INTRODUCTION TO
SALES AND
DISTRIBUTION
MANAGEMENT
Brief Recap about the Previous Topic
ASSESSMENT:
Say something you’ve remembered about the following:
■ Evolution of Sales Management
■ Definition of Sales Management
■ Basic Groups of a Company’s Marketing Team
■ Relationship Selling
■ Skills of a Sales Manager
PERSONAL
SELLING:
PREPARATION AND
PROCESS
Chapter 2
LEARNING OBJECTIVES:
■ To understand the psychology in selling, buying decision
process, and buying situations
■ To know the importance of effective communication
skills, sales knowledge, and sales related marketing
policies
■ To understand in details the steps involved in the
personal selling process
■ To learn about negotiation with customers and the
difference between transaction selling and relationship
selling
THE PSYCHOLOGY IN SELLING
■ Salespeople know that some prospects buy their products
and services after the sales presentation and some prospects
do not buy. They do not know the prospect’s (buyer’s) hidden
mental process. This model of buyer behavior is called
stimulus response and is shown in the figure below.
Stimulus Buyer’s decision Response
(Sales making process (buy or not buy)
presentation)
Buyer Behavior Model
Figure 2.1
THE PSYCHOLOGY IN SELLING
■ Psychological factors of buyer or consumer behavior includes
attitudes, perceptions, motivations, and personality of
buyers. Study of consumer behavior helps the salesperson
to understand the psychological aspects in selling or why the
prospect is buying or not buying the product or service.
Stimulus Buyer’s decision Response
(Sales making process (buy or not buy)
presentation)
Buyer Behavior Model
Figure 2.1
BUYING DECISION PROCESS
■ Salespeople must understand that household and individual
consumers as well as business (or industrial) buyers pass
through certain stages or steps in buying a product.
■ In consumer markets, individual and household
consumers make buying decisions based on five mental
stages of buying process, as shown in the figure below.
Problem/ Informatio Evaluation Purchase Post-
Need n of Decision Purchase
Recognitio Search/ Alternativ Behavior
n Collection es
Consumer Buying Process
Figure 2.2
PROBLEM (OR NEED) RECOGNITION
■ Internal stimulus could be physiological like hunger or
thirst, or psychological like desire for the prestige of
owning a BMW car.
■ External stimulus may be for a person who sees a
fresh pizza at Pizza Hut that stimulates his hunger.
Informatio Evaluation Purchase Post-
Problem/
n of Decision Purchase
Need
Search/ Alternativ Behavior
Recogniti Collection es
on
Consumer Buying Process
Figure 2.2
INFORMATION SEARCH (OR COLLECTION)
■ For low involvement products (like bread, butter, and
biscuit), which are purchased routinely, the information search
may be milder such as a person becoming more receptive to
information about a product.
■ For high involvement products such as a house, an
automobile, or insurance, which requires more of an investment
in time and money, the person may want an active information
search.
Problem/ Informati Evaluation Purchase Post-
Need on of Decision Purchase
Recognitio Search/ Alternativ Behavior
n Collectio es
n
Consumer Buying Process
Figure 2.2
EVALUATION OF ALTERNATIVES
■ The consumer is trying to satisfy a need, or solve a problem.
■ The consumer is looking for certain advantages or benefits
from the product or service that satisfies the need or solves
his/her problem.
■ The consumer knows that each alternative product or brand
has a set of characteristics (attributes) that try to satisfy
his/her need.
■ The importance and relevance of attributes vary from product
to product.
Problem/ Informatio Evaluatio Purchase Post-
Need n n Decision Purchase
Recognitio Search/ of Behavior
n Collection Alternati
ves
Consumer Buying Process
Figure 2.2
PURCHASE DECISION
■ The consumer’s purchase intentions can be changed by two
factors.
■ One factor is the “attitude of others”, such as relative,
friend, or boss. Consumers are also influenced by published
reviews of books, music, movie, and chat rooms.
■ The second factor is “unanticipated situational factors”
that may include some other product purchase becoming
more urgent, financial problem, or health related problems.
Problem/ Informatio Evaluation Post-
Need n of Purchas Purchase
Recognitio Search/ Alternativ Behavior
n Collection es e
Consumer Buying Process Decisio
Figure 2.2 n
PURCHASE DECISION
■ For high involvement products, the purchase decisions
include:
a) Which brand to purchase (brand decision)
b) Timing of purchase (if during the festive season, or on
a Sunday/holiday)
c) How much quantity (number of items)
d) From which retailer or dealer to buy
e) How to make the payment (credit or debit card, cash or
installment basis)
Problem/ Informatio Evaluation Purchas Post-
Need n of e Purchase
Recognitio Search/ Alternativ Decisio Behavior
n Collection es
n
Consumer Buying Process
Figure 2.2
POST-PURCHASE BEHAVIOR
■ Delighted customers
Product perceived performance > Expectation
■ Satisfied customers
Product perceived performance = Expectation
■ Disappointed customers
Product perceived performance < Expectation
Post-
Problem/ Informatio Evaluation Purchase Purchas
Need n of Decision e
Recognitio Search/ Alternativ Behavio
n Collection es
r
Consumer Buying Process
Figure 2.2
BUYING DECISION PROCESS OF
BUSINESS BUYERS
In addition to the five-stages of consumer buying
process, the three extra steps are:
■Determination of characteristics and quantity of
needed product or service
■Development of specifications of product or
service needed
■Obtaining and analyzing supplier proposals
BUYING SITUATIONS OR TYPES OF PURCHASES
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
Characteristics of an Effective Communicator
Get feedback to uncover buyer needs by asking
relevant questions.
