The Selling Process: 8 Steps, Types, Role & Importance of Personal Selling

 Personal Selling

In contrast to advertising and publicity, which primarily use impersonal methods of communication, personal selling relies on direct, personal communication to influence target customers. It is a distinctive promotional method that involves an oral presentation and face-to-face interaction with existing and potential customers for the purpose of making a sale.

Personal selling is one of the oldest methods of business promotion. Its significant contribution to making promotional activities more effective has earned it a reputation as one of the most reliable methods of promotion. Through direct interaction, salespeople can understand customer needs, answer questions, provide detailed information, address objections, and persuade customers to purchase a product or service.

Although personal selling is generally considered the most expensive promotional method, an increasing number of firms continue to use it because of its effectiveness and flexibility. Many organizations recognize that, particularly in competitive markets, they may not be able to operate successfully without an effective personal selling effort.

The increasing intensity of competition, growing sophistication of buyers, and the complexity of modern buying processes have made personal selling an increasingly indispensable element of the promotional mix.

Role of Personal Selling

Personal selling, as the name implies, involves individual-to-individual selling. It has the distinctive advantage of flexibility, as the salesperson can tailor the sales presentation according to the specific needs, preferences, and requirements of the buyer. Another unique advantage of personal selling is its two-way communication and human interaction, which enables the salesperson to receive immediate feedback from the customer.

These two advantages—flexibility and immediate feedback—make personal selling one of the most result-oriented methods of promotion. Generally, the nature of the products marketed and the distribution system adopted by a firm determine the role and importance of personal selling.

Role in Industrial Goods

Personal selling is used extensively in the marketing of industrial goods, where salespeople perform a wide range of activities beyond simply generating sales. These activities may include:

• Assisting customers in designing product specifications.
• Helping with product installation and commissioning.
• Solving technical problems and providing after-sales service.
• Providing guidance on the proper use and maintenance of products.
• Helping customers achieve the optimal utilization of the product.

Role in Consumer Goods

In the case of consumer goods, the role of personal selling is generally more restricted to the dealer or retail level. The major tasks performed by salespeople include:

• Obtaining periodic orders from dealers.
• Ensuring the timely and adequate supply of products.
• Advising dealers on effective product display and merchandising.
• Maintaining desired levels of inventory and encouraging stock movement.
• Strengthening relationships between the manufacturer and dealers.

Role Based on the Distribution System

The importance of personal selling also depends on the distribution system adopted by a firm. A company that uses a door-to-door selling approach through its sales force generally gives personal selling a much more prominent role than a company that distributes its products through large stockists, distributors, or sole-selling agents.

Thus, although the role of personal selling varies according to the strategies and distribution systems followed by different companies, the nature of the selling function requires salespeople to perform several important tasks.

Major Tasks of Personal Selling

1. Sales Generation

The primary task of personal selling is to generate sales by identifying prospects, presenting products, persuading customers, handling objections, and closing sales.

2. Feedback and Market Information Collection

Salespeople act as an important link between the company and the market. They collect customer feedback, competitor information, changing market trends, and information about customer needs, and communicate these insights to the organization.

3. Provision of Customer Service

Personal selling also involves providing various forms of customer service, including product delivery, warranty administration, and ensuring the timely availability of repair services and spare parts.

4. Sales Support Activities

Salespeople perform a variety of supporting activities, such as:

• Monitoring the distribution function.
• Collecting outstanding credit and payments.
• Improving manufacturer-dealer relationships.
• Assisting in the implementation of promotional programmes.
• Supporting effective product distribution and stock movement.

Overall, personal selling serves not only as a means of generating sales but also as an important communication, customer-service, market-information, and relationship-building function within an organization.

Types of Selling Jobs

From the foregoing discussion, it is clear that although the primary purpose of the sales function is to generate sales, selling situations differ considerably due to the interaction of various factors. These factors include the nature of the goods sold, the type of distribution system used, the nature of demand, and the sales strategy followed by the firm.

