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BBA V SEM: SALES MANAGEMENT

Unit II Notes

UNIT II : Salesmanship: Theories of personal selling, Types of sales executives, Qualities of sales
executives, Personal selling process, Showroom & exhibition.

PERSONAL SELLING:
Personal selling consist of contacting prospective buyers personally. It is an act of engaging with the
customers to persuade them to buy the product. Personal selling is a form of direct communication and
interaction between a salesperson and a potential customer. ‘Personal selling is a direct, face to face,
seller to buyer conversation which can communicate relevant facts about the product and the firm
to the prospect, so that he or she may take buying decisions.’ It aims at bringing the right products
to the right customers. It takes several forms including calls by company’s sales representative,
assistance by a sales clerks etc.

Definitions:
• According to William Stanton and Walker, "Personal selling is the personal communication of
information to persuade somebody to buy something”.
• According to Dalrymple and Decarlo, "Personal selling is direct communications between paid
representatives and prospects that lead to purchase orders, customer satisfaction, and account
development."
• According to Philip Kotler, "Personal selling is a face-to-face interaction with one or more
prospective purchasers for the purpose of making presentations, answering questions, and
procuring orders."

Key aspects of personal selling include building rapport and relationships with customers,
understanding their specific requirements, tailoring the sales pitch to match those needs, and ultimately
convincing the customer that the offered product or service will meet or exceed their expectations. This
form of selling allows for real-time feedback and adjustments based on the customer's responses,
enabling a more personalized and effective sales approach.

SALESMANSHIP:
Salesmanship is one of the skills used in personal selling. Salesmanship is all about the skills required
by the salesman to understand the need and emotions of the prospects and offering them various
information, options and benefits to satisfy their need. ‘Salesmanship is the art of successfully
persuading prospects or customers to buy products or services from which they can derive suitable
benefits, thereby increasing their total satisfaction’.

Salesmanship refers to ‘the skills, techniques, and strategies used by individuals or professionals to
promote and sell products or services to potential customers’. It involves persuasive communication,
understanding customer needs, building relationships, and utilizing various methods to influence a
person's decision to purchase a product or service. Effective salesmanship often includes the ability to
convey the benefits and features of a product, handle objections, negotiate terms, and ultimately close
a sale. Successful salesmanship requires a combination of interpersonal skills, product knowledge, and
adaptability to meet the demands of the customers.

DR. TABASSUM ALI 1


THEORIES OF PERSONAL SELLING

Theories of personal selling are the conceptual frameworks that explain the principles, strategies, and
techniques that salespeople use to sell products and services. Understanding different theories of
personal selling can help salespeople tailor their approach to different customers and situations, and
ultimately increase their effectiveness in closing sales and building lasting relationships with
customers.

AIDAS THEORY

A very popular theory in personal selling, AIDAS stands for Attention, Interest, Desire, Action, and
Satisfaction. It is a customer-oriented theory that focuses on the customers’ needs and problems. The
theory states that the prospect goes through five different stages before giving a satisfactory response
to a product. These stages are as hereunder:

1. Attention: In this stage, the customer becomes aware of the product as well as the brand image.
This stage is very important to the salesperson because this is where they attempt to catch the
attention of the customer. Different ways in which to capture the attention of the prospect include
catchy phrases in verbal or written communication, emails, etc.

2. Interest: In this stage, prospects maintain an interest in the product. This stage is of utmost
importance to the salesperson where they communicate the benefits of the product to the prospect
to maintain their interest.

3. Desire: In this stage, prospects develop a liking towards the product or brand. A desire can be
created by using influencing and persuasion techniques such as adding an emotional element to
the sales communication, making prospects aware of what they stand to lose if they do not act on
their needs and desires.

4. Action: In this stage, prospects become convinced of making a purchase or engages in a trial.
Sales persons can use different promotional measures to ensure action.

5. Satisfaction: In this stage, the salesperson has to reassure the customer that they made the right
decision in buying the product.

A continuous AIDAS approach is used by a salesperson to encourage prospects to buy the product of
the company by instilling favourable feelings in their mind regarding the purchase.

RIGHT SET OF CIRCUMSTANCES THEORY

Sometimes called the Situation-Response Theory, the Right Set of Circumstances theory states that
the particular circumstances occurring in a given selling situation result in the prospect responding
predictably. The right set of circumstances theory is a seller-oriented theory and argues that if the
salesperson can successfully grab the prospect’s attention and maintain their interest, and also present
the right stimuli, it will result in the desired response i.e., the sale.

As per this theory, there are two factors which need to be handled by the salesperson and these are-
internal factors and external factors. External factors are the salesperson and the remarks which he
makes during the sales conversation. External factors are controlled by the salesman himself. However
the internal factors are related to the thinking of the prospect and limited to the prospect himself, and
therefore cannot be manipulated by the salesperson. A salesperson can never know how a prospect will
DR. TABASSUM ALI 2
respond, as different prospects have different internal factors i.e. different thought patterns and
processes. Therefore, this theory focuses on the external factors only.

Supporters of this theory suggest that external circumstances should be given more emphasis than
internal ones. While this theory emphasises the importance of the salesperson controlling the situation,
it fails to handle the internal factors that influence the interaction and is unable to assign a suitable
weight to the buyer’s response.

