Sales Management (Unit-2)

Definition: Personal selling is also known as face-to-face selling in which one person who is the
salesman tries to convince the customer in buying a product. It is a promotional method by which the
salesperson uses his or her skills and abilities in an attempt to make a sale.

Description: Personal selling is a face-to-face selling technique by which a salesperson uses his or her
interpersonal skills to persuade a customer in buying a particular product. The salesperson tries to
highlight various features of the product to convince the customer that it will only add value. However,
getting a customer to buy a product is not the motive behind personal selling every time. Often companies
try to follow this approach with customers to make them aware of a new product.

Theories of Personal Selling

There has been a lot of research by behavioral scientists and marketing scholars to examine whether

selling is an art or science and various theories have been developed to explain the buyer-seller buying

process. The process of influencing others to buy may be viewed from four different angles on the basis

of different theories: thus there are four theories of selling viz.

1. AIDAS theory of personal selling

2. ―Right Set of Circumstances‖ theory of selling

3. ―Buying Formula‖ theory of selling

4. ―Behavioral Equation‖ theory

The first two of the four above-mentioned theories, are seller oriented and the third one is buyer’s

oriented. The fourth one emphasizes the buyer’s decision process but also takes the salesperson’s

influence process into account.

1. AIDAS Theory of Selling:
This theory, popularly known as AIDAS theory (attention, interest, desire, action and satisfaction), is

based on experimental knowledge. This theory is very common.

According to this theory potential buyer’s mind passes through the following stages:

a. Attention Getting:
It is the crucial step in the AIDAS process. The objective is to put the prospect into the right state of mind

to continue the sales talk. The salesperson has to convince the prospect for participating in the face-to-

face interview. A good beginning of conversation may set the stage for a full sales presentation. The

salesperson must apply his social and psychological skills to draw the attention of the prospect to his sales

presentation.

b. Interest Creating:
The second step is to intensify the prospect’s attention so that it involves into strong interest. To achieve

this, the salesperson has to be enthusiastic about the product. Another method is to hand over the product

to the prospect and let him handle it. Brochures and other visual aids serve the same purpose. Throughout

the interest phase, the hope is to search out the selling appeal that is most likely to be effective.

c. Desire Stimulating:
After the attention getting and creating interest, the prospect must be kindled to develop a strong desire

for the product. This is a ready-to-buy point. Objection from the prospect will have to be carefully

handled at this stage. Time is saved and the chances of making a sale improved if objections are

anticipated and answered before the prospect raises them.

d. Action Inducing:
If the presentation has been perfect, the prospect is ready to act, that is, to buy. Very often there may be

some hesitation on the part of the prospect at this stage. The salesperson should very carefully handle this

stage and try to close the deal effectively. Once the buyer has asked the seller to pack the product, then it

is the responsibility of the seller to reassure the customer that the decision was correct.

e. Satisfaction:
The customer should be left with the impression that the salesperson merely helped in deciding. After the

sale has been made, the salesperson should ensure that the customer is satisfied with the product. The
salesperson should sense the prospect’s mind and brief his talks.
2. “Right set of circumstances” Theory of Selling:
It is also called the ―situation-response‖ theory. It has its psychological origin in experiments with

animals. The major emphasis of the theory is that a particular circumstance prevailing in a given selling

situation will cause the prospect to respond in a predictable way. The set of circumstances can be both

internal and external to the prospect. This is essentially a seller-oriented theory and it stresses that the

salesman must control the situation in such a way as to produce a sale ultimately.
3. “Buying Formula” Theory of Selling:
The buyer’s needs or problems receive major attention, and the salesperson’s role is to help the buyer to

find solutions. This theory purports to answer the question: What thinking process goes on in the

prospects’s mind that causes the decision to buy or not to buy? The name ―buying formula‖ was given to
this theory by strong.

The theory is based on the fact that there is a need or a problem for which a solution must be found

which would lead to purchase decision, as shown below:

Whenever an individual feels a need, he is said to be conscious of a deficiency of satisfaction. The

solution will always be a product or service or both and they may belong to a producer or seller. The
buyer develops interest in buying a solution.

