Mastering Salesmanship: Functions, Duties, and Personal Selling Strategies
1. Understanding Creative Salesmanship: Functions and Duties of a Salesman
Creative Salesmanship
Creative salesmanship is the art of selling in a persuasive, innovative, and customer-centric manner. It goes beyond routine selling and involves understanding customer needs, presenting solutions effectively, and building long-term relationships. A creative salesperson acts as a consultant, problem-solver, and value-provider, rather than just pushing a product.
Key traits include:
- Strong communication skills
- Ability to analyze buyer behavior
- Product and market knowledge
- Adaptability and innovation
- Ability to build trust
Example: A salesperson selling water purifiers might creatively demonstrate real-time purification with a TDS meter, highlight health benefits, and offer a trial period to assure quality, thus going beyond traditional product pitching.
Functions of a Salesman
- Creating Demand: Salesmen identify customer needs and educate potential buyers about the product, thereby generating demand.
- Example: Convincing a restaurant owner to use a new energy-efficient oven by highlighting cost savings.
- Product Promotion: They promote the product’s benefits, usage, and unique selling propositions.
- Example: Showing demo videos and testimonials for a new fitness machine.
- Negotiation and Closing Sales: They negotiate prices, discounts, and payment terms to close the deal.
- Example: Offering a bulk discount to a retailer on purchasing 50+ smartphone units.
- Customer Relationship Management: Maintaining post-sale contact to ensure customer satisfaction and repeat business.
- Example: Checking in after 3 months to ensure an AC installation is working well.
- Market Intelligence Gathering: Salesmen collect feedback and report on market trends, competitor strategies, and consumer behavior.
- Example: Reporting that a rival brand has launched a cheaper variant with similar features.
Duties of a Salesman
- Prospecting: Finding new potential customers.
- Approaching: Making initial contact effectively and respectfully.
- Presenting: Explaining product features, benefits, and how it solves customer problems.
- Handling Objections: Addressing doubts and providing satisfactory solutions.
- Closing: Securing the final agreement or sale.
- Follow-up: Ensuring customer satisfaction, resolving post-sale issues.
- Documentation: Keeping accurate sales records, receipts, and delivery notes.
- Target Achievement: Meeting individual and organizational sales targets.
- Ethical Conduct: Avoiding false claims and respecting consumer rights.
- Time Management: Prioritizing prospects, maintaining schedules.
Q2. Personal Selling: Situations and Process
Personal selling is most effective when direct interaction, persuasion, and clarification are necessary before a sale. It is crucial in situations involving:
- High-Involvement Products: For expensive, technical, or long-term use items like cars or real estate, personal selling helps explain features, resolve doubts, and build trust. Example: A car dealer providing a detailed walkthrough of models, features, and financing.
- Customised Products or Services: When products need modification, personal selling is essential. Example: A software company representative understanding business needs to recommend an ERP solution.
- Industrial and B2B Sales: In business-to-business markets with high investment, personal selling is common. Example: A pharmaceutical rep convincing a hospital to adopt a new diagnostic machine.
- New Product Launch: To create awareness and educate the market about new offerings. Example: Health supplement reps demonstrating benefits at gyms.
- Complex Purchase Decisions: To help customers navigate choices and simplify decision-making. Example: A travel consultant guiding families on tour packages.
- Long-Term Customer Relationships: For industries like insurance or banking where repeat sales and strong relations matter. Example: A financial advisor guiding clients through investments.
Process of Personal Selling
- Prospecting: Searching for potential buyers. Example: A real estate agent finding leads at property expos.
- Pre-approach: Gathering information about the potential customer. Example: A salesperson studying a company’s background before pitching office furniture.
- Approach: Making initial contact to gain attention and build rapport. Example: “Good morning, sir! I’m here to show you how our solar panels can cut your electricity bills in half.”
- Presentation: Explaining product features and benefits.
- Handling Objections: Addressing customer doubts and concerns.
- Closing: Securing the final agreement or sale.
- Follow-up: Ensuring customer satisfaction and post-sale support.
Q3. Sales Management and Buying Motives
(a) Sales Management Process
Sales management involves planning, directing, and controlling sales activities to achieve business goals. Key steps include:
- Sales Planning: Forecasting demand, setting targets, and developing strategies. Example: A smartphone company setting a Diwali sales target for North India.