Different selling situations require salespeople to possess different skills, abilities, and personal traits appropriate to the nature of their jobs. To highlight these differences, Robert N. McCurry, in The Mystique of Super-Salesmanship, classified individual sales positions into seven categories based on the degree of creativity required. These categories are described below:

1. Merchandise Deliveries

The salesperson's primary responsibility is to deliver products, usually against routine orders. Such salespeople are commonly referred to as sales and delivery personnel or delivery salespeople. Their role primarily involves ensuring the timely and accurate delivery of goods to customers.

2. Inside Order-Taker

An inside order-taker works within a retail store. The primary responsibility is to respond to customers' requests and, where necessary, suggest suitable products that meet their needs and preferences. Such salespeople are commonly known as retail salespersons.

3. Outside Order-Taker

Outside order-takers are salespeople who primarily take orders from resellers, such as wholesalers and retailers. They generally focus on maintaining relationships and facilitating repeat orders rather than using aggressive or high-pressure selling techniques.

4. Missionary Salesperson

A missionary salesperson primarily works to educate customers, provide product information, create goodwill, and generate primary demand for a product. Their objective is often to influence customers or intermediaries in favor of the product rather than directly obtain orders. Strictly speaking, missionary salespeople are generally not authorized to take orders.

5. Sales Engineer

A sales engineer acts as a technical consultant to the customer. In addition to selling, the salesperson helps customers understand technical requirements and may assist them in designing products, systems, or production processes according to their specific needs. Such salespeople are also commonly known as technical salespersons.

6. Tangible Product Seller

A tangible product seller is responsible for selling physical products such as furniture, household appliances, automobiles, and other consumer or industrial goods. The job requires strong persuasion, communication, product knowledge, and customer-handling skills to convince customers of the value and suitability of the product.

7. Intangible Product Seller

An intangible product seller deals with services or products whose benefits cannot be immediately demonstrated physically. Examples include advertising services, insurance, education, consultancy, and other professional services.

Since the benefits of such offerings may be difficult to demonstrate or evaluate before purchase, this type of selling generally requires a high degree of creativity, communication ability, persuasion, and trust-building skills. Among the seven categories, selling intangible products may require one of the highest levels of creativity from the salesperson.

Quick Summary:

The seven types of selling jobs differ mainly in terms of the nature of the product, customer interaction, level of technical knowledge, selling approach, and degree of creativity required. Understanding these differences helps organizations select, train, and assign salespeople according to the specific requirements of their selling situations.

The Selling Process

The selling process consists of a series of systematic steps through which a salesperson identifies potential customers, understands their needs, presents appropriate solutions, handles objections, closes the sale, and maintains the relationship after the sale. The major steps in the selling process are described below.

Step 1: Preparation

Before beginning the selling activity, a salesperson should invest sufficient time and effort in preparation. The salesperson should have thorough knowledge of:

• The products or services being offered.
• The customers, including their types, buying motives, needs, and buying processes.
• The competitors and their products or services.
• The company's philosophy, policies, objectives, and product range.

In short, the salesperson should be well equipped with the fundamentals of selling before approaching potential customers.

Step 2: Prospecting

Prospecting involves identifying and preparing a list of prospective customers. Prospects can be located through various sources and methods, including:

1. Identifying opportunities for increased purchases among existing customers.
2. Recommendations and referrals from existing customers.
3. Winning back lost customers.
4. Attracting customers of competitors.
5. Enquiries or requests for information generated through advertisements.
6. Newspaper announcements.
7. Public records.
8. Directories such as telephone directories and trade-association directories.
9. Other salespeople.
10. References from friends, neighbours, and business associates.
11. Cold canvassing, such as approaching potential customers door-to-door.

Once prospects have been identified, they should be broadly qualified on the basis of three factors:

• Whether they need or want the product and how strong that need is.
• Whether they possess adequate purchasing power.
• Whether they have the authority or authorization to make the purchase and spend the required money.

This process of separating genuine prospects from mere suspects is known as prospect qualification.

