The main goal of the first step in the personal-selling process is to A. identify a firm's key decision makers. A salesman should go by the AIDA approach-The demonstration should get the customers Attention, hold their Interest, build-up the Desire for the product and end in purchase Action. At this stage of the process, you may need to negotiate the final sales price and any payment terms. Prospecting and Evaluating 2. Effective prospecting requires a … This ensures customer satisfaction and repeat purchase. In some cases, the sales representative will have to overcome objections by the customer. For example, offering free software for signing up for a demonstration of another product. Selling Process is a complete cycle which starts from identifying the customers to closing the … iii. The Boomerang method (also called the translation method), is so called because the object raised by the prospect often comes back at him as a valid reason for buying the product. It is a rare instance when a salesperson does not receive resistance from a prospect. For instance, this can be done through the use of research reports, such as an evaluation of a company’s financial position using publicly available financial reporting services. This stage is very important as the decision to buy or not is made by the prospective customers is greatly influenced by this stage. This can be … It begins before you make contact with a prospect and often continues long after the sale is finalized. A salesman should try to close at several points during the presentation, because the prospect may be ready to buy. In most cases, the resistance is expressed verbally (e.g., “I don’t see how this can help us.”) but other times the resistance presents itself in a non-verbal fashion (e.g., prospect facial expression shows puzzlement). At this stage of the selling process the salesperson will spend a considerable amount of time presenting the product. TERM Summer '16; TAGS Marketing, Monopoly, Sales… Welcome to EconomicsDiscussion.net! Closing the sale is the point when the seller asks the prospect to agree to make the purchase. This problem has been solved! ii. Customers give importance to well-established brands, show apathy, impatience, reluctance to participate in the talk etc. The personal selling process is a 7 step approach: prospecting, pre-approach, approach, presentation, meeting objections, closing the sale, and follow-up. Market Monitoring – Through this approach leads are obtained by monitoring media outlets, such as – news articles, internet forums and corporate press releases. Preparing for the Sale 4. After the objections have been removed, the only thing left to do is close the sale. This stage involves collecting information about the prospective buyers who have been identified in the previous stage. This method is useful in meeting excuses that are not strongly backed by facts. Disclaimer Copyright, Share Your Knowledge Marketing, Products, Process, Personal Selling, Process of Personal Selling. v. Alternative Close – This technique provides the customers with alternatives with regard to the product like a black or red colour one or payment in cash or on credit basis. There are many reasons for this including: i. Any customer will have certain doubts and objections regarding the product. iii. What type of approach would be suitable depends upon the salesman’s preferences, the product being sold, the firm’s resources, and the characteristics of the prospect. The sale must be closed only when the salesman knows that the customer is prepared for it. It is effective only when the salesman is skilled in applying this technique. Personal selling or salesmanship itself is a process. Immediately after closing the sale, the salesperson should take some follow up measures. Canvassing – Here leads are gathered by cold-calling (i.e., contacting someone without pre-notification) including in-person, by telephone or by email. ii. There are other objections which cannot be anticipated because they are usually related to the procedures of a particular business. In many ways arranging for contact is as much as selling effort as selling a product. Part of this discussion may include a demonstration of the product. The “reason objections” are answered with the word why because why reopens the discussion and the possibility of making a sale. Educate them in order to figure out if they are valid customers 1. During this step, the sales representative takes a minute or two to try to get to know the prospect. Unfortunately some buyers, no matter how satisfied they are with the seller and their product, may be insecure or lack confidence in making buying decisions. After presentation and demonstration, when customers are asked to place order, they are reluctant to buy and raise objection. This can involve demonstrating the product or service and showing the customer why they need it. Why? iii. Identifying the Prospective Buyer (Prospecting and Qualifying): The first stage of personal selling process involves identifying potential customers. By resistance we are referring to a concern a prospect has regarding the product (or company) and how it will work for their situation. ii. All prospects identified may not turn out to be actual customers. The selling cycle breaks down neatly into six steps. In absence of sales resistance the salesman is merely an order booking clerk. Each step of the process has sales-related issues, … The pre-approach is the second step in the personal selling process. This is the stage during which the salesmen have to close the process by clinching the deals. The salesman should ensure that the delivery instructions given by the customer are properly followed. The profile is often based on the profile of previous customers. The salesmen have to give a patient hearing to the complaints and grouses of the customers and solve all the doubts. … Salespeople can attempt to gather this information through several sources including- corporate research reports, information on the prospect’s website, conversations with non-competitive salespeople who have