Sales and Selling Process - Video

Page 1

  • Learning objectives (from the chapter): understand the meanings and distinctions around Sales, Marketing, Personal Selling, Advertising vs Personal Selling, the steps in the Personal Selling Process, the qualities of a good salesman, and the distinction between the Sales and Selling Process.

  • Meaning of Sales:

    • Sales is the exchange of goods and services for money; it is the process by which the seller transfers ownership in goods or services for a price.

    • Sales is a core business activity; revenue cannot be earned without a sale. Marketing is broader and encompasses more than just selling.

    • Selling is one essential technique of selling; it is synonymous with salesmanship or personal selling in practice, and involves multiple steps in the personal selling process.

  • Meaning of Selling (definition and scope):

    • According to the American Marketing Association, selling is the personal or impersonal process of assisting a prospective buyer or customer to buy a good or service and to act favorably upon a commercial idea significant to the seller.

    • Selling comprises all personal and impersonal activities involved in finding a demand, securing and developing demand for a product or service, and consummating the sale.

    • Selling requires persuasion; it involves identifying customers, creating demand, persuading them to buy, and transferring ownership. It can be consumer selling or industrial selling:

    • Consumer selling: selling goods/services to final users.

    • Industrial selling: selling to firms for industrial use.

  • Main features of selling:

    • (a) Selling involves persuading and convincing people to buy; persuasion is necessary for creating demand.

    • (b) Selling involves winning the confidence of buyers by providing information about the utility of products and services.

    • (c) Selling can occur over the counter (retail) or door-to-door; methods apply to both.

    • (d) Selling converts goods and services into cash and seeks to satisfy customer needs; it is a two-way process.

  • Methods of selling (applicable to over-the-counter and door-to-door):

    • Sale by Inspection: Buyer inspects goods before buying; used when goods are non-standardised or perishable; time-consuming.

    • Sale by Description: Goods are sold through catalogues, circulars, sales letters, etc.; description provides size, shape, design, contents; saves time and widens reach; used for standardised goods.

    • Sale by Sample: A sample is checked; bulk orders can be placed on the basis of the sample; used for items like food grains, tea, coffee, etc.

    • Sale on Approval or Return: Seller ships goods to the buyer; buyer may decide to buy or return after checking.

  • Distinction between Marketing and Sales (introduction to the comparison): marketing is a broader discipline that includes planning, pricing, promotion, and distribution; selling is one component focused on procuring orders and delivering products. See Page 2 for a detailed comparison.

Page 2

  • Distinction between Marketing and Sales:

    • Marketing:

    • Marketing consists of interacting business activities and is a wider term.

    • It includes selling, planning, pricing, persuading, and distributing goods and services as an integrated approach to satisfy customers.

    • Marketing involves the design of products acceptable to customers and the transfer of ownership from seller to buyer.

    • It is customer-oriented and focuses on long-term growth and profitability by satisfying customer needs.

    • It begins before production (to understand consumer needs) and continues after sale (for after-sale service and to judge consumer reactions).

    • Sales:

    • Selling is the process of procuring orders from customers and delivering the products to them; it is product-oriented and aims to maximize profits through sales volume.

    • It begins after production and ends with delivery; it is a short- to medium-term activity focused on the sale itself.

    • Sales is a component of marketing and emphasizes persuasion and promotion to move products to customers.

    • It concentrates on increasing sales volume; marketing concentrates on satisfying the customer.

    • Ethical note: Caveat vendor – let the seller beware; Caveat emptor – let the buyer beware.

  • Summary of the marketing vs selling distinction (key points):

    • Marketing is broader and proactive, starting before production and continuing after sale; it is customer-oriented and designed to satisfy needs.

    • Selling is a subset within marketing, focused on persuading customers to buy and on completing transactions; it is product-oriented and often emphasizes short-term profits.

Page 3

  • Meaning of Personal Selling:

    • Personal selling, or salesmanship, is the process of informing and persuading a prospective buyer to buy a product or service in a face-to-face situation.

    • It aims to provide lasting satisfaction and to win the buyer’s confidence, creating a regular and permanent customer.

    • Quotations cited (illustrative):

    • Pederson and Wright: "Salesmanship is the process whereby the seller retains and activates the needs or wants of the buyer and satisfies the needs or wants to mutual continuous advantage of both the buyer and the seller."

    • G. Blake: "Salesmanship consists of winning the buyer’s confidence for the seller’s goods and thereby winning a regular and permanent customer."

    • American Marketing Association: personal selling is the process of assisting and persuading a prospective buyer to buy a product in a face-to-face situation.

  • Features of Personal Selling (as derived from definitions):

    • Personal: direct, personal contact between the seller (or their representative) and the buyer.

    • Selective: involves contact with a limited number of selected persons.

    • Oral: relies on spoken communication rather than written.

