IT IS PREFERABLE THAT A SALES MANAGER HAS

PRIOR EXPERIENCE OF ACTUAL SELLING - to

enable him to manage a sales force effectively
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
The Personal Selling Process

The sales process itself plays an

increasing role in creating customer
value.

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

 THE EIGHT STEPS OF THE SALES PROCESS

8. Follow-up
7. Gaining Commitment
6. Meeting objections
5. Presentation
4. Need Assessment
3. Approach
2. Preapproach
1. Prospecting
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
 1) Prospecting: The method or
system by which sales-people learn the names
of people who need the product and can afford
it.
► Identifying Leads

► Qualifying Leads

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

 Qualifying Leads
►A qualified prospect must:
 Have a need for the products
being sold.
 Be able to afford to buy the
products.
 Be receptive to being called
on by the salesperson.
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
 Lead Conversion Ratio: Inquiry to
Decision 12 Months After Inquiring

Plan to
Purchased
buy 25% Purchased
45% No longer in
No longer market
in market Plan to buy
30%

*SOURCE: Bob Donath, James K.

Obermayer, Carolyn K. Dixon, and Richard
A. Crocker, “When Your Prospect Calls,”
Marketing Management, Vol. 3, No. 2, 1994.
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
 TM 3-
(FIG. 3-3)

The Value of Inquiry Follow-Up

Share of
buyer’s
business if
not followed
up 40%

Share of buyer’s
business if followed
up 83%

*SOURCE: Bob Donath, James K.

Obermayer, Carolyn K. Dixon, and Richard
A. Crocker, “When Your Prospect Calls,”
Marketing Management, Vol. 3, No. 2, 1994.
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
2) Preapproach: Planning the
Sale
►Includes all information-gathering
activities to learn relevant facts
about the prospects, their needs,
and their overall situation.

►Adaptive selling:

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 Planning the Sale
Presentation
► Defining the Goal or Objective for a
particular ‘Call’;
► How he/she is going to approach the
buyer, and kind of Questions to ask;
► Formulate a tentative plan for
presenting features & benefits of those
products that are likely to best meet
Customers’ Needs

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

 ADAPTIVE SELLING
 When a salesperson alters the initial
objectives or plans of the sales
process because of new information
gained from the customer during the
actual call.

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

 3) The Approach:
The first minute or so of the call.

► Expectations in the U.S.:

 Firm handshake
 Professional attire
 Good eye contact.

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

 4) Need Assessment
►The stage in which the
salesperson must discover,
clarify, and understand the
buyer’s needs.

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

 NEED ASSESSMENT TM 3-6

• Situational questions
How often do you change the cutting oil in your drill presses?
In addition to the hospital administrator, who else has an influence on the decision?
• Problem discovery questions
Have you experienced any delays in getting repair parts?
In which part of the production process is quality control the most important?
• Problem Impact questions
How do these delays in getting parts affect your production costs?
What impact do the quality consistency problems have on your production costs?
• Solution value question
If your inventories could be reduced by 20%, how much would that save you?
If your rejection rate on final inspection was reduced to under one percent, how much would
that save you?
• Confirmatory questions
So, you would be interested in an inventory control system that reduced your inventories by 20%?
If I can provide evidence to you that our products would lower your rejection rate to under one
percent, would you be interested?

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

 5) The Presentation
►A discussion of those product / service
features, advantages, and benefits that
the customer has indicated are
important.
► Built around a forceful product
demonstration
► Prepared presentation vs. Adaptive
selling

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

 TIPS for effective
PRESENTATIONS

►Keep it simple
►Talk the prospects language
►Stress the application of the
product/service to the
prospects situation
►Seek credibility at every turn.

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

 TM 3-

Presentation of Product, Features, Benefits, Advantages

Product Features Benefits Advantages

Camera Telephoto lens Take pictures Able to capture
from longer images of animals
distances. or people from a
distance.
Bicycle Attached water Can hold a water Don’t get dehydrated.
bottle holder bottle. Don’t have to stop
for water.
Feel more refreshed.
Drill Press Multiple drill Can change bits Saves time.
bits attached without shutting Saves money.
down the machine.
Motor Oil Rust inhibitor Oil and engine Saves money.
have longer life.

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

 6) Meeting Objections
►Objections should be welcomed
because they indicate that the
prospect has some interest in the
proposition.

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 In responding to
Objections…..
Listen to the buyer
Clarify the objection
Respect the buyer’s concern
Respond to the objection

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

 Common Types of Objections

►Price or value objections

►Product/service objections

►Procrastinating objections

►Hidden objections

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 7) Gaining Commitment
►Asking the buyer to commit to
some action that moves the sale
forward.

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

 Common ‘Sales-Closes’

► The Assumptive Close

 “Now what size do you want?”
► Special Offer Close
 “If you buy this product today, we’ll double
the length of the warranty.”
► Summary Close
► “You have agreed that our product is the best
on the market. Correct? Then I suggest that
you place your first order today so we can
have it to you by the end of the week.”

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

 8) Follow-Up
►‘The sale is not over when they get
the order.’
►It is much more expensive to
acquire new customers than it is to
retain existing customers.
►Following up to ensure that
customer is fully satisfied - build
Trust - Relationship Marketing.
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.