SALES AND DISTRIBUTION MANAGEMENT Unit II

- Developed and Aggregated by Dr. Himanshu Mahobia

Process of personal selling & Sales Techniques:

Personal Selling Skills, Need and Problem Identification, the Presentation and Demonstration, Dealing
with Objections, Negotiation, Closing the Sale, Follow-Up, Key Account Management, Relationship
Marketing.

Personal Selling Skills

Salesmanship is art and is learnt through practice. No one in this world has the ability to teach sales
except the practical exposure and experience. The following set of skills need to be learnt by a person
to be able to qualify as good salesperson:
• Communication Skills. ...
• Active Listening Skills. ...
• Persuasive Skills. ...
• Collaboration Skills. ...
• Self-Motivating Skills. ...
• Problem Solving Skills. ...
• Negotiation Skills.

1. Communication Skills
If you’re a sales person, this skill might seem self-evident, but too many sales reps don’t take the
time to develop their communication skills, choosing instead to rely on a script to get them through
conversation. While a script can be a useful part of the sales call, the ability to veer off script and
communicate with the customer effectively is imperative. Every customer is different; the same
script won’t work on everyone and there are times when you may need to bring out your
communication skills to close a deal.

2. Active Listening Skills

An important part of effective communication is active listening. That means allowing the customer
to express their needs and concerns and then taking steps to address those concerns in your own
response. When you employ active listening, you’re much better equipped to tailor your pitch in a
way that will appeal to the customer. Listening is also a great way to build trust, and trust is essential
for closing deals.
3. Persuasive Skills
In order to truly excel in this industry, you need to have great persuasive selling skills. Customers
are bombarded with advertisements and pitches on a regular basis; you need to know how to
convince them that your product or service is worthy of investment. Being good at persuasion can
 mean a variety of things, including being able to turn negatives into positives and being sincere
about what you’re selling.
4. Collaboration Skills
We have a tendency to think of a sales person as a lone wolf–someone who works independently
to close deals. However, being able to collaborate with others and learn from your fellow sales reps
can be an invaluable asset as you develop your career.

There are a variety of ways in which collaboration can aid your growth; another sales person might
have dealt with a situation you’ve yet to encounter, or they may be able to share alternative
strategies with you that can improve your game. Learning to collaborate with your coworkers can
help everyone.

5. Self-Motivating Skills
This last strategy involves more than just the sales team—it also involves management. All too
frequently, there can be a disconnect between upper management and sales reps, with management
not fully appreciating the struggles that sales reps are encountering on a day-to-day basis. If you
seriously want to challenge your sales team, you may need to solicit feedback on what they believe
is preventing them from doing their best work. Their answers may surprise you, while also giving
you a real opportunity to make innovating and advantageous changes.

6. Problem Solving Skills

A sales person will encounter hundreds, if not thousands, of objections during the course of their
career. There will be the routine objections that you become used to, alongside more unique reasons
why customers are not willing to invest.
While you’ll never be able to completely eliminate objection, there are ways to minimize the
amount of rejection you face throughout the day. Problem solving skills are selling skills when it
comes to learning to meet apprehension head on and find creative solutions.

7. Negotiation Skills

With an increasing amount of competitors vying for customer attention, negotiation has become an
expected part of sales. Customers anticipate that they will be able to negotiate with their sales
person, which means that sales reps need to come to the negotiation table ready to negotiate.
Great negotiation skills don’t entail conceding unnecessarily; the skilled negotiator knows how to
find solutions that work for both parties, resulting in a win-win scenario that keeps everyone
satisfied.

Personal Selling process

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. You can also use the screening process to determine buyers’ current
needs. For instance, if you’re selling insurance to individuals over age 65, then you probably won't
target someone in their 30s
2. Preparation or pre-approach
Before making initial contact with your prospects, you want to prepare. It's important to have all your
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. Example: If a customer says they won't be able to make an
investment until next month, you could offer them additional savings or promotions if they follow
through with their purchase. While in the handling objections step of the selling process, you might also
reiterate the cost or loss of value if the prospect decides to completely forgo the purchase.
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. You want to make sure your buyer understands the terms and restrictions
included in the contract, such as any refunds, guaranteed customer satisfaction clauses or ongoing
purchases or billing for monthly memberships. 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. The closing techniques which may be used are as follows:

Assumptive Close
This is a true power move that requires confidence in yourself and your product. In the assumptive sales
close, you move forward under the assumption that the prospect wants to buy and that the deal is pretty
much done. Instead of asking them if they’re ready to buy, you’ll ask how many products they would
like or when the solution could be implemented. The key here is to be assertive without being
aggressive, which can ruin the rapport and scare the prospect off. It’s also important to make sure the
assumptive close happens right after you’ve driven home the benefits of your offer so it’s fresh in the
prospect’s mind.