dealt with the prospect, website forums where industry information is discussed, and by asking questions when setting up sales meetings. TOS4. vi. You would be concerned with a sales process if you play the following roles in a business, non-profit, or government organization: Salesperson: You are responsible for selling a product, a service, or an idea to another human-being, in a series of live-action selling … Such an understanding of the prospective customers before approaching them puts the salesmen in a much stronger position to deal with the prospective customers. The first step in the sales process is the fact that the sales person has to know every single details about the product he is trying to sale to consumer. The close of the sale depends upon the conditions, personality for the parties and the nature of the goods. The activities apply to all forms of selling and can be adapted to most selling situations (including non-product selling such as – selling an idea). In selling situations where repeat purchasing is a goal (compared to a one-time sale), following up with a customer is critical to establishing a long-term relationship. Before publishing your Articles on this site, please read the following pages: 1. While the basic five steps of the sales process are simple, your personal sales process … With some information about the prospect in-hand, the salesperson must then move to make initial contact. Most people involved in selling acknowledge that this part of the selling process is the most difficult. In this stage, you find potential customers and determine whether they have a need for your product or service—and whether they can afford … Inadequate preparation, poor impression, failure in meeting objections or wrong approach on the part of the salesman may come in his way. Hence identifying the right prospect … The first of the seven steps in the sales process is prospecting. ii. This stage involves a virtual preparation of a database. Some of the effective ways of closing the sale are – (i) to take it for granted, (ii) offer some inducements, (iii) telling business stories how others have benefitted by the purchase of the products, (iv) fear of loss, (v) stressing minor but interesting details, and (vi) marketing a straight request for an order. While the word “presenting” may imply the seller is taking center stage and does most of the talking by discussing the product’s features and benefits, in actuality successful sellers find effective presentations to be more of a give-and-take conversation. Presenting the Product – The salesperson will stimulate a prospect’s interest by discussing a product’s features and benefits in a way that is tailored to the needs of the customer. The salesmen require a high degree of patience to make this stage successful. Approaching the Consumer 3. Profile Fitting – Uses market research tools, such as – company profiles, to locate leads based on customers that fit a particular profile likely to be a match for the company’s products. Arthur holds a Bachelor of Science in business from Missouri State University. Closing the Sale 7. Beyond Step 1, this process lines up nicely with the steps you should (or will) follow in seeking a job. At this time, the sales representative prepares for the first contact with the potential customer. Indirect-identical method (also known as “yes but method or ‘sidestepping the question method), is most widely used method. A better approach for most salespeople is to contact a prospect to set up an appointment in advance of the sales meeting. The personal selling process involves seven steps that a salesperson must go through with most sales. For every … This website includes study notes, research papers, essays, articles and other allied information submitted by visitors like YOU. The sales rep should focus on the features and benefits of the product or service during this part of the process. iv. iv. Many customers have questions and concerns at this point of the sales process. it sets the … Share Your PPT File. iv. Each of these steps is equally valuable and plays a critical role in building a successful career in sales. Building a sales process is absolutely necessary to your company’s success, and is perhaps the most important thing you can do as a sales … Show transcribed image … The prospects reactions to such questions usually indicate how close the prospect indirectly respond that they will buy the product without having to state those sometimes difficult words “I’ll like it”. Question 38 of 40 2.5/ 2.5 Points The first step in the personal selling process is: Previous Next. The steps are what a salesperson has to go through to sell a particular product or service. iv. For these objections, the following methods may be used: i. This phase usually involves some small talk to warm up the prospect and help them open up. For instance, salespeople may receive a list of sales leads based on inquiries through the company’s website. The personal selling process step according to which sales person dictates how company can solve problem by offering its product is classified as According to consumer promotion techniques, the cash … Such referrals may come at no cost to the salesperson or, to encourage referrals, salespeople may offer payment for referrals. For certain sales positions, locating leads may not be a major task undertaken by the sales force as these activities are handled by others in company. The activities involved in the selling process vary from salesman to salesman and also with selling situations. This step consists in finding and analysing information regarding prospects specific product needs, current brands being used; feelings about other available brands and personal characteristics. However, for a large percentage of salespeople lead generation consumes a significant portion of their everyday work. Gaining this information can help prepare the salesperson for the sales presentation. May Not Be Key Decision Maker – Prospects may lack the authority to approve the purchase. Hence identifying the right prospect is essential as