Report on Selling and Sales Promotion 1 Prepared by Breaking Dawn REPOR T ON SELLING AND SALES PROMOTION
Report on Selling and Sales Promotion
1 Prepared by Breaking Dawn
REPORT
ON
SELLING AND SALES PROMOTION
SUBMISS ION DATEO c t o b e r 2 4 , 2 0 1 1
Report on Selling and Sales Promotion
Table Of content
Description Page Number
1.0 Personal Selling 6-9
2.0 Medical Sales Representative 10-20
3.0 Insurance Salesperson 21-28
4.0 conclusion 28
2 Prepared by Breaking Dawn
Report on Selling and Sales Promotion
24th October, 2011
To,
Shahin Ahmed Chowdhury
Lecturer
Department of Marketing
Faculty of Business Studies
University of Dhaka
Subject: Submission of the Report on medical sales representative and sales person in insurance.
Dear Sir:
Here is the report as you have assigned. The report deals with the different procedures,
qualities, duties of salespeople and promotional programs. The issues include different level
of analysis & findings. The study team tried to prepare the report in such a way so that this
report reflects the insurance salespeople and medical reps. Thanks for your sincere co-
operation throughout the duration of the study. If you need further clarification on any issues,
please summon us any time at your convenience.
We, therefore, would like to request you to accept our report and oblige thereby.
Sincerely yours,
_____________ _______________
Afsana Ahmed Md. Minar Uddin
Roll:155 Roll:25
_________________ _________________ _______________
Wajahat Noor Radia Chowdhury Quazi Mahfuza Rahman
Roll:159 Roll: 133 Roll: 145
3 Prepared by Breaking Dawn
Report on Selling and Sales Promotion
EXECUTIVE SUMMARY
A promotional strategy and tools used in pharmaceutical company and insurance company
are being prepared in attempts to interpret in-depth study. Personal selling is categorised as a
promotional method in which a salesperson builds relationships with a customer that results
in both parties obtaining value. Many small businesses are able to use personal selling to
maximum effect as they have the time to build relationships with their individual customers
and get a thorough understanding of their individual needs. This report helps us to understand
mainly the patterns of works a medical representative and sales people of insurance have to
perform. This report also gave us opportunity to have complete idea about Promotional
strategy and tools.
4 Prepared by Breaking Dawn
Report on Selling and Sales Promotion
1.0 Personal selling
Sales force is directly responsible for generating sales revenue. Personal sales are the
deliverance of a specially designed message to a prospect consumer by a seller; usually it
comes in different forms such as:
Face-to-face communication
Personal letters
A personal telephone conversation.
Unlike advertising, a personal sales message can be more specifically targeted to individual
prospects and easily altered if the desired behavior does not occur. However Personal selling
is far more expensive than advertising and is generally used only when its high costs can be
necessary. For example, the marketing of a complicated computer system may require the use
of personal selling or the introduction of a new product to consumers. Ideally, personal
selling should be supported by advertising to support its impact. Personal selling is one part
of companies promotion mix, beside the advertising, sales promotion, and public relations,
Where advertising is whichever form of paid sales presentation that is not done face-to-
face. In general, if a product has a high-end component value and requires a manifestation of
its benefits, it would be appropriate for personal sales. There are different types of personal
sales persons. Such as:
Driver-salesperson
An inside order taker
An outside order taker
A missionary sales person
A sales engineer
5 Prepared by Breaking Dawn
Report on Selling and Sales Promotion
In personal selling, the salesperson and the business obtain value from a sale through the
financial return they receive when a customer makes a purchase. The customer's value is
realised through the benefits that they obtain from consuming the product or service that they
purchase. The objective of the salesperson shouldn't be to simply make a sale, but to make a
sale that benefits both the business and the customer.
Some of the advantages that personal selling provides to small businesses are:
reduced costs compared to other marketing tools such as advertising
pricing and benefits can be negotiated and discussed
ongoing buyer/seller relationships can be established
you can offer complex or custom products and services
The selling process is made up of a number of different stages including:
Prospecting
Making initial contact
Making a sales pitch or presentation and making an offer
Objection handling and negotiation
Closing the sale and follow-up
1.1 The 8 Step Personal Selling Processes
Personal selling is the most expensive form of advertising and to be effective one should use
a step by step process to gain the most benefit. Personal selling can adjust the manner in
which facts are communicated and can consider factors such as culture and behaviour in the
approach. They can ask questions to discover the specific need of the customer and can get
feedback and adjust the presentation as it progresses.
