PERSONAL SELLING

"Personal selling involves personal presentations by the firm's sales force for the purpose of
making sales and building customer relationships.” -Philip Kotler

THE SALES PROCESS OR PERSONAL SELLING PROCESS

Salespeople perform many activities which can be broadly grouped into selling activities, and non-
selling activities. The selling activities consist of the various steps of the selling process. The
non-selling activities include preparation of sales reports, collecting payments, obtaining market
information, travelling and waiting to see customers.

There is no magic formula for making a sale. However, it is widely believed that if a salesperson follows
the following steps, the chances of success are greatly improved. The steps or the phases may not occur in
the same sequence or order that is shown.

1. Prospecting and Qualifying

(a) Prospecting
Prospecting is the process of finding potential customers who may be interested in a product
or service. It involves searching for leads, qualifying them, and checking if they are a good
match for what the company offers.
A prospect is someone who needs the product and can afford to buy it. It's different from a
sales lead, which is simply a person or business that might be interested. Once a lead is
confirmed to want the product and can purchase it, they become a prospect.
In today’s market, prospecting is crucial for companies to grow or maintain sales, especially
when sales from existing customers are slowing. While salespeople once handled prospecting,
many companies now take on this task, allowing salespeople to focus more on selling..

(b) Qualifying
It’s important to qualify a lead, or a probable prospect, to ensure they meet the necessary
standards or conditions for further attention. To qualify a lead as a prospect or potential
customer, the following conditions must be met:
• The probable prospect has a genuine need for the product or service being sold.
• The probable prospect (whether an individual, family, or organization) has the ability to afford
and buy the product or service.
To determine a lead’s interest and financial capacity, most companies contact them via phone
or mail. In the past, it was the responsibility of salespeople to reach out to leads, but today,
many companies have marketing departments handle the prospecting and qualifying process.
Once a lead is qualified, they are categorized into three groups: hot prospects, warm prospects,
and cool prospects.
• Hot prospects: These prospects have strong needs for the company’s products or services and
are financially stable. They are handed over to the sales team for conversion into customers.
• Warm prospects: These prospects have moderate needs for the company’s products or services
and are financially capable. They are usually followed up by the telemarketing team.
• Cool prospects: These prospects have lower needs or their financial capacity is uncertain. They
are either passed to intermediaries (such as dealers or distributors) or placed on a pending list
for future follow-ups.

2. Preapproach
The pre-approach step involves two main tasks: gathering information about the prospect and planning
the sales call.
(a) Information Gathering
The salesperson needs to learn as much as possible about the prospect. This includes understanding the
prospect’s business, products, services, buying habits, location, decision-makers, and any challenges they
face. Information can be gathered from sources like the internet, trade magazines, company annual
reports, industry directories, government publications, and even current customers and suppliers. Having
detailed information boosts the salesperson's confidence.
(b) Planning the Sales Call
Before reaching out to the prospect, the salesperson should plan the approach. This includes setting clear
objectives for the call and planning the sales strategy.
• Setting Call Objectives: The salesperson needs to decide what they want to achieve, such as gathering
information on the prospect's needs, understanding their buying habits, checking if the prospect is ready
to reorder, or making a sales presentation. The objective should be specific for each call.
• Planning the Sales Strategy: This involves deciding when and whom to contact (e.g., a purchasing
executive or an admin officer). The salesperson should also decide which product from the company is
most likely to meet the customer’s needs and how to present the product’s features and benefits in the
sales call.
3. Approach

After gathering the prospect’s name and other important details during the pre-approach, the
next step is to schedule an appointment to meet with the prospect. This is called the approach.
The approach, or meeting the buyer for the first time, usually takes just a few minutes, but it
can make or break the sale. When a salesperson meets a potential customer, making a good
first impression is crucial. This first impression is influenced by the salesperson’s appearance
(such as dressing similarly to how the buyer dresses), their attitude, and the opening line they
use.