BUYING FORMULA THEORY OF SELLING

The buying formula theory is again buyer-oriented. This theory attempts to explain the cognitive
process that goes on in the mind of the prospect when he decides whether or not to buy. It revolves
around the needs and problems of the buyer and the role of the salesperson is to help the buyer find
solutions.

The buying formula theory emphasises the internal factors that influence the prospect’s responses and
downplay the external factors believing that the salesperson will not neglect the external factors. The
buying formula provides a useful way to help the salesperson to remember the internal factors. It is a
schematic depiction of a set of responses.

Simplistically, the buying process can be said to be comprised of three elements:

Need (or problem) → Solution → Purchase

A fourth element is added because the outcome of purchase influences the chance of a continuing
relationship between the buyer and the seller so that the formula becomes:

Need (or problem) → Solution → Purchase → Satisfaction

The solution element in the above sequence consists of two parts: the product or service and the brand
name. The buying formula thus becomes:

Need (or problem) → Product/ Service or Brand Name → Purchase → Satisfaction

For the buyer to make a purchase, they must consider the product or service and the brand name to be
adequate and also derive a pleasant feeling expecting satisfaction from the purchase. When these are
included, the buying formula becomes:

Adequacy Adequacy

Need (or problem) → Product/ Service or Brand Name → Purchase → Satisfaction

Pleasant Feelings Pleasant Feelings

Some products and services that are quite adequate are not liked, and some things are liked and bought
that are not as good as competing items. Similar reasoning applies to brand names. Some brands are
both adequate and liked, others are adequate but not liked. According to this theory the salesperson
should create and emphasise the need, the offering, and the brand name and emphasise the satisfaction
derived from the purchase.
DR. TABASSUM ALI 3
BEHAVIOURAL EQUATION THEORY

The Behavioural Equation Theory proposed by J. A. Howard uses a stimulus-response model and
combines with it the findings from behavioural research. J.A Howard explains buying behavior in
terms of the purchasing decision process, viewed as phases of the learning process. The theory says
that the learning process is a part of the stimulus-response model and has four essential elements: drive,
cues, response, and reinforcement.

These elements can be explained as hereunder:

1. Drives are powerful stimuli that induce the buyer’s response. These can be innate drives that
arise from physiological needs such as hunger, thirst, pain etc; or learned drives that are acquired
such as striving for status or social approval. For example, if a customer has passion for gardening,
he/she keeps on purchasing gardening tools frequently. This is an innate drive of the customer. On
the other hand, if the customer sees a well decorated house of a friend and decides to decorate
his/her own house in the same way, then his/her purchase for decor will be triggered by the learned
drive.

2. Cues are weak stimuli that determine when the buyer will respond. Cues can be Triggering
cues, that activate the decision process for any given purchase and take a buyer to the buying point
and making a purchase decision, and; Non-triggering cues, that influence the decision process
but do not activate it and may operate even at the time when the buyer is not contemplating a
purchase. Non-triggering cues help the buyer in selecting the product. Cues are of two kinds:
Product cues are external stimuli received from the product directly, for example, colour of the
package, weight, or price, and; Informational cues are external stimuli that provide information
of a symbolic nature about the product. Such stimuli may come from advertising, and
conversations with other people.

3. Response is the action the buyer takes as a reaction to drives and cues. Response is what buyer
does.

4. Reinforcement is any action or event that boosts the buyer’s tendency to respond in a
particular way. Reinforcement is any event that strengthens the buyer’s tendency to arrive at a
particular response

These four elements of the model are combined to give the following equation:

B=PxDxKxV

Where:
B = Response of the buyer
P = Predisposition or force of habit (inclination / leaning)
D = Drive or motivation to buy
K = potential satisfaction to the buyer. that is, the value of the product
V = Intensity of all cues

The variables in the above equation share a multiplicative relationship. Therefore, if any independent
variable has a zero value, the value of B will also be zero, and there is no response.
DR. TABASSUM ALI 4
K (potential to satisfy) leads to increase in P (predisposition), that works with cue and drive and leads
to purchase. But, No matter how much P (predisposition) is there, if there is no D (drive), there is no
purchase. When ‘K’ value is more, ‘P’ increases in value, means when the satisfaction is more the
reinforcement occurs and the tendency to make response in future increases and as a result the buyer
will buy the product next time the cue appears.

TYPES OF SALESPERSONS

All of us being consumers often come across variety of selling situations. Differences in marketing
factors cause each company to have individualized selling styles. The job of a soft drink driver
salesperson who calls in routine fashion on a number of retail stores is different from that of a computer
sales person who sells a system for managing information to executive of a consultancy firm. Each
different type of selling job requires the sales person to perform a variety of different tasks and activities
under different circumstances.

