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Sales

Management

SALM/SAM101

Revised: November 2013

IMM GSM Learner Guide Sales Management SALM/SAM101 of 168

TABLE OF CONTENTS

SECTION A

1. Welcome to Sales Management 4

2. A word from Alumni 4

3. Relationship with other modules 5

4. How to use this guide 6

5. Prescribed Learning Material 7

6. Additional Support 7

7. Assessment 7

8. National Qualification Framework specifications 9

9. Critical cross-field outcomes 9

10. Curriculum 10

11. A summary of Sales Management 11

SECTION B

PART 1: Selling as a Profession

Study Unit 1: The life, times and career of the professional salesperson 12

Study Unit 2: Relationship Marketing 23

Study Unit 3: Ethics First 34

PART 2: Preparation for Relationship Selling

Study Unit 4: The Psychology of Selling 41

Study Unit 5: Communication for Relationship Building 50

Study Unit 6: Sales Knowledge 57

PART3: The Relationship Selling Process

Study Unit 7: Prospecting 66

Study Unit 8: Planning the Sales Call 75

Study Unit 9: Sales Presentations Methods 80

Study Unit 10: Beginning your presentation 90


Study Unit 11: Elements with a great Sales Presentation 98

Study Unit 12: Prospects Objections 105

Study Unit 13: Close Begins with the Relationship 112

Study Unit 14: Service and Follow-up for Customer Retention 119

PART 4: Managing yourself, your career and others

Study Unit 15: Time, Territory and Self-Management 126

Study Unit 16: Planning, Staffing & Training 132

Study Unit 17: Motivation, Compensation, Leadership and Evaluation 138

ANSWERS TO STUDY UNIT QUESTIONS 143

GLOSSARY 165

LIST OF REFERENCES 167


SECTION A

1. Welcome to Sales Management

Welcome to the module you have registered for being Sales

Management SAM101/SALM. This is a module that forms part

of the core foundation in your marketing academic journey.

Some graduates enter into marketing industry as sales

representatives, this is an great start to your marketing career, with which ever avenue you decide to

branch off to in the future, as in the bigger picture of Marketing one needs how to sell the

product/service before they are able to marketing it and vice versa. You would also be developing

interpersonal skills which will prove to be most valuable in building professional relationships

throughout your career. Below are two past students whom not only successfully completed but

succeeded in the Sales Management module. They have written a brief word of how the module of

sales management has added to their marketing careers

2. A word from Alumni – Natasha Wilcocks

My name is Natasha Willcocks; I am currently a Marketing Research

Scientist at Interwaste Holdings Limited. My journeys began straight

out of high school, with a passion and drive to make a difference in

the way marketing is done in the waste management industry, by

finding new ways to improve our marketing methods. This sparked

my journey with IMM GSM, while gaining work experience. I was

guided towards the Diploma in Marketing Management, which since

then has provided me with all I need to move into a BBA in

Marketing Management.

The Sales Management 101 module gave me a huge advantage when designing a new way for

Interwaste representatives to put together and complete tenders, especially knowing that we needed

to sell a relationship to our customers, and not just a service. We also implemented several

communications techniques that help us give the same consistent message to our clients, showing

stability and consistency. This Sales Management module, helped me understand how to

communicate an effective message to our customers, something that they would understand and

appreciate. Also allowing me to completely understand how marketing and sales are related, and

help one another to achieve the results desired by corporate South Africa.


My advice to students starting the Sales Management 101 module would be, to put yourself in the

shoes of the customer and the sales person. Think how you would like to be treated and

communicated with as a consumer, and with that in mind respond in the manner the sales person

would. Good luck, and enjoy it.

A word from Alumni – Dominique Pelser

I should be finishing my Diploma in Marketing Management with the IMM GSM

Institute at the end of this year. I have been able to apply theoretical knowledge

from Sales Management to the real world, through a promotional work and a 6

month work experience at Mercedes-Benz

The fundamental concepts taught in the module are logical and practical for all

business segments; however they are implemented in various ways due to

individual perceptions, values and personalities. Sales Management is key to

business success as it deals directly with customers therefore having an effect

on the business sustainability, growth and development. This module teaches

core skills to achieve business and personal prosperity.

Selling is in every part of our lives, I found it a necessity for providing customer solutions through

effective communication in both correspondence and behavioural responses. It is the best tool for

understanding customer's needs and motivating an internal and external environment for

development.

3. Relationship with other modules

Sales Management SAM101/SALM is a module completed in your first year of either the Higher

Certificate in Marketing Management, the Higher Certificate in Export Management or the Diploma in

Marketing Management. It covers the fundamentals of Sales, specifically being personal selling and

sales management. Once you have completed Sales Management 101 you will be able to enter into

your first sales job having a solid foundation of the personal selling process (from cold calling to

closing a sale) as well as equipped with sales management knowledge you may need to manage a

sales team in the future.


So what do you have to know before attempting such a module? The pre-knowledge that is required

in doing this module is that you are sufficiently literate, you have access to the internet and you have

sufficient experience in producing written assignments in a full and clear fashion as well as having a

sound knowledge of the Harvard Referencing System

4. How to use this guide

This learner guide will guide you and fully equip you with the skills and knowledge you need to

prepare for assignments and exams. It is filled with supportive information which may better explain

concepts from your prescribed textbook as well as there are activities with feedback, glossary’s to

provide you with some clarity on some difficult terms as well as referencing to additional material you

may find on the student portal.

Your learner guide is a vital tool that should be consulted throughout your studies of this module. It is

not a summary of the textbook, and therefore should be used in conjunction with the prescribed

textbook when preparing for your assessments.

There is a glossary at the back of your learner guide with explanations of all key terms. There are

also questions within the study units and revision questions at the end of each study unit; all these

questions have answers which can be found at the back of the learner guide

In using the following learner guide, you will need to make use of the below keys to understand the

meaning behind the icons


Additional reading Key concepts

Learning outcomes Revision Exercise

Revision Question

5. Prescribed learning material

You need to make use of the following prescribed material throughout your studies of

this module:

Prescribed textbook: Futrell.C.M (ed). 2014. Fundamentals of Selling. 13th

edn. USA: McGraw-Hill.

Prescribed IMM learner guide for SAM101/SALM, dated November 2013.

6. Additional support

Please make use of all materials (additional resources, tutorial letters and relevant past papers)

available to you on the IMM Website and the student portal.

7. Assessment

Assessments comprise of both the assignments and examinations for this module. Please make sure

that you thoroughly read through the IMM GSM Yearbook under the assessment section for a

complete understanding of the rules and regulations when it comes to assignments and exams.Your

assessment for this module consists of submitting an assignment and writing an exam.

Assignment

The assignment constitutes 20% of your mark. Although it may seem like a small

percentage, when calculating your final mark, the assignment mark may be the

difference between a pass, fail, and even a distinction.


You need to familiarise yourself with the Year Book as this gives you important guidelines as to font,

styles, formatting and referencing requirements for submitting your assignment. Your assignment will

have 10 marks allocated to presentation; these 10 marks will be awarded to how successfully you

adhered to the assignment formatting requirements. Yet again, it is an easy way to get 10 marks and

these marks in the end could be extremely valuable. So, I urge you to comply with the assignment

guidelines.

An assignment is an open book format; therefore,

you will not receive marks for regurgitating what is

said in the textbook, it is all about the markers

seeing your understanding of the question at hand.

It is therefore imperative that you make use of your own words. The IMM GSM takes copying out the

textbook WITHOUT referencing very seriously, this is known as plagiarism (see Year Book) and you

will be held accountable for disciplinary action if you fail to reference your sources.

The assignment generally consists of a few essay type questions and is usually based on a short

case study.

Examination

The exam incorporates all content that is covered in the referred pages of the textbook

and learner guide. This mark makes up the other 80% of your final mark for

this module.

The final mark/semester mark can be calculated as follows:

Exam mark= 75% Assignment Mark = 65%

75 x 0.8 (as it contributes 80% towards your final mark) = 60

65 x 0.2 (as it contributes 30% towards your final mark) = 13

Therefore your final mark would be 60 + 13 = 73%

The grading system of your marks is as follows

75% or more = Pass with a distinction

50% - 74% = Pass

0% - 49% = Fail


8. National Qualifications Framework specifications

This module forms a compulsory module for the Higher Certificate in Marketing, the Higher Certificate

in Export Management and the Diploma in Marketing Management, In terms of the new National

Qualifications Framework (NQF) it is designed as a 20-credit module offered on NQF level 5

9. Critical cross-field outcomes

The critical cross-field outcomes, also known as transferable skills as

identified by the South African Qualifications Authority (SAQA), are

essential for your development as a student within the education and

training system, regardless of the specific are of learning. It is these outcomes that are deemed

critical for your development in the capacity of life-long learning

The critical cross-field outcomes adopted by SAQA are as follows:

Identify and solve problems in which responses display that responsible decisions using

critical and creative thinking have been made.

Work effectively with other as a member of a team, group, organisation and community.

Organise and manage oneself and ones activities responsibility and effectively.

Collect, analyse, organise and critically evaluate information

Communicate effectively using visual, mathematical and/or/language skills in the modes of

oral and/or written presentation

Use science and technology effectively and critically, showing responsibility towards the

environment and health of others

Demonstrate an understanding of the world as a set of related systems by realising that

problem solving contexts do not exist in isolation

Reflecting on and exploring a variety of strategies to learn more effectively

Participating as responsible citizens in the life of local,

national and global communities

Being culturally and aesthetically sensitive across a

range of social contexts

Exploring education and career opportunities

Developing entrepreneurial opportunities


10. Curriculum

The curriculum for this module is summarised in the below table.

Study

Unit No.

Topic Prescribed textbook

reference

1 The professional sales person Chapter 1

2 Relationship Marketing: Where personal selling fits Chapter 2

3 Ethics First…Then customer relationships

Chapter 3

4 The psychology of selling Chapter 4

5 Communication for relationship selling

Chapter 5

6 Sales Knowledge Chapter 6

7 Prospecting

Chapter 7

8 Planning the sales call Chapter 8

9 Selecting Sales presentation method Chapter 9

10 Begin your presentation strategically Chapter 10

11 Elements of a great sales presentation

Chapter 11

12 Welcome your prospect's objections

Chapter 12

13 Closing begins the relationship

Chapter 13

14 Service and follow-up for customer retention

Chapter 14

15 Time, Territory and self-management: Keys to success

Chapter 15

16 Planning, staffing and training successful salespeople

Chapter 16

17 Motivation, compensation, leadership and evaluation of

salespeople Chapter 17


11. A summary of Sales Management

Part 1: Selling as a profession (comprising of Chapters 1, 2 & 3)

Part 1 provides an overview of the sales profession and the sales presentation; in particular Chapter

1 examines the sales career and introduces the 10-step selling process used through throughout the

textbook. Chapter 2 explains how personal selling fits in to a firms marketing program. Chapter 3

illustrates the impact of social, ethical and legal issues on a firm’s operations.

Part 2: Preparation for Relationship Selling (comprising of Chapters 4, 5 & 6)

Part 2 focuses on the main sales knowledge that sales people need, where specifically Chapter 4

discusses buyer behaviour with a discussion of the communication techniques you will use in your

sales presentation. Chapter 5 introduces you to a basic verbal and nonverbal communications

techniques used by todays salespeople. Chapter 6 provides an overview of sales knowledge required

to call on customers.

Part 3: The relationship selling process (comprising of Chapters 7, 8, 9, 10, 11, 12, 13 & 14)

This part of the textbook is about the selling skills that successful salespeople use. These skills

comprise of a salesperson finding prospects, analysing their needs, creating a presentation that

emphasizes benefits of the sales person’s products and show how their needs to be addressed. They

are also required to address potential objections in order to gain commitment and provide exceptional

service to earn the privilege of repeating the cycle to help the customer in the long-term.

Part 4: Managing yourself, your career and

others (comprising of chapters 15, 16 & 17)

Now that we have covered the main steps in the

selling process, you should now be able to put

together the “show and tell” sales presentation.

The final part of your textbook introduces you to

territory and sales management. Specifically

chapter 16 discusses efficient use of time and

identifying prospects and contacting customers

in a sales territory. Chapters 17 & 18 provide

you with an overview of what is involved in

managing a sales force


Part 1: Selling as a profession

Study Unit 1: The professional

sales person

We will be looking at the process of personal selling, the typical characteristics of a salesperson as

well as the different types of sales jobs available. When looking into a salespersons job, we would

also need to consider how relationships have an influence on a salesperson’s career and why a

person would consider a sales career.

“I have never worked a day in my life

without selling. If I believe in something, I sell it,

and I sell it hard.”

Estëe Lauder


LEARNING OUTCOMES

After completing this chapter you should be able to:

Define and explain the term “selling”

Explain why everyone sells

Explain the relationship between the personal selling and the golden rule

Discuss the reason as to why people might choose a sales career

Enumerate some of the various types of sales jobs

Describe the job activities of salespeople

Define the characteristics needed for success in building relationships

List and explain the 10 steps in the sales process

1.1 INTRODUCTION

Selling is important because it is an integral part of each and every day. For

example, when you visit you nearest Pick ‘n Pay store and need to purchase

something, which is when the selling process begins. We do not always think of

selling as a process because it is quick and easy but it is a process that we

cannot live without.

This chapter will explain the concept of personal selling, how it works and what is important when

people choose selling as a profession or career. It is also very important to consider the influence that

the sales person can have on a customer or potential customer and finally how to be successful in a

selling career.

1.2 DEFINITION OF SELLING

Before continuing to the aspects of selling and personal selling, it is

important to define and explain what selling means. According to Business

Dictionary (2013), “Selling is the communication between a seller and buyer

where information is exchanged to persuade the buyer to purchase goods

or services that will satisfy his/her needs“

The golden rule of selling is always treating the other person the way that you would like to be

treated. Mercedes Benz has the reputation of treating its customers with dignity, respect and honesty

when they purchase a vehicle from Mercedes Benz.


Gary Smith, a British-American business leader, identifies the three different selling methods as it has

evolved over the years. He categorised the different sales persons into traditional, professional and

golden rule. The following is a summary of the characteristics of the different sales persons identified

by Gary.

Figure 1.1: Characteristics of different sales people (Futrell,M. 2014)

1.3 EVERYBODY SELLS

Selling is part of our daily lives from an early age. Selling our skills when applying for a job, selling

ourselves as worthy when going on a date and even urging the teacher to award a good grade are all

examples of how we sell on a daily basis. Therefore, selling is not just for the salesperson trying to

sell you product or service.

1.4 REASONS TO PERSUE SALES CAREER

There are six reasons why an individual would choose to follow a sales career. There are also

different types of sales careers that can be pursued. It is important for a person to understand the

reason why he/she wants to pursue a career in sales before choosing the type of sales career. Let us

consider the different reasons why an individual would choose a sales career.

Service to others

Some people feel the need to be at the service of others. Think of a waiter at a restaurant who is

always friendly and makes you feel comfortable while eating and relaxing. A person with these

characteristics should consider a career where service is important.

Freedom

One of the benefits of a sales career that many people find attractive is the freedom of not spending a

whole day at the office. Many representatives make appointments with customers and drive to meet

them in their own surroundings. This results in representatives planning their working hours and their


travelling time. If they feel more comfortable working from home or at the office in the afternoon, they

can schedule all their meetings in the morning.

Challenge

Some people enjoy a challenging job. Sales can become challenging when it comes to difficult

customers.

Advancement

Advancement means going forward or making progress. Due to the nature of sales being driven by

objectives, goals and targets, an individual would have to work hard to reach and exceed goals.

However there is a clear career path you can advance through from your initial sales job, right

through to sales managers, product managers and corporate sales

Rewards

A career in sales could mean rewards when a sale is successful. The reward could be monetary

recognition from the company but it could also be psychological since the sales person will also feel

good about himself, knowing that he played a part in the company’s success.

Types of sales jobs

There are a variety of sales jobs available in the market. This allows a person to choose in which

direction he/she would like to move in. For example:

a. Selling products in a store.

b. Walking from door to door to sell products or services.

c. Visiting a customer to take his order.

d. Phoning prospective customers and advising them of new products via telephone.

1.5 TYPES OF SALES JOBS

When a person realises the reasons why he/she want to pursue a career in sales, choosing a specific

type of job is easier. Consider the following sales career choices:

Retail salesperson

A retail salesperson would typically be a person who would communicate with a customer in a retail

store to find the product that the customer wants. There are three different types of retail

salespersons namely:

In-store salesperson

Direct seller in a fixed store

Telephone salesperson


Wholesale selling

A wholesaler would typically employ a person to sell or distribute bulk quantities to other

organisations. If the retailer will agree to purchase a much greater quantity of units from the

wholesaler, the wholesaler will accept a slightly lower sales price for each unit and in this way the

wholesaler can maximise his profit. This salesperson would typically sell the products to the following

parties:

Resale to smaller retailers

Organisations using goods to produce other products (manufacturers)

Other organisations that needs the products for normal operation

Direct selling

This is a method used to sell products to customers in a face-to-face manner. An example would be a

door-to-door salesperson who would typically sell products to customers in their own homes.

Selling for a manufacturer

A manufacturer’s representative is any individual who agrees to represent a company and sell their

product or services on a straight percentage fee, which is automatically added to the selling price of

their product or service. This is commonly known as straight commission selling. A manufacturing

sales representative would typically range from delivering milk to persons specialising is technical

industrial products.

1.6 IS A SALES CAREER FOR YOU?

To survive as a salesperson in a continually changing environment, he/she needs to assess and

evaluate themselves to make sure the job is for them. A love for sales needs to be present or

developed over time to ensure success in this career choice.

The abbreviation ‘SSUCCESS’ is used to describe the eight most

frequent characteristics that a salesperson would need to be

successful in a sales career. Think about a medical sales

representative for Pfizer, who needs to visit doctors daily to promote

and introduce new medication. Consider the SSUCCESS factors of

this sales representative.

S – The sales representative needs to have a passion for pharmaceutical products like medicines.

This is important as it contributes to the sustainability of his/her career. A doctor would not be

interested in a product when a representative does not show any interest in his/her ‘own’ product.


S – The representative needs the will to serve the doctor with new and relevant information on

products.

U – The golden rule that was discussed earlier should be applied by placing the doctor’s needs first.

Listen to the doctor and try to understand the needs of the client. Rather than trying to make a doctor

prescribe one of your products, build a relationship in order to mutually fulfil the needs of the doctor

and the selling company (which includes the salesperson), thereby ensuring future sales.

C – Communication is very important when it comes to the medical field. This field is very complex in

terms of different effects medication has on the doctor’s clients. A salesperson needs to be able to

clearly communicate to ensure the doctors understanding with regards to the medication the doctor

will be prescribing to his/her patients. Without this important skill, no salesperson will be able to

survive.

C – A salesperson in the medical field should be a good presenter, a people’s person, well-spoken

and have a broad knowledge of pharmaceuticals.

E – A salesperson needs to think strategically and plan before seeing the doctor. The doctor would

ask questions that the representative needs to be able to answer on the spot.

S – Sales knowledge goes hand in hand with strategic thinking. The representative needs to be able

to know how to approach the doctor with unknown medicines even though the doctor might have

been prescribing the same medicine for the past 20 years.

S – When a doctor decides not to use the representative’s product, he/she needs to know how to

treat the situation. Keeping a positive attitude even though no doctors were interested in your product

is very important for survival. A sales person should have stamina for the challenge because not

every sales attempt is successful.

1.7 CHARACTERISTICS OF A SALES PERSON

Salespeople would usually share some of the same characteristics since it usually requires a certain

type of person to be successful in sales. These characteristics would usually be associated with

those that a ‘nice’ person holds. Think about the friendliest person that you know and use words to

describe this person. These would typically be the same characteristics found with salespeople.

A salesperson needs to be appealing to others as nobody wants to buy a product from a bad-

tempered person. Even though some sales persons do not naturally hold these characteristics, they

would still act as if they do. This builds a feeling of trust between the salesperson and the customer.

The following are ten of the most common traits tha a salesperson should have or project to the

customer.


In an exam/assignment you should be able to explain how each of these characteristics relate

specifically to a salesperson successfully doing their job

1.8 WHAT IS A CUSTOMER

The most important aspect of sales is the customer. Without a customer, there cannot be a sale. You

may have the perfect product or service to offer but if there is no one to sell it to, the company (and

the salesperson) will not exist. It is important to know who the customers are and what their needs

are at any given time.

A salesperson should always remember that he/she is dependent on the customer and not the other

way around. The customer is the purpose of the sale and should be the purpose of the salespersons

career. If the customer prefers not to work with a salesperson, he will take his business to a

competitive company and the sale will be lost to the salesperson and the company he is representing.

Therefore, the customer creates a foundation for sales that result in company profits. Customers are

the lifeblood of any business and the reason why a business exists in the market and is able to

continue with sales. It is very important that a salesperson fulfils the needs of the customer since the

customer deserves the most courteous attention.

Revision Question 1

Why should a salesperson depend on a customer?

1.9 RELATIONSHIP SELLING

Many years ago, a salesperson’s goal was to make as many sales as he/she possibly could in order

to maximise profits for themselves and the selling organisation. They typically pushed customers into

buying things that they did not want or need. No consideration was given to the customer – it was all

about making the sale.

The market for salespeople is continually changing. The new

developing market requires salespeople to serve the wants

and needs of their customers so that people will return and

purchase again. These salespeople want themselves, the

organisation and the customer to benefit from the sale.

Johnston (2009) describes relationship selling as creating a

long term relationship with customers to ensure continuing

business between the customer and the salesperson, which


represents the company. Salespersons must ensure that they understand the customer’s needs and

wants. In relationship selling the customer has one point of contact and is ensured of constant care

by the salesperson. An unhappy customer will go elsewhere to do his business so it is important that

a sales person keeps contact with the customer to ensure that the customer’s needs are met. In turn,

the customer will be satisfied knowing that his qualms and queries will be attended to professionally

by the sales person. This builds customer loyalty. Losing a customer not only has the immediate

effect of losing the sales, but it also results in losing possible referrals that the customer would have

provided as well as losing follow up sales.