4. Presentation and Demonstration

 Given the importance of relationship selling today, it’s essential for a salesperson to first
understand the customer’s needs before selecting the appropriate sales presentation method and
developing an effective pitch. The process follows these steps:
(a) Understanding the Buyer’s Needs:
The best way to understand a prospect’s needs is by asking the right questions.
• Situational Questions: These questions help gather information about the prospect’s current
situation. For example: Who is involved in the decision-making process for this
product/service? or Are you buying this product/service for the first time, or are you switching
from another supplier?
• Problem Identification Questions: These questions aim to uncover the customer’s problems,
challenges, or needs. For instance: Have you faced any quality or delivery issues with your
current suppliers? or Which parts of your existing system are causing errors?
• Problem Impact Questions: These questions help the buyer realize the consequences of their
problems and why they need to be solved. These are the most important questions. Examples
include: What impact do quality and delivery issues have on your costs and customer
satisfaction? or What effect do the errors in your system have on your customers?

(b) Knowing Sales Presentation Methods:

Salespeople should be familiar with different methods for making a sales presentation, each
designed to suit different customer needs and situations:
• Stimulus-Response Method: A method where the salesperson provides a stimulus (e.g., an
offer or feature) and expects a response from the customer.
• Formula Method: A structured, step-by-step approach that follows a predefined sequence of
questions and solutions like AIDAS
• Need-Satisfaction Method: Focuses on identifying the prospect’s needs and tailoring the
presentation to satisfy those specific needs.
• Team Selling Method: Involves multiple salespeople working together to address a prospect's
needs, each bringing their expertise to the table.
• Consultative Selling Method: The salesperson acts as a consultant, focusing on building a
relationship and offering tailored solutions to the customer’s problems.

(c) Developing an Effective Presentation:

Creating an effective presentation involves careful planning and the use of the latest technology.
The salesperson should avoid overloading the prospect with too much information, using
 language the prospect can easily understand without technical jargon. The tone should be
persuasive, with third-party proof or testimonials to back up claims.

Demonstration: Demonstration is a key selling tool for a salesperson. It enhances the sales
presentation by proving the benefits of the product and reducing the buyer's fear of making a
wrong purchase. This is why car salespeople offer test drives, and many industrial product
manufacturers arrange demonstrations of their products in action.
Some of the benefits of using demonstration as a selling tool include:
• Clearing doubts and answering questions: Demonstrations help address any objections or
concerns the buyer may have, increasing their interest in the purchase.
• Providing strong support in the selling process: Demonstrations strengthen the salesperson’s
pitch by showcasing the product’s value in real-time.
• Identifying the prospect’s specific needs: Demonstrations allow the salesperson to better
understand the customer’s requirements, enabling them to show how their product or service
can meet those needs more effectively than competitors.

5. Overcoming Objections
Sales objections, resistances, or oppositions often arise during the sales presentation or when
the salesperson asks the prospect for the order. Objections should be welcomed, as they indicate
the prospect has some level of interest. If the objections are answered satisfactorily, they can
lead to a sale.
There are two types of objections:
1. Psychological (or Hidden) Objections: These involve internal factors such as preconceived
beliefs, a preference for established brands, reluctance to make decisions, anxiety, or resistance
to spending money.
2. Logical (or Real) Objections: These are tangible issues like high prices, concerns over product
quality, delivery times, or product availability.
Overcoming Psychological or Hidden Objections:
The best way to uncover hidden objections is by asking the prospect open-ended questions that
encourage them to talk more. This not only helps the salesperson understand the prospect’s
concerns but also assists the prospect in clarifying their own thoughts. However, it's important
for the salesperson to avoid arguing with or criticizing the prospect, as this can result in losing
the sale.
Several methods can help handle and overcome logical objections effectively:
• Ask Questions
• Turn an Objection into a Benefit
• Deny Tactfully
• Third-Party Certificate
• Compensation

6. Trial Close/ Closing the Sale

The trial close is a selling technique that helps a salesperson gauge the prospect's attitude or
opinion without directly asking for a purchase decision. It is used after the sales presentation,
especially if there are unanswered objections, or just before attempting to close the sale. The
purpose of the trial close is to check the prospect's readiness to buy without pressuring them. If
the salesperson tries to close the sale immediately and the prospect says "no," it can be difficult
to change their mind afterward.
If the prospect responds positively to the trial close, the salesperson knows it's time to ask for
the order. However, if the response is negative, it indicates that the prospect didn’t like the
feature, advantage, or benefit presented. In this case, the salesperson should revisit the
presentation and address the prospect's concerns before attempting to close the sale.