Following are the different types salesmen doing different types of sales jobs in business
organisations:

1. Order Takers
Order takers do not have the responsibility to persuade customers to buy products and increase the
sales. Rather, they are only supposed to book customers’ orders and pass on the information to the
company for delivery arrangements. Order takers should provide accurate information to the
company and customer about booking of orders and date of delivery. They are also expected to
have an up-to-date information of the date and time of delivery of orders that have been booked
by them to the customers. They are required to respond to the queries regarding the delivery date
to the customers. The different types of order-takers are as hereunder:

a. Inside order-takers: The retail sales assistants standing behind a counter is an inside order
taker. The customer has full freedom to choose products without the presence of a salesperson.
The customer comes to the sales person with the intention to buy a product or service, the
sales person only serves him or her. The sales person may use suggestion selling but ordinarily
cannot do much more. The sales assistant’s task is purely transactional – receiving payment
and passing over the goods. Another form of inside order-taker is the telemarketing sales team
who support field sales by taking customers’ orders over the telephone.
b. Outside order-takers: Outside order-takers travel to customers. They are primarily
concerned with responding to the customer calls and secure the orders from the customers.
They use laptops or desktop computers to improve tracking of inventory and orders etc. These
salespeople visit customers, but their primary function is to respond to customer requests
rather than actively seeking to persuade.
c. Delivery salespeople: The salesperson’s task is primarily concerned with delivering the
product. In the India, milk, newspapers and magazines, bread, soft drinks, grocery are
delivered to the doors of the customers . The selling responsibilities are secondary. There is
little or no attempt to persuade the household to increase or decrease the order quantity, rather
the changes in order size are customer-driven. Winning and losing orders is dependent on
reliability of delivery and the personality of the salesperson. Good service and a pleasant
personality may lead to more sales.
DR. TABASSUM ALI 5
2. Order-Creators/ Missionary Salespeople
In certain industries, the job of a salesperson is not to close the sale but to convince the customer
to promote the seller's brand. Such salespersons are termed as Missionary Salespeople. Missionary
salespeople do not take purchase orders. Rather, they are involved in dissemination of information
about the product. They help in increasing goodwill of the company and educate customers about
the product. They do not call the ultimate buyers but approach to those who make advices to the
buyer about the product. Their job is to build goodwill and help in pulling the customer toward the
product. For example, A salesperson from a book publisher calls a professor urging them to use
certain books, but the actual buyers are the students who buy and use the books. Similarly, medical
representatives approach to the doctors, the doctor does not use the drugs but advices patients to
buy the drugs.

3. Order-Getters/Front-Line Salespeople
Order-getters consists of those salespersons whose major objective is to persuade customers to
make a direct purchase. They are required to acquire new business for the company and negotiate
with new prospects. These are the front-line salespeople and should have several skills like ability
to identify new prospects, persuading and negotiating, and ultimately building new and profitable
business. They generate customer leads, provide information, persuading customers and close the
sale. The job of order getters is most challenging than any other type of salespersons.

Different types of order-getters are:

a. Direct sales person: Direct salespeople are professionals who engage directly with potential
customers to promote and sell products or services. They play a fundamental role in the sales
process by actively reaching out to prospects, presenting offerings, addressing the customers’
concerns, and ultimately closing the deals. Direct sales involve face-to-face interactions, either
in person or through virtual channels, to persuade the customers and make the sales. Some
examples include restaurants, door to door sales, selling of insurance, encyclopaedias,
magazines etc. There is normally some emotional appeal associated with this type of selling,
thus sales persons are required to possess strong persuasive ability.

b. Commercial sales person: A commercial salesperson, also known as a business or corporate


salesperson, is a professional who specializes in selling products, services, or solutions to other
businesses (B2B sales) rather than individual consumers (B2C sales). They are responsible for
building and maintaining relationships with business clients, understanding their specific needs
and challenges, and providing solutions to meet those needs. This field generally includes
nontechnical sales to businesses, industry, government and non-profit organization e.g. office
equipment, wholesale goods, building products, business services and others.

c. Consultative sales person: Consultative sales are technical B2B sales persons who are
responsible for the sales of technical product or services or sales related consultancy services
at the higher level of an organization e.g. computer system or management consultancy service.
The decision to purchase such products involves higher capital outlay thus sales job requires an
expert approach by the sales person. It also requires a very strong knowledge about product,
patience to discuss product with several people of the purchasing organization and potential
benefits to the users. Even at times when the progress of sales slows down, the sales
representatives have to make creative and sensitive efforts to regenerate interest but without
appearing to exert pressure on the prospect.

DR. TABASSUM ALI 6


4. Support Salespeople
Support salespeople, also known as support sales representatives play a crucial role in the sales
process. Unlike traditional salespeople who focus on directly selling products or services to the
customers, support salespeople primarily concentrate on providing post-sales support, guidance,
and solutions to enhance customer satisfaction. Some support salespersons are:

a. Technical support salespeople: This type of salesperson provide sales support to front-line
salespeople. When a product is highly technical and negotiations are complex, a salesperson
may be supported by product specialists who can provide the detailed technical information
required by the customers. The most distinctive characteristic of technical sales is the deep
product knowledge required by the technical sales person.

b. Merchandisers: These people provide sales support in retail and wholesale selling situations.
Orders may be negotiated anywhere, but sales to individual outlets are supported by
merchandisers who give advice on display, implement sales promotions, check stock levels
and maintain contact with store managers.

c. Service Salespeople: Interacts with customers after the sale is complete. They provide
assistance and support to customers regarding product usage, troubleshooting, inquiries, and
concerns. They also promote and sell service plans, maintenance contracts, extended
warranties, or additional support services that complement the purchased product and add
value for the customer. They address customer complaints, concerns, and issues in a timely
and effective manner.

