• Selling

The simplest way to think of the nature and role of selling is that its

function is to make a sale.

This presentation has been shared with Donegal CEB by Stephen Friel of Friel Consulting

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• Order takers

Inside order takers – e.g. retail sales assistant Delivery sales people – Milkman Outside order takers – visit customer to take orders (not selling),

now being replaced by telemarketing

Order creators ‘missionary’ sales people – selling task is to educate and build

goodwill. E.g. Architects or medical reps

Order getters New business sales people – generate new business Organisational sales people – look after existing customers Consumer salespeople – double glazing salespeople

Technical supportMerchandisers

• Image of sales

Selling is not a worthwhile career Good products will sell themselves and

thus the selling process adds unnecessarily to costs

There is something immoral about selling, and one should be suspicious about those who earn their money from this activity

• Selling v Sales management

He / she needs to be:1. Accountant2. HR manager3. Business planner4. Marketing manager5. Motivator

• Consumer and organisational buyer

behaviourThe differences between consumer and organisational

buying1. Few organisational buyers2. Close, long-term relationships between organisational

buyers and sellers3. Organisational buyers are more rational4. Organisational buying may be to specific requirements5. Reciprocal buying may be important in organisational

buying6. Organisational selling / buying may be more risky7. Organisational buying is more complex8. Negotiation is often important in organisational buying

• Consumer buyer behaviour

An understanding of customers can be obtained by asking:

1. Who is important to the buying decision

2. How do they buy3. What are their choice criteria4. Where do they buy5. When do they buy

• Who buys

Engel described five roles:1. Initiator2. Influencer3. Decider4. Buyer5. User

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Evaluate (choice) criteria. The dimensions used by consumers to evaluate purchase. Eg Cars – fuel consumption, style etc

Beliefs – these are the degrees to which, in the consumers mind, a product possesses various characteristics (eg Roominess)

Attitudes – These are the degrees of liking or disliking a product. (Dependent on 1 & 2)

Intentions – These measure the probability that attitudes will be acted upon.

• The buying situation

Three types identified:1. Extensive problem solving – eg Car /

House2. Limited problem solving – Clothes3. Automatic response – Mars bar

• Personal influences

Dominant – in face to face situations, dominance is the drive to take control of others

Submissive – submission is the disposition to let others take the lead

Warm – Warmth is having a regard for others

Hostile – Having

• Social influences

Major social influences on consumer decision making include social class reference groups, culture and family

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• Organisation buyer

behaviour Structure. The who factor. Who participates in

the decision making process, and their particular roles

Process. The how factor. The pattern of information getting, analysis, evaluation and decision making which takes place as the purchasing organization moves towards a decision

Content. The what factor – the choice criteria used at different stages of the process and by different members of the decision making unit (DMU)

• Structure

Initiators. those who begin the purchase process

Users. those who actually use the product Deciders. those who have the authority to

select the supplier / model Influencers. those who provide information and

add decision criteria throughout the process Buyers. those who have authority to execute the

contractual arrangement Gatekeepers. those who control the flow of

information

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• Sales Strategies

Key concepts Branding Budget Promotional mix Push and pull strategies Sales forecast Sales planning process SWOT analysis

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Sales responsibilities and preparation / Personal selling skills

• The primary responsibility of a sales

person is to conclude a sale successfully.

Personal selling Secondary function:

1. Prospecting – obtaining market data2. Maintaining customer records and info

feedback3. Self-management4. Handling complaints5. Providing service

• Preparation

Product features (and benefits!) Knowledge of competitor products Sales presentation planning Setting sales objectives (short sales cycle

selling mars bar (want to sell immediately), different if selling a jet airplane)

Understanding buyer behavior

• Preparation for sales

negotiation Assessment of negotiation1. The number of options available to each

party2. The quality and quantity of information

held by each party3. Need recognition and satisfaction4. The pressures of parties

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Determination of negotiating objectives

Useful to consider two types of objectives:

1. Must have objects (bargainers minimum requirements)

2. Would like objectives (this determines the opening positions of buyers and sellers)

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Concession analysis:1. Price2. Timing of delivery3. The product – spec., optional extras4. Payment5. Trade in terms e.g. cars

• The opening

Retail “ I see you are interested in our walkmans, what type had you in mind?”

Industrial “we have had extensive success in helping company’s like yours with stock control What SC method do you currently use?”

Trade “ Your window display is attractive, has it attracted more custom?”

ALWAYS AVOID – “Can I help you?”

• Need and problem

identification Open questions: Why do you believe a computer system is

appropriate? What are the main reasons for buying the

SF system? Closed questions: Who does the company buying?

• Presentation and

demonstration

When needs have been identified, the presentation follows.

Sell benefits not features, link them by using the following phrases:

“Which means that ..” “Which results in ..” “Which enables you to ..”

• Dealing with objections

Listen and do not interrupt. This creates the impression that:

1. The objection is obviously wrong2. It is trivial3. It is not worth the salesman’s time to let

the buyer finish

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Agree and counter (the yes.. but technique)

Straight denial – can be used when the buyer is seeking factual information

Question the objection – Buyer “I don’t like the look of the Machine”. Seller “ Could you tell me exactly what you don’t like?”

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Forestall the objection. Sales preempts the concern eg. ”Our company is smaller than most in the industry but this means we can offer a very personal service..”

Turn the objection into a trial close. Eg “if I can satisfy you that the fuel consumption of this car is not greater than a Vauxhall Vectra would you buy”

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Hidden objectives. – if a sales person believes that a buyer is unwilling to reveal their true objectives, they should ask questions such as:

“Is there anything so far you are unsure off?”

“Is there anything on your mind” “What would it take to convince you?”

• Negotiation

Start high but be realistic Attempt to trade concession for

concession eg.1. “if you are prepared to arrange

collection of these goods at our premises, then I’m prepared to knock ten euro off.”

• Closing the sale

Why are some sales people reluctant to close sales – failure of rejection

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Simply ask for order1. Shall I reserve one for you?2. Would you like to buy it?

Summarize and then ask for the order

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The concession close – “if you are willing to place an order now, I’m willing to knock 2% of the price”

The alternative close – “would you like it in red or blue?”, “Would you like it delivered on Tuesday or Friday?”

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The objection close – “If I can convince you that the model is the most economical in its class will you buy it?”

Action agreement – In some examples it is inappropriate to attempt to close the sale.

• Up-selling

Highly important! Customers will value your opinion Easier to sell up to a customer - they have

already indicated a willingness to purchase Ancillary sales – eg candle with candle

stick or gift cards