Sales Process

Selling skills, tactics, and strategies, alongside the product and sales organization, are crucial for success. The selling process involves several steps, while activities like preparation, collecting payments, gathering information, and travel are considered non-selling activities.

The selling process begins with 'opening the sales call,' where a strong first impression is vital for rapport building. This is followed by the 'sales proposition,' where the salesperson understands the buyer's needs and probes for their thoughts on quality, price, and competitor offerings. The 'presentation' stage supplements the sales proposal, establishing the product's value and unique selling points, and can range from simple discussions to structured audio-visuals. Next is 'motivating the customer,' which involves managing objections and creating a sense of urgency. Finally, 'closing the sale' is the pinnacle, requiring the salesperson to finalize the deal and obtain buyer commitment, with timing being critical.

The detailed selling process includes 'prospecting and qualifying' to identify potential buyers, 'pre-approach' to understand the prospect's needs and tailor the sales plan, and 'approach' for the initial face-to-face contact. The 'presentation' increases prospect interest through demonstrations and explanations. 'Welcoming objections' allows the salesperson to address concerns and understand the prospect's mindset. 'Closing the sale' is the act of securing consent to buy, often using strategies like extra inducements or creating urgency. The final step, 'follow-up,' involves post-sale contact to ensure customer satisfaction and build lasting relationships.

An example of a B2B sales process is seen with aircraft manufacturers like Boeing and Airbus. Airlines approach them with requirements, leading to competitive bidding. Companies showcase innovations at events like the Aircraft Interiors Expo, often involving extensive sales presentations and demonstrations that can last several days, with airline teams flown to manufacturing sites.

The 'stimulus response theory' suggests buyers will purchase if the salesperson uses correct stimuli. Common stimuli include salesperson personality, product campaigns, competitor critique, price concessions, and preferential treatment. Drawbacks include neglecting buyer needs and overwhelming prospects with irrelevant information. Apple is cited as an example, using sensory experiences and elegant packaging to create a strong stimulus.

The 'product orientation theory' assumes buyers are unaware of new developments, and the salesperson's role is to educate them about the product's features and benefits. This approach emphasizes explanations over aggressive selling and is common for technology products. Limitations include complex markets, aware customers with substitutes, and increased competition. Sony's waterproof Walkman, sold in vending machines in gyms, exemplifies this by directly showcasing a key product feature to a target audience.

The 'need satisfaction theory' focuses on mutual buyer-seller satisfaction through a win-win approach. Salespeople must understand prospect needs and expectations before proposing a sale, addressing any objections. This theory promotes strong sales effectiveness and professional partnerships. Tesla's customizable cars and direct sales model exemplify this by catering to individual customer needs and enhancing the buying experience through company-owned showrooms and online customization.

This section differentiates between National and International Selling. National selling occurs within a country's boundaries, offering high data reliability, familiar political/legal systems, easier logistics, and lower risk. International selling involves global markets, facing lower data reliability, uncertain political landscapes, complex logistics, higher competition and risk, currency fluctuations, and international laws. Examples include Under Armour's varying revenues in North America versus EMEA and Asia Pacific, Amazon's growth in both domestic and international markets, and Lego's global expansion, particularly in China.

Organizational selling (B2B) involves selling to other businesses, characterized by a small number of buyers, long-term relationships, complex decision-making processes by knowledgeable professionals, extensive negotiation, higher item prices, and credit-based payment schemes. Consumer selling (B2C) targets final customers, featuring a large number of buyers, short-term relationships, simpler decision-making influenced by social circles, limited negotiation, lower item prices, and cash-and-carry payments. Examples of organizational selling include McLane, a wholesale supply chain services company, and Alibaba.com, a large e-commerce B2B platform connecting global buyers and suppliers.