Closing the sale means asking the prospect to make a decision to buy. It is the process of
helping the buyer make a choice that benefits them. Prospective buyers often give subtle signals
indicating their readiness to buy. Some common buying signals include:
• The prospect examines the product carefully.
• The prospect seeks the opinion of another person.
• The prospect asks questions related to the product, price, or payment terms.
• The prospect becomes more friendly once they’ve mentally decided to buy.

7. Follow up and Service

Salespeople must understand that their job doesn’t end once the order is placed. Successful
salespeople follow up on various tasks, many of which fall under customer service:

• Account Penetration
Successful salespeople know that there’s still work to be done after making the sale. By staying
in contact with the customer, they build a strong foundation for a lasting business relationship.
Account penetration involves reaching out to various people within the customer’s organization
 to discuss the company's products and services. Effective account penetration relies on
understanding the key decision-makers and their buying situations within the organization.
• Relationship Marketing
Today’s salespeople focus on building and maintaining long-term, mutually beneficial
relationships with key customers. Companies recognize that retaining existing customers is
more cost-effective than acquiring new ones. By providing excellent follow-up and customer
service, salespeople can foster customer loyalty and turn one-time buyers into lifelong
customers.
• Negotiation
Salespeople must possess the skills and qualities necessary for effective negotiation. Whether
dealing with one individual or a group, negotiation is often a part of the selling process. While
routine exchanges (like purchasing fuel or train tickets) may not involve much negotiation,
business-to-business (B2B) sales often do. In B2B selling, negotiations on pricing, payment
terms, delivery schedules, and other conditions are common and critical to closing deals.

PERSONAL SELLING STRATEGIES

1. Consultative Selling
Consultative selling is about building a strong relationship with the customer by deeply
understanding their unique needs, challenges, and goals. Instead of focusing purely on selling
a product, the salesperson acts more like a consultant, asking probing questions, actively
listening, and offering tailored solutions that align with the customer’s requirements. This
approach helps in building trust and ensures that the customer receives a solution that best fits
their situation.

Objective: The objective of consultative selling is to establish trust and provide value by
offering personalized solutions that directly meet the customer's needs. It focuses on becoming
 a trusted advisor rather than just a seller, aiming for long-term customer satisfaction and repeat
business.

2. Solution Selling
Solution selling focuses on addressing a specific problem or need the customer faces, rather
than simply promoting a product. In this approach, the salesperson identifies the customer’s
pain points and then presents a product or service that offers a comprehensive solution to those
problems. It's particularly useful when selling complex products or services, as it helps to
demonstrate how the offering can create value for the customer by solving a key issue.

3. Relationship Selling
Relationship selling prioritizes the development of long-term relationships with customers over
one-time transactions. The idea is to provide continuous value and support, fostering loyalty
and repeat business. Salespeople using this strategy stay in regular contact with customers, offer
post-purchase support, and ensure that the customer’s needs are always met, which can lead to
stronger customer retention and referrals.

Objective: The objective of relationship selling is to build trust and long-term partnerships with
customers. It focuses on customer retention, loyalty, and satisfaction, aiming to turn a one-time
sale into a long-lasting business relationship that generates future sales and referrals.

4. Adaptive Selling
Adaptive selling involves adjusting your sales techniques and approach based on the unique
behavior, needs, and communication style of each customer. Salespeople using this strategy
recognize that different customers may have different expectations and preferences when it
comes to how they like to be sold to. By being flexible and responsive, adaptive selling helps
ensure that the salesperson can connect effectively with the customer, creating a more
personalized and successful sales experience.