In theory it sounds simple to keep a customer happy, however, when one salesperson has a lot of

customers and to keep them all happy takes a lot of time and patience and good customer service.

The ABCS is a method used by many salespeople to ensure that all their customers are attended to.

Revision Question 2

In your own words what does relationship selling mean?

Selling is hard work but very rewarding. Although other jobs could potentially also be hard work, sales

could sometimes take its toll on salespeople, especially if the salesperson is working purely on

commission. Salespeople have customers in different areas so it results in the salesperson travelling

far distances and sometimes sleeping away from home. These are some of the complexities that a

salesperson faces that makes selling different to many positions.

A salesperson represents the company that he/she works for and it is important that the sales person

remembers this at all times. The salesperson should always be representative of the image that the

company wants to portray because customers judge the company in the way the salesperson

portrays himself/herself

Unlike a normal office bound job, a representative does not have a supervisor looking over his

shoulder the whole time. However, the results of the salespersons work are reflected in the

company’s monthly results and will be measured to see if the salesperson achieved his monthly

goals. A person who decides to follow a career in sales must have a high level of self-discipline to

ensure success.


Revision Question 3

What are the main reasons why a sales job is different to other jobs?

1.10 THE PROFESSIONAL SALESPERSON

What does a professional salesperson do? A sales person is often more than a door to door

salesperson. Some people sell expensive equipment to customers – for example – bulldozers and

excavators costing millions of Rands. Depending on the product that the sales person is selling, it is

often required that a salesperson has some technical knowledge that will assist the customer to make

a decision.

A professional salesperson must portray professionalism at all times. He can portray professionalism

by applying the following basic skills (POLC).

Planning

Organising

Leading

Control

There are also nine functions, when applied correctly, can assist the salesperson to flourish in his job.

These nine functions are as follows.

1. Although salespersons strive to build long term relationships, it is also important to create new

relationships and look for new customers. Finding a new customer is difficult; keeping them is

even more of a challenge.

2. One person knows at least 200 people. When a customer is happy, he wants to share his

experience by telling his friends, family and acquaintances about his experience. This attracts

even more customers.

3. Building long term relationships makes the relationship between the salesperson and the

customer comfortable. This will lead to repeat purchases.

4. Customer problems can be solved when a salesperson plans, leads, organises and controls

the environment, product and the business.

5. The salesperson should always be ready to provide a sales service to a customer. After sales

service is the most common type of service that a customer might require.

6. WOM (Word of Mouth) is a very powerful advertising tool and it does not cost any money.

WOM is when one person tells another of a product or service. This is a good example of how


one customer can help a salesperson find more customers and in the process, sell more

products.

7. A salesperson should plan to include after sales service in his normal schedule. Customers

often judge a product based on the after sales service.

8. A sales person should be friendly and helpful and honest. If a customer feels that he can trust

the sales person, it could influence him to purchase the product. Influencing a customer’s

decision is not a way of selling something the customer did not need, but rather to educate the

customer on what he/she wants.

9. A salesperson should use his/her POLC skills to gain insight into what the customers want.

This information is used for research and the development of new products.

Revision Question 4

Name and explain any 4 out of the 9 functions a sales person performs

1.11 CATEGORIES OF SKILLS REQUIRED

Although a sales career sounds like an easy job get do, it requires various skills. When an

organisation employs a new representative, they will look for the following skills in the individual to

make sure the person will survive in the position.

Conceptual skills: Conceptual skills are the ability to think creatively, understand and analyse

complicated and abstract ideas. If a salesperson can understand the customer’s thinking in a certain

situation, he/she will know what to avoid and what to emphasise.

When a salesperson understands the needs of the customer, he/she will understand how the product

fits each individual customer. This information will assist companies to design better products that

customers will purchase.

Human skills: Human skills are needed to understand people, how they think and how they react.

This information also leads to knowing how people can be influenced in certain situations. A very

important part of human skills is the ability to relate to customers and their needs.

Customers will also rather do business with people that they personally like. This does not

necessarily need to be the personality of the salesperson.

Technical skills: A salesperson needs to have some technical skills as it will be necessary when

demonstrating or presenting the equipment or products to customers. Understanding the technical


lingo and the performance of products relating to other market related products can persuade a

customer that your product is the best.

Selling is second nature for everybody as it is part of our daily lives. This is one of the reasons why so

many people pursue a sales career. When choosing this career path, a person will be faced with

many questions to ensure that the correct type of sales career is followed as there are many.

People choose a career in selling as it is different to most other jobs. Although it might seem simple,

there are skills that a person would need to acquire in order to survive this profession. Understanding

the importance of a customer and understanding their needs are important aspects for the success of

a sales person. The importance of building long-term relationships with a customer also ensures on-

going sales.

Revision Exercises (Remember the answers are at the back of the learner guide)

1. Why choose a sales career?

a) The challenge of selling

b) The freedom of being on your own

c) The opportunity to provide service to others

d) You are looking for a behind the desk job

2. Which of the following is not a function that a salesperson performs?

a) Provides service to customers

b) Builds goodwill with customers

c) Forcing the customer to make a purchase

d) Builds long-term relationships with customers

3. The skills required by sales person can be broken into 3 categories, being conceptual,

human and technical. Explain each of these 3 skills and provide an example to show your

understanding.



Study Unit 2: Relationship

Marketing – Where personal

selling fits

This chapter will give insight into what the marketing concept means and how relationship marketing

should be used to create a better customer oriented organisation. Personal selling will also be

discussed in detail together with the roles of personal selling.

“If you are not taking care of your customer, your

competitor will”

Bob Hooey

LEARNING OUTCOMES



Define the terms marketing and marketing concept

Describe the evolution of customer orientation

Answer the questions, why marketing is important in an organisation

Illustrate how an organisation’s 4P’s are coordinated for maximum sales

Explain why an organisation should listen to its customers

Discuss the role of personal selling

2.1 INTRODUCTION

Marketing is a very important part of business when it comes to customer’s wants and needs.

Marketing is not only needed to boost sales and revenue but also to satisfy the needs of customers

through a sales person.

The way in which salespeople do business has drastically changed over the years as the business

environment changes. Today, it is a critical part of business to maximise sales, develop new

products, develop new markets and provide quality service to its customers.

Some salespeople develop such good relationships that it becomes a partnership in a way that has

positive results for both the salesperson and the customer. E-selling is one new way of using

technology to create and build relationships with customers.

2.2 DEFINITION OF MARKETING

According to Keefe (2008), marketing is the activity that creates value for customers and the society

at large. This broad definition shows that there is more to marketing than just advertising. A firm that

wants to market new flavoured water has to understand the following important concepts:

Need/Want

The most important is to determine whether this flavoured water will satisfy the target market’s needs.

The firm needs to create a want for the product using marketing by advertising a celebrity, like Wayne

Rooney (famous soccer player), drinking the flavoured water.

Product success

The success of a product is determined by the consumers but can be influenced by using different

marketing techniques. Unsatisfying products will be forced from the market over time. The flavoured

water can be placed on the market and perhaps be an immediate success. On the other hand, the

water can be marketed to create a want among potential customers which will ensure success.

Marketing includes…


Among other, marketing includes selling, advertising, promotion and product development. This

means that the flavoured water should have an eye catching label, promoted by a special in store

promotion and advertised on television as an example. There are many other methods of marketing

that a marketing manager can use.

When two people exchange products, marketing will always be involved in the exchange process in

some form. This could include two strangers who wish to advertise their product on the internet or in

a book. Two friends agreeing to switch computer games will also require an amount of marketing just

like the two strangers. Some level of marketing will be necessary even if it is as simple as this friend

asking the other what they are planning with the specific product. It is important to realise that no

money exchanged hands but instead something is given in return.

A transaction can be the same two people but with a payment involved. Transactions also need

marketing in some form in order to start the selling process.

Revision Question 5

Write a short definition of marketing in your own words?

2.3 CUSTOMER ORIENTATION EVOLUTION

Businesses have gone through many changes through the years. Consider the illustration below in

terms of how car dealership changed during the years.

Production Concept

In the olden days, the car dealerships would order a car and place it on the showroom floor until

somebody came to the dealership and showed interest. They did not think about what the customer

would like to have but rather how they wanted to produce the product. A very good example is the

famous words of Henry Ford when he said that his customers can have the car in any colour as long

as it is in black.

Selling Concept

Later on, it was clear that the production concept was not going to be able to continue in this way as

the customer’s needs had to be fulfilled. The change came after the war when different products

became available between which customers could choose. For example, not only Ford was available

but other brands like Chevrolet entered the market and took a piece of the market share. This would

mean that these brands had to compete to attract customers.


Marketing Concept

The next phase was a marketing phase rather than just selling. In this phase, brands like Ford

realised that their mind set should change to a customer oriented way of doing business. Marketing of

products changed the entire theory of how business should operate. There are three fundamental

beliefs when it comes to the marketing concept which is very important:

Planning and operations is customer oriented. This means planning a product for the

customer.

Goals should be profitable sales volumes. The more customers you satisfy the better sales

volume which will lead to better profits.

Marketing activities should be organisationally co-ordinated. The organisation knows what

they created and how it satisfies customers and should be marketed that way.

2.4 MARKETING IMPORTANCE IN A FIRM

In today’s business environment, marketing has become the most critical factor that guides planning

in an organisation. Marketing people have four basic objectives in any organisation.

Maximising sales of existing products or service to increase profitability and also customer

satisfaction.

Developing new products to satisfy a wider range of customer’s needs.

Developing new markets by creating new unseen products which may attract customers due

to its uniqueness.

Provide quality of service in order to keep customers happy and thereby continue building a

strong organisation.

Excellent service is also part of the marketing in a firm. A product sold with excellent service is worth

much more than a product sold with bad service. When a customer walks into a Ferrari garage,

exceptional service can be expected. This contributes to the price of the product and inflates it.

Together with a good product and using marketing correctly, an organisation can generate sales and

be known for quality products and services. Excellent service creates true customers and will pay off

by means of maximisation of sales.

Revision Question 6

When selling a product with excellent service, what is the benefit to be drawn from the salesperson’s

point of view?


2.5 ESSENTIALS OF A FIRM’S MARKETING EFFORT

A firm should have the ability to determine the needs of their customers by understanding:

Firstly who the customers are

Secondly why customers like the product and

Thirdly how the customer perceives the product

Create and maintain an effective marketing mix

The four elements of marketing, called the marketing mix, are very important. These four elements

are also called the 4 P’s of marketing. The marketing manager has the responsibility to determine

how each of these elements would work the best for the specific product. A new product on the

market should be defined in terms of the 4 P’s. Let us analyse a new farmer that wants to sell milk on

the open market.

Product: The farmer’s milk is a tangible product which is considered to fall under the category of

‘goods’.

Price: The farmer needs to decide how the milk will be priced. There are many different pricing

strategies that the farmer can use to get the product on the market. The farmer can decide to sell the

milk cheaper than any other milk product or brand it as an elite type of milk that is more expensive.

Promotion: The product needs to be promoted to the public. The farmer would need to decide which

of the promotional mix (in the diagram above) would work best for the milk product and which will

reach the target market.

Place: The farmer needs to decide which distribution channels will be used to get the product out to

the customers. The farmers should also decide which stores will sell his/her products. Milk is usually

sold by the small to large retailers.

Revision Question 7

If you were the marketing manager of KFC, provide a short explanation of each of the 4 p’s being

applicable to your business

2.6 RELATIONSHIP MARKETING

According to Techopedia (2013), relationship marketing is the process of building customer loyalty,

customer relationship and the value of the product through marketing activities. This can be achieved

by using the 4 P’s of marketing.


The objective of relationship marketing is the exact opposite of a single sales transaction like buying

milk from a spaza shop. Instead of a customer walking in, buying the milk and walking out, the shop

staff will attempt to get to know the customer. A relationship will be established to ensure repeated

sales and a better understanding of what the customers wants as well as why they want certain

products.

2.7 RELATIONSHIP MARKETING AND THE SALES FORCE

Salespeople are the ones who should implement relationship marketing, an

example of this using the above example is the salesperson greeting the

person by name and already knowing what the customer wants to purchase

(based on past visits) and telling them what is out of stock before they have

to walk through the entire store trying to find it. This is important in order to

boost sales, revenue and services rendered to customers. Personal selling

through sales force builds relationships and is an essential part of the

marketing mix.

There are a few questions which can be asked to define the role of sales force in an organisation

which are:

How much selling effort is required?

Is sales force the best tool compared to other marketing strategies?

What type of sales activities will be necessary?

Can strength be gained as a result of sales force?

These questions should be asked when the decision arises whether or not to use a sales force. The

answers for these questions would typically come from the organisation itself due to the unique

structure of the organisation.

An industry in South Africa which is very common is the building of swimming pools which is due to

the climate. The organisation who builds swimming pools should make a decision whether they want

to use sales force and how it will benefit the customer and organisation. Let’s implement the question

to the example.

Building a swimming pool can be expensive and needs a lot of persuasion from a seller or

salesperson.

The organisation should ask:” will an advertisement on television or any other marketing tool

work better than a salesperson?”

The salesperson will have to take the customers through the different products as well as after

sales service.


Using a salesperson will attract more customers in this case because this industry gets most

of its leads from WOM (Word of Mouth).

2.8 LEVELS OF RELATIONSHIP MARKETING

There are three general levels in which a relationship between a salesperson and a customer can fall.

When the levels of relationship marketing are analysed, the 80/20 principle should always be

considered. Kruger (2010) describes the 80/20 principle as 80% of the sales would usually come from

20% of the customers5. This means that if you keep the regular customers happy, 80% of sales would

already be made. But 80% of the customers cannot be forgotten.

There are 3 levels of relationship marketing being: Transactional, Relationship selling & Partnering,

each explained in depth in your prescribed reading

Revision Question 8

Provide a brief explanation of each of the levels of relationship marketing as well as provide a

practical example of each to show your understanding of each level

2.9 PARTNERING WITH CUSTOMERS

The ultimate outcome of relationship marketing is a partnership. When a customer and a salesperson

decide to create a partnership, the main focus of the partnership would be to look after the needs of

both parties involved for the future. A partnership will be a continual process to ensure satisfaction for

both parties involved. Therefore benefits will increase for both parties.

An added benefit to the organisation will be that the customer can easily share information like

product satisfaction, expectation and what the customer wants and needs. In a partnership, a

customer can tell the salesperson what aspects they like and do not like of the product.

In a partnership the parties are no longer referred to as a buyer and a seller, but rather as partners.

The product will be sold at the lowest possible price and the highest possible margin because these

two parties would work towards the same objective.


2.10 THE NEW CONSULTATIVE SELLING

Due to customer’s’ needs becoming more and more complex, salespeople need to adjust to the

market as it changes. The manner, in which sales were made, changed from creating a product and

waiting for it to sell, to a product with additional services and value added products/services which fits

the customer’s actual needs. The current business environment needs salespeople to take on the

roles of team leaders, business consultants and facilitating long term relationships.

Figure 1.2 Roles to consultative selling (Futrell.M. 2014)

According to Business Dictionary (2013), Consultative selling is personal selling where a salesperson

needs to take on the role of a consultant to help the customer identify the needs before suggesting a

product that will satisfy a need. It is a new type of personal selling which rose from the change in the

market as a result of customer needs.

Organisations like Old mutual, Santam, Sanlam and Liberty are leaders in consultative selling and

helped structure the way consultative selling works in South Africa.

These organisations sell products like retirement funds, annuities,

insurance and investments to name only a few. The salesperson

normally meets with the customer in order to understand the customer

needs, thereafter a recommendation is made on the products that will

suit the customer’s needs. These salespeople also provide a

personalised portfolio to ensure that the customer’s needs are completely satisfied.

Revision Question 9

1. What are the three roles of consultative selling?

2. Consultative selling requires a sales person to take on 3 roles, briefly explain each role.


2.11 E-SELLING: TECHNOLOGY AND INFORMATION BUILD RELATIONSHIP

In order for a salesperson to become successful in consultative selling, he/she needs to continually

gather information on goods, services, customers and competition to positively influence a customers

buying decision. Technology makes gathering of information possible which is important to improve

sales and service performance.

Computers, cell phones, tablets, internet and email are things that can facilitate e-selling as well as

provide instant access to the above named information. A salesperson who

installs window blinds can use an iPad and internet to instantly show a

customer the products on the organisations website, calculate a quote and

check product availability. A cell phone, email and internet will increase

efficiency and speed of a salesperson which could be the difference between

an accepted quote and a rejected quote. You can just imagine how long it will take the blinds

salesperson to drive to each blind supplier to find prices and buy stock. Today we can easily send an

email or call the supplier with an immediate answer to questions.

A customer will rather do business with a salesperson who is fast and more accurate than someone

who takes and entire week to gather information. In the same way, a

customer would rather do business with a salesperson that makes it easier

to do business with. These days, customers can place orders, check stock

availability and pay on - line. Smaller organisations may not be able to use

expensive technological equipment, but will definitely be worth it to use this type of equipment.

Many organisations believe that new technology like iPad’s are worth the price paid as it will lead to a

decrease in travelling time which increases the productivity of the salesperson. It is also believed that

it makes customer service much easier for these salespeople. Imagine a restaurant where all service

ambassadors have iPad’s which are linked the kitchen. The service ambassador would not even

have to walk all the way to the kitchen to pass the order to the kitchen staff.

2.12 KEY TO SUCCESS

Probably the most important question to be asked is: What is the key to success? The answer is

simple but could be difficult to implement.

Firstly, the organisation should know, understand and satisfy what the target market needs with

excellent products and services.

Secondly, marketing is the vehicle for achieving success. The marketer’s main contact should be the

salespersons as they can give relevant information on how to produce sales, profits and customer

satisfaction.


Thirdly, the 4P’s will aid the salespersons efforts. The organisation will provide the 4P’s by telling the

salesperson what products to sell, the place where it should be sold, distributing products and how to

promote the product. The salesperson should provide the following information when the organisation

provided the 4P’s:

Analyse the needs of the customers and provide this information to the organisation. The

salesperson will need to follow customer trends and preferences and provide this information

to the organisation in order for them to ensure their products fit the needs of customers.

Present product benefits to the customers. The salesperson will inform the customer on what

it is that they can buy and the reason why these products will be beneficial to them.

Gain commitment from the customers. The salesperson should gain commitment from the

customer to ensure continual sales to this customer.

Provide the customer with service and after sales service. This is important as it ensures

future business with the customer and after sales service keeps customers happy.

With all these factors in place, the salesperson and customer can establish a long term relationship

together.

Revision Question 10

What is the key to success?

2.13 CONCLUSION

Now that we have a better understanding of how a salesperson builds and maintains relationships

and partnerships, it is very important to understand that the sale is for the benefit of all involved. It will

increase revenue for the organisation and satisfy the customer and salesperson in more ways than

one.

Salespeople need to adjust the way in which they work with customers as the business environment

changes. Ten years ago, door to door was a popular way of marketing and selling products. Today,

other methods of marketing replaced door to door sales as people feel that it is not save to invite a

stranger into your home. This is just one example of how organisations and salespeople have had to

adapt to the changing environment. A more relevant example is the internet and how it has changed

sales.



1. The 3 levels of relationship marketing are:

a. Transaction selling, relationship selling & personal selling

b. Relationship selling, personal selling & Partnering

c. Sales management, Partnering & transaction selling

d. Transaction selling, Relationship selling & Partnering

2. Which of the following is incorrect?

a. Consultative selling is about wanting a long term relationship with their customer

b. Consultative selling is helping the customer achieve strategic short & long term goals through

the use of the seller’s good/service

a. Consultative selling is when the sales person always focus on the customers’ needs when

developing recommendations

b. Consultative selling is when the sales person consults with his manager to plan his territory

3. Discuss in your own words what the primary goal of business is.



Study Unit 3: Ethics

In this chapter we will explain what the influences on ethical behaviour are and what is involved in

managing the sales ethics. We will describe the management’s ethical responsibilities and the

international side of ethics. Ethical dealings among salespeople, employers and customers are very

important and will be seen in the components of the Golden Rule.

“I do not believe in immortality of the individual,

and I consider ethics to be an exclusively human

concern with no superhuman authority behind it.”

Albert Einstein


LEARNING OUTCOMES


Explain what influences ethical behaviour

Define management’s ethical responsibility

Discuss ethical dealings among salespeople, employers and customers

Describe the international side of ethics

Explain what is involved in managing sales ethics

Write a short essay on the components of the Golden Rule

3.1 INTRODUCTION

Salespeople are and will always be influenced by ethical decisions. There are many things which can

influence a salesperson’s ethical behaviour but fortunately there are many guidelines which a person

can follow to ensure ethical behaviour.

An organisation’s management should take the responsibility of ensuring ethical behaviour for their

staff as well as managing the ethics in the organisation. Management can send emails and put up

posters to create awareness among employees on how to be ethical.

3.2 INFLUENCE ON ETHICAL BEHAVIOUR

Decisions made by an organisation’s management in terms of ethics will play a major role in how

ethical employees perform in their jobs. It is therefore the organisation and its employees who can

influence a person to be ethical or in some cases unethical. When the CEO of a solar heating

organisation tries to sell cheap fake products from China, claiming it is proudly South African, some of

the organisations employees will follow the same unethical trend.

A person’s moral development can be broken down into 3 different levels.

Level 1: Pre-conventional

On this level a person would look after his/her own interests by behaving ethically. A simple example

would be a person who would drive the speed limit just to stay out of trouble. When driving in a rural

area where there are no police or cameras, this person would break the speed limit without thinking

twice.


