Step 1: Prospecting and Qualifying

The selling process is a seven-step process used for selling a product. The process
can be multifaceted, lengthy, and complex, depending on the product and the
prospect. While all salespeople are different, generally most sales professionals go
through the same selling process.

The first step in the sales process is to find, or prospect for, strong potential customers.
In prospecting, sales professionals will work to create and develop a database of
potential customers, called sales leads through lead generation. Getting the names and
contact information for the database is the act of prospecting. Each business or
company has its own methods of prospecting and qualifying. For some companies, the
process is rigorous and lengthy; for others, it can be nothing more than a quick phone
conversation.

There are many methods of lead generation. Utilizing digital strategies is one example.
Many companies may prospect leads through a digital advertising campaign that
triggers potential customers to sign up for information about a product. Other forms of
prospecting can include meeting potential customers at trade shows, use of a referral
program, or purchasing a list of customers from a third-party company that meets the
criteria for the target market.

Once the sales professional has a database of leads, the next step is qualification of
those leads. Not all names in a database may be the right candidates for a company’s
products. There are many reasons why a candidate may not be a good fit for a
company’s products. For example, some leads may have recently purchased a
competitor’s product, and others may not be in a financial position to afford the product.
The sales professional wants to reduce the list to include only the leads who are a good
fit and are more likely to be receptive to purchasing the company’s products.
Qualification may also include making sure the contact has the authority to make the
purchasing decision.

You might be asking yourself how a salesperson or company tracks these leads and
keeps all the various communication touch points organized. They typically have two
software tools to help them: sales force automation (SFA) and customer relationship
management (CRM) software. SFAs are used to acquire a customer, and CRMs are
used to retain and manage customers after the sale.1

According to Salesforce, a company known for one of the most popular CRMs on the
market, CRM software “is a technology for managing all your company’s relationships
and interactions with customers and potential customers. The goal is simple: Improve
business relationships to grow your business.”

Step 2: Pre-approach
The pre-approach stage can best be described as a thorough analysis or research of
the potential candidate. It is in the pre-approach stage that the sales professional will
conduct a very detailed study of the prospect, which will often include information about
specific product needs, what current brands they might be using, brand awareness, who
the decision makers are, and general knowledge of personal interests and financial
standing. The research findings are meant to help the sales professional to find out
needs and wants as well as the best way to approach the prospect for the sales
presentation.

Some of the research that sales professionals seek to review as part of their
investigation may include interviews with other clients, financial reports, credit histories,
and any sources of public information. Most companies with a sales force and sales
process will use robust customer relationship management (CRM) databases to collect,
filter, and track prospects through the stages of the sales process. Information that is
uncovered during the pre-approach will be added to prospect records in the CRM
system.

Step 3: Approach
Information gathered in the pre-approach helps the sales professional during the
approach phase. Utilizing the insights they have gathered about the prospect, the sales
professional seeks to contact the prospect to build rapport and gather more information
on the needs and wants of the prospect. During this phase, it is very important for the
sales professional to create a positive impression, ask the right questions, and begin
building a relationship with the prospect.

A soft approach is generally the best strategy, as the goal is to build the relationship and
not necessarily push product. Hard-sell tactics are often rebuffed during this early
contact with the prospect. Ideally the role of the salesperson in this early stage is to ask
questions and listen. It is through listening intently to the prospect that the salesperson
can detect the fit for the product and ultimately the best way to sell the product.
Information gathered during the approach will often be used in the presentation stage.

Step 4: Presentation
Once the prospect has made it through the approach stage, the sales professional is
ready to present the product to the prospect. During the presentation stage, the goal is
to showcase the features about the product that will be of most benefit to the prospect
based on the need s uncovered during the pre-approach and approach stages. Often
the presentation may include education on the aspects of the product that the prospect
will find most beneficial to solve their problems. This is the time for the sales
professional to highlight the benefits of the product and answer questions the prospect
might have. For example, college admissions departments work with students to
showcase the best of the university in an attempt to persuade them to enroll. Part of the
presentation process includes tours of the campus, meetings with current students,
attending classes, and experiencing campus life.

