Sdm@suryadatta: Unit 1: Personal Selling

SDM@Suryadatta : Unit 1 Personal Selling

Psychology in Selling • Some prospects buy their products and/or services after the sales presentation, some do not. • Stimulus (sales presentation)=>Buyer’s decision making process => Response (B, NoB) • Psychological factors of buyer or consumer behaviour – – – –

Attitudes Perceptions Motivations Personality of buyers

Buyers • Consumer Markets – Individual and Household Consumers – Buying decision based on 5 mental stages of the buying process • Problem (or need) recognition – Psycological desire for prestige leads to owning a Skoda car – Thirst (coke) – Hunger (ccokies)

• Information search/collection – Low involvement less investment in time and money » Bread, butter, biscuits – High involvement more investment in time and money » Home, automobile, insurance

• Evaluation of alternatives (see next slide) – Brand beliefs…relevance of attributes of product

• Purchase decision (see slide) • Post-purchase behaviour

• Business (or Industrial) Buyers – {business schools have a separate course Industrial Marketing and Procurement} – B2B business to business

Evaluation of Alternatives • FACTORS – Consumer tries to satisfy a need or solve a problem – Consumer looking for certain advantages or benefits from product or service – Consumer knows that each alternative product or brand has a set of characteristics or attributes that try to satisfy his/her need – The importance and relevance of attributes vary from product to product

• Different consumers give varying importance to these characteristics

Brand/Supplier Evaluation System example • Attribute (or characteristics) for tyres – Price – Quality – Safety – Life

• Weight (importance) – (30, 25, 25, 20) totals 100

• Brand/Supplier beliefs – (0.8, 0.6, 0.6, 0.5)

Purchase decision • In the evaluation stage the consumer forms preferences among the brands – And also an intention to buy the most preferred brand

• The intentions can be changed by – “attitude of others”….relatives, friends, boss, published reviews, chat rooms – “unanticipated situational factors” • Financial problem, health related problem, other product purchase decisions becoming more urgent

High involvement product purchase decisions • Which brand to purchase – Brand decision

• • • •

Timing of purchase How much quantity From which retailer or dealer to buy How to make the payment

Post-purchase behaviour • If customer delighted – High probability of purchasing the product or the brand again

• Dissatisfied customers – May return the product – Stop buying – Tell friends and relatives – Take a legal action – Complain to the company

Buying situations for household and individual consumers • Routine decision-making • Limited decision-making • Extensive decision-making

Buying situations for business buyers • New purchase – Or new task

• Change in supplier – Or modified rebuy

• Repeat purchase – Or straight rebuy

Effective Communication • Get feedback to uncover buyer needs by asking relevant questions • Empathise with the buyer’s feelings, ideas, and situation • Build a relationship based on mutual trust with the customer • Use the selling philosophy of keep it simple, salesperson • Listen carefully to the prospect’s words, feelings and thoughts (and talk less) • Enthusiasm towards the sales job and customer’s business • Use proof stts from objective sources to add credibility to sales message.

Sales knowledge and sales related marketing policies • Company knowledge • Product knowledge • Customers and competitors knowledge – Useful during negotiations – Also while dealing with prospect’s objections

• Sales-related marketing policies – – – –

Pricing Distribution Promotional Product • Product mix (assortment) • New product ideas • Product info, quality, and service policy

Personal selling process • Prospecting and qualifying the sales lead – Needs and also has ability to buy

• • • • • •

Preapproach (precall planning) Approach Presentation and demonstration Overcoming objections Trial close/ Closing the sale Follow-up and service

Prospecting/lead generating methods • Referrals from existing customers • Referrals from internal company sources – Advertising, direct mail, website, trade shows, teleprospecting activities

• Referrals from external sources – Suppliers, intermediaries, bankers,trade associations, commercial dotcom vendors

• Networking by salespersons • Industrial directories • Cold canvassing – Costly and time consuming!!!