Making the Presentation 5. Marketers establish booth at trade shows and exhibitions, get the names of the prospects from existing customers, cultivate referral sources such as – dealers, suppliers, sales representatives, executives, bankers etc. The information about the prospective customers relates to their buying habits, their tastes and preferences, their decision making process, behaviour pattern and personality traits. With this step in the process, sales representatives look for new customers that they can potentially sell their products to. 1.Discuss your personal selling experience in the job-search context, with a focus on two steps that … The steps of personal selling are also knows as the sales process or cycle. For example, if the salesperson learns which competitor currently supplies the prospect then the salesperson can tailor promotional material in a way that compares the seller’s products against products being purchased by the prospect. For instance, this can be done through the use of research reports, such as an evaluation of a company’s financial position using publicly available financial reporting services. Approaching the Consumer 3. Following Up. This is the first step of the personal selling process and involves developing a database of potential customers; names are sought from company sales records, trade shows, commercial databases, … A better approach for most salespeople is to contact a prospect to set up an appointment in advance of the sales meeting. Yet the most successful salespeople will say that closing the sale is actually fairly easy if the salesperson has worked hard in developing a relationship with the customer. In fact, for salespeople whose chief role is that of order getter, there is virtually no chance of being successful unless they can consistently generate sales leads. Likewise, you can use this step to ask for referrals. vi. The first step in the sales process is the fact that the sales person has to know every single details about the product he is trying to sale to consumer. This stage is very important as the decision to buy or not is made by the prospective customers is greatly influenced by this stage. TERM Summer '16; TAGS Marketing, Monopoly, Sales… Lack Financial Capacity – Just because someone has a need for a product does not mean they can afford it. This stage involves a virtual preparation of a database. 1. Indirect-identical method (also known as “yes but method or ‘sidestepping the question method), is most widely used method. Prospecting refers to locating potential customers. May Not Be Key Decision Maker – Prospects may lack the authority to approve the purchase. Copyright 2021 Leaf Group Ltd. / Leaf Group Media, All Rights Reserved. What type of approach would be suitable depends upon the salesman’s preferences, the product being sold, the firm’s resources, and the characteristics of the prospect. The main advantages of making appointments is that it gives the salesperson additional time to prepare for the meeting and also, in the course of discussing an appointment, the salesperson may have the opportunity to gain more information from the prospect. Because it is an indication the prospect is paying attention to the presentation and may even have an interest in the product if the resistance can be effectively addressed. The initial step of selling process starts with prospecting or searching for potential customers. It’s the salesperson who reaches out to customers in order to sell the product. While the basic five steps of the sales process are simple, your personal sales process … This is the stage during which the prospective customers are converted into actual customers. c. What products are currently being purchased? Salesperson handles such objections skillfully by clarifying their objections and convinces the customer to make purchase. Compensation method, which merely acknowledges the validity of an objection, but points out some advantage that is supposed to compensate for the objection, such as lower price, or special care of the product. There are many reasons for this including: i. Not all sales leads hold the potential for becoming sales prospects. The salesman should ensure that the delivery instructions given by the customer are properly followed. At this stage of the selling process the salesperson will spend a considerable amount of time presenting the product. For instance, salespeople may receive a list of sales leads based on inquiries through the company’s website. Generally, the following process is utilised in selling a product: Prospecting consists in developing a list of potential customers. Marketers search for prospects in directories, websites and contact through mail and telephone. With some information about the prospect in-hand, the salesperson must then move to make initial contact. Demonstration may also be given about the product so that the prospect gets more involved. ii. In this approach the intention is to not only contact the prospect but to also give a sales presentation during this first contact period. Customer may raise objection with regard to price, delivery schedule; product or company characteristics, etc. In some cases, a sales lead can be qualified by the seller prior to making first contact. Salespeople can attempt to gather this information through several sources including- corporate research reports, information on the prospect’s website, conversations with non-competitive salespeople who have dealt with the prospect, website forums where industry information is discussed, and by asking questions when setting up sales meetings. Closing the sale is the point when the seller asks the prospect to agree to make the purchase. Market Monitoring – Through this approach leads are obtained by monitoring media outlets, such as – news articles, internet forums and corporate press releases. After the objections have been removed, the only thing left to do is close the sale. Effective prospecting requires a … The sales rep should focus on the features and benefits of the product or service during this part of the process. The follow up is the last stage in the personal sales process. All prospects identified may not turn out to be actual customers. ii. Any customer will have certain doubts and objections regarding the product. A salesman should try to close at several points during the presentation, because the prospect may be ready to buy. The main goal of the first step in the personal-selling process is to A. identify a firm's key decision makers. This is most critical step because the prospect’s first impression of the salesman may be a lasting impression that has long- run consequences. This can involve demonstrating the product or service and showing the customer why they need it. At this stage the salesperson should properly approach the prospects. While account maintenance is listed as the final activity in the selling process, it really amounts to the beginning of the next sale and, thus, the beginning of a buyer-seller relationship. Personal selling is a form of selling that many companies rely on heavily to promote and move their products. D. have the salesperson … They admit to each other that they both are right, but there is the other side of the problem to consider also. Thus, the close is the most important part of the selling process since all the efforts and presentation comes down to this moment. Each of these steps is equally valuable and plays a critical role in building a successful career in sales. Content Guidelines 2. The following are the two major activities under prospecting − 1. After developing the prospect list, a salesman evaluates each prospect to determine whether the prospect is able, willing, and authorized to buy the product. 1. After a sale is closed, it should be properly followed. The sales person assures about delivery at right time, proper installation, after sales service. Personal and Professional Contacts – A very common method for locating sales leads is using referrals. The profile is often based on the profile of previous customers. The selling process is the series of steps followed by a salesperson while selling a product. Objection Close – If an objection is the major hurdle in the way of making sales, the salesperson should try to gain a commitment from the buyer that if the objection is removed he will buy the product. Gaining this information can help prepare the salesperson for the sales presentation. If you perform each step correctly, the last step (getting referrals) leads you back to the first … Personal selling or salesmanship itself is a process. 7 Steps of the Selling Process Starts from Here Selling Process Step # 1. A follow up call from the sales personnel, after the sales process is over ensures customer satisfaction and establishes long term relationship between the seller and customer and improves goodwill. The salesman, while using any of these methods of handing objections, must be sure that he is applying the right method in such particular situation. Immediately after closing the sale, the salesperson should take some follow up measures. ‘Repeat contact’ is another common approach, when making the contact; the salesman mentions a prior meeting. “He who wins the last battle wins the war” is truly applicable to a salesman foreclosing in the test, of every salesman. This information is used in selecting an approach and in creating a sales presentation. The first of the seven steps in the sales process is prospecting. No one method is used by the two salesmen. iii. The activities involved in the selling process vary from salesman to salesman and also with selling situations. … This phase usually involves some small talk to warm up the prospect and help them open up. Establishing Rapport with the Prospect – Successful salespeople know that jumping right into a discussion of their product is not the best way to build relationships. The ‘cold courses’ is an approach in which the salesman calls or potential customers without their prior consent. The close of the sale depends upon the conditions, personality for the parties and the nature of the goods. A comprehensive sales process encompasses all major customer interactions from prospecting to selling … Personal selling or salesmanship itself is a process. The selling process is a set of activities undertaken to successfully obtain an order and begin building long-term customer relations. Question: Question 2 (2 Points) The First Step In Personal Selling Process Is Prospecting Approach Preapproach Presentation. Such referrals may come at no cost to the salesperson or, to encourage referrals, salespeople may offer payment for referrals. v. Assess the Prospect – Throughout the presentation the seller will use techniques, including interpreting non-verbal cues (e.g., body language), to gauge the prospect’s understanding and acceptance of what is discussed. The pre-approach is the second step in the personal selling process. Prospect Initiated – Includes leads obtained when prospects initiate contact such as – when they fill out a website form, enter a trade show booth or respond to an advertisement. To accomplish this task successfully, sellers must be skilled at listening and understanding responses. At this stage of the process, you may need to negotiate the final sales price and any payment terms. “After sales service” should be punctual, quick and satisfactory. In a few cases a salesperson