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Module-1
Introduction to sales management: Meaning, Evaluation, Importance, Emerging Trends in Sales
Management, elementary study of sales organizations, qualities and responsibilities of sales manager.
Selling skills & selling strategies: Selling and business Styles, selling skills, situations, Personal Selling:
Meaning and definition, selling process, sales presentation, Handling customer objections, Follow-u
action.
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MODULE 1

INTRODUCTION TO SALES MANAGEMENT

Sales Management Meaning:

It is the attainment of sales force goals in an effective and efficient manner through planning,
staffing, training, leading and controlling organizational resources.
Sales management is the process of developing a sales force, coordinating sales operations, and
implementing sales techniques that allow a business to consistently hit, and even surpass, its
sales targets.
DEFINITION:
According to American Marketing Association sales management refers “the planning,
direction and control of personnel selling, including recruiting, selecting, equipping, assigning,
routing, supervising, paying and motivating as these tasks apply to the personal sales force”.

NATURE OF SALES MANAGEMENT

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 Goal-Oriented: Similar to other management activities, sales management also have a

specific purpose and intended for the achievement of specified goals or objectives.
 Continuous Process: The sales manager needs to perform sales management functions
regularly, and this process is never-ending.
 Systematic Approach: It is an organized way of handling the sales function of the company
where every problem has a defined and proven solution.
 Relationship Selling: The salespeople make efforts to build a strong customer relationship to
sell the products or services effectively.
 Marketing Management Integration: Marketing is a broader concept; marketing
management includes all the activities related to sales management.
 Different Sales or Job Position: It is the combined efforts of the whole sales team, including
salesperson, sales executive, sales head, sales manager and after-sales service personnel.
 Pervasive Function: It is a universally applicable concept which has been adopted and tested
by every kind of business organizations.
EVALUATION OF SALES MANAGEMENT

A. The beginning era identified as Simple TradeEra, lasted from the beginning of the
marketing concept to the mid 19th century. In this period whatever products available
were harvested with limited offerings. Exploration and trade in resources was the focus
of the economic activity with products as center of attraction.

B. In the next stage the simple trade era was replaced by the production era, continued
until the great depression. In this era importance was given on engineering and
production. The primary objective was to only produce product and sell it to the
market in assumption that customers have to accept it as alternatives were not
available.

C. The sales era lasted between 1920’s and 1940’s,emphasized on different marketing
related aspects rather than product only. As consumer markets were saturated and
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competitions were increasing day by day so it was not easy to sell product without
providing adequate information about the brand. Here price became one of the most
important features to organizations to get an edge over their rivals.

D. During the post Second World War phase, World featured economic boom resulted a
urgent need of a separate department for marketing called as Marketing Department
Era. Here organizations experienced that past sales orientation concept were not
sufficient to motivate consumers as they have more bargaining power in market
place. Business consolidated market related activities like advertisement, sales
promotion, public relation etc into a consolidated department and concentrating on
brand positioning.

E. As the premise of the marketing concept became widely accepted so the era of
marketing organization emerged to take care of customers’ need. Now customers are
the focal point and all employees became part of the marketing effort. In the classical
theory of marketing evolution this is the last stage followed by two modified version of
sub-stages.

 This sub-stage within marketing concept identified as the relationship marketing

concept. The goal of the organization is to build-up a long-term relationship with
customers. The general focus has changed to lifetime customer value and customer
loyalty. Customer relationship management and data-mining become the buzzwords in
recent marketing scenario.

 The second sub-stage within the marketing concept is identified as social/mobile

marketing concept. It summed-up the knowledge and theories of its predecessor era but
focuses on real-time connections and social exchanges based on build-up relationship
driven by the consumers. In this concept businesses are connected 24/7 to current,
future and potential consumers in real time.

Industrial revolution that took place in the 18th century gave rise to the expansion of market
which required professional approach in selling. The history of salesmanship is as old as human
civilization. The business and trade of buying and selling goods flourished over centuries and
centered only on some specific cities of the world.

The first sales people

The first sales people in the US were Yankee peddlers who carried clothing, spices, and
household articles from one part to another part. These move from one village to village and sell
sarees, dress materials and spices mostly in the rural markets because rural housewives have

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lessor mobility than urban housewives.

Pack Peddlers
The pack peddlers in India traded with the tribal Indians and exchanged knives, beads and
ornaments and handicrafts. They sold colored sugar water as medicine and cheated people from
smaller gains. In the beginning of the 19th century, these peddlers started using horse driven
carts and wagons and started stocking heavier goods.

Greeters and Drummers (Intermediary to buyer)

Wholesalers and manufacturers hired greeters and drummers who would seek out and invite
retailers to visit the display of the owner. The drummers would meet the passengers form
incoming train and ship with great fanfare to beat their competitors. In the next phase, the
drummers started visiting customer’s place of business. There were fewer than 1000 traveling
sales people before 1860 in the US who were basically credit investigators and took orders for
goods

Selling Techniques
The techniques of modern sales management and selling techniques were refined by John Henry
Patterson, widely known as the father of modern sales management. He ran the National Cash
Registry.

He asked his best sales people to demonstrate their sales techniques to other salespeople.
The best sales approach was printed in a sales primer and distributed to all the other sales people
to follow.

Modern Sales Management

Today the process of sales management has undergone numerous changes in terms of strategy,
practice and technological adoption to achieve the desired goal. A sales person has become the
information provider. The real sales activity is now in retaining customers rather than just
closing the sale.

This relationship approach has changed the scope of sales management and research has found
that is costs five times more to register a new customer than to sell a product or service to an
existingcustomer

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The Domain of Sales Management

The domain of sales management has become multidisciplinary in which sales manager has to
manage a diverse workforce and complex technologies. Sales manager have to perform duties such as
recruiting, selecting, training, motivating, forecasting, controlling and administering people. They
have to manage and satisfy multiple and satisfy multiple stakeholders such as customers, suppliers,
sales representatives and top management with the objective of increasing sales and profitability.

IMPORTANCE OF SALES MANAGEMENT

1. It is Dagmar of the marketing system-
This is the first importance of sales management and it means that sales management helps the
marketing and selling plans to convert or transform into profitable actions. Sales managers can attain
sales target by proper knowledge of marketing and selling. Through this point, the sales
management decides the profitable strategies for making the sales effective in the market because it
helps to target potential buyers, regular customers, and market opportunities.

2. It manages the sales force-

The sales force is the second importance or scope of sales management and it means that the sales
manager is responsible for all the activities such as recruitment, selection, training &
development, performance appraisal, and compensation of the salespeople.
Through this function, the sales manager decides or choose the best possible person or employee for
the work in an organization.

3. Sales management inspires sales-

This is the third importance of sales management and it means is an effective sales manager inspired
the sales people such that they have passion to sell the product or have curiosity to attain sales. Sales
manager should have a team that should be productive in giving results.

4. To give training to the salespeople-

Training is the fourth importance of sales management and it means it will help to increase the skills,
knowledge, and abilities of a particular individual so that he can provide an appropriate solution to the
customers.
In every organization, the training is the main source for the enhancement of newbies (i.e., new
individuals who work in an organization).

5. To establish a brand image and goodwill-

This is the fifth importance or scope of sales management and it means that the sales
managers inform the customers of the upcoming products. The customers are induced to buy the
product because of the brand image and better performance over prolong the period of time can result

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in goodwill of the product among the customers and intermediaries. For example– Apple (i phone),
Kellogs cornflakes, and so on.
6. To manage the sales data-
Sales data is the sixth importance or scope of sales management and it means that the role of the sales
manager is to collect the information related to consumer tastes and preferences, income occupation
which will give idea related to consumer purchasing power that can affect the selling process.

7. To evaluate the performance-

This is the eighth importance of sales management and it means that the evaluation of a sales
performance will try to understand what deviations is their between actual sales and desired sales in
its the sales are lagging behind than immediate corrective measures need to be adopted.

