Evolution of sales as an important function:

Prior to the industrial revolution, small-scale enterprises dominated the economic scene,
catering to customers within a small geographical area. Demand used to be more than supply
and orders would be in hand before the product was even manufactured! So, focus of business
was more on manufacturing rather than sales.
fter the !ndustrial "evolution in England that began in #$%&, followed by the merican
"evolution in 'S, newly built large si(ed manufacturing facilities started churning out large
)uantities of goods and ad*acent mar+ets could not absorb such huge )uantities of goods
produced. ,o sustain their operations, companies were forced to e-pand their mar+et coverage
and venture into new territories. ,his is the time when speciali(ed sales departments started
evolving, with a focus on identifying new mar+ets, create customers, appoint distribution
channel partners . middlemen, ensuring collection of payments against goods sold, etc.
Sales as a function became more critical to the business as economies started growing with the
advent of new sectors and globali(ation.
!n today/s conte-t, with as a result of the abundance of information that is available online and
in the media, consumer is most concerned with how a salesperson can solve basic problems
and ultimately add value to a product or service. ,he role of sales intermediaries is now, more
than ever, important to success in this new competitive global mar+etplace. s a result, sales
managers have a new challenge of responding to this new environment with innovative
techni)ues for managing and motivating the sales force.
0ob and role of sales managers:
!t is aptly said that the sales department is the income producing wing of business.
0ob of a sales manager involves planning, direction and control of personal selling, including
recruiting, selecting, e)uipping, assigning, routing, supervising and motivating the sales force.
Sales managers are responsible for organi(ing the sales effort, both within and outside their
companies.
1ithin the company they need to communicate effectively not only within the sales 2
mar+eting department, but also with other units such as manufacturing, supply chain, finance,
3", etc. ,hey channeli(e feedbac+ from the mar+et place to all these units, so that these units
can fine tune their activities with the changes in the mar+et place.
4utside the company, the sales managers are supposed to maintain effective relationship with
customers, channel partners, 5,6 service providers, opinion leaders and influencers, etc.
Sales managers are also re)uired to participate in preparation of information critical to the
ma+ing of +ey mar+eting decisions, such as budgeting, )uotas and territories. !n many
companies, they are also re)uired to participate in decisions on products, pricing, promotions,
distribution policies, mar+eting channels, etc.
,hus, a sales manager is both an administrator in charge of personal-selling activity and a
member of the e-ecutive group that ma+es mar+eting decisions of all types.
,here are distinct differences in the roles of bottom and top-level sales managers. ,he main
difference is the amount of time they spend on each of their tas+s. 6ower-level managers spend
the ma*ority of their time on staffing, directing and monitoring salespeople. ,op-level
managers generally focus on planning, organi(ing and coordinating their sales strategy with
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overall corporate ob*ectives. ,hey also forecast sales, set ob*ectives, develop strategies and
policies, and establish budgets.
Systems Selling:
Definition: 7Sales strategy in which interloc+ing goods and well integrated services are offered
in place of isolated and independent items8. Selling of main and complimentary products so that
the customer gets a solution under one roof 9from one seller only: to solve his problem . need 5uying
a pac+aged solution to a problem from a single seller, thus avoiding all the separate decisions involved
in a comple- situation.
E-amples: Pac+aged tour operators, 6ift installation, 5uying of inverters 9including installation,
regular maintenance, etc.:, while you purchase a car 9the dealer organi(es for you ",4 registration,
road ta- payment, insurance payment, car loan, e-tended warranty, ,eflon coating and rust proof
painting, etc.:, marriage ban)uets 9venue for the event, decoration, food, music, photography, etc:.
Selling of services:
!ntangible services include professional services li+e law, accounting, consulting, advertising and P";
many financial services<private ban+ing, financial advising, insurance, and bro+erage; 5=5 software
<E"P and >"? systems and databases; and various out-sourced corporate functions li+e call centers,
telecom.computer service contracts, benefits administration, and real property management.
1hy is selling a service so different from selling a product@ !n some ways, the principles should be the
same. ,he ob*ective is to get the prospect to agree that the way to solve their problem is to use your
product or service.
5ut there are some differences between a product and a service, which re)uire different sales
techni)ues:
The element of trust: !tAs never possible to +now e-actly what will be received until the
service has been given
The sales person as part of the service: ,he product sales person can never be part of his or
her product. ,he product has its own dimensions and specifications which are self contained
and uni)ue. 5ut a sales person selling a service is often part of the Apac+ageA - especially if it is
you, selling your own service.