Now or never close

This is a classic. To entice into buying those tough customers of yours who are still hesitating, offer
them a special benefit (discount, gift, bonus, attractive quotes etc.).
The efficacy of this technique is based on the following psychological mechanism: people are often
afraid to commit, even if they want what you offer them, no matter what it is.
So, simplify the process of taking a decision for them (to your advantage). E.g., “If you sign up today,
I can offer 25% discount.”
Choice/Alternative Close
A closing technique in which a salesperson presents two alternatives in an attempt to get a commitment
from the buyer to one, (eg. "The red or the black?", "Cash or card?"). This technique is based on what
is attracting the consumer. It may be color or cash discount or credit offerings or brand or style. The
salesperson must it customers where the attention can be drawn and capitalized upon.

Puppy Dog Close

This sales closing technique comes from the idea that if a pet store offered to let you “test a puppy out”
and take it home for a few days, you would fall in love with it and never return it. In a puppy dog close,
offer a free trial of your product with no strings attached. The hope is that the prospect finds your
product so indispensable that after their little test drive, they can’t bear to part with it.
Scale Close
This is also referred to as the gauge close. You take the prospect’s temperature by simply asking them
point-blank how interested they are in your product. (Ex: “On a scale of one to 10, with one being ‘Let’s
end this conversation now’ and 10 being ‘Let’s get this solution implemented on Monday,’ how likely
are you to move forward with purchasing?”) The scale close does two things: It lets you know if you’ve
been effectively communicating the value of your product to encourage prospects, and also gives you
an opportunity to address any objections they might not have shared with you.

“I would say that curiosity is key. You need to always be asking questions,” said Francois Carle, a
strategic account executive at Schneider Electric who has worked in sales for more than 20 years. “You
need to be curious about what they’re trying to achieve and drill down into what their challenges are.
The risk of a conversation going nowhere is strong if you aren’t listening.”
Scarcity Close
Also known as the now-or-never close, the scarcity sales close leverages good old-fashioned FOMO
(fear of missing out) to get a prospect to buy. You sweeten the deal with a discount or an added benefit
to the prospect, but only if they act now and make a purchase. This mainly works when the prospect is
sincerely interested in buying, but needs a small nudge to get to yes.
Takeaway Close
This technique capitalises on people’s desire for things that they can’t have, also known as reverse
psychology. Note that your solution “might not be a good fit” for them or that their company “may not
qualify for your solution like other companies have.” The takeaway close is effective because you’re
doing the opposite of what a salesperson typically does, which is sell, so the prospect doesn’t expect it.
Similar to the scarcity close, this tactic only works if the prospect has already established interest in
your product but hasn’t pulled the trigger on buying.
Summary Close
Sales cycles can be long, especially for B2B selling. A prospect who’s juggling conversations with
different vendors about different products might not remember all the great things your solution has to
offer. In a summary sales close, you review the features of the product and how it will help the potential
client meet their needs. It gives the prospect one more time to really envision what your product might
accomplish for them before making a decision.
Empathy close
Emotions possess immense power. To reel your customers in, you’re more than welcome to use
emotions and empathy, leaving reason in the backseat. It’s recommended to relate your product’s
benefits and the aspects of customers’ problems. Showing them that you care about their pain will put
you on the right track.
Put yourself in their shoes and genuinely say how you would feel and what you would like to do.
Imagine you’re a doctor: instead of selling a product, focus on prescribing a solution to a problem, a
pill to pain, as it were.

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.

