Salesmanship Class XI PDF

SALESMANSHIP CLASS XI Study Material  INDEX  Unit 1 – Salesmanship  Unit 2 – Essentials of Sales  Unit 3 – Preliminary Stages of Personal Selling Process  Unit 4 – Advance Stages of Personal Selling Process   UNIT I S...

SALESMANSHIP CLASS XI Study Material  INDEX  Unit 1 – Salesmanship  Unit 2 – Essentials of Sales  Unit 3 – Preliminary Stages of Personal Selling Process  Unit 4 – Advance Stages of Personal Selling Process   UNIT I SALESMANSHIP Class- XI Unit Code UNIT TITLE: Salesmanship Location: Duration: Marks: 12 Class Learning Outcome Knowledge Evaluation Performance Teaching & Room Evaluation Training Method Session 1: Introduction to Personal Selling 1. Describe the meaning 1. Define and 1. Identify a Interactive and importance of understand the company Lecture: personal selling meaning of having Discussing the personal selling different concept of 2. Understand the product lines. personal nature of personal Identify mass selling selling in the communication current scenario and personal Activity: Take 3. Identify the communication a company of importance of adopted. your choice personal selling. and understand 2. Specify its complete scope of communication personal selling mix and analyse effect of mass communication and personal communication (personal selling) activities adopted. Session 2: Approaches to Personal Selling 1. Comprehend the 1. Describe the 1. Identify set Interactive functions and various functions of retailers that Lecture: 1  approaches to selling of sales sell just Discussing the 2. Classify the products and concept of approaches to another set of marketing personal selling retailers that sell services Activity: Enlist and visit 2. Identify the 5 retailers in approach for your vicinity selling that sell products and products only services and another 5 that sell services only. Identify the approach applicable in each case. Session 3: Salesmanship 1. Introduction to 1. Comprehend the 1. Identify 1. Interactive Salesmanship meaning of amongst the Lecture: salesmanship sales persons Discussing the 2. Understand the mentioned concept of importance and which type of salesmanship utility of salespersons 2. Identify salesmanship have you which type of 3. Identify the role interacted and salespersons of selling function in which have you business setting interacted and in which business settings Session 4: Qualities of a Salesperson 2  1. Qualities of 1. List the qualities 1. Identify Interactive effective of effective different Lecture: Salesperson salesperson qualities of Discussing the 2. Describe the sales person qualities of essential qualities sales person of effective salesperson Activity: Enlist the qualities of saleperson that have helped you in making a purchase decision UNIT TITLE: Introduction of Selling Learning Objectives After reading this unit, students will be able to:  Describe the meaning and Nature of Personal selling  Understand the need and importance of Personal selling  Comprehend the functions and approaches to selling  Approaches of Selling  Introduction to Salesmanship  Characteristics and Qualities of effective Salesperson INTRODUCTION Change is law of nature and business environment in which organisations are existing today keeps on changing. Every business as a part of turbulent business environment not only has to 3 keep profit motive in mind but also has to reduce the cost of doing business. The cost of doing business reduces if effective selling efforts are put across by salesmen through salesmanship along with good product. A transition from production to service driven organization can only take place by making people driven organization. What is desired today is an organization of people (employees) and driven by people (customers). For Example: Think of a shop opened in a neighborhood, the window display was so attractive that pulled you inside the shop, the products were also arranged in proper order. But there was nobody to sell and guide you. When there was nobody to handle a customer like you? How would you feel? Obviously the impression that you carried from the window display and attractive display of products couldn’t get converted to sales in absence of a sales person. For Example: Think of another situation where you are travelling and felt like eating something; saw a bright logo in red and yellow from a distance, you stopped for eating out there. The moment you reached the food outlet you found it was deserted; there was nobody to greet you at the entrance. But you ignored and moved inside but after going inside too there was nobody. What came to your mind? The impression you carried and decision you made to go to the restaurant all tend to change as there was nobody to serve you and even no customer. How good the ambience might be but product/ service would only be sold if there is somebody to serve. These situations illustrate that a product and ambience can’t sell all by itself. Thus the focus of business must be towards customers and people to serve them and not merely products. If a firm wants to earn desired profit, it has to make desired sales and missing on every sales opportunity has a cost involved in it. As companies adopt marketing orientation, the role of sales person and salesmanship becomes more important. For a market oriented firm the focus should be to be customer centric and establish its organization structure around customers, gone are the days when being product focused above used to give business a success. Selling is an art and a business can only succeed if it does it well. Nowadays a business focusing on mere selling products and earning profits is ought to be following marketing myopia (shortsightedness strategy). Any business that is merely concentrating on products and profits can never be a long sighted strategy follower as these days if your business believes “customer is king," the next most important person in the kingdom must be the one who interacts with the king (customer) and understands requirement of customer. Obviously that person is none other than the salesman. The sales men job doesn’t end by just understanding the need of customer, satisfying the need but 4 building a long term relationship is desired by lot of customers. Thus personal selling involves a professional sales person who is a good listener and is oriented in building a long term relationship with the customer. Personal Selling is a personal communication, through the exercise of salesmanship, with the prospective customers where engaging customer is essential. The cartoon Figure 1.1 represents the concept of engaging the client in humorous form. Figure 1.1: Engagement in Personal Selling Session 1: Meaning and Definition of Personal Selling Personal selling refers to the use of speech and personal conviction to bring about some action on the part of another. Salesperson is a man who actually performs the personal selling. 5 Personal selling is a means of implementing marketing programmes. It is concerned with 'persuasive communication'. A salesperson in personal selling tries to persuade the prospect so that he can take a decision to buy a product. It is a major factor in creating sales volume. It is a direct presentation of a product to a prospective customer by a salesman. It takes place face to face or over the telephone. It may be directed to a middleman or a final consumer. A few definitions of personal selling are quoted below: According to William Stanton and Walker, "Personal selling is the personal communication of information to persuade somebody to buy something." In the words of 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." In the words of Robinson and Stidsen, "Personal selling may be defined as interpersonal face- to-face interaction for the purpose of creating, exploiting or maintaining a mutually beneficial exchange relationship with others." According to Mahoney and Slone, "Personal selling is the personal communication between a salesperson and a potential customer or group of customers." In the words of Richard Buskirk, "Personal selling consists of contacting prospective buyers of product personally." Marketing programmes are designed around four elements of the marketing mix: (a) products to be sold, (b) pricing, (c) promotion, (d) place. While promotion component includes advertising, public relations, personal selling, and sales promotion there is relationship between personal selling and other elements of marketing mix. A right product with right price & right place needs personal selling efforts to sell. It should be noted that advertising and sales promotion are impersonal communications, whereas salespeople (in personal selling) talk directly to customers..Thus, personal selling involves two-way communication with prospects that allows the sales message to be adapted to the special needs of the customer. Personal selling when combined with other element of promotion mix can give excellent results. Personal selling is an extremely effective but expensive form of promotion. In the promotion mix of an organization, personal selling plays a dominant role. As sales is the life line of a business. 6 The ultimate object of all produced in factory is achieved through sale; and without sales, no business would survive. An important element of the marketing mix of a business firm is promotion. The function of promotion is concerned with the establishment of contact and communication with the object of creating ‘customers’. But personal selling further enhances that to relationship building with customer. Activity 1 Identify a product you are in need of. Identify the brand you want to purchase. Go to the retail outlet of the brand and tell your need to the salesman see how he interacts with you and do you have more information or does he? Find out if he can change your decision of buying the brand. State the reasons if changes made in decision making. Nature of Personal Selling Let's look at some aspects of personal selling to understand its nature: 1. Part of Promotional Mix: Every marketing oriented comapany has a marketing plan. -Personal selling is a part of the promotion mix of the company's marketing program. The major elements in the promotion mix of a company are advertising, sales promotion, direct marketing, public relations and personal selling efforts. Personal selling when combined with other elements of Promotion mix makes it effective tool. 7  Figure 1.2: Combination of personal selling with promotion mix 2. Understanding Needs: Personal selling is purely need based and understanding needs is most important thing for initiating the sales process. Personal selling involves an interactive relationship between two or more persons. The seller observes the needs of the customer and makes immediate adjustments. 