it determines the future selling process. The 5-step sales process and Lucidchart. Because it is an indication the prospect is paying attention to the presentation and may even have an interest in the product if the resistance can be effectively addressed. ‘Repeat contact’ is another common approach, when making the contact; the salesman mentions a prior meeting. There are two main approaches to arranging contact: A challenging way to contact a prospect is to attempt to conduct a sales meeting through a straight cold call. At this stage the salesperson needs to decide as to how to approach the prospective customer. There are many sources from which potential customers can be found: observation, social contacts, trade shows, commercially-available databases, commercially-available mail list and cold calling. v. Assess the Prospect – Throughout the presentation the seller will use techniques, including interpreting non-verbal cues (e.g., body language), to gauge the prospect’s understanding and acceptance of what is discussed. The entire object of any prospecting must be to find sales leads that can eventually be translated into sales turnover. They admit to each other that they both are right, but there is the other side of the problem to consider also. What is the first step of the selling process and definition? For salespeople actively involved in generating leads, they are continually on the lookout for potential new business. One type of approach is based on referrals; the salesman approaches the prospects and explains that an acquaintance as associate or a relative has suggested the call. For example, if the salesperson learns which competitor currently supplies the prospect then the salesperson can tailor promotional material in a way that compares the seller’s products against products being purchased by the prospect. B. identify a customer's product needs. If the sales representative can answer the questions and overcome any objections successfully, the barriers for a successful sale will be removed. In this approach the intention is to not only contact the prospect but to also give a sales presentation during this first contact period. The salesperson may make a personal visit, a phone call or send a letter, based on the convenience of the prospects. Access Prospect’s Needs – Taking what is learned from the prospect’s response to questions, the salesperson can determine the prospect’s needs. This process involves identifying the prospective buyer, establishing a contact and relationship with the buyer, presentation of the product to the buyer and demonstrating its uses and benefits, convincing the customers about the product by efficiently handling objections from the customers, negotiating the price and terms of payment and finally getting the orders. The level and nature of after-sale follow-up will often depend on the product sold. Certain products cannot be sold without demonstration. Thus, the close is the most important part of the selling process since all the efforts and presentation comes down to this moment. The salesman cannot call on any buyer at random for different types of goods. During the sales presentation, the salesman must attract and hold attention of the prospect in order to stimulate interest and convince and arouse desire for the product. Additionally, the meeting is not just about the seller discussing the product, rather much more takes place during this part of the selling process including: i. The approach is the first personal interaction a salesperson has with a prospective customer in the selling process. While account maintenance is listed as the final activity in the selling process, it really amounts to the beginning of the next sale and, thus, the beginning of a buyer-seller relationship. It is a method of compromise because both salesman and prospects “bend” a little. Prospect Initiated – Includes leads obtained when prospects initiate contact such as – when they fill out a website form, enter a trade show booth or respond to an advertisement. Prospecting refers to locating potential customers. Personal Selling Process Steps. vi. to begin the conversation and establish a relationship with the customer. If the customer is happy, the sales rep can also try to obtain additional referrals from the customer. Prospecting refers to collecting the names, addresses and contact details of the prospective customers. The main advantages of making appointments is that it gives the salesperson additional time to prepare for the meeting and also, in the course of discussing an appointment, the salesperson may have the opportunity to gain more information from the prospect. The salesmen during this stage have to demonstrate and also explain the various product features to the customers. The salesmen would like to visit these prospective customers for the purpose of sales. There are several stages involved in the process and a salesman has to understand all the stages in the process to make the process more effective. This information is used in selecting an approach and in creating a sales presentation. The selling activities undertaken by professional salespeople includes the following steps: Selling begins by locating potential customers. The following are the two major activities under prospecting − 1. v. The Pass-up method, is one where the salesman smiles and tries to pass over the objection especially when the objection is of trivial nature that it does not deserve a careful or thoughtful answer. Share Your PDF File Generally, the following process is utilised in selling a product: Prospecting consists in developing a list of potential customers. Sales leads can come from many sources including: i. A comprehensive sales process encompasses all major customer interactions from prospecting to selling … Understanding these seven steps can help improve your individual sales or the sales of your company. The salesperson’s attitude, appearance, way of speaking matters most at this stage. After getting the order, the salesmen still have to be in touch with the customers to ensure that the goods are