The best sales professionals are good listeners. Good listening strategies work to build
rapport and create winning strategies. When you listen carefully to your prospects, they
will tell you exactly how to sell to them. Using information provided by the prospect, a
good sales professional will be able to turn it into a winning sale. Several methods of
sale presentation include a stimulus-response format, formula selling, a
need/satisfaction format, adaptive selling, and consultative selling.

Stimulus-Response Format

When a salesperson has done the research and they understand many of the issues
that might be presented by the customer, they are able to provide a stimulus, and the
customer provides a response. The skilled salesperson is able to counter every
response with a new stimulus. The goal is to sell based on the response from the
customer. To be effective, the salesperson must follow a script, which has been
developed based on the pre-identified needs and wants of the customer.

Formula Selling Format

Advertising has typically been dependent on the customer going through a specific set
of actions before responding. One of the most common consumer response models is
the AIDA model, which encompasses attention, interest, desire, and action. Marketers
often look to the AIDA model when putting together advertising campaigns. The AIDA
model is also used for formula selling. The goal is for the salesperson to take the
customer through the various stages of response until they get to the purchase of the
product. The skilled sales professional will make sure they are providing stimuli and
responses for each of the stages of AIDA.

Need/Satisfaction Format

The need/satisfaction format of selling is an approach where the sales professional

opens the sales presentation by probing the potential customer with questions in an
effort to uncover their needs. The sales presentation is then tailored to the customer by
showing how the product/service will satisfy the customer needs.

For example, the owner of a busy café may be met with a question about scheduling
from a salesperson who sells scheduling software. The salesperson may start with a
question such as “This café is so busy; is it difficult to schedule your staff?” Once the
café owner talks about the challenges of scheduling, the salesperson now has
information they need to custom tailor the sales presentation about scheduling software
to the specific needs identified by the café owner.

Adaptive Selling

Adaptive selling is one of the most customer-centric sales methods available to the
sales professional. Using the adaptive selling approach requires the sales professional
to adapt their selling strategy and even the product to meet the needs and solve the
problems of the customer. To fully utilize this approach requires that the sales
professional rapidly customize their approach to meet the needs of different customers.
Many sales professionals are taking advantage of the big data that is now readily
available to better target customers. Armed with data about what is going on in the
market, the salesperson can now adapt their presentation with real time information.

Consultative Selling

Perhaps this method was best exemplified in the movie Miracle on 34th Street. In the
movie, the Macy’s Santa Claus suggests a location, other than Macy’s, where a mother
can get a toy for her son. Consultative selling makes the sales professional a
consultant who develops a relationship with the customer and takes on an advisory role
to help the customer solve their problems. Generally, the problem will get solved
through purchase of the product, but it can also be solved in various other ways. The
sales professional becomes the anchor to helping the potential customer solve their
problems.

Step 5: Handling Objections

Preparation during the qualification, pre-approach, and approach stages of the sale
process, provide the sales professional with the information they will need to handle
objections. In many situations, seasoned sales professionals are able to successfully
present the product and answer questions without having objections. Good research on
the customer and an understanding of how the product will help them and solve their
problems allow the sales professional to avoid objections. However, when the customer
does present an objection, the skilled sales professional will need to be agile at handling
them.

Typically, strategies for handling objections include listening, restating the question, and
responding with additional questions. Price is generally always voiced as an objection.
Knowing the common objections and having a strategy to handle them prior to the
presentation will help advance to the close stage.

Step 6: Closing
Asking for the order is perhaps the hardest step in the sales process for many sales
professionals. Up to the point of the close, the sales professional has spent a
tremendous amount of time and energy with the prospect. Much of the work of the sales
professional has been around building a relationship with the prospect. Asking for the
order is a source of tremendous fear for many sales professionals because this is the
point where all of their work could unravel. What if the customer says no? Then what?

Many sales professionals fear the possibility of rejection. They also consider that they
may get the timing wrong. However, if the sales professional has prepared, they know
that asking for the order is the point where they make the prospect a customer. One
way to eliminate the guesswork of timing is to do a trial close by talking about things
such as financial terms or delivery of the product. The customer’s response to the trial
close questions will alert the sales professional to the prospect’s readiness to purchase.