8. The motivation of the sales force-

Motivation is the ninth importance of sales organisation/management and it means that motivate
the salespeople to attain or achieve sales targets they can provide incentives and bonuses to effects.
In an organization, motivation is the key factor for the development of an employee, representative,
executives, personnel, and individuals.

Other factors or importance-

This is the tenth importance of sales management and it includes various points like:
• To recruit the sales people,
• To boost the moral,
• To give direction,
• To coordinate the sales activities,
• To organize the sales force,
• To improve effectiveness.
• The amount spent on selling product is very high.
• Salesforce is the primary contact points so much attention to be given for improving
the ability of selling through training and motivation.
• Personal selling is the most commonly used method of promotion.
• In most industrial markets, personal selling comprises the majority of the promotional
budget and is a significant part of overall budget.
• Customers consider salesperson as the company selling product.
• With the advent of internet technology and web based platforms for interaction with

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customers, personal selling has become a method of marketing communication which

fosters personalized and interactive dialogue with customers

PERSONAL SELLING:

It is a personal communication of information to influence a prospective customer to buy something- a

good, service, or idea that satisfies an individual’s needs.

Personal selling is selling technique involved between person to person and between the prospective
buyer and seller.

Personal selling is so important because the sales person is the catalyst that making reaction in the
Marketing activities. Eg: Business Firms, factories, Retailers, Banks, Hotels, Personal Computers,
Laptops For Institutes, Audio Visual Equipments etc…

TYPES OF PERSONAL SELLING

Personal selling can be broadly classified into three categories.

 Retail selling : Selling to ultimate consumer.
 Field Selling : Business to business selling that take place in the prospective customer's place
of business.
 Telemarketing : Using the Telephone as the primary means of communicating with
prospective customers & Telemarketers often used computers for order taking.
 Inside Selling : Business to business selling in the Sales person’s place of business.
 Industrial selling: all forms of personal selling to organisational and industrial buyers of
products for resale, or for use in manufacture, or for use in the operation of their businesses.
 Selling to reseller: A reseller will buy goods for resale and make a profit, a retailer
purchasing goods ,that he will then sell on to his customer for a marked up price.
 Institutional selling: all those sales which are done to institutions .Institutions have their own
captive audience or dedicated customers .
 Selling to Government: businesses selling products, services or information
to governments or government agencies

o Retail selling
o Service selling

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1. Global Presence-
Being a global, it is very necessary to face stiff challenges from global companies. Due to differences in
culture, language and taste and preferences of customers it is not easy to adopt global condition. So
sales force should have well equipped with improved technology, strategy and operational to upgrade
themselves for international level.
2. Innovative technology-
Revolution in technology helped companies to communicate with world-wide customers in ease way.
To promote products sales management on behalf of organization should adopt new innovative
technology. So it is important for sales manager to aware off recent technologies using to get edge in
competitions.
3. Better Customer Relationship Management (CRM) –
Being a successful organization in today’s competitive world it is necessary to build long-term
relationship with customers. It is less costly to retain an old customer rather than acquiring a new one.
So building up long term relationship will help the organization to know better about needs and wants
of the customers as referral process is very important for the organization. It is not only building the
brand image but also provide favorable condition to operate
4. Diversity among Sales-force-
There is always exist diversity between sales-force of an organization. Sales manager has to
accommodate himself with people of different background within his sales-force.
5. Team Based Selling Approach-
In recent years it is common approach for the organization to sell the product as a team to build long-
term relationship with potential customers. It is also very useful when technically complex products are
in the process to sell. Generally sales team consists of top management, inbound and outbound

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salespersons, technical specialists etc.

6. Multi-channel Operations-
In today’s competitive world, multi- channel operation system is very useful to reach out for potential
customers in different ways.
It is very handy for
 lowering channel cost,
 customized selling techniques with broad coverage.
7. Ethical and Social Issues-
In recent years it is necessary to abide social and ethical issues such as legal constraints, provide social
values to customers’ expectations and taking part in events related to corporate social responsibilities.
Sales manager has to understand the complex nature of the society and take necessary steps to deal
impartially with various social groups.
8. Professionalism within Sales-force-
Sales manager should have professional attitude to process sales operation. As customers are well
informed and aware about the market condition thoroughly so it is necessary to gather knowledge, skills
and right attitude to motivate them. Reliability, professionalism, integrity and thorough market
knowledge is very necessary for today’s competitive world.

ELEMENTARY STUDY OF SALES ORGANIZATION

Organisation structure defines the organization's hierarchy of people and departments as well as how
information flows within the organization. • It determines:- – how and when information is distributed
as well as who makes what decisions based on the information available. – How job tasks are formally
divided, grouped and coordinated.

Organizational design – The process by which managers create a specific type of organizational structure and
culture so that a company can operate in the most efficient and effective way

Sales organization is an organization of individual either working together for the marketing of
products and services, manufactured by an enterprise or for products that are procured by the firm for
the purpose of reselling.
A sales organization defines the duties, roles and the rights and responsibilities of sales people engaged
in selling activities meant for the effective execution of the sales function.

Sales organisation depends on:

 Own sales effort or thru agents , Direct selling or through intermediaries: wholesale,

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 C&F agent, distributor, retailer Telesales or salesmen

 Payment terms, Inventories
 Targets
 Integration with management goals

FACTORS INFLUENCING STRUCTURE

1. Environment: The quicker the environment changes, the more problems face managers. Structure
must be more flexible (i.e., decentralized authority) when environmental change is rapid.
2. Strategy : Different strategies require the use of different structures.
• A differentiation strategy needs a flexible structure, low cost may need a more formal structure.
• Increased vertical integration or diversification also requires a more flexible structure.

3. Technology: The combination of skills, knowledge, tools, equipment, computers and machines used
in the organization. More complex technology makes it harder for managers to regulate the
organization. Technology can be measured by:
• Task variety: the number of new problems a manager encounters.
• Task analyzability: the availability of programmed solutions to a manager to solve problems.

4. Human Resources: Highly skilled workers whose jobs require working in teams usually need a more
flexible structure. Higher skilled workers (e.g., CPA’s and doctors) often have internalized professional
norms and values. Managers must take into account all four factors (environment, strategy, technology
and human resources) when designing the structure of the organization.

Other factors:
 Product and service related factors
 Organization related factors
 Marketing mix related factors
 External factors

ORGANIZATIONAL PRINCIPLES
A sales manager needs to understand the various organizational principles that help in the smooth
functioning of the organization, supports the work of the team and helps the team to respond to market
opportunities.

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 Span of control
Number of subordinate and sales staff under the supervisor of a sales Manager is known as span of
control. When new recruits have to be handled Narrow span of control can be used or else wider span of
control is preferred.

 Centralization and Decentralization

The extent of control authority of the top management decides the level of centralization. Highly
centralized organization-Every decision will be made by the top management. Decentralization helps
organization to be competitive at the respective market level.

 Integration and co-ordination

The organization across departments integrated to serve customer with effective co-ordination.

TYPES OF SALES ORGANIZATION:

Sales organisations are generally classified into four basic types:

• Line Organisation
• Line and staff organisation
• Functional organisation
• Horizontal organisation

LINE SALES ORGANIZATION

It is the simplest sales organization structure. All managers, from top sales manager to middle level
managers, have line authority. Line authority means people in management positions have formal
authority to direct and control immediate subordinate. Line managers are responsible to achieve target.

Characteristics: All managers have line authority to direct and control subordinates.
Used in small firms / departments
Advantages: Simple organisation, clear authority, quick decisions, low cost
Disadvantages: No support to line managers from subordinates who have specialised knowledge / skills.
Less time for planning / analysis

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LINE AND STAFF ORGANIZATION

In this type of organization structure, a group of specialists are made available to the top sales or
marketing executive. These specialists, called staff are experts in certain support activities such as
marketing research, sales training, and advertising or integrated marketing research, sales training, and
advertising or integrated marketing communication and marketing logistics. Staff manager don’t have
any authority to issue directives to salespeople, who report to line sales managers.