Objective: The objective of adaptive selling is to tailor the sales approach to each customer’s
individual preferences and buying behavior. By adapting to the customer's communication style
and needs, the salesperson aims to increase the likelihood of a sale and build a better rapport
with the customer.
5. Targeted Selling
Targeted selling is about focusing on the right prospects—those who are most likely to benefit
from and purchase your product or service. Instead of trying to appeal to a broad audience,
targeted selling uses customer segmentation and research to identify specific individuals or
organizations that have a higher likelihood of converting. By honing in on these high-potential
prospects, salespeople can use their time and resources more efficiently, increasing the chances
of a successful sale.

Objective: The objective of targeted selling is to increase sales efficiency by focusing on

prospects who are most likely to convert. This approach helps in improving conversion rates
and maximizing the return on investment (ROI) in sales efforts.

6. Needs-Based Selling
This approach involves uncovering the underlying needs of the customer through active
listening and insightful questioning. Instead of assuming what the customer wants, the
salesperson digs deeper into what challenges or desires the customer has, and then tailors the
sales pitch accordingly. By addressing the specific needs and presenting solutions that speak
directly to those needs, the salesperson creates a more compelling case for the product or
service.

Objective: The objective of needs-based selling is to identify and understand the customer’s
core needs and to offer the most suitable product or service that addresses those needs. This
strategy helps in increasing the chances of a successful sale by aligning the product with the
customer’s expectations.

7. Social Selling
Social selling leverages social media platforms like LinkedIn, Twitter, and Facebook to build
relationships with potential customers. Salespeople engage with prospects by sharing valuable
content, responding to inquiries, and offering relevant insights. Social selling allows
salespeople to establish credibility, trust, and connections with potential clients over time, often
leading to more meaningful and less intrusive interactions than traditional cold calling.

8. Upselling and Cross-Selling

 Upselling is the practice of encouraging a customer to purchase a more expensive or upgraded
version of the product they are considering. Cross-selling involves suggesting complementary
or related products that enhance the primary purchase. Both strategies focus on increasing the
overall value of the sale by offering additional items that align with the customer's interests or
needs, thus creating a better overall experience for the customer while boosting sales revenue.
Objective: The objective of upselling and cross-selling is to increase the average transaction
value by offering additional products or upgrades. This approach aims to provide greater value
to the customer while maximizing sales revenue.

9. Active Listening and Questioning

Active listening is crucial in personal selling as it shows customers that their needs and concerns
are heard and valued. Salespeople using this strategy ask thoughtful, open-ended questions to
fully understand the customer’s situation, and then listen carefully to the responses. By
demonstrating genuine interest and empathy, salespeople can better address the customer’s
needs, build rapport, and customize their pitch accordingly.

Objective: The objective of active listening and questioning is to fully understand the
customer’s needs and concerns. By listening carefully and asking insightful questions, the
salesperson can offer the most relevant solution and foster a stronger relationship with the
customer.

10. Transactional Selling

Transactional selling focuses on making quick, one-time sales transactions rather than nurturing
long-term relationships with the customer. The emphasis is on the product itself and the
immediate benefits it offers. Salespeople using this strategy are typically more focused on
closing the sale efficiently and may use high-pressure tactics or promotional offers to push
customers into making a decision quickly.

Objective: The objective of transactional selling is to close a quick sale by focusing on the
immediate need and product features. The goal is to maximize sales volume and drive
immediate revenue, often with little emphasis on future customer engagement or relationship-
building.

11. Value-Based Selling

 Value-based selling focuses on demonstrating the long-term value or benefits a product or
service will bring to the customer. Rather than simply listing features, the salesperson
emphasizes how the offering will improve the customer’s business or life, whether through cost
savings, increased productivity, or enhanced efficiency. This approach aligns the salesperson’s
efforts with the customer’s goals and helps frame the product as an investment.

12. Emotional Selling

Emotional selling targets the psychological and emotional aspects of the customer’s decision-
making process. It involves understanding the emotional triggers that drive buying behavior,
such as fear of missing out (FOMO), a desire for prestige, or a need for security. By tapping
into these emotions, salespeople can create a more compelling argument that resonates deeply
with the customer, increasing the likelihood of a purchase.
Objective: The objective of emotional selling is to connect with the customer on an emotional
level, driving the purchase decision through feelings rather than purely logical reasoning. This
approach aims to create a strong emotional bond, making the product or service more desirable.