ESSENTIAL QUALITIES/ TRAITS OF A SALESMAN

A salesman is the backbone of sales industry. He helps the producer to not only sell their goods but
makes exchange easier, opens new markets and removes obstacles to trade. For successfully
accomplishing his tasks as salesperson, his appearance, his characters, his mannerisms, his talk and the
general impression should be able to impresses and convince the prospects. By using his qualities and
abilities skillfully, the salesman can impress the customers favourably. As a result, the customers will
get attracted towards the product or service and ultimately purchase it.

Following are some of the traits which a salesperson should desirably possess:

1. Good posture and appearance: Good posture enhances the appearance and personality of the
salesman. A salesman should maintain an alluring posture, i.e. he should stand or sit straight while
meeting a customer. A good physical appearance is also a big asset for a salesman and gives him
confidence to convince the customers more easily. It helps create a good first impression on the
customer. Good appearance is enhances by cleanliness, grooming and formal dressing.

2. Pleasant voice and effective speech: The quality and the tone of the voice also have influence on
the prospect. The salesman should have pleasant, clear and forceful voice and not coarse, high
pitched, shrill, commanding or nasal voice. These types of voices can generally irritate customers.
A salesman should also be a good conversationalist. Ability to speak correctly and clearly
impresses the customers favourably. The sales talk should be clear and persuasive. The salesman
should have a good command over language and clear pronunciation.

DR. TABASSUM ALI 7


3. Cheerfulness, alertness and confidence: Cheerfulness is the greatest virtue of a good salesman.
If the salesman is cheerful, possesses a good health, vigour and a rich sense of humour, then he
can attract large number of customers. Alertness refers to active sensitivity and ability to
understand the situation. It means presence of mind - what to say, how to say and on what occasion.
It consists of a keen power of observation and common sense to take correct decisions quickly.
Self-confidence is another important quality, which every salesman should possess. The salesman
should have confidence both on himself and the goods he is selling to the customers. A salesman
lacking confidence cannot convince his customers properly or overcome their objections.

4. Imagination, resourcefulness and initiative: Being imaginative helps a salesman detect the
exact need of the customers and to understand their problems. Resourcefulness is the mental ability
to think and find out alternatives if need be. It includes devising new approaches to make prospects
do what the salesman wants them to do. Resourcefulness has a great role to play in salesmanship.
Initiative is the ability to work on our own without any guidance. It is a very useful quality for
success in dealing with customers. Initially, a salesman has to work under the supervision and
guidance of senior salesmen, but in due course of time, he has to take independent decisions.

5. Keen observation and memory: Power of observation is another important quality of a salesman.
A good salesman must be a keen observer. He should observe the changes in style, fashion,
activities of competitors, government policies, general attitude of customers among other things.
While selling the goods, he should observe the prospect carefully to check any loss of interest or
attention and take corrective measures. Sharp memory is another important attribute of a salesman.
Sharp memory refers to the capacity of a salesman to recognize customers, recall his past
interviews with them, and their requirements and suggestions.

6. Sociability, courtesy and enthusiasm: Sociability refers to the ability of a salesman to meet the
public and make friends with them. A true salesman must be an extrovert, i.e., a man who likes
mixing with people in every type of situation. Moreover, he should not hesitate to meet unknown
people. Courtesy is a mixture of politeness and consideration. The salesman must be polite and
courteous to the customers. A salesman should also be enthusiastic, otherwise he will fail to create
interest in the minds of the prospects.

7. Patience, tolerance and tact: To become successful, a salesman must be extremely patient in
dealing with buyers. In no case should he lose his temper, or be impatient and angry. He should
have the ability to keep a cool temperament even when under stress. A salesman should also be a
man of tact. Tact means doing the right thing at the right time, in the right way. However, tact
should not mean cheating or cunningness. Tact or diplomacy helps in avoiding objections and
obstacles during sales.

8. Honesty and integrity: An honest salesman is liked by every customer. While dealing with a
customer, the salesman must be true and frank about the products he is selling. He should not
misrepresent or exaggerate facts. If a salesman cheats a customer, that customer is lost forever.
Integrity means uprightness of character, moral soundness, good behaviour, and fulfilment of
promises. A salesman who does not have integrity of character will not be in a position to create
good impression upon his employers, fellow salesmen and customers.

9. Determination and industriousness: Determination is nothing but a will to succeed. Patience


and perseverance are the ingredients of strong determination towards his duties and

DR. TABASSUM ALI 8


responsibilities. At times he may face resistance from the customers but it should not distract him
from his aims and objectives. He should work patiently and calmly to achieve the predetermined
target. Industriousness refers to the ability to work hard to achieve a goal. Unless a salesman works
hard, it is very difficult for him to acquire the detailed knowledge of the customers and products.
The salesman, therefore, must remain active both mentally and physically.

By embodying these qualities and traits, salespeople can build successful careers, foster meaningful
relationships with customers, and contribute to the growth and success of their organizations.