Level 2: Conventional

Salespeople falling into this level would behave ethically because others would expect it from them.

If an organisation is all about ethical behaviour, a salespersons boss will expect him/her to act in a

certain manner when working with customers.

Level 3: Principle

This individual will be driven by his/her own set of moral and ethical standards. This would be a

person who follows the ‘right’ way of doing things regardless of the consequences. He would also

guide others in behaving ethically. Think of the CEO of the same solar heating organisation. If the

CEO always does the right thing, the employees would follow his example.


How does a sales person on the pre-conventional level feel about ethics?

3.3 ETHICAL GUIDELINES

Ethics starts with you. Picking up a wallet with money in it leaves a person with an ethical question of

whether or not to return the wallet. From an ethical perspective there is no difference between

keeping the wallet and an illegal bribe to ensure a big contract for your own company. A person who

has been obtaining contracts unethically for many years would not think much of it as it is just a part

of daily business.

A common problem that is arising in South Africa today is bribing police officers. Many people would

rather bribe a police officer than pay the fine which should have been paid. This is totally unethical

and illegal!

Ethics are all about making a decision about wrong or right. The question is, how a person decides

for him/herself what is right and what is wrong. A person would need to sit and examine the problem

from an outsider’s perspective and make a decision on what is right.

It is important to understand that there is a difference between the

golden rule and reciprocity and how these connect to ethical

behaviour. Reciprocity is beneficial to both parties involved in a

sales transaction for example. The golden rule says that a

salesperson should do something for the client without expecting

something is return. A salesperson should find the link between

these two aspects.



How does reciprocity fit in with the golden rule?

3.4 MANAGEMENT’S ETHICAL RESPONSIBILITIES

As mentioned previously, the management of organisations plays a big role in influencing employees

with regards to ethics. Employees will follow the leader when management decide to make ethics an

important part of daily operations. An example would be if an organisation makes one of their Golden

Rules, ethics.

According to Business Dictionary (2013), ethical behaviour is to act in a way that is acceptable and

consistent with what others typically think is good values. These values can be remembered as a

couple’s wedding vows.

There is an ethical dilemma which occurs as a result of the fact that there are no published ethical

standards or guidelines. When you are placed in a situation and you have to make a decision, it could

be tricky to make the correct decision because there are no guidelines to ethical behaviour standards.

In South Africa, it would be considered unethical to give a gift to the person who could potentially

award you a contract as this would be seen as bribery. But in China it works exactly the opposite way

where it is considered almost compulsory. The ethical dilemma comes in to play when an African has

to do business with a Chinese organisation as the parties would have to adapt to each other’s

cultures.


What are the values a salesperson should possess to be ethical?

3.5 ETHICS IN DEALING WITH SALESPEOPLE

Organisations need to place trust in their salespeople because they use organisational assets.

Sometimes salespeople might misuse these assets in an unethical way. So many times we see

police officers driving around with their families in police vehicles. In the same way, salespeople can

misuse a company car, products and money. This is unethical and could be for one or more of the

following reasons:

Personal gain – You do not have to use your personal car or petrol


Bribes – Gaining something above the normal commission. For example, a customer gives

the salesperson monthly soccer tickets in exchange for a free service on equipment bought,

outside of the organisations policy.

Once again, the problem is that salespeople are not closely supervised due to the nature of their job.

Salespeople can easily use work time to do shopping. Another way of being unethical is by delivering

more merchandise to the customers than needed just to show more sales at the end of the month,

resulting in higher commission. This unfortunately affects others due to month end prizes or bonuses

taken from other colleagues. The ‘bad apple’ can also influence these colleagues to follow the trend

of unethical behaviour.

3.6 SALESPEOPLES ETHICS IN DEALING WITH EMPLOYER

Ethics does not only apply when working with customers but also with the employer. It would not help

being 100% ethical in terms of the customer and one do not comply with ethics when it comes to the

employer. There are various common ethical problems that organisations can encounter with regards

to their sales force.


Discuss any 3 ethical problems that organisations can encounter with regards to their sales force and

provide a practical example to show your understanding

3.7 ETHICS IN DEALING WITH CUSTOMERS

The most common ethical decisions salespeople could face include bribery, misrepresentation, price

determination, tie-in sales, exclusive dealership, reciprocity and sales restrictions. These should be

avoided at all times.


3.8 INTERNATIONAL SIDE OF ETHICS

Although each country has its own laws and regulation, ethics remains the same all around the world.

What is considered ethical in Africa is in principle considered to be ethical in the North America or any

other continent in the world. Remember that when doing business with somebody or an organisation

elsewhere in the world, the laws of your country will still apply. Ethics works in exactly the same way.

3.9 MANAGING SALES ETHICS

An organisation and its management should continually strive to manage ethics in the organisation by

informing employees on the principles of ethics.

Organisations, on average, are concerned about social responsiveness and ethical climate. There

are some methods for management to help an organisation to be more responsiveness.


Briefly explain any 4 out of the 7 ways in which management can help an organisation be more

responsive

3.10 ETHICS IS BUSINESS AND SALES

An organisation that manufactures products that are worthwhile and which follow an ethical way of

manufacturing should be supported by its customers. Consider the example of a plastic

manufacturing organisation which dumps its waste in the rivers of South Africa. These organisations

should not be supported as they are not following the ethical and legal way of doing business.

Organisations should be running their businesses responsibly. They should not compromise positive

belief systems. The staff working for an organisation should be more important than the products,

finances etc. All organisations need ethical people to work and create an ethical environment. The

support of an organisation values can be built on the following fundamentals indicated on the diagram

on your right

3.10 GOLDEN RULE OF PERSONAL SELLING

The golden rule of personal selling should apply to more than just the salespeople. It should also

apply to all other aspects of the business like marketing. It is important to know and understand that

ethics should rule an organisation. The golden rule and ethical behaviour therefore means treating

others fairly and truthfully.


3.11 CONCLUSION

People in an organisation have to make ethical decisions on a daily basis. Many things can influence

an employee to behave unethically but an organisation can set ethical guidelines in order for

employees to act ethically. Ethical behaviour is especially important between the organisation, its

employees and the customer


1) Which of the following is incorrect in terms of examples of common ethical problems

sales personnel face?

a. Bribes, misrepresentation, price discrimination

b. Bribes, exclusive dealership, sales restrictions & price discrimination

c. Tie-in sales, Bribes, joint ventures, reciprocity & sales restrictions

d. Misrepresentation, price discrimination & exclusive dealership

2) In your own words explain the following terms mean, as well as use an example to show

your understanding

a. Price discrimination

b. Reciprocity


Part 2: Preparation for

relationship selling

Study Unit 4: The Psychology

of Selling

In this study unit we explain the differences between a feature, advantage and a benefit of a product

and why people will buy benefits rather than features or advantages. We will also be looking at the

techniques for determining a customer’s needs, the factors that influence the customer’s buying

decision and show why buying is a choice decision. A SELL sequence will be constructed in order to

know when and how to use a trail close.

“If you do build a great experience, customers tell

each other about that. Word of mouth is very

powerful”

Jeff Bezos

CEO of Amazon.com


LEARNING OUTCOMES


Explain the differences between a feature, advantage and a benefit

Construct a SELL sequence

Know when and how to use a trial close

Explain why people buy benefits rather that features or advantages

Enumerate techniques for determining a customer’s needs

List factors that influence the customer’s buying decision

Show why buying is a choice decision

4.1 INTRODUCTION

There are many different reasons why a potential customer would decide to buy a specific product. It

is therefore important for a salesperson to understand the thought process to determine the approach

necessary to make a sale.

A salesperson can follow guidelines to ensure the maximisation to a successful outcome. When

attempting to make a sale, the salesperson should be aware of the buying decision, technological

developments and information as well as how satisfied customers respond.

4.2 GOLDEN RULE: BENEFITS

When selling, an employee should understand the psychology behind the reasons why people buy

and the benefits which can be gained. It is important to remember that customers depend on the

seller to tell the truth. Remember that a customer wants to trust you as a salesperson.

Ethical behaviour and ethical service builds a relationship with customers based on the truth. Ethical

behaviour and the truth would mean that the salesperson should be doing the right thing even if it

means that no sale will be made. It would be better to be honest with regards to the functions of the

equipment that you sell, instead of trying to convince a customer to purchase it, whether he needs it

or not.

4.3 WHY PEOPLE BUY

Salespeople want to understand more about how customers make their decision to buy or not to buy

a product. The customer makes the decision based upon an internalised thought process. This

thought process is sometimes referred to as a black box because we cannot see into the buyers mind

and thought process. For example, a customer looks interested and says it is the best product he/she

has ever seen but despite this, still decides not to buy the product. The salesperson needs to


understand more about the decisions a customer makes. Salespeople have been looking for the

answers and trying to understand as much as they can about customer responses.

Figure 1.3: The black box approach (Futrell.M. 2014)


Briefly explain the black box approach, by using a practical example to show your understanding

4.4 PSYCHOLOGICAL BUYING

There are many psychological methods a salesperson can use to maximise the influence on the

customer or buyer. These would include motivation for buying, best value for money and awareness

of needs. The salesperson should be aware of these motivations for buying, perceptions, attitudes

and personality that might influence the purchasing decision. The salesperson needs to create almost

a necessity for the product when presenting it to the customer which satisfies their needs.

A need can be described as a lack of something that is desired, while a want can be described as a

customer that would like to have something in addition to needs. A person who has to get from Cape

Town to Maputo needs transport but the person probably wants a BMW to ensure comfort.

There is, however, something called economic needs. An economic need would mean that the

product satisfies the customer in more ways than one. This product would include quality and

convenience of service.

The buying decision can be complicated by their need of awareness; the 3 levels of awareness have

been identified below:

Conscious: A customer would be fully aware of his/her needs and also know exactly what product

he/she wants to buy. This customer wants a 42” 3D LED Samsung television.

Preconscious: On this level, the customer is not fully aware of what he/she wants to buy. The

customer is open to discussion and can be persuaded. This customer wants a 42” television but is

unsure of the make. This could mean that the customer can be influenced to buy a Telefunken or LG.


Unconscious: A customer on this level is not sure if and why they would buy but despite this would

still buy a product if persuaded. This customer has a television at home and does not need a

television but if a salesperson convinces that the Hi-Sense is the best television, the customer will

buy it.

The diagram below, recreated from Stokes (2008), shows the different levels of products to better

illustrate the product benefits at each level when a salesperson

persuades a customer to buy a product. A core benefit is the basic

benefit that the product will give a customer. The actual product is

the benefit that a customer would expect from the product. The

augmented product has some benefits in addition to the product

which adds value and makes the sale of the product easier.


Name a characteristic of a person who is on the conscious level of awareness.

4.5 FABULOUS APPROACH TO BUYER NEED

The additional benefit of a product, or the augmented product, is used by salespeople to ease the

sales process. This is called benefit selling and is one of the most powerful selling techniques. This

method of selling is sometimes referred to as the FAB selling technique.

Organisations train their salespeople on the products features, advantages and benefits in order for

them to sell the product with more confidence and success


Explain the difference between feature, advantage and a benefit, in terms of using a car as a practical

example

4.6 DETERMINING IMPORTANT BUYING NEEDS

In order to be successful in sales, the salesperson has to understand the needs that the buyer might

have in order to emphasise the product benefits which would fit the needs of the customer. When a


salesperson sells clothing to a store that still has a lot of stock and the manager is worried about the

quality of the material, focus on the quality of material in the sales presentation instead of delivery

time. To better understand the customers buying need, a salesperson can use the LOCATE method.

L – Listen to customers as they will give clues to exactly what it is that they want and need. The

clothing store will make it clear that they want the best quality material for example.

O – Observe the customers body language and reactions when proposals are made, this can also

give clues.

C – Combine all the question, answers, customer’s views and what you have heard to gain a bigger

picture of how to satisfy the needs of the customer.

A – Ask questions to learn more about the needs of the customer. What do they need in addition to

the product? What benefits do they want from the product?

T – Talk to others to gain insight into whether the customer is happy or not. For example, ask the

secretary whether they are happy with the copy machine that the manager bought as the secretary is

the one using it daily.

E – Emphasise the customer’s needs by looking at the situation from the customer’s point of view.

By using the LOCATE method, the salesperson can use these results to match the customers’ needs

to the product benefits. This can also be shown to the customer to prove that the product will satisfy

his/her needs. Asking questions is one way of uncovering needs which is referred to as a trial close.

A trail close is discussed in more detail in the next section.

4.7 THE TRIAL CLOSE

The trial close is that question salespeople ask you in the middle of their presentation or phone call.

Typical questions are:

“This is a good offer, isn’t it?”

“Wouldn’t you like to own this product?”

“Do you like what you hear?”

When asking the trial close question, the salesperson is only asking the customers opinion on the

product.

It is important to understand that the trial close is only asking the prospective customers opinion, not

to make a decision to buy. Recall the positive reactions and show how negative reactions are

changed into positive ideas but do not discuss.



What does a trial close mean and give an example?

4.8 SELL SEQUENCE

The SELL sequence should be followed when a salesperson sells a product or service to a

prospective customer. When the sales presentation is complete, the salesperson should listen to

what the customer has to say. If the customer has positive feedback, the salesperson would know

that he/she is on track in order to make the sale.

Consider the following example to understand the selling sequence better. Building equipment sold is

made of stainless steel (feature) and won’t rust (advantage). The real benefit is that it reduces your

replacement costs, thus saving you money (benefit). That’s what you are interested in it-right? (trial

close)?


Name the four steps that can be used to incorporate the sell sequence into the trial close

4.9 CLASSIFYING BUYING SITUATIONS

The salesperson should analyse the situation that he is in. An example can be the difference between

buying bread and buying a car. A customer would much easier buy bread than a car. When a

customer buys a car, the process of selecting, organising and interpreting becomes more intense and

difficult mainly because of the price and as it is a long term decision. Most people would compare

information on different brands before making a decision to buy. A buying situation can be classified

into three different categories as different situations occur being Routine decision making, limited

decision making & extensive decision making

.

Figure 1.4: Decision making (Futrell.M. 2014)

The challenge from a salesperson’s perspective it to equip a customer with the necessary information

and knowledge to understand how a product will satisfy his/her needs. A good way of understanding


a customer’s decision is to determine the customer’s decision making process to better understand

why the customer would accept or decline the offer.


Name an example of a product on the extensive decision making category?

4.10 BUYERS AS DECISION MAKERS

Due to this massive exposure to the internet and other continually expanding technology, customers

can gain information on many products quickly which influences the buyer’s decision making. A

potential customer who is interested in buying a personal computer will have to go through the five

basic steps of decision making in order to buy the product that best suite his/her needs.

Purchase dissonance, which is the tension over whether the right decision was made, might occur

after a purchase. A salesperson can help lower the purchase dissonance by:

Showing the customer how to use the product

Be realistic in the claims made about the product as it can create

dissatisfaction. Do not say that the vacuum cleaner can lift a brick if it

cannot even pick up hair from a carpet.

Reinforce a buyer’s decision by reminding, persuading and influencing.

After sales service is very important in this regard as the salesperson

should ensure no problems exist.


What are the 5 basic steps in the decision making process, explain using the practical example of

buying a car?

4.11 SATISFIED CUSTOMERS

It seems like many people and organisations forget this very important sentence:

An existing customer is easier to sell to than a new prospective customer. This is

the main reason why after sales service is one of the most important aspects of

selling a product or service.

When selling a telephone to a customer, it may take a while to explain how the telephone works and

what different functions it has. But when that customer returns to buy 20 additional phones for the


rest of the office, the sale is much easier as the customer already understands how the telephone

works. Missing out on the sale of 20 additional telephones just because there was not any after sales

service to satisfy the customer would be a huge loss to the company.

4.12 A CHOICE DECISION

A salesperson does not need to be a psychiatrist to understand how a potential customer makes

decisions. Something that would be to the benefit of a salesperson, however, is to understand the

factors which can influence a customer’s decisions. A salesperson can make use of questions to

develop a sales presentation to ensure that it will satisfy the customer. By answering the question a

salesperson would understand how the customer makes the decision to buy or not to buy. The

following are some of the questions.

What type of product is desired? - The salesperson and organisation might see a gap in the

market. A gap in the market means that there is a demand for the product because similar

products do not have the same features.

What type of buying situation is this? - If this is an expensive product, a customer needs a lot

of information to make a decision. The salesperson needs to understand that his/her

presentation must include all relevant information.

How will products be used? - If this product is used every day, it is important to emphasise

that fact that it is very reliable.

Who is involved in the buying decision? - If it is PlayStation 3 console that the salesperson is

selling, you can almost be sure that the children will be part of the purchasing decision. It

should be noted and incorporated to ensure that the children also understand the

presentation.

Finally, the most important factors that should be understood are what the customer needs in order to

make the final buying decision:

They perceive a problem or need. If there is no need, there will be no sale, as easy as that.

Desire to fulfil need. The salesperson can create a need in the mind of a customer but if the

customer does not desire to fulfil the need, the customer will be unlikely to buy the product.

If the customers realise that the product will be able to satisfy their needs better than any of

the competitor’s products.

If there is a will to buy the product specifically from you as a salesperson. This could be due to

a special or additional value to the product.

The customer should have the resources and authority to buy the product. A 10 year old child

would have to be accompanied by his/her parents in order to buy a product.



What does a potential customer need in order to make the final buying decision?

4.13 CONCLUSION

Approaching a customer could be followed in a certain sequence and with certain actions to

maximise the success of the sale. This chapter gave guidelines on how to interpret the way

customers make buying decisions and how to act to ensure satisfaction. Remember that technology

can be used to the benefit of the customer and the salesperson in a sales situation.


1) The correct order of the consumer buying decision process is as follows:

a. Need arousal, collection of information, information evaluation, purchase decision, post

purchase behaviour

b. Information evaluation, need arousal, post purchase behaviour, collection of information,

purchase decision

c. Need arousal, collection of information, information evaluation, post purchase behaviour,

purchase decision

d. Collection of information, information evaluation, need arousal, purchase decision, post

purchase behaviour

2) The term FAB selling techniques stands for:

a. Function, advantage, benefit

b. Feature, average, belief

c. Feature, advantage, benefit

d. Function, advantage, belief

3) In your own words explain the term dissonance and use a practical example to show

your understanding




Study Unit 5: Communication

for Relationship Building

In this study unit we will discuss the salesperson-buyer communication process to determine a

person’s personality type and ways of developing persuasive communication. We will also be looking

at the importance of nonverbal signals in order to define acceptance, caution, disagreement and

nonverbal signals of the buyer.

“Sales are contingent upon the attitude of the

salesman, not the attitude of the prospect”

W. Clement Stone

Author of The Other Side of the Mind


LEARNER GUIDE


Discuss the salesperson-buyer communication process

Determine a person’s personality type

Discuss the importance of nonverbal communication

Define acceptance, caution and disagreement of nonverbal signals

Explain ways of developing persuasive communication

5.1 INTRODUCTION

Communication is probably the most important factor when it comes to salespeople who should

convey their message about the product or service to the customer. When communicating with a

customer a salesperson should understand that each person is a potential customer who has his/her

own unique personality which should be acknowledged. The salesperson should adapt to this when

selling although it can be difficult to determine.

Salespeople should not only focus on verbal communication but understand and be able to identify

and interpret nonverbal communication as well. An understanding of persuasive communication is

also important and should be implemented as it might contribute to the success of a sale.

5.2 GOLDEN RULE: COMMUNICATION

As stated in the introduction, without communication a sales career would not exist. The rule on

communication is that a salesperson should note everything that a customer does in terms of verbal

and nonverbal communication. This is very important to the success in a sales situation.

5.3 IT TAKES TWO

Communication is mainly used to carry a message to the buyer. Do not forget what is equally

important is the communication from the buyer to the seller. The seller should facilitate the two way

conversation so that the customers can share their wants and needs specific to the product or

service.

To better understand the process and elements of communication, consider the following diagram

and the explanation that follows.


Figure 1.5 Communication process (Futrell.M. 2014)

Gibson (1997) describes communication as the transmitting of information and understanding, using

verbal or nonverbal symbols. Effective communication between the salesperson and the potential

customer and the result of a common understanding between them is most important.

In order for communication to take place, the communicator (salesperson) would send a message

through a medium (oral, advertisement etc.) to the receiver (potential customer).

An organisation wants to communicate the release of their new toothpaste with whitening properties

to their potential customers. The elements of communication are as follows:

Source: The salesperson is communicating the release of the new toothpaste.

Encoding process: The method the salesperson chooses to inform the potential customers about

the product, its features and concepts.

Message: The information must be conveyed to the potential customer through a presentation,

advertisement or other types of marketing methods.

Medium: A medium is the form of communication that was used for example words, body language,

visual material etc.

Decoding process: How the receiver perceives the information. For example, “It looks like that

toothpaste can actually work for whitening ones teeth”.

Receiver: Person the communication is intended, in other words, the potential customers.

Feedback: Feedback includes the reaction by the receiver to the communicator. This can be verbal

and nonverbal reactions.

Noise: Noise is factors that distort communication between buyer and seller – it can be physical

noise or it can be background noise. Sometimes it results in loss of focus in what the buyer/seller is

saying.



Name the elements of communication.

5.4 CONSIDER THE BUYER’S PERSONALITY

The personality of a buyer or potential customer should also be acknowledged in a selling situation as

it affects the buying decision. Personality has an influence on perceptions, attitudes, beliefs and

therefore, buying behaviour.

The best way to examine a customer’s personality is to understand how the customers view

themselves. The following four are images that can be reflected from the self-concept.

Real self: This is the true personality of a person.

Self-image: How the person sees himself/herself or his personality.

Ideal self: Who this person would like to be in terms of personality.