6 Prepared by Breaking Dawn
Report on Selling and Sales Promotion
The Personal Selling Process
The personal selling process is a consecutive series of activities conducted by the salesperson,
the lead to a prospect taking the desired action of buying a product or service and finish with
a follow-up contact to ensure purchase satisfaction.
Step One: Prospecting - the first step in the personal selling process
The process of looking for and checking leads is called prospecting or determining which
firms or individuals could become customers.
Up to 20% of a firm's customer base can be lost for reasons such as transfer, death,
retirement, takeovers, dissatisfaction with the company and competition. A steadily growing
list of qualified prospects is important for reaching the sales targets.
Qualifying a prospect: It only becomes a prospect if it is determined that the person or
company can benefit from the service or product offered. A qualified prospect has a need, can
benefit from the product and has the authority to make the decision.
Step Two: The Pre-approach
This stage involves the collecting of as much relevant information as possible prior to the
sales presentation. The pre-approach investigation is carried out on new customers but also
on regular customers. Systematic collection of information requires a decision about
applicability, usefulness and how to organise the information for easy access and effective
use.
Step Three: The Approach
The salesperson should always focus on the benefits for the customer. This is done by using
the product's features and advantages. This is known as the FAB technique (Features,
Advantages and Benefits).
Features: Refers to the physical characteristics such as size, taste etc.
Advantages: Refers to the performance provided by the physical characteristics eg it does not
stain.
7 Prepared by Breaking Dawn
Report on Selling and Sales Promotion
Benefits: Refers to the benefits for the prospect. Eg. Saves you 20% on replacement cost.
Step Four: The Sales Presentation
After the prospects interest has been grasped, the sales presentation is delivered. This
involves a "persuasive vocal and visual explanation of a business proposition". It should be
done in a relaxed atmosphere to encourage the prospect to share information in order to
establish requirements. Some small talk may be necessary to reduce tension but the purpose
always remains business.
Step Five: The Trial Close
The trial close is a part of the presentation and is an important step in the selling process.
Known as a temperature question - technique to establish the attitude of the prospect towards
the presentation and the product.
Step Six: Handling Objection
Handling Objections are often indications of interest by the prospect and should not be
viewed with misgiving by salespeople. The prospect is in fact requesting additional
information to help him to justify a decision to buy. The prospect may not be fully convinced
and the issues raised are thus very important. It also assists the salesperson to establish
exactly what is on the prospect's mind.
Step Seven: Closing the Sale
This is the last part of the presentation. Many salespeople fear the closing of a sale. Closing a
sale is only the confirmation of an understanding. Fear will disappear if the salesperson truly
believes that the prospect will enjoy benefits after the purchase of the product.
Step Eight: The Follow-up
The sale does not complete the selling process. Follow-up activities are very important and
are useful for the establishment of long-term business relationships. It is important to check if
the products have been received in good condition, to establish the customer is satisfied etc.
8 Prepared by Breaking Dawn
Report on Selling and Sales Promotion
2.0 Medical Sales Representative
A missionary salesperson is someone who works as a manufacturer's representative and visits
the manufacturer's customers and takes care of details. A detail person's primary
responsibility is to promote goodwill by making sure that the manufacturer's customer is
happy with the product. His primary job is to increase business from current and potential
customers by providing them with product information and other personal selling assistance.
We have assigned to do our medical sales representative interview with the Renata limited.
So here we are giving a overview of Renata limited and their promotional strategies.
In our research about Renata’s missionary salesperson we found out that a missionary
salesperson of Renata Limited needs to have the following qualities:
Prospecting and qualifying: involve locating potential customers and finding out if
they are in a spot to buy. Prospecting, or lead-generation, can be as simple as asking
current customers for names of associates who may also be interested. Often Renata
Limited provides leads, but a really successful salesperson will also be able to
generate his own leads.
Approach: involves researching the prospective customer—often another company
(hospital) or doctors. The salesperson may read up on the company, talk to other
vendors, or study the overall industry. It is essential for a salesperson of Renata to
make a positive first impression while introducing him. It’s very important that the
missionary salesperson listen carefully to the prospect client and respond correctly.
Efficient in preparing sales presentations.
Ability to identify product needs.
Handling objections: Almost every customer will present objections to making a
purchase. A good salesperson is not nervous by these objections and handles them in
a positive and confident manner.