THE PROCESS OF PERSONAL SELLING

Personal selling is a strategic sales approach where a salesperson directly interacts with potential
customers to understand their needs, present products or services, and persuade them to make a
purchase. The process of personal selling involves several stages to effectively engage with customers
and close a sale. The personal selling process consists of creating new customers and maintaining
existing customers.

Salespeople follow a series of steps in identifying prospects and turning them into customers. All
selling processes contain the same basic steps, though the detail of each step and time required to
complete it will vary according to the product that is being sold. For example: a door to door sales
representative may go through all the steps from prospecting to closing of sale in a matter of ten to
fifteen minutes. In contrast, the selling process for computer or electronic typewriter may take several
visits for getting an order.

The Personal Selling Process consists of the following steps:

Prospecting
Preapproach

Approach

Presentation

Handling Objections
Closing the Sale

Follow-up

Fig 1: Personal Selling Process

STEP 1: PROSPECTING
The selling process begins with prospecting or finding qualified potential customers. Except in retail
selling, it is unlikely that customers will come to the sales person. In order to sell the product, the sales
person must seek out potential customers.
Prospecting involves two major activities-
a) Identifying potential customers also known as leads/ prospects; and
b) Qualifying them in order to determine if they are valid prospects.
DR. TABASSUM ALI 9
a) Identifying the Prospects:
The identification of potential customers is not an easy job, especially for a new sales person.
Rejection rate is quite high and immediate payoffs are usually minimal. In some consumer goods
businesses, identification of prospects usually come from friends and acquaintances, other sales
people, former customers, present customers etc.
Following the best sources and techniques for finding prospects:
▪ Present customers: The best source of prospects is usually the sales person’s existing
satisfied customers. It is much easier to sell additional goods and services to existing
customers than to attract new customers. This is the main reason why present customers are
the first priority of the salesmen when new products and services are introduced.
▪ Endless chain: This is also an effective prospecting tactics. In this method companies use
satisfied customers as source of referrals. Sales representatives ask current customers for
names of friends or business associates who might need similar products or services. Then,
as the sales person contacts and sells to these prospects, more referrals are solicited. In this
way the process continues further.
▪ Centre of Influence: Another effective prospecting technique based on referrals is the center
of influence approach. A center of influence is a person with information about other people
or influence over them that can help a sales person identify good prospects. Some frequently
used centers of influences are bankers, local politicians etc.
▪ Spotters: Some companies use spotters as a source for prospecting potential customers.
Spotters are usually ‘sales trainees’ who help sales person identifying prospects, thus saving
time and qualifying sales leads.
▪ Cold call: Cold call is also known as unsolicited sales calls. This prospecting techniques
involves knocking on doors. The sales person makes contact with a potential customers,
introduces himself or herself, and asks if there is a use for the product or service. This
technique is utilized by the sales person when they have time available between scheduled
appointments.
▪ Directories: A wide variety of directories such as telephone directories, membership
directories of trade associations, professional societies, and civic and social organizations
are good sources for prospects.
▪ Mailing lists: In India, specialized companies compile lists of individuals and organizations
for direct mail advertisers. These lists may also be used to identify sales prospects. The major
advantages of mailing list are that they are often more current and more selective than
directories.
▪ Trade shows and exhibitions: A cost effective way to make personal contacts and locate
prospective buyer is to participate in trade shows and exhibitions. Now a days more and
more companies are increasing customer participation in tradeshows and exhibitions by
mailing invitations or promising a gift. Advance announcements sent to trade publications
also help to attract prospects.

b) Qualifying the Prospects:


Once the sales person has identified potential customers, he must qualify them to determine if
they are valid prospects. Unless this is done, time and energy is wasted in trying to sell to people

DR. TABASSUM ALI 10


who cannot or will not purchase the product or service. There are several factors to consider
while qualifying a prospect. One approach to qualifying is called MAN (Money, Authority and
Need). According to this approach, before proceeding further the sales person should first
appraise whether money, authority and need exist with the prospect.
▪ Money: Does the prospect have the money or resources to purchase a product or service?
Ability to pay is very critical factor in qualifying a prospect. The sales people must be
familiar with financial resources of a prospect.
▪ Authority: Does the prospect have the authority to make commitment? This is a particular
concern when dealing with corporations, government agencies or other large organizations.
Even while selling to a married couple, it may be difficult to identify who will actually make
the purchase decision. A sales person must identify the key decision maker early to
economise on selling time more effectively.
▪ Need: Does the prospect need the product or service? If a sales person cannot establish that
the customer will benefit from purchasing a product or service, there is no reason to waste a
sales call. The prospect either will refuse the offer or will end up dissatisfied with the
purchase.

STEP 2: PRE-APPROACH
After a prospect has been identified and qualified, the sales person prepares for the sale of product or
service. The pre-approach is a critical stage in the personal selling process, occurring after lead
generation but before the initial contact with potential customers. Pre-approach involves customer
research and planning for presentation. During this phase, the salesperson gathers information about
the prospect like size and location of the clients, their needs, and financial resources; conducts research;
and formulates a strategy to effectively engage with the prospects. The goal is to be well-prepared and
have a clear understanding of the prospect's needs and background before initiating contact. It helps in
developing suitable presentation for each of the client by focusing on their needs and communicating
relevant benefits to them.