KEY ACCOUNT MANAGEMENT

Key account management (KAM) is the process of planning and managing a mutually beneficial
partnership between an organization and its most important customers. Key accounts are significant to
an organization's sustainable, long-term growth and require a substantial investment of both time and
resources. It is is the process of managing and growing a company’s most important B2B customers
and large accounts in a systematic way to maximize value for both organizations. This involves strategic
efforts to deeply understand client needs, forge long-term loyalty beyond transactions, and strengthen
relationships over time.
Key Account Management is all about unlocking the potential of your best 20% of customers, driving
80% of your revenue.
So, what does KAM do?
• It sets up a clear program to look into, plan for, and manage these key accounts strategically.
• It helps put together strategies that work by getting everyone involved, both internal and
external stakeholders.
• It’s great for strengthening your relationships with the most important people, helping you find
more opportunities to upsell and cross-sell.
 • It helps you boost win rates for expansion opportunities in your key accounts and make better
revenue predictions.
In practice, it’s smart for companies to have different plans for managing their key accounts based on
how much money they bring in. So, you’d prioritize your top 20-30% of key accounts over your mid-
tier ones, 50-60%, and your bottom 10-30%.
An exciting new trend is identifying “greenfield” key accounts even before they become customers. By
mapping their acquisition journey and growth potential, you can align your sales and marketing to
a “land and expand” approach. This focuses on getting a foot in the door with a small deal at first, and
then growing the account over time.
In the past three years, “land and expand” has emerged as the go-to model for making the most of your
key relationships over the long term.
The key account for McCain Foods is McDonalds to whom it has been a key supplier. Similarly, the
key account for Indus Towers has been Bharti Airtel and Vodafone Ideas for its towers.

Relationship Marketing.
Relationship Marketing is a strategy of Customer Relationship Management (CRM) that emphasizes
customer retention, satisfaction, and lifetime customer value. Its purpose is to market to current
customers versus new customer acquisition through sales and advertising.
A good relationship marketing strategy is rooted in building customer loyalty and lasting, long-term
engagement with your customer base. Benefits include increased positive word-of-mouth, repeat
business, and a willingness on the customer's part to provide valuable feedback to the company and
their peers.
Marigold, the messaging and loyalty platform that helps customer relationships take root and grow,
released its new Relationship Marketing Trends: Brand Rankings Report, a consumer research
study evaluating what drives customer relationships and purchases for 200 global brands. The report
ranks brands based on personalization, omnichannel experience, trust, and loyalty.
Building deep customer relationships is more crucial than ever in a time of changing consumer
expectations. The Relationship Marketing Trends: Brand Rankings Report provides actionable insights
to help marketers shift from transactional tactics to long-term loyalty strategies and is a vital resource
for understanding the current state of relationship marketing.
“In today’s competitive marketplace, gaining and retaining loyal customers is increasingly
challenging,” said Micki Howl, CRO of Marigold. “Our new Relationship Marketing Trends: Brand
Rankings Report underscores what we share with our clients daily—that brand loyalty is earned through
personalized interactions, seamless omnichannel experiences, and a genuine commitment to
understanding customers. This report provides valuable insights into the ‘secret sauce’ of effective
marketing, offering strategies to help marketers achieve more with less by targeting the right audience
with the right message at the right time.”
The extensive findings identify a number of critical takeaways, including:
• Personalization is essential but often lacking: Despite its importance, many brands still fall
short in personalization, with 40% of consumers frustrated by irrelevant content and 33%
feeling their needs are unmet by brand messages. Brands must leverage customer data
effectively to deliver timely and relevant content.
• Zero-party data (ZPD) is the key to increasing personalization: Retailers, in particular, are
zeroing in on zero-party data (ZPD) strategies to reward customers for engaging in surveys and
polls to deliver highly personalized offers and experiences.
• Omnichannel experiences engage loyal customers: Brands must provide consistent and
seamless experiences across all channels. 24% of consumers say they prioritize a consistent
digital experience across channels over price when making purchase decisions.
• Trust is fundamental for relationship-building: Trust is essential for collecting personal
data and fostering brand loyalty. Over half of consumers (57%) feel comfortable sharing data
with their favorite brands, and 49% consider brand reputation more important than price when
purchasing.
• Loyalty programs drive long-term engagement: Effective loyalty programs differentiate
brands and foster customer retention. With 68% of consumers willing to pay more for brands
they are loyal to, investing in these programs is crucial for long-term success.