A service can't be stored: Bou canAt ma+e it in advance and stoc+ it for selling later. nd each
time you deliver a service, itAs going to be slightly different.
So, how can you ma+e the process of selling a service that much more effective@ 3ere are a few )uic+
ideas for you to e-periment with, adapt and adopt:
#. Use credentials and testimonials: ,hese can be concrete evidence that your service has
wor+ed for other people. nd if your e-isting satisfied customers donAt volunteer testimonials,
as+ for them. BouAll seldom get a refusal.
=
=. Don't be vague about your service: service is by nature a series of promises until the
benefits have been delivered. So ma+e your promises as concrete as possible. Paint a A1ord
PictureA . Sell both APromise and ProofA. 9,here are articles on each of these in the Archive:.
5e very, very clear about what you are offering.
C. Give free samples: !f you li+e, this 1eb Site offers free samples in the form of advice, which
are useful enough to convince some people 9you, hopefully!: that our consultancy is worth
hiring. 5ut be careful not to give too much away, or youAll have nothing to sell. ?ost of the
advice on this site can be made much more effective by using our consultancy to guide your
business through the process of improving its selling and mar+eting. End of sales plug!
D. Make your service different: Product manufacturers try to ma+e their products different from
their competitors. !tAs even more important to show how your service offers something
different. nd ma+e sure that the differences are ones which are important to the prospect.
"ead the rchive article on ASelling BenefitsA.
E. Don't sell your time: !f you are selling a time-based service, try not to sell it on the basis of so
many hours wor+ed. Sell it on so much per solution or pro*ect. ,his way, you remove the fear
barrier that you might be trying to spin the pro*ect out. nd youAll be offering a firm outcome
for a fi-ed price. Sure, thatAs not always possible, but try to ma+e this type of offer to new
prospects. E-isting customers may trust you enough to buy on a time-based proposal.
%. Think of your service as a product: ,his may seem a contradiction, after saying that a service
is different in important ways. 5ut many of the solid sales principles apply e)ually to a service
as to a product. 1hen you are reading about sales and mar+eting methods which seem to apply
more to a product, try to adapt them to selling your service. 4ften, they will wor+ e)ually well.
service does not give instant gratification. !t generally re)uires a little more wor+ on the consumer/s
part and can cost more in the long run than a product. 1hen selling a service, you don/t sell the
features, but the benefits. 1hy is this service worth the cost@ ,he commitment@ Bou need to be able to
e-plain what ma+es it really worth it. lso, generally, most services can be provided by a lot of people.
Bou need to e-plain what ma+es you different, how you are going to ensure that they will receive a
different e-perience with you instead of going with others.
Personal Selling
Personal selling occurs where an individual salesperson sells a product, service or solution to a client.
Salespeople match the benefits of their offering to the specific needs of a client. ,oday, personal
selling involves the development of longstanding client relationships.
!n comparison to other mar+eting communications tools such as advertising, personal selling tends to:
'se fewer resources, pricing is often negotiated.
Products tend to be fairly comple-
,here is some contact between buyer and seller after the sale so that an ongoing relationship is
built.
>lient prospects need specific information.
,he purchase tends to involve large sums of money.
C
S!!"#G $%&'SS:
Steps in selling process:
#. Prospecting
=. >all planning
C. ,he visit F preliminaries
D. Presentation
E. ,rial close
%. 6istening to the ob*ections
$. 4b*ection handling
G. ,rial close
H. >lose
#&. Iollow-up and service
() $rospecting
Prospecting identifies potential customers. 6ead generation is a step prior to prospecting. lead is also
referred to as suspect. ,he term suspect indicates that a person is suspected of being a prospect. Ior
every lead 9or suspect:, a salesman has to as+ some )uestions and satisfy himself that there is chance
that he may become a customer. ,hen that lead is categori(ed as )ualified prospect.
,he )uestions used in )ualifying a lead as a prospect are:
#. Does the person need the products or services that ! am offering@
=. Does the person perceive the need@
C. Does the person have sincere desire to fulfill his need@
D. >an this person/s need be converted into a want for the products that ! am offering@
E. Does the individual have the ability to pay@
%. 1ill the transaction with this person be profitable@
,he sales person will generate a list of prospects or )ualified prospects for each period say for each
day and ma+e sales visits. Every salesman needs ade)uate list of prospects to earn his daily bread
through sales.