Head Marketing

Marketing Service Sales Manager Marketing research Promotional manger

Manager manager
Mangerman
ger

Area sales Area sales Area sales Area sales

Manager1 Manager2 Manager3 Manager4

Sales people Sales people Sales people Sales People

Peppeople

Characteristics: Specialist staff managers are available for senior marketing / sales managers. Staff
managers’ role is to assist / advise line managers. Used in medium and large size organisations
Advantages: Better marketing decisions, superior sales performance
Disadvantages: High cost and coordination, slower decision making, conflict may arise if staff
managers’ role is not clear

FUNCTIONAL SALES ORGANIZATION

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In this sales organization, the principle of specialization is fully used. Each staff specialist manager,
such as marketing research manager and promotion manager, has line authority of his/her function over
salespeople. Example, marketing research manager can sales manager can directly issue instructions to
all salespeople through area sales managers to obtain certain market information.

Head Marketing

Marketing Service Sales Manager Marketing research Promotional manger

Manager manager
Mangerman
ger
Area sales Area sales Area sales Area sales
Manager Manager Manager Manager

Sales people Sales people Sales people Sales People

Peppeople

HORIZONTAL ORGANIZATION

This organization structure removes management levels (hierarchy) and also departmental boundaries.
The support functions like strategic planning, human resource, and finance are looked after b a small
team of senior executives. All other people in the organization are the members of cross functional
teams, which perform many core processes like product design, sales and production or operation.
These teams also work with customer teams to solve the customer’s problems.
Advantages are reduction in supervision, unnecessary tasks and costs and substantial improvement in
efficiency and customer responses with enthusiasm.

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Research design team operation team

Customer research production
Product /service design quality assurance Systems engineering
Planning team Strategic Planning Accounts, Finance Human Resource Chief operation officer
Customer support team customer satisfaction
Service sales and marketing Training pricing, promotion Information channels, logistic

QUALITIES AND RESPONSIBILITIES OF SALES MANAGER:

QUALITIES
 He should be a prognosticator, and skillful manipulator.
 He should be an amalgamator, a consolidator, and orchestrator directing efforts of many
towards the achievement of common goal.
 He should be a successful mentor who understands each individual’s needs, self fulfillment
and economic growth
 He should be an innovator and creator of new ideas and promotion.
 He should be an over achiever rising to the challenge of new forecast each year.
 He should be capable of handling unanticipated difficulties and events.
 He should be an opportunist and a worthy advisor.
 He should be a team-mate and referee.

RESPONSIBILITIES

 Sales planning and budgeting

 Estimating demand and forecasting of sales.
 Determination of size and structure of the sales organization.
 Recruiting, selecting, and training of sale’s people

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 Allocating of salesforce and setting sales quota

 Compensating, motivating and leading the salesforce.
 Analyzing sales volume cost and profit
 Measuring and evaluating salesforce performance.
 Monitoring marketing environment.

Personal Selling
What Is Personal Selling?
Personal selling is one of the most important marketing activities for a brand, product, or service. By
definition, personal selling is the process of selling products or services to customers through personal
interactions. These interactions can occur in person, over the phone, or online.

Personal Selling Definition: Commonly referred to as face-to-face selling, it is a sales technique where
a single salesperson tries to persuade a consumer to purchase a product. It is a type of advertising where
the salesperson employs their knowledge and talents to close a deal.

The business uses a person-to-person strategy to raise awareness of the product. This is because selling
requires a human touch, and salespeople pitch a product to a potential buyer better. Retail and direct-to-
consumer channels are the two ways personal selling is done.

Personal selling
Meaning
Personal selling occurs when a sales representative meets with a potential client for the purpose of
transacting a sale. Many sales representatives rely on a sequential sales process that typically includes
nine steps. Some sales representatives develop scripts for all or part of the sales process.
Definition
Personal selling is a sales method where the seller convinces the customer to purchase a particular
product/service face to face. The salesperson aims to emphasize various product features to prove their
value and encourage the customer to buy it.
In today’s market, personal selling tends to be more common in B2B sales, although it can still be used
in B2C sales.
While in the past personal selling always took place in person, now, with the rise of modern
communication channels, you can also sell via email, phone, or video call.

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SELLING SKILLS & SELLING STRATEGIES

SELLING SKILLS :

These are the sum total of aptitudes and skills such as communication skills, listening skills, conflict
resolution skills, problem solving skills and negotiation skills.

SELLING AND BUSINESS STYLE

The entire customer doesn’t buy the products in the same way. The buying styles vary depending upon
the buyer’s capability to pay, the quantity of purchase, the buyer’s ability to take risk, the bargaining
power of the buyer in the market, the competitive landscape in the industry and many other factors.
Research has shown that the way people respond to an innovation varies in the marketplace.
 Innovators and laggard
People who are adventurous and have high risk capital are the overnight buyers. These buyers are the
innovators in the marketplace, who mostly buy on impulse and consider non-functional reasons for
making a choice. This set of people is followed by another group who accept new products and
innovations after observing the innovators using it. Majority of such people take time to make a
buying decision. There is another set of people who but only after everybody has started using the
product. These laggards start buying a product when another new product is on the doorstep.
In many organizations buying is centralized, whereas in many others buying decisions are
undertaken by a committee or a similar form of set up. Market conditions in terms of the number of
competitors in the market, the prevailing level of competition, the quantity of purchase by the buyer
the switching cost involved in buying from a competitor’s firm, etc, will decide the nature of buying.

Theory of diffusion
There are also customers who are very conservative and buy only when they see everyone using the
product.
It is very easy to convince the innovators for buying the product, where as it are difficult to close a sale
in the case of laggards. This is called the theory of diffusion
In the theory of diffusion, the innovators do not give much importance to the salesperson and make new
purchases out of a habit of experimenting.

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 People oriented(1,9)
 Problem oriented(9,9)
 Sales technique oriented(5,5)
 Push the product oriented(9,1)
 Take it or leave it(1,1)

1. Take it or leave it(1,1):

 In figure, the sales people in position(1,1) believe in the physical display of the product and
assume that customers will buy by it themselves if the logistics are managed
 This is possible in the market where customers do not have many choices or in the product
categories in which customers do not place any importance to issue like product
demonstration and briefing by the sales people.

 Fast moving consumer goods are in this category where the advertising and other promotion
programmes bring the customer to the retail counter (by a pull method) and the store presence
and visibility make the brand sell itself.

 Here the sales force has the least role to play as they do the business of physical transfer of
goods to the customer contact point.
2. Push the product oriented(9,1):
 Salespeople in the (9,1) position are more product oriented and they always try to push the
product for sale.
 They try to sell the product without caring for the customer demand patterns. They feel that it
is possible to sell any product.
 They do not consider the customer’s buying intension and do the hard sell by putting all the
pressure to realize a sale.

3. People oriented(1,9):

 The salespeople in the (1, 9) position treats himself as a friend of the customer.
 This predominantly the relationship domain and the salespeople are involved in the relational
selling, where they try to understand the customer and respond to his feelings and interests so
that the salesperson is able to establish a personal rapport with the customer and realize a
sale.

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4. Problem oriented(9,9):

 Sales people in the (9, 9) are problem solvers. They consult with the customer so that they
understand his situation and all his needs, and then suggest a product that can solve and his
problem.

 They work with the customer towards a sound purchase decision on his part that will help
him get the desire results.

 This is basically consultative selling and is normally seen in the software and consultation
selling industry where the salespeople take note of the customer’s briefs and come with a
solution that best fits the customer’s problems.

5. Sales technique oriented(5,5):

 A salesperson in position (5,5) is a professional who keeps balance between concern for
customer and concern for sale. Such sales people use various sales techniques to do
prospecting and sales presentation.

 Their sales pitch is based on blend of personality and product orientation.