Looking-glass self: How this person thinks others regard him.

The salesperson should attempt to understand the self-concept to better understand the customer’s

reasons for buying or not buying. If a customer does not want to buy a product based on his/her true

self, the customer might buy because of the ideal self. Brand new upcoming electronic products like a

new 70” LED 3D television should be marketed to customer’s ideal self because it would be more of a

status symbol that what the customer really wants.


What does ideal-self mean?

5.5 ADAPTIVE SELLING

Adaptive selling comes into play when a salesperson uncovers more about a potential customer’s

personality which can be used as an advantage to sell the product. The uncovering of personality will

influence the sale dramatically. A salesperson needs to adapt his/her presentation to the customers

buying style. The following are some buying styles that customers can fall in.


Thinker Style: Places value on logic, ideas and order. The salesperson should adapt the

presentation to follow a logical order with facts of the product.

Intuitor: Places value on ideas, innovation, new concepts, theory and long range thinking. For this

customer, the presentation should illustrate how the product is new and exciting as well as how it is

different to others.

Feeler: Places value on being people oriented and sensitive to people’s needs. This presentation

should be focused on what the customer wants and not what is on offer.

Sensor: Places value on action. This presentation should be brief and to the point. This customer

would be bored if the presentation is too long and has too many facts.

Determining the specific style that a customer has can be difficult for a salesperson. One style will be

dominant although all could be present. A customer can also have a personal style which is a mixture

of the four different styles. It requires a salesperson to isolate the dominant style of a customer.


Which buying style will a customer have when he/she wants everything in an organised order?

5.6 NONVERBAL COMMUNICATION

The Business Dictionary (2013) describes nonverbal communication as behaviour excluding words

that transmit meaning. It can include pitch, speed, tone, volume of voice, gestures, facial expressions,

body posture, eye movement and many more. These types of nonverbal communication reveal

hidden feelings about the topic at hand. People use four major communication channels:

Concept of space

This refers to the personal space around a person that strangers may not enter. When violated, it can

create a barrier in communication. This can also be referred to as ‘broken into intimate space’ or

‘personal space’. Defence barriers defend against space invaders.

Appearance

A salespersons appearance is also important in a sales position as it portrays a picture of the

products and services that are offered. After space, this is the next medium of nonverbal

communication. The following are example of appearance: style hair carefully & dress professionally


Communication through handshake

It is said that a person’s handshake tells a story of a person’s character. Shake a customer’s hand

firmly and look them in the eye when greeting.

Body language

Body language can also tell a person something about how another person feels. There are three

broad messages that can be sent through body language.

Acceptance signals

Caution signals

Disagreement signals

With these broad messages in mind, a salesperson ought to:

Recognise nonverbal signals.

Interpret these signals correctly.

Be able to alter strategy as a customer’s body language changes.

Respond with verbal and nonverbal communication.


Name different messages of body language a salesperson can use to interpret how a customer

feels.

5.7 PERSUASIVE COMMUNICATION

According to The Free Dictionary (2013), persuasion is a process aimed at changing a person’s

attitude or behaviour towards something by means of written, spoken and nonverbal communication.

Probing is a method of seeking and uncovering information about customers’ needs by asking one or

more questions. These two elements should be used as a way to keep and maintain control of the

buying situation.

An aspect just as important as persuasion and probing is listening and hearing what a customer has

to say. There are three levels of listening:

Marginal: Marginal listening is the first and lowest level involved in communication. A typical listener

can easily be distracted by his/her own thoughts.


Evaluate: This requires more concentration and attention to the speaker’s words.

Active: An active listener is the third and most effective level of listening.

Technology, attitude and enthusiasm are three more elements that can make a difference in

persuading a customer. These can be used to prove credibility in the statements that are made in a

sales presentation.

5.8 CONCLUSION

There are certain factors that can influence the communication between a

salesperson and a customer. It is important for a salesperson to understand

how a message is carried across to the customer. The salesperson should

also consider a buyers personality and adapt the sales method to the

customer.

Nonverbal communication will also play a role in understanding a

customer’s needs when selling a product. Lastly, persuasive selling is just as important to complete

the sale.

Revision Exercises 5(Remember the answers are at the back of the learner guide)

1) Which of the below are examples of non-verbal communication are the following:

a. Physical space, handshake, appearance & body movement

b. Handshake, shouting, physical space & body movement

c. Physical space, shouting, whispering & body movement

d. Physical space, handshake, whisper & body movement

2) Which of the following is false? Active listening is

a. A skill that takes practice

b. Is based on courtesy and concentration

c. Involves the salesperson having to learn to listen

d. Is listening whilst doing exercise




Study Unit 6: Sales Knowledge

It is important for a salesperson to illustrate the knowledge of a product during the sales presentation

and transfer as much knowledge over to the customer. We will also look at the knowledge needed to

increase the sales success and the main technologies used by salespeople to archive this.

“In business, honesty is absolutely essential. The

best principle is under promise and over deliver”

Richard Denny

Commodity Trader


LEARNING OUTCOMES


Explain why it is so important to be knowledgeable

Discuss the major body of knowledge needed for increased sales success

Illustrate how to use this knowledge during the sales presentation

Explain the main technologies used by salespeople

6.1 INTRODUCTION

In this chapter of the prescribed book, the author wants the student to understand how important it is

to obtain and use different types of knowledge to your advantage. There are different sources where

knowledge can be obtained. These sources can be categorised into: knowledge to build relationships,

knowledge about customers, knowledge about products, knowledge of competitors and knowledge of

technology.

Using the obtained knowledge a salesperson should be able to use it to increase sales successfully

by illustrating it during a sales presentation. Advertising and sales promotion can aid a salesperson

and technology can also influence the sales success.

6.2 GOLDEN RULE: KNOWLEDGE

A salesperson should know everything about the product that he sells to the customer. The customer

will rely on the salesperson to share the true information. This is why integrity and character is

required to build long term relationships.

When a salesperson sells car parts, the customer will expect the salesperson to know what the part

looks like and what it is used for. The customer expects the salesperson to share truthful information

about the product, which is correct and accurate, to ensure that the correct part is bought.

6.3 SOURCES OF SALES KNOWLEDGE

There are two main ways in which a salesperson would obtain knowledge about sales. These are:

Sales training

An organisation will usually provide sales training in order to ensure that the

salesperson knows enough to be successful in the sales process. According to

Salisbury (1998), sales training is a way of training people to identify buyers and

determine needs and wants to realise a profit16. Training a salesperson would

result in improved sales performance.


Experience

Experience is gained as a salesperson learns on-the-job. If a salesperson has

made thousands of sales, he/she would know exactly how to work with customers

to maximise success. Experience also improves the ability to show how buyers

perceive product or product lines.

By using these methods of obtaining a high level of sales knowledge, a salesperson can provide

excellent service which leads to the SSUCCESS acronym in chapter one.


Name the different ways in which a salesperson can obtain knowledge on how to sell products.

6.4 KNOWLEDGE BUILDS RELATIONSHIPS

A salesperson must be knowledgeable about the organisation, its products and the customer in order

to be effective in his/her job. There are three important reasons why a salesperson should have

knowledge. These three aspects will be explained as examples.

Example one

A salesperson’s self-confidence will increase because he/she will know a lot about the product and

organisation. The salesperson will know that there are not many questions that a customer will ask

which he/she cannot answer.

Example two

Salespeople should do all they can to build the buyers confidence in them, the organisation and its

products - especially the product in which the buyer is interested. When a salesperson builds buyer

confidence, it will also build the relationship between the two due to the trust involved.

Example three

A relationship can also be built through truly listening and hearing what the customer says. This will

increase sales because a customer feels that his/her needs are being addressed.

6.5 KNOW YOUR ORGANISATION

The knowledge a salesperson has of the selling organisation will be projected to the potential

customer. This can be used to help portray an expert image of the organisation, the product and the

salesperson (you). The knowledge of the organisation which a salesperson has will include: history,


policies, systems, promotional activities, pricing strategies and technology. This information would be

used in the sales presentation.


Provide 4 examples of possible company knowledge a salesperson can include in their sales

presentation

6.6 KNOW YOUR PRODUCT

One of the most important things that a salesperson needs to know and understand is the product

that he/she sells. This would also be applicable to competitor products. Many salespeople do not care

about competitor products because they feel threatened. Understanding the competitors’ products

can create a competitive advantage because the salesperson knows what benefit of the product to

focus on which the competitors product lacks. Product knowledge also includes the technical details

of the product.

It would be very embarrassing for a car salesman to sell a car that he/she knows nothing about.

Imagine a salesperson that does not know how to start the car but wants you to buy it. It is for this

reason why all salespeople need to know their products. Many organisations let their salespeople

work in the warehouse to understand how the product is manufactured and gain product first-hand

knowledge which will be used in the sales presentation.

Salespeople will use product knowledge differently when selling a technical

product. The salespeople of technical products will spend more time in

meetings discussing the product information than working on a sales technique

as the customer will be more interested in the aspects of a technical product.


What are the categories of typical product questions a customer would ask?

6.7 KNOW YOUR RESELLERS

It is also important for a salesperson to understand the distribution channel and the channel members

of the organisation. Consider the figure of a typical distribution channel below. The role players would

be the producer, wholesaler, retailer and the customer.


Figure 1.6 Distribution channels, Web Books (2013)

A salesperson must be aware of changes in the distribution channel as the salesperson could

typically be between each of these role players in the distribution channel.


Who are the role players in a distribution channel and provide an example of each of them

6.8 ADVERTISING AIDS SALESPEOPLE

A firm will use the factors of the marketing mix to assist with the sale of a product. The marketing

managers of Ford can ask the sales force to increase sales in April and

May through a special as well as simultaneously advertising on television

and in magazines. The salesperson should incorporate these marketing

decisions into the sales presentation. If a customer is interested in a

product, the salesperson should inform the customer of the current

specials. There are six basic types of advertising programs that an

organisation can use to influence the customer, refer to your prescribed textbook for a detailed

explanation of each.



Briefly explain the six basic types of advertising programs that an organisation can use to get

through to the customer?

6.9 PROMOTION GENERATES SALES

Sales promotions include personal selling, advertising and publicity. An example of consumer sales

promotion is free samples of products, coupons and demonstrations. A trade sales promotion

encourages resellers (wholesalers and retailers) to purchase the product and aggressively sell it.

These products are displayed in an eye catching place in store or sold at a special. POS (Point Of

Sale) displays allow products to be seen and purchased. Chocolates and sweets would usually be

displayed at POS.

Shelf positioning can also be used to emphasise some products by physically placing the products

next to each other in the store. These will be products of the same nature like Rama, Flora and Stork

margarines placed next to one another on the shelf. Shelf spacing is a major obstacle in any store

and brands have to compete for shelf space. A premium is an article of merchandise offered as an

incentive to buying a product.

6.10 PRICING YOUR PRODUCT

What is the product worth on the open market? A products price can be determined by

considering the satisfying attributes for which a customer is willing to exchange money

for the product. A Porsche is a product that turns heads. This product has been desired

by most people for years. When determining the price of the Porsche, we will realise that

customers will pay large amounts of money to acquire the product. This type of price

information will become a major part of the sales presentation.


How can a product price be determined?

6.11 KNOW YOUR COMPETITION

It is said that one should know your competition better than knowing yourself. The salesperson does

not only need to know the product, but the credit policy, price, features, functions etc. A salesperson

needs to prepare for the sales presentation in terms of comparing the product to the competitors’


products. The reason for this is that customers will always ask a salesperson how a product

compares to its competitors.

When a salesperson for MTN makes a sales presentation to a large African organisation, the

salesperson needs to know Vodacom’s products to regain ground when the organisation asks

whether MTN’s product can do what Vodacom product can do. Now salespeople do not have to

embarrass themselves because they cannot answer the question asked.

6.12 PERSONAL COMPUTERS

One way of gaining information on competitors quickly and effectively is by

means of computers and the internet. The salesperson can dramatically

increase productivity when using a computer, not only for research, but for

scheduling, planning etc. This could create a problem for non-technical

people as they would have a problem adjusting to this new technology.

Du Pont & Merch Pharmaceuticals, just like many other organisations, combated this problem by

using training programs that are humorous and easy to use.

6.13 TECHNOLOGY ENHANCES SALES

When salespeople know how to use technology to their advantage, it can positively enhance and

increase sales. Computers enable salespeople to provide top quality services by receiving and

sending information, increasing productivity and effectiveness and gathering information more

efficiently. The use of the internet has dramatically changed the way we do business from a personal

productivity, communications and order processing and customer service perspective

6.14 INTERNET

The internet is a salespersons best friend as it can provide endless

information and it is a great sales tool. Webopedia (2013) states that the

internet is a global network, connecting millions of computers in more

than 100 countries. Although many people think internet and the World

Wide Web (WWW) is the same thing, it is totally different concepts.

Webopedia (2013) also states that the WWW is a complete set of

documents on the internet which can be called the infrastructure of the internet.

Salespeople will use the internet and the WWW to create a web page where potential customers can

have a look at what the organisation has to offer, place orders and even buy and pay online. These

pages have a lot of benefits, like giving instant information to customers and help the salesperson sell

a product. Another term used is surfing which refers to visiting many pages on the WWW.



What is the difference between the internet and the World Wide Web?

6.15 GLOBAL TECHNOLOGY

In the world that we live today, it is important to gather accurate information as soon as possible at

the right place and the right time. A salesperson needs instant information in order to satisfy a

customer when they require additional information. If a customer asks the salesperson to place an

order or if the salesperson wants to show the customer the different products, he/she can go onto the

internet and easily do this.

As technology evolves, it also presents some new issues. An example is the growing need for data

storage, management and access.

6.16 TECHNOLOGY ETIQUETTE

Just like the sales etiquette that a salesperson needs when working with

customers, the same principles would apply when working on the internet.

According to Couldton (2000), Netiquette is a term used for etiquette on

the internet. An example that a salesperson would come across many

times per day, is sending an email. Netiquette should carefully be

implemented when wording an email as it can create a bad image when the salesperson doesn’t

focus on what was written.

There is a certain etiquette which should be implemented when talking on the phone as well. A bad

image can be portrayed when a salesperson speaks to somebody else while on the phone with a

customer. This is only one example of how salespeople can create a negative image of themselves

and the organisation. According to Golding (2000) there are some short and easy guidelines which a

salesperson can use to improve etiquette.

The person that you are talking to is the most important person.

You can use text or SMS to simplify your life.

Switch off your cell phone in meetings

Do not engage in cell yell which means shouting at somebody with whom you have a cell

phone conversation.



What does Netiquette mean?

6.17 CONCLUSION

In this chapter we learnt that sales knowledge is one of the most important aspects of a salespersons

presentation to their customers. There are many advantages that can be derived from the different

knowledge that can be gained.

Advertising and promotion are also some important aspects which can help a salesperson to get a

certain message across to the customers. Lastly, the salesperson should be aware of how

technological advance can change the way in which the salespersons job can change.

Revision Exercises 6 (Remember the answers are at the back of the learner guide)

1) Which of the following is not a sales promotion items?

a) Shelf Positioning & Shelf facings

b) POP displays

c) Sampling

d) Premium

2) Which of the following isn’t technical knowledge a sales person should know?

a) How the product operates

b) The exact date the product was manufactured

c) Performance data

d) How well the product is selling in the market place

3) List and briefly explain 5 ways in which technology assists in enhancing a salespersons

productivity


Part 3: The relationship selling

process

Study Unit 7: Prospecting

In this study unit we will be looking at why it is important to prospect and the various prospecting

methods needed to set up an appointment with prospect’s or customer. By defining the sales process

and asking for referrals during the referral cycle the salesperson can build up a customer base.

“You can’t build a reputation on what you’re going

to do”

Henry Ford


LEARNING OUTCOMES


Define the sales process, and list and describe its 10 steps

State why it is important to prospect

Describe the various prospecting methods

Ask for a referral anywhere during the referral cycle

Make an appointment with prospect or customer

7.1 INTRODUCTION

Understanding the way, when, where and how a salesperson should prospect is very important for

the sustainability of a salesperson an organisation. A sales process can be followed before

presenting the product to a customer. A salesperson should be planning a prospecting strategy by

using prospecting methods, guidelines and the referral cycle to achieve success for the future. The

aim is to obtain as many sales interviews as possible.

7.2 GOLDEN RULE: PROSPECTING

Customers can be separated into two categories namely: new customers and repeat customers.

Without repeat customers, a salesperson would need to locate individuals who have the resources,

authority and desire to purchase a product from the salesperson. In order to do this, the salesperson

needs to build new relationships with these customers which could be costly.

A salesperson can obtain new customers through referrals from existing customers. A customer will

divulge referral information when the salesperson demonstrates integrity, trustworthiness and a good

character. When one of these characteristics lack, the chances are that no referrals will be gained by

existing customers. You will not give your loved-ones numbers to a person that you do not trust. A

salesperson can gain new customers when he/she delivers an ethical service and builds relationships

based on trust.


What are the two main categories of prospecting?


7.3 SALES PROCESS

When a salesperson needs to make a presentation, he/she should ensure that it is

done in a sequential series of actions. If these series of actions or steps are followed,

the chances of making the sales will increase dramatically.

The sales process involves 10 steps. Before the sales presentation, a salesperson

needs to go over the actions or activities to be carried out. This will be disdcussed in the next section.

7.4 SALES PRESENTATION

The first step of making a sale would be for a salesperson to obtain an opportunity to present a sales

presentation to a potential customer. The salesperson should prepare his sales presentation the day

before meeting the customer. A salesperson can be compared to a lawyer who needs to prepare for

his/her case before presenting it to a judge.

The rule of thumb with regards to setting up and presenting the presentation is that 20% of the work

lies with the presentation itself, 40% is preparation and the other 40% is following up after the sales

presentation. It is clear that the statement, “nothing happens until someone sells something” made in

chapter 1, is still applicable.

7.5 THE LIFEBLOOD OF SELLING

As stated above, the first step in the selling process is prospecting. A prospect is

the person who has the potential to buy a product that the salesperson wants to

sell. The reason why this book states that prospecting is the lifeblood of selling is

because of the fact that without continuously prospecting and gaining customers, a

salesperson would not be able to survive in the continually changing environment.

There are two main reasons why salespeople would look for new prospects. These are:

To increase sales

To replace customers who are lost over time.

A lead is the terminology used for a prospective customer. Lefton (1987) stated that once a lead has

been qualified, the lead will become a prospective customer. After a lead has been realised and

turned into a prospect, the salesperson needs to create a desire for the product.

As illustrated in the book, a sales prospect will be funnelled and filtered with all the other possible

prospects in order to realise a qualified prospect. The sales funnel approach is a straightforward one

according to Connet, Abratt & Cant (2010:37), leads are fed into the sales funnel, which is the

metaphor for the start of the personal selling process, these leads are given an basic “once over” to


establish that they are at least suspected of being potential prospects, the qualifying phase converts

the suspects into prospects. Ultimately the objective and the last phase is to convert these prospects

into customers

Diagram from Connet et al (2010)


Name the two main reasons why salespeople look for new prospects?

7.6 LEAKING BUCKET CONCEPT

The leaking bucket concept is a representation of a salesperson that needs

to find new customers or sell more products to existing customers. To keep

the customer ‘bucket’ full at all times, the salesperson would need to

continuously search for new customers. It is a normal occurrence for a

salesperson to find and lose customers each year. The important thing is to

keep the loss to a minimum. This is called the leaking bucket concept. New customers will come in at

the top of the bucket and old customers will leave at the bottom.

Selling to a known satisfied customer is much easier that selling to a new customer. The cost

involved in the selling is also much lower than acquiring a new customer. Customer retention is

therefore very important to save costs. Customer retention saves time and money.



What does the leaking bucket concept mean?

7.7 PROSPECTING STRATEGY

A prospecting strategy should be planned very carefully before a prospect is approached to ensure

that the salesperson will look and sound professional. First impressions count. In general,

salespeople prefer working with customers who have similar characteristics as themselves.

Prospecting is a skill which should constantly be improved as a salesperson gains experience.

According to Brady (1987), successful salespeople continually evaluate prospecting methods by

comparing results in order to formulate a prospecting strategy which will maximise success.

Xerox asks their sales force to use a portion of each working day to find and contact new prospects.

By doing this, Xerox ensures new customers will constantly be added into ‘the leaking bucket’ which

is essential for sustainability over the long term. Some organisations rely entirely on contacting new

customer daily.

7.8 PROSPECTING METHODS

As stated before, selling is the lifeblood of a salesperson. The following are 13 of the most popular

prospecting methods.

Prospecting methods

E-Prospecting Public exhibitions and demonstrations

Cold canvassing Centre of influence

Endless Chain Customer referral Direct mail

Orphaned Customers Telephone and telemarketing

Sales Lead Clubs Observation

Prospect lists Networking

Getting published



Name and explain 5 prospecting methods?

7.9 PROSPECTING GUIDELINES

There are some guidelines that a salesperson can follow but here is no optimal mode of prospecting

to fit all situations but generalisations can be made. There are three criteria that a salesperson should

use in developing the best prospecting method.

Customise prospecting method so that it fits the needs of the individual.

Concentrate on high potential customers first and only thereafter go on the lower potential

prospects.

Always follow up on customers who decided not to buy.

A salesperson can use a prospect pool in order to group prospects. According to Krammick (1994), a

prospect group is a group of names gathered, which is usually created from four main sources: leads,

referrals, orphans and customers

Most salespeople would prefer not to cold call their customers but rather use referrals and orphans.

The secret to reaching this goal is through the referral cycle.


From which sources can a group of prospective customers be gained?