Sale—closing: some new salespeople are so reluctant to be perceived as aggressive
that they never try to close the sale. The customer may become annoyed and decide
9 Prepared by Breaking Dawn
Report on Selling and Sales Promotion
not to purchase just for that reason. Customers must be given the opportunity to
purchase.
He should be responsible and be able to provide service anytime the prospects want.
He should possess good sense of humor to get attention of prospects.
He must be punctual
Efficient in collecting Sale—follow up.
2.1 Company Overview
Renata Limited shares the vision of being everywhere in the near future, which is related to
its present businesses. We call it related diversification. In its business level strategy,
differentiation is what they focus on. Tremendous ranges of product-mix and supportive field
the functional level these decisions are translated into practice, activity based accounting or
better inventory control system. Overall they seek for any of the following or the
amalgamation of these virtues: Quality, Innovation, Efficiency and Customer responsiveness.
2.2 Various Promotional Strategies used by Renata Ltd
Renata uses the following promotional strategies:
Direct Marketing
Renata expended 10% of total sales for promotional activities which falls under the category
of direct Marketing.
10 Prepared by Breaking Dawn
Report on Selling and Sales Promotion
Sales Promotion
Sales promotion is one of the four aspects of promotional mix. (The other three parts of the
promotional mix are advertising, personal selling, and publicity/public relations.) Media and
non-media marketing communication are employed for a pre-determined, limited time to
increase consumer demand, stimulate market demand or improve product availability.
Examples include:
contests
point of purchase displays
rebate (marketing)
free travel, such as free flights
Sales promotions can be directed at the customer, sales staff, or distribution channel members
(such as retailers). Sales promotions targeted at the consumer are called consumer sales
promotions. Sales promotions targeted at retailers and wholesale are called trade sales
promotions. Some sale promotions, particularly ones with unusual methods, are considered
gimmick by many. Renata follows some sales promotion techniques which are as follows:
Price deal: A temporary reduction in the price for drug houses
Loyal Reward Program: for PSO, DSM, RSM
Cents-off deal: Price reduction is a percentage marked on the product
Price-pack deal: offer a certain percentage more of the product for the same price
Coupons: coupons have become a standard mechanism for sales promotions.
Loss leader: the price of a popular product is temporarily reduced in order to stimulate
other profitable sales
Gift, Literature
Conduct cycle program , document competitor analysis
11 Prepared by Breaking Dawn
Report on Selling and Sales Promotion
Public relations
Renata also does some sorts of public relation. Public relations (or PR) are a field concerned
with maintaining public image for high-profile people, commercial businesses and
organizations, non-profit associations or programs. Public relations (PR) concerns
professions working in public message shaping for the functions of communication,
community relations, crisis management, customer relations, employee relations, government
affairs, industry relations, investor relations, media relations, mediation, publicity, speech-
writing, and visitor relations. Others define it as the practice of managing communication
between an organization and its publics. Public relations provides an organization or
individual exposure to their audiences using topics of public interest and news items that
provide a third-party endorsement and do not direct payment. Common activities include
speaking at conferences, working with the media, crisis communications, social media
engagement, and employee communication. It is something that is not tangible; this is what
sets it apart from advertising.
PR can be used to build rapport with employees, customers, investors, voters, or the general
public. Almost any organization that has a stake in how it is portrayed in the public arena
employs some level of public relations. There are a number of related disciplines falling
under the banner of Corporate Communications, such as Analyst Relations, Media Relations,
Investor Relations, Internal Communications and Labor Relations. PR professionals focus on
building relationships that help to establish rapport with publics. Public Relations
professionals must know how to write clearly, speak clearly, and think analytically. These
skills are necessary because in the field of PR there is constant communication between
professionals and their publics.
Personal Selling
A personal selling strategy works best for a complex, technical, unique, customized product
with a poorly informed client. That’s why our multimillion-dollar electronic imaging product
is perfect. It’s so complex and technical you need a trained, informed person to explain it to
its highly specialized customer. It’s likely to have to be customized for each individual sale,
12 Prepared by Breaking Dawn
Report on Selling and Sales Promotion
and its client doesn’t have the time to read up on all the different ones on the market and why
yours is better (and is thus uninformed).
To address all of these unique needs, you have to design your personal selling strategy to
have three key elements: a knowledgeable salesperson or sales team, an understanding of
your client, and a sales structure designed to give the salesperson enough power to make an
irregular sale but still get rewarded for it.