SELLING SITUATIONS
A typically selling situation explains what kind of customers a salesperson is going to face
and what kind of customers a salesperson is going to face and what kind of sales approach
will help him in closing a sale in that situation.
1. The sales Task and Function
 The salesperson has to undertake various tasks during the process of selling. We have
classified the different kinds of salespeople in the introductory on the basis of sales
responsibility and functions.
 When a salesperson gives a sales presentation or makes a sales call he communicates with
the customer and basically performs the communication function. But the customer may
have queries, doubts and he wishes the salesperson is involved in listening function.
 By providing information about other existing products of the company and new products
that are likely to come to the market, a salesperson also performs the information
dissemination function.
 In non standardized markets, where there is no list price involved in buying and selling,
the salesperson needs to negotiate with customers and bargain wherever possible for the
benefit of the organization and thus he is involved in the negotiations and bargaining
function.

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2. Maintenance Selling
 Typically, maintenance selling involves the art of servicing the existing accounts, securing
promotional cooperation, counting inventory and taking replenishment orders, and
delivering the products.
 In the advertising world, these kinds of salespeople are called client servicing executives
who provide service to clients and also take the orders as and when required. There is no
question of prospecting for this kind of salespeople as it is done with the exiting customers.
 In the IT sector, these sales people are posted at the client site and are responsible for
solving the client’s problems. In high tech product categories also we find service and
maintenance salespeople.

3. Developmental selling
 Salespeople engaged in developmental selling are called business developmental sales
executives as they try to contact the potential customers and build business for the firm.
 They are the real salespeople who try to do prospecting from the leads either available in the
organization or collected by them and then take the prospect through the whole process of
selling to realize a sale.

SELLING SKILLS
While it is very difficult to find out a set of characteristics for guaranteed success in selling,
hard work, working smartly in business, ability to set goals, level of maturity, communicative
ability, honesty, integrity, can make a successful salesperson. Selling skills are a set of
characteristics that are necessary for a salesperson to posses, failing which he may not be
successful in selling.
The essential skills for successful selling are
1. Communication Skills
2. Listening Skills
3. Conflict Management
4. Problem solving skills
5. Negotiation Skills

1. COMMUNICATION SKILLS
The ability and expertise to communicate is necessary in selling function. The salespeople
should posses a good vocabulary and express themselves intelligently to the customer. The
later element is necessary mostly in intelligent buying and selling situations, such as
business to business selling.
Research has found out that trust between a buyer and a seller largely depends on five

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elements in the salesperson’s behavior.

1. Truth of words communicated by the salesperson
2. Predictability of action
3. Competency ( ability/knowledge/resource)
4. Intent or empathy (placing the customer’s interest on par with the seller’s interest, a
commitment to solving the customer’s problem and responsive to the customer’s cause)
5. Likeability (It is an emotional issue and difficult to clearly define, but can be understood as
a perception of commonality by both the parties.

Communication Process

 Communication is the exchange of idea and information between two parties. The
communication process is defined as a set of activities and systems integrated for an
exchange of ideas, concepts, information and knowledge between a sender and a
receiver.
 Sales communication can be both personal and non-personal. Non-personal
communication means the use of mass media for providing product information to the
consumers. Non-personal communication involves newspaper, TV, and other mass
media through which sponsor sends messages about the products and services without a
scope of knowing the recipients.
 A typical communication process begins with a source, which in this case is the
salesperson himself, who provides the relevant product and service information. The
source has thoughts and ideas to communicate to the audience, which have to be
encoded in a presentable form by the sender. Sales presentation, sales literature sent
through direct mail, telephone calls and selling information over the internet are
example of communication and information dissemination in the selling process. For
this purpose, the message has to be encoded into a presentable format that can be
transmitted to the customers.
 This involves translating ideas and thoughts into symbols, words and pictures to
meaningful communication patterns. The words and symbols used by the source should

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communicate the same meaning to the receiver.

 Managing body language
Salespeople can take care of their verbal and non-verbal communication while making sales
presentations. The following will explain the strategy and tactics they should follow to
manage body language to show that they are confident enough to handle a sales situation.
 Personal appearance
 Posture
 Gestures
 Facial expression
 Eye contact
 Space distancing

2. LISTENING SKILLS
The sales manager has to be a very good listener and use his listening skills to lead
towards sales realization. Poor listening skills may make a sales manager miss subtle
issues in customer interaction and- this may lead to non-resolution of customers
problems and thus a poor level of sales realization.Research suggest that people are only
25% efficient in their ability to listen. An average person remembers only about half of
what is being told to him after 10 min and forgets half of that within 48hrs.
Types of Listening

 Attentive Listening: It involves paying attendtion to the words that are being spoken
 Pretence Listening: It involves more hearing than listening. It means pretending
through facial expressions that one is litening when actually one is not.
 Selective Listening: It involves selecting the desired part of tge message and ignoring
the undesired part of the message.
 Intuitive Listening: It means listening through the intuitive mind by silencing the other
forms of internal dialogues going on simultaneously.

Levels of Listening
Ignoring Making no effort to listen
Pretend listening Making believe or giving the appearance
you are listening
Selective Listening Hearing only the parts of the conversation
that interest you
Attentive Listening Paying attention and focusing on what the
speaker says , and comparing that to your
own experiences

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Empathic Listening Listening and responding with both the

heart and mind to understand the
speaker’s words, intent and feelings.

Process of Listening:

Understandi
ng Learning

Reveiving Remebering
Recalling
Hearing

Responding Evaluating
Answering Judging

3. CONFLICT MANAGEMENT SKILLS

Conflict exists in every organization. Conflict in sales organization is more evident than
in any other organization.
This is due to the fact that there is always conflict of interest among people at different
levels as the goals are different at each level of the organization.

Models of conflict
 Approach –approach
 Approach-Avoidance
 Avoidance-Avoidance
 Multiple approach-avoidance conflicts
1. Approach-approach conflict: occurs when you must choose between two desirable
outcomes.
In this type of conflict individual will have two desires with positive valence which are
equally powerful. For example, a person has two attractive job offers and he has to
choose any one of them- tension arises. Such conflicts are not so harmful, because after
selecting one, the other one automatically subsides or loses its importance to him. But in
some situation choice will be very difficult. For example, a girl has to choose either
loving parents or a boy friend for inter-caste marriage. Such cases are like ‘you cannot
have the cake and eat it too’. The individual will be psychologically torn and may lose

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equilibrium.
2. Avoidance-avoidance conflict: occurs when you must choose between two unattractive
outcomes.
This conflict involves two goals with negative valence. At times the individual is forced
to choose one among two negative goals. In such conflicts, both are unwanted goals, but
he cannot keep quiet without opting also. For example, a woman must work at a job
which she dislikes very much or else she has to remain unemployed. Here the individual
is caught between two repelling threats, fears or situations. When she cannot choose
either of them she may try to escape from the field itself. But the consequences of the
escape may also be harmful. For example, a person who cannot convince the mother or
the wife may resort to Alcohol consumption which is otherwise dangerous or some
people may even commit suicide. In the event of such conflicts when there is no way to
escapesome people may find a way to reduce their tension by developing ‘amnesia’ or
defence mechanisms like regression or fantasy.
3. Approach-avoidance: exists when ONE event or goal has both attractive and
unattractive features.
This is also a most complex conflict and very difficult to resolve. Because in this type of
conflict a person is both attracted and repelled by the same goal object. Here the goal
object will have both positive and negative valences. The positive valence attracts the
person, but as he approaches, the negative valence repels him back. Attraction of the
goal and inability to approach it leads to frustration and tension. For example, a person
is approaching to accept a job offer, because the salary is attractive- but at the same time
he is repelled back as the job is very risky. A man wants to marry to lead a family life,
but does not want the responsibilities of family life.
4. Multiple approach-avoidance conflicts: here you must choose between two or more
things, each of which has both desirable and undesirable features. Some of the situations
in life we come across will involve both positive and negative valences of multiple
nature. Suppose a woman is engaged to be married. The marriage to her has positive
valences like-providing security to life and marrying a person whom she loves very
much. Suppose, on the other hand, if the marriage is repellent to her because she has to
quit her attractive job and salary, recognition which makes her dependent, the situation
builds up tension in her. The resolution of this conflict depends upon the sum total of
both valences. If the sum total of attractive valence takes upper hand, she will quit the
job and go for marriage; otherwise she may reject marriage and continue the job if the
sum total of negative valence is powerful.
Components of conflict
 Interest: Conflicts often arise when we fail to carefully think through our own interests.
 Emotional: Emotional conflict is the presence of different and
opposing emotions relating to a situation that has recently taken place or is in the

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process of being unfolded.