7.10 REFERRAL CYCLE

Obtaining referrals is a continual process for a salesperson. The

referral cycle provides guidelines for a salesperson to ask his/her

customers for referrals at the correct time. Selling a product to a customer and obtaining

a referral from a customer or prospective customer is known as a parallel referral sale as two

objectives have been fulfilled

Although a lot of customers would not like to be asked for referrals, it can greatly improve a person’s

sales. If a salesperson decides to ask his/her customers for referrals, the salesperson would have to

know how and when to ask for it.


The pre-approach: Effectiveness of approach will be the deciding factor as a customer could put the

phone down while asking for referrals.

The presentation: This is the opportunity to influence a customer to give referrals. A salesperson

could present the desire to get referrals at this stage. If a customer agrees, the referral cycle would

actually begin.

Product delivery: The product delivery phase is more obvious in some products than others. The

delivery of life insurance will be less visible to the customer that the ‘delivery’ of a house that was

bought through a real estate agent. Most customers feel better when a salesperson ask for referrals

at the product delivery stage as they know that they can refer a great product.

Service & Follow up: The Business dictionary (2013) defines customer service as the interaction

between a customer and a salesperson at the time of sale and thereafter. In this phase of the referral

cycle, a salesperson has an on-going opportunity to ask for referrals. At this stage a salesperson can

almost informally ask for referrals as the trust have been built between the customer and

salesperson. A customer will know that he is doing his/her friends and family a favour by referring.

Do not mistreat the referrals

A salesperson that mistreats and abuses referrals can lose an important point of references.


List 4 reasons why many salespeople not ask for referrals?

7.11 RELUCTANCE COST

All salespeople can be reluctant to call customers from time to time. A typical reason can be if a

salesperson is too busy to get to all his/her customers. This is sometimes referred to as call

reluctance. This can cost a salesperson a lot of money as the customer can find another organisation

that will provide a similar product.

7.12 SALES INTERVIEW

Whether a salesperson needs to do the sales presentation over the phone, Skype or in person, the

key question is how the salesperson can obtain an interview. There are some benefits that a

salesperson can derive from making an appointment with a customer.

Telephone appointment: When making an appointment via telephone, cost and time can be saved

although it is more difficult to obtain a sales interview.


Personally making an appointment: When personally making an appointment for a sales

presentation, the following is important to remember:

Believe in yourself

Develop friends in the prospects organisation

Make an appointment at the right time with the correct person

Do not waste time waiting to make an appointment

7.13 WIRELESS EMAIL

These days, email is a very effective way of communicating with

customers. Wireless internet and wireless devices are relatively

new technology which assists a salesperson to keep connected

with customers permanently. Imagine how a salesperson struggled to make appointments, contacting

and following up with customers before email and cell phones existed. At least today a salesperson

has a cell phone capable of receiving emails in order to keep in contact with customers.

HP always equips their salespeople and representatives with the best mobile equipment in order for

them to keep in contact with customers and the office.

7.14 CONCLUSION

Understanding the sales process is probably one of the most important elements of selling that a

salesperson should know. Prospecting, as a part of the sales process is the life blood of selling from

which a salesperson can derive many benefits for the prospective customer, salesperson and the

organisation.

The salesperson will need to plan, find and use guidelines to prospecting. The referral cycle is also

important to ensure the future sales of the salesperson. Today, all these aspects are much easier for

salespeople due to technological advances.


1) Which of the following options isn’t considered to be a prospecting method?

a. Cold canvassing, public exhibitions and networking

b. Endless chain customer referrals, observation and networking

c. Centre of influence, endless chain referrals and direct mail

d. Cold canvassing, repeat business, observation and direct mail


2) A prospect pool is a group of names gathered from various sources, the 4 main sources

are:

a. Leads, referrals, orphans and competitors

b. Referrals, your customers, leads and cold calling lists

c. Leads, customers, referrals and orphans

d. Competitors, leads, referrals and orphans

3. List and briefly explain 3 questions that you could ask to help you determine if an

organisation/individual is a qualified prospect



process

Study Unit 8: Planning the

Sales Call

In this study unit we will explain the importance of the sales call, list the four planning steps and

understand them. In addition to this the prospect’s five mental steps of buying can be analysed in

order to create a customer development plan. These aspects will contribute to the success of a

salesperson.

“If you fail to plan, you plan to fail.”

Benjamin Franklin


LEARNING OUTCOMES


Explain the importance of sales call planning

List the four planning steps in order and understand them

Develop a customer development plan

Describe the prospect’s five mental steps in buying

8.1 INTRODUCTION

According to Investor words (2013), planning is the process of setting goals, developing strategies as

well as scheduling tasks to accomplish goals. Planning is also one of salespersons most important

tools, especially when he/she has many customers. Sales planning can help a salesperson in more

way than one, of which the most important is providing a strategic direction.

8.2 GOLDEN RULE: PLANING

Together with the other golden rules of sales management, planning is unique because unlike the

other golden rules, it needs to be attended to long before contacting the prospective customer. The

purpose of planning is basically to list plans, goals and objectives to ensure that the salesperson

knows what needs to be done before speaking to the potential customer.

A salesperson should plan ahead but focus on today and today’s customers. The way in which a

salesperson thinks, acts and what he/she accomplishes will affect the future.

The foundation of a plan must be based on the truth. With purpose comes a plan and with a plan

comes success. But then how can we define success? According to the Business Dictionary (2013),

success is the achievement of something planned.

Unfortunately, planning will not always pan out as expected. There are many reasons why the

planning, that a salesperson did prior to meeting with the customer, will not work out. But a

salesperson can try to do his/her best by showing integrity and trustworthiness. This means that a

salesperson will place others needs before his/her self-concentrated needs. Many people do not trust

a salesperson. The salespeople, however, can create a

bridge between themselves and the customer in order to

create a long term relationship.


8.3 STRATEGIC CUSTOMER SALES PLANNING

High performance salespeople tend to be strategic problem solvers, mostly because of their planning

ability. The Business Dictionary (2013) defines strategic planning as a systematic process of

envisioning the future by setting goals. In short a strategic problem solver would mean a strategy that

was well planned long in advance. These salespeople have skills and knowledge in order to:

Uncover customer strategic needs by gaining knowledge of customer’s organisation.

Develop solutions to address customer needs.

Arrive at a mutually beneficial agreement

Strategic Needs: Salespeople who understand the needs of customers are in a better position to

provide efficient and effective problem solving.

Creative Solutions: A salesperson faced with a specific and unique set of problems to solve should

have the ability to provide a customer solution since each individual customer is critical. A

salesperson should be a creative problem solver.

Mutually Beneficial Agreement: A mutually beneficial agreement basically means a ‘win-win’

situation between the salesperson and the customer. To create this ‘win-win’ situation, a salesperson

and customer needs to work together to develop a common understanding of the issues and

challenges at hand.

THE CUSTOMER RELATIONSHIP MODEL

The customer relationship model brings all the elements of consultative selling together in order for

the salesperson and the customer to reach goals.

Reasons for Planning the Sales Call: planning for the sales call is the key to success for the

following four reasons: planning builds self-confidence, develops an atmosphere of goodwill between

the salesperson and customer, reflects professionalism and increases sales because a salesperson

understands the buyer’s needs

Elements of Sales Call Planning

There are four components of sales call planning (4 D’s)

Determine the sales call objectives

Develop customer profile

Develop customer benefits

Develop a sales presentation



Name the ten steps of creating a strategic relationship with a customer?

8.4 PROSPECT’S MENTAL STAGES

During the sales presentation, a salesperson should consider the different stages that the customer

may be experiencing. The following are the different stages:

Figure 1.7 Mental stages (Futrell.M. 2014)

Attention: From the start of the presentation, right through to the end, a salesperson should hold the

full attention of the customer in order to develop interest in the product.

Interest: Determine the customers buying motive by capturing the interests.

Desire: Strive to transform a customer’s interest into a desire

Conviction: A customer might show interest in a product and even desire a product but still needs to

be convinced that the product is the best on the market for the customer’s specific need.

Purchase: Once the customer has shown interest, desire and is convinced that the product is the

best for his/her needs, the salesperson can make the decision to ask the customer whether he/she

would like to purchase.


Name the mental stages customers will go through while a salesperson is presenting a product?

8.5 CONCLUSION

In this chapter, emphasis is placed on the importance of planning, especially when working with

customers for whom the salesperson needs to make a sales presentation. Planning is done to ensure

success in the sales presentation and actual sale of the product through the strategic planning


process. It is also important for a salesperson to understand the steps of a prospects mental process

to better understand how to make a sale by interpreting the customer.


1) Which of the following is not a reason to plan a sales call

a. It aids in building confidence

b. It reflects professionalism

c. It is part of the daily admin that needs to be completed by a salesperson

d. It generally increases sales as the salesperson better understands the buyer’s needs

2) A prospect goes through certain mental steps when being sold to, identify each of these

mental steps in order and give a practical example for each step to support your

explanation



process

Study Unit 9: Selecting Sales

Presentation

We will be looking at the different sales presentation methods, how to select a sales

presentation, selecting the approach and understanding how to give a presentation to a

group of prospects. By understanding why negations can be an important part of the

presentation you will be able to discuss the structure and content of a presentation based on

the parallel dimensions of selling.

“If you're a gifted flirt, talking about the price of

eggs will do as well as any other subject.”

Mignon McLaughlin


LEARNING OUTCOMES


State why you first select a sales presentation and then select the approach

Describe the different sales presentation methods

Better understand how to give a presentation to a group of prospects

Understand why negotiations can be an important part of the presentation

Be able to discuss the structure and content of a presentation based on the parallel

dimensions of selling

9.1 INTRODUCTION

A sales presentation can be very difficult if the salesperson does not prepare correctly. The

salesperson must understand and look a different presentation strategy and sales presentation

method to suit the customer’s needs. A salesperson should also be prepared for a group

presentation.

Some techniques should be used by the salesperson to ensure a ‘win-win’ situation between him/her

and the customer. One of these very effective strategies is negotiating the deal. Most salespeople

use technology to retain interest and the attention of the customer during the presentation. There are

many other general techniques which the salesperson can consider.

9.2 GOLDEN RULE: PRESENTATION

A salesperson needs the skills to adapt the sales presentation to the different types of prospects that

he may encounter. By presenting truthfully and honestly the prospect will feel that the salesperson

can be trusted.

Once the salesperson knows who the presentation is given to, he/she can select the best suited

presentation method which will improve the chances of success. It is therefore important for the

salesperson to master the art of delivering the presentation. With a great presentation, a salesperson

is able to solve customers’ problems, build relationships and improve lives all at the same time.

9.3 SALES PRESENTATION STRATEGY

It is absolutely important for the salesperson to understand that there are many different situations in

which a sales strategy will need to be adjusted. The following are some of the situations that a

salesperson might face.


Salesperson to buyer: This is a typical situation where a salesperson presents

his/her product to a customer, either over the phone or in person. This would be

selling a life policy to an individual.

Salesperson to buyer group: This will be when a salesperson is presenting to

a group of buyers. A salesperson will present to an organisation with a panel of

executives.

Sales team to buyer group: An organisation’s sales team will, consisting of a few people, present

their product to a group of buyers.

Conference selling: An organisation will send their employees to a customer in order to resolve a

problem or for a sales opportunity.

Seminar selling: Apple will conduct a seminar for an organisation (customers) relating to state of the

art technological developments.


Provide a brief explanation of what you understand about the term conference selling

9.4 SALES PRESENTATION METHOD

A method of presenting must be selected to explain the business proposition. There are many ways

of making a presentation of which this book will only be explaining four of the most prominent

methods.

Memorised Presentation - This presentation is focused on a quick single transact which will usually

be directed to a new customer. The salesperson will not usually have prior contact with the customer

and it will only take a few minutes.

This method of presentation should be used when a salesperson does not have a lot of time and

when the product presented is simple. A door to door salesperson selling fruit will fall into this

category.

Formula Presentation - The salesperson will have built a relationship with the customer through

repeat sales. This presentation will take approximately an hour, because it is a known customer.

When the need of the prospective customer has been determined, the formula presentation is the

best option.


Need Satisfaction Presentation - Here the relationship has moved over to more of a partnership. A

need satisfaction presentation will be the prefect method for industrial customers as well as

customers that the salesperson knows about. In other words, customers who a salesperson would

know well in terms of needs.

Problem Solution Presentation - Selling high cost technical products will need a problem solution

presentation as these customers will have problems which need solutions.

A careful decision must be made to decide which of these methods can be used because each may

lead to success if the method matches the situation. To help improve sales, the salesperson must

understand each of these methods and match the chosen method to a customer correctly.


Define a formula presentation?

9.5 GROUP PRESENTATION

When a salesperson presents a new filter to Sasol that they can use for their fuel at the fuel stations,

he/she will most probably be doing the presentation to many stakeholders within Sasol. This will also

mean that there is more than one decision maker in the group.

A group presentation will be less flexible than a one-on-one which means a more structured

presentation will be necessary. The ideal will be to involve all Sasol’s stakeholders in order to better

understand what is needed from the customer. While keeping the example of Sasol in mind, here are

a few steps a salesperson should accomplish in the beginning of a presentation.

Give a Proper Introduction: Give a brief history on the organisation, the filters, the proposal and

how the organisations filters can benefit Sasol.

Establish Credibility: Show Sasol the success rate of the filters in other industries or other

organisation. Present actual statistics and facts about the product.

Provide an Account List: Hand out a list of current customers to the stakeholders showing the

various sizes of filters and the types of organisations that use these filters.

State Your Competitive Advantage: Up front, the salesperson can explain where the organisation

stands relative to its competitors. No SWOT (Strengths, Weaknesses, Opportunities and Threats)

analysis is needed but instead just making it clear that the product is better than the competitors

product and why.


Quality Assurance - Get Sasol on your side by stating the guarantees and warrantees the filters will

come with.

Behaviour Styles - Referring back to Chapter 4, analyse the group of stakeholders to find the

dominant style in terms of the four behaviour styles. Once this style has been recognised, the

salesperson needs to quickly adapt to the stakeholders.

After these six steps have been addressed in the beginning of the presentation, it is time to involve

Sasol’s stakeholder in the presentation by asking each person’s input to the filter. It is very important

to list questions, doubts and general comments. Be prepared to answer all questions relating to the

filters to show that you know everything about your product.

A proposal document should be prepared to show a customer exactly what they will purchase. This

document should include everything the salesperson and potential customer discussed during the

presentation including questions, problems, success criteria, decision making and the answers to

each of these.

Do not include the price of the filter in the presentation as it could lead to people going straight to the

price without considering content, prejudice of non-decision makers as well as politics just to name a

few. Equally important is to show that you are not hiding the price.

Summarising the benefits will help the salesperson to show the stakeholders that there are many

benefits that can be realised when using this product and how it will solve some of their problems.

The benefits can be compared to the costs in order to support the reason for the product price.


List a few things a salesperson should accomplish in the beginning of the sales presentation?

9.6 NEGOTIATING: EVERYONE WINS

Many say that the second nature of a salesperson is negotiating. The reason for this is that a

salesperson should always be prepared to negotiate with the customers. Most salespeople negotiate

during the confirming phase of the sale. Typically, this is when the stakeholders of Sasol will say that

they are interested in the filter but the price is a bit too high. When negotiating, it is important to

remember that the negotiations can affect the business relationship.

There are different negotiation styles that will have a direct effect on the outcome of the negotiation

and the relationship. The salesperson should try to use a ‘win-win’ strategy in order for both parties to


‘win’ at the end of the negotiation. This will also mean a ‘win’ for the relationship after the sale to

secure sustainability.

Remember that negotiation is like cooking, a person needs to prepare food before it is ready to eat.

The salesperson should do what he/she can to ensure the best results out of the negotiation. The

following are four important areas of preparation.

Planning - It is said that planning should be 90% of the work, and the presentation itself the other

10%. Plan everything ahead of time. Try to write down and answer all the possible questions that a

customer can possibly ask. It is also said that you should know your enemies better that yourself.

This applies especially when a customer asks, “What makes your product better than your

competitors?”

Meeting - When meeting face to face, people always feel better as they know who they are working

with. Once the salesperson meets the customer face to face, the salesperson can start building the

relationship by proving credibility and trustworthiness. As proof of this concept: selling a car to a

trustworthy friend is much easier for both parties than selling the car to a complete stranger.

Studying - A prospective customer should be analysed in order to understand the needs and the

reasons behind the demand. The salesperson should also find out what competitor products a

prospect is interested in and how these will satisfy them. If the prospective customer is looking at a

competitor’s R8 000 000 CAT scanner for a hospital and the CAT scanner you are selling is R9 000

000, you will know that they are looking at a lower price range than your product. Offer a CAT

scanner that is lower priced in order to keep the customer interested.

Proposing - The successful resolution of a negotiation starts with a commitment to do business

together. It is therefore necessary for both parties to maintain common interest and resolve any

conflicts that might arise.


What is the most important outcome of negotiations?

9.7 PARALLEL DIMENSIONS OF SELLING

Exhibit 9.11, Fitzpatrick (2011) can be interpreted as a very complicated sequence of interactions,

but, having a closer look at it, you will realise that it is some of the important aspects covered in this

book up to now. In the textbook you have learned many dimensions of selling. Putting these together

can provide a salesperson with a comprehensive scope in the dimensions of selling.


The First Column: The column on the left shows the order in which the sales presentation

discussion should be following. The salesperson should ensure that the discussion begins from the

product, the marketing plan follows, then the business proposition and finally the closure.

Second Column: As per chapter four of this book, the SELL sequence should be used to make the

customer aware of the product.

Third Column: As per chapter 10, the ten steps have to be followed before the sale can be closed.

Fourth Column: As per chapter 8, the AIDCA can be used to illustrate the buyer’s mental steps.

9.8 TECHNIQUES

The salesperson should make an appointment with the potential customer but plan the strategy and

tactics before meeting with the customer. Part of this strategy and tactics, the salesperson should

develop a customer profile, listing all the needs and wants which can be used to ensure that the

customer will remain focused and intrigued with the presentation.

Also list the features, advantages and benefits of the product in order to link it to the customer needs

and wants. This is important because the salesperson needs to show the customer how the product

will satisfy their needs.

Only now a salesperson can develop the sales presentation as he/she will have the information

required. The presentation must be created in a way that takes the buyers personality style into

consideration as well as choosing the method and approach technique.

The Approach

For the approach to be classified as a success, the salesperson needs to capture the attention and

interest of the prospective customer. Using a presentation that is full of interesting facts will keep the

customer interested. It is also important to remain positive, giving a firm handshake, look into

customers eyes, smile etc. The salesperson can also bring a sample of the product along unless the

product is too big, he/she can show pictures or videos to the customer.

The trial close is one of the best methods of communication by asking the customer’s opinion instead

of asking the customer to commit to buying the product. Once again, the SELL sequence allows the

focus on benefits rather than features. The salesperson can also find out a lot about the prospective

customer through non-verbal communication signals as discussed in chapter 1.

Three Presentation Parts

The three parts of the presentation should be: presenting the product, sharing the marketing plan and

sharing the business proposition


The product should be discussed with the customer in detail. After the product has been discussed

the marketing plan can be shared with the customer. There are two different types of marketing

plans: firstly the reseller, whereby the salesperson can discuss how the retailer, wholesaler or

distributor could sell the product after it has been bought from the salesperson. Secondly, the

enduser is whereby the salesperson can explain how the product will fit into the organisations

operations.

Show and Tell

Try to tell a story about the product to improve the chances of making the sales. As part of the

presentation, the salesperson can use the following six sales presentation elements:

1. Salesperson and customer participation

2. Using of proof statements to show that other customers are happy with the product

3. Use visual aids in the presentation to ensure the customer will remained interested

4. Dramatisation of the product

5. Demonstrate what the product functions are.

6. Use persuasive communication to influence the buyer in a good way

Price

The overall rule of thumb is that the price should not be shared with the prospective customer until

the product has been discussed thoroughly and when the customer does not have any further

unanswered objections. The salesperson should read the customer and make a decision when to

disclose the price.

Welcome Objectives

The salesperson must welcome any objections from the customer as it can uncover some important

customer needs. When the trial question has been asked with a positive response, the salesperson

will know he/she is on track to close, if not, he/she will have to convince and answer some more

questions.

AIDCA

This approach will draw attention and create an interest while the presentation should also create

more interest. During the presentation, the prospective customer’s desires will begin to arise.

Closing


When closing and the prospective customer decides not to buy the product, it should not be taken

personally. Instead, the salesperson should try to understand and thank the prospect as it could be

perused in the future.

Follow Up and Service

The following up is the most important part of these elements as this is the part where referrals can

be gained for future success. The entire presentation should be reviewed to ensure the fixing of all

errors for the next presentation. This will ensure the presentation to continuously improve for future

success.


What are the three parts of a presentation?

9.9 PRACTICE AND TIME

Practice makes perfect is a saying that we all know well. This is also relevant, and maybe especially

relevant, to a sales career. All salespeople, new and old, go through a learning process consisting of

three phases.

1. Feeling awkward to use these new techniques because the salesperson is not used to it.

2. Consciously using the new training as part of everyday sales

3. When the new way of doing things becomes part of day-to-day job.

In general, habits are very hard to change or to get rid of. As the salesperson uses the training for a

while, it will become second nature. The salesperson should continue through the three phases to

ensure that the training becomes normal to do every day

9.10 CONCLUSION

When the salesperson understands the use of these concepts, strategies and methods discussed in

this chapter, the presentation will have a high possibility of success. There are many different ways of

getting the attention, interest and desire of the customers which have been used by salespeople all

over the world for many years.


Revision Exercises 9

1) The four phases of negotiation in order are as follows:

a. Planning, meeting, studying and proposing

b. Studying, planning, meeting and proposing

c. Preparation, meeting, studying and closing

d. Studying, meeting, planning and closing

2) Briefly discuss the 3 important parts to making a sales presentation, and use a car sales

person as an example to show your understanding of these fundamental parts



process

Study Unit 10: Begin Your

Presentation Strategically

In this study unit we will be looking at the four types of questioning techniques and the importance of

being flexible in your approach throughout the presentation. We will explain the importance of using

an approach and provide examples of the different approaches that can be used. The theme of the

presentation should relate to the prospect’s buying motives.