3. Two Way Communication: Personal selling is direct contact between seller and customer. It is the personal communication of information between the seller and customer. Salesman first makes the customer speak about his or her problem and identifies the need and offers various alternatives to meet the need, he also provides information about each. Now the ball comes in customer’s court of decision making and he can choose the right product/service from the choices offered to him. It is face to face communication which is in contrast to the mass impersonal communication of advertising, sales promotion, and other promotional tools. 4. Persuasive: Personal selling is usually focused on prospective customers. The seller first considers It is the art of persuasion by considering the needs, desires and buying problems of the customers and then performs the art of persuasion. It is the art of winning customers confidence. A salesperson in personal selling tries to persuade the prospect so that he can take a decision to acquire the product which the salesperson is talking about. 5. Demand Creator: Salesman is known for persuading the customer and creating demand for a product or service. Salesmen in person talks to the customers about the product and 8  benefits associated with the product. He induces that immediate buying action and the demand for product is generated. He creates an urge to buy the product. 6. Flexible Approach: Personal selling is more flexible than other tools of promotional mix. Salespeople can tailor their presentations to fit the needs and behavior of individual customers. Salespeople can see their customer's reaction to a particular sales approach and make adjustments in different situations. Sales talks and presentation can be adjusted according to situation to suit individual nature, motives, and problems. 7. Relationship building: It’s a misconception that selling is one time sales. Actually personal selling is not just to sell a product once rather it is establishing a relationship with the customer. It keeps customer's best interests at heart. It maintains long-run relationships. It makes the buyer feel that he is listened to, and his needs are considered. 8. Educating Customers: Salesman through personal selling generates sales volume, by educating the customer. He brings human element into marketing transactions and increases the customer's confidence in the company by educating them. The customer is educated about product features, quality, how to use and handle the product etc. 9. Broader Concept: Personal selling is a broader concept than salesmanship. According to Cundiff and Still, Personal selling, along with other marketing elements, is a means for implementing marketing programs. Salesmanship is one aspect of personal selling it is never all of it. Personal selling makes use of salesmanship techniques. 10. Service Element: Personal selling is not getting rid of a thing or cheating the customers for short term goal. Rather it is necessarily an act of assisting the customers to buy wisely. Today, it has become a symbol for honesty and dependability. A product is tangible component when attached to intangible component of service adds value and helps in personal selling. Need and Importance of Personal Selling In today’s highly competitive world, personal selling has an important role to play. Few products like home appliances, cosmetics, pharmaceuticals, and publications, etc., are not possible to sell without the help of sales person. Personal selling though being expensive form of promotion helps in generating huge sales. Many companies 9  enjoy a strong position in market only due to effective personal selling. Salesman can personally attend each customer to convince as well to solve problems. Personal selling in not only important to sell the products, but also to create permanent customers. Salesman can renew customer relations each time. People have more faith on salesman than exaggerated advertisement. In many companies, personal selling is the largest single operating expense. It often equals 8 to 15 percent of sales, whereas advertising costs average 1 to 3 percent of sales. This shows the importance of personal selling element. Personal selling offers triple rewards. It benefits all parties, including businessman, customer, and society. Importance to Businessmen: It is helpful to businessmen as follows:  Creates Demand: With increasing competition, the companies believe in personal selling as an important tool to push the product in the market. A salesman helps in creating demand of the product by describing its functions and demonstrating the product. A good salesman not only has knowledge of its own brand but also knowledge of competitors in the market. They act as suggestion holders, create demand and generate sales.  Minimizes Wastage of Efforts: As advertising is a mass promotional and communication tool, things are exaggerated through advertising on the other hand efforts may even go waste. Personal selling involves minimum wastage of efforts as compared to other tools of promotion. It is directly interacting with the prospect and saves time which leads to minimizing time and resources.  Role in Introduction Stage: A salesman describes the merits of a product and persuades the customer to purchase it. Salesman helps in introducing a new product in the market. When we are suffering from a disease, whom do we tend to visit? Obviously it’s the doctor. The doctor prescribes a medicine. Have you ever thought of how come the doctor comes to know about new medicines? It is through the salesmen of pharmaceutical company who approach the doctor. These salesmen are called medical representatives by personal selling explain the salt in the medicine convince the doctors to prescription of medicines.  It Results In Actual Sale: Advertising and sales promotion techniques can only attract attention and arouse desire. By themselves they cannot create actual sale. 10  Personal selling in most cases leads to actual sale. A salesman can find prospective buyers, demonstrate the product, explain its operation, and convince customers to buy it, install it at the customer's place and provide after-sale service. No other method of promotion can perform all these functions. Therefore, personal selling does the entire job of selling. Personal Selling is a complete promotional technique of keeping customers satisfied  Catch Customer’s Attention: Personal selling is a tool in which the level of customer attention and interest can easily be assessed. The magic phrase of ‘May I help you’ does wonder and is the way to make customers speak about their needs. Thereafter, the presentation by the salesmen can be modified as per the need of the customer.  Clear picture of the Market: Sale persons not only provide information to the customer about the product and the company rather personal selling is a mirror of market as it gives clear picture of the market back to the company. It supplies market information’s back to the firm. It keeps eye on market nerve, fashion trends and consumer profile. It regularly assesses the competitive forces of the market.  Improving Image: Salesmanship can improve image of the company by highlighting company’s achievements and offers. The detailed explanation about company and its products removes all doubts and misunderstandings. It helps in restoring company image and reputation in market.  Increase in Profitable Sales: The goal of marketing activities is to increase profitable sales by satisfying the want of consumers over the long run. Personal selling is by far the major promotional method used to realize this goal. The number of people employed in personal selling are much more than advertising. Importance to Customers: It is important to customers as follow:  Helps in Identifying Needs: Customer being the king, identifying their needs and and satisfying them products and services.  Convincing and Creating Customers: Salespersons identify the customers who are interested in the company products. They transform prospects into buyers by understanding their needs. Personal selling provides personal touch and can lead to ‘repeat purchases ' to the company. 11  Detail Demonstration: Personal selling is the only technique through which detail demonstration of product takes place, which generates sales. For Example: Think of a situation when you go out for buying fragrance, the sales person demonstrates the fragrance on a paper strip and you choose the brand. Television and internet these days also demonstrates products but touch and feel factor is missing. For technical products, demonstration method has more relevance.  It Educates Customers: Salesmanship is not merely a tool of convincing and persuading people to buy. Rather a salesman not only provides information but also educates and guides the customers. He handles their complaints and assists them in getting value for their money. He has complete information about the product and can clear their doubts on the spot.  Salesmanship Supports Advertising: An advertisement can attract the customer but the customer might have lots of doubts about the product that remain unanswered. There might be need for explaining the quality uses and price of the product. Salesmen can answer unanswered doubts and can make a prospective customer to buy a product. In this way personal selling supports advertising. Salesmen educates the consumers about new products and about new uses of existing products.  