Empathize 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 (KISS).
Listen carefully to the prospect’s words, feelings, and
thoughts and less talk.
Enthusiasm towards the sales job and customer’s
SALES KNOWLEDGE AND SALES - RELATED MARKETING
POLICIES
Sales Knowledge
Company knowledge
Product knowledge
Customers and competitors knowledge
Sales - Related Marketing Policies
Pricing policies
Distribution policies
Promotional policies
Product policies
THE SALES PROCESS
Prospecting and Qualifying
Preapproach (Precall Planning)
Approach
Presentation and
Demonstration
Overcoming Objections
Trial Close / Closing the Sale
Follow – up and Service
PROSPECTING
Prospect – an individual, a family, or an organization
who needs the product or service a salesperson is
selling and also has the ability to buy (potential
customer)
Sales Lead – generates the name of a person or a
business firm that is a probable prospect
Prospecting Methods
1. Referrals from existing customers
2. Referrals from internal company sources
3. Referrals from external sources
4. Networking by salespersons
5. Industrial directories
QUALIFYING
For the prospects to be qualified:
The probable prospect has a need for the
product/service being sold.
The probable prospect can afford to buy the
product or the service.
Three Groups of Prospects
1. Hot prospects have good requirements of the
company’s products/services and are financially sound.
2. Warm prospects have medium or average
requirements of the company’s products/services and
are financially sound.
3. Cool prospects have low requirements of the
PREAPPROACH
■Information gathering
The salesperson needs to collect as much
information as possible about the prospects.
■Planning the sales call
The salesperson should then do the planning,
before approaching the customer. This consists
of the following:
1. Setting call objectives
2. Planning the sales strategy
APPROACH
■making an appointment to see the prospect
■It takes a few minutes of call, but can make or
break a sale. When a salesperson meets a potential
customer for the first time, the first impression
should be favorable.
■The initial impression of a salesperson is based on
his/her appearance (for example, wearing clothes
similar to what the buyers wear), the attitude, and
the opening line.
■Depending on the selling situation, a salesperson
can decide on the methods or techniques to be
used to approach the prospect
APPROACH
■Approach Techniques Commonly Used
1. Introductory Approach
2. Customer benefit approach
3. Product approach
4. Question approach
5. Praise approach
PRESENTATION AND DEMONSTRATION
[Link] the Buyer’s Needs
1. Situational questions
2. Problem identification questions
3. Problem impact questions
4. Solution value questions
5. Confirmations questions
B. Knowing Sales Presentation Methods
1. Stimulus response method
2. Formula method
3. Need-satisfaction method
4. Team selling method
5. Consultative selling method
PRESENTATION AND DEMONSTRATION
■Some of the Benefits of using the
Demonstration
1. Buyers’ doubts or objections are cleared and their
questions are answered. This improves a buyer’s
purchasing interest.
2. It provides a good support in the selling process.
3. It helps the salesperson to find out specific benefits of
the prospective customer. The salesperson can then
show how his/her products or services can meet with
those benefits better than the competitors.
OVERCOMING OBJECTIONS
■Two Types of Objections or Resistances
1. Psychological (or hidden) – include predetermined
ideas or beliefs, preference for established brands,
dislike of making decisions, anxiety or resistance to
spend money
2. Logical (practical or real) – tangible such as quicker
delivery schedules, high price, product quality, or
product availability
■Methods for Handling and Overcoming
Objections
1. Ask question
2. Turn an objection into Benefit
3. Deny objections tactfully
TRIAL CLOSE/CLOSING THE SALE
■Trial Close Examples
1. To which extent this product meets with your needs?
2. Which of these benefits are important to you?
3. Out of the three models that are here, I think you like
this model. Am I right?
■Buying Signals
1. Examines the product
2. Asks another person’s opinion
3. Asks questions
4. Becomes friendly
TRIAL CLOSE/CLOSING THE SALE
■Closing Techniques
1. Alternative – choice close
2. Minor points close
3. Assumptive close
4. Summary – of - benefits close
5. T - account (or modified T - account) or balance sheet
close
6. Special – offer (or special – deal) close
7. Probability close
8. Negotiation close
FOLLOW – UP AND SERVICE
■Salespeople must understand that their job is not
over after the order. Successful salespeople follow –
up a number of related tasks, some of which are
called customer service, as described below:
1. Check customer order
2. Plan follow – up visit at the time of delivery
3. Account penetration
4. Relationship marketing
ANY QUESTIONS OR
CLARIFICATIONS???
Remember: Everytime you ASK,
you are:
Always
Seeking for
Knowledge
THAT’S ALL FOR NOW.
THANK YOU FOR YOUR PATIENCE
MARKETERS.
HOPE YOU LEARNED SOMETHING.
PLEASE PREPARE AND BE READY
FOR THE ACTIVITY NEXT
MEETING…
GOD BLESS US ALL!!!
- Sir