“People don't ask for facts in making up their

minds. They would rather have one good, soul-

satisfying emotion than a dozen facts.”

Nicholas Johnson


LEARNING OUTCOMES


Explain the importance of using an approach and provide examples of approaches

Illustrate why the approach should have a theme that relates to the presentation

and the prospect’s important buying motives

Present four types of questioning techniques for use throughout the presentation

Understand the importance of being flexible in your approach

10.1 INTRODUCTION

The beginning of the sales presentation is the most important as it is the part where the salesperson

needs to capture the attention of the prospective customers in a way that would leave them wanting

more. This can be achieved by using new technology, questions and a flexible approach when

greeting and presenting. The salesperson would also need to know what to do when the prospect is

not listening and re-capture his attention.

10.2 GOLDEN RULE: THE BEGINNING

When starting the presentation, it is very important that the salesperson understands the key benefits

of the product as well as what is needed by the customer. The salesperson should use this

knowledge to solve the customer’s needs in order to ensure a successful sale. A true salesperson

must be there to help the customer.

This beginning of the sales presentation is called the approach as it is

the first communication that the salesperson has in terms of presenting

the product. The approach must be the best part of the presentation as it

will build the trust between the salesperson and the customer. There is

an old saying that first impressions last- this is also true about sales. A

customer should feel that the sales person is trustworthy and that he cares about his/her needs.

10.3 WHAT IS THE APPROACH?

The approach of a sales presentation can be compared to the shot in golf where

the golfer plays from the fairway to the green since it is also called, ‘the approach’.

In sales, the approach refers to the first time the salesperson greets the customer

until discussing the product with the buyer. This approach can be very quick. The

approach is the 3rd step in the selling process. If the approach is not successful,

an opportunity will be missed by the salesperson and the prospective customer.


10.4 THE RIGHT TO APPROACH

The salesperson needs to make a decision on how to approach. The salesperson should present the

product to the prospect by focusing on the benefits which the customer will receive from purchasing

the product. Once again, this can be done by capturing the potential customer’s attention, interest,

desire, and conviction to purchase. The salesperson can use these together with the following to

ensure a successful approach.

Helping others and thereby achieving sales objectives. As stated in the previous section,

caring for the customers will increase the chance of being successful

Exhibiting the product and/or business knowledge. Showing the customer the product will help

the customer understand more about the aspects of the product.

Expressing the desire to solve the buyer’s problems and satisfy his needs. The salesperson

needs to express the need to solve the customer’s problems.

Choosing the correct approach, a salesperson will save money and increase the firm’s profit.

The customer will more easily buy the product.

Display service attitude. When customers receive great service they will feel safe when

purchasing because they assume there will be great after sales services.

Prospects will always want to know how they can benefit from the sale and the product. This is

exactly why it is important to discuss the benefits during the approach. This is a good way of making

a good first impression. When a good impression has been made and the customer’s attention is on

the salesperson, the salesperson can present further aspects of the product.


How can a salesperson maximise the possibility of a successful approach?

10.5 THE APPROACH: OPENING THE SALES PRESENTATION

The salesperson needs to do more than just present as he/she needs to stay focused on the

following make or break issues.

The salesperson’s attitude during approach

When presenting in front a prospective customer, the salesperson, especially if he is inexperienced,

will feel some tension. This can be viewed as a negative characteristic of a salesperson. A

salesperson must always envision the best and worst situation and accordingly develop a

contingency plan to increase the outcome when the best situation does not work out as planned.


The first impression you make is critical for success

As humans, we make our first impressions based upon a person’s appearance. If the prospect has a

positive impression of the salesperson, he/she will listen to the salesperson. If negative, it could

possibly create communication barriers between the prospect and salesperson. There are some

suggestions a salesperson can follow to make a positive first impression, which are as follows: wear

appropriate attire, be neat and tidy, refrain from bad habits like smoking and chewing gum, and keep

an erect posture amongst others mentioned in your prescribed textbook

Approach techniques and objective

These are grouped into three broad categories namely:

Opening with a statement

Opening with a demonstration

Opening with one or more questions

Statements and demonstrations will be reserved when a salesperson chooses to present by using the

memorised and formula presentation methods. The need satisfaction and problem solving

presentation methods will include questioning the customer

Opening with a statement

There are four different approaches frequently used by salespeople.

Introductory approach: This is the most common and least powerful approach. This is

typically opening with the name of the business and what the business does.

Complimentary approach: A salesperson will give a customer a compliment.

Referral approach: When the salesperson informs the customer he was referred by someone

that he knows.

Premium approach: This method is effective because everyone likes something for free. An

example could be free samples.

Opening with demonstrations

Openings that use demonstrations are especially effective because of their ability to force the

prospect into participating in the interview, here there are 2 different approaches:

Product approach: the sales person places the product in front of the consumer and says

nothing, waiting for the prospect to begin conversation

Showmanship approach: involves doing something unusual to catch the prospects attention

and interest


Opening with questions

Salespeople would commonly use questions to open the conversation and to better determine the

prospective customer’s needs.

Customer benefit approach: is when a salesperson asks questions that imply the product

will benefit the prospect. A salesperson should use a benefit statement to communicate the

product benefits.

The curiosity approach: is when a salesperson asks questions that make the prospect

curious about the products offering.

The opinion approach: works well because customers like to be asked their opinion. This

works well for new salespeople as it shows that the salespeople value the prospects opinion.

The shock approach: uses questions which make the prospects think about the subject.

A multiple question approach: uses a mixture of the approaches above. Rackham (1988)

used the SPIN abbreviation for the steps involved.


What are the three important objectives a salesperson should achieve?

10.6 TECHNOLOGY IN THE APPROACH

Trying to capture a prospects interest and attention can be difficult, but has been made easier as

technology developed over the years. Technology is used to be creative in the sales presentation

which will grab the attention of the customer. Technology can be used to include and enhance

sounds, visuals and prospect focus.

When visiting a customer, the salesperson can carry a laptop with him/her to present the product with

pictures, sound clips etc.

10.7 IS THE APPROACH IMPORTANT?

The answer to the question above is, ‘Yes’. The approach is important although there is more than

one way of approaching a customer. Just like a golfer has different clubs that is used for different

shots, a salesperson has different communication and sales techniques to open a sales conversation.

The salesperson will need to understand the type of prospect, the needs and the type of sale in order

to change the approach to fit the type of sale.


10.8 USING QUESTIONS RESULTS IN SALES SUCCESS

Probing is an excellent technique that is used to ask questions for the following reasons:

Obtaining information from prospects

Developing two-way communication.

Increasing the prospects participation

There are three rules to asking questions:

Only ask questions you anticipate answers to

Pause after submitting a question

Listen

But why do these probing questions draw a prospects attention? A salesperson uses these probing

questions to make the prospect think about the topic at hand. The following are four basic categories

of questions which can be asked during a presentation.

Direct questions: This would mostly be ‘Yes/No’ questions. This is used to move a customer

towards a specific topic. “Do you like the benefits of this product?”

Non directive questions: This is usually two way communication between salesperson and

customer. These questions would typically begin with, What, Why, Who, Where, When and How

(referred to as the 5W’s & H).

Rephrasing questions: A salesperson would respond to a customer’s statement with a question.

“Are you saying that the price is the most important thing you are interested in?”

Redirect questions: This is a question asking for an agreement on a certain subject. “Do we agree

that having a supplier reduces the cost?”


Give an example of a direct question?

10.9 IS THE PROSPECT SILL NOT LISTENING?

After using all of these methods but still unable to get the Attention, Interest, Desire, Conviction or

Purchase from a potential customer, the salesperson will need to revert to alternatives. These

alternatives are, for example, forcing the prospective customer to participate in the presentation by


using questions to retain attention. It is also important not to confuse a communication problem with a

prospects problem with the product.

Ask a customer questions like:

“What are you looking for in a product”

“What benefits do you want from a product”

“What do you not like from similar products?”

10.10 BE FLEXIBLE IN YOUR APPROACH

A salesperson needs to be flexible to be able to cope when moving

away from the original plan. A salesperson will need to adjust to the

needs of the prospect as the prospect is the most important part of

the sales presentation.

You can imagine when you, as a salesperson, created a presentation of 50 pages, but when you

come to page 10, you realise that the customer is already bored. The salesperson will now need to

do what he/she can to save the situation.


Why does a salesperson need to be flexible?

10.11 CONCLUSION

A salesperson needs to start building trust in the beginning of the sales presentation. The beginning

of the presentation is called the approach as it is the first interaction with the prospect or customer. It

is therefore important for the salesperson to use the correct approach by using various techniques to

achieve success.



1) Make use of a practical example for each of the below approaches

a. Shock approach

b. Curiosity approach

c. Customer benefit approach

2) “So what you are saying is that comfort is more important to you than price when

purchasing a pair of shoes”. This is an example of:

a. Nondirective questioning

b. Direct questioning

c. Rephrasing questioning

d. Redirect questioning



process

Study Unit 11: Elements of a

Great Sales Presentation

In this study unit we will discuss the purpose and essential steps of the sales presentation,

the six sales presentations mix elements, difficulties that may arise during the sales

presentation and how to handle them. The needs of a prospect can be determined by

properly diagnosing the individual’s personality. According to this the sales presentation can

be designed.

“People don't ask for facts in making up their

minds. They would rather have one good, soul-

satisfying emotion than a dozen facts.”

Robert Keith Leavitt


LEARNING OUTCOMES


Discuss the purpose and essential steps of the sales presentation

Give examples of the six sales presentation mix elements

Describe difficulties that may arise during the sales presentation and explain how

to handle them

State how to handle discussion of the competition

Explain the need to properly diagnose the prospect’s personality to determine the

design of the sales presentation

11.1 INTRODUCTION

This chapter will create an understanding of the bigger purpose of a sales presentation as well as the

elements and the three major steps within the presentation. The sales presentation mix will give a

better understanding of what a presentation consist of.

The presentation can also be enhanced by the use of visual aids, technology, dramatisation and

demonstration in order to ensure a successful presentation that will satisfy the needs of a customer.

11.2 GOLDEN RULE: PRESENTATION

Place yourself in front of a panel of customers from an organisation that want to buy a product. The

presentation you deliver can mean the make or break of a million rand deal and a future client base.

As a salesperson, it is important to understand and convey the product to this panel in the best way

you can to ensure a successful sale. It could be nerve wrecking, but it is as easy as showing and

telling the panel everything you know about the product, which is the purpose of a presentation.

11.3 THE PURPOSE OF THE PRESENTATION

The main goal, or purpose, of a presentation is to provide information to the prospective customer in

order for them to realise a need or want for the product. This information could be in the form of a

discussion of the product, marketing plan and the business proposition.

The information that the presentation needs to convey in order to fulfil its purpose is to provide

knowledge via the features, advantages, benefits of the product. This will allow the buyer to develop

personal beliefs which can result in a need or want. If a customer has realised a want/desire, the

salesperson has the duty to attempt to convert the want into a need by using an attitude that will fulfil

the need of a prospective customer. These results are in the conviction stage of the mental buying

process which was discussed in the previous chapter of this book.


11.4 THREE ESSENTIAL STEPS WITHIN THE PRESENATION

When presenting the salesperson should understand that there are three essential steps within the

presentation.

Step 1: Discuss the features, advantage and benefits of the product with the prospective customer.

Make sure that these are discussed comprehensively.

Step 2: Present the marketing plan of the selling organisation.

Step 3: Explain the business proposition which shows the customer what he/she is paying in relation

to the benefits gained.


Name the three essential steps in a presentation?

11.5 THE SALES PRESENTATION MIX

The sales presentation mix refers to the elements a salesperson will assemble to sell a product to a

customer, which are the following: Participation, Proof, Visual aids, Dramatization, Demonstration and

Persuasive communication

PERSUASIVE COMMUNICATION

There are many different ways that you can make your communication persuasive, they are as

follows

Logical reasoning this requires prospects common sense by requiring them to think about the

proposition and to compare alternative solutions to the problem

Persuasion through suggestions - this is the use of suggestion to arouse attention, interest, desire,

conviction and action.

Sense of fun: The salesperson needs to keep the presentation professional but at the same time

having the right mental attitude to make it fun. A fun presentation can be used to keep the attention of

the prospect.

Personalised relationships: Due to the fact that each sale is different, each presentation must be

personalised in a unique way that builds trust. Being honest in the presentation will build trust

between the salesperson and the customer. Remember that “Honesty is the best policy”.

Trust: As recently mentioned, honesty and trust go hand in hand.


Body language: A salespersons body language can project or portray a positive image by smiling for

example. Body language was also explained in chapter three.

Be a diplomat: The salesperson needs to be a diplomat in chases in which tempers rise and

prospects are wrong but feel they are correct and will not change their opinions whereby retreat

would be the best option

PARTICIPATION

The second element is getting the prospect to participate in your presentation, which include

questioning (how you felt how soft this blanket is), product use (you take this vacuum cleaner and

clean those dirty marks for yourself), visuals (showing before and after pictures) and demonstrations

(showing how you can remove tough stains with the new liquid cleaner)

PROOF

This requires proving to the prospect during the presentation that the products benefits and the sales

persons proposals are legitimate, this can be done in various ways, through including past sales in

their presentations, to using the guarantee aspect of the sales, to using testimonials from previous

people that have used the product, to using company proof results and lastly through using

independent research results

VISUAL AIDS

Many companies provide their sales people with visuals for their products with the intent of producing

mental images of the products features, advantages and benefits. This can be in the form of the

actual product, photographs, and charts indicating performance or even a copy of the guarantee


Name 3 visual aids that can be used

DRAMATISATION IMPROVES CHANCES

Dramatisation refers to talking or presenting a product in a striking,

showy or extravagant manner. Any salesperson should be able to

dramatise the product sold in order to improve the chances of

making a successful sale. Salespeople use dramatisation to make

the product look and sound good in order for the customer to buy

it. Sometimes, unethical salespeople will dramatise so much that it

is more fiction than reality.


A salesperson will tell a customer that the network he/she is selling is so fast that it instantly

downloads any program. In reality, the network could well be very fast but cannot instantly download

a program as the salesperson promised.

We have all seen demonstrations of products, whether it is on television or in real life. Television can

be used as a visual aid to demonstrate how a mop works. The objective will be for a prospect to feel,

see, hear, smell and use the product in order for the customer to understand how well the product

works before purchasing


Why do salespeople use visual aids, dramatisations and demonstrations?

11.6 THE SALES PRESENTATION GOAL MODEL

A salespersons decision as to which elements of the sales mix to use will depend on the goal that the

salesperson has with the presentation. The following are questions which can be asked to increase

the understanding of the elements.

What are the objectives of the presentation?

Who is the audience?

How is the presentation structured?

How will the presentation create an impact?

Will visual aids be displayed?

In which stage is the presentation?

The answers of these questions will give the salesperson insight into the goal of the presentation as

well as deciding which elements of the sales mix are important.

11.7 THE IDEAL PRESENTATION

The ideal presentation will be one where the technique used captures the prospects attention and

interest very early in the presentation. The ideal prospect on the other hand is one who is friendly,

polite and relaxed. A friendly prospect will also cheerfully and positively answer questions.

An example is when a customer answers questions enthusiastically thanking you for your valuable

time.


11.8 BE PREPARED FOR PRESENATION DIFFICULTIES

There will always be times when a salesperson is confronted by interruptions. The salesperson will

need to know how to handle these interruptions. Consider the following ways in which a salesperson

can handle these interruptions mentioned in your prescribed textbook.

There are three things a salesperson needs to consider before mentioning anything about the selling

organisations competitors.

Do not refer to a competitor unless necessary.

Acknowledge your competitors only briefly and drop it immediately thereafter.

Make a detailed comparison of your product and your competition’s product only if you know

what you are talking about.

When dealing with difficulties, the salesperson should be professional, be accurate, be straight

forward and most importantly be honest. Advantages and disadvantages of competitive products can

be mentioned if done professionally.


List 4 ways a salesperson can handle interruptions within a sales presentation

11.9 CONCLUSION

There are essential steps that a salesperson can follow to ensure a successful sales presentation. In

addition, the salesperson can use the six sales presentation elements to control the presentation. The

sales presentation will not always be successful because he/she can be faced with difficulties. It is

important to manage these difficulties – ‘think on your feet’. Knowing how to handle the discussions

around an organisations competition and how to link a sales presentation with a prospects personality

are important aspects that must be determined.



1) Which of the following is not part of the salespersons presentation mix?

a. Persuasive communication

b. Dramatisation

c. Recommendations

d. Demonstrations

2) The order of the five purposes of the sales presentation are as follows

a. Knowledge, beliefs, desire, attitude, conviction

b. Knowledge, desire, beliefs, attitude, conviction

c. Desire, knowledge, beliefs, attitude, conviction

d. Desire, knowledge, attitude, beliefs, conviction

3) Explain the term of countersuggestion as a persuasion technique in your own words, using

an example to show your understanding



process

Study Unit 12: Welcome your

prospect’s objectives

In this study unit we will discuss the way in which a relationship can improve the sales

process. It is important that salespeople would be open towards a customer’s objections as

these can give a salesperson valuable insight into why customers might not be happy.

Everything that a salesperson does should reflect and answer the customer’s objection to

ensure no doubt will be left in the customers head.

“A good objective of leadership is to help those

who are doing poorly to do well and to help those

who are doing well to do even

better.”

Jim Rohn


LEARNING OUTCOMES


Explain why it is important to welcome a prospect’s objectives

Describe what to do when an objection arises

Discuss seven basic points to consider in meeting a prospect’s objectives

Explain six major categories of prospect objectives and give an example of how to

handle each.

Present, illustrate and use techniques in your presentation to meet the prospect’s

objectives

Describe what to do after meeting an objection

12.1 INTRODUCTION

In this chapter we would look at why it is important to welcome a prospect’s objectives, discuss the

seven basic points to consider and describe what to do after meeting an objective. The six major

categories of prospect objectives would be explained in order to handle each of the objectives.

Present, illustrate and the use of techniques in your presentation would assist in meeting the

prospect’s objectives.

12.2 GOLDEN RULE: OBJECTIONS

When selling a product, a salesperson needs to understand how to act when

faced with objections by a customer. For some industries, a salesperson might

face more objections than others but in the end, all salespeople will sometime be

confronted with an objection or objections.

Consider the following example: The salesperson says, “Good day sir, can I interest you in the

product I sell?” The customer answers, “No thank you, my agent sells much better quality products.”

12.3 WHAT ARE OBJECTIONS?

In practice, objections to products are commonly known as a sales objection. This is when a

customer has an opposing idea of information that a salesperson carries over. When customers

object to a product, it could men one of two things:

Interested: Customers could object because they are interested in the product and want to know

more about the benefits of the product that is presented. A customer will typically ask, “But can the

tablet take a picture?” The salesperson should reply by saying, “Yes, indeed it can take pictures with

its HD 13 megapixel camera.”


Not interested: A prospective customer can reject a product and therefore object to it based on its

functionality In other words, a customer who does not have interest in a specific product will try to find

a fault with the product.

A customer who has used an Apple Mac computer for the past 10 years will try to degrade a Mecer

computer just because the customer thinks Apple is the best product on the market.

12.4 OBJECTIONS AND THE SALES PROCESS

As discussed in previous chapters, salespeople have realised the importance of a trial close. It is

important to realise that the trial close asks customers for their opinion which will most probably raise

some objections. When an objection is raised, the salesperson should:

First determine the objection

Use an objection handling technique

Address the person’s objections

Ask a trial close to ensure that the customer’s question has been answered.

A salesperson can determine an objection by allowing a customer to talk. Do not try to lead the

conversation too much as this will enable the customers to give their opinion. Exhibit 12.1 illustrates

the cycle that the sales process can follow.


What should the salesperson do when an objection is raised?

12.5 BASIC POINTS TO CONSIDER IN MEETING OBJECTIVES

How can a salesperson maximise that chance that he/she meets the customer’s objective? There are

some basic points that can be used.

The salesperson should make different scenarios in order to plan for the different objections

that a customer might have in terms of a product. By doing this, the salesperson will ensure

that he/she will be able to answer all the questions with confidence.

According to The Free Dictionary, forestalling means preventing something from happening

before it happens. Anticipating a potential objection before it happens is a tactic that

salespeople use in order to reduce possible customers concerns, in other words being

proactive.

It is always better to try and resolve objections as they arise because a customer will regard

any unanswered questions as a negative factor of the product or service.


Being and thinking positive will reflect in the salesperson’s presentation and body language.

Showing interest in a prospective customer’s opinion is another way of maintaining a positive

environment.

It is very important to listen to the objections a customer makes

as it can benefit both salesperson and customer. The salesperson

and customer are both looking for more information to better

understand each other. By listening, a salesperson can gather

more information about the needs of customers and thereby

improve their needs.

Once a salesperson fully understands how and why customers make objections, the salesperson can

use this to improve the customer’s perception of a product.


List the basic points to consider when meeting objections

12.6 SIX MAJOR CATEGORIES OF OBJECTIVES

There are six major categories in which salespeople can place objectives. The following figure

describes each category.



Name the six major categories of objections?

12.7 TECHNIQUES FOR MEETING OBJECTIONS

When a salesperson understands the different and most common

objectives it is important to understand the different techniques that a

salesperson can use when these objectives arise. The following are

some techniques used to meet an objective raised by a customer.

Dodge: This is one common technique salespeople use is to ‘dodge’ questions and objections that

customers ask. This is not the best way to treat customers as it shows that the salesperson is not

prepared for the presentation. Because a salesperson is the windows of an organisation, the

organisations reputation can be damaged.