In purchasing, the “solution” involves two parts:

1. Product or service or both,

2. The brand name, manufacturer or the salesperson of the particular brand name:

The product or service (Brand name) must be considered adequate to satisfy the need and the buyer must
experience a pleasant feeling or anticipated satisfaction. This ensures the purchase.
4. Behavior Equation Theory of Selling:
This theory is a sophisticated version of the ―right set of circumstances‖ and this theory was proposed by

Howard, using a stimulus response model and using large number of findings from behavioral research.

This theory explains buying behavior in terms of purchasing decision process, viewed as a phase of the

learning process, four essential elements of learning processes included in the stimulus response model
are drive, cues, response and reinforcement, which are given below, in brief:

1. Drive is a strong internal stimuli that impel buyers’ response. Innate drives stem from psychological

needs and learned drives such as striving for status or social approval.

2. Cues are weak stimuli that determine when the buyer will respond. Triggering cues activate the

decision process whereas new triggering cues influence the decision process.

3. Response is what the buyer does.

4. A reinforcement is any event that strengthens the buyers’ tendency to make a particular response.

Howard believed that selling effort and buying action variables are multiplicative rather than additive.

Therefore, Howard incorporated these four elements into a behavioral equation that is:
B=P×D×K×V

P = Response or internal response tendency, i.e. the act of purchasing a brand or a particular supplier.

D = Present drive or motivation level

K = ―Incentive potential‖ that is, the value of product or brand or its perceived potential value to the

buyer.

V = Intensity of all cues: triggering, product or informational.

