With this step in the process, sales representatives look for new customers that they can potentially sell their products to. … No one method is used by the two salesmen. For this purpose, the salesmen should overcome all the objections. This is most critical step because the prospect’s first impression of the salesman may be a lasting impression that has long- run consequences. With this step in the process, sales representatives look for new customers that they can potentially sell their products to. The selling activities undertaken by professional salespeople includes the following steps: Selling begins by locating potential customers. 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. This stage involves a virtual preparation of a database. If you perform each step correctly, the last step (getting referrals) leads you back to the first … For these objections, the following methods may be used: i. The entire object of any prospecting must be to find sales leads that can eventually be translated into sales turnover. This stage involves collecting information about the prospective buyers who have been identified in the previous stage. 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. 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. Direct denial method (also called the “head-on or contradiction” method), under which the salesman should never contradict the buyers’ observation. 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, … For these buyers, salespeople must rely on persuasive communication skills that help assist and even persuade a buyer to place an order. Why? ‘Repeat contact’ is another common approach, when making the contact; the salesman mentions a prior meeting. This stage also enables the salesmen to secure information about the customer satisfaction levels and helps them to approach the customers again. The process gives you the power to successfully sell almost anything. Inadequate preparation, poor impression, failure in meeting objections or wrong approach on the part of the salesman may come in his way. Copyright 2021 Leaf Group Ltd. / Leaf Group Media, All Rights Reserved. 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. With some information about the prospect in-hand, the salesperson must then move to make initial contact. 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. By resistance we are referring to a concern a prospect has regarding the product (or company) and how it will work for their situation. Privacy Policy3. v. May Not Meet Requirements to Purchase – Prospects may not meet the requirements for purchasing the product (e.g., lack other products needed for seller’s product to work properly). 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. Prospecting; It is quite a common observation in our daily life that you can’t benefit a person from a product if he doesn’t need it. Lack Financial Capacity – Just because someone has a need for a product does not mean they can afford it. At this stage of the selling process the salesperson will spend a considerable amount of time presenting the product. The first step in the process involves prospecting. May Not Be Key Decision Maker – Prospects may lack the authority to approve the purchase. The salesperson’s attitude, appearance, way of speaking matters most at this stage. Your sales process is the set of steps your sales team follows when moving a customer along the sales funnel. This approach can be difficult since the prospect may be irritated by having unannounced salespeople interrupt them and take time out of their busy work schedule to sit for a sales meeting. Everything you need to know about process of personal selling. Question 38 of 40 2.5/ 2.5 Points The first step in the personal selling process is: Previous Next. Each of these steps is equally valuable and plays a critical role in building a successful career in sales. At this stage the salesperson needs to decide as to how to approach the prospective customer. 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. 1.Discuss your personal selling experience in the job-search context, with a focus on two steps that … All prospects identified may not turn out to be actual customers. 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. Prospecting refers to collecting the names, addresses and contact details of the prospective customers. 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, … 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. The approach is the first personal interaction a salesperson has with a prospective customer in the selling process. D. have the salesperson … After the objections have been removed, the only thing left to do is close the sale. What is the first step of the selling process and definition? What is the customer’s organizational structure? 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. The activities involved in the selling process vary from salesman to salesman and also with selling situations. Apart from retail sales, it’s very rare when customers reach out to the salesperson. This stage is almost a question and answer session. 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. The initial step of selling process starts with prospecting or searching for potential customers. 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. The selling process is a set of activities undertaken to successfully obtain an order and begin building long-term customer relations. Approach refers to the actual interaction with the prospective customers. All prospects identified may not turn out to be actual customers. Disclaimer Copyright, Share Your Knowledge The personal selling process involves seven steps that a salesperson must go through with most sales. 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. 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. The more information about a prospect that a salesman has, the better able he is to develop an approach and presentation that precisely communicates with the prospect. Sales leads can come from many sources including: i. However, for a large percentage of salespeople lead generation consumes a significant portion of their everyday work. Salespeople are rarely able to make the sale unless resistance is overcome. Gaining this information can help prepare the salesperson for the sales presentation. It is a rare instance when a salesperson does not receive resistance from a prospect. A salesman should try to close at several points during the presentation, because the prospect may be ready to buy. Direct Close – It is a simple technique and is most appropriate if the buyer is showing strong positive buying motives. Yet the most successful salespeople will say that closing the sale is actually fairly easy if the salesperson has worked hard in developing a relationship with the customer. The question method, under which the salesman asks questions regarding objections, so that further analysis be made. The sale must be closed only when the salesman knows that the customer is prepared for it. For a creative and persuasive salesman, the process of selling really starts when the prospect raises objections. Identifying the Prospective Buyer (Prospecting and Qualifying): The first stage of personal selling process involves identifying potential customers. 7 Steps of the Selling Process Starts from Here Selling Process Step # 1. This problem has been solved! With this knowledge the salesperson will almost always be presented with more selling opportunities. 1. 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. ii. If a prospect has been qualified or if qualifying cannot take place until additional information is obtained (e.g., when first talking to the prospect), a salesperson’s next task is to prepare for an eventual sales call. 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. This step entails making a favorable impression with the prospect, gaining the pros- pect’s … In this stage, you find potential customers and determine whether they have a need for your product or service—and whether they can afford … The salesman cannot call on any buyer at random for different types of goods. The first step in personal selling is to identify the potential buyer. Thus, the close is the most important part of the selling process since all the efforts and presentation comes down to this moment. He should properly greet the buyer and give a good start to the conversation. For example, offering free software for signing up for a demonstration of another product. 