The salesperson is the key to your personal sales strategy. So when you’re recruiting
salespeople, you should be willing to recruit the best and expect to pay them a premium.
There are two routes you can follow: You can hire someone with a good sales background
and teach them about the science (or product); or you can hire someone with a good scientific
background and teach them about sales. Usually, the choice you make will depend on how
complicated your product is and who your customers are. An electronic imaging product is
likely to be pretty technical, and your customer will likely be a doctor or a scientist, so you’ll
want a scientist to be your salesperson, both for credibility reasons and to give the customer
what they’re looking for. If the person buying your product is a hospital administrator, you
might think about hiring someone with sales experience instead, because the administrator
will be used to buying from no technical people and will likely be more bottom-line oriented.
Remember, also, that the salesperson is more than just a sales agent: They’re a research and
development tool. Their interactions with customers give you more information about what
modifications need to be done to your product than any other source. They’re market
intelligence (because they know what other products are being sold, and why) as well as a
way of making your own product more customer-oriented.
The Client Throughout the marketing section, we’ve used the phrase “Know your client.” It’s
just as important here as anywhere else. By understanding what your client needs in a
product, you can better give the salesperson the tools they can use to fulfill that need. By
understanding what a customer wants in a salesperson, you can tune your sales team to be
just that. Do they want a half-hour presentation or just a 12-second pitch? A customized
product they help design (and maybe write a paper on) or a ready-to-use product, in their lab,
tomorrow? Or maybe the purchaser isn’t the user at all: A hospital administrator makes the
13 Prepared by Breaking Dawn
Report on Selling and Sales Promotion
purchase decision, and a doctor uses the machine. Understanding this will help keep you from
wasting salesperson time on selling the machine to the doctor, who’s not authorized to buy it
anyway.
Direct marketing
Direct marketing to patients as follows:
Since the late 1970s, direct-to-patient marketing of prescription drugs has become important.
Many patients will inquire about, or even demand to receive, a medication they have seen
advertised on television. In the United States, recent years have seen an increase in mass
media advertisements for pharmaceuticals. Expenditures on direct-to-consumer (DTC
pharmaceutical advertising) have more than quintupled in the last seven years since the FDA
changed the guidelines, from $700 million in 1997 to more than $4.2 billion in 2005,
according to the United States GAO (Government Accountability Office, 2006).
Various roles played by MPOs to enhance the sale
Marketing strategies are tailored after training into account competitor activities. You are one
of the best persons to inform the Marketing Department about competitor’s activities.
Submit a short report on competitor activities. There is no need to write in long sentences,
instead, just highlight the main points.
Prepare Tour Program:
Preparing a tour program helps identify specific geographic areas where your team members
would be working as well as coordinate with van delivery schedules.
Make a broad outline of the areas that a PSO would cover on each day using the prescribed
format.
Conduct Cycle Meeting:
The cycle meeting is important for three reasons:
14 Prepared by Breaking Dawn
Report on Selling and Sales Promotion
First, it provides a forum for you to assess the progress of your team in
relation to other members in your region.
Second, because of the presence of your RSM and Product Managers, you can
improve your understanding on corporate strategy.
Third, the planning that your do at this meeting helps your RSM carry out his/
her own planning.
Set sales objective by taking three key figures for each Priority Products. These are:
Monthly target as provided by Head Office
Previous week’s deficits
Add your personal target to exceed the Budget
Coach the PSO/Sr. PSO/ PSM based on training needs identified during the weekly meetings.
Your sessions would typically include counseling, knowledge updates, detailing practice, etc.
Administer an examination on Product knowledge and Plan of Action (POA) as prepared by
Product Managers.
Developing Promotion Strategy
Renata Limited used developing promotion strategies as:
15 Prepared by Breaking Dawn
Report on Selling and Sales Promotion
2.3 Medical Sales Representative Job Description
Medical sales representatives (widely referred to as reps) are a key link between medical and
pharmaceutical companies and healthcare professionals. They sell their company's products,
which include medicines, prescription drugs and medical equipment, to a variety of
customers including general practices, primary care trusts (PCTs), hospitals and pharmacies.
They also work strategically to increase the awareness and use of their company's
pharmaceutical and medical products.