3ow to generate leads and prospects@
,he sources which provide leads can be categori(ed as follows:
D
J >old calls
J Personal ac)uaintances
J 5ird dogs
J People with influence in a locality
J E-hibitions and public events
J Kews paper and other media
J 6ists and directories 9telephone directory:
J 4ld accounts
>old calling is door-to-door visit by the salesman to each house in a neighborhood to locate people
with a need for the product he is offering.
Personal ac)uaintances can be the leads. ,hey can also suggest their neighbors as leads.
5ird dogs are people, who +now residents well such as real estate sales person, gas station attendant,
medical shop person, etc. who can give some information.
People with influence in a locality li+e social wor+ers, political leaders can be approached to get
suggestions regarding persons who are li+ely to have the need for the product.
E-hibitions and public events can be used to attract leads. ,he salesman can distribution some
literature or pamphlet or e-hibit the product and the persons who approach him become the leads.
Kewspapers and other media li+e internet can be gleaned to locate persons.
,elephone directory provides scope for cold calling through phone. Similarly other directories of
various professionals etc. are a useful source for leads.
4ld customers can be re)uested to suggest their friends who may have a need for the product.
*) SA!S 'A!! $!A##"#G
E-cept in retail counter sales, and selling situations similar to this wherein the customer himself wal+s
up to the salesman, salesman has to meet the prospect and interact with him to offer his product as a
solution to the prospect/s need and want. Letting an opportunity to meet the prospect is the first step in
this process. >old calling can be tried, but for many items, the prospect may not be able to spare time
at the instant the salesman barges in. ,he practice of ma+ing an appointment before calling on a
prospect can save the salesperson hours in time wasted in traveling and waiting to see a person who is
absent or busy.
ppointment ma+ing is often associated with a serious professional image, and it is treated as a
gesture of respect toward a prospect. !f the prospect gives an appointment, he will spare more time to
interact with the salesperson and listen to his point of view, his presentation. list of appointments
E
aids a salesperson in allocating his day/s selling time. ppointments can be arranged by postcards 2
letters, telephone, emails, or during cold calls.
Ior ma+ing an appointment over telephone, it is advisable to plan and write down what is to be said.
,his will help in presenting the message concisely. ,he sales person has to identify himself clearly,
state the purpose of the call and present interesting information about his product and see+ the
interview. ,he interview see+ing sentence is preferably put forward as a )uestion giving a choice of
time to the prospect. >an ! come today or is it more convenient to you tomorrow@ >ould it be in the
morning or you prefer evening@
ppointments are easy to come by if your old satisfied customers tal+ to the prospect on behalf of you
and arrange the interview.
salesman has to believe in himself. Bou have a good offer for the prospect and he will benefit by
accepting your offer. >onfidence can be developed by +nowing your products better and customer
needs better. 1hen you are see+ing appointment, you have to be internally confident.
Successful salespeople ma+e friends with people around the prospect. >ar sales people spea+ to
drivers as e)uals. ,he security persons of a building need to +ept in good humor. ,hey can ma+e entry
into the building easy and can even give some information on leads.
salesperson need not waste time in endless waiting. 4nce an acceptable amount of waiting time has
passed, he can inform that he has another appointment to ma+e and can fi- another time for the
appointment.
,he actual sales call needs to be planned. 5y planning the sales call the sales person becomes
confident. s a part of the planning, an attempt is made to understand the need of the prospect. ,he
prospect appreciates a salesman who shows an understanding of his need. salesperson/s ability to be
fluent in his interaction creates a professional image. ,his professional image increases sales.
,he sales call plan has four components.
#. ,he call ob*ective
=. ,he customer profile
C. ,he customer benefit plan
D. Presentation that ta+es into consideration the call ob*ective, customer profile and the benefit plan.
,he presentation that is planned must capture and maintain the prospect/s attention. !t has to lead to
prospect/s showing interest. !t then has to increase his desire to own the product. ,hen only the action
to buy will be underta+en by the prospect.
,he salesperson has to ensure that the presentation.interaction that he has planned has statements,
e-hibits, and actions that result in attention, interest, desire and action on the part of the prospect.
%
+) Approaching the $rospect
,he first impression a salesperson ma+es is important. !f this impression is favorable, the prospect is
more li+ely to listen to welcome and listen to the salesperson. !f it is not favorable, he may not
cooperate and may erect communication barriers even though it is a prearranged meeting.