- Recruitment and Selection: Hiring skilled individuals with good communication abilities. Example: A pharmaceutical company hiring B.Sc. graduates for fieldwork.
- Training and Development: Educating the team on products, techniques, and policies. Example: An insurance agent undergoing a 2-week training program.
- Supervision and Direction: Guiding and motivating the team, providing feedback. Example: A retail team leader checking daily targets and motivating staff.
- Sales Budgeting and Compensation: Managing costs and designing incentive structures. Example: A dealer receiving ₹10,000 for exceeding sales targets.
- Sales Monitoring and Control: Tracking performance via reports and analytics, making adjustments. Example: Testing new discount offers if online sales drop in a region.
(b) Using Buying Motives in Personal Selling
Understanding buying motives helps tailor sales pitches. Motives include:
- Emotional Motives: Appealing to feelings like love, fear, or pride. Example: Selling a home security system by highlighting child safety.
- Rational Motives: Focusing on logic like cost savings or durability. Example: Highlighting fuel efficiency for a budget-conscious car buyer.
- Patronage Motives: Leveraging customer loyalty and trust in a brand. Example: A customer preferring a known electronics brand due to good past service.
- Prestige Motives: Appealing to the desire for status or social recognition. Example: Promoting the latest iPhone to appear trendy.
- Product Motives: Highlighting specific product attributes like quality or warranty. Example: Emphasizing smart cooling technology and a 10-year warranty for a refrigerator.
- Personalisation Based on Motives: Adjusting the approach based on the identified motive. Example: Focusing on “investment value” for a businessman versus “family utility” for a parent.
Q4. Motivating Salespersons: Financial and Non-Financial Techniques
Motivating salespersons is crucial for revenue generation and customer retention. Both financial and non-financial techniques are essential.
1. Financial Motivation Techniques: Monetary rewards providing economic satisfaction.
- Salary and Commission: Base salary plus commission on sales. Example: A real estate agent earning a 2% commission.
- Bonuses and Incentives: Rewards for exceeding targets. Example: A mobile company offering a ₹25,000 bonus for selling over 500 units.
- Profit Sharing or Stock Options: Offering a share of profits or company stocks. Example: IT company providing ESOPs to high-performing sales executives.
- Travel and Allowances: Covering expenses for travel, food, and lodging. Example: Medical sales representatives receiving daily allowances.
- Contests and Prizes: Rewarding top performers with cash or gifts. Example: Sales contests offering trips or gadgets.
2. Non-Financial Motivation Techniques: Emotional and psychological satisfaction.
- Recognition and Appreciation: Public acknowledgment, awards. Example: Applauding a salesperson in a team meeting.
- Career Growth Opportunities: Promotions and leadership training. Example: Promoting a sales executive to team leader.
- Job Security and Stability: Assuring employees of job safety. Example: Retaining sales staff during economic downturns.
- Healthy Work Environment: Fostering respect, support, and team bonding. Example: Regular team outings and open-door policies.
- Autonomy and Responsibility: Granting freedom in decision-making. Example: Allowing a salesperson to design a local promotional strategy.
- Training and Skill Development: Enhancing confidence and career growth. Example: Luxury brand providing communication workshops.
Q5. Prospects in Personal Selling
A prospect in personal selling is a potential customer with the interest, authority, and financial capacity to buy a product or service. They represent a qualified lead with a higher chance of conversion.
Types of Prospects:
- Cold Prospects: Individuals or businesses unaware of the company or product. Conversion is challenging but offers untapped potential. Example: Making random calls to companies from a directory.
- Warm Prospects: Those who have shown some interest or had prior contact (e.g., website visit, email response). Example: A person who downloaded a company brochure.
- Hot Prospects: Highly interested individuals ready for a purchase decision, often initiating contact. Example: A business owner calling for a quotation after a seminar.
- Existing Customers as Prospects: Current customers who may buy new or upgraded products. Easier to convert due to existing relationships. Example: A car buyer returning for a newer model.
- Referred Prospects: Individuals recommended by current customers or contacts, benefiting from pre-existing trust. Example: A friend recommending a gym salesperson’s contact.
Q5 (b). Techniques of Sales Presentation
Sales presentation techniques communicate product value to convince buyers. Different methods suit various products and customers:
- Canned Presentation: A standard, scripted pitch used for all prospects, suitable for new salespeople or simple products. Example: A fast-food rep pitching the same combo meal offer.