Medical sales reps are usually based in a specific geographical location and specialise in a
particular product or medical area. They may also make presentations and organise group
events for healthcare professionals, as well as working with contacts on a one-to-one basis.
Typical work activities
In any setting, the process of selling involves contacting potential customers, identifying their
needs, persuading them that your products or services (rather than those of competitors) can
best satisfy those needs; closing the sale by agreeing the terms and conditions; and providing
an after-sales service. Medical sales representatives do all of this and more.
16 Prepared by Breaking Dawn
Report on Selling and Sales Promotion
Tasks often include:
arranging appointments with doctors, pharmacists and hospital medical teams, which
may include pre-arranged appointments or regular 'cold' calling;
making presentations to doctors, practice staff and nurses in GP surgeries, hospital
doctors and pharmacists in the retail sector. Presentations may take place in medical
settings during the day, or may be conducted in the evenings at a local hotel or
conference venue;
organising conferences for doctors and other medical staff;
building and maintaining positive working relationships with medical staff and
supporting administrative staff;
managing budgets (for catering, outside speakers, conferences, hospitality, etc.);
keeping detailed records of all contacts;
reaching (and if possible exceeding) annual sales targets;
planning work schedules and weekly and monthly timetables. This may involve
working with the area sales team or discussing future targets with the area sales
manager. Generally, medical sales executives have their own regional area of
responsibility and plan how and when to target health professions;
regularly attending company meetings, technical data presentations and briefings;
keeping up-to-date with the latest clinical data supplied by the company, and
interpreting, presenting and discussing this data with health professionals during
presentations;
monitoring competitor activity and competitors' products;
maintaining knowledge of new developments in The National Health Service (NHS) ,
anticipating potential negative and positive impacts on the business and adapting
strategy accordingly;
developing strategies for increasing opportunities to meet and talk to contacts in the
medical and healthcare sector;
staying informed about the activities of health services in a particular area.
17 Prepared by Breaking Dawn
Report on Selling and Sales Promotion
2.4 Medical Sales Representative Responsibilities and Duties
Check hospitals and health care facilities.
Present on sales to multiple decision makers
Develop and nurture client relationships
Set up strong relationships with key decision makers
Manage current business and present new products
Function as sales representative to hospitals and surgery centers
Function as primary sales contact and account manager or multiple institutions
Monitor and maintain marketing efforts directed at institutional clients
Develop and encourage effective promotional offers and sales campaigns
Develop marketing materials like case studies and product brochures
Sell medical products within hospital accounts and surgery centers
Handle diverse customer base within medical industry or hospital
Create new business within assigned territory
Market a line of medical device products into multiple levels of hospitals
Modify sales presentations content by studying sales outlet type
2.5 Interviewed Information of a sales representative of Renata
Limited
Each salesperson of Renata Ltd goes through a training program before starting their
fieldwork. The duration of such training program is 1 month. Renata also provides yearly
training program for making an efficient sales force. The training program covers the
following area:
Induction training
Field training
Refresher training
Special skill development training
Communication training
If a person is interviewing for a salesperson’s job in Renata Ltd he must be efficient in
understanding buying signals of prospects. Sometimes doctors do not communicate directly
rather they send signals such as talk about need of certain products. The salesperson of
18 Prepared by Breaking Dawn
Report on Selling and Sales Promotion
Renata Ltd grabs the opportunity and gets buying signals. However, salespersons of Renata
are well dressed and are very acute in doing research about market drives. They regularly
pursue consumers and usually serve two spots a day. A certain salesperson of Renata has to
cover Dhaka Medical College area as well as Green road area’s hospitals the same day.
Renata’s salespersons have to do post call analysis every day. The more efficient they are the
better the chance they have for getting a promotion.
The process of selling is very dynamic. The prospect makes salesperson decide about which
technique to adopt. It varies from consumer to consumer. The salesperson must be very quick
to understand the norms of the customer and what he wants in order to convince the buyer.
Otherwise other sellers of the same brand stand in line for a shot at convincing the buyer. So
the competition is very high for the salesperson. The process starts with approaching the
doctor and initiating a conversation. The salesperson must utilize every second of his time to
convince the doctor. After describing product features and quality to the doctor he must try to
seal the deal quickly. If that is not an option he needs to be persuasive and keep pushing.
However, after sales follow up is another job of the salesperson as it helps the brand to
understand demand of sold products and scope for new products. At the end of each day a
salesperson of Renata Ltd needs to report to his immediate senior by phone call and also go
to the office and give daily report of sales approaches.