,he first impression is centered on the image pro*ected by the salesperson/s appearance and behavior.
Iollowing are some suggestions to be followed.
#. 1ear appropriate conservative business clothes.
=. 5e neat in dress and grooming.
C. Do not smo+e, chew gum or drin+ during approach to the customer
D. Meep an erect posture and pro*ect confidence and warmth.
E. s+ permission to sit down if the prospect has not offered the seat.
%. Show enthusiasm.
$. Smile
G. Do not begin with apology for ta+ing the prospect/s time. 5elieve it, you are there to help him first.
H. Do not imply that you have not planned the call.
#&. ?aintain eye contact with the prospect.
##. !f the prospect offers to sha+e hands, do so with a firm grip.
#=. "emember the prospect/s name - correctly use it in greeting him
pproach techni)ues:
- 4pening with a statement
- 4pening with a demonstration
- 4pening with a )uestion or )uestions
&pening ,ith a statement
Iour types opening statements are normally used:
#. !ntroductory approach
!t opens with the salesperson/s name and business. 73ello, ?r. NNN., my name is NNN,
representing NNNNN.8
1hen a salesman is meeting a prospect for the first time this approach is appropriate.
=. >omplimentary approach
,his approach starts with a compliment to the prospect.
E-amples: Bour office is very nicely decorated. !t is +ept very tidy, etc.
$
C. "eferral approach
!n this approach, the person who referred the salesperson to the prospect is mentioned. 7?r. Desai,
mit 0oshi, your colleague suggested that ! meet you and discuss our offerings with you so that your
organisation can immensely benefit fro, our e-pertise.8
D. Premium approach
!t is presumed that everyone li+es to receive free gifts. ,he salesperson uses a free sample to attract the
attention of the prospect for his product and presentation. 7?r. Paul, our guide on mutual funds is a
free gift for you. !f you decide to share your savings and investment goals, we can provide ideal
solutions for you to achieve your goals.8
Demonstration openings
!n these openings something of interest to the prospect is physically demonstrated. !n the product
approach, the product is placed on the table or given to the prospect and salesperson waits for the
conversation to start from the prospect. te-tboo+ representative may give a new te-t to a professor
and wait for the professor to initiate the conversation after he flips a few pages from the boo+.
&pening ,ith -uestions
1hen a person wal+s into a store and goes to a counter, the counter salesperson says 7Bes sir! 3ow
can ! help you@8 ,his )uestion starts the interaction between the counter salesperson and the prospect.
,he )uestions can be regarding benefits, regarding some information, etc.
&pening statements. -uestions and demonstration facilitate the initial contact for further
interaction ,ith the prospect)
$%S#TAT"&#
Goal of interaction
,he main goal of interaction with the prospect many times is to sell the product or service. ,he first
few minutes of the meeting with any customer is spent in determining the prospect/s mood and
situation, his need and effort is made to capture his attention and interest in the conversation that is
going to follow about the product or service.
s a part of the interaction, a salesman is going to intensify the need of the prospect, convert it into a
want, and create a favorable attitude for the specific product he is offering. ,o create the want for his
company product, the sales man presents the features, advantages and benefits of his product, and his
business proposal for the transaction.
,he salesman has also the *ob of convincing the prospect that not only he has to buy the product, but
also that he has to buy from the salesman himself, because he is the best source to buy from and get
service from.
G
/S$"#0 1 Series of -uestions
SP!K is a )uestioning techni)ue in which series of )uestions are as+ed to bring out the need of the
customer, intensify and convert it into a want for the product the salesman is offering.
OS/ stands for situation )uestions. ,hese )uestions aim at the situation that gives rise to the need. Ior
e-ample, a salesman for children education product may tal+ of children the prospect is having, their
current education and their plan for future education.
OP/ stands for problem )uestions. !K this group of )uestions fall, )uestions that bring out the problems
or difficulties perceived by the prospect relative to the situation )uestions. !n regard to the education
plans of children, these )uestions bring out the need for funds in the future and the difficulties the
prospect is facing to plan for them.
O!/ stands for implication )uestions. ,he implication if the problem is not solved is brought out in this
group of )uestions. ,he fact that the child has to forego the preferred course or the family getting into
financial difficulties in the absence of a financial plan for education is brought out in this group of
)uestions.