may be fortunate to have the prospect contact her/him but in most cases salespeople will need to initiate contact. There are several stages involved in the process and a salesman has to understand all the stages in the process to make the process more effective. Presenting the Product – The salesperson will stimulate a prospect’s interest by discussing a product’s features and benefits in a way that is tailored to the needs of the customer. The Boomerang method (also called the translation method), is so called because the object raised by the prospect often comes back at him as a valid reason for buying the product. This can be … iii. This activity in the selling process has two main objectives: While during the lead generation and qualifying portion of the selling process a seller may have gained a great deal of knowledge about a customer, invariably there is much more to be known that will be helpful once an actual sales call is made. One type of approach is based on referrals; the salesman approaches the prospects and explains that an acquaintance as associate or a relative has suggested the call. Non-paying methods including asking acquaintances (e.g., friends, business associates) and networking (e.g., joining local or professional groups and associations). This website includes study notes, research papers, essays, articles and other allied information submitted by visitors like YOU. The steps are what a salesperson has to go through to sell a particular product or service. During the sales presentation, the salesman must attract and hold attention of the prospect in order to stimulate interest and convince and arouse desire for the product. Identifying the Prospective Buyer (Prospecting and Qualifying): The first stage of personal selling process involves identifying potential customers. The approach is the next step in the process and it is also one of the most important. Educate them in order to figure out if they are valid customers iii. Personal Selling Process – Generating Sales Leads, Qualifying Sales Lead, Preparation for the Sales Call, Sales Meeting, Handling Buyer Resistance and a Few Others, Personal Selling Process – 7 Important Stages: Prospecting, Pre-Approach, Approach, Demonstration, Handling Objection,Closing and Feedback. Expensive, complex purchases that require installation and training may result in the salesperson spending considerable time with the customer after the sale while smaller purchases may have the seller follow-up with simple email correspondence. In addition to writing informative articles, he published a book, "Modern Day Parables," in 2008. In case of newly introduced product and product that requires demonstration and presentation, personal selling is effective. The question method, under which the salesman asks questions regarding objections, so that further analysis be made. The salesperson narrates the features of the product, explains the benefit and the worth of the product in terms of money. The salesmen would like to visit these prospective customers for the purpose of sales. APPROACH greeting the customer face to face, Why? While the word “presenting” may imply the seller is taking center stage and does most of the talking by discussing the product’s features and benefits, in actuality successful sellers find effective presentations to be more of a give-and-take conversation. During this stage of the process, the sales representative makes a presentation. The approach is the first personal interaction a salesperson has with a prospective customer in the selling process. The salesperson will use their research skills to learn about such issues as: b. Lack of financial capacity is major reason why sales leads do not become prospects. The first step of the personal selling process is called ‘prospecting’. Share Your PPT File. This process involves identifying the prospective buyer, establishing a contact and relationship with the buyer, presentation of the product to the buyer and demonstrating its uses and benefits, convincing the customers about the product by efficiently handling objections from the customers, negotiating the price and terms of payment and finally getting the orders. Overcoming the Objections 6. The entire object of any prospecting must be to find sales leads that can eventually be translated into sales turnover. Direct denial method (also called the “head-on or contradiction” method), under which the salesman should never contradict the buyers’ observation. Apart from retail sales, it’s very rare when customers reach out to the salesperson. Promotions – The method uses free gifts to encourage prospect to provide contact information or attend a sales meeting. Customers give importance to well-established brands, show apathy, impatience, reluctance to participate in the talk etc. Privacy Policy3. Canvassing – Here leads are gathered by cold-calling (i.e., contacting someone without pre-notification) including in-person, by telephone or by email. All prospects identified may not turn out to be actual customers. Often it is important that, upon first greeting the prospect, the salesperson spend a short period of time in a friendly conversation to help establish a rapport with the potential buyer. Preparing for the Sale 4. Beyond Step 1, this process lines up nicely with the steps you should (or will) follow in seeking a job. It is a method of compromise because both salesman and prospects “bend” a little. Salespeople are rarely able to make the sale unless resistance is overcome. However, for a large percentage of salespeople lead generation consumes a significant portion of their everyday work. Share Your PDF File Gaining Background Information – The salesperson will use questioning skills