05 - Personal Selling & Sales Promotion Flashcards
Definition: Personal Selling
Personal selling involves one-to-one communication, proving essential for certain product types and business markets. It is needed when a firm engages in a push strategy.
Definition: Salesperson
A person who represents a company directly to customers by performing several sales activities.
Types of sales jobs (6)
1) Team selling
2) Order getter
3) New-business salesperson
4) Missionary salesperson
5) Technical specialist
6) Order taker
Definition: Team selling
Team selling is required for pigger products that are more complex so that several experts are required to explain certain aspects of it, meaning that the salespeople need to act as a team to get the sale.
Definition: Order getter
Referred to as creative salespeople that want to upsell by offering certain special offers etc…
Definition: New-business salesperson
This involved a salesperson entering a new market that the business has never sold to before.
Definition: Missionary salesperson
Somebody who sells ideas and solutions (ex: Pharmaceutical salespeople to doctors).
Definition: Technical specialist
Somebody who also takes care of maintenance activities but wants to sell you something at the same time.
Definiton: Order taker
The typical person at the counter who simply registers your order.
Two approaches to selling (2)
1) Transactional selling
2) Relationship selling
Definition: Transactional selling
This approach focuses on making an immediate sale with little concern for developing a long-term relationship with the customer.
Definition: Relationship selling
This process involves the development of a long-term, profitable customer relationship between the salesperson and the customer.
The sales process (8)
1) Prospecting and qualifying
2) Pre-approach
3) Approach
4) Need assesment
5) Presentation/the pitch
6) Meeting objectives
7) Closing
8) Follow-up and service
Definition: Prospecting
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.
Definition: Qualifying
Process of identifying good prospects and screening out poor ones. Good prospects are identified by job, appearance, fashion. Once the prospects are identified, the salesperson must then qualify leads.
MAD Buyer
M - Money to spend
A - Authority to buy
D - Desire to buy
Definition: Pre-approach
At this stage, the salesperson learns as much as possible about a prospective customer before making a sales call.
Definition: Approach
Salesperson meets the buyer and gets the relationship off to a good start (first impressions very important!).
Definition: Need assesment
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
3) Pre-commitment (“would you buy today?”)
Definition: Presentation
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.
Tips for effective presentation (4)
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 ever turn.
Definition: Handling objections
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.
Types of objections
1) Price or value objections
2) Product or service objections
3) Procrastinating objections
4) Hidden objections (racism etc…)
Definition: Closing
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.
Definition: Follow-up
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.
Sales promotion targets (4)
1) Final Buyers
2) Retailers and wholesalers
3) Business customers
4) Members of the sales force
Types of sales promotion (5)
1) Discounts
2) Allowances
3) Conventions
4) Trade shows
5) Sales contests