Step 7: Follow-Up
After the order is placed, the real work begins. Upon closing a sale and signing the
prospect as a customer, the sales professional is now tasked with onboarding the
customer and ensuring that everything progresses smoothly with the sale of the
product. Because it is much more lucrative for a company to keep current customers
happy than to go out and prospect for new customers, the follow-up is a major step in
creating lifetime customer value (LCV). Most salespeople would rather maintain their
current clients than search for new clients. The follow-up after the sale is a critical step
in getting repeat business, customer referrals, and upsells during the next order cycle.

AIDAS theory of selling

AIDAS stands for Attention, Interest, Desire, Action, and Satisfaction. The
AIDAS model states that a prospect goes through five different stages before
finally responding satisfactorily to our product. thus he should be led
comfortably through all five stages. The AIDAS theory of selling is one of the
widest known theories and is the basis for training materials across numerous
organizations.

The AIDAS Model

The AIDAS model has 5 stages and each of the stages is mentioned below.

1) Attention
Gaining attention is a skill and just like any skill, gaining attention can be
improved upon with practice. This is an important stage A common phrase
applicable over here is “First impression is last impression”. The initial attempt
of the sales person must be to put the customer completely at ease. Casual
conversation is one of the best openers after which the sales person can gain
customer attention by leading him onto the sale.

2) Interest
The Interest stage is an important stage for all companies because once you
have gained attention, it is very important to maintain interest. Some sales
people are very good in the opening but as the technicalities take over, they
become uncomfortable while explaining the product. Whereas others who are
strong in the product department might open bluntly but create interest in the
second stage. Maintaining interest is a crucial part of the sales process and
hence is included in the AIDAS theory.

3) Desire
Have you seen the commercials wherein you just have to get out of your
house and get the product? Perhaps a car, an ice cream or a house. The
same has to be done by the sales person in personal selling. He has to create
enough desire in the customers mind such that he immediately has to buy the
product. Imagine an aquaguard sales man or a tupperware sales person.
They highlight the product in such a manner that you might be thinking “Why
didnt i buy this product before”. Thus kindling that desire becomes an integral
part of the AIDAS selling theory.

4)Action
Although there may be desire for the product, the customer might not act on it.
He might want to buy the product but he might NOT buy it. In such cases the
customer needs to be induced. There are various ways to induce the
customer such that he buys the product. It is important for the sales person to
understand whether to directly induce the customer or whether to push subtle
reminders that you are there for a sales call ;) .

5) Satisfaction
What would you do after the customer has given the order? Will you stand up,
Point at him and shout “Fooled ya”. I dont think so. The customer has just
parted with his money. Just like you part your money and expect good service,
he expects the same too. So even after he has bought the product, you need
to reassure the customer that he has made the right decision. The product is
good for the customer and you only presented the product. It was his decision
and he is right about it. These small cues post the sales process really give
confidence to the customer and he then looks forward to your product rather
than thinking whether or not he has made the right decision.
What are the benefits of the AIDAS model?
The AIDAS Model helps marketers by understanding what their target
audience needs and building a marketing strategy based on the needs of
customers. By understanding what drives satisfaction for customers and
understanding how customers travel through each stage of the AIDAS model,
marketers can create tailored products and services to cater to their
customers.

Besides this, the 5 stages can also help marketers identify new product ideas
and the type of products that are likely to be successful.

How to implement AIDAS in your organization?

There are multiple ways you yourself can use AIDAS for your organization.
Let us take you through each step and how you can take your customers
through each step

1. Attention: Offer free samples, incentives, and discounts to your

customers. Example – FMCG companies grab interests in malls by
offering free samples.
2. Interest: Launch products with better features and benefits to drive
the interest of customers. Utilize storytelling and influencer
marketing to capture interest. Example – A lot of software
companies market their features and benefits and influencers
make videos on it.
3. Desire: Keep a time-bound offer on the product so that the
customer desires immediately to have the product. Alternatively,
make the product features so good that the customer just wants to
have it.
4. Action: Make the customer commit to the purchase. Many
customers are hesitant to take action but giving more discount or
topping up additional freebies are ways to make the customer take
action.
 5. Satisfaction: Ensure customer satisfaction by engaging with them,
giving after sales support and service and ensuring customer
happiness.