Personal Attention and Immediate Feedback: Advertising and publicity are among mass communication tools. They do not focus on individual needs and wants. Personal selling is the only tool of promotion mix that focuses on personal problems of customers. It is comparatively more effective and result-oriented. This is the only market promotion technique that provides an immediate feedback. This is the only technique that helps in judging the customer and actually telling whether customer intended to buy the product or service. Importance to Society: It is also important to society as follow:  Assist the society: Salesmen is one of the help to increase aggregate sales and production in the country thereby increasing employment opportunities. They help to maintain equilibrium between demand and supply.  Converts Latent Demand: Personal selling helps in converting latent demand into effective demand. Latent demand is the desire for a product that a consumer is unable to satisfy because he is himself is unable to point it out. At times the customer doesn’t realize what is missing until pointed out. This results in more production, and hence leads to increase in GDP of the country. 12   Employment Opportunities: It provides opportunity of employment and ensures attractive career in sales. There are numerous positions from 10th, 12 th pass to post graduates are required. There is no dearth of respect, variety, and security etc.  Mobility of Sales People: Travel and tourism in the country get promoted by the mobility of the people from one place to another.  Product Standardization: Personal selling ensures uniformity in consumption by selling standardized products. KNOWLEDGE ASSESSMENT 1 Fill in the blanks with appropriate answers: 1. _________________________________is a personal communication, through the exercise of salesmanship, with the prospective customers. 2. Personal selling starts with understanding _________________________of prospects/customers. 3. Personal selling is focused on______________________________ 4. Personal selling is the most _______________________as it builds up buyers' preference, conviction, and action at much lesser cost than mass communication. 5. Personal selling provides '_________________________to the company buy building relationship with the customer. 6. Stanton writes, "Salesmen___________________ prospective customers, expedite orders, coordinate deliveries, set-up displays, service their accounts, gather market information’s, and have to solve customers’ problems. 7. Today's salesman performs _________________________of sales roles. 8. Personal selling offers triple rewards by benefiting not only customer but also _______________and __________________. 9. Personal selling is the only technique that ____________the product and generates sales 10. Salesmen help to increase aggregate sales and production in the country thereby increasing _________________________ opportunities. 13  [Ans: 1.Personal Selling 2. Needs 3. Prospective Customers 4. Cost-effective tool 5. Repeat purchases 6. Persuade 7. Wide variety 8. Businessman, and society 9. Demonstrates 10. Employment] Session 2: Approaches to Personal Selling Marketing of products to customers, companies use different approaches, depending on the nature of product or services, resources of the organization, expertise or others. Initially there were four approaches: 1. Stimulus Response Selling Approach 2. Mental State Approach 3. Need Satisfaction Approach 4. Problem Solving Approach 5. Consultative Selling Approach Approach 1: Stimulus Response Selling Fig: 1.3 Stimulus Response Selling Of the five approaches of selling, it is the simplest approach to selling. Salesman uses structured questions and statements, these statements act as stimuli for the customer and sales person get the desired response in their favour. Words and statements of sales person provide a stimulus if they are well planned to convert prospect to a customer. A salesperson plans in 14 advance the the desired conversation. He prepares structured questions whose answer is most likely to be in ; YES’ leading towards the end of the sale in ‘YES’. Proper sales training by the company is given. In case of telemarketing, in which one script is being memorized and then repeated on every call till the sale call is closed. The Fig.1.3, the sales person makes regular attempts to customers by providing stimuli or cues which help in influencing the buyer. Once the buyer is conditioned, the salesperson tries to secure a positive response leading to purchase decision made by buyer. This approach involves less contribution of the buyer, its one sided conversation in favor of sales person, who has the aim to sell at any cost. So it’s suitable in the situations when buyer is unprofessional and has less knowledge. Approach 2: Mental State Selling Figure 1.4: AIDA Model Mental state selling makes an assumption that buying process for majority of buyers is identical and they go through certain mental states and these mental states i.e. Attention, interest, Desire, and Action, makes AIDA model that is formed by the first letters of Attention (A), interest(I), Desire(D), and Action(A). It is used by many organisations. It is described below: (a) Attention: The first task in a sales presentation is to attract the prospect's attention and to create curiosity. Some creativity is required to attract attention. Salesmen may suggest the product benefits by making some startling statements for catching attention. 15 (b) Interest The salesman needs to hold the interest and stimulate a desire for the product. For this purpose a product demonstration can be used to create interest in product. (c) Desire: The third state is to create desire for the product or service. The salesmen must be trained in such a way that he is already prepared with the anticipated questions that the prospect can raise. It also consists of meeting customer's objections. Handling objections is an art that the salesmen must smartly perform. (d) Action: Desired action will generate sales. During trial close all objections of customers are handled and customer just needs to perform an action of buying to close sales. William Stanton and others write, "The toughest objections to answer are those that are unspoken. A salesperson must uncover the real objections before being able to close a sale. For Example: Selling a water purifier is not easy and it can be sold by securing attention of customer by telling about RO water purifier and its quality to purify. The customer gains interest if the salesman engages him by showing flipcharts, presentations and brochures and also focusing on purity and health of the family members. The desire can be generated by making them use the RO water purifier for their use and a glass of water can be served (demonstrate). Further desire is generated by giving EMI option for payment and consumer makes a purchase decision due to its effectiveness in providing pure water which is germ free too. Approach 3: Need Satisfaction Selling Figure 1.5: Need Satisfaction Selling Model In this approach, understanding the need of a customer is essential as a customer buys a particular product to satisfy a particular set of needs. Sales person first listens to customer and makes an initial part of conversation to uncover the needs of buyer. Here the role is to probe the customer to understand completely the set of needs of customer. When need is identified then sales person tells about his product/services and how can they benefit customers and tell 16 the entire features. Then sale is closed. The customers normally like this method as they are being heard. For Example: Set top box providers like Tata Sky, Sun Direct etc. follow need satisfaction selling. They have different packages so as to meet the needs of different types of customers. They also have special packages where the customer can choose the channels he or she wants based on their interest and that particular package will be provided to the customer. This is where the need satisfaction selling comes into picture. Approach 4: Problem Solving Selling Figure 1.6: Problem Solving Selling Problem-solving selling is an extension of need satisfaction selling. It goes beyond identifying needs to developing alternative solution for satisfying these needs. In this approach problem is already identified by the customer, the customer clearly needs to state to the salesperson. Salesperson understands the need of the customers. Then the salesperson presents all the alternatives available and that too of competitors to solve the problem. The salesperson also explains his own company’s product or service, this is followed by customer evaluating amongst the alternatives carefully; making comparisons and finally making purchase decision. For Example: Insurance is a intangible product whose benefits come in future. The role of salesperson is very important where a through interaction with customer the need of the product and its use in future can be explained. 17 Approach 5: Consultative Selling Figure 1.7: Consultative Selling In this approach both buyer and seller work in collaboration. Sales person by understanding customers’ needs and works in the direction of addressing those needs. Sales person works in collaboration with customers to achieve those goals. It involves two way interaction. Sales person sincerely tries to overcome the objections of buyer and use all his resources. It may take several days for closing sales. It believes in long term relationship building by providing best of after sales services so that the customer feels satisfied and retains the brand. KNOWLEDGE ASSESSMENT 2 1. AIDA stands for attention, ________, desire and _________. a) interest; action b) intensity; appeal c) involvement; action d) None of above 2. The role of marketing communications is to engage audiences and there are four main tasks that it can be used to complete. Which of the following is not part of the four main tasks? a) Differentiate b) Participate. c) Reinforce. d) Inform. 