In other words, the pre-approach step includes all the information gathering activities necessary to
learn relevant facts about the prospect and his or her needs and situations, and developing a call
strategy.

Necessary aspects of pre-approach are that it should provide information that will enable the seller to
tailor the presentation to the prospect; and it should provide information that may keep the sales person
from making serious tactical errors during the presentation. A good pre-approached increases the sales
person confidence and makes him confident to handle whatever hindrance may arise during the sales.

STEP 3: APPROACH
When the sales person has the names of the prospects and adequate pre-approach information, the next
step is the actual approach. The approach stage involves the initial meeting between the salesperson
and prospect, where the objectives are to gain the prospect's attention, stimulate interest, and build the
foundation for the sales presentation. The first impression is critical at this stage. It frequently makes
or breaks the entire presentation. If the approach fails, the sales person often does not get a chance to
give a presentation or demonstration. A good approach gets the prospect attention, immediately
inspires his interest in hearing more about the proposition, and it helps the salesperson make an easy
transition into the demonstration phase.
DR. TABASSUM ALI 11
Types of approaches:
It is common for the salespeople to begin the conversation with a reference to common acquaintances,
a referral, or even the product or service itself. Which tactic is taken will depend on the information
obtained in the prospecting and pre-approach stages. Four basic approaches are commonly used:
a) The introductory approach, where the sales person introduces himself to the prospect and states
what company he represents.
b) The product approach consists of handing the product to prospect with little conversation. It can
be most effective when the product is unique and creates interest on sight.
c) The sales person starts the sale in a consumer-benefit approach by informing the prospect of
what the firm can provide in benefits. In other words, directs the prospects attention toward the
benefits the firm has to deliver.
d) Lastly, referral approach, which is successful in getting an audience with prospect who is
difficult to see directly. It consists of obtaining the permission of a past or present customer to use
his or her name as a reference in meeting a new prospect.

STEP 4: PRESENTATION
The objective of the presentation is to explain how the product meets the special needs of the consumer.
This step comprises of two distinct activities, sales presentation and demonstration.

a) Sales Presentation:
The job of the sales person is to inform the prospect about the characteristics, capabilities and
availability of goods and services that are for sale. In order to ensure that the presentation is
understood by the prospect, the sales person should be clear in his/her communication.
Presentation should also be interesting enough to keep the attention of the prospect focused on the
proposal. Sales presentations are classified into the different categories: Fully automated, Semi-
automated, Organized, and Unstructured.
• Fully automated: The fully automated presentation is the most highly structured approach,
based on film or slide presentations. The sales person simply answer questions or clear up
doubts. This is mostly used in case of industrial selling.
• Semi-automated: In this approach, the sales person reads from brochures or literatures,
adding comments to the prepared materials when necessary. The most popular and often the
most effective sales presentation method is the organized presentation that follows a company
prepared outline or checklist. A common example is selling of pharmaceutical products by
medical representatives, or selling life insurance to the urban prospects.
• Unstructured presentation: The most popular and often the most effective sales presentation
method is the unstructured presentation. With this method the sales person has complete
flexibility in oral communication.
b) Demonstration
The demonstration is the core of the selling process. The sales person actually transmits the
information and attempts to persuade the prospect through product demonstration to make a
customer.
Two factors should be taken into consideration in preparing an effective product demonstration:
i. The demonstration should be carefully rehearsed to reduce the possibility of even a minor
malfunction.
ii. The demonstration should be designed to give customers ‘hands on’ experience with the
product wherever possible.
DR. TABASSUM ALI 12
STEP 5: HANDLING OBJECTIONS
All sales person confront sales resistance i.e. actions or statements by a prospects that postpone, hinder
or prevent the completion of the sale. Normally sales resistance takes the form of an objection which
can be classified as stated or hidden. Unless the salesman can determine the real barrier to the sale, he
will not be able to overcome it. There are two major techniques for discovering hidden objections. One
is to keep the prospect talking by asking probing questions. The other is to use insights gained through
experience in selling the product, combined with a knowledge of the prospect’s situation. Many times
prospects may be misinformed or may not understand some of the technical aspects of the proposition.
In this case, the sales person should provide additional information.
The following six techniques are the most common for handling objections:
a) Acknowledge and convert the objection: This technique involves using the objection as a reason
for buying. For example, a prospect might say, "The price is too high." The reply is: "Yes, the price
is high because we use the finest materials such as...."
b) Postpone: The postpone technique is used when the objection will be dealt with later in the
presentation: "I'm going to address that point shortly. I think my answer would make better sense
then."
c) Agree and neutralize: Here a salesperson agrees with the objection, then shows that it is
unimportant. A salesperson would say: "That's true and others have said the same. However, they
concluded that issue was outweighed by the other benefits."
d) Accept the objection: Sometimes the objection is valid. Let the prospect express such views,
probe for the reason behind it, and attempt to stimulate further discussion on the objection.
e) Denial: When a prospect's objection is based on misinformation and clearly untrue, it is wise to
meet the objection head on with a firm denial.
f) Ignore the objection: This technique is used when it appears that the objection is a stalling
mechanism or is clearly not important to the prospect.