Problem solving approach of personal selling

The problem-solving approach to personal selling is a customer-centric strategy that
prioritizes identifying and addressing the specific needs of potential buyers. Unlike
traditional methods focused on product features and aggressive sales tactics, this
approach fosters trust and builds long-term relationships. Here's how it works:

1. Deep Customer Understanding:

● Needs Analysis: The cornerstone of this approach is a thorough needs analysis.

The salesperson acts as a consultant, actively listening to the customer, and
asking insightful questions to understand their current situation, challenges, and
desired outcomes.
● Pain Points and Opportunities: By uncovering the customer's "pain points" -
the problems or inefficiencies they face - the salesperson identifies opportunities
for their product or service to provide solutions and add value.

2. Collaborative Solution Building:

● Presenting Options: Once the customer's needs are understood, the

salesperson presents solutions that address those specific challenges. This
could involve showcasing the product's features, but in the context of how it
directly benefits the customer.
● Collaborative Dialogue: The process is interactive. The salesperson
welcomes questions, addresses concerns, and tailors the conversation to the
customer's unique situation. This collaborative approach fosters trust and allows
for a deeper understanding of the customer's decision-making process.

3. Value Proposition and Differentiation:

● Benefits over Features: The focus is on the value proposition - the specific
benefits the customer will experience by using the product or service. This goes
beyond features and technical specifications. It demonstrates how the solution
will directly improve the customer's situation.
● Addressing Competition: The salesperson acknowledges competing products
but emphasizes the unique value proposition and differentiators that set their
 offering apart. This could be superior customer service, a longer warranty, or
better integration with existing systems.

4. Building Trust and Long-Term Relationships:

● Collaboration over Coercion: The goal isn't simply to close a sale, but to build
a long-term, trusted relationship. This is achieved by prioritizing the customer's
needs, providing honest and transparent information, and being a reliable partner
throughout the buying journey.
● Customer Success Stories: Sharing success stories from satisfied clients with
similar needs can enhance credibility and demon strate the product's
effectiveness in addressing real-world problems.
● Long-Term Partnership: The sales process doesn't end with a closed deal.
Problem-solving salespeople are committed to ongoing customer support,
ensuring the product or service continues to address the customer's evolving
needs and delivering a positive return on investment.

Benefits of the Problem-Solving Approach:

● Increased Customer Satisfaction and Loyalty: By focusing on the customer's

needs, problem-solving sellers build stronger relationships, leading to higher
customer satisfaction and repeat business.
● Improved Sales Effectiveness: By understanding customer needs and tailoring
presentations accordingly, salespeople can close deals more efficiently and
effectively.
● Stronger Brand Reputation: A customer-centric approach fosters brand trust
and positive word-of-mouth recommendations, leading to a stronger brand
reputation in the marketplace.

In today's competitive landscape, the problem-solving approach to personal selling

stands out. By prioritizing customer needs and building trust through collaboration,
salespeople can achieve long-term success and contribute significantly to a company's
growth.

What is Maslow’s hierarchy of needs?

The hierarchy was originally conceived by American psychologist Abraham Maslow in 1943.
Maslow had a humanistic approach to psychology, and his work put focus on the whole person
instead of individual psychological symptoms. His hierarchy of needs describes several levels of
the the human experience, with examples of how each need can be fulfilled. The corresponding
theory poses each level must be sufficiently met before someone is prepared to tackle the next
level.

“Human needs arrange themselves in hierarchies of pre-potency,” Maslow wrote in the 1943
paper “A Theory of Human Needs,” which first described the model. “That is to say, the
appearance of one need usually rests on the prior satisfaction of another, more pre-potent need.
Man is a perpetually wanting animal. Also no need or drive can be treated as if it were isolated
or discrete; every drive is related to the state of satisfaction or dissatisfaction of other drives.”

Level 1: Physiological needs

According to Maslow, the most essential human needs are the ones that keep us alive, like
food, water, shelter and air. Without this basic level of survival, a person can’t be expected to do
much in the way of higher thinking or achievement.

“A person who is lacking food, safety, love, and esteem would most probably hunger for food
more strongly than for anything else,” Maslow explained in his paper. Everything else, he
posited, has to come after.