3. Which is not the part of Consultative selling? 18 a) close the sales b) address the customer’s needs c) create customer centric approach d) don’t maintain customer relationship 4. In need satisfaction selling approach, sales person first ______________ to customer and makes an initial part of conversation to uncover the needs of customer a) Talks b) Visits c) Listens d) All of above 5. Which is the approach customer clearly states its needs to salesperson. Then the salesperson presents all the alternatives available. a) stimulus response b) mental states, c) need satisfaction d) problem solving 6. Mental state selling is also known as ____________________. a) AIDA model b) Transition selling c) Relationship selling d) None of above 7. Trust based relationship selling approaches are a) Need satisfaction b) Problem solving c) Consultative selling d) All of the above 8. ___________________ is one time selling with the purpose of generating sales with low profit potential. a) Transition selling b) Relationship selling c) Value added selling d) None of above 9. Consultative selling starts by understanding needs and address the need and ends with 19  a) Selling b) Closing sales c) Establishing relationship with customer d) None of above 10. AIDA stands for a) Attention b) Interest c) Desire d) Action e) All of above [Ans: 1. a, 2. b, 3. 4. c, 5. d, 6. a, 7. d, 8. a.9. c. 10. E Session 3: Introduction to Salemanship “The personal selling” and “salesmanship” are often used interchangeably, but there is an important difference. Personal selling is the broader concept. Salesmanship is another important part of personal selling. Along with other key marketing elements, such as pricing, advertising, product development and research, marketing channels and physical distribution, the personal selling is a means through which marketing programmes are implemented. Salesmanship is one of the skills used in personal selling, as defined by Stroh, “it is a direct, face-to-face, seller-to-buyer influence which can communicate the facts necessary for marketing a buying decision; or it can utilize the psychology of persuasion to encourage the formation of a buying decision” The broad purpose of marketing is to bring a firm’s products into contact with markets and to effect profitable exchanges of products for money. The purpose of personal selling is to bring the right products into contact with the right customers, and make ownership transfer. Salesmanship is seller-initiated effort that provides prospective buyers with information and motivates or persuades them to make favourable buying decisions concerning the seller’s 20 products or service. The salesman of today has to react and interact in any different ways to many different people. Apart from the knowledge of the product, a salesperson has to be a psychologist with one prospect, a human computer with another, an adviser with another, and at the same time a friend with some buyers. Salespersons must adjust their personalities on every call. Salesmanship may be implemented not only through personal selling but through advertising. Thus, advertising has been described as “salesmanship in print.” Salesmanship is the art of influencing or persuading people to do what sales representative wants them to do. For instance, contractors, teachers, ministers, authors, politicians, industrial engineers etc., practice the art of influencing others to do what they want them to do. Every man is a salesman in his own walks of life. Selling Function Buying and selling functions are two sides of the same coin; one cannot exist without the other. Thus, for every purchase made, there is a corresponding sale and vice-versa. These two marketing functions of purchase and sales have been commonly described as functions of exchange. It is more than an economic activity. Every time a product is offered for sale in the market and a service is made available by salesperson to add benefit to the product for the consumers. The product is able to fill in a need or a want; in return the seller is able to serve his own self-interest by leading more sales and more profits for him. A seller cannot generate sales without different salesperson performing their roles at different stages of consumer buying process. Various selling functions performed are: 1. Order Takers: Sales person who mainly seek repeat sales. They book customer orders and pass on the information to relevant people in the company. They are expected to be accurate. They are also expected to have information about when the order has been booked and when will it be delivered to customers. They have to track the delivery date of product and should be able to assist customer for the same. Order takers are of two type’s i.e. Inside order taker and field order taker. 21 a) Inside Order Taker: They are a part of sales office and receive sales order from different sources like phone, mail and internet. Sales persons in retail stores are also inside order takers. b) Field order Taker: When a customer is not interacting in the retail store, rather the order is placed when the salesperson has met you outside or in the field and taken order is field order taker. The buyer relies and becomes dependent on field order taker to place orders periodically. 2. Order Creators: The prime objective of order creator is to convince customers to buy the company’s products. The salesperson needs to understand customer’s requirements and convince him that his company’s products serve his requirements best. a) Missionary Salespeople: They are employed by manufacturers to sell their product to retailers. Once the retailers are convinced they place the orders to wholesalers which ultimately lead to company’s sale. In some pharmaceutical and building industry, the manufacturer hires medical representatives and architects. Medical representatives calling on doctors cannot make a direct sale since the doctor does not buy drugs but prescribes them for patients. Architects also act as specifies rather than buyers. In these situations, the selling task is to educate and build goodwill for the company. 3. Order Getters: An order getter persuades a customer to make a purchase. He is a frontline salesperson, and is in a typical selling job. He is supported by technical support staff and merchandisers. i. New business Salespeople: The selling tasks are to win new businesses by identifying and selling to prospects. These salespersons should maintain good relations with current customers who can provide leads. They should also be prepared to make a lot of cold calls and visits. ii. Consumer Salespeople: They sell to individual customer’s products and services such as cars, insurance. These salespeople have to be sensitive to customers’ time and they should not be insistent even when customers have declined to buy. Sensing that a customer does not want the product is as important as sensing that he may want the company’s product. A consumer salesperson should be always wary of putting off the customers by being too persistent. Exemplary behaviour is imperative for consumer salespersons. 22 iii. Technical Support Salespeople: Where a product is highly technical and the negotiations are complex, a salesperson may be supported by product and financial specialists who can provide the detailed technical and financial information required by customers. This may be on-going as part of a key account team or on a temporary basis with the specialist being called into the selling situation whenever required. iv. Merchandisers: Merchandisers advise on product display in stores, implement sales promotions, check stock levels and maintain contact with store managers. They provide support to the sales function in retail and wholesale selling. Salespeople serving individual outlets are supported by merchandisers. KNOWLEDGE ASSESSMENT 3 State TRUE or FALSE for the following statements: 1. Threes around which selling function revolves are: self interest, satisfaction and self motivation. For indeed, it revolves around three S''s, namely: service, satisfaction, and self-interest 2. Two types of salespersons are: order takers and order getters. 3. Order takers are supposed to increase the total sales by increase in sales of new products. 4. A salesperson should gracefully back off when the customer does not seem interested in the product. 5. Order getter is a backline salesperson, and is in a typical marketing job. 6. Order getter cannot persuade customers for making a purchase. 7. A merchandiser advice on product display in stores, implement sales promotions, check stock levels and maintain contact with store managers. 8. Consumer salespeople sell to individual customer’s products and services and have to be sensitive to customers’ time. 9. Order takers are expected to persuade customers to buy the company’s products or increase their quantity of purchase 10. Order takers are replaced by the more cost efficient telemarketing teams who call customers and book their orders. [Ans : 1. False, 2. True, 3. True, 4. True, 5. False , 6. False, 7. True, 8. True, 9. False 10. True 23 Session 4: Characteristics Of A Successful Salesman There are a few natural skills that are of great benefit if they already exist within those that want to be successful in sales. Without these, success will take a longer time but it can still be achieved. If there is no desire and dedication to learning or developing these skills, then the selling will be much more difficult and often very stressful. 1. Effective Communicator: Communication covers a lot of territory. Sales is all about talking to people and making then understand your thoughts. At times sales people need to speak in the local language in order to make customers understand properly. 2. Ability to Listen: A salesperson has to balance the act of talking and listening. If he does not properly listen, how would he respond back. So a salesperson has to be a good listener. 3. Inquisitive: Salespeople are naturally inquisitive and know that in order to isolate what the real need or desire is in the buyer, they need to ask questions that will lead them to the answer. They naturally ask questions because they have a desire to help solve their problem. 