05 Personal Selling and Sales Promotion

Question 1

Types of sales jobs (6)

Answer 1

• order taker (person who checks out my groceries, can also be order getter in some cases)
• technical specialist
• missionary salesperson (not selling product or service but information)
• new business salesperson (changing entire network)
• order getter (get someone to become a customer or switch to my product)
• team selling

Question 2

Approaches to selling (2)

Answer 2

1) Transactional selling: approach that focuses on making an immediate sole with little concern for developing a long-term relationship with the customer
2) relationship selling: process by which a salesperson secures, develops and maintains long-term, profitable customer relationships

Question 3

The sales process (8)

Answer 3

1) Prospecting & Qualifying
2) Pre-Approach (1+2=Prep)
3) Approach
4) Need assessment
5) Presentation/the Pitch (1 minute, capure attention)
6) Meeting objections
7) Closing
8) Follow up and service (relationship building e.g. car buy)

Question 4

Prospecting definition

Answer 4

Prospecting is the process by which salespeople identify and develop a list of possible customers via directories and commercial databases, search engines, customer referrals, trade shows and cold calling.

Question 5

Qualifying definiton

Answer 5

Process of identifying good prospects and screening out poor ones(age, mental instability). Good prospects are identified by job, appearance, fashion. Once the prospects are identified, the salesperson must then qualify leads.

Question 6

MAD Buyer

Answer 6

M - Money to spend
A - Authority to buy
D - Desire to buy

Question 7

Pre-approach definiton

Answer 7

At this stage, the salesperson learns as much as possible about a prospective customer before making a sales call.

Question 8

Approach definition

Answer 8

Salesperson meets the buyer and gets the relationship off to a good start (first impressions very important!).

Question 9

Need assessment definition

Answer 9

At this stage, the salesperson mus discover, clarify and understand the buyer’s needs via the following steps:

1) Questioning to identify the need
2) Need identification (have i found a solution to your problem?
3) Pre-commitment (“if yes, would you buy today?”)

Question 10

Presentation definition

Answer 10

Now the salesperson tells the product “story” to the buyer using the need-satisfaction approach. Presentation is usually referred to as a discussion of those product and/or service features that the customer has indicated as important to them.

• built around a forceful product demonstration
• prepared presentation vs. adaptive selling

Question 11

Tips for effective presentation (4)

Answer 11

1) Keep it short and simple (KISS).
2) Talk the prospects language (technical language not advised).
3) Stress the application or function of the product/service to the prospects situation (thats why they were interested in the first place)
4) Seek credibility at every turn.

Question 12

Handling Objections definition

Types of objections

Answer 12

Here the salesperson seeks out, clarifies and overcomes customer objections to buying. These should be welcomed as opportunities, because they indicate that the prospect has some interest in the proposition. Objections are not obstacles but opportunities

• price or value objections
• product/service objections
• procrastinating objections
• hidden objections: salespersons attitude

Question 13

Closing definition

Answer 13

Finally, the salesperson asks the customer for an order. Closing the deal has to be anti-climactic and yes/no questions should be avoided to avoid rejection.

Question 14

(3) Common Sales closes

Answer 14

1) assumptive close: would you like to pick up tomorrow? should be deliver wednesday? now what size do you want?
2) special offer close: if you buy this product today, we’ll double the length of the warranty
3) 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 - summarizing why

Question 15

Follow-up definition

Answer 15

This stage occurs after the sale and ensures customer satisfaction and repeat business. The sale is definetly not over when they get the order (relationship selling vs. transactional selling) and the customer has to be fully satisfied, thus building trust. Also important to note is that existing customers are cheaper to maintain than to acquire new ones.

Question 16

Sales Promotion

Answer 16

Short-term incentives to encourage the purchase or sale of a product/service -> is about buying now rather than later (coupons, expiration dates, volume discounts)

Question 17

Sales promotion targets (4)

Answer 17

1) Final Buyers (consumer promotions)
2) Retailers and wholesalers (trade promotions)
3) Business customers (business promotions)
4) Members of the sales force (sales force promotions)

Question 18

Sales promotion types (4)

Answer 18

1) consumer promotions: urge short-term customer buying or boost customer brand involvement
2) trade promotions: market shares, incentives for new models: get retailers to carry new items and more inventory, buy ahead, or promote the company’s products and give them more shelf space
3) business promotions: generate business leads, stimulate purchases, reward customers, and motivate salespeople
4) sales force promotions: get more sales force support for current or new products and motivate salespeople to sign up for new accounts