Pass up the objection: Sometimes it is better to not reply to a customer’s objection. In other a

salesperson can gain a lot by gaining some insight into a customer. An example is when a customer

says, “I am not interested in your product.” The salesperson can ask, “Why aren’t you interested?”

This could create a gap where a salesperson can present his/her product.

Rephrasing the objection: Many salespeople like to ask a question with the objection that has been

made by the customer for example, “The price is too high?” the salesperson can reply by saying, “I

understand, but for all these extra features, isn’t it actually a bargain?

Postponing an objection: Customers can sometimes ask questions too early in the presentation,

politely informing the customers that the question will be answered in the next couple of slides could

be a good idea.

Boomerang method: The salesperson’s job should always be to reroute an objection into a reason

to buy. This is usually done by convincing a customer that the objection that has been raised is

actually a benefit of the product.

Ask questions: “What product range are you interested in?” By asking questions a salesperson can

learn a lot from the customer. “Why do you not like this product?”

Direct denial: Sometimes customers have their own opinions of products which might not be true.

The salesperson can correct the customer by acknowledging the customers statement and thereafter

answering the question with the correct facts.


Indirect denial: When using this method, the salesperson will initially appear to agree with the

customer only to correct him/her in subtle way. “Yes but…”

Counterbalance: A counterbalance means that a few good reasons for buying must be present in

order to balance out a negative factor. The salesperson needs to ensure enough positive factors are

present before trying to sell a product.

Third party: Using an existing customer who gives a testimony is an example of third party answers.

This can influence a customer’s perception.

12.8 TECHNOLOGY CAN EFFECTIVELY HELP RESPOND TO OBJECTIONS

Technology should be used to provide customers with the necessary information in order to change

the objection into a positive factor for a product. Displaying customer information, like average sales,

should be shared with a customer. Technology is such a big part of our daily lives that it should be

used to meeting objectives.


How can technology be used to help respond to objections?

12.9 AFTER MEETING THE OBJECTION – WHAT TO DO?

Asking for a customer’s opinion would be the obvious route to follow after the objection has been met.

“As explained, this product has the necessary features in contrast to you objection. Wouldn’t you

agree that it covers your concerns?”

After asking for an opinion, the salesperson can move back to the presentation and eventually close

the sale with the customer. In the case that the sale cannot be closed, the salesperson should be

sure to discuss benefits, features and advantages in order to outweigh the disadvantages a customer

might have realised from the product.

12.10 CONCLUSION

After studying this chapter, you should be able to know the importance of welcoming a prospect’s

objectives and how to handle each of the objectives. You would also be able to present, illustrate and

use techniques in your presentation to assist in meeting the prospect’s objectives.



1) Which of the following is not an example of the 6 major categories of objections?

a. Hidden objections

b. Money objections

c. Product objections

d. Distribution objections

2) “I know you have a good product and I like what you have had to say, but our present

product works well, I think we will stay with it”, is an example of

a. Money Objection

b. Stalling Objection

c. No-need Objection

d. Hidden Objection

3) Explain in your own words what the boomerang method is



process

Study Unit 13: Closing begins

the relationship

In this study unit we will discuss the way in which the presentation should be closed and how this

would affect the relationship between the salesperson and the customer. There are some essential

techniques that can be used to a better chance of closing successful. A salesperson should prepare

for possible difficulties that might arise when closing.

“A person isn't who they are during the last

conversation you had with them - they're who

they've been throughout your whole relationship”

Rainer Maria Rilke


LEARNING OUTCOMES


Explain when to close

Describe what to do if your prospect asks for more information, gives an objection

or says no when you ask for the order

Explain why you must prepare to close more than once

Discuss the 12 keys to a successful close

Present, illustrate and use several techniques for closing the sale in your

presentation

Construct a multiple-close sequence

13.1 INTRODUCTION

This chapter will explain the aspects of closing a sale. This includes what to do if a prospect rejects

an offer. There are some guidelines which a salesperson must use to ensure success in a sale.

These guidelines include preparing more than one close, 12 keys factors and constructing a multiple-

close sequence.

13.2 GOLDEN RULE: CLOSING

A salesperson will get to a point where he/she has confidence that it is a good time to close the sales.

The traditional salesperson would try to sell the product or service even though the customer is not

100% ready by asking, “When can we deliver the product to you?” The salesperson should rather

focus on ensuring that the customer’s needs are fulfilled when purchasing this product. This will also

contribute to the relationship between the customer and the salesperson.

13.3 WHEN SHOULD I POP THE QUESTION?

According to C. Futrell (2014), closing is the process where we help the customer make a decision

which will also benefit the salesperson. A salesperson will need to trust that his/her presentation was

good enough to convince the customer to buy the product.

Customers think about the end of a sales presentation and what they would want their decision to be

in the end. A salesperson cannot read the mind of the customer, but can look at the signs when a

customer has reached the conviction stage as discussed in previous chapters. As soon as a

salesperson realises this, it is time to close.



How would a salesperson know when to close?

13.4 READING BUYING SIGNALS

A customer will send out some non-verbal signals which can be realised by the salesperson in order

to realise a customer’s readiness to close. These are called buying signals and will mean that the

customer has reached the conviction stage. The following are signals which will show a customer’s

readiness.

The customer will be asking questions like “How much does it cost?”

Customers will also sometimes ask peoples opinion whom they trust. A husband can ask his

wife the following, “What do you think about this?”

A customer would become relaxed and friendly because the pressure is released from the

situation.

When a customer takes out an order for and starts filling it in, the salesperson can know that

the customer is ready for the close.

When a customer closely analyses and scrutinises the product.

13.5 WHAT MAKES A GOOD CLOSER?

There are some key characteristic that all good closers have in common. These increase the

likelihood of closing successfully:

Strong desire to close each sale successfully

Positive attitude towards the customer

Positive attitude towards the product

Know and understand their customers

Tailor each presentation to suit the specific needs of a customer

Carefully listen to what a customer says in order to define needs

The salesperson will not stop the first time a customer says no to a product.

After closing and the salesperson has asked the customer to place and order or buy a product, the

salesperson should not say anything as it could reduce the chances of a successful sale. Consider

the following example:

Salesperson: “Sir, would you be interested in placing an order for this product”

Customer: “Yes where do I sign?”


Salesperson: “You can sign here. Usually other customers wait until they saw the prototype before

signing for a product.”

Customer: “In that case I will wait as well.”

As per the example, a customer’s mind can be changed when speaking any further about the

product. One exception can be asking the customer for referrals.


What are the key characteristics that good closers have in common?

13.6 CLOSING UNDER FIRE

Never accept the first no from a customer but rather try to close under fire, meaning that the

salesperson would need to close although he/she might be in a bad mood or unwilling to buy.

13.7 DIFFICULTIES WITH CLOSING

It is said that closing is the easiest part of the sale. A common reason why salespeople have difficulty

in closing a sale is usually because they are not comfortable to close due to confidence. Another

reason why a salesperson can find it difficult to close, is when the/she realises that the customer is

disinterested or demands different quantities. A poor presentation can come from a salesperson who

had not developed a customer profile or a customer benefit plan before the presentation.


What is a common reason for difficulty in closing?

13.8 ESSENTIALS OF CLOSING A SALES

In your prescribed textbook there are a number of essential factors necessary for closing a sale. If

these are present in the presentation, it is likely that the presentation could result in a success.

Always be aware that a memorised sales presentation is likely to be unsuccessful

13.9 PREPARE CLOSING TECHNIQUES

The principle on closing techniques is as follows: The more techniques, the better the success rate.

Try to use as many closing techniques as possible. Although the prescribed textbook lists the 11

most common, each salesperson will need to develop his/her own which suits them the best. The


techniques are summarised in a table below, it is important you are able to briefly explain each of

them in an exam/assignment

Techniques for closing the sale

Alternative-choice close T-account or balance sheet close

Assumptive close Standing-room-only close

Compliment close Probability close

Summary-of-the-benefits Negotiation close

Continuous-yes close Technology close

Minor-points close

13.10 PREPARE MULTIPLE-CLOSE SEQUENCE

By keeping several different closes ready in any situation, you are in a better position to close more

sales. An example of a multi-close is when a salesperson closes and realise that the statement

should be rephrased to change the viewpoint of the customer. In chapter 11, the five –question

sequence was explained which helps in this situation where a customer does not want to give a

reason for not buying.

13.11 CLOSE BASED ON THE SITUATION

A salesperson should adjust the closing style to suit the situation. For example, if the customer

believes that the competitor has a better product, the T-account approach can be followed. As well as

if the sales presentation comes to a complete halt as everyone is needing to be in another meeting

close it off by saying I will put everything in a sales proposal for you

13.12 RESEARCH

Research is necessary for answering two important questions namely;

What makes one sales call a success and the other a failure?

Do salespeople make common mistakes which could prevent success?

Researching should be used to answer these questions. When these questions are answered, the

salesperson would have a better chance of closing successfully. The following are mistakes which

were found to prevent successful sales:

A salesperson who does not ask enough questions


Over controls the conversation with too many close-ended questions

Do not respond to customer needs with the relevant benefits

When a salesperson gives benefits prematurely this means that the customer’s needs were

not recognised.

When not recognising negative attitudes

Weak closing statements


Which two questions does research answer?

13.13 CLOSING BEGINS THE RELATIONSHIP

It is said that a relationship between a salesperson and customer starts once a sales has been

successfully closed. A salesperson will now have the opportunity to sell a product to this customer in

the future. Now that customers understand the products sold, and have a relationship with a

salesperson, the future sales will become easier.

13.14 WHEN YOU DO NOT MAKE THE SALE

All salespeople have to get used to rejection in order to survive in the sales industry. There are two

very important things to do when a prospective customer does not want to buy.

Act as a professional

Find out why the prospect does not want to buy


What do you do if a customer does not what to buy?

13.15 CONCLUSION

By now we have a better understanding of the close after presenting a product/service to a potential

customer. As we realise in this chapter, preparation of the various techniques to ensure a successful

close is very important. If a salesperson does not prepare these techniques before the presentation,

the chances are greater that the sale will fail.



1) Which of the following is not an example of a closing technique?

a. Alternative Choice

b. Minor-points

c. Probability

d. Chance

2) “I am not sure if I have your size, would you want them if I have them in stock?” is an

example of:

a. Probability close

b. Minor points close

c. The standing room-only close

d. Compliment close

3) In your opinion how many times should you close a sale?



process

Study Unit 14: Service and

follow-up

After the close has been made, a salesperson will continuously need to follow-up and maintain

service levels in order to ensure that customers are 100% satisfied. By doing this, a salesperson can

ensure future and follow-up sales as the customer will not have to look for competitors’ products.

Handling complaints effectively is a major part of a customer’s level of satisfaction towards a product

and/or service.

“Success comes from taking the initiative and

following up... persisting... eloquently expressing

the depth of your love. What simple action could

you take today to produce a new momentum

toward success in your life?”

Anthony Robbins


LEARNING OUTCOMES


State why service and follow-up are important to increase sales

Building friendship

Discuss how follow-up and service result in account penetration and improved

sales

List the eight steps involved in increasing sales to your customer

Explain the importance of properly handling customer’ returned goods requests

and complaints in a professional manner

14.1 INTRODUCTION

Customer service and follow-up are important as it increases sales and results into account

penetration and improved sales. Handling customer requests in a professional manner would help

build friendship and increase sales to the customers by applying the eight steps explain in this

chapter.

14.2 GOLDEN RULE: SERVICE

Following up with customers and customer service is all about taking care of the customers and their

needs. By following up after a sale has been made, a salesperson shows that he/she really cares.

Many salespersons’ loose sales due to the fact that they cannot put others needs before their own.


What is the golden rule of selling?

14.3 THE IMPORTANCE OF SERVICE AND FOLLOW-UP

Following-up through maintaining a contact, a salesperson can almost ensure customer satisfaction.

It is therefore very important to follow-up after making a sale. This also ensures that a long-term

business relationship can be built and maintained.

Salespeople generate ideas of how they can take care of customers over the years. It is important

that salespeople realise that being caring towards customers will build relationships.

Another thing to note is that there is a considerable difference noted in making a sales call for the

sake of making it and making a sales call because you genuinely want to solve someone’s problems

and truly care. The approach you took in the beginning is vital to demonstrate when following up, a


customer doesn’t want to find out you were only a friendly guy because you were looking for the sale

and now afterwards you don’t even follow up or your follow up call is abrupt and brief.

14.4 BUILDING A LONG-TERM BUSINESS FRIENDSHIP

In the 21st century things have changed in terms of sales relationships. Today, salespeople are

focused on creating, building and maintaining long term business relationships. A business friendship

is the relationship between a salesperson and a client that revolves around business related issues.

In order to do this, it is important to notice the three different levels relationships might be in.

Acquaintances

Friends

Intimate friends

Any relationship needs a structure to survive. For this reason, a salesperson must ensure that he/she

creates this structure as a foundation on which the relationship can be built. The following are the two

most important ingredients for building this structure.

Truly caring

Placing others interest before your own


What are the three levels of relationships?

14.5 RELATIONSHIP MARKETING AND CUSTOMER RETENTION

After looking at the way in which a solid structure and foundation for a long term relationship is built, a

salesperson should also consider the three levels of customer relationship marketing that exists.

Relationship marketing is activities which are aimed at building and managing trust in the form of a

long-term relationship with a customer. It is important to understand the differences between these

three levels of customer relationship being: transaction selling, relationship selling and

partnering.

With this relationship marketing, a salesperson should understand and implement the 4P’s of

marketing to facilitate this relationship. These four P’s are: product, price, promotion and place



In your own words, provide an explanation of what you think customer service is

14.6 CUSTOMER SATISFACTION AND RETENTION

Customer satisfaction is the degree to which satisfaction is provided in terms of delivered products or

services. By satisfying a customer, a salesperson opens up the door for future sales. There are a few

terms you should familiarise yourself with in this section

Customer satisfaction means how much the customer likes the product, service and relationship.

Customer loyalty is the customer’s commitment to a company and its product for the long run

Value is seen as the ration of benefits to costs. Customers invest a variety of costs into doing

business with you, from financial, time and human resources. The customers achieve a certain

bundle of benefits in return for these investments


What is customer satisfaction?

14.7 EXCELLENT CUSTOMER SERVICE AND SATISFACTION REQUIRE TECHNOLOGY

A salesperson should always attempt and aim to provide the best possible service in order to realise

the best possible customer satisfaction. Using modern technology is one way of facilitating this and

making it easier for salespeople to deliver excellent service.

14.8 HOW DOES SERVICE INCREASE YOUR SALES?

All salespeople should continuously strive to obtain new customers day by day. Although this is

important, a much easier way is just to ensure repeat sales from existing customers by means of

good customer service. If a customer receives great customer service and a relationship is

established, the customer is less likely to look around for other products. For this reason, it is

important to keep customers happy by which customers will be retained and reference can be

obtained. By constantly receiving referrals, a salesperson will have a continuous increase in new

customers, reducing the necessity for actively looking for new customers.


14.9 TURN FOLLOW-UP AND SERVICE INTO A SALE

As mentioned before, it is very important to follow-up on sales in order to keep customers happy. This

will in turn secure future sales. A simple follow up could be how is the product operating for you, is

there anything you still don’t understand, or something simple as I just wanted to give you a heads up

but your car is due for a service in the next month so you probably want to book it in for a service

14.10 ACCOUNT PENETRATION IS A SECRET TO SUCCESS

Follow-up creates goodwill between the customer and the salesperson. This will reflect back to the

account in order to realise the maximum benefits for all parties involved.

According to C. Futrell (2014), account penetration is the ability to work and contact people

throughout the account, by discussing the product. Account penetration is dependent on knowledge

of the account’s key personnel and their situation.

An example of account penetration is if you meet the need of supplying junior engineers with design

software, you should be able at a future stage to develop a personalised presentation for the seniors

as you would already identify the need for them to effectively and efficiently communicate (their

technology must speak to each other) amongst each other, hence maximising sales within the

account. The account penetration is determined by a number of factors listed in your prescribed

textbook

14.11 SERVICE CAN KEEP YOUR CUSTOMERS

Consider the following six factors which can be used to ensure that customers will continue buying

from you, as a salesperson, in the future.

Try to improve account penetration

Contact new accounts frequently and regularly

Handle customer complaints properly

Do what you say you will do

Provide service as you would with a royalty

Show appreciation

14.12 HANDLE COMPLAINTS FAIRLY

According to Johnston & Marshall (2010), when customer expectations are not met,

customers perceive a performance gap between what you promised and what you

delivered. Performance gaps result in customer complaints

Handling customer complaints should be marked as important as customers might

become angry and frustrated when these complaints are not attended to as soon as


possible. This could lead to loosing valuable customers. The following are reasons why customers

can be dissatisfied with products, which are mentioned in your prescribed textbook

When dealing with these types of complaints, the salesperson should always try to be as honest and

calm as possible as this will calm a customer as well. Being hostile towards a customer will just make

the situation worse and anger the customer.

14.13 IS THE CUSTOMER ALWAYS RIGHT?

This is an age-old question that has never been answered. The reason therefore is that salespeople

should decide this for themselves. Although some will easily say that the customer is always right,

salespeople must always be aware of dishonest customers that might require something that they do

not deserve.

In this case, salespeople must have problem solving techniques in place if this problem should

arise. Salespeople should be thick skinned or even armoured to face unethical and dishonest

customers.

14.14 BUILD A PROFESSIONAL RELATIONSHIP

There are eight very important points to remember when it comes to building a professional

relationship with customers.

1. Be truthful and follow through on what you promise customers

2. Maintain intimate knowledge of the firm and product

3. Speak well of others

4. Keep information confidential and

maintain professional relationship

5. Never take advantage of a customer

6. Be active in community

7. Think and act like a professional

8. Provide service above and beyond

the call of duty

14.14 DO’S AND DON’TS FOR BUSINESS SALESPEOPLE

All salespeople should try to follow the trend and characteristics found with top business salespeople.

To better understand the dos and don’ts for salespeople, go through Exhibit 14.10 and 14.11.

14.15 CONCLUSION

It is important to understand the role that service and follow-up helps increasing sales and results in

account penetration and improved sales. After studying the eight steps on how to increase sales to


customers you would know that by handling customer request in a professional manner friendship

would be built which in turn result in increased sales.

Revision Exercises 14

Revision Questions (these are based on the “End-of-Chapter Exercises and the Discussion

and Examination Questions at the end of Chapter 1 of the prescribed textbook):

1) On the path to sales success, there are 4 things to remember, which of the below doesn’t

belong:

a. Seek customers to serve and you will find them

b. ask and people will buy

c. be persistent until you get the sale

d. knock and people will open their doors

2) What is customer satisfaction? What is customer loyalty? Is one more important in the

long run than the other?


Part 4: Managing yourself,

your career and others

Study Unit 15: Time, territory

and self-management

This chapter gives insight on how to manage ones time and territory. Time is especially important as

it is a limited source. A territory should be established by a salesperson towards the needs of the

prospective customers in a geographical area.

“Most people would like their own ways and other

people's means.”

Robert Keith Leavitt


LEARNING OUTCOMES


Discuss the importance of the sales territory

Explain the major elements involved in managing the sales territory

Explain why salespeople need to segment their accounts by size

Calculate a salesperson’s break-even point per day, hour and year

15.1 INTRODUCTION

In this chapter the importance of the sales territory and the major elements in managing the sales

territory would be discussed. Time management is important as salespeople need to segment their

accounts by size and calculate the break-even points per day, hour and year.

15.2 GOLDEN RULE: TIME

Due to the limitedness of time, it is a very precious, if not the most important

asset of each and every person. Time is money, is therefore a lifestyle for all

salespeople as time wasted is time that could have been used to make another

sale.

15.3 CUSTOMER FORM SALES TERRITORIES

According to C. Futrell (2014), sales territory is a geographical area or group of customer assigned to

a salesperson. Refer to Exhibit 15.1 on page 444 to better understand the reasons why organisations

develop and use sales territories. Below is a table with a few more reasons of why Time and territory

management is important for both the sales person and the sales manager

Reasons for sales people Reasons for sales managers

Increased productivity Ensure territory and customer coverage

Improve Customer relationships Minimize sales expenses

Enhance personal confidence Asses sales performance

Align company policies with customers’ expectations

Table: Johnston & Marshall (2010)


Although most sales organisation use sales territories, there is a minority that do not use sales

territories. There are four reasons why organisation will choose not to use sales territories.

Salespeople might be motivated if not restricted

Some organisations are too small to segmented

Management might not have the needed know-how for territory development

Personal friendship might be basis for attracting customers


Why would an organisation choose not to use sales territories?

15.4 ELEMENTS OF TIME AND TERRITORY MANAGEMENT

Time and Territory Management (TTM) is a continuous process of planning,

executing and evaluating sales and service provided to customers. There are 7 key

elements used to determine TTM which will ensure the salesperson will provide

excellent service they will be explained briefly below

SALESPERSONS SALES QUOTA: This is determined by the manager for the sales person, the

amount/quota the salesperson is expected to reach

ACCOUNT ANALYSIS: Firstly the salesperson should identify all prospects and present customers

and secondly analyse their sales potential. You could be given a poor area out in the country side,

whereby everyone has the need but no one has the money. There are two general approaches in

which a salesperson can analyse an account.

Undifferentiated selling – whereby the sales person recognises that their territory is filled with

people having the same needs, for example being given an industrial area filled with

engineers, they could all have similar needs

Account segmentation approach – when the salesperson recognises that their territory is filled

with a bunch of different people with different needs, for example they may be given a city

centre, consisting of various different companies in malls, with headquarters of various

different businesses

Also, there are two ways of segmenting an account, namely:

Multiple selling strategies

Multivariable account segmentation


It is important to understand these segmentation strategies as it is a major part of sales management

in practice.