 Value: Value conflicts are caused by perceived or actual incompatible belief
systems. Values are beliefs that people use to give meaning to their
lives. Values explain what is "good" or "bad," "right" or "wrong," "just" or "unjust."
Differing values need not cause conflict.
Methods of conflict resolution
 Lumping: to deal with, handle, consider, etc., in a group
 Avoidance: is a method of reacting to conflict, which attempts to avoid directly
confronting the issue at hand. Methods of doing this can include changing the subject,
putting off a discussion until later, or simply not bringing up the subject of contention.
 Coercion: the use of force to persuade someone to do something that they are unwilling to
do, which attempts to avoid directly confronting the issue at hand.
 Conciliation : the action or process of ending a disagreement, often by discussion
between the groups or people involved ,which attempts to avoid directly confronting the
issue at hand.
 Arbitration: a process in which an independent person makes an official decision that
ends a legal disagreement.
 Mediation: procedure in which the parties discuss their disputes with the assistance of a
trained impartial third person(s) who assists them in reaching a settlement
 Adjudication: the act of judging a case, competition, or argument, or of making
a formal decision
 Negotiation: It is used when two people have a similar objective in mind but both
people conflict on how the objective is reached. Conflict resolution is a way to quell
these conflicts and ensure the objective is met.
4. NEGOTIATION SKILLS
Negotiation occurs when someone else has what you want and you are prepared to
bargain for it and the vise versa. Wall-mart globally follows the strategy to negotiated
exchange with its suppliers and these are set for a long-term period. Indian automobile
majors like TATA and Maruthi Udyog also follow the same strategy in dealing with the
auto ancillary and equipment manufacturer.
Bargaining is a defined as a process where at least two parties are involved, the parties
have some or one conflict of interest between them, they are at least temporarily joined
together in a special kind of voluntary relationship and the activity in the relationship
concerns the division or exchange of one or more specific resources or resolution of one
or more intangible issues among the parties.

Negotiation Tactics

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 Acting crazy: Put on good show, Visibly demonstrating your emotional commitment to
your position, Increase credibility ,Give opponent a justification to settle on your terms.
 Auctioning: Several competitors know you are negotiating in the same time – Schedule
competitors with you for the same time and keep them all waiting to see you
 The good guy-bad guy routine: The Good Guy/Bad Guy technique is very similar to
the tactic of the Higher Authority but is much more specific. With Good Guy/Bad Guy,
one person pretends to be on your side and appears to help you make the deal
 Big pot: Asking for more than expecting to receive. Leave yourself a lot of room to
negotiate Make high demand at the beginning and after making concessions, you’ll still
end up with a larger payoff
 Budget bogey: The bogey is a negotiation tactic where you make a topic more
important than it is in reality
 Get a prestigious ally: This ally can be a person or a project that is prestigious. With
this tactic you try to get top to accept less because the person/project they will be
involved with is prestigious
 Escalation : Escalation can be a highly effective negotiation strategy. Having unlimited
authority in a negotiation can seem, and is, powerful, but it can be equally dangerous.
 The well is dry: Dry Well: Show you've nothing left to exchange. Empty Pockets: Say
you can't afford it, don't have it, etc. Empty Promises: Make promises that you know
you will not keep. Take a stand and tell the opponent you have no more concessions to
make
 Limited authority: Negotiate in good faith, if you ready to sign the deal, say I have to
check with my boss.
 Divide and Conquer: Negotiation with opponent team – Sell one member to help you
sell the other members of the team
 Get Lost / Stall for Time: Leave the negotiation completely for a while – Come back
when things are getting better and try to renegotiate – Time period can be long or short
Problem solving skills

5. PROBLEM SOLVING SKILLS

The sales person needs problem solving skills for effective selling. The rational and
consultative selling approach suggests that a salesperson should not be a mere order
taker; he should rather act as a problem solver and a consultant to the customer. These
roles are more significant for high-tech selling and business-to-business selling. A true
solver will analyze the situation and extract the real problem from an ocean of

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information and facts.

Some key problem-solving skills include:
 Active listening
 Analysis
 Research
 Creativity
 Communication
 Dependability
 Decision making
 Team-building

ALL PROBLEMS HAVE TWO FEATURES IN COMMON:

 GOALS : Problems involve setting out to achieve some objective or desired state of
affairs and can include avoiding a situation or event .
 BARRIERS: If there were no barriers in the way of achieving a goal, then there would
be no problem. Problem solving involves overcoming the barriers or obstacles that
prevent the immediate achievement of goals.

PROBLEM SOLVING TOOLS:

A. BRAIN STORMING:
Brainstorming is used to generate a large number of creative ideas when problem
solving and achieving objectives. It can even be used for decision making.
Brainstorming Techniques Guidelines:
1. Brainstorming take from a few minutes to a few hours. For big problems or projects it
may be done several times and over days, weeks or months.
2. Come up with as many ideas as possible. The more the better.
3. Don’t judge any of your ideas at this time. Later you can use the affinity diagram to sort
out your ideas. It is important to note that one of the fastest ways to “kill” brainstorming
is to judge ideas too quickly. Criticism puts a choke hold on allowing the Right Brain
Left Brain Crossover to flourish

B. 5 WHYS:
The 5 Why’s is a simple problem-solving technique that helps you to get to the root of a
problem quickly.
Five whys (or 5 whys) is an iterative interrogative technique used to explore thecause-
and-effect relationships underlying a particular problem. The primary goal of the
technique is to determine the root cause of a defect or problem by repeating the
question "Why?". Each answer forms the basis of the next question
The technique was originally developed by Sakichi Toyoda. The 5 Why’s was used
within the Toyota Motor Corporation during the evolution of its manufacturing

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methodologies and became very popular in the 1970s by the Toyota Production System.
Advantages :
 It quickly identify the root cause of the problem.
 It is simple and easy to learn and apply.

C. IS – IS NOT
“IS – IS NOT” is a problem solving tool that explains the rational process for
finding the possible root cause of the problem. IS - IS NOT analysis works by making
you deliberately think about the problem and in particular the boundaries of what it is or
is not. It thus helps to create focus in attention and consequently is more likely to lead to
the right problem being solved an unclear boundary can lead to wandering off the path
and solving unimportant problems.
The problem’s root cause is often too easy to be detected. It means that the basic
product’s or system’s requirements are not followed. The problem solving teams is
looking for the complicated reasons of the problem’s appearance. Practical experience
though often shows that the problem’s root cause is often very easy. That is the main
reason to use the IS – IS NOT analysis. This analysis should be carried out before
starting with the more complicated root cause analysis, such as 5Why, Ishikawa
diagram and so on.
 Helps user to avoid jumping to a false cause.
 At the end of the IS – IS NOT exercise user gets a confirmed true cause .

PROBLEM SOLVING PROCESS:

The process of identifying the problem, prioritizing, selecting alternatives for a solution
and evaluating the outcomes.