THEORIES OF PERSONAL SELLING

1. AIDAS
The AIDAS Theory of Selling is a widely recognized sales model proposed by E. St. Elmo
Lewis in 1898. The acronym AIDAS stands for Attention, Interest, Desire, Action, and
Satisfaction, and it outlines the steps a salesperson should follow to successfully guide a
prospect through the buying process. Each of these stages serves a unique purpose in helping
the salesperson move the prospect from initial contact to a completed sale and even beyond,
into customer loyalty.
1. Attention
The first step in the AIDAS model is securing the prospect's attention. Without attention, the
salesperson cannot proceed with the rest of the selling process. This stage is critical because it
 sets the tone for the entire interaction. If the salesperson fails to capture the prospect's attention
early on, it will be difficult to engage them further.
Securing attention can be achieved in several ways, such as:
• Offering an intriguing introduction or question.
• Using visually striking product displays or demonstrations.
• Starting with a relevant fact or statistic that resonates with the prospect.
• Highlighting a unique feature or advantage of the product that differentiates it from others.
The purpose of this step is to ensure the prospect is interested enough to listen and engage in
the conversation. It's essential that the salesperson quickly gets the prospect to focus on what
they have to offer.
2. Interest
Once the salesperson has the prospect’s attention, the next step is to gain their interest. This
phase is about engaging the prospect by providing information that speaks directly to their needs
or concerns. Now that the salesperson has the prospect’s focus, the goal is to keep them
intrigued and encourage further conversation.
Salespeople can achieve this by:
• Identifying the prospect’s specific needs and presenting how the product or service can meet
those needs.
• Explaining the benefits of the product, rather than just focusing on its features.
• Providing facts, statistics, or case studies that reinforce the product's value.
• Using relatable examples or testimonials that show how the product has helped others in similar
situations.
The key here is to tailor the information to the prospect’s interests, keeping them engaged and
moving toward the next stage in the sales process.
3. Desire
After gaining the prospect's interest, the next step is to kindle desire for the product or service.
This is the stage where the salesperson must create an emotional connection with the prospect.
It's not just about presenting features or benefits anymore—it's about showing the prospect how
the product or service can solve their problems, fulfill their needs, or improve their situation.
At this stage, the salesperson should:
• Focus on the product’s unique selling points (USPs) and how it stands out from the competition.
• Illustrate how the product will make the prospect’s life easier, more enjoyable, or more
productive.
• Tap into the prospect's emotions, making them visualize how the product will fulfill their
desires or alleviate their pain points.
• Leverage testimonials, endorsements, or success stories to build credibility and show real-world
value.
The goal is to shift the prospect’s mindset from seeing the product as merely an option to seeing
it as a must-have solution to their needs.
4. Action
Once the prospect’s desire for the product has been cultivated, the salesperson must induce
action—which means encouraging the prospect to make a purchasing decision. This stage
involves closing the sale or at least securing a commitment from the prospect to take the next
step, such as scheduling another meeting, signing a contract, or making the final purchase.
This is the pivotal moment when the salesperson transitions from providing information to
facilitating a decision. Successful action requires the salesperson to confidently ask for the sale
and guide the prospect toward making a commitment.
5. Satisfaction
The final step in the AIDAS model is building satisfaction. The sale does not end once the
prospect has made a purchase. In fact, ensuring customer satisfaction is crucial to fostering
long-term relationships and repeat business. Satisfied customers are more likely to return, buy
more, and refer others.
Satisfaction helps ensure the customer feels confident in their decision and happy with their
experience, which in turn encourages repeat business, referrals, and positive word-of-mouth.

2. RIGHT SET OF CIRCUMSTANCES

The Right Set of Circumstances Theory of Selling, also known as the Situation Response
Theory, suggests that a sale occurs when all the right conditions align. In simpler terms,
everything must be right for the sale to happen—this includes the buyer's needs, the
salesperson's approach, the timing, and the environment. The theory highlights that a successful
sale isn't just about the salesperson’s efforts but about creating the perfect situation where the
prospect is ready to buy.