4. Problem Solver: Another natural skill is the desire and ability to solve problems. Great sales people are always solving problems. The ability to know what the buyer's problem is and offering suggestions that will effectively solve the problem with respect to what products or services we sell, and generally results in a sale. 5. Well Organized: Sales people have a keen ability to break things down into smaller steps and organize a plan of action. They know how to analyze what their goal is and in what order the steps need to be in order to reach that goal. 6. Self-Starter and Self-Finisher: A successful sales person moves forward on their own. They never need anyone to tell them when it is time to go to work because they know that if they do not work they will not earn. They are also very persistent to finish what they 24  start. They achieve their goals, even if they are small ones. 7. Positive Self Image: Having the attitude that they can do just about anything that they put their mind to is usually very common among sales people. They do not cower from meeting or talking to people or trying something new. They rarely allow negatives that are either spoken to them or about them to effect what they are trying to accomplish because they know who they are and what they are capable of doing. 8. Well Mannered and Courteous: Sales people are very well mannered. One may not realize it, but good manners are a way of showing respect to others. People are attracted to those that respect them and mutual respect is fundamental in building lasting relationships with people, including buyers. Qualities of a Sales Person With particular reference to Consumer Service Selling as a career there are two basic qualities of a good salesperson namely, empathy and persuasion. Some of other qualities of a good salesperson are as follows: 1. Physical Quality: A salesperson should have a good appearance and an impressive personality. He should also have a sound health he might be required to travel a lot. 2. Mental Quality: A good salesperson should possess certain mental qualities like imagination, initiative, self confidence, sharp memory; alertness, etc. He should be able to understand the need and preferences of the customer. 3. Integrity of Character: He should possess the qualities of honesty and integrity. He is to gain the confidence of the customer. He should be loyal to the employer as well as to the customer. As he is face-off of the company so he should hold a strong character. 4. Knowledge of the product and the company: He should be able to explain each and every aspect of the product i.e. its qualities, how to use it, what precautions to be taken, etc and the company he is representing. 25 5. Good behavior: A salesman should be cooperative and courteous. Good behavior enables one to win the confidence of the customers. 6. Ability to Persuade: A good salesperson should be good in conversation so that he can engage the person he is attending. He should be able to convince him and create the desire in mind to possess the commodity. Very few products of any type actually sell themselves. They must be sold. Salespersons must have the ability to get people to agree. There are situations when persuasiveness may vary keeping in view the consumer’s response. 7. Flexibility: A salesperson has to be flexible in many ways. There is no fixed way of convincing the customer, a sales person has to be flexible. A good salesperson is able to adapt himself or herself to a variety of customers. Each contact may require adapting the sales talk, speech habits and even appearance. The timings need to be flexible as per the requirement of customer. 8. Ability to estimate customer’s needs and desires: He or she is alert and quickly determines what the customer wants and the best way to sell. 9. Ambition: He or she likes to do a good job and is interested in getting ahead with the company. 10. Appearance: Appearance means a lot today and the successful salesperson is neat and organised. He or she presents himself or herself well in person. Also, he or she keeps his or her desk, books and manuals neat and ready for use. 11. Business Sense: He or she understands that you are in business to make a profit and quickly learns the ins - and - outs of the organisation. 12. Courtesy: He or she reveals a sincere desire to help customers and treats them as guests even when he or she visits their places of business. 13. Creativeness: Imagination, vision and the ability to create ideas make a salesperson dynamic. 14. Curiosity: He or she wants to learn all he or she can about his or her products and customers. 15. Enthusiasm: There is nothing that can drain away a prospect’s buying interest more than a half-dead salesperson. Dullness should be left at home. A salesperson must radiate enthusiasm during and after the sales call. 26 16. Figure Sense: He or she should have the mathematical ability to figure and fill up order form correctly and to make the necessary reports. 17. Friendliness : A salesperson should be able to make people like him or her and he or she must like to meet people 18. Handwriting: He or she must write legibly so that his or her paper work can be readily understood by his or her office people and by his or her customers. 19. Health: Good health generates energy and energy is needed to sell. Poor health prevents many salespersons from fulfilling their potentials. 23. Interest in job: He or she likes selling and working for the company.. 24. Motivation: He or she must have more than just an interest is selling. Psychologists have found certain predominant patterns in people who have become really successful salesperson. They live in the present and not in the future. They do want power over others and prefer not to work under close supervision. 25. Originality: He or she is constantly searching for new ideas to be used in selling the products and suggests better ways of doing things. 26. Persuasiveness: Very few products of any type actually sell themselves. They must be sold. Salesperson must have the ability to get people to agree. There are situations when persuasiveness may vary keeping in view the consumer’s response. 27. Positive: His or her maturity is reflected in his or her behavior. He or she should be positive, confident, energetic and business like. He or she should be able to demonstrate to the customers that he or she knows what he or she is talking about. 28. Self-control: He or she can handle difficult people and situations calmly. 29. Self-starter: They are self motivated. These salespersons work without constant supervision and is able to make decisions on his or her own. 30. Speech: He or she can speak clearly and maturely in a natural tone. He or she can 27 emphasize sales points with sincerity and friendliness Knowledge Assessment 4 Short questions: 1. Define personal selling along with its nature? 2. What characteristics a good salesperson should possess? 3. Differentiate technical support salespeople and consumer salespeople. 4. What is the role of merchandisers in selling? 5. Explain order getters and order takers. SUMMARY: 1. Salespeople contribute to society by acting as stimuli in the economic process and by assisting in the diffusion of innovation. 2. The salesperson will act as a consultant to the customer in trust-based selling, whereas transaction-based selling concentrates more on making sales calls and closing sales. 3. Personal selling is a major ingredient of promotion mix of a company. It has a big role in implementing promotional programme. 4. Personal selling is likely to carry the bulk of the promotional load when: a) the market is concentrated either geographically, or in a few industries, or a few large customers. b) The product has a high unit value, is quite technical in nature, or requires a demonstration. c) The product must be fitted to an individual customer's need; as in the case of securities or insurance. d) The sale involves a trade-in. e) the product is in the introductory stage of its life cycle. f) The organization does not have enough money for an adequate advertising campaign. 5. Approaches to personal selling include stimulus response, mental states, need satisfaction, problem solving, and the consultative approach. Knowledge Assessment 5 Long questions: 1. Why personal selling is needed in modern era? Explain in brief along with examples. 2. Explain the qualities require to be a successful salesperson. 28  3. Salespersons have to perform various functions in the market? 4. Explain the different approaches to personal selling. 5. How do salespeople contribute to our society? Are there negative aspects of personal selling from a societal perspective? 6. What are the primary contributions made by salespeople to their employee’s? 7. How are need satisfaction and problem-solving selling related? How do they differ? 8. How does the consultative selling approach differ from problem-solving and need satisfaction selling? Explain the three key roles of consultative salespersons. 