 Define the problem

 Determine the root cause(s) of the problem
 Develop alternative solutions
 Decide/select the solution
 Implement the solution

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 Evaluate the solution

Step 1: Define/Identify The Problem

 Select the problem to be analyzed
 Clearly define the problem and establish a precise problem statement
 Set a measurable goal for the problem solving effort
 Establish a process for coordinating with and gaining approval of leadership

Step 2: Determine the root cause(s) of the problem, Analyze The Problem
 Identify the processes that impact the problem and select one
 List the steps in the process as it currently exists
 Map the Process
 Validate the map of the process
 Identify potential cause of the problem
 Collect and analyze data related to the problem
 Verify or revise the original problem statement
 Identify root causes of the problem
 Collect additional data if needed to verify root causes

Step 3: Develop The Solutions

 Establish criteria for selecting a solution
 Generate potential solutions that will address the root causes of the problem
 Select a solution
 Gain approval and supporter the chosen solution
 Plan the solution

Step 4: Decide/select the solution

• Identifying all parts of the solution
• Eliminating solutions that do not meet certain criteria
• Evaluating the solutions against the desired outcomes
• Assessing the risks associated with the “best” solution

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• Making a decision to implement the solution

Step 5: Implement A Solution

 Implement the chosen solution on a trial or pilot basis
 This stage involves accepting and carrying out the chosen course of action.
 If the Problem Solving Process is being used in conjunction with the Continuous
Improvement Process and return the process.

Step 6: Evaluate The Results

 Gather data on the solution
 Analyze the data on the solution
 Achieve the desired results

Step 7: Standardize The Solution (and Capitalize on New Opportunities)

 Identify systemic changes and training needs for full implementation
 Adopt the solution
 Plan ongoing monitoring of the solution
 Continue to look for incremental improvements to refine the solution
 Look for another improvement opportunity
SELLING PROCESS

The steps taken by the salesman to perform his function of selling successfully are
included in selling process.

1. PROSPECTING:
Prospecting is as wide as a desert; but it does not mean that because it is desert, oil can be
found everywhere. Prospects are too many, for that reason every human being may be

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considered as a prospect. But this concept is wrong. It is not correct to consider everyone
to be a prospect without first determining whether these individuals possess the necessary
characteristics of a good prospect. thus it is most essential for an efficient salesman to
know the characteristics of a good prospect. In this connection the main characteristics
of a good prospect are as follows:

 Does the Prospect Have a Need?

 Does the Prospect have Ability to Pay?

 Does the Prospect have Ability to Sacrifice?

 Does the Prospect have the Authority to Buy?

 Is the Prospect Approachable?

 Is the Prospect Eligible to Buy?
It is evident that a good prospect is one who has the need to buy, has ability to pay, is
prepared to sacrifice, has authority to buy, and is approachable and also eligible to buy.
Some of methodology to find prospect are:
i. Cold-canvass method: In this method a salesman prepares a list of individuals or firms
who are most likely to purchase his product on certain presumptions.
ii. Family tree method: Under this method, when a salesman interviews any customer, he
secures the names of some prospects for future interviews. For instance, he may ask the
customer to give names of two or three acquaintances, relatives or friends who may be
interested in what he is selling.
iii. Centre-of-influence method: In this method, the salesman consults influential persons in
his locality or territory such as bankers, teachers, doctors, leading politicians, business
executives, club official etc. about their acquaintances, relatives, friends etc. who may
turn out to be potential customers. This method is a modification of the endless chain
method.
iv. Personal observation method: The personal observation of the salesman for a prospect is
not merely confined when he is on duty. He will remain constantly on lookout for bits of
information of value to him, whether on way to the work, in the office at a dinner party or
any social function.
v. Junior salesmen and bird dog method: It is also an important and popular method used by
the salesman for identifying the prospects. In this method, junior salesmen are employed
to call at the door of every house in a particular locality of community, inquire about the
type of product which is being used, and from the reactions obtained, an attempt is made
to get an appointment at a later time for the experienced salesman to explain the features
of their latest product. This method is usually applied for selling costly domestic products,
such as washing machines, grinding machines, refrigerator or even automobiles etc. Bird

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dog' is a name given to water and electric meter readers.

vi. Miscellaneous method: There are other miscellaneous methods of prospecting. They
include inquiring on the telephone, use of direct mail (sending of a circular letter
enclosing a return card), launching advertising campaign, using trade directories etc

2. PRE-APPROACH
Pre-approach commences as soon as the salesman obtains the name and address of
prospect. Prospecting is generally completed when the salesman feels that he knows
enough about the prospect and there is a chance of selling to him. Pre-approach is a fact-
finding stage of selling process in which additional information, other than that about the
prospect, such as his likes and dislikes, habits, type of buying motive, economic status etc.
which will enable him to plan his selling campaign intelligently.

The salesman by means of pre-approach ascertains the best and the most effective
method of approaching the prospect.

For instance, a doctor before prescribing any medicine diagnoses the disease of the client.

Similar is the case with the salesman, who before starting his approach, plans the
approach and, therefore, this process is known as pre-approach.
The main objective of pre-approach is to help the salesman get further insight into the
customer's needs and attitude so that he can select the best approach for the individual
prospect. Through the pre-approach the salesman would know the prospect's likes and
dislikes as well as his preferences. The pre-approach would provide to the salesman the
complete picture of the prospect well in advance.

3. APPROACH:
Approach means meeting the prospect face to face. It is the first appearance of the
salesman with the prospect. Merely pre-approach is not enough to convert a prospect into
a buyer; he must see him face to face. The sales strategy is complete only when a
salesman comes face to face with the prospect. The pre-approach knows things only in
part and to know him fully an approach is necessary. Approach is the most critical part of
the selling process. At this time the salesman should create a favourable sales impressing
on the prospect. To make a favourable sales impression the salesman must look as active
sales professional.
Important methods are as follows:-
a. The Personal Call without Introduction: In this method, a request is made by the
salesman to the prospect to give him an interview at once or at a future time as may be
suitable to him. He may also attempt to utilize a little psychology with some powerful

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motive to overcome the prospect's instinctive opposing to a stranger. Therefore, the

appeal to profit or self-interest or appeal to curiosity is commonly employed to gain the
interview with the prospect.
b. Sending to the Business Card: In this method, the salesman to obtain an interview with
the prospect uses the business card. Business cards, which have now become more or less
a necessity, should have a distinctive appearance. The business card bears the name of the
salesman along with the name and address of his company. In this connection one must
remember that business card is not a passport to admission as it may be sent out as easily
as it is sent in.
c. Using the Telephone: This method is most suitable when there are a large number of
prospects. The telephone approach must be aggressive and the conversation should be
speeded up after the prospect has announced his name. Opening should be made with
short sentences and the sales talk on the telephone should consist of only leading
questions inviting the reply 'yes'. Arguments should be totally avoided.
d. Writing for an Appointment: In this method, the salesman prefers to write letters to the
prospects requesting appointment when he can approach them and put forward their
proposition. A simple request for an appointment is likely to produce the desired result.
However, the proposition must be presented in an attractive manner so that it may arouse
the curiosity of the prospect.
e. Premiums or Door-Openers: In this method, the salesman uses premiums or door openers
to obtain the interview with the prospect. Small gifts are sent to the prospect to arouse his
curiosity, and make him feel under an obligation to open the door for the salesman. Such
gifts usually consist of paperweights, automatic pencils, ashtrays, toothbrush, diary,
calendar and similar novelties.
f. Introduction: In this method, the salesman approaches the prospect as an acquaintance
or friend and not as a stranger. Instead of introducing himself, the salesman is required to
deliver the letter or note of introduction to the prospect. Such an introduction may be
obtained from a common friend, relative an acquaintance.
g. Sending Advance Sales Letters In this method, sales letters are mailed in advance by the
salesman's company to the prospects intimating the date and the time of arrival of their
salesman to the prospect's residence or office. These letters are carefully drafted, typed
and signed by the important officials of the company
h. The Use of 'Trickery' for Securing Appointments: This method of approach to the
prospect is generally used only when the salesman, after encountering several refusals for
an interview, feels certain in the mind about his ability to convert the prospect into a
buyer. He may use recourse to trickery as a means of gaining the interview. The use of
trickery is condemned and hence it should be used as a last resort only.
4. SALES PRESENTATION& DEMONSTRATION:
Presentation or sales presentation is a process during which the salesman tries to attract