 Types of Sales Executives
Sales executives are integral to any organization, promoting growth by creating and developing customer
relationships. They specialize in various areas, each with unique roles and responsibilities that vary
according to the industry, product or service. Understanding the distinct types of executives can help you
decide which skills are important for your chosen career and enhance your performance. In this article,
we discuss the various types of sales executives and review the key responsibilities of each role.
1. Inside Sales Executive
An inside sales executive often manages transactions via phone, email or virtual meetings. Their
responsibilities include building and maintaining customer relationships, seeking new business,
conducting product demos and closing sales, all from a fixed location, typically an office. They are
proficient in customer relationship management tools and digital communication technology.
The skills required for this role include exceptional written and verbal communication, proficiency in
using relevant technology and the ability to engage with, and persuade customers remotely. This role
often requires a background in customer service or a business-related field, with a Degree in Business or
Marketing. These executives often work in industries such as software and technology, financial services
and telecommunications, where companies promote their products or services by phone or online.
2. Outside Sales Executive
The role of an outside sales executive or field sales representative involves travelling to meet potential
clients. Their primary responsibilities include generating new leads, developing client relationships,
negotiating deals and closing sales. This role requires adapting to various social situations and
environments, in-person presentation skills, self-motivation and time management.
They typically have a background in sales, business or a related field, and a Bachelor's Degree in
Business, Marketing or Communications is often an advantage. They are often employed in industries
such as manufacturing, wholesale and distribution, construction and health care equipment, where a
physical demonstration of products is helpful.
3. Business-to-Business (B2B) Sales Executive
A B2B sales executive focuses on selling products or services to other businesses, often involving
substantial deals and longer timescales. Their primary responsibilities include identifying potential
clients, understanding their needs, suggesting appropriate products or services and managing ongoing
client relationships. A comprehensive understanding of their product or service, exceptional negotiation
skills and the ability to build strong client relationships are key in this role.
They often have a background in sales or business, with a Degree in Business, Marketing or a related
field being beneficial. Industry-specific knowledge or experience can be a significant advantage. This role
is typical in industries such as technology and software solutions, industrial equipment suppliers and
consultation businesses.
4. Business-to-Consumer (B2C) Sales Executive
A B2C sales executive focuses on individual consumers rather than businesses. Their responsibilities
involve understanding customer needs, promoting products or services, closing deals and ensuring a
seamless customer experience. They often operate in high-volume environments, requiring a customer-
centric approach, effective communication skills and the ability to manage multiple transactions
efficiently.
A background in retail, customer service or direct sales, often with a Degree in Marketing,
Communications or a similar field, is a typical requirement for this role. As they communicate with a
wide range of consumers, they may benefit from being empathetic, patient and persuasive. Industries such
as retail, telecommunications, consumer goods and e-commerce that offer products or services to the end
consumer typically employ B2C executives.
5. Technical Sales Executive
A technical sales executive specialises in selling technical products or services, often in industries such as
technology, engineering or manufacturing. Their primary responsibilities include a thorough
understanding of their product, presenting and explaining complex solutions to potential clients,
addressing technical enquiries and collaborating closely with technical teams to customise solutions that
meet customer needs.
They require a comprehensive knowledge of their product's technical specifications, functionalities and
benefits. A typical background includes a Degree in Engineering, Computer Science or a related technical
field and experience in sales or a customer-facing role within the industry. Industries employing these
individuals include software, technology and industrial equipment providers or engineering and scientific
instrument companies that sell advanced or specialised products.
6. Retail Sales Executive
A retail sales executive operates in a customer-facing role. They are primarily responsible for assisting
customers in making purchases, managing transactions, maintaining the appearance of the sales floor and,
potentially, managing a team of associates. They require excellent interpersonal skills, a customer-centric
attitude and a detailed understanding of the products they sell.
They often have backgrounds in retail, customer service or related fields, and while formal education can
vary, a Diploma or Degree in Business or Marketing can be helpful. They often acquire specific product
knowledge and training on the job. Industries that employ retail sales executives include those
specializing in clothing and apparel, electronics, furniture and other consumer goods.
7. Enterprise Sales Executive
An enterprise sales executive focuses on securing large deals with enterprise-level clients, such as
corporations or institutions. Their key responsibilities include identifying potential clients, building
relationships, negotiating contracts and managing the overall client relationship to ensure long-term
satisfaction and renewal. This role demands advanced negotiation skills, strategic thinking and an
extensive understanding of complex sales cycles and contract structures.
They often have a background in B2B sales or a business-related field and a Business, Finance or
Marketing Degree. They require an understanding of industry trends, competitive markets and their
products or services. They are most prevalent in the technology and software industries,
telecommunications, professional services, health care and any business that offers large-scale solutions
to other companies.
8. Channel Sales Executive
A channel, or indirect, sales executive sells through third parties or affiliates rather than directly to the
customer. Their responsibilities involve identifying potential partners, establishing and nurturing business
relationships, providing product training and collaborating on sales strategy and execution. They require
strong relationship-building and collaboration skills and a strategic mindset to identify suitable partners.

They often have a sales or business background, with a Degree in Business, Marketing or a similar field.
A unique aspect of this role is the ability to manage relationships and influence sales indirectly via
partners. Industries such as software and technology, manufacturing and wholesale distribution, where
channel selling is a key part of the strategy, employ these executives.
9. Software Sales Executive
A software sales executive specialises in selling software products or services to businesses or consumers.
Their primary responsibilities include understanding the technical aspects of the software, demonstrating
its benefits, negotiating contracts and closing sales. They often work closely with the software
development team to stay up to date on product changes and new features.

