  I am supposed to be bringing you straight to the destination.  Since I did not know the last spot,  I had to circle around the building.  Had I brought you straight here,  the meter would have read 10$.  Why should you be paying for my ignorance?  He said Sir, legally,  I can claim 11$ but ethically I am entitled to only 10.  He further added that Singapore is a tourist destination and many people come here for three or four days.  After clearing  the immigrations and customs,  the first experience is always with the taxi driver and if that is not good,  the balance three to four days are not pleasant either.  He said Sir I am not a taxi driver,  I am the Ambassador of Singapore without a diplomatic passport.  In my opinion he probably did not go to school beyond the 8^th grade,  but to me he was a professional.  To me his behavior reflected pride in performance and character.  That day I learnt that one needs more than professional qualification to be a professional

According to NAASCOM 90% of graduates are unemployed.  The same sentiment is shared by corporate leaders.  Holistic education has two components.

• One Teaches us how to make living
• The other Teaches us how to live.

One without the other is incomplete.  A professional leader is a leader who needs to manage a business needs to wear many hats.   He needs to be a team leader / team player,  a psychologist, an administrator, a visionary, a great sales person,  disciplined, competent, a great communicator, and most importantly is someone who takes ownership.

Team Leader / Team Player

A leader cannot succeed without a good team and there are no readymade teams.  Many a times you hear that the leader is good,  but his advisors are bad.  If  we were to look a little deeper into this we would understand this statement as not true.  The important question to ask here is who picks his advisors?  It’s always the leader.  We get advisors in life not the  kind of people we want but the kind of people we are.

A crooked Entrepreneur will have a crooked Attorney and a crooked accountant as advisors.  An honest entrepreneur will have an honest Attorney and an honest accountant as advisor.  One may temporarily get wrong advisors,  but in the long run it will not last because the comfort levels are missing.  Same is true with friends.  We get friends of the kind of people we are but not the kind of people we want.

Psychologist

A leader has to be an expert in dealing with all kind of emotions.  Humans are creatures of emotions and not logic.  And we all go through emotions of love, happiness, anger, fear and so on.  A leader keeps his team motivated and their morale high.

Administrator

A good administrator ensures smooth day to day functioning of the operations.  Ensuring that systems and reporting are maintained,  policies and procedures are followed etc.  are a mark of good administrator.  A good administrator must monitor processes at every level.  They set quality standards and benchmarks, inspect carefully and then expect positive results.

A Visionary

A visionary is a person who has the ability to see the invisible.  It is not problem solving,  but pre-empting and preventing  and if we can see the invisible,  we can achieve the impossible

A Great Sales Person

Anyone who sells a product, service or an idea is a Sales Person.  Based on this definition,  who is not selling? In fact a good leader is a great sales person to sell his ideas all the time.

Disciplined

Nothing in this world has ever been achieved without discipline.  Can an athlete be a athlete without discipline.  It is experienced that if we discipline ourselves,   other don’t have to and if we don’t,  others will discipline us. A leader recognizes that discipline  is a track to run on and that discipline gives freedom.

Competence

What is the difference between skill and competence?   Leaders not only have the Skill which is an ability, but also competence that is ability along with willingness and desire to do the job.  There are many skillful people who are totally incompetent and therefore are not Leaders.

Great Communicator

IT has increased the speed of communication tremendously.  No doubt,  but unless we know how to and what to communicate,  we will only mis-communicate a lot faster,  won’t we?  Improper communication leads to misunderstanding  and losses of millions of dollars per day.  A leader is a good communicator that  builds bridges and breaks barriers with his team.

Takes Ownership

Every person has a owner mentality or employee mentality.  A leader has the mentality of ownership and feeling of belonging. He takes charge,  accept responsibility,  and consider themselves self employed and the truth is they are self employed because if they don’t work for themselves,  who are they working for?  At the end of the month don’t they take their earnings at home? A person with an employee mentality will never accept responsibility and will always blame others  making excuses for their non performance. A person who accepts ownership,  their decision making and problem solving ability is much higher.

at the end i want to say thanx to all, plz tell me your invaluable suggesions that are always welcomed.

 HAVE A NICE DAY.

today i m posting about my current assignment by Dr.liaqat  for AFM
my topic is all about the ratio analysis on the financial statement of coca cola company.
a lot of wotk i have done  till now bt all the things  falls stop on the writing  or creatin g ratio's,
hah! what  an incredible things are developed by  our old generations to analysa any thing this ,
but that so typical formulae for this all

i am attending classes for a month but still am  unable to go with an ease,
thankx for any one who may or want to help me  to understand yhis typical relationships of finances

regards
gaggan.s

Hi
everybody today it is the very first time i am on this microblogging site ,yes i m feeling very happy and nervous too ,