Page 43 - DMGT205_SALES_MANAGEMENT

Unit 3: Process of Personal Selling

Notes

Notes The main disadvantage of personal selling is the cost of employing a sales force.
Sales people are expensive. In addition, a sales person can only call on one customer at a
time. This is not a cost-effective way of reaching a large audience. So as a solution to these
disadvantages, techniques like, sales promotion and public relations can be used to
introduce the product or services to a larger crowd.

Approach

It is the approach that makes or breaks a presentation. If the approach fails, the sales person
cannot proceed to give a presentation or demonstration. The sales person should try and dress
similar to what the buyers wear and should be courteous and polite in manners.
A good approach should:

1. Attract the prospects attention
2. Arouse his interest in the conversation
3. Make it easy to have a transition into the demonstration phase.
There are four basic approaches:
Introductory Approach: Here the sales person introduces himself and his company to the
prospect.
Product Approach: Here the sales person hands over the product to the prospect for examination
after briefly explaining it to him.
Consumer Benefit Approach: In this approach the sales person starts the sale by informing the
prospect about the benefits that can be derived from the product.
Referral Approach: The sales person can give the name of a present satisfied customer (with his
prior permission) to the prospect as a reference during the meeting.

Demonstration

Demonstration forms the core of the selling process. There are two stages of demonstration, first
involves a description of the features and benefits of the product and an explanation of how it
works. The second stage is the actual demonstration itself. This process is mainly directed at
converting the prospect into a customer.
An effective product demonstration should be:
1. Well prepared and referred.
2. Should be designed to give a 'hands on' experience with the product.

3.4 Handling of Objections

Prospects usually show resistance against buying products by pointing out real or imaginary
hurdles and by voicing objections. Objections, even if insincere, should be met with utmost
courtesy. The sales person should try and make the customer feel that he is sensitive and available
whenever the customer needs. Problems may arise if the customer's needs are hidden. Thus, the
sales person should try to understand what the customer's explicit needs are.

LOVELY PROFESSIONAL UNIVERSITY 37