9. When do you think stimulus response selling would be most effective? References: 1. Figure1.1:http://www.indigoandviolet.com/uploads/1/5/5/3/15536868/7944706_orig. gif?485 2. Figure 1.2: http://image.slidesharecdn.com/18-personalselling-130310083528- phpapp02/95/18-personal-selling-11-638.jpg?cb= 3. Figure 1.3: http://pcm.me/wp-content/uploads/2013/08/New-Picture-2.png 4. Figure 1.4: http://webmarketingwizardry.com/wp-content/uploads/2013/05/aida.gif 5. Figure 1.5: http://www.mbaskool.com/2015_images/stories/jan-images/yos- needsatissell.jpg 6. Figure 1.6: Problem solving : image.slidesharecdn.com/d9d4bc72-2786-4fe4-8655- dee8f6478c62-150519130039-lva1-app6892/95/you-can-sell-16- 638.jpg?cb=1432040648 7. Figure1.7:http://timreview.ca/sites/default/files/TIMReview_December2012_Suomala _et_al_2.png 8. Figure1.8:https://www.google.co.in/search?q=selling+function&biw=1366&bih=657 &tbm=isch&tbo=u&source=univ&sa=X&sqi=2&ved=0ahUKEwijsKKduu_MAhUQ T48KHfQXCfMQsAQIPg#imgrc=_yBE5CUFWjTF9M%3A 29  UNIT II:ESSENTIALS OF SALES Unit Code: UNIT TITLE: :ESSENTIALS OF SALES Duration: Location: SESSION1: KNOWLEDGE OF INDUSTRY AND COMPANY Classroom Learning Outcome Knowledge Evaluation Performance Teaching and or Retail Evaluation Training Method outlet or 1. Meaning and 1.Introduction 1. Justify need for Interactive Lecture: Company’s importance of 2.Benefits of acquiring acquiring Introduction of premises knowledge of Knowledge to Knowledge to knowledge of Industry and salesmen salesmen Industry with its Company Product 3.Knowledge of 2.Explicate meaning significance and and Customers industry of Industry sources 4. Knowledge of 3.Information Discussion of how to company collection collect information regarding various regarding firm aspects of from various industry sources and its 4.The sources and significance significance of Activity: Industry Identify different information manufacturing and 5.Information service industries collection and gather regarding various information aspects of firm regarding them 6.The sources and from various significance of sources. firm information Prepare a list of various policies of a manufacturing and a service firm to be used in sales presentation SESSION 2: KNOWLEDGE OF PRODUCTS/ SERVICES Meaning and 1.Meaning of Products 1.Distinguish and Interactive Lecture: importance of Goods & Services validate goods and Discussion of how to knowledge of 2.Categories of products services approach the Product and prospect effectively Services Convenience products 2. Explicate various and handle queries Shopping products Types of products by acquiring Specialty products product or service Unsought products 3.Substantiate the knowledge product features Aspects for collecting been highlighted by information about the salesperson in Activity: 1  product the sales Prepare a sales presentation presentation Product features to be enlisting various highlighted by the features of salesperson products/ services being sold 1.Acknowledge different 1. Explicate various Interactive Lecture: modes of order delivery methods of order Clarification on 2.Enumerate support delivery in selling importance of personnel activities in 2.Substantiate the timely and proper selling role of support order delivery and personnel activities different methods in selling of order delivery Activity: Enlistsupport personnel activities at a Shopping Mall SESSION 3: KNOWLEDGE OF CUSTOMERS 1. Meaning and 1.Enumerate different 1.Differentiate and Interactive Lecture: benefits of types of consumers in assess the 1. Clarification on knowledge of sales and their significance of importance of customers significance in sale types of accumulating process consumers customer knowledge 2.Explain the benefit of 2.Classify the sale 2. Acquaint with acquiring customer oriented types of different sources knowledge in selling customers. of collecting process customer 3.Sources of information gathering and its benefits. information about customers and its Activity: benefit to firm and Identify different salesman types of customers for manufacturing or service industries. Prepare a sales presentation addressing their mindset, and convert them into buyers. 2 (Note: The location would depend upon the topic under discussion, wherein it will be the classroom for the theoretical interactions and the student will be required to visit field/retail outlet or the marketing department of an organization to observe and comprehend the conceptsrelated to salesmanship.) SESSION1: KNOWLEDGE OF INDUSTRY AND COMPANY INTRODUCTION- The ‘art of salesmanship’depends upon personality and skills of salesman.A well-groomed person equipped with ‘knowledge’: the knowledge of product/ service, knowledge about the company, knowledge about the competitors,knowledge of customers,sales related marketing policiesand knowledge of selling techniques is the pre-requisite of salesmanship. Sales-person withoutproduct knowledge is just like body without soul. Of course, salesmen should ‘dress to impress’; as a good personality is the starting point of any sale; butperfect knowledge of the industry/ firm; product/services and the customer segment to be targeted helps the salesman in dealing with the customer in a satisfactory manner. There is no denying of the fact that salesmen are made and not born.This information can be provided to salespeople throughthe product brochures or manuals, the salestraining programmes or on-the–job learning in his company. It is very essential for salesmen to be conversant with all the facts related to product/service, its quality, marketing policies, pricing and credit policies of the company, warranty or guarantee policy along with the 3 knowledge of its customers and markets, because insufficient knowledgemay lower self- confidence and enthusiasm of salesmanresulting lesser sales. Acquiring knowledge is beneficial for the salesman, as it helps himin the following manner- (i) Increases the self-confidence of the salespersons:Due to knowledge of the product and its application according to the customer’s needs, salesmangains confidence and expertise in handling prospects. (ii) Satisfaction to customers:Prospects expect salespersons have good and reliable knowledge to guide them for improved operations of the product. He can guide them about how to use and what precautions should be taken while using that product. When a prospective customer finds salesman convincing enough, the sales presentation becomes more acceptable. (iii) Increase in sales through better services to the prospects: A satisfied customer makes repeat orders and also recommends it to others. (iv) Better position over competitors: With adequate knowledge of rival companies and their products, he can put across superiority of his own product. 4  Benefits of Product Knowledge to the salesmen Increase in Self Increased Sales by Confidence Obtaining Larger Orders Satisfactory services Efficiency in to customers competitive situations Knowledge of the industry and the company is generally compared to the solid foundation of a large building; which may not be in sight, but it is very essential for good salesmanship. Successful salespeople know all of the industry, their firm, product features and skillfully turn these features into benefits for their customers. The salesmen may use conventional and creative sources to gather such information. KNOWLEDGE OF INDUSTRY An industry, in fact, is a group of manufacturers or businesses that produce similar kind of goods or services. For example in the textile industry, workers design, fabricate, and sell cloth. In readymade garment industry firms manufacturing different variety clothes are considered. The tourist industry observes all the commercial aspects of tourism or the automobile industry makes cars and car parts. The salesman should collect information about the industry on following aspects- a) Knowledge about the history of industry- The salesman must know the facts about the history of industry, its various growth stages and the present stage to prepare the background of his sales presentation. b) Knowledge about other market players in the industry-He has to gather proper information about the number of firms in the industry and their market share to ascertain the standing of his own company. The salesman can collect information regarding competitors and other industry updates from various trade journals, reports of ASSOCHAM and NASSCOM, reports of private researches as well as retail surveys. These journals regularly publish information to keep members of the industry abreast of new developments in the related fields. 5  c) Knowledge about the products of rival firms- Since buyers generally compare several products while purchasing one, the salesman should also have knowledge of positive or negative features of all available products/ services of rival firms in the market before initiating selling effort for his product/ service. For example ‘Patanjali’ before launching its products at different locations, studied product line of ‘Dabur’ and ‘Hamdard’ along with their market position through variousmarket surveys. d) Knowledge about the pricing strategy of market leader firm- This information helps the firm to fix the price of its own product to stay in competition as well as to get larger market share. The salesman can indicate same/ lesser prices of his own product in his sale presentation. e) Knowledge about the promotional strategy of the firm- To catch public attention in competitive selling the mode of advertisement and propaganda should be innovative and different. The salesman should be aware of different gift schemes or reward point schemes offered by his company as well as other companies in the market. This type of information can be collected by the salesman from his own company’s website and other companies’ websites giving detailed information about its product line, the quality standards undertaken, pricing and distribution outlets etc. Similarly these websites give him an insight to competitors’ products, their strength or weaknesses to prepare his own selling strategy. KNOWLEDGE OF COMPANY The modern salesman sells not only the product but also the prestige and reliability of his company. Being representative of his companythe salesman must have thorough knowledge of the origin and growth of company, its mission and vision, his employer, the board of directors and company’s policies. a) Knowledge about the key personalities at his firm-As no business can be any bigger than the men at its back; the salesman should learn about his employer and principal personalities in his organization. He should know; who is the president of the company, the vice presidents, the treasurer, the secretary and the general manager. Who are the members of the board of directors and what are their respective functions, duties and authorities. It may help him in answering random queries at sales presentation. This information can be accumulated from company’s literature, orientation and training programmes organized by the company. b) Knowledge about the policies of the company-He should also clearly know about the mission, vision, distribution