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| Tuesday, 19 October 2004 |
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Effective selling in a turbulent market by Prasanna Perera, Marketing and Management Consultant, Chartered Marketer, CIM, UK I have received numerous requests to enlighten organisations in Sri Lanka, on how to achieve the best sales result in a competitive market place. In this article I will endeavour to share some insights relating to selling different types of products from edible to durable to industrial. One only needs to scan the newspapers or take a drive down a main highway to observe the great proliferation of "sales" being conducted. Endless stock clearance sales that go on for months or discounts being offered from sugar to everything and anything. My question is "are we saying that effective selling can only be conducted by providing discounts?" We do not need professional salesmen, if everything is discounted and sold forever. Against this background, let me shed some light on effective selling. Sri Lankan market Many a person is of the view that Sri Lanka is a large market because we have a population of 19.3 million. What is relevant is as to how many persons can afford to purchase a given product and from this perspective the numbers can be drastically lower. For many non-essential super luxury products, the potential numbers can be as low as 0.5 million persons. For essential personal care products, the market could be in the range of 5-6 million persons. (Only 31% of the total population). Therefore, for all practical purposes, the Sri Lankan market is very limited for a majority of products and services. The Sri Lankan consumer is unique and demonstrates certain characteristics. * Price sensitive and is concerned about the initial investment. (How many rupees?) * Is influenced a great deal by mass media advertising (TV, radio, newspapers) * "World of mouth" references are sought and acknowledged as important. These references can come from friends, family etc. * Dealer/retailer recommendations are important and considered as such. * A general belief that imported products are of better quality than local products. * Willingness to pay for convenience and reliability. * Very habitual in purchase behaviour, often patronising the known retailer and supermarket. * Brand loyalty is quite high and is a manifestation of searching for lower risk options. These characteristics are not fully comprehensive but were intended to provide the necessary backdrop for effective selling. Effective selling in the Sri Lankan market Whatever the product being sold, building relationships with customers is very important. Sri Lankans conduct business through networks and relationships and they are vital for success in a difficult market. This relationship is essential, immaterial of whether it is between retailer and customer or company representative and retailer. Therefore, to be effective in selling, strive to build a solid rapport with your customers. Good understanding A good understanding of customer needs is a prerequisite for effective selling. This may sound very familiar but is worth repeating. A good salesman will take the time and effort required to correctly interpret and learn the behaviour of different customers. (Two customers are never the same). Since customers are price sensitive, a good sales strategy is to avoid talking price at an early stage in the selling process. Highlight to the customer the benefits offered, including the service dimension, so that price becomes secondary and often gets justified. Benefit oriented selling is the right approach rather than selling features. In order to sell benefits, a good knowledge of competitor offerings is required for contrasting purposes. Through factual information and details, a competitive advantage can be obtained whilst selling. The ability to handle customer objections and queries is vital, for effective selling. The salesman who is extra competent in this regard, will have the edge in a difficult marketplace. In order to handle objections, listening is very essential. Many salesmen talk too much and forget to listen! The result is a lost selling opportunity. Range selling skills are vital to cultivate, since additional revenue can be obtained in difficult times. Most organisations market product ranges which have complementary features are benefits. For example, toothpaste, toothbrushes and mouth washes. In difficult times, do not block the customers capital, by overselling. It is better to be prudent by accurately determining selling - in quantities, so that no artificial selling takes place, resulting in products returns and customer dis-satisfaction. Regular orders are important in difficult times and this can only be achieved through objective selling based on off take. Prospecting of potential customers is an activity that should be paid special attention, in depressed markets. For example, if you are selling a frozen product, look out for outlets that stock Astra Margarine, Yoghurt and ice cream. If you are selling a product that needs to be consumed "on premise" look out for outlets at busy commuter points such as bus stops and railway stations. Conclusion In tough times, perseverance, skill and a "never say die" attitude is required to survive and prosper. Organisations would do well to invest in their field sales persons by enhancing their selling skills through both on-the-job and external training. Further, reward schemes tied up to performance, would be attractive, although a decent basic salary is required for job security and peace of mind. "There are three types of persons. Those who wondered what happened, those who watch things happen and those who make things happen." |
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