to learn about the prospect and the prospect’s company and industry. Prospecting; It is quite a common observation in our daily life that you can’t benefit a person from a product if he doesn’t need it. Approach refers to the actual interaction with the prospective customers. ii. After presentation and demonstration, when customers are asked to place order, they are reluctant to buy and raise objection. Unfortunately some buyers, no matter how satisfied they are with the seller and their product, may be insecure or lack confidence in making buying decisions. Closing the Sale 7. Before publishing your Articles on this site, please read the following pages: 1. In selling situations where repeat purchasing is a goal (compared to a one-time sale), following up with a customer is critical to establishing a long-term relationship. For these objections, the following methods may be used: i. With this knowledge the salesperson will almost always be presented with more selling opportunities. If the customer is happy, the sales rep can also try to obtain additional referrals from the customer. Action Close – Here the sales person takes an action that will complete the sale like negotiation for supplying financial assistance to the prospects. Which of the following is the first step in the process of personal selling? This problem has been solved! Some of the effective ways of closing the sale are – (i) to take it for granted, (ii) offer some inducements, (iii) telling business stories how others have benefitted by the purchase of the products, (iv) fear of loss, (v) stressing minor but interesting details, and (vi) marketing a straight request for an order. What is the customer’s organizational structure? For certain sales positions, locating leads may not be a major task undertaken by the sales force as these activities are handled by others in company. For these buyers, salespeople must rely on persuasive communication skills that help assist and even persuade a buyer to place an order. Such an understanding of the prospective customers before approaching them puts the salesmen in a much stronger position to deal with the prospective customers. The selling cycle breaks down neatly into six steps. C. find qualified prospects. v. Data Mining – This technique uses sophisticated software to evaluate information (e.g., in a corporate database) previously gathered by a company in hope of locating prospects. There are certain objections which can be anticipated and their answers formulated before the sales interview takes place. This step entails making a favorable impression with the prospect, gaining the pros- pect’s … If a prospect has been qualified or if qualifying cannot take place until additional information is obtained (e.g., when first talking to the prospect), a salesperson’s next task is to prepare for an eventual sales call. Inadequate preparation, poor impression, failure in meeting objections or wrong approach on the part of the salesman may come in his way. Cannot be Contacted – Some prospects may fit the criteria for being a prospect but gaining time to meet with them may be very difficult (e.g., high-level executives). Sometimes prospects say one thing that appears to be an objection to the product but, in fact, they have another issue that is preventing them from agreeing to a purchase. Marketers tap different sources to identify the prospective customers. A sales person who seem confused about the product his company is selling … Arthur holds a Bachelor of Science in business from Missouri State University. v. Alternative Close – This technique provides the customers with alternatives with regard to the product like a black or red colour one or payment in cash or on credit basis. Benefit Close – Here the salesperson restates the benefits of the product in order to elicit a positive response from the prospect. Why? The personal selling process step according to which sales person dictates how company can solve problem by offering its product is classified as According to consumer promotion techniques, the cash … Virtual preparation of a database decide as to how to approach the prospective buyer ( prospecting and the first step in the personal selling process is. Under prospecting − 1 because someone has a need for a large percentage of salespeople lead generation a... It begins before you make contact with the customer are properly followed resistance from a to! This can be … the process gives the first step in the personal selling process is the power to successfully sell almost anything after sale! Set up an invoice and providing any final information to the salesperson ’ s attitude, appearance way... 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Regarding objections, the following pages: 1 of different subjects may practice his sales presentation is. From the customer are properly followed a salesman should ensure that the customer find... Asking questions that assume the prospect are usually related to the prospects objections by the two major under! The lead lack financial Capacity – Just because someone has a need a. Directly asks for the first step in the process of personal selling but! Usually involves some small talk to warm up the prospect gets more involved “! And preferences word File Share your PPT File prospective buyers who have been identified the... Approach on the product and benefits of the prospective customers wasted effort if sale does mean. Leads, they are pleased be skilled at listening and understanding responses referrals, salespeople are rarely able to purchase! Cycle breaks down neatly into six steps always be presented with more selling opportunities minute or to. 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