Personal Selling and Consultative Selling

Description
It covers Personal and consultative selling.It highlights the importance of consultants

Brief overview of Industrial marketing ? Personal selling ? Role of consultants in personal selling ? Consultative selling model ? Case study:
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? Pharma Industry case study ? Paints industry case study

Definition: the creation and management of mutually beneficial relationships between organizational suppliers and organizational customers.
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Customer can be private firm, public agency, or nonprofit organization. Creating value for customers with goods and services that address organizational needs and objectives.

The customer is an organization rather than an individual consumer, or family. ? The technical characteristics of the product are important.
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These products directly affect the operations and economic health of the customer.

Products/Services being marketed ? Nature of demand ? How the customer buys ? Economic/Financial factors ? Communication process
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Personal selling more important than mass paid advertising ? Support sales with other promotional activities: advertising in trade journals, catalogs, trade shows, direct mail, ? Message focused on technical, factual, and descriptive content. ? Multiple audience members.
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Middle 1950s-1960s: Late 1960s-1970s: era 1980s: 1990s-present: selling era

Marketing era Consultative selling Strategic selling era Relationship

Major Developments (1960-2020) 1) Major advances in information technology 2) Information is a strategic resource 3) Business is defined by customer relationships 4) Sales success depends on creating and adding value for the customer

INCREASES IN RELATIONSHIP SELLING AND RELATIONSHIP MARKETING

Industrial Economy 1860-1960

Information Economy 1960-2020

The Personal Selling Process
FOLLOWING UP CLOSING THE SALE HANDLING OBJECTIONS MAKING THE SALES PRESENTATION APPROACHING THE PROSPECT

Pre approach: QUALIFYING PROSPECTS
PROSPECTING: IDENTIFYING POTENTIAL CUSTOMERS

Pro
Flexibility
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Con
l Can not reach mass audience l Expensive per contact l Numerous calls needed to generate sale l Labor intensive

Adapt to situations Engage in dialog

Builds Relationships
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Long term Assure buyers receive appropriate services Solves customer’s problems

Know your product inside out. ? Be knowledgeable about this industry. ? Know your competition ? Know the basics of the customers needs. ? People in common. ? Believe in yourself, your company, and product or DON’T be there.
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Nonverbal yes’s ? Sounds good… ? Focus on delivery and terms in discussion ? Timelines ? Pulling out PO forms ? Looking up stock/inventory
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Expert Help

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Capacity Need

? Specialized knowledge (functional or industry) ?Unique tools and approaches ?Information about latest innovations ?Infrequently performed work ?Short-term intensive work ?More cost effective than creating an internal Position ?Fresh perspective ?Objectivity (avoids internal bias) ?Wall street credibility

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Outsider perspective

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Guidance in Project Management

?Bring people together and improve team spirit ?Ensure task completed on time and within Budget

Extension of the marketing concept ? Looks at a customer as a person to be served
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Need Discovery

Selection of Product

NeedSatisfaction Presentation

Servicing the sale

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It is the process of focusing on and managing personal communication and interaction between the seller and buyer for the purpose of establishing a long-term social and business relationship which results in an on-going interdependent partnership that directly links the seller’s product/service benefits as a solution to the buyer’s needs/problems. Relationships are the key to Consultative Selling. Consultative Selling (CS) differs from traditional or Transactional Selling (TS) Consultative Selling approaches the customer in  “win/win” negotiations. Consultative Selling is an outgrowth of Relationship Marketing (RM).

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Phase I, Personal and Professional Strategy, is a Foundation. It is the underlying driver and supports all selling activities. Without this foundation, it is impossible to build or establish relationships on a long-term basis.  Phase II, Supply and Demand Strategy, is focuses on information that is essential for all successful consultants.  Phase III, Customer Acquisition and Maintenance Strategy, focuses on the Selling Process.  Phase IV, Evaluation & Improvement Strategy, is concerned with continuously monitoring and evaluating results achieved from the previous phases and how a professional salesperson would improve performance.

PIGMENT

Gives the paint its color and filling properties Un-dissolved by water or solvent. Binds and wets the pigment giving paint its Adhesion, gloss, hardness and durability. Dissolves the Binder & gives ease of application.

RESIN

PAINT

SOLVENT ADDITIVE

Improves paint & paint film properties.

THINNER

Improves and assists paint application.

Indian Customer asking for low price. ? Reluctant to change the formulation. ? 70 % of unorganized sector of paint industries lack space & time for R&D. ? Technical Services was not so good since operating through their distributors. ? Brand not very much known in Indian Paint market.
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Stick to their USP which is quality. ? No Compromises on the Price. ? Efficient Technical Services by having their own offices. ? Their Own recruited Technical Persons to have personal touch with customer. ? Established a centralized lab at Pune.
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Understood what is the need of customer Competitors Analysis How the market works Importance of consultants

BYK

Customer s

Consultants

Sustainability ? Continuous Improvements of products ? Best technical Services. ? Brand promotions through trade shows like ISSPA, SSPC, PAINT INDIA Etc.
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Sales progression in Appollo 25 20 15 10 5 0

% sales

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Share of Company Products in Apollo Chain of Hospitals 2007 sales analysis • 22 % amongst the drugs ordered by the category • Overall 15% of the total amount/order • Increase of 4% over last years sales figure • Potential for acquiring more share and hence sale

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High priced products Not enough discounting and no value addition Individual efforts at regional Hospital levels No relationship/contacts with Hospital authorities Company Inputs not in line with Hospital requirements No affiliation with hospital, only contacts and support from Drs No central (HO) based strategy/approach to handle hospital authorities or the central procurement agency

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Formation of a Hospital Institutional Sales team Develop contacts with the approving authorities List down member favorable to us and not favorable to us List down Hospital decision making process for tender approval Requirement of the hospital from Pharma company Change image as partner in healthcare and not as a drug provider Decrease inputs and improve on image building for quality of product Regular meetings with hospital authorities and become a partner with the hospital in their activities

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Hospital Association Plan (HAP)
AIM
Create a comprehensive plan for Engagement of Key Hospitals/Accounts Highlight value in associating with Sanofi-Aventis Create a Forum where we can differentiate us vs Generics Offer to be a Partner in Healthcare

KEY STAKEHOLDERS
Joint presentation by Medical / Marketing /Sales To the Key stake holders Medical Director, Drs , Superintendent and Pharmacy In-charge

Train the Hospital in Newer methods of Conducting Clinical Trials Diagnosing & Treating Patient care and Management

Improve Healthcare by Improving and Training scientific Personnel Create centers with Best Practices in Hospitals

Activity for Individual key stakeholders in key accounts / Hospital
Hospital Association Plan

Medical Director
Monthly meetings Medical Registries Research Certification plan Scientific and Technical Updates Training programs Revenue for Hospital through registries/Trials

Superintendent
CME’s for Nursing Staff Training on Patient care, Hygiene Medical Emergencies (ADRs)

Dr’s
Global Studies Asian Advisor Board Registries Research Certification plan

Pharmacist

Pharmacy Boards Lectures by FDA/DCGI New Regulations Scientific and Technical Training Programs

Sales Progression In Apollo Hospital 40 35 30 % Sales 25 20 15 10 5 0 18 13 21 14 22 15 34

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