At Renata Ltd starting salary of a new salesperson varies from BDT 20,000-22,000. As he
works for the company it monitors his progress and based on his dedication towards selling
his monthly salary is raised. The salesperson is provided with monthly allowances such as
travel allowance and medical reimbursement.
As we interrogated the salespersons about their satisfactory level in job life they replied
affirmatively that they are happy with incentives and allowances of Renata Ltd. However,
they added “In our life it is not job for life, it is life for job.” In the end these words describe
it all. How they have to be on the edge all the time to make a sale as the representative of the
company.
19 Prepared by Breaking Dawn
Report on Selling and Sales Promotion
3.0 Salespeople of Insurance
An insurance salesperson sells insurance policies. Some insurance salespeople sell just one
type of insurance, while others may sell several types. For example, one insurance
salesperson may sell life insurance only while others may sell life, disability, and property
insurance. Some insurance salespeople work for a single insurance company and only sell
that company's insurance products. Others are independent salespeople and sell insurance
offered by many different companies.
An insurance salesperson that chooses to sell life insurance helps people care for their loved
ones after death. These policies pay money to named beneficiaries when the policyholder
dies. Health insurance is another product an insurance salesperson may sell. These policies
are intended to help pay for medical care when necessary. Some insurance agents also sell
dental insurance, which helps meet the costs of dental care, and disability coverage, which
provides benefits if the policyholder becomes disabled.
Some insurance salespeople also sell property insurance, including policies that cover losses
caused by fires, theft, and other damaging events that can affect a home or business. An
insurance salesperson may also sell car insurance, helping people to stay covered in the event
of a vehicle accident. He may sell insurance that covers product liability claims or
malpractice suits as well. An insurance salesperson may sell insurance to individuals and to
businesses, or he may specialize in selling to a single type of client. In some cases, an
insurance sales agent may even sell mutual funds and annuities.
Besides selling different types of insurance, an insurance salesperson may perform other
tasks as well. He may offer advice concerning the minimization of risk, and he may even
offer financial planning services. Insurance salespeople also keep client records and generate
insurance-related reports. When necessary, a person in this field may remind clients that their
payments are due. If a client has been in an accident or experienced some type of loss, an
insurance salesperson may also advise him on how to submit his claim.
The requirements for becoming a salesperson may vary from place to place. Often,
companies that employ insurance salespeople prefer those who have earned college degrees.
20 Prepared by Breaking Dawn
Report on Selling and Sales Promotion
An individual may secure a job with only a high school diploma or its equivalent if he has a
talent for sales or related experience, however. In many places, a person must pass an
insurance licensing exam in order to sell insurance with a company or as an independent
agent.
3.1 Qualities of insurance salesperson
If you have ever contemplated becoming an insurance agent or wondered whether this career
path could be right for you, then there are several qualities that you will need to possess, at
least to some degree. All good insurance agents share some of the following core qualities in
one way or another.
People Skills
1. Puts the needs of the client first - An agent who is only out to earn a commission,
regardless of the needs of the client, is not likely to last long in the business. Agents
and brokers who listen carefully to what their clients and prospects say will be able to
earn their trust, which is the hardest part of their job. Those who are willing to put
their clients into a product that pays a lower commission because it better fits their
needs are much more likely to be successful.
2. Good customer service - Customers who are able to get a hold of their agents when
they need them are much more likely to stay happy and reassured. A timely response
to inquiries and phone calls is a must, and you must be able to do what you say you
will do, when you say you will do it - or at least have a good reason as to why you
can't. One of the major complaints of those who buy life insurance policies is that
there is no one around to answer their questions after they have purchased the policy.
3. Emotional intelligence - This includes the ability to listen and empathize with clients
on a deeper level in order to discern what they really want and need. A good agent is
tactful and knows how to help a client see financial reality clearly, even when the
client is dead set against it.
21 Prepared by Breaking Dawn
Report on Selling and Sales Promotion
4. Passionate – Successful brokers are passionate about what they do. They enjoy
helping others prepare for the unexpected, so they believe in what they are selling.
Top-level insurance brokers must be on a mission to improve the lives of their current
and prospective clients. Their services can have a huge impact on the lives and
legacies of their clients – and on the lives of clients’ families and loved ones. A new
broker’s ability to convey the crucial nature of this work will have a huge impact on
his/her career.