The ability to prospect effectively is one of the most important skills of a successful salesperson. A good salesperson continuously reviews prospect lists, removes prospects who have already been fully approached or are no longer suitable, updates existing information, and constantly searches for new prospects.

Step 3: Pre-Approach

After identifying and qualifying prospects, the salesperson should gather detailed information about each prospect. This may include information about:

• Products currently being used.
• Scale of the prospect's operations.
• Product range.
• Purchase size and frequency.
• Purchasing budget.
• Buying procedures and decision-making processes.

The objective is to develop a strong customer orientation and understand the prospect's specific needs and circumstances.

Sources of information may include:

• Company annual reports.
• Other salespeople.
• Suppliers serving the prospect.
• Census reports and industry directories.
• Professional journals.
• Newspapers.
• Market intelligence and other reliable business sources.

The more detailed and accurate the information available, the better the salesperson can prioritize prospects according to their importance and potential value to the company.

Good salespeople may classify prospects into A, B, and C categories according to the urgency and importance of attention required.

Step 4: Approach

The principle that "first impressions count" makes the approach an important stage of the selling process. The approach should therefore be carefully planned.

The approach has two major objectives:

1. Meeting the Customer with a Positive Mindset

The salesperson should approach the customer confidently and professionally. The use of referrals from reliable persons known to the prospect, prior appointments, and suitable door openers can help establish a positive beginning.

2. Making a Positive Impact

The salesperson should be prepared with the key benefits to be emphasized during the interaction. Relevant product samples, brochures, literature, demonstrations, or other supporting materials should also be carried when appropriate.

A well-planned approach creates a favourable first impression and prepares the prospect for the sales presentation.

Step 5: Sales Presentation

Using the information collected during the pre-approach stage, the salesperson should attempt to match the product or service with the customer's specific needs and problems.

The sales presentation should generally follow the AIDA approach:

• A – Attention
• I – Interest
• D – Desire
• A – Action

The salesperson can gain attention by presenting a key benefit, problem-solving idea, or unique selling proposition. At the same time, careful listening allows the salesperson to understand the main concerns expressed by the prospect.

The presentation should be straightforward and demonstrate that the salesperson understands the customer's problem and has approached them with an appropriate solution.

To convince the prospect, the salesperson may use:

• Product demonstrations.
• Exhibits and models.
• Samples.
• Examples of successful product applications.
• Customer testimonials.
• Relevant facts and evidence.

The overall objective is to build credibility and confidence in the company, its products, and its ability to provide specialized services and customer support.

Types of Sales Presentations

Sales presentations can vary in their degree of flexibility. At one extreme is the "canned" presentation, which is prepared in advance and follows a predetermined structure. At the other extreme is a completely flexible presentation, where the salesperson has considerable freedom to adapt the presentation according to the customer and situation.

Both approaches, as well as combinations of the two, may be appropriate depending on the selling situation.

Since selling is essentially a showmanship and communication function, an effective presentation should encourage active participation by the prospect. This may be achieved by:

• Jointly reviewing the customer's problem.
• Asking relevant questions.
• Encouraging the prospect to evaluate alternatives.
• Helping the prospect visualize the benefits of owning or using the product.

Step 6: Handling Objections

During the later stages of the sales presentation, prospects may express doubts, concerns, or objections. These may relate to:

• Price.
• The need for more time to make a decision.
• Satisfaction with an existing product or supplier.
• Product quality.
• Claims about product benefits.
• Other perceived risks or uncertainties.

Objections should not be viewed negatively. Instead, they should be welcomed and addressed confidently and tactfully. The prospect needs to be convinced that the product or service can genuinely satisfy their needs.

An experienced salesperson attempts to anticipate possible objections by understanding the prospect's concerns and reactions.

Golden Rules for Handling Objections

Two important principles should be followed:

1. Welcome the objection and show respect for the prospect.
2. Do not argue with the prospect.

Even when an objection appears weak or insignificant, it should be handled patiently and professionally. If necessary, the salesperson should encourage the prospect to explain the underlying concern in greater detail.