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the attention and the interest of the customer towards the product. Presentation helps in
convincing the customer that the salesman's product is the best one for satisfying his
need. A planned presentation saves the time of the customer and the salesman. It relieves
the salesman of the nervous strain and gives him the much-needed confidence.
PRESENTATION Effective sales presentation is a vital force in selling. The customer
normally r preaches the shop of the salesman with a vague idea of what he actually needs
or wants. It is the sales presentation, which helps the customer in taking final decision for
purchasing the product.
The following are the essentials of effective sales presentation:-
Promptness, Clarity, Showing the Proper Quality and Quantity, Dramatization, Appealing
to the Senses, Suggesting Tests, Handling the Product, Guarantee..
DEMONSTRATION:
According to B.R. Canfield, "Demonstration is showing with proof and example how a
product or service benefits the buyer. "The objective of demonstration is to provide the
customer with definite proof of the benefits as claimed by the salesman in his product. It
gives the customer an opportunity to experience for himself the benefits or profits to be
derived from the ownership of a product. The customer should be allowed to see, touch,
feel and even operate the product for his satisfaction.
FORMS OF DEMONSTRATION
The following are the two main forms of demonstration:- Demonstration in Use,
Demonstration of a Specific Feature.
DEMONSTRATION IN USE The most popular and effective form of demonstration is
to show the customer as to how the product will appear when he actually uses it. For
instance, while selling a readymade suit, the salesman should ask the customer to wear it
on and look in a full-size mirror. Thus the salesman makes the customer actually see how
the suit will appear on him. If the customer is pleased with the appearance, he is likely to
purchase the same.
DEMONSTRATION OF A SPECIFIC FEATURE In case of a product, which does not
lend itself to former type of demonstration, the salesman may emphasize a particular
feature of that product. For instance, if a salesman is demonstrating a blotting paper, a
drop of ink may be required on it from a pen to demonstrate its absorbing quality.
TECHNIQUES OF GOOD DEMONSTRATION
The customer will be convinced only if he is sure that he will be benefited by the
purchase of the product. Hence the salesman must demonstrate the product in such a way
that the customer is fully convinced that the product will satisfy his need. Hence different
salesmen use different techniques of sales demonstration.
The main techniques sales demonstration are as follows:-

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a. Exhibits: Exhibit is the most popular technique of good demonstration. With the help of
various visual aids like charts, diagrams, pictures etc, the salesman may convince the
customer of what he has said to him about the product. Many salesmen now use audio-
visual aids.
b. Methods and Samples: It is also an important and popular technique of good sales
demonstration. In this case, the salesman shows the actual sample of the product in
question to the customer. Models are used when the product to be sold is huge and large
and thus cannot be presented or shown on the spot.
c. Films and Slides: This technique is used when the product is to be sold to a group or is
costly in case of an individual. If a tourist agency desires to evoke the interest of the
customers in the place or places to which the tour is to be conducted, a film show is right
answer. It must be remembered that the film should be factual and also interesting
d. Testimonials: Testimonials are usually in the form of letters written by satisfied
customers. These letters testify that they are fully satisfied with the product.
Examples: Citing examples of persons who are getting benefits of the products may be
helpful in creating a good impression on the customer. Examples provide additional
evidence of benefits and add to the reputation of the product.
e. Miscellaneous: Demonstration should be done according to the needs of the customer. If
the customer is doubtful about the benefits of a product, the salesman may offer a
specific guarantee to relieve him. Product demonstration, Ability to express and to
expound etc.

5. VARIOUS METHODS OF HANDLING OBJECTIONS

A Salesman's job is not the bed of roses. To make people buy is a difficult task even when
a need is established and there are adequate means to satisfy it. Most of the customers are
indifferent to buying and they raise several kinds of objections when approached by the
salesman. Sales resistance or objection expresses disapproval of an action.
 Sales resistance or objection is an outward expression, usually verbal, intended either to
put off the idea of making purchases or postpone the decision to purchase of some item.
 It is the obstacle which prevents the customer from making a commitment. It postpones,
hinders or prevents the completion of sales.
 An obstacle may be real or unreal or sincere or insincere.
 The sales resistance or rising of objections is a natural feature and normal way, which is
expected, in almost all sales deals.
METHODS OF MEETING OR HANDLING OBJECTIONS:
Whatever the customer's objection may be, at least one thing is certain that the customer

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is taking interest in the product. Hence the first thing to do is that the salesman should
listen to the customer's objections attentively and without any interruption. After he has
understood them, he should think as to which method should be applied in meeting or
handling the objections. In this connection there are a number of methods used by the
salesman to meet and handle the objections.
METHODS OF MEETING OR HANDLING OBJECTIONS
The most important methods are as follows.

 The Direct Denial Method.: Under this method, the salesman says directly on the very
face of the customer that his objection is totally false or wrong. For instance, the customer
makes a false-statement.

 Indirect Denial Method.: This is most popular and widely used method of meeting
objections of the customers. Under this method, the salesman agrees with the objection or
objections of the customer, but then makes a statement which offsets the objection. That
is why this method is also called yes, but method. For instance, our product is of much
superior quality and,, therefore, it will last long and thus you will save considerable
money in the long run. This method, therefore, really amounts to denying the objection
tactfully without offending the customer
 Boomerang Method.: The boomerang method is one where the objection raised by the
customer is thrown back (returned) by the salesman in the form of a reason, why he
should purchase the product. Thus the objection is converted into a reason in favour of
the purchase. This method is also called as the "Translation Method because it translates
the objection into a reason infavour of the purchase. The boomerang method is effective
only in the hands of the experienced and skilled salesman.
 Compensation Method.: This method is similar to that of indirect method as discussed
earlier except that here the salesman admits the validity of the objection but offsets the
objection by a superior point of greater advantage to the customer. For instance, a
customer for a shirt-piece might object that the cloth of the shirt does not seem to be of
the best quality. Ex: The lower price compensates the lower quality.

 Question Method.: In case any customer has raised any question then it becomes natural
on the part of the salesman to answer that question. In this case the objection is raised by
the customer. Instead of replying to that objection, the salesman asks certain questions
from the customer which makes the customer to answer his own objection. For instance,
the customer says, "I like this pair of shoes but 1 cannot purchase the same as it is
costly".

6. CLOSING OF SALES:
Closing a sale is a very important and final part of the selling process.

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Closing the sale is making the customer say 'yes' to your preparation.
The whole object of the entire selling process is to induce the buying decision of the
prospect and thereby close the sale.
Unless the salesman gets the prospect to agree to buy the product, the entire efforts are
wasted. In this way, the objective of closing a sale is to get the customer in a mood of
saying 'yes' so that the salesman can ask for the order.
The experienced and skilled salesmen know the time when to close a sale and the way to
close a sale.
METHOD OF CLOSING A SALE
There may be several methods, which may be used for closing a sale by the salesman. The
popular methods, as usually used in practice are as follows:
 Affirmative Close.: Under this method, the salesman gets the customer to agree to a
number of questions. Answers in the affirmative to a few initial questions leave the
customer with no other alternative except giving answers in 'yes' to the subsequent
questions and thereby leading to a successful close of sale. It should, however, be kept in
mind that this method has equal chances of both success and failure and the salesman
should be prepared for it. This method although used on many customers seerns to be
best suited to the talkative and responsive customers.
 Erecting Barriers.: Under the method, barriers are erected before the customer closes the
sale. Erecting barriers in a sale's close makes it extremely difficult for the customer to
escape from buying. For instance, the salesman feels that the customer has almost
approved the product but is hesitant in placing the order immediately. The salesman says,
"Sir, the offer at the old price of Rs.150 is open for today only.Next day you will have to
pay Rs.175 as per the revised price list“.
 Narrowing the Choice: Under this method, the salesman closes the sale by narrowing
down the choice of the customer. When a customer is offered wide range of product, it
becomes difficult for him to reach a decision. Hence the salesman removes all those
varieties one by one, in which the customer has shown the least interest. In this way only
two or three varieties of a product are left with the customer, which seem to be most
suitable and favoured.In this way the sales comes to a close soon.
 Offering Inducements.: Under this method, the salesman offers some extra inducements to
the customer. Thus a salesman might offer certain concession or special consideration to
the customer who may purchase the same in the expectation of extra gains. For instance,
the salesman says to the customer, "If you will take the delivery of this case within a
fortnight, I shall allow you 5% extra discount".
 The Assumption close.: This method is based on the assumption that the customer has
already decided and is going to purchase soon. Under this method, after receiving a

