National Institute of Technology 2009 M.B.A Finance KETING MANAGEMENT - Question Paper

Q.2: B) How can sales people improve their skills in selling, negotiating & carrying on relationship marketing.
ANS:
Principles of personal selling:
Personal selling is an ancient art. It has spawned a large literature and many principles. Effective sales people have more than instinct; they are trained in methods of analysis and customers management. Today’s companies spend large amounts of money every year to train sales people in the art of selling.
Most sales training programs agree on the major steps involved in and effective sales process.
The 6 steps are as follows:
1. Prospecting and qualifying: the 1st step in selling is to identify and qualify prospects. More companies are taking responsibility fir finding and qualifying leads so that sales people can use their precious time doing what they can do best: selling companies can qualify leads by contacting them by mails or phone to their level of interest and financial capacity.
2. Pre approach: the sales person needs to learn as much as possible about the prospect company (what needs, who is involved in the purchase decision) and its buyers (personal characteristics and buying styles). The sales person should set call objectives to qualify the prospect, gather info make and immediate sale
3. Presentation and demonstration: the sales person now tells the product story to the buyer subsequent the AIDA formula gaining attention, holding interest, arousing desire and obtaining action the sales person uses a features, advantages, benefits and value approach
4. Overcoming objections: customers typically pose objections during the presentation or when asked for the order. Psychological resistance include resistance includes resistance to interference, performance for established supply sources or brands, apathy reluctance to giving up something, unpleasant associations created by the sales rep, predetermined ideas, dislike of making decisions and neurotic attitude towards money.
5. Closing: now the sales person attempts to close the sale. Sales person attempts to know how to recognize closing signs from the buyer, including physical actions, statements or comments and ques.. There are several closing techniques.
6. Follow up and maintenance: follow-up and maintenance are necessary if the sales person wants to ensure customer satisfaction and repeat business. Immediately after closing the sales person should cement any necessary details on delivery time, purchase terms, and other matters that are important to the customer.
Negotiation
Marketing is concerned with exchange activities and the manner in which the terms of exchange are established. In routinized exchange, the terms are established by administrated programs of pricing and distribution. In negotiated exchange, price and other terms are set via bargaining behavior, in which 2 or more parties’ negotiate long-term binding agreements. Although price is the most frequently negotiated issue, other problems include contract completion time; quality of goods and services offered; purchase volume; responsibility for financing, risk taking, promotion, and title; and product safety.

Earning:   Approval pending.