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. Additionally, having more information about a prospect allows the salesperson to be more confident in his/her presentation and, consequently, come across as more knowledgeable when meeting with the prospect. Prospecting and Qualifying: The process of prospecting is very crucial in selling any kind of products as this involves the process … A better approach for most salespeople is to contact a prospect to set up an appointment in advance of the sales meeting. Welcome to EconomicsDiscussion.net! This information is used in selecting an approach and in creating a sales presentation. The pre-approach is the second step in the personal selling process. 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. Prospecting and qualifying: ‘Prospecting and qualifying’ are the first steps the personal selling process. 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. it sets the … Salesperson handles such objections skillfully by clarifying their objections and convinces the customer to make purchase. In addition to writing informative articles, he published a book, "Modern Day Parables," in 2008. The selling cycle breaks down neatly into six steps. The profile is often based on the profile of previous customers. 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. The salesmen would like to visit these prospective customers for the purpose of sales. 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. While the basic five steps of the sales process are simple, your personal sales process … 1. 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 following are the two major activities under prospecting − 1. “He who wins the last battle wins the war” is truly applicable to a salesman foreclosing in the test, of every salesman. Not all sales leads hold the potential for becoming sales prospects. They admit to each other that they both are right, but there is the other side of the problem to consider also. To overcome resistance, salespeople are trained to make sure they clearly understand the prospect’s concern. It is also the point at which many customers are unwilling to make a commitment and, consequently, respond to the seller’s request by saying no. 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. It is a method of compromise because both salesman and prospects “bend” a little. This part of the process is a numbers game, and the sales representative has to contact many people. Marketers establish booth at trade shows and exhibitions, get the names of the prospects from existing customers, cultivate referral sources such as – dealers, suppliers, sales representatives, executives, bankers etc. 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. It is a method of compromise because both salesman and prospects “bend” a little. The sales rep should focus on the features and benefits of the product or service during this part of the process. 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 … See the answer. Preparing for the Sale 4. Action Close – Here the sales person takes an action that will complete the sale like negotiation for supplying financial assistance to the prospects. If the customer is happy, the sales rep can also try to obtain additional referrals from the customer. Following Up. This is the stage where the salesmen get an opportunity to make presentations about the product to the prospective customers. Hence identifying the right prospect is essential as it determines the future selling process. Want to read all 13 pages? There are certain objections which can be anticipated and their answers formulated before the sales interview takes place. 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. 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. Such referrals may come at no cost to the salesperson or, to encourage referrals, salespeople may offer payment for referrals. Personal selling or salesmanship itself is a process. Find the prospects or the potential customers 2. iii. It’s the salesperson who reaches out to customers in order to sell the product. 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 … Content Guidelines 2. This method is useful in meeting excuses that are not strongly backed by facts. iv. Compensation method, which merely acknowledges the validity of an objection, but points out some advantage that is supposed to compensate for the objection, such as lower price, or special care of the product. At this stage the salesperson should properly approach the prospects. iv. A sales process is a set of repeatable steps that your sales team takes to convert prospects into customers. The _ step in the selling process is to generate a list of potential customers and assess their potential. Gift Close – The salesperson may provide an added incentive on immediate purchase. 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. Before publishing your Articles on this site, please read the following pages: 1. The steps of personal selling are also knows as the sales process or cycle. The sales person assures about delivery at right time, proper installation, after sales service. The next step to prospecting and qualifying is pre-approach. In some cases, a sales lead can be qualified by the seller prior to making first contact. Cannot be Contacted – Some prospects may fit the criteria for being a prospect but gaining time to meet with them may be very difficult (e.g., high-level executives). Approaching the Consumer 3. 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. Effective prospecting requires a … 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. Demonstration may also be given about the product so that the prospect gets more involved. The steps are what a salesperson has to go through to sell a particular product or service. Question: Question 2 (2 Points) The First Step In Personal Selling Process Is Prospecting Approach Preapproach Presentation. Prospecting and Evaluating 2. Marketers tap different sources to identify the prospective customers. Most people involved in selling acknowledge that this part of the selling process is the most difficult. 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. 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 absence of sales resistance the salesman is merely an order booking clerk. The salesmen require a high degree of patience to make this stage successful. Beyond Step 1, this process lines up nicely with the steps you should (or will) follow in seeking a job. Understanding these seven steps can help improve your individual sales or the sales of your company. They admit to each other that they both are right, but there is the other side of the problem to consider also. vi. It begins before you make contact with a prospect and often continues long after the sale is finalized. Personal selling or salesmanship itself is a process. He may practice his sales presentation and do anything necessary to prepare for it. Often it is important that, upon first greeting the prospect, the salesperson spend a short period of time in a friendly conversation to help establish a rapport with the potential buyer. In some cases, the sales representative will have to overcome objections by the customer. For every … If there were any issues with the product, the sales rep can work with the customer to get them resolved. And that’ what, this first step towards a winning personal selling … Canvassing – Here leads are gathered by cold-calling (i.e., contacting someone without pre-notification) including in-person, by telephone or by email. iii. There are other objections which cannot be anticipated because they are usually related to the procedures of a particular business. The salesman may employ a “trial close” by asking questions that assume the prospect will buy the product, e.g. Market Monitoring – Through this approach leads are obtained by monitoring media outlets, such as – news articles, internet forums and corporate press releases. TOS4. The first step in the process involves prospecting. The 5-step sales process and Lucidchart. Personal selling is a form of selling that many companies rely on heavily to promote and move their products. The process of determining whether a sales lead has the potential to become a prospect is known as – “qualifying” the lead. 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. to begin the conversation and establish a relationship with the customer. A few of the effective closing techniques are: i. Share Your PDF File Educate them in order to figure out if they are valid customers Marketing, Products, Process, Personal Selling, Process of Personal Selling. The information about the prospective customers relates to their buying habits, their tastes and preferences, their decision making process, behaviour pattern and personality traits. vi. Prospecting for customers is the first step to selling. 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