This role requires a combination of technical and sales skills, a thorough understanding of software
applications, exceptional communication skills and the ability to translate complex software features into
real-world benefits. A typical background for this role may include a Degree in Computer Science,
Information Systems or Business and experience in sales or a technology-related field. Technology and
software industries primarily employ them, where rapid innovation and increasing software solutions
demand specialised sales knowledge.
10. Online Sales Executive
An online sales executive sells products or services primarily via the internet. Their responsibilities
include identifying potential customers online, using digital channels to promote and sell products or
services and maintaining customer relationships. They use email, social media, webinars and e-commerce
platforms extensively in their sales process.
Key skills include proficiency in digital technologies, strong written communication skills and an
understanding of online customer behaviour. Their backgrounds often include experience in digital
marketing, e-commerce or a related field and a Degree in Marketing, Business or Information
Technology. They usually work in e-commerce, software and technology industries and digital marketing
services selling products or services online.
11. International Sales Executive
An international sales executive manages trade across different countries and regions. Their
responsibilities include understanding international markets, adapting strategies to meet cultural contexts,
managing international accounts and ensuring compliance with local laws and customs. This role requires
strong cultural competency, adaptability and an understanding of global business practices.
Typically, they have a background in business or sales, with a Degree in International Business,
Marketing or a related field. They may also have experience working in multicultural environments. The
main industries for these individuals include technology, manufacturing, pharmaceutical and consumer
goods businesses that sell products or services internationally.
Sales Executive Qualities
In addition to technical and foundational skills (such as leadership skills), successful sales executives
demonstrate certain qualities that set them apart. The defining sales executive qualities include
1. Grace under Pressure
Sales executives know how to handle high-pressure situations. They remain calm and don’t use
emotionally charged words when things go awry. They’re patient and know how to defuse tension. Self-
confidence is the first sign of success.
2. Strong Commitment
Efficient sales executives are committed. They’re result-driven and utilize their potential to the fullest.
Additionally, they motivate their teams to remain driven. Even when things get too tough, they show grit.
3. Effective Time Management
Highly effective sales executives know how to manage time and utilize it efficiently. Time is literally
money and any time lost will impact an organization’s growth. They know how to fully utilize duty hours
and arrive at an optimum division of work.
4. Thorough Planning
A skilled sales executive is always prepared. They know how to engage in critical thinking and look at
problems from multiple perspectives. They review past performance and strive to gain new insights,
allocating sufficient time to plan and execute decisions. They know how to look at the bigger picture and
stay focused.
5. Continuous Learning
They say learning is an endless process and efficient sales executives believe in this statement. They’re
hungry for knowledge and continue to learn more about the product or their target group. They know
when to ask questions and connect the dots. They’re proactive and enthusiastic about learning and finding
new ways to sell their product. Customers and clients value professionals who know their subject well. It
helps build trust.
Final Thoughts
Forward-thinking organizations know when and how to invest in sales leadership. The ability to sell is a
superpower and it’s one of the core functions of an organization. It has a significant impact on business
growth, outcomes and even decides the future of the organization. Sales competencies are sufficient to
drive growth but are they enough to drive success? Therefore, it’s important to prioritize and
promote sales executive skills and qualities.
Selling Process

The selling process is the interaction between a seller and a potential buyer or client. It's generally a
method businesses can replicate for consistent performance among salespeople. Businesses use the
common seven steps of the selling process to complete sales and ensure continued profits.
7-step selling process

Here are seven steps that are typically involved in making a sale:

1. Prospecting

2. Preparation or pre-approach

3. Approach

4. Presentation

5. Handling objections

6. Closing

7. Follow-up
1. Prospecting

Prospecting involves finding and qualifying potential buyers or clients. At this stage, you determine
whether your prospective customer has a particular need or want that your business can fulfill. You might
also decide on varying factors such as affordability.

This stage of the selling process often involves research to identify your ideal customer. You can start
compiling a list of leads or potential clients. You might screen them based on qualifying questions, such
as whether they’re a business owner or homeowner or if their average monthly profits or income are
suitable for the product price. This helps narrow your buyer pool.

2. Preparation or pre-approach

Before making initial contact with your prospects, you want to prepare. It's important to have your entire
information ready, such as product descriptions, prices, payment options, competitor rates and dates for
specific sales. You also want to know as much as possible about your prospects so you can better connect
with them.

This stage of the selling process might also involve preparing your initial sales presentation. Be ready to
answer any questions your prospects could have with supporting data. Practice what you're going to say
out loud, and have someone present you with potential questions so you can rehearse your response.

