preparing for the sale chapter 12 covers how a salesperson prepares for a sale

Preparing for the Sale

Chapter 12 covers how a salesperson prepares for a sale.

Springboard

Write a short passage of the best and worst experiences you have had with salesperson.

Springboard / Best vs. Worst

One person stated that @ Walmart in Prattville, two workers over the age 40 approached him to ask, “are you finding everything ok.”

One person stated that @ Belk’s, two college aged workers did not notice his presence, even at the cash register. They were chatting over the Alabama vs. LSU football game.

Ch 12 Sec.1 – What is Selling?What You’ll Learn

The definition and goals of selling The various sales situations

encountered in the business world The definition of feature-benefit selling How customers make decisions and the

difference between rational and emotional buying decisions

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SECTION 12.1SECTION 12.1 SellingSelling

Why It's ImportantWhy It's Important

Learning how to research products and customers is helpful when selling any type of product or idea. Learning how to find customers is also essential. In this chapter you will be exposed to key selling concepts that link products to customers.

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SECTION 12.1SECTION 12.1 SellingSelling

Key TermsKey Terms

personal selling

business-to-business selling

telemarketing

feature-benefit selling

product feature

customer benefit

rational motive

emotional motive

extensive decision making

limited decision making

routine decision making

Selling

Personal Selling – any form of direct contact between a salesperson and a customer

Retail Selling – customers come to the store Business-to-business Selling – takes place in a

manufacturer’s or wholesaler’s showroom or a customer’s place of business

Telemarketing – selling over the telephone– National Do Not Call Registry, established by

the FTC in 2003

Selling

Question? How seeing an advertisement that is selling something is different from personal selling or going to a store and having a salesperson help you.

Selling

In advertising there is only one-way communication; in selling there is two-way communication.

Two Goals of Selling

Help customers make satisfying buying decisions, which create ongoing, profitable relationships between buyer and seller.

Repeat business is crucial to the success of any company

Goals of Selling

What are two goals of selling? a. To persuade customers to buy something

regardless of their need for the item.b. To help customers make satisfying buying

decisionsc. Create an on-going, profitable relationship

with a customerd. Make management’s sales quotas any way

you can.

Goals of Selling

The two goals of selling area. To persuade customers to buy

something regardless of their need for the item.

b. To help customers make satisfying buying decisions

Consultative Selling

Providing solutions to customers’ problems by finding products that meet their needs.

Problem – Customer stands all day on her new job and her feet hurt.

Solution – Salesperson suggests shoes designed for comfort and support.

Feature-Benefit Selling

Customers don’t buy products – they buy what products can do for them.

Example: A computer is purchased to increase productivity

Product Features

May be basic, physical, or extended attributes

Basic features are a product’s intended use.

Physical qualities differentiate it from competing brands and models.

Additional features add value and justify price differences between models.

Obvious Feature

This car is a bright shade of red.

Product Features

Tangible product feature(s) for a Reebok running shoe might include the

A. Duratech rubber sole. B. Reebok brand name. C. Removable molded sock liner. D. limited warranty.

Product Features

A. Duratech rubber sole.

C. Removable molded sock liner.

Customer Benefits

– Customer benefits are the advantages or personal satisfaction a customer will get from a good or service. To determine customer benefits, salespeople need to answer two questions about each product feature:

1. How does the feature help the product’s performance?

2. How does the performance information give the customer a personal reason to buy the product?

Obvious Benefit

This bright red car will attract the guys/girls

Unique or Exclusive Benefits

Our cars are so safe, we guarantee you won’t be crushed in a crash from the side.

Feature Benefit Chart

A feature-benefit chart combines a product or extended feature with its corresponding customer benefit to create selling points. One without the other is not sufficient. Feature-benefit charts help customers make buying decisions.


Page 212, Fig. 12-1In this feature-benefit chart, which

features are product features and which ones are extended features?


Sharp Electronics’ reputation as the manufacturer and the 90-day limited warranty are both extended features.


Assignment - Choose an item and list at least five features and benefits.

Customer Buying Motives

What motivates the customer to buy? 2 Categories:

Rational Motive – a conscious, logical reason for a purchase

Emotional Motive – is a feeling experienced by a customer through association with a product, such as social approval, recognition, power, or prestige.

Customer Decision Making

There are three distinct types of decision making:

extensive

limited

routine

Decisions are based on a person’s previous buying experience and the importance and perceived risk of the purchase.

There are three distinct types of decision making:

extensive

limited

routine

Decisions are based on a person’s previous buying experience and the importance and perceived risk of the purchase.