- Consultative or Needs-Based Presentation: Tailoring the pitch after understanding customer needs through questions. Example: A financial advisor suggesting insurance plans based on client’s goals.
- Product Demonstration: Showing the product in action to build excitement and trust. Example: A vacuum cleaner company demoing suction power in a customer’s home.
- Storytelling Technique: Using stories or testimonials to build trust and relatability. Example: A skincare consultant sharing a client’s success story.
- Problem-Solution Approach: Identifying a customer problem and presenting the product as the solution. Example: A cybersecurity expert selling antivirus by highlighting hacker threats to small businesses.
- Visual and Digital Aids: Using charts, videos, or infographics to enhance understanding. Example: A real estate agent using a 3D virtual tour for a remote buyer.
Q8 (b). Professional Salesmanship
Professional salesmanship involves selling with high standards of behavior, skills, and ethics. It requires:
- Deep Product Knowledge: Thorough understanding to answer queries and build trust.
- Communication Skills: Active listening, clear presentation, and respectful interaction.
- Ethical Behavior: Honesty, transparency, and prioritizing customer interests.
- Problem-Solving Approach: Acting as a consultant to find suitable solutions.
- Focus on Long-Term Relationship: Building trust through after-sales service and follow-ups.
- Time Management: Efficient planning and adherence to schedules. Example: An insurance agent assessing client needs before suggesting a policy.
Q8 (d). Selling vs. Marketing
Selling and marketing are distinct but related concepts:
- Orientation: Selling is product-oriented; marketing is customer-oriented.
- Timing: Selling occurs after production; marketing begins before.
- Goal: Selling aims to increase sales; marketing aims for customer satisfaction and loyalty.
- Approach: Selling is short-term; marketing is long-term.
- Techniques: Selling uses promotion and persuasion; marketing uses research, design, pricing, advertising, and distribution. Example: A shopkeeper pushing a product for commission (selling) vs. a company researching needs, designing, and promoting phones (marketing).
Q8 (a). Sales Code of Conduct
A Sales Code of Conduct provides ethical guidelines for sales behavior, ensuring honesty, transparency, and fairness. Key principles include:
- Honesty and Integrity: Avoiding false promises and misrepresentation. Example: Not claiming a product has a non-existent feature.
- Fair Treatment of Customers: Treating all customers equally.
- No Pressure Selling: Avoiding manipulative tactics.
- Respect for Competitors: Refraining from spreading negative rumors.
- Confidentiality: Protecting customer information.
- Lawful Behavior: Adhering to legal norms (invoicing, warranties).
- Loyalty to the Company: Not harming the company’s brand image.
Q8 (c). Presentation and Demonstration
Presentation and demonstration are key steps in personal selling:
- Presentation: Verbal and visual explanation of features and benefits, tailored to customer needs. Example: A washing machine salesman highlighting energy savings and warranty.
- Demonstration: Physically or visually showing the product in action to build trust and allow experience. Example: A vacuum cleaner rep showing dust removal effectiveness in a home.
- Importance: Presentation builds desire; demonstration removes doubt and builds confidence.
- Tools: Using tablets, slideshows, samples, and videos enhances understanding.
- Adaptability: Adjusting the style based on customer interest and background.
Q6. Personal Selling: Definition and Sales Process Steps
Personal selling is direct communication between a salesperson and a potential customer to make a sale. It involves interaction, persuasion, and relationship building, making it effective for complex or high-value products.
Steps Involved in the Sales Process:
- Prospecting and Qualifying: Identifying and filtering potential customers based on interest, need, and capacity. Example: A real estate agent filtering inquiries by budget and urgency.
- Pre-approach: Preparing by gathering information about the prospect’s behavior and preferences. Example: A laptop salesperson researching a corporate client’s needs.
- Approach: Making the first interaction to create a positive impression and build rapport. Example: A fashion store salesman engaging a customer in friendly conversation.
- Sales Presentation and Demonstration: Explaining product features/benefits and showing how it meets customer needs. Example: Demonstrating a water purifier’s effectiveness with a live water test.
- Handling Objections: Listening to and resolving customer concerns about price, quality, etc. Example: Explaining long-term savings when a customer finds a product costly.
- Closing the Sale: Finalizing the deal and asking for the order, possibly using incentives. Example: “Shall I reserve this model for you today, considering the extended warranty?”
- Follow-up and After-Sales Service: Ensuring customer satisfaction and building loyalty for repeat business.