as well as sales promotion policies adopted by his undertaking. This is essential to impart confidence in the salesman. It also helps him to reconcile his selling efforts to the requirement of the situation and enables him to 6  serve the customers and company more efficiently. For example confidence in a particular automobile is created in the mind of the prospect partly by the brand name, company’s reputation, ability of designers and the integrity of the company's executives, as these characteristics give some assurance of the continued servicing of the car. c) Knowledge about the product-lineof the company- This information can be collected from product literature such as brochures and manuals.The small booklet called brochure is often used to introduce a company and inform about its products or servicesto a target audience can provide good information to the salesmen. Similarly a manual provides detailed information about operation and maintenance of a product. The training sessions at company can also provide salesmen this information. d) Knowledge about the pricing policy and sales promotion policy of the company - The salesman should be aware of the list price and the net price (list price minus discounts) of different models of products offered by the firm. He should be able to communicate the discounts and credit policies to the customers for their benefit and help them in deciding about purchase. This information again can be accumulated from product brochures and from updated literature. e) Knowledge about the distribution policy of the company- If customers enquire about company’s outlets, transportation charges or free shipping facility, the salesman can answer satisfactorily only if he is well versed f) Knowledge about the production process adopted by company-Salesman visit to manufacturing department provides him first-hand information about the product constituents and production process of the commodity being sold by the firm. This helps salesman in creating “environment friendly image” of the company. He can prepare a convincing presentation for the prospects and win them over other competing firms. 7 Knowledge Assessment - I State whether the following statements are true or false: 1. A well-groomed person equipped with ‘knowledge’: the knowledge of product/ service, knowledge about the company and knowledge of customers is the pre-requisite of salesmanship. 2. Insufficient knowledge may increase self-confidence and enthusiasm of salesman. 3. When a prospective customer finds salesman unconvincing the sales presentation becomes more acceptable. 4. A satisfied customer makes repeat orders and also recommends it to others. 5. Buyers generally do not compare several products while purchasing one. 6. The modern salesman sells not only the product but also the prestige and reliability of his company 7. The list price and the net price of different models of products offered by the firm are one and the same 8. Salesman visit to manufacturing department provides him first-hand information about the product constituents and production process of the commodity 9. A manual provides detailed information about operation and maintenance of a product. 10. Different websites give the salesman an insight into competitors’ products, their strength or weaknesses and help in preparing his own selling strategy. Answers: 1. True, 2. False, 3. False, 4. True, 5. False, 6. True, 7. False, 8. True 9. True 10. True 8  SESSION 2: KNOWLEDGE OF PRODUCTS/ SERVICES The knowledge about the company’sproducts and services is very essential for the salesman to be able to discuss accurately and persuasively with his present and prospective buyers. To satisfy their present and future wants customers demand goods and services.Goods broadly are classified as consumer goods and capital goods. Consumer Goods are directly used by the consumer for the purposes of consumption, for example bread, biscuits, butter, jam, rice, fish, eggs, shoes, shirts, fan, book, pen, cooking gas etc. ; whereas Capital Goods are demanded not to be used in further production, for example fertilizers, tools, machines, raw materials etc. Consumer good/ products can be further categorized into four different types- a) Convenience products b) Shopping products c) Specialty products d) Unsought products. a) Convenience products A convenience product is a consumer product or service that customers normally buy frequently, immediately and without great comparison or buying effort, for example laundry detergents, fast food, sugar and magazines. These types of consumer products are usually low-priced and placed in many locations to make them readily available when consumers need or want them. b) Shopping products Shopping products are a consumer product that the customer usually compares on attributes such as quality, price and style in the process of selecting and purchasing. The consumer spends much more time and effort in gathering information and comparing alternatives. These are the products like furniture, clothing, used cars, airline services etc. As a matter of fact company usually keeps fewer outlets for these products, but provides more sales support in order to help customers in the comparison effort. c) Speciality products Speciality products are consumer products and services with unique characteristics or brand identification for which a significant group of consumers is willing to make a special purchase effort; for example cars, professional and high-prices photographic equipment, designer clothes etc. In order to buy one, buyers may make a special effort and visit specific showrooms. Here skill and knowledge of salesman is very important to convince the buyer. 9  d) Unsought products Unsought products are those consumer products that a consumer either does not know about or knows about but does not consider buying under normal conditions. Consumers do not think about these types of consumer products normally, at least not until they need them. Most new innovations are unsought until consumers become aware of them. Various life insurance policies and investment plans are few examples of these types of consumer products. As a consequence of their nature, unsought products require much more advertising, selling and marketing efforts than other types of consumer products. Services - Firms produce and market different types of services as well. It may offer Personal services to individual customers and households, like healthcare, travels, entertainment, amusement, repairs, maintenance, life insurance etc. Similarly, there are Business services like advertising, market research service, consultancy, insurance etc., which are also marketed by the firms as their product. Customers expect thorough knowledge and guidance from a salesman while purchasing firm’s products/services, because of their own ignorance. Enthusiastic sales staffthatis passionate about its products/ services and is eager to share the benefits with the buyer is able to close the sale in a successful manner. a) Knowledge about the variants of product-He should possess the complete information about the product to be able to properly answer the questions of the customers at the time of sale. In case of new product especially, the buyer depends on the salesman to a great extent. The salesman should be familiar with various product assortments, the number of variants in each product line, their physical characteristics and sizes. He must know particular features, advantages and 10  benefitsof different varieties. Some knowledge about the materials used and production technique etc. is also essential for him to convince buyers about the quality of the product. For example consumers now a day are more conscious about edible organic products. They verify ingredients and check labels to find differences before purchasing it. b) Knowledge about the prices-He should be aware of the discounts and credit policies, to negotiate and close the transaction. Generally customers want to know the list price and the net price (list price minus discounts). They also enquire about transportation charges or free shipping facility. c) Knowledge about promotional schemes-The salesman should be able to explain buying incentives; i.e. the cash discounts offered to customers on particular volume of trade. He should also be able to explain the scheme of reward points on purchases and when will they be redeemable (generally, in next purchase). d) Knowledge about mode of payment and availability of the product- Whether the product is readily available in stocks or will be delivered later on, the salesman should be in the position to communicate to the customers. Along with it he must be able to communicate clearly the terms of payments and company’s credit policy to ensure timely collection of payments against the bills raised on them. He should be able to explain if the product is available at down payment, direct credit or EMI facility. e) Knowledge about the operations and applications of the product- The salesman should know about operations and applications of the product. He may help buyers by demonstrations regarding functioning and upkeep.This way he can show the level of quality control of the product and can convince his buyers that how his product quality and service is better in comparison to his competitors. For example sale of industrial goods like machines, pumps, motors or engines the salesman must have technical knowledge to convince the buyer. f) Knowledge about the provisions for customer service- It can be pre-sales service, during-sales or post-sales service, depending on the type of product or service offered. He should be very clear about the warranty or guarantee policy decided by the company.He should be conversant with the distribution channels employed to sell the product. g) Knowledge about the new models of the product to be launched in near future- The salesman should have fair idea about new models of the product to be launched in near future and their specific features. Product knowledge is an essential sales skill, as it can turn sales processeasy.The