The key idea is that a salesperson must recognize when the conditions are favorable for a sale.
Factors like the buyer’s readiness to make a purchase, the specific problem they are looking to
 solve, and how well the product fits their needs play a crucial role. If the salesperson can
understand and respond to the buyer’s situation effectively, they increase the chances of
making the sale. This theory emphasizes situational awareness and adaptability in sales.

In essence, "everything was right for that sale" sums up the theory. It’s about responding to
the situation at hand—whether it’s timing, approach, or product relevance—and ensuring that
the conditions align to help the buyer make a purchasing decision. By recognizing the right
circumstances and leveraging them, a salesperson can maximize their chances of closing the
deal.

3. BUYING FORMULA THEORY

The Buying Formula Theory of Selling, created by E.K. Strong Jr., explains the mental
process that buyers go through when making a purchase. The theory highlights that buyer needs
and problems are the main focus, and the salesperson's role is to help the buyer find the best
solution. This formula maps out a series of steps, representing the psychological process a
buyer follows.

The formula begins with the buyer’s need or problem, which drives the decision-making
process. Next, the buyer looks for a product or service that solves this need. The trade name or
brand comes into play as the buyer evaluates different companies offering the solution. After
considering the options, the buyer moves toward making a purchase, and eventually, they feel
either satisfied or dissatisfied with their choice.

The theory emphasizes the buyer’s responses at each stage and focuses on the psychological
aspects of the decision-making process, assuming that the salesperson will not ignore external
factors. The process can be summarized as: Need or Problem → Product or Service → Trade
Name → Purchase → Satisfaction/Dissatisfaction. This approach stresses the importance of
understanding and addressing the buyer's needs throughout the sales process to ensure they are
satisfied with their decision.

4. BEHAVIOURAL EQUATION THEORY

The Behavioral Equation Theory of Selling focuses on the psychological and behavioral
aspects of how a buyer makes a decision to purchase a product or service. This theory
 emphasizes the role of drives, cues, response, and reinforcement, and how they contribute to
influencing the buyer’s behavior.

• Drives:
Drives are the internal motivations or needs that push the buyer to take action. These can be
innate drives (such as physiological needs like hunger, thirst, or safety) or learned drives
(motivations shaped by past experiences or social influences). Drives are the psychological
forces that create a sense of urgency or desire to fulfill a need, and they are a key factor in
determining whether a buyer is motivated to take action.
• Cues:
Cues are external signals or stimuli that trigger the buyer’s response to a product or service.
Cues can be triggering (immediate, clear signals such as an advertisement or sales pitch) or
non-triggering (subtle, long-term influences such as brand reputation or prior experiences).
Cues help guide the buyer’s attention and influence their thought process, making them more
receptive to the offer or message being presented.
• Response:
Response refers to the behavior or action that the buyer takes as a result of the interplay between
drives and cues. This could be a decision to buy the product, seek more information, or even
reject the offer. The response is shaped by how well the cues align with the buyer’s drives and
how strong those drives are at that moment.
• Reinforcement:
Reinforcement refers to the outcomes or feedback that occur after the buyer’s response.
Positive reinforcement (such as the satisfaction of purchasing a product that fulfills a need)
strengthens the likelihood that the buyer will respond favorably in the future. Negative
reinforcement (such as dissatisfaction or regret from a poor purchase decision) may diminish
the likelihood of future positive responses. Reinforcement shapes future behavior and helps
solidify the buyer’s perceptions of the product, service, or salesperson.

Formula:

The overall formula for the Behavioral Equation Theory is:

B=P*D*K*V

Where:
• B represents the Response or the behavior of the buyer.
• P is the Predisposition or inward response tendency of the buyer.
• D is the Present Drive Level, the internal need or motivation at the time of the buying decision.
• K represents the Incentive Potential, or the external influences or incentives motivating the
buyer.
• V refers to the Intensity of Cues, or the strength of external stimuli influencing the buying
decision.

The Behavioral Equation Theory shows that the buyer’s response is the result of complex
psychological factors—drives, cues, reinforcement, and their predisposition—interacting with
external stimuli. By understanding and influencing these factors, a salesperson can better guide
the buyer toward a purchase decision.