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Personal Selling & Promotions
for B2B Markets
Chapter No.: 4
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Role of Personal Selling
Sales representative as a part of problem
solving capabilities
a) Help customer to define buying problem
b) Give an effective customer service
c) Represent customer at the factory, head
office or Sales and Marketing department.
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Role of Personal Selling
Sales representative as a part of communication mix
a) Sales representative is responsible for conveyingmessage
b) Keep customers informed about product and servicesc) Sales representative should effectively use other
elements of promotion mix like advertising, directmail, catalogues, exhibitions and trade shows and
secure orders from customersd) Collect and communicate information on
competition, market trends to design marketingstrategy.
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Characteristics of Personal Selling
Trade Selling: Sales force is involved in providingservices to intermediaries like customerscomplaints, training distributors sales force,communicating strategies related to product
pricing offers etc. and the intermediaries will beselling there products.
Missionary selling: Missionary Salesman isinvolved in providing information and building
goodwill with the customers instead of closingthe sales call. Customers are asked to place theorder with the companys authorized distributor.
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Characteristics of Personal Selling
Technical Selling: Technical sales engineer hasa technical expertise and will support nontechnical salesman in convincing the customer
by resolving customers product relatedtechnical queries.
Business Selling: Salesman is expert in solvingbusiness customers problem with companys
product and services like hardware, software,telecommunication etc.
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Personal selling - Concept
Personal selling is the process in which asalesperson has a face-to-face interaction withthe customer for the purpose of selling goods orservices.
Personal selling is one of the tools in acompanys promotional mix.
Personal selling is most effective marketingtool.
Personal selling allows to interact customerdirectly.
This method is particularly suited for complexproduct and services.
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Advantages of Personal Selling
Provides a detailed explanation or demonstrationof product.
Message can be varied to fit the needs of eachprospective customer.
It is a two-way form of communication. The interactive nature of personal selling also
makes it the most effective promotional methodfor building relationships with customers,
particularly in the business-to-business market. Conveys Information in detail.
Instant Feedback.
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When to Use Personal Selling
Customers are concentrated
There are few customers
Product is technically complex
Product is custom made
Product has a high value
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Seven stages of Personal Selling
1) Prospecting
2) Pre-approach
3) Approach
4) Presentation
5) Handling Objections
6) Close
7) Follow-Up
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Stage-1- Prospecting
Prospectingsearch and identification of potentialcustomers who may be willing to buy a productand have the ability to do so.
The sales person obtain contact information aboutthe prospect from following sources.
A. External sources
B. Internal sources
C. Personal contact
D. Miscellaneous Sources
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A. External Sources
Contacting Organizations- Obtaining referencesfrom social and recreation clubs.
Contacting Non-competing salespeopleObtaining data from non-competingorganizations.
Referral ApproachAsking the prospect to givereferences of other potential prospects.
Introduction ApproachAsking the prospectover the phone, mail or in person to introduceother prospect.
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B. Internal sources
Company Sales data
Telephone Directories
Companies Membership List
Obtaining information about prospect who enquireabout the companys advertisements over the
phone.
By post or in-person.
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C. Personal contacts By Observations
By Cold Calling or Cold Canvassing.
Trade shows and exhibitions
Bird DogsJunior Salesperson
D. Miscellaneous Sources
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Stage-2- Pre-approach
For B2B customers
Pre-call Planning-What do I know aboutthe prospect? Size of business/products sold
Key personnel
Buying routines/purchasing process
Present supplier(s)/volumes purchased
Future plans
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Stage-3- Approach
This is the first official contact takes placebetween the salesperson and prospect.
Establishing Rapport.
The purpose of the salesperson is to catch theprospects attention and create interest in him about theproduct.
The prospects attention can be achieved by asking open endedquestions, by giving him sincere compliment or by stating the product
benefits.
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Types of Approaches
A. Non-product related approach.
B. Peaking interest approaches.
C. Consumer Directed approaches.
D. Product Related approaches.
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A. Non-product related
approach.
The Referral approach - Using the name of thecurrent customer as reference to approach theprospect.
The Premium approachoffering a gift to theprospect for consenting to a sales interview.