Level 2: Safety needs

With basic needs fulfilled, the next level of needs moves to safety. These are things like financial
security, freedom from fear, stable health and anything that can lend our day-to-day lives a level
of predictability and security.

Maslow argued that it’s this level of safety-seeking that leads humans to prize systems that
bring order to their existence, perhaps in the form of law or religion. Some challenges to this
level, he suggested, could be “wild animals, extremes of temperature, criminals, assault and
murder, (and) tyranny.”

Level 3: Needs of belonging

Once basic survival and a modicum of security are established, human needs change a little bit.
The third level of the hierarchy includes concepts like friendship, community, love, shared
experiences and anything that gives humans a sense of belonging among themselves.

ADVERTISING

In this model, Maslow assumed, with the fulfillment of one level, humans will generally develop
a longing to fulfill the next.

“Now the person will feel keenly, as never before, the absence of friends, or a sweetheart, or a
wife, or children,” Maslow wrote. “He will hunger for affectionate relations with people in general,
namely, for a place in his group, and he will strive with great intensity to achieve this goal. He
will want to attain such a place more than anything else in the world and may even forget that
once, when he was hungry, he sneered at love.”
Level 4: Esteem needs

The top of Maslow’s Hierarchy — the ultimate condition of human opportunity — has to do with
self-actualization. But first, humans must fulfill needs of esteem. Esteem, in this sense, refers to
a person’s sense of self and their sense of self in relation to others. This level includes things
like dignity, personal achievement and maybe even a sense of prestige in a certain area.

“Satisfaction of the self-esteem need leads to feelings of self-confidence, worth, strength,

capability and adequacy of being useful and necessary in the world,” Maslow wrote.

Level 5: Self-actualization needs

Finally, once a person has all they need to survive, function, and understand their position in the
world and their community, they can enter the final portion of the hierarchy. Self-actualization
can mean many things, but many of the examples center around a desire to explore, create or
expand ones skills. Concepts like beauty, aesthetics and discovery translate into real-world
examples like art, learning a new language, refining one’s talents and becoming the best one
can be.

“A musician must make music, an artist must paint, a poet must write, if he is to be ultimately
happy,” Maslow wrote. “What a man can be, he must be. This need we may call
self-actualization.” (Despite the pronouns, one assumes the process of self-actualization is also
applicable to humans who are not men.)

Appearance and variations

The hierarchy of needs is traditionally represented as a pyramid. Over time, other thinkers have
tweaked and re-visualized Maslow’s hierarchy in different ways; expounding on or splitting the
levels, or proposing models where needs are differently ordered. The general idea remains the
same, however: Humans have different sets of needs that rely upon each other, and one must
have basic needs fulfilled before they can reach their potential.

Ethical Issues in Personal Selling

The goal of sales is to create customer loyalty and repeat purchases. Developing the
relationship with the customer is best done through honesty and integrity. Sales should
always be conducted with a long-term goal of developing a lifetime customer and not
just one sale.

However, with sales goals as the driving force behind the sales activities, the sales force
can be pressured into practices that might be counter to building customer loyalty.
Without proper regulation and a code of ethics, sales efforts can run afoul of ethical
rules. Good sales managers seek to have control features built in to prevent the
temptation to have a climate of dishonesty.

Ethical issues that can arise within the sales function of a company include dishonest
claims about a product, slanderous comments about the competition, padding of
company expense accounts and/or misuse of the expense account, artificially inflating
sales data to meet goals and bonuses, and bribes and kickbacks.

Sales professionals are typically self-starters who are out in the field working with their
customers. In a sales role, companies provide the sales professionals expense
accounts and credit cards as a way to work with and build relationships with clients.
Without close supervision and company policies and guidelines, the sales professional
can be tempted to participate in unethical practices. If a code of conduct is not present,
it is often hard to resist the temptations. Some of the most common practices and
temptations include misuse of the company credit card, inflating sales to reach goals,
and receiving kickbacks.

Misuse of Company Credit Cards or Expense Accounts

Misuse of company credit cards and expense accounts can happen with any employee,
but given the solitary nature of the sales professional, it is typically prone to happen
more often with them. Because the work of the sales professional is fairly independent
from the rest of the organization, it can create situations where there isn’t enough
accountability. Misuse can happen through double billing, padding the expense account,
or overcharging for expensed items.