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positive signal from the customer, the salesman asks the customer to fill in his name
overshoot or there may be a shortfall, both of which are detrimental to a sales talk close.
 Use Appropriate Timing.: Although the opportunity for closing the sales talk will arise
more than once during the interview with the prospect, the salesman must use appropriate
timing. As the interview proceeds, the prospect's interest keeps increasing until it reaches
a peak. This would be the best time for moving towards the close of the sales talk. For
example, when the prospect enquires about the time required for delivery of goods, it is
an indication that the prospect has almost decided to purchase the product.
 The test of a good sales talk lies in its Deliver: All the good points of the product need not
be presented simultaneously. They should be presented one by one. After delivering
each point the salesman should wait for the reactions of the prospect, reserving always
his best point to the last, which must be made use of at the optimum point of the rise in
the prospect's interest.
 Maintain a positive Attitude: The salesman should maintain a positive attitude throughout
the sales talk. Hesitancy is the greatest enemy of the salesman. The salesman should
always show a calm attitude and hide his tension. He must remain hopeful and should not
show his worry about closing the sales talk. The sales talk will materialize with a
successful close.
7. FOLLOW UP
 It is the last stage of selling process. After closing, it is important for the salesman to
follow up the order booked so as to ensure that the order is properly executed.
 Follow up is alos necessary to gather information from the customers regarding product
use, problems , if any and the level of customer satisfaction
 It builds up goodwill, ensures feedback and encourages repeated purchases.

SALES PRESENTATION
There is need for two way between the salesperson and the prospect during a sales
presentation. Here, the salesperson communication presents his products and services
before the prospect and makes effort to create and modify their interest into sales
realization for the company. While giving sales presentations, the salesperson should
always try to link the features and attributes of the product with the customer needs so
that the gap or conflict and level of customer objection can be reduced in the subsequent
stages.

The following are the essentials of effective sales presentation:-

1) Promptness : The salesman should be quite prompt in presenting the product before

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the customer. In order to be prompt in presentation, the salesman must have the accurate
knowledge of the location of the product as desired by the customer. In case of any delay
on the part of the salesman, it is likely that the customer's interest may be lost or reduced.
2) Clarity :The second major characteristic of effective presentation is that the sales
presentation must be absolutely clear and complete. It should be so clear that no doubt is
left in the customer's mind.
3) Showing the Proper Quality and Quantity :The third major characteristic of
effective sales presentation is that the salesman should show the proper quality and
quantity of the product as demanded by customer. If the customer asks for a particular
product, the salesman must immediately show the one he wants, even though another
article would be more suitable for the customer.
4) Dramatization : The fourth major characteristic of sales presentation is dramatization.
It is the art of presenting the product before the customer. The salesman must select the
most effective method of dramatizing his particular product. The dramatizing is secured
through visualization.
5) Appealing to the Senses : There are in all five senses. They are the- sense of sight
sense of touch sense of hearing sense of smell sense of taste. The salesman should try
to appeal to all the senses of the customer.
6) Suggesting Tests In order to convince the customer as to quality, the salesman should
suggest the tests to the customer. For instance, wool burns with a slow flickering flame
which makes it sizzle and Carl. The flame ceases as soon as it is withdrawn from the
flame.
7) Handling the Product Action speaks louder than words. Therefore, the salesman
should demonstrate the product as much as possible. He should handle the product
himself and then if possible then also permit the customer to handle the product. It is
generally the habit of the customers to feel and handle the product they purchase. The
customer, may therefore, be encouraged to do so.
8) Guarantee The last but not the least important characteristic of effective sales
presentation is to give guarantee to the customer for a certain period. For instance,
salesman says to the customer, "this washing machine will give you trouble-free service
for a period of two years.! During that period if the washing machine stops working he
will give free service or replace it with a new washing machine. The guarantee given by
the salesman relieves the customer of any doubt about the working or benefits of the
product. It is essential particularly in the sale of domestic and other machinery item

APPROACHES TO SALES PRESENTATION

 Attracting customer objection: The key to perfect objection handling is and has always

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been empathy. Listen closely to the objections, and assure your prospects that you
understand. As you listen, look for key indicators if the prospect is going to be receptive
or not, try to get into the buyer's mind to build trust.
 Creating interest: Create a connection between your product/service and the prospect.
Also, remember to discuss the benefits of your products, not the features. Tell your
customer what they will get by using your product versus your competitors'.
 Arousing desire and building conviction: Tricks of the sales, and knows well how to catch
the eye and the product arouse (a feeling, emotion, or response) the interest of
his customers.

METHODS OF SALES PRESENTATION

 Canned presentation: It is a type of a detailed and structured presentation where the

contents are presented in a systematic and well planned manner. As compared to
personalized presentation where there is a room for improvisation and spontaneity there is
less scope of changes as all necessary information regarding the product are already
included. This type of presentation becomes useful when the same presentation has to be
repeated multiple number of times. Minor changes can be made depending on t audience
whenever possible in future. This rigidity also proves to be useful to presenters who feel
nervous and might forget key points that need to be presented to prospective clients.
Examples: Generally Sales presentation to retailers who may not be always educated to
catch up with the little content, so presentation should be self explanatory. Classroom
presentations prepared by faculty members, since the lecture materials will relate into
some assignments or class exercises. New employee orientation presentation gives them a
detailed and structured method to understand the company’s policies and procedures.
 Organized presentation: Organize the content of your presentation in a logical sequence
based on the outline you prepared. No matter how you decide to organize your
presentation, keep the audience engaged to better help them remember the content. You
can do this by asking them questions or having them share experiences related to the
topic.

 Tailored presentation: It's to reflect on the human context in which you will deliver your
message so you can tailor it to suit your audience's challenges and goals. Anticipating the
needs and concerns of your audience helps you calibrate your mind-set as you prepare and
execute your presentation.

 Planned presentations: A planned presentation is also carefully prepared, but it has more
scope for interaction between the salesperson and the audience. The salesperson
introduces the business and its offering before running through a set of key points. It is a
more conversational approach and audience has the opportunity to ask questions during or
after the presentation. A planned presentation is often tweaked to suit the audience
receiving the sales pitch. This format is often used for business meetings, seminars, and

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webinars. A planned presentation is also carefully prepared, but it has more scope for
interaction between the salesperson and the audience.

 Audio-Visual Presentation: For such presentation the sales persons heavily depend on the
A V aids. These aids range from charts, slides, video films, prototypes, computer based
presentations to the use of actual product. In advertising industry, computer software
industry, such presentation methods are used. In these presentations the speaker of the
salesperson takes the back seat and the prospects attention remains centered around the A
V aids. Such aids are typically used, not only to gain the attention but in the absence of
these it might be difficult to explain or demonstrate.

 Problem Solving Presentation: This is a two step presentation method. The first stage is to
study the individual prospect’s needs and the second is suggesting a proposition. Thus
helping the prospect to solve the problem. Such method is commonly used in insurance
sector where the insurance agent ask the prospect about the requirements and accordingly,
he proposes a specific policy.

Prof. Manjunatha S Department of MBA, SVIT