5. Outgoing and empathetic – Introverts need not apply. Insurance brokers must be
outgoing and able to make prospective clients comfortable during the sales process.
They must be comfortable starting conversations and have genuine interest in their
clients’ peace of mind and financial well-being.
6. Able to handle rejection – Insurance brokers must deal with a lot of rejection,
especially early in their careers. Asking prospective clients to face their own mortality
or morbidity is a challenge. Many prospective clients will procrastinate and try to
postpone meetings, and some may even be verbally abusive. Successful brokers
develop resilience and realize that this rejection is not personal. One interesting
technique used by a former top agent to neutralize his fear of calling prospects was to
put a dollar value on each call. The agent realized that if he was earning $3000 in
commission a week and was making 150 calls each week, each call was worth $20.
To minimize his reluctance, he taped a $20 bill to the phone to signify the value of
each call. This technique doubled his revenue within a year.
7. Availability and Flexibility- As an insurance agent, your job will be to meet the needs
of your clients. Clients' needs are often tied to their own work and family event
schedules. The best insurance agents are typically those that can be reached at odd
hours and can provide appointments to customers at all hours of the day or night,
within reason.
If you are looking for an insurance agent, one of the most frustrating things in the world can
be getting stuck with an agent whose doors open at 8 a.m. and close at 4 p.m. Just like with
real estate agents or financial brokers, ask potential insurance agents what kind of schedule
22 Prepared by Breaking Dawn
Report on Selling and Sales Promotion
they normally work in case you need to be able to get a hold of them. Determine whether
their company has a 24-hour helpline or if you will always have to wait until the next day to
get help. Above all, you need an agent who is willing to be flexible to accommodate your
scheduling needs.
Strong Personality
1. High energy level - One of the most important traits of a good insurance agent is that
they appear to be excited and eager at all times. A worn-down or dreary disposition
will immediately rub off on clients and discourage them from buying anything.
2. Persistence - This is perhaps the most vital quality of any good insurance agent. Those
who work in this field absolutely must be able to handle rejection on a daily basis
over the course of their careers, and do it with a smile. Good insurance agents
understand that each "no" only brings them closer to someone who will say "yes."
3. Honesty - Insurance agents who use deception to close business seldom stay with the
same company for very long - and can end up behind bars in some cases. A good
agent knows that telling the truth up front will win them clients' respect and trust and
is likely to lead to repeat business over time.
4. Goal oriented – The insurance industry can be monetarily and personally rewarding,
but it is filled with many long days and challenges. These challenges can be
physically and emotionally wearing unless brokers can set business targets that keep
them on track. The ability to set short-term, mid-term, and long-term goals will keep
energy levels high and help you deal with daily business challenges.
5. Organized – Top-tier insurance brokers have tracking systems to analyze their
production and administrative tasks. They can effectively keep track of when to
contact current and prospective clients. Success in insurance requires persistence.
Systematically keeping in touch with clients lets brokers provide better service and
uncover potential sales opportunities, such as the birth of a child or the purchase of a
new home.
23 Prepared by Breaking Dawn
Report on Selling and Sales Promotion
6. Good Listeners – There is an old saying, “God gave us two ears and one mouth
because He wanted us to do twice as much listening as talking.” This adage definitely
applies to the insurance industry. Prospective clients will let you know their areas of
concern, but only if you encourage them by active listening. Remember, areas of
concern are opportunities to render service – and make a sale.
7. Communication Skills- Communication skills are essential to being a top insurance
agent. Agents who can successfully explain policies and policy details to potential
clients are likely to lose these potential customers who may be uneasy about the
agreement they are entering into. If you are a client seeking an insurance agent,
settling for an agent who cannot effectively communicate with you should not be an
option. Effective communicators are those who recognize that each person's
communication needs can be different and adjust their own style of communication so
that they can be understood by many different types of people.
General Knowledge
1. Wide array of products - As the old saying goes, if all you have to work with is a
hammer, and then everything in the world looks like a nail. A good insurance agent
will be able to offer a comprehensive selection of products and services that can meet
any reasonable need a client might have.
2. Technical knowledge - A good insurance agent knows much more than how to sell a
policy. The agent must understand the tax and legal aspects of the products he or she
sells and how they are designed to fit into a client's overall financial situation. Many
agents earn financial planning designations such as the Certified Financial Planner®,
Chartered Financial Counselor or other credential. Some agents practice financial
planning, income tax preparation or some other avenue of financial service as their
primary profession and then write insurance business when it becomes necessary.