3. Approach

During the approach stage of the selling process, you’ll make your first personal connection with your
prospect or prospects. This step involves getting the potential buyer or client to interact with you by
personalizing your meeting or otherwise establishing rapport. Ask questions to get the client involved in
the conversation.

Example: For instance, if you sell skincare products or services, you might ask:

Do you currently have a daily skincare routine?

Is there anything about your daily skin regimen that you’re unhappy with?

What are your top skin complaints?

Have you heard about the skin benefits of our specific product or service?
You can also offer a gift, such as $10 off the first skin treatment or a sample of the product so your
prospect can experience the benefits firsthand before making a greater investment. This also helps to
confirm confidence in what you’re selling.
4. Presentation

At this point in the selling process, you have established an understanding of your prospect's individual
needs and wants. You can then tailor your presentation or demonstration to show how your product or
service can best fulfill those needs or wants. To complete this step effectively, focus on personalizing it
and frame your product as a solution to their problem.

Your presentation might involve a tour, product demonstration, video presentation or other visual or
hands-on experience. This step is when you can apply all your research. For instance, if you’re trying to
sell a house to a growing family, you likely would show them a larger home with a yard in a family-
friendly neighborhood rather than a second-story condo.

5. Handling objections

After you complete your presentation, your prospect might have some questions, concerns or objections.
This is a normal and important part of the selling process. View objections as an opportunity to learn
more about your prospect. When you research and prepare appropriately, you’ll have all the information
needed to overcome objections.

This step might involve listening to your prospect's concerns and asking additional questions to better
identify and understand their objections. You might want to then reframe your sales pitch to address those
concerns.

6. Closing

Once you've convinced the prospect that your product or service can meet their needs, it's time to close
the sale. It's important to actually ask the prospect if they want to make the purchase and ensure they fully
understand all the terms of the sale. Closing the sale might involve drafting a proposal, negotiating terms
or pricing, signing contracts, completing a monetary transaction or even overcoming additional concerns
or objections. At this stage, you can also use upselling techniques, such as offering additional products
that complement their original purchase, upgrades or a higher-end version of your product. After
completing the transaction, always thank the customer and be sure not to instantly drop the connection.
7. Follow-up

The follow-up, which takes place after the sale, is one of the most important steps in the selling process.
It’s a continuation of the relationship between the seller and the buyer that ensures customer satisfaction,
retains customer loyalty and helps prospect for new customers. The idea is not to continue selling at this
stage, but instead to nurture the existing relationship.

The follow-up might involve sending a thank-you note or calling the customer to ask about their
experience with their new product or service. You might also ask your customer to rate your service or
post a review on one of your social media or business pages. Sometimes, the follow-up includes
completing the logistics of a sale, such as signing additional contracts, making deliveries or installing
products. When done well, this stage can often lead you back to step one in the selling process with
additional sales, referrals or reviews that bring new customers to you.
Showroom

A showroom is essentially an interactive, experiential space that illustrates and displays your company’s
message, services and products in a simple, understandable and engaging way. Ideally, it impresses and
inspires its visitors not only through the content itself, but also through innovative and creative forms and
modes of presentation. These include intuitive accessibility, playful and entertaining ways of conveying
information, and a well-considered presentation that suits your target audience.

So far so good. But when you walk into your perfectly conceived and beautifully designed showroom for
the first time, you’ll see one thing above all else: your company’s very identity!

Aims and uses of a showroom:

 Communicate your brand’s value proposition in a compelling way!
 Tell your company’s story in a way that will make your target audience listen!
 Inform and inspire your stakeholders!
 Showcase your product portfolio and highlight your USPs!
 Interact with your target audience – immediately and for the long term!
 Generate leads!
 4 good reasons for a showroom:
1. A space that appeals to everyone. :- When you think of a showroom, you’re probably thinking mainly
of customers, prospects, potential buyers or investors. But you can also use the showroom to engage,
educate and inspire your existing and future employees, business partners, suppliers, politicians, the press
and many other audiences.

