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Objectives
• Sales responsibilities
Lecture 3: • Sources of sales prospects
Sales Preparation and • The meaning and importance of the sales cycle
• Needed preparation prior to selling
Buyer Behaviour • Individual sales interviews
• Different motivations of consumer and
organisational buyers
• Strategies for approaching consumer and
organisational buyers
• The importance of relationship management
Major Strategies Forming
Key responsibilities of salespeople the Strategic/Consultative Selling Model
• A salesperson
develops a:
– Relationship strategy
– Product strategy
– Customer strategy
– Presentation strategy
Selling Today, 14e by Gerald L Manning, Michael Ahearne and Barry L Reece
Strategic/Consultative Selling Mode Sales preparations
• Product knowledge and benefits
• Knowledge of competitors’ products and their
benefits
• Sales presentation planning
• Setting sales objectives – Understanding Sales
cycle
• Understanding buyer behaviour
• Assessing the power balance
• Determining negotiation objectives
• Concession analysis
• Proposal analysis
Selling Today, 14e by Gerald L Manning, Michael Ahearne and Barry L Reece
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Product features and customer
A negotiating scenario
benefits
Source: Adapted from Winkler, J. (1996) Bargaining for Results. Oxford: Heinemann.
Example of conditions-of-sale
Creating a contract
document
The consumer decision-making
The evaluation system
process
Source: Adapted from Blackwell, R.D., Miniard, P.W. and Engel, J.F. (2003) Consumer Behaviour. Orlando, FL: Dryden. Reprinted with permission of South-Western, a division of
Thomson Learning: www.thomsonrights.com
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Level of purchase involvement and
Consumer choice criteria
the buying situation
• Economic criteria
– include performance, reliability and price.
• Social criteria
– Include status and the need for social belonging.
• Personal criteria
– concern how the product or service relates to the
individual psychologically.
– An important issue is self-image, which is the
personal view we hold of ourselves
Dimensional model of buyer
Social class categories
behaviour
Source: Adapted from National Readership Survey, January–December 2007, with permission.
Complexity of the Organizational Three elements of organisational
Buying Process buyer behaviour
• Typical organizational purchase is larger and more • Structure:
complex than the typical consumer purchase. – ‘Who’ factor – who participates in the decision-making
• Highly trained, knowledgeable purchasing agents process and their particular roles.
make purchase decisions. • Process:
• Buying decisions involve extensive evaluations and – ‘How’ factor – the pattern of information getting, analysis,
evaluation and decision making which takes place as the
negotiations. purchasing organisation moves towards a decision.
• Complexity of organizational selling is increasing as • Content:
more customers become global businesses. – ‘What’ factor – the choice criteria used at different stages
– Global sourcing is a key factor for achieving a sustainable of the process and by different members of the decision-
competitive advantage. making unit.
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The organisational decision-making
Buying Center
process (buy phases)
• Informal, cross-department group of people
involved in a purchase decision.
• Includes:
– Users.
– Initiators.
– Influencers.
– Gatekeepers.
– Deciders.
Influences on organisational
Choice criteria
purchasing behaviour
Factors Influencing Organizational Multi-attribute Model of Product
Buying Decisions Evaluation and Choice
• Used to understand the factors individual members
of a buying center consider in:
– Evaluating products.
– Making choices.
• Used in complex decisions involving several
vendors.
• Based on the idea that people view a product as a
collection of characteristics or attributes.
Selling: Building Partnerships, 10e By Stephen Castleberry and John Tanner
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Multi-attribute Model of Product
Implications for Salespeople
Evaluation and Choice
• Buyers evaluate a product by considering how each • Information salespeople require to develop a
characteristic satisfies the firm’s needs and perhaps sales strategy.
their individual needs.
– Importance weights may differ from member to member.
– Suppliers or brands the customer is considering.
– Overall evaluation of a product can be quantified by – Product characteristics being used in the evaluation.
multiplying the sum of the performance ratings by the – Customer’s rating of each product’s performance on
importance weights. each dimension.
– Value offered can be calculated by dividing the benefits by
the cost. – Weights the customer attaches to each dimension.
– Suppliers are selected based on the minimum acceptable
performance standards of a company based on the
calculations.
Implications for Salespeople Reverse marketing
• Approaches for changing perceived value of the
product.
– Increasing the performance rating for the product.
– Decreasing the rating for a competitive product.
– Increasing or decreasing an importance weight.
– Adding a new dimension.
– Decreasing the price of a product.