These are just some of the qualities that life insurance agents must possess in order to be
successful. The life insurance business can be very challenging and immensely rewarding for
those who are willing to learn the necessary skills to build their business. For more
24 Prepared by Breaking Dawn
Report on Selling and Sales Promotion
information on how to become a successful insurance agent, contact the recruiting offices of
a few different agencies or a headhunter who works with insurance agents.
3.2 Role of insurance salespeople
The main role of the insurance agents is to supply detailed information on a policy which will
be able to provide adequate help to the insured at the time of a loss or disaster or any inability
or death. There are various kinds of insurances like life insurance, health insurance, credit
insurance, home insurance, pet insurance, boat insurance and various others. So, it is
important for you to get all the details of insurance before buying it. The insurance agents
guide you in getting the best deal as per you needs. Before getting help from an insurance
agent, make sure that he is a member of insurance agents association PIA. This is because
PIA helps their members to stay informed and educated about the insurance policies and the
new updates on the policies.
Basic function of insurance agents
The following are the basic function they should perform:
Provide you with all the necessary application forms
Submit your application forms to the insurance company
Arrange with you all the medical tests and other associated formalities for buying an
insurance policy
Provide you with reminders about the premium payments and about getting the return
receipts
They are also supposed to help you make necessary changes in the address, and any
other information and so on
Help you with the whole process of the assignment of the policy
Assist you with any kind of loan applications and other associated formalities
The agents are also supposed to help you with reviving the policies that have lapsed
25 Prepared by Breaking Dawn
Report on Selling and Sales Promotion
They are supposed to assist you in claiming the various benefits as and when required
Majority of the people who need an insurance policy manages to contact an insurance
company with the help of an insurance agent. The insurance sales agents are also known as
the producers. These agents also provide your ideas on how to avoid or minimize the risks.
So, you can get the help of an insurance agent if you are planning to buy any kind of
insurance.
3.3 Process of working
Make Product Appear “In Demand” or “Hard-to-Get”.
Insurance salespeople always present themselves and their product as “limited,” “scarce,” or
“in demand.” Why? People want what they can’t have. Repeatedly, persuasion researchers
have shown that human beings find more value in things that they have a hard time obtaining.
When customers feel an opportunity is about to be taken away or product is running out, they
want it more. Therefore, present your opportunity as “scarce,” “exclusive” or “in demand.”
Talk Losses, Not Gains.
Persuasion experts know that salespeople who learn to talk losses, not gains, will achieve
optimal results. In other words, rather than telling a prospect what he or she will gain by
using your product, tell them what they are going to lose by not using your product. This
strategy works because the pain of losing something that you already have is more intense
than the pleasure of gaining something you don’t have.
Insurance agents sometimes make the mistake of presenting insurance as a gain. “With this
policy you gain peace of mind,” they say. The better approach is to tell the prospect what
they stand to lose by not buying the product. “Think about all of the things that you currently
have—your new Cadillac, your expensive Asian rug, your beautiful new home . Without this
policy, you are at risk of losing all of those things.”
By talking losses, you effectively disrupt comfort zones and provide customers with the
motivation to act. Paint a picture of what the customer already has but stands to lose. This
approach creates a more motivating message.
26 Prepared by Breaking Dawn
Report on Selling and Sales Promotion
Position Yourself as Someone Valued by the “Experts”.
When uncertain about what product to buy, human beings often look to the behavior of
others, especially experts, to determine their own course of action. This is why you often see
advertisements claiming that “four out of five doctors recommend” or, “the fine food experts
since 1969.”
Share their testimonials, advertise awards the business has earned, collect and share
comments of satisfied customers. Convince your customers that you’re the best by showing
them that the experts say that you’re the best.
4.0 Conclusion
Personal selling is categorised as a promotional method in which a salesperson builds
relationships with a customer that results in both parties obtaining value. Many small
businesses are able to use personal selling to maximum effect as they have the time to build
relationships with their individual customers and get a thorough understanding of their
individual needs. Personal selling requires some amount of personal contact between the
buyer and the seller. However, this contact does not necessarily have to occur face to face.
Personal selling can occur on the telephone, via video conferencing or even by utilising
internet chat and messaging. The key is that the buyer and seller need to be able to
communicate clearly and effectively with each other.
27 Prepared by Breaking Dawn