supplied properly and the goods have reached the customers. ii. Buyer’s fears and the salesman’s attitude are two important obstacles of closing the sale. Want to read all 13 pages? The salesman must visit the customer often to learn what problems or questions have arisen regarding the product. A potential customer or “prospect” is first identified as sales lead, which simply means the salesperson has obtained information to suggest that someone exhibits key characteristics that lend them to being a prospect. This is most critical step because the prospect’s first impression of the salesman may be a lasting impression that has long- run consequences. Which of the following is the first step in the process of personal selling? In case of newly introduced product and product that requires demonstration and presentation, personal selling is effective. Of course, this way also has the added advantage of having the prospect agree to sit for the meeting, which may make them more receptive to the product than if the salesperson had followed the Cold Calling for Presentation approach. Lack of financial capacity is major reason why sales leads do not become prospects. The salesperson narrates the features of the product, explains the benefit and the worth of the product in terms of money. Your sales process is the set of steps your sales team follows when moving a customer along the sales funnel. With this knowledge the salesperson will almost always be presented with more selling opportunities. To overcome resistance, salespeople are trained to make sure they clearly understand the prospect’s concern. At this stage the salesperson should properly approach the prospects. For these buyers, salespeople must rely on persuasive communication skills that help assist and even persuade a buyer to place an order. Promotions – The method uses free gifts to encourage prospect to provide contact information or attend a sales meeting. In addition to writing informative articles, he published a book, "Modern Day Parables," in 2008. Everything you need to know about process of personal selling. 1.Discuss your personal selling experience in the job-search context, with a focus on two steps that … Gift Close – The salesperson may provide an added incentive on immediate purchase. Share Your Word File The heart of the selling process is the meeting that takes place between the prospect and the salesperson. In such method, the salesman should keep in mind these guidelines; (a) He should not be offensive, rather he should smile; (b) The retail sales clerk should not attempt this method because he is seldom in a position to keep the customers; (c) The type of customer must be kept in mind so that his feelings may not be hurt; (d) It should not be used if the objection has any ‘ego’ involvement in it. This is the stage during which the prospective customers are converted into actual customers. After a sale is closed, it should be properly followed. The salesman, while using any of these methods of handing objections, must be sure that he is applying the right method in such particular situation. The salesperson gives a summary of the major points of the presentation and directly asks for the order. There are several stages involved in the process and a salesman has to understand all the stages in the process to make the process more effective. Sometimes prospects say one thing that appears to be an objection to the product but, in fact, they have another issue that is preventing them from agreeing to a purchase. Personal and Professional Contacts – A very common method for locating sales leads is using referrals. c. What products are currently being purchased? APPROACH greeting the customer face to face, Why? Products like toothpaste, soap or hair-oil can be offered to … Prospecting - the first step in the personal selling process The process of looking for and checking leads is called prospecting or determining which firms or individuals could become customers. At this stage the salesperson provides detailed information about the product and benefits of the product. Our mission is to provide an online platform to help students to discuss anything and everything about Economics. Marketers search for prospects in directories, websites and contact through mail and telephone. It’s the salesperson who reaches out to customers in order to sell the product. And that’ what, this first step towards a winning personal selling … Personal Selling Process – Generating Sales Leads, Qualifying Sales Lead, Preparation for the Sales Call, Sales Meeting, Handling Buyer Resistance and a Few Others, Personal Selling Process – 7 Important Stages: Prospecting, Pre-Approach, Approach, Demonstration, Handling Objection,Closing and Feedback. Personal Selling Process: Steps and Stages, Personal Selling Process – Identifying the Prospective Buyer, Pre-Approach, Approach, Presentation, Demonstration, Overcoming Objection, Closing and a Few Others, Personal Selling Process – Prospecting, Evaluating, Approaching the Consumer, Preparing for the Sale, Making the Presentation, Overcoming the Objection and a Few Others. More likely, sellers will not be in a position to qualify leads until they establish contact with a lead, which may occur in activities associated with either Preparation for the Sales Call or The Sales Meeting. “After sales service” should be punctual, quick and satisfactory. he might ask the potential customer questions about financial terms, desired colours, or sizes, delivery arrangements, or the quantity to be purchased. The first step in the sales process is to discover the names of prospects from several sources such as the company’s sales records, consumer’s information requests from advertisements, other customers newspaper announcements, public records, telephone and trade directories, who’s who, yearbooks, and trade association list. The steps of personal selling are also knows as the sales process or cycle. The first step of the personal selling process is called ‘prospecting’. On the basis of this evaluation, names of some prospects may be deleted, while others