STEP 6: CLOSING THE SALE


After having answered and overcoming objections, it is the stage for sales person to ask for the order
from the prospects. The entire effort is wasted unless the sales person can get the prospect to agree to
buy the product. There are several closing techniques which are being used by sales person in India.
Sales person generally select a technique that fits the specific prospect and selling situation.
Experienced sales people always try to close early. If they are not successful, they continue the
presentation and then try a different closing technique.
Few effective closing techniques are:
a) In-action close technique the sales person take an action that will complete the sale e.g. in case
of high priced products like Motorcar, photocopier or industrial product the sales person may
negotiate with the financial institution for financial assistance for the prospects.
b) The gift close technique provides the prospect with an added incentive for taking immediate
buying action.
c) The direct close technique is clear, simple and the best technique for closing, especially if there
are strong positive buying motives. The sales person will summarise the major points that were
made during presentation to the prospects prior to asking for the sale.

DR. TABASSUM ALI 13


STEP 7: FOLLOW-UP
The selling process is not completed by merely making the sale, as generally assumed by many sales
persons. After-sales activities are important part of the whole selling process. Effective sales follow-
up reduces the buyer’s doubt about the product or services and improves the chance that the person
will buy again in the future. In addition to post-sale activities, sales person are also required to maintain
good customer relations.

Now-a-days many companies are evolving specific policies and practices to ensure that customer’s
needs are not neglected. No matter how efficient a company is, there are always some customer
complaints that should be taken seriously and handled with concern. The customer must know that the
company cares about maintaining good customer relations. Reasonably frequent contacts with the
present customers are an expected part of the sales person’s job. For important customers, personal
visit are appropriate. Letters, notes, phone calls, greetings are also good ways to keep in touch with
customers. Successful sales person never stop serving customers. In addition to handling complaints,
they keep customers informed about the latest products or services, fulfil reasonable requests, and
provide other forms of assistance.

EXHIBITIONS AND SHOWROOMS IN SALES MANAGEMENT

Exhibitions and showrooms play crucial roles in the field of sales management, as they are integral
components of a company's marketing and sales strategies. These serve as dynamic platforms for
businesses to showcase their products, interact with potential customers, and enhance brand visibility.
These venues facilitate direct engagement between sellers and buyers, enabling businesses to
demonstrate their offerings for the purpose of driving sales, building brand awareness, and establishing
valuable customer relationships. Moreover, it allows businesses to gather valuable feedback and
insights, which helps them redesigning their marketing strategies.

EXHIBITIONS

An exhibition is a broad term that encompasses a wide range of events where individuals, companies,
organizations, or industries display their products, services, innovations, or ideas to a specific
audience. These events can be industry-specific trade shows, consumer expos, or specialized
exhibitions. These events are essential components of marketing and sales strategies across a wide
range of industries and sectors. By participating in exhibitions related to their industry, businesses can
effectively present their offerings, educate potential customers, and create a lasting impression.
Effective planning and execution are crucial for maximizing the benefits of participation in exhibitions.

COMPONENTS OF EXHIBITIONS:
• Venue: Exhibitions are typically held in physical locations, such as convention centers, exhibition
halls, or outdoor spaces. However, with advancements in technology, virtual exhibitions have also
become popular, allowing participants to showcase their offerings online.
• Participants: Exhibitions involve a range of participants, including businesses, manufacturers,
service providers, government agencies, non-profit organizations, and individuals. These
participants set up booths or displays to exhibit their products, services, innovations, or ideas.
• Audience: Depending on nature of the event, the audience may consist of industry professionals,
potential buyers, consumers, investors, researchers, or the general public. Exhibitions are often
categorized as B2B (business-to-business) or B2C (business-to-consumer) events.
DR. TABASSUM ALI 14
IMPORTANCE OF EXHIBITIONS:

1. Lead Generation: Exhibitions are highly effective for lead generation. Companies can attract
potential customers genuinely interested in their products or services. Sales teams can capture
leads and follow up with prospects after the event are over.
2. Product Launches: Exhibitions provide a platform for launching new products or services. Sales
managers can create excitement and generate buzz around these launches, potentially resulting in
immediate sales and post-event orders.
3. Networking & Collaborations: Exhibitions facilitate networking with industry professionals,
suppliers, partners, and potential clients. Building and nurturing relationships is a crucial aspect of
sales, and exhibitions offer a conducive environment for this purpose.
4. Direct Sales: Exhibitions can lead to direct sales. Companies can close deals with interested buyers
on the spot or secure orders that result in post-event sales.
5. Market Research: Exhibitions allow companies to gather valuable market insights by directly
observing customer reactions, studying competitor offerings, and identifying emerging trends.
This information informs sales strategies and product positioning.
6. Brand Positioning & Visibility: Participating in prestigious exhibitions can enhance a company's
reputation and brand positioning within its industry. It also provides brand visibility and
credibility. It signals to customers and competitors that the company is actively engaged in the
industry, which can positively influence sales and partnerships.
7. Education: Many exhibitions include seminars, workshops, or presentations where experts share
knowledge and insights. Attendees can learn about the latest trends, technologies, and best
practices, creating a valuable educational opportunity.