The Introductory approachapproaching theprospect by introducing himself. ShockApproach.
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B. Peaking interest approaches.
Arousing CuriosityHighlighting a productbenefit.
Question approachstarts the interview witha question to gain the attention of theprospect.
Compliment approachPaying the prospect acompliment.
C. Consumer Directed approaches.
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D. Product Related approaches.
Showing the product to the prospect
Little or no explanation about the product.
This helps the salesman to gain theattention of the prospect.
To gain generate the interest.
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Stage-4- sales Presentation
This is the most important step in selling process. The salesman demonstrates the product to the
prospect, explaining its features and stating itsbenefit.
The objective is to induce the desire for the productin the customers mind.
Various techniques of sales presentations.
A. Visual Display Techniques.
B. presentation techniques.
C. Non-Visual Presentations.
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A. Visual Display Techniques.
Visualizing
Helping the prospect visualize the productby
using the pictures or graphs.
Demonstrating
Demonstrating the utilities or the product
to enhance the appeal (Applications).
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B. presentation techniques.
Customizes Sales PresentationThe
presentation is tailor made to suit the prospect.
Partially Standardized - The presentation is
slightly differ from customer to customer.
Standardized Sales PresentationMaking the
same presentation to the all customers.
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C. Non-Visual Presentations.
Questioning
Asking questions to the prospect during the
presentation to make sure that he
understands what is being said.
Comparisons
Comparing the product with that of the
competitors.
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Stage-5- Handling Objections/Sales
resistance/Negotiations
In this stage the salesperson tries to clear thenegative perceptions about the product in thecustomers mind.
Create positive impact by answering the queries.
Following techniques are used to handle theobjections.
A. Create strife Technique
B. Offset Objection Technique
C. Clarify Objection Technique
D. Miscellaneous Techniques
E. New Way- Acknowledge, Counter & Close
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A. Create strife Technique Comparative item MethodThe salesman
should be prepared with more than oneproduct so that if a defect is pointed out, thesalesman can show another one.
Indirect Daniel Methodinnocently denyingthe prospects objections, use of humor(releasing pressure by telling humorous story).
Its in your hands Method - Accepting the
objections and asking the prospect to decide. Pass-up MethodSmiling and passing off the
prospects objection.
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B. Offset Objection Technique Compensation MethodAccepting the
prospects objection but highlighting theproduct benefit that compensate.
Comparison or Contrast MethodMinimizing the prospects objection bycomparing or contrasting it with somethingacceptable.
Case History MethodDescribing benefitsaccrued by another prospect by buying theproduct.
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C. Clarify Objection Technique Demonstration MethodDemonstrating the
utility of the product to the customer.
Boomerang MethodConverting theprospects reason for not buying into a
reason for buying.
Purpose trial-use MethodAsking the
prospect to use the product on a trial basis.
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D. Miscellaneous Techniques
Miscellaneous Techniques to handle
objections and sales resistance include
answering the objection by putting aquestion pertaining to the objection and
comparing the product with the
competition.
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Stage-6- Close
This is naturally the most important stage inthe personal selling process.
The salesperson asks for an order and tries toclose the deal after negotiating andconvincing the customer to buy the product.
There are different techniques used forclosing the sales effectively.
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Stage-7- Post Sales Follow-up
This is the final stage in personal selling process.
Post sales follow up helps to prove that the customerhas taken right decision.
Follow-up action leads to customer satisfaction.
This helps to customer loyalty.
Post sales follow-up has to be done at periodic intervalsif the company wants to improve the customer loyalty.
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Development & Management of Sales
Force
Recruitment & Selection of Industrial
Salesperson:
1) Evaluation of application form
2) Aptitude / Personality Test
3) Personal Interview
4) Checking with references mentioned in theapplication form
5) Selection of the most suitable candidate
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Development of Sales Force
Challenge involved in the development of the
sales force is maintaining balance between
targets, profits, receivable collections and job
security & financial rewards. Task oriented approach: Sales manager shows
concern for achieving targets, profits and
payment collections People oriented approach: Sales manager shows
concern for Sales force and there development.
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ABC Analysis of Industrial Customers