To handle issues of expense misuse, it is best to have policies and procedures in place
along with a record of accounting for expenses and providing receipts for all expensed
items.

Inflating Sales Data

Because sales professionals are often given sales targets and expectations to meet the
targets, they are at risk for finding methods of inflating their sales numbers to meet the
targets. If the sales professional gets behind or feels pressure to meet goals, it can be
appealing to find methods of showing goal achievement. The method of inflating sales
can also be termed channel stuffing. This practice happens when a company forces
more products through the distribution channel than the channel is actually capable of
selling.
When the sales organization calculates the sales targets based on shipments of
products, the method of channel stuffing helps to meet the targets in the short term.
However, long-term sales targets are adversely affected, especially if the channel
partners return the products.

An example of how this might happen can be explained through a company that sells
over-the-counter medicines. If it has products with an expiration date in a few months, it
may ship all of the products with the near-term expiration date. When the products don’t
sell within the expiration time frame, the products are shipped back for a return. The
sales in the short term where high, and the targets were met. However, in the long-term,
the company is faced with a large shipment of returned product.

In 2016, in an effort to meet sales goals and targets, Wells Fargo employees created
millions of fraudulent savings and checking accounts for clients without their consent.
Regulatory agencies such as the Consumer Financial Protection Bureau (CFPB)
penalized the company and fined it $185 million for the illegal activity.11

Accepting Kickbacks

Another unethical practice is when sales professionals accept kickbacks. There are
many forms of kickbacks. Companies that deal internationally are often at the biggest
risk for kickbacks, as it is common practice in some countries. Sales professionals that
have long-term relationships can be tempted to take advantage of the situation,
particularly if both sides profit from the scheme. There are many types of kickback
schemes. Primarily a kickback scheme involves two people who work together to
change the pricing structure, and in turn they both generally pocket some profit from the
sale. Under the 1977 Foreign Corrupt Practices Act (FCPA), it is unlawful to pay or
promise to pay another person for the purpose of retaining their business.

Ethical Issues in Sales Promotions

When it comes to sales promotions, many ethical issues can arise. One of the most
well-known issues with sales promotion happened with a popular McDonald’s game
(see Figure 15.6). For years, McDonald’s ran its Monopoly game as a method to
increase the consumer purchase of meals along with Monopoly game pieces that could
net customers winnings from the fast-food giant. Not only was the game popular with
customers, but it did exactly what the sales promotion was supposed to do: it increased
sales. Unfortunately, the head of security for the company that ran the promotion and
printed the game pieces took out all the winning game pieces in a scam worth $24
million.14
Figure 15.6 McDonald’s Monopoly game was an effective consumer-oriented promotion
that resulted in a $24 million scam. (credit: “McDonald’s Monopoly 2014” by Mike
Mozart, JeepersMedia/flickr, CC BY 2.0)

Hidden Fees

One of the most common issues with ethics in sales promotion is in hidden fees that
might be tacked on to the promotion. The travel and hospitality industry can be an
example of the hidden fees often found in the fine print for the unwary customer looking
for a “deal.” An airline might have advertised prices, but upon booking, the traveler may
realize the baggage and airport fees make the price higher than other advertised rates.
This can also be a common practice with hotels and resorts. The advertised price may
look appealing, and the sales promotion may seem like a good deal, but by the time
resort fees are tacked on to the price, the promotional discount isn’t as attractive.

Ambiguous Terms and Conditions

Legal documents have long been considered tricky to maneuver. A company may
provide the terms and conditions and a link to click or simply acknowledge that you
have read through the 15,000-word document for understanding. But does anybody
really read the documents? Do consumers really understand what they are reading and
agreeing to? Most likely, the legal jargon has gone unread, and the customer is typically
unaware of what they have agreed to. However, it is in the best interest of the company
to look out for the best interests of their customers. If the end goal is long-term customer
satisfaction, all of the work of the company should be around making sure the customer
is satisfied. Providing ambiguous terms and conditions does nothing to really protect
the customer relationship.