2. No trade fairs? No problem!:- Especially in times like these, when a global pandemic is preventing
trade fairs and large public events from taking place, targeted invitations to your showroom can pay
dividends. Here you can offer your guests a safe and exclusive presentation and even give them more
attention than would have been possible in the context of a trade fair. and vice versa.

3. Not only beautiful, but also very profitable:- A well-designed and versatile showroom quickly
becomes a quantifiable revenue generator. Its constant use leads to more and wider contacts. And they
will remember you and your business for a long time, thanks to your impressive live touch point.

4. Show your business at its best. From all angles.- It’s hard to convey intangible values, a philosophy,
vision or innovation with PowerPoint or Zoom. In a showroom, however, you can immerse your target
audience in your multimedia brand experience with all their senses.
Exhibition
Exhibition events are opportunities to attract business and communicate a consistent brand message to
your audience about your products and services. Given that visitors will only have a set amount of time
and money, you need to create the right impression. Your competition will be fierce and will be
employing key exhibition marketing strategies, and you must too.
Exhibitions date back far into the 17th century but became popularized in Britain during the 19th century
due to the high amount of traffic flooding into London through its vast, profitable ports. The exhibitions
on display were often places to witness glimpses of technological marvels like prototype planes or
electricity shooting through coils.

Even if you wish to rely solely on your high-quality banner, your oozing charisma and, of course, the
products or services you wish to showcase, your rivals will be employing top exhibition marketing
strategies. If you’re interested in finding out more about what these are, please read on.
 Importance of Exhibition
Let us understand the importance of exhibitions.

1. Face-To-Face Communication
Exhibitions are independent and accessible for all channels to reach new, old, and potential clients in a
given place at a specific time. They provide direct client interaction, the greatest approach to maintaining
and developing existing relationships.
A good exhibition presentation can assist establish your brand’s credibility and promote interest in new
products or services. It helps you gain market traction and expand your client base.
Exhibiting at exhibitions can help you grow your brand from a startup to a successful and effective
enterprise.
2. Build Brand Awareness
Participation in an exhibition helps to build brand relevance. It is an excellent method to boost your
brand’s value and generate publicity by participating in industry events.
Understanding the importance of exhibition participation will increase your advertising & marketing
opportunities.
If you use attractive exhibition stands, your target audience will be drawn to your booth and become more
familiar with your business. They will immediately interact with your brand once they become familiar
with it. As a result of this proximity, you will be able to understand your audience and their demands
better.
3. Networking
Exhibitions allow a significant market size in a business world to meet simultaneously. In addition, these
events attract like-minded individuals from the same profession or industry. It allows participants to
network and grow a company’s marketing strategy and brand recognition.
4. The Competition in the Open Market
Additionally, in today’s highly competitive marketing world, we must have a good understanding of our
competitors.
Open competition can help you grow your business. Exhibitions provide buyers with a proactive
platform. They can explore and analyse products of interest, compare one product to those of other
companies, and then return for additional examination — all in a short time. It enables the producer to
ascertain what works and what does not.
5. Interpretive Mission
Exhibitions allow you to conduct fact-finding missions to determine what your competitors are doing
differently.
Find out your competitors charging for their products by asking for their price list or looking carefully at
the booths with the most visitors. All of this will assist you in understanding other brands’ sales and
marketing methods and modifying your strategy.
6. Review of a Product
Social media has opened a new era of branding and marketers. If you’re a blogger or a social media
influencer, you’ll be able to find things to review at trade events and exhibitions.
Additionally, you can obtain professional opinions on new advancements and suggestions about how to
upgrade existing products.
7. Showcasing
Producers can reach a specific audience by displaying their goods and services at exhibitions. Displays
will draw visitors, buyers, and the media to your products. This exposure is highly beneficial to a small
business.
8. Launching a Product
Exhibitions are ideal for launching new products and testing their feasibility. In addition, exhibition
feedback will quickly reveal whether or not a product is suitable for a specific audience.