Throughout the discussion, the salesperson should maintain courtesy and reinforce the product benefits that the prospect has already accepted. The objective is to remove uncertainty and guide the prospect toward a favourable purchase decision.

Handling objections also helps salespeople develop and sharpen their selling skills and customer-understanding abilities.

Step 7: Closing the Sale

Closing refers to the stage of the selling process in which the salesperson asks the prospect to purchase the product or service.

There is generally a critical point during a sales presentation when the salesperson should ask for the order. Before reaching this point, the salesperson may:

• Reduce the number of available alternatives.
• Summarize the major benefits of purchasing.
• Explain the consequences of not addressing the customer's problem.
• Reinforce the value of making the purchase at the appropriate time.
• Use an appropriate appeal encouraging the prospect to buy now, when justified.

An effective salesperson should be able to recognize buying signals and respond promptly.

Common Buying Signals

Some buying signals may include:

• Changing one's sitting or standing position and moving closer to the product.
• Reading product instructions or specifications.
• Examining testimonials or supporting information.
• Expressing concern about affordability.
• Asking for another product demonstration.
• Checking warranty details.
• Asking questions about warranty terms or after-sales service.

Such signals may indicate that the prospect is becoming ready to purchase. The salesperson should recognize the appropriate moment and move toward closing the sale.

Step 8: Post-Sale Follow-Up

The selling process does not end when the order is written. Post-sale follow-up is essential for maintaining customer satisfaction and strengthening the buyer-seller relationship.

The salesperson should reassure the customer about the benefits of the product and ensure that it is being used correctly. Where necessary, the salesperson may explain again how to:

• Use the product.
• Handle the product properly.
• Maintain the product.
• Store the product when it is not in use.

Effective follow-up creates favourable feelings toward the salesperson and the company and helps develop long-term customer relationships.

Post-sale follow-up also:

• Reinforces customer confidence.
• Helps keep competitors from taking over the customer.
• Encourages repeat purchases.
• Generates favourable word-of-mouth publicity.
• Provides valuable customer and market feedback.

Thus, follow-up is both a customer-service activity and an important source of market intelligence.

Flexibility in the Selling Process

Although the eight steps described above provide a useful framework for the selling process, they need not always be followed in exactly the same sequence or with the same level of detail.

The applicability of the steps may vary depending on several factors:

1. Selling Situation

The nature of the selling situation may make some steps unnecessary. For example, in the case of an inside order-taker or retail salesperson, the customer may enter the store with the intention of purchasing a product. Therefore, the first three steps—preparation, prospecting, and pre-approach—may not be directly applicable.

2. Expertise of the Salesperson

An experienced salesperson may already possess considerable knowledge about the product, customer, and market. As a result, some information-gathering activities may be assumed or performed informally.

3. Seller's Market

When demand is substantially higher than supply and customers are already waiting to purchase the product, the selling process may be considerably shorter. In such situations, extensive prospecting and persuasion may not be necessary.

Therefore, the eight steps should be viewed as a general framework rather than a rigid sequence. Effective salespeople adapt their approach according to the customer, product, market conditions, and selling situation.

Findings of Robertson and Chase

Research by Robertson and Chase identified several factors associated with the likelihood of a successful sale:

1. The more closely the physical, social, and personal characteristics of the customer and salesperson match, the greater the likelihood of a sale.
2. The more believable and trustworthy the salesperson is perceived to be by the customer, the greater the likelihood of a sale.
3. The more persuadable the customer is, the greater the likelihood of making a sale.
4. The more effectively a salesperson can help prospective buyers view themselves favourably, the greater the likelihood of a successful sale.

These findings emphasize the importance of trust, interpersonal compatibility, persuasion, customer understanding, and positive self-perception in successful personal selling.

Quick Summary:

The selling process is a systematic but flexible activity that begins with preparation and prospecting and continues through customer approach, sales presentation, objection handling, closing, and post-sale follow-up. A successful salesperson does not merely focus on making a sale but also seeks to understand customer needs, create value, build trust, provide service, and develop long-term relationships.