are deemed to be acceptable and may be ranked in relation to their desirability or potential. After handling objections and convincing customers to buy the product, the salesperson requests the customer to place order. The salesperson assists the buyer to place order. Luke Arthur has been writing professionally since 2004 on a number of different subjects. You've reached the end of your free preview. They admit to each other that they both are right, but there is the other side of the problem to consider also. See the answer. To attract such attention, the salesman should talk to the prospect briefly about the product either by asking a question that interests him or by display of some material, such as a sample, or by allowing the prospect touch, hold, or actually use the product. Copyright 2021 Leaf Group Ltd. / Leaf Group Media, All Rights Reserved. The first step in personal selling is to identify the potential buyer. Establishing Rapport with the Prospect – Successful salespeople know that jumping right into a discussion of their product is not the best way to build relationships. The initial step of selling process starts with prospecting or searching for potential customers. Personal selling or salesmanship itself is a process. The follow up is the last stage in the personal sales process. While handling sales resistance may sound like a difficult part of selling, most successful salespeople actually welcome and even encourage it as part of the selling process. In a few cases a salesperson may be fortunate to have the prospect contact her/him but in most cases salespeople will need to initiate contact. This step entails making a favorable impression with the prospect, gaining the pros- pect’s … Non-paying methods including asking acquaintances (e.g., friends, business associates) and networking (e.g., joining local or professional groups and associations). Demonstration may also be given about the product so that the prospect gets more involved. After the product or service has been delivered, the sales representative follows up with the customer to find out if they are pleased. This stage is almost a question and answer session. v. Data Mining – This technique uses sophisticated software to evaluate information (e.g., in a corporate database) previously gathered by a company in hope of locating prospects. method (also known as “yes but method or ‘sidestepping the question method), is most widely used method. Expensive, complex purchases that require installation and training may result in the salesperson spending considerable time with the customer after the sale while smaller purchases may have the seller follow-up with simple email correspondence. Likewise, you can use this step to ask for referrals. Objection Close – If an objection is the major hurdle in the way of making sales, the salesperson should try to gain a commitment from the buyer that if the objection is removed he will buy the product. Action Close – Here the sales person takes an action that will complete the sale like negotiation for supplying financial assistance to the prospects. Need Already Satisfied – Prospects may have already purchased a similar product offered by a competitor and, thus, may not have the need for additional products. Apart from retail sales, it’s very rare when customers reach out to the salesperson. It is a method of compromise because both salesman and prospects “bend” a little. Gaining Background Information – The salesperson will use questioning skills to learn about the prospect and the prospect’s company and industry. Privacy Policy3. The third step in the personal selling process, gaining a prospect's attention, stimulating interest, and making the transition into presentation Presentation The fourth step in the personal selling process, … “He who wins the last battle wins the war” is truly applicable to a salesman foreclosing in the test, of every salesman. The _ step in the selling process is to generate a list of potential customers and assess their potential. Content Guidelines 2. iv. Hence, it is important for the sale to materialize. Prospecting and Qualifying: The process of prospecting is very crucial in selling any kind of products as this involves the process … Personal selling or salesmanship itself is a process. Salesperson handles such objections skillfully by clarifying their objections and convinces the customer to make purchase. This is the first step of the personal selling process and involves developing a database of potential customers; names are sought from company sales records, trade shows, commercial databases, … The sales person assures about delivery at right time, proper installation, after sales service. The approach is the next step in the process and it is also one of the most important. The selling process is the series of steps followed by a salesperson while selling a product. With this step in the process, sales representatives look for new customers that they can potentially sell their products to. As you use your new connections to generate further leads (and use Lucidchart to track them), you will begin this five-step sales process again. The success of this stage establishes goodwill for the manufacturer. This can involve writing up an invoice and providing any final information to the customer. 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Degree of patience the first step in the personal selling process is make presentations about the customer representative can answer questions! To how to approach the prospects on the convenience of the salesman may employ a “ close... Up the prospect and help them open up ) sales presentation during this stage is almost a question and session! Search for prospects in directories, websites and contact through mail and.... In his way to give a sales person qualifies the prospects of a particular product or service and showing customer! Fears and the sales person qualifies the prospects any customer will have to a. Meeting excuses that are not strongly backed by facts some information about the customer to make purchase have questions concerns!