Customer Decision Making

Extensive Decision Making – used when there has been little or no previous experience with the item– High risk items– Very expensive– High value to the customer

Limited Decision Making – when a person buys goods and services that he or she has purchased before but not regularly– Moderate degree of risk– Person needs some information

before buying the product

Routine Decision Making – person needs little information about a product– High degree of prior experience– Little perceived risk

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12.1 Graphic OrganizerGraphic Organizer

Types of Customer Decision-Making ProcessesTypes of Customer Decision-Making Processes

Expensive or Highly Valued Item

Expensive or Highly Valued Item

No Experience with Item

No Experience with Item

Information Needed

Information Needed

Some Experience with Item

Some Experience with Item

HighProduct Satisfaction

HighProduct Satisfaction

Much PriorExperiencewith Item

Much PriorExperiencewith Item

High Perceived Risk

High Perceived Risk

Moderate Perceived Risk

Moderate Perceived Risk

Low Perceived Risk

Low Perceived Risk

Extensive Decision Making

Limited Decision Making

Routine Decision Making

Knowing Your Product & Your Customer

Question? Why is it so important for a salesperson to help customers make satisfying buying decisions?

Knowing Your Product & Your Customer

Repeat Business is the primary reasons!

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Section 12.2 Preparing for the Sale

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SECTION 12.2SECTION 12.2

What You'll LearnWhat You'll Learn

Sources for developing product information

Prospecting sources and methods

How leads are developed

Preparation for the sale in business-to-business selling and retail selling

Preparing for the SalePreparing for the Sale

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SECTION 12.2SECTION 12.2 Preparing for the SalePreparing for the Sale

Why It's ImportantWhy It's Important

As a salesperson, you will need to prepare for the sale by learning about the industry and the products you will be selling. In specific sales situations, you may also need to find customers. The tools and techniques for accomplishing these tasks are covered in this section.

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Key TermsKey Terms

preapproach

prospect

referrals

endless chain method

cold canvassing

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The preapproach is getting ready for the face-to-face encounter in a selling situation.

Salespeople do the following to prepare for the sale:

The Preapproach

Study their products.

Keep abreast of industry trends.

Research potential customers.

Develop familiarity with their company's policies and procedures.

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Product Information

Product knowledge is essential for success in selling. T The following are some of the ways

salespeople find product information:

Direct experience—using the product Written publications—manuals, warranties,

catalogs Other people—previous users, supervisors,

manufacturer's representatives Formal training

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Industry Trends

Sales representatives read periodicals related to their trade to gain insight into

the industry. All industries have trade publications related to their industry.

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Sources and Methods of Prospecting

A prospect, or a lead, is a potential customer. There are seven main methods for developing prospects:

employer leads

telephone directories

trade and professional

directories

newspapers

commercial lists

customer referrals

cold canvassing

Slide 1 of 4

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Employer Leads Most businesses try to generate prospects but also rely on salespeople to find new

customers.

Telephone Directories The White Pages is a list of names and phone numbers of potential customers. The

Yellow Pages can be useful for B2B prospecting.


Slide 2 of 4

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Trade and Professional Directories These can help B2B salespeople locate customers by industry.

Newspapers Birth announcements provide leads for insurance salesmen. Notices of mergers and new

businesses provide leads for B2B salespeople.

Commercial Lists Some companies specialize in providing lists of potential customers categorized by

education, income, etc.


Slide 3 of 4

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Customer Referrals Satisfied customers refer their friends and relatives. This is

called the endless chain method.

Cold Canvassing Potential customers are selected at random, such as by going

door-to-door or through the phone book.


Slide 4 of 4


When a salesperson researches a prospect to determine if he or she needs the product the salesperson is selling, has the financial resources to pay, and is the person who has the authority to buy, we say the salesperson is

a. Prospecting.b. Using the endless chain method.c. Cold canvassing.d. Qualifying the lead.


Qualifying the lead.

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If the sales call is with an existing customer, the salesperson analyzes past sales records and reviews notes about the

customer's personality, family, and interests.

Preparing for the Sale in Business-to-Business Selling

Slide 1 of 2

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If the sales call is with a new customer, the salesperson must research answers to the following questions, usually through a

phone call to the customer:

Does the prospect need this product or service?

Does the prospect have the financial resources to pay?

Does the prospect have the authority to buy?

Preparing for the Sale in Business-to-Business Selling

Slide 2 of 2

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Since the customer comes to you, retail preparation includes:

Straightening, rearranging, and replenishing the stock.

Adjusting price tickets before and after special sales.

Learning where stock is located and how much is available.

Preparing for the Sale in Retail Selling

Slide 1 of 2

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Taking inventory.

Arranging displays.

Vacuuming the floor, dusting the shelves, and keeping the selling area neat and clean.

These activities keep you familiar with the merchandise and makes it easier to find things

for customers.

Preparing for the Sale in Retail Selling

Slide 2 of 2

Reference(s)

Glencoe Marketing Essentials, 3rd Edition by Glencoe McGraw-Hill

preparing for the sale chapter 12 covers how a salesperson prepares for a sale

Documents

business selling

goals of selling

consultative selling

key selling concepts

help customers

productivity slide

customers problems

customers dont