salesman can be trained about product features and other specifications in ‘special training programmes’ organized by the company. He should be given updates about these from time to time. 11 This helps thesalesmanin communicatingbenefits to potential customerin convincing way. The customer may be providedsubstantial information in the deal, in the following manner- Product features Product features to be highlighted by the salesperson Its purpose It will meetcustomer needs and save his time and money It is easy to use so customer won't be frustrated by complicated How it works features How it is developed or It is indigenous,supporting local industry and environment manufactured friendly How it is checked for quality Customer can be confident it will work properly Customer doesn't have to worry about delivery; the firm will How it is delivered organise that How it is maintained and Customer can be assured that if it needs maintenance, it will be serviced taken care of in aftersales services How long it is likely to last Customer can be confident that if it has any problems the firm (including any warranties) will fix it or replace it while under warranty Its price Customer can comfortably afford it How it compares to competitors' products Customerare receiving quality and value for money 12 Knowledge Assessment – II Fill in the blanks- 1. Product knowledge is an essential …………as it can turn sales process easy. 2. Customers expect thorough knowledge and guidance from a salesman while purchasing firm’s products/services, because of their own…………... 3. By ……………….regarding functioning and upkeep the salesman informs about operations and applications of the product 4. Generally cash discounts offered to customers on particular ………. 5. Most new …………….are unsought until consumers become aware of them. 6. ………..are a consumer product that the customer usually compares on attributes such as quality, price and style in the process of selecting and purchasing. 7. Skill and knowledge of salesman is very important to …………the buyer for speciality products. 8. Salesman should be aware of the…….. and credit policies, to negotiate and close the transaction Answers: 1.sales skill 2. ignorance 3. demonstrations 4. volume of trade.5.innovations 6. Shopping products 7. convince 8. discounts 13  SESSION 3: KNOWLEDGE OF CUSTOMERS Acquiring and retaining customers are serious concerns for a salesman and for this it is important to gather informationabout the customers. The success of a salesman lies in creating permanent customer for the product. A deeper understanding of the customers is required to discover what catches buyer’s impulse. The salesman must have a fair idea of existing and prospective buyers, their needs and preferences. Knowledge of their buying behaviour helps salesman in prospectingnew customers for sales while keeping the existing buyers loyal to the company. He should try to understand the nature, habits and motives of the customers. He should properly assess the requirements of the customers and should be capable of tackling the customers of different nature in a patient manner. There’s no single strategy for customers as each customer is unique. The salesman requires different approach to handle each one of them. He needs to do some homework for different types of consumers. There are generally three categories of consumers- a) Industrial Consumer- An industrial consumer is an entity that purchases products with the intent of using them in the course of operating a business. Theymay use them as intermediate goods in different types of industry. Customers in the agricultural industry who purchase heavy farm equipment or machines to operate commercial farming come in this category. b) Institutional customers-‘Institutional Consumer’ buys facilities or services in connection with transport , hotel , hospital, banks, insurancecompanies, financial services or other packaged commodities directly from the manufacturer or from a wholesale dealer for use by the institution. Normallyit makesbulk purchase and has better bargaining power. They also demand for product-customization, e.g. soap and shampoo for hotels are ordered in small size and packing. c) Individual Consumers -Individuals who buy for themselves or their family are called Individual consumers. A salesman encounters five sales-oriented types of customers in the process of selling. 1. Potential customer The Potential customer comes on the very beginning of sales funnel and is not a customer as yet. He has already showed some interest in the product, either by filling out a contact form, asking a 14 question, or visiting website he needs nurturing and warming up before making a buying decision.Salesman must give him the full attention and convert him as buyer. He should make sure to let the potential customer know that he/she can ask for help or advice at any time. Even if the customer won’t need it immediately, he/shewill appreciate the offer. 2. New customer New customer is the fresh customer that just bought something. He is still learning how to use the product. Salesman can guide him and show him how to use it. He can leave a contact option opento make adoption period smooth. 3. Impulsive Customer This is the type of customer that can make a buying decision in an instant, provided that the conditions are right. The salesman should make the answer, instant, short and satisfactory for his queries to make a purchase deal successful. 4. Discount customer This type of customer is that who sees value in the product but won’t buy it at full price. He is usually looking for some extra information on the exact conditions of the deal or discount being offered. Salesman can help him by explaining all the necessary details about the deal to avoid any confusion. He should help him with entering a discount code or using a coupon. The salesman needs to provide added value in the dealwhich may make him think twice before switching to another company. 5. Loyal customer This type of customer is satisfied customer who keepscoming back for purchasing again and again. He is sort of brand’s ambassador and helps the firm grow through word of mouth. He recommends the product to his friends and family, sending a healthy stream of new customers to the firm. The salesman should take note of these types of customers and try to replicate their experience. By featuring them in case studies they can be made appealing to potential customers. The salesman may get a fair idea about the present buyers from sales records of the company. To identify new buyers he may explore different market segments, understand their psychology and needs and makes an appropriate strategy to convert prospects into buyers. The knowledge of customers benefits the salesman as well as the firm many ways, e.g.- i) It provides the salesman knowledge of different market segments-Market segmentation is a way of arranging the customers into smaller groups according to their type. The salesman can communicate properly by preparing target specific, relevant marketing messages for each group while selling. For example some customers may 15  prefer the direct approach, such as personal contact or telephone marketing, while others may respond better to a local advertising campaign. ii) Helpful in targeting and identifying new prospects- The success of a salesman lies in creating permanent customer for the product. When it comes to finding new business, it is vital to establish whether there is a market for the products or services. He has to identify the type of people that would make the ideal customers for his product. The customers’ knowledge helps in targeting and identifying new prospects. The key is to draw a picture of an individual that represents the type of person salesman is aiming at. If he takes two very different types of prospect they will have very different needs, wants, values and opinions. And they will respond quite differently depending on the marketing method he uses. For example for sale of cars to the ‘ Males’ segment the salesman will observe the disposable income of buyers, their job and position, retired or are in semi-retirement and if they live in cities or a rural environment. For ‘Females’ segment the attributes under observation will be whether they are living in cities or rural areas, working or nonworking, their level of disposable income and aspirations to enjoy life to the full. iii) It indicates customers’ potential to purchase - What is important in selling is not surface differences, but the differences that actually affect buying behaviour. What triggers each person to buy is in fact his/ her purchasing capacity. This also helps in setting price for the product/ service. iv) It helps the firm for customization of products/ services according to customers’ choices- Customer groups certainly differ on gender and age lines and so are their 16  choices for the products. The young buyers go for trendy technical gizmos which are different from the products elderly buyers are most interested in. v) Helps in maximizing opportunities for cross-selling or up-selling- By increasing the understanding about what customers are buying, salesmen can also maximize opportunities for cross-selling or up-selling. Upselling is the practice of encouraging customers to purchase a comparable higher-end product than the one in question, while cross-selling invites customers to buy related or complementary items. vi) Good customer service- The knowledge of what customers buy; whythey purchase it repeatedly; or what problems they face in its use gives a fair feedback to improve customer service as well as to retain customers. Since the existence of business depends upon the level of salesand salesmanhas to be equipped with knowledge of company, product and customers. The basic purpose of producing the goods or services would be defeated if no one is ready to buy them. Therefore, the “selling skills” and “Knowledge” are vital for salesmen so that goods and services are sold in order for business to exist. Knowledge Assessment – III Make the right choice: 1. A prospective buyer generally