    • Long-Lasting Relationship: aims to develop a close, enduring relationship with the buyer, not just one sale.

    • Art: a skill involving persuasion, education, and confidence-building.

    • Flexibility: the ability to tailor presentations to individual customers and handle objections on the spot.

    • Mutual Benefit: a two-way process that benefits both buyer and seller; customer satisfaction drives repeat business.

  • Importance of Personal Selling:

    • Understanding Customer Needs: helps understand needs, habits, attitudes, and preferences to design products and services that satisfy customers.

    • Persuasion of Customers: a salesman can inform, educate, and win the confidence of present and prospective customers.

Page 4

  • Steps in the Personal Selling Process (Fig. 4.1 reference): A typical sequence is:
    1) Preparation
    2) Prospecting
    3) Approach
    4) Presentation
    5) Convincing
    6) Closing the Sale
    7) Post-Sale Follow-Up

  • Details of each step:

    • Preparation: A well-trained sales force; knowledge of competitors, company products, and services; ability to remove customer doubts.

    • Prospecting: Locate and identify potential buyers; prepare a list using dealers, salespersons, telephone directories, etc.; collect information on age, income, education, family background, tastes, preferences (pre-approach data).

    • Approach: Face-to-face contact; introduce yourself; greet the customer; set a positive tone; initiate the selling conversation.

    • Presentation: Demonstrate and describe the product; explain quality, utility, performance; show how it meets customer needs and arouse interest.

    • Convincing: Handle objections; treat objections as sales opportunities; understand causes and address them to persuade.

    • Closing the Sale: Obtain consent to purchase; may require concessions; know when and how to close; reassure the customer of a wise choice; thank the customer; ensure proper packaging and delivery.

    • Post-Sale Follow-Up: Check customer satisfaction with the product; follow-up to build trust and loyalty.

  • The steps can be summarized with the acronym AIDCAM:

    • Attention, Interest, Desire, Conviction, Action, and More Sales

    • In LaTeX: extAIDCAM=extAttention,Interest,Desire,Conviction,Action,MoreSalesext{AIDCAM}= ext{Attention, Interest, Desire, Conviction, Action, More Sales}

  • Qualities of a Good Salesman (4.7):

    • Good Physique: Sound health, good appearance, cheerful disposition, impressive voice; physically and mentally fit for hard work; neat appearance and proper dress.

    • Cheerful: Pleasing manners, smiling, sociable, friendly, cooperative; polite and courteous.

    • Sincere: Loyal, committed, dependable, courageous; cool temperament and enthusiasm.

    • Sensitive: Attuned to customer needs and expectations; good listener; patient.

    • Knowledgeable: Up-to-date knowledge about the firm, products, market, competitors, and customers; able to face and convince buyers with knowledge.

    • Sound Memory: Keen observation, alert mind, sharp memory, ability to judge people; self-confidence, far-sightedness, persuasiveness, and initiative.

Page 5

  • Distinction between Sales and the Selling Process (4.8):

    • Sales vs Selling Process (contrast):

    • Sales: refers to the total amount of goods and services sold by a firm during a given period.

    • Selling Process: a series of steps taken by a salesperson to sell goods and services.

    • Sales is the end result of the selling process; it is a quantitative measure.

    • The selling process is ongoing and not inherently quantitative.

    • Additional distinctions (describing selling vs personal selling):

    • Selling is the act of assisting and persuading a buyer to buy a product or service through face-to-face contact and other methods.

    • Personal selling is the process of assisting and persuading a prospective buyer to buy a product or service in a face-to-face situation.

    • Personal selling enables a salesperson to understand and persuade customers, collect feedback, and is the most flexible method.

    • The steps in the process of selling are preparation, prospecting, approach, presentation, convincing, closing the sale, and post-sale follow-up.

    • The main qualities of a good salesman are as listed in Page 4 (Good Physique, Cheerful disposition, Sincerity, Sensitivity, Knowledge, and Sound Memory).

  • Summary (combined insights referenced in the chapter):

    • Marketing is broader than selling and focuses on satisfying customer needs through a total system of planning, pricing, promoting, and distributing products; it begins before production and continues after sale.

    • Selling is a subset of marketing focusing on persuading customers, obtaining orders, and delivering products; it emphasizes after-sale service to judge customer reactions and maintain relationships.

    • Personal selling is a face-to-face, selective, oral, and adaptive discipline aimed at building long-term customer relationships and mutual benefits.

    • The personal selling process is a structured sequence (Preparation, Prospecting, Approach, Presentation, Convincing, Closing, Post-Sale Follow-Up) and can be remembered via AIDCAM (Attention, Interest, Desire, Conviction, Action, More Sales).

    • A successful salesman combines physical presentation, positive demeanor, sincerity, sensitivity to customer needs, deep product/market knowledge, and strong memory to build trust and secure repeat business.