SHOWROOMS

Showrooms are physical spaces where businesses display their products or services to potential
customers. These spaces are designed to showcase the features, quality, and functionality of the
products or services in a visually appealing and interactive way. Showrooms are commonly used by
companies in various industries, including automotive, furniture, electronics, fashion, and more.

In a showroom, companies have the liberty to design the space in a way that aligns with their brand
image and values. This branding experience is crucial in conveying an organised and appealing image
to the visitors, helping in reinforcing the brand and boosting brand recall. The visual and sensory
aspects of showrooms are meticulously planned to provide a good experience that resonates with the
target audience and provide an appealing and informative buying experience to them.

COMPONENTS OF A SHOWROOM:
The key components of a showroom can vary depending on the type of business and the products or
services being showcased. However, there are several common components that are typically found in
most showrooms. These components are designed to create an appealing and functional space for
presenting products or services to potential customers. Here are the key components of a showroom:

1. Product Display Area: This is the central part of the showroom where the products or services
are prominently displayed. It includes shelves, racks, platforms, or other fixtures where items are
showcased.
DR. TABASSUM ALI 15
2. Visual Merchandising: Visual merchandising involves the strategic arrangement and
presentation of products to make them visually appealing. This includes the use of lighting,
signage, colour schemes, and product placement to create an attractive and inviting atmosphere.
3. Furniture and Fixtures: Depending on the type of products or services, there may be furniture
and fixtures such as tables, chairs, mannequins, display cases, and stands to enhance the display
and presentation.
4. Signage and Branding: Showrooms often feature signage that includes the company's logo,
branding, and product information. This helps reinforce the brand identity and communicates
important details to customers.
5. Lighting: Proper lighting is crucial to highlight products and create the desired ambiance. Various
types of lighting, including ambient, task, and accent lighting, may be used to illuminate different
areas of the showroom.
6. Interactive Displays: Some showrooms incorporate interactive elements, such as touchscreens,
digital displays, or virtual reality setups, to engage customers and provide more information about
the products or services.

7. Sample Products: Showrooms may include samples or demo units that customers can touch, feel,
or test to get a hands-on experience with the products. In the case of services, brochures, videos,
or demonstrations may be used to showcase what is offered.

8. Customer Seating: Comfortable seating areas are often provided to allow customers to relax and
spend more time in the showroom. This can also be a space where sales representatives can engage
with customers.
9. Sales and Information Desks: Sales representatives or information desks are typically located
within the showroom to assist customers with inquiries, provide product details, and facilitate sales
transactions.
10. Decor and Ambience: The overall ambience and decor of the showroom contribute to the
customer's experience. This includes the choice of flooring, wall art & coverings, and decor
elements that align with the brand's image.
11. Marketing Materials: Showrooms may feature marketing materials such as brochures,
catalogues, and promotional materials that customers can take with them for reference.

IMPORTANCE OF SHOWROOMS:
In a showroom setting, sales personnel can engage with visitors, providing detailed information about
products, assisting with queries, and guiding them through the purchase process. This personalized
engagement enhances the customer experience, increasing the likelihood of making a sale.
Additionally, the feedback and insights gained from these interactions are invaluable in refining
product offerings and sales strategies.
The importance of showrooms can be highlighted as follows:
1. Enhancing Customer Experience: Showrooms are all about enhancing the customer experience.
Sales managers play a crucial role in ensuring that the showroom's layout, product presentation,
and staff interactions are optimized to influence purchasing decisions positively. This includes
creating an inviting atmosphere, offering expert guidance, and fostering a sense of trust and
comfort.

DR. TABASSUM ALI 16


2. Providing Product Education: Sales managers can use showrooms to educate customers about
the features, benefits, and value propositions of their products or services. This educational
approach helps customers make informed purchase decisions, reducing uncertainty and buyer's
remorse.

3. Upselling and Cross-Selling: In a showroom setting, sales managers can identify opportunities
for upselling or cross-selling related products or services. For example, if a customer is interested
in a high-end smartphone, the sales manager can suggest complementary accessories like cases,
chargers, or headphones, maximizing sales revenue per customer.

4. Data Collection: Showrooms can also serve as data collection points. Sales managers can gather
customer information, preferences, and feedback during showroom visits. This data can be used
to personalize marketing efforts, improve products, and refine sales strategies.

5. Contribute to Brand Building: Showrooms contribute to brand building by providing customers


with a tangible and memorable experience. A well-designed and customer-centric showroom can
leave a lasting impression, making customers more likely to recommend the brand to others and
become repeat buyers.
Showrooms showcase and promote products or services, facilitate customer engagement, and reinforce
a brand's identity and messaging. They play a crucial role in marketing, sales, and customer interaction
for many businesses. While traditional brick-and-mortar showrooms are common, advancements in
technology have also led to the development of virtual showrooms, where products are displayed and
demonstrated online. These virtual showrooms provide a similar interactive experience to customers
but in a digital format, allowing them to explore products from the comfort of their own homes.

DR. TABASSUM ALI 17

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