OK/ stands for need payoff )uestions. !n this group of )uestions, the effort is to ma+e the prospect
agree that he has an important e-plicit need and he is interest in listening to the solution to the
problems.
,hus SP!K )uestions set the bac+ground for a presentation of the features, advantages and benefits of
the salesman/s offer.
Actual $resentation
,he presentation of the salesman/s offer has to follow three essential steps.
Step #. Iull discussion of the features, advantages, and benefits of the offer 9product or service:.
Step =. >ustomer value plan: E-planation of how the customer is going to use the product.
Step C. 5usiness proposition: "elating the value of the product to the cost of the product. ,he general
recommendation is to discuss the price of the product last, as you want the prospect to listen to the
benefits and value first and cost later.
,he presentation of the offer needs to include apart from the persuasive communication from the
salesman, participation of the prospect, visual aids, proofs or proof statements, demonstration of the
wor+ing of the product, and some dramati(ation.
H
survey of sales managers brought out the importance of three factors in sales presentations -
enthusiasm, persuasive communication, and verbal s+ills.
T%"A! '!&S
!n the presentation at various points of time whenever the prospect shows strong conviction about the
merits of the product or offer, salesman needs to try for a close.
&b2ection 3andling
4b*ection or resistance to the re)uest of the salesperson is labeled as a sales ob*ection. Salesmen have
to welcome the ob*ections because toughest prospects are those who do not say anything. 4ne cannot
ma+e out whether they are interested, bored or *ust being polite. n ob*ection shows that prospect is
involved in the conversation.
Salesmen have to be prepared for giving a satisfactory reply to the ob*ections raised by prospects.
4b*ections F >lassification
,he usual ob*ections encountered during sales process are categori(ed as:
- 3idden ob*ections
- Stalling ob*ections
- Ko-need ob*ections
- ?oney ob*ection
,echni)ues to "eply to 4b*ections
,here are several techni)ues to respond to ob*ections.
- Pass up the ob*ection
- nticipate the ob*ection
- Iorestall the ob*ection
- "ephrase the ob*ection as a )uestion
- s+ )uestions regarding the ob*ection
- 5oomerang the ob*ection
- Directly deny the ob*ection
- >ompensate for the ob*ection
- 4btain a third-party answer to the ob*ection
Trial 'lose
,he salesman has to try to do the trial close as he gives a satisfactory response to an ob*ection. ?any
ob*ections come up only after the salesman tries trial close.
#&
'losing a Sale
>losing is the process of helping people ma+e a purchase decision that will benefit them. Salesmen
help people ma+e that decision by as+ing them to buy. ,he very fact that a prospect is meeting a seller
and having a conversation with him means the prospect has an interest to buy the product. 3ence
many times the prospect may be ready to ma+e the buying decision very early in the meeting.
4hen to Try to 'lose the Sale
,he simple answer is when the prospect is ready. ,o decide the point when the prospect is ready,
salesmen have to observe for buy signals or willing-to-buy signals from the prospect.
5uy Signals
buying signal or buy signal or willing-to-buy signal refers to anything prospects say or do to indicate
that they are ready to buy. Some of them are:
- Prospect as+s )uestions regarding price and delivery dates.
- Prospect as+s the opinions of others.
-Prospect rela-es and becomes friendly.
-Prospect pulls out the purchase order form.
-Prospect loo+s carefully the product on offer
'losing Techni-ues
lternative choice close
ssumptive close
>ompliment close
Summary of benefits close
>ontinuous yes close
?inor points close
,-account or balance sheet close
Standing-room-only close
5&!!&46U$ 7 S%8"'
satisfied customer is the best advertisement to you as a salesman and to your product. 5ut if you
ma+e a sale and runaway, you do not +now the feelings of your customer. ,he prospect became your
customer after buying from you. 3igh performing salespersons do the follow up and provide any
service the customer re)uires and convert this interaction into further sales to the customer or to his
friends and ac)uaintances through referrals.
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Service will +eep customers and increase sales. 'se your company/s goods return policies *udiciously
to replace defective products with customers. Lo bac+ to the customer, chec+ the product that you
have sold and ma+e sure that the customer is getting the e-pected services from it.
5ecome a customer benefit oriented salesman, your profits swell through your efforts to ma+e the
benefits of customers swell. Develop your reputation from providing benefit to customers. Provide
service above and beyond the call of duty. lways schedule some time in your daily sales plan for
delighting customers. Delight comes to a customer when you deliver something beyond e-pectations.
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