DEVELOP ACCOUNT OBJECTIVES AND SALES QUOTAS: Now that the salesperson has been

given an overall quota he needs to develop objectives and sales quotas for the individual products for

current and potential accounts, which can be done through product assortment or just increasing

current distribution

TERRITORY-TIME ALLOCATION: Is determining how a salesperson should allocate their time

within their territory, which includes time taken for making sales calls, travel time, non-selling time etc.

Typically you would allocate time directly proportional to the potential of the sale that the account

represents.

RETURN ON TIME INVESTMENT: This requires the sales person to use their time effectively.

Determining how much sales volume a salesperson must generate to meet costs in a territory. It is all

about time management and using your time wisely, for example if you are early for a meeting try one

or 2 cold calls from your car, or taking a prospect to lunch as you need to eat anyways so you might

as well make it productive, also cold calling early in the morning from the office while there is still

traffic and make your meetings during times when there is no traffic.

You need to determine a breakeven point which determines how much sales volume a salesperson

must generate to meet costs in a territory; this can be done in a simple calculation below:

For example the sales persons fixed costs of petrol, sales brochures and telephone calls adds up to

R500. The gross profit percentage, meaning the profit divided by the amount the goods were sold for,

is 30%.

Hence the breakeven point for the sales person, the amount of money the sales person should

generate to meet the costs is R1666



Calculate the break-even point, the fixed cost percentage is 25% and the sales persons fixed costs

are as follows:

Petrol: R150, Telephone calls: R50 & printing of brochures: R100


Discuss 3 ways an effective salesperson can manage time

CUSTOMER SALES PLANNING: this involves developing a sales plan for each customer from call

objective, customer profile and customer benefit program

SCHEDULING & ROUTING: Scheduling, according to Futrell (2014), is the fixed time of day for

visiting customers, as mentioned earlier it would probably be between the hours of 9:30 – 15:00 when

there isn’t traffic. Routing is the travel pattern used in working a territory; therefore the route should

flow from start to finish and should cover all of your territory.

15.5 CONCLUSION

After studying this chapter you would be able to manage your time and segment accounts by size,

calculate the break-even points by day, hour and year. You would also understand the importance of

the sales territory and the major elements in managing the sales territory.



1) Which of the following doesn’t explain the best way to design a route?

a. It should improve territory coverage

b. Spending the most possible time in your car

c. Establish communication between management and the sales force

d. Minimize wasted time

2) Which of the following isn’t an example of a time and territory management element?

a. Territory and customer evaluation

b. Mileage calculation

c. Account analysis

d. Customer sales planning

3) You are vice-president for your company and are speaking with your sales managers from

around the country. You have been asked by the CEO to prepare a five minute

presentation on why time and territory management is so important to the company. List

and describe 3 reasons of why it is so important


Part 4: Managing yourself, your career and others

Study Unit 16: Staffing and

training salespeople

Training is a very important part of managing a sales force. You can imagine how difficult a new

employee will adapt to processes when no training is provided. This is especially true when a

salesperson needs to take the role of a sales manager because these two jobs are worlds apart. By

means of sales force planning, an organisation can keep up to speed with the training and staffing of

sales force.

“Confidence comes from discipline and training”

Robert Kiyosaki


LEARNING OUTCOMES


Discuss the relationship between a firm’s marketing plan, sales force and the sales

force’s budget

Describe the organisation of a sales force

Explain the two major elements involved in staffing the sales force – personnel,

planning and employment planning

Discuss what is involved in training the sales force

16.1 INTRODUCTION

In this chapter we will discuss the relationship between a firm’s marketing plan, sales force and the

sales force’s budget. The organisation of a sales force will be described, the two major elements

involved in staffing the sales force and what is involved when training the sales force.

16.2 GOLDEN RULE: MANAGEMENT

Management in a sales organisation is a bit different to other departments. In a sales organisation,

the sales personnel managers fulfil the same role of a sports coach. They are paid to keep

salespeople on track in order to ensure customers satisfaction with a product and service.

Even if salespeople do not have the characteristics needed, they should ensure that customers feel

that they have. These characteristics include caring, joyfulness, helping and the unselfish treating of

others.

16.3 TRANSITION FROM SALESPERSON TO SALES MANAGER

There is a difference in qualities which one will usually find between a salesperson and a sales

manager. When a salesperson is promoted to a sales manager’s job, there are some changes and

transitions that the person will have to go through. Thee major changes are as follows.

Qualities are different for salespeople and sales managers especially in attitude towards job and

responsibility.

Perspective changes

Goal changes

Responsibility changes

Satisfaction changes

Job skill requirement changes

Relationship changes


The transition from salesperson to sales manager will typically move through 7 predictable phases as

they don’t make the transformation overnight. Together with these seven phases, also make sure you

understand the problems new managers experience as well as the key to making a successful

transition.


How do the qualities for salespeople and sales managers differ?

16.4 WHAT IS THE SALARY FOR MANAGEMENT

Most people strive towards a higher position. This is due to the personal reward

of operating and managing an organisation as well as the financial rewards

linked to a ‘promotion’. This is based on the assumption that larger

organisation’s usually have higher revenues, heavier responsibility, and thus

higher remuneration. Salaries are usually related to various different things

mentioned in your prescribed textbook


To what do salaries relate to?

16.5 OVERVIEW OF THE JOB

According to C. Futrell (2014), sales management is the achievement of set goals through 5 functions

being planning, staffing, training, directing and evaluating organisational resources. According to

AMA is defined as the planning, direction and control of personal selling, including recruiting,

selecting, equipping, assigning, routing, supervising, paying and motivating as these tasks apply to

the personal sales force

One major factor that influences a manager’s success is the ability to influence the behaviour of all

involved.

It is important, in terms of effective leadership, for a sales manager to recruit and provide motivation

to a sales force. In order to better understand the basic functions of a sales manager, read through

exhibit 16.3.



List and briefly explain the five basic functions for sales managers?

16.6 SALES FORCE PLANNING

It is important that the sales force in an organisation also plans in terms of developing plans as well

as strategy and tactics for meeting business objectives. Sales forecasting and budgeting is also a

form of planning from the sales force. It is important that a salesperson understands the difference

between the organisational design and organisational structure.

Not only should the sales force plan, but the organisation should also plan the sales force and how

they will fit into the organisation.

Organisational design: The organisational design is a formal, coordinated process of

communication, authority and responsibility for a sales groups or sales force.

Organisational structure: An organisational structure is a formally defined relationship among jobs

within an organisation. This is usually in the form of an organisational chart.

16.7 STAFFING: HELPING THE RIGHT PEOPLE TO SELL

Staffing is the activity that an organisation does to attract people to work at the organisation. This

comprises of 2 elements, namely people and employment planning

PEOPLE PLANNING: The planning of people (otherwise known as people planning) in an

organisation can be determined by the following four factors:

Sales force size – depends on the product mix, market coverage and nature of the product

being sold

Type of people – through developing a job analysis and job descriptions they can get the right

applicants applying

Job specification – qualifications necessary for the position

EMPLOYMENT PLANNING: The term employment planning refers to recruitment and selection of

applicants for the sales job right from the start of recruiting all the way through to the applicant

accepting the employment offer

Recruitment involves searching for, finding and interviewing people for the job.

The entire process includes understanding what the recruiters are looking for in a candidate, putting

an application letter together which briefly describes the company to the candidate as well as the role


and experience the candidate has, then next the candidate will submit a resume. The resume will

either adhere to the requirements and be asked for an interview or it won’t adhere and will be kept on

the database for possible future usage. From the interview you may be asked for a follow up interview

after which a job offer or no job offer will be presented.


What is the difference between employment planning and recruitment?

16.8 TRAINING THE SALES FORCE

Organisations focus a lot on training employees especially when it comes to

its sales force. It is important to understand the purpose of training, training

methods, how training takes place as well as who is involved in training.

First things first you need understand the purposes of sales training which

you can familiarise yourself with a list of reasons in your prescribed textbook

There are 3 basic training methods being the following:

Discussion: whereby a case study is presented of a success story and discussion starts around that

or a video tape is shown, where a meeting of a particular salesperson was filmed and discussion can

stem from how well or not well the salesperson conducted the meeting

Role playing: When sales people team up and the one acts out the sale to a hypothetical buyer being

their team mate, the presentation is video-taped and discussed afterwards. Role playing makes it real

for the sales person, having hands-on training is sometimes best for the trainee to learn where they

are going wrong and what they can improve.

On-the-job Training: whereby new salespeople may accompany their managers and learn from

visiting real clients

16.9 WHERE DOES TRAINING TAKE PLACE & WHO IS INVOLVED IN TRAINING

Training can occur in a centralized space whereby all salespeople all over the country needing

training come together to one point, which can be a resort, a conference centre etc. Another option is

decentralized training, whereby it occurs in a branch office or at the salespersons house or in their

car


The people involved in the sales training are the corporate staff trainers (the internal trainers who

have an ongoing relationship with the sales force), staff force personnel (the people getting trained)

and outside training specialists (outside company’s specialising in sales training)

16.10 CONCLUSION

By understanding the two major elements involved in staffing the sales force you would now be able

to identify the necessary training the sales force needs. After describing the organisation of a sales

force you would understand the relationship between a firm’s marketing plan, sales force and the

sales force’s budget.


1) Which of the following are not examples of purposes of sales training?

a. to add it to your resume

b. Lowering selling costs

c. Obtaining feedback

d. Improving knowledge regarding product, company, competitors and selling skills

2) Which of the following is not a major change a sales person experiences when they

become a manager?

a. Goals change

b. Relationships change

c. Personality change

d. Responsibilities change

3) Mention 3 problems new managers experience and then 3 ways the can overcome these

challenges to make a successful transition


Part 4: Managing yourself,

your career and others

Study Unit 17: Motivation,

compensation, leadership and

evaluation

Although most people think and act as if motivation can only be implemented through a salary or pay

cheque, motivation can be implemented in different ways and forms. There is a difference between

remuneration and salary which is very important to understand in the sales sector. This is because

most salespeople receive different forms of remuneration instead of a fixed salary.

“Do your job and demand your compensation - but

in that order.”

Cary Grant


LEARNING OUTCOMES


Present and discuss the five elements of the motivation mix

Explain the basic methods of compensating salespeople

Review three approaches to leadership and suggest leadership techniques for

improving the sales manager’s effectiveness

Discuss why salespeople must be evaluated, who should evaluate them, when

they should be evaluated, what performance criterion should be evaluated and

how evaluations should be conducted

17.1 INTRODUCTION

Motivation, compensation and leadership would be discussed and all the elements needed to apply

them to a salesperson. We will also discuss why salespeople must be evaluated, who should

evaluate them, when they should be evaluated, what performance criterion should be evaluated and

how evaluations should be conducted.

17.2 GOLDEN RULE: MANAGEMENT

The golden rule of management in the form of motivation, compensation, leadership and evaluation is

all based on the principle of integrity, trust and good moral. Self-centred sales leaders will only look

after their own interests instead of the customer’s interests. This attitude will never work in a sales

environment, which is why it is critical to employ the right person.

17.3 MOTIVATION OF THE SALES FORCE

Sales managers should motivate the sales force at two levels, namely:

Motivation of the individual Salesperson

Motivation of entire Salesforce

According to C. Futrell (2014), motivation means arousal, intensity, direction and persistence.

17.4 THE MOTIVATION MIX

There are five broad factors in the motivational mix being: the basic

compensation plan, special financial incentives, non-financial rewards,

leadership techniques and management control procedures



What are the five broad factors in the motivational mix and provide a brief description of each?

THE BASIC COMPENSATION PLANS

It is very important that anybody working in sales should realise that a salesperson’s compensation

means something more than just money. When looking at the motivational mix, it is important to

realise that there are other methods of rewarding a person other than just money. There are even

non-financial ways of motivating a person which sales managers could implement. Sales

performance can be rewarded in 3 fundamental ways being: direct financial rewards (salary increase,

bonus), career advancement (larger accounts, bigger territories) and nonfinancial compensation

(recognition dinners, small gifts and certificates).

Straight salary: where the sales person is paid a set salary a month

Straight commission plan: whereby if you don’t sell anything you don’t earn anything, with there

being 2 types of commission straight commission and draw against commission

Combination plan: whereby a proportion of the salesperson’s total pay is guaranteed while some of

it comes from commissions

With each of these methods comes advantages and disadvantages, familiarise yourself with a few of

each


In your own words define draw against commission

THE TOTAL COMPENSATION PACKAGE

When choosing a sales career, the salesperson must take the financial and non-financial factors into

consideration. Whereby your pay cheque could be made of finance, as well as incentive plans and 10

additional benefits



What are the two major parts of compensation?

NON-FINANCIAL REWARDS

Many organisation, use non-financial rewards to motivate employees. For example, Google

employees have fun offices and are allowed to play sports in lunch time. Some salespeople who do

well can be transferred to bigger departments with better opportunities and more challenges or

receive recognition through achievement awards

LEADERSHIP IS IMPORTANT TO SUCCESS

A survey showed that the most important factors to manage a sales force is the sales manager’s

ability to motivate and secondly the ability to lead. Therefore, leadership is also a very important

factor for success. There are 2 extreme types of leadership being Task orientated (telling people what

to do, how to do it and when to do it) to the other end being relationship behaviour (which involves

two-way communication and is people orientated. There are 4 basic leadership styles being: tells,

persuades, participation and delegates.


Provide a brief explanation of the four basic leadership styles?

17.5 PERFORMANCE EVALUATIONS LET PEOPLE KNOW WHERE THEY STAND

Acceptable levels of performance should be evaluated to better understand the position an

organisation’s sales force are in, this is where a management control systems is established.

There are many reasons why performance evaluation should be done, when the evaluation should be

done and the performance criteria.


When should salespeople be evaluated?


17.6 CONCLUSION

After studying this chapter you would be able to understand the evaluation process on salespeople

and what it entitles. You would also now why motivation, compensation and leadership elements is

needed by the salespeople.


1) If a salesperson is new to the job and is unsure of how to develop a sales presentation,

the best type of leadership style chosen should be:

a. Participates

b. Delegates

c. Persuades

d. Tells

2) Which of the following is not a reason for a performance evaluation?

a. To review your paycheque

b. To motivate salespeople to improve their performance

c. Appraise a salespersons past performance

d. Develop a sales plan to increase the salespersons future sales


ANSWERS TO STUDY UNIT QUESTIONS

CHAPTER 1:

Exercise 1: Why should a salesperson depend on a customer?

Without a customer, there is no sale.

The customer is the purpose, or foundation of the sale.

Customers can easily buy similar product elsewhere.

Exercise 2: Shortly, what does relationship selling mean?

You would draw exhibit 1.10 of your textbook, showing the customer is at the center of the

sales solar system thus showing that your customer is the centre of your organisation, hence

your organisation is customer centric, with the four below characteristics surrounding the

customer.

Service – providing a value added service, Mercedes Benz always ensures your car is

washed after you send it in for a service

Gain Commitment – getting the customers commitment that they do see the need to purchase

the product, this would be done by you addressing their needs correctly

Present product benefits – in terms of presenting the features, attributes and benefits of the

products

Analyze needs – ensure you successfully analyze the customer’s needs, don’t try sell them a

Ferrari when you speaking to a mother with 4 children

Exercise 3: What are the main reasons why a sales job is different to other jobs?

Rewarding

A lot of travelling

Salesperson takes sole responsibility for reputation of the organisation

High level of self-discipline

Salesperson has separate goals from an organisation

Hard work has a direct impact on salary every month

Exercise 4: Name and explain any 4 of the 9 functions of a sales person?

Example: Builds long term relationships with customers – when a customer trusts a sales person a

long term relationship is established, they will continue purchasing from you, you should continue to

go the extra mile for these customers as they are perceived as less effort and a cheaper customer to

maintain than acquiring a new customer


Revision Exercises Answers

Question 1: D

Question 2: C

Question 3: Having conceptual skills, is the ability to see the selling process as a whole and the

relationship among its parts. For example selling to a mother would require the sales person use his

conceptual skills and have empathy throughout the entire selling process as she is tired, with less

disposable income, however a sales person could use this to his advantage as she would buy

anything that would make her life easier. Again a sales person conceptual skills would come into

account towards the end of the process offering a flexible payment plan due to the fact that providing

for a baby makes finances tight.

Human skill – is the skill to be able to relate to other people. An example would be a sales person

would need to be able to relate to a mother and then in the next meeting adapt his approach and be

able to talk to a lady high up in the corporate world

Technical Skill – is the mastery of the methods, techniques and equipment involved in selling. An

example is a sales person can’t arrive at a meeting with no idea of how to link his computer with the

projector, or he can’t not try demonstrating a product he hasn’t been educated on how to do it

correctly.

CHAPTER 2

Exercise 5: Write a short definition of marketing in your own words?

Marketing is the activity that creates value for customers and the society at large.

Exercise 6: When selling a product with excellent service, what is the benefit to be drawn from

the salesperson’s point of view?

Profit

Satisfaction of happy customers

Building new relationships


Exercise 7: if you were the marketing manager of KFC, provide a short explanation of each of

the 4 p’s being applicable to your business?

Product – The product which will be sold to the customer being the products mentioned on the

menu from chicken burgers, chicken wraps to ice creams.

Price – At what price the product will be sold, this would be influenced if they take an entire

meal it would be cheaper than buying the burger and the chips on their own, thus encouraging

customers to buy the meal.

Promotion – How the product will be promoted, KFC is generally promoted through the

mainstream advertising being television and outdoor media.

Place – Where the product will be sold, the product is only sold at KFC outlets, you have the

option of sitting at the franchise to eat or if they have drive through you can purchase your

meal at the KFC and eat it at home

Exercise 8: Provide a brief explanation of each of the levels of relationship marketing as well

as provide a practical example of each to show your understanding

Transactional Selling: this is when customers are sold to and not contacted again, an example

would be KFC, when going through the drive through on holiday in Durban, when your holiday

is finished you won’t be visiting that branch again

Relationship selling: the seller contacts the customer after the purchase to determine if they

are satisfied and have future needs, for example a blinds company, after installation would

contact you asking if it meets your expectations and also phone every year to see if they need

repairing.

Partnering: the seller works continually to improve its customers operations, sales & profits for

example an engineering software company such as Autodesk, works closely with the big

engineering company’s in training their employees on the latest upgrades as well as new

features to the software as well as constantly trying to improve their way and efficiency of

doing business hence showing better ways to save their massive files.

Exercise 9: a) What are the three roles of consultative selling

They should be committed to helping customers succeed in satisfying their needs in the long

term.

To remain involved with the customer over time.

To remain focused on the customer needs when developing recommendations and

suggesting products


b) A salesperson doing consultative selling of requires them to take on 3 roles, briefly explain

each of the roles

The team leader role – whereby the sales person coordinates all the information, resources

and activities need to support customers before, during and after the sale

The business consultant role – the sales person gives advice and service, using internal and

external resources to gain an understanding of customers business and market place

The long-term alley role – Salesperson acts as a helper in meeting the customers’ needs

Exercise 10: What is the key to success?

Understand the target market

Use marketing as a vehicle

Use the 4P’s to aid a salesperson


Question 1: D

Question 2: D

Question 3: The purpose of a business is to make a profit, as no business will survive without one, it

is a means to an end. A profit allows for the production of goods/services as well as marketing of

these goods and services. Ultimately the goal of a business is one in which the market place and

work place is a mutually respected environment

CHAPTER 3

Exercise 11: How does a person on the pre-conventional level feel about ethics?

This person is not interested in ethics and would rather look after his/her own interests.

Exercise 12: How does reciprocity fit in with the golden rule?

Reciprocity is beneficial to both parties involved in a sales transaction, however the golden

rule says that a salesperson should do something for the client without expecting something is

return.

Exercise 13: What are the values a salesperson should possess to be ethical?

Honesty

Trust

Following the rules


Conducting yourself in the proper way

Treating others fairly

Demonstrating loyalty to the organisation

Carrying your share of the work

Exercise 14: Discuss any 3 ethical problems that organisations can encounter with regards to

their sales force and prove a practical example to show your understanding

Example of just 1: Misusing companies assets: sales person often misuse automobiles, expense

accounts, samples for personal benefit. For example if I am a sales person for a bottling company, an

example of unethical practice misusing companies assets, would be to take samples home for my

child’s arts and crafts day

Exercise 15: Briefly explain any 4 out of the 7 ways in which management can help an

organisation be more responsive

Example: Create ethical structures – creating ethical committees who oversee company ethics and

provide rulings on questionable ethical issues. For example if the workforce feels the amount they are

being refunded for fuel per kilometre is too small, and people have started claiming they have

travelled further to make ends meet, this should be bought forward to the ethics committee who

would rule that this is unethical however they will propose to the board that the amount remunerated

per kilometre should be increased


Question 1: C

Question 2a) The term price discrimination means selling the same quantity of the same

product to different buyers at different prices. An example of such would be the Kruger National Park

charging cheaper entrance rates to South Africans than tourists

Question 2b) Reciprocity refers to buying a product from someone if the person or organisation

agrees to buy from you, hence illuminating competition. An example of this would be South Africa

accepting Ethiopia’s coffee as sole provider in return for South Africa being the sole gold provider for

Ethiopia, however this puts all other coffee industries at a disadvantage as they are unable to expand

their business into our country


CHAPTER 4

Exercise 16: Briefly explain the black box approach by using a practical example

When a person is exposed to a sales message for example a person looking to buy a car, gets the

entire presentation from the car sales person of its fuel consumption, service plan, speed etc.

However when it comes to the sales person asking for the sale the consumer says no and walks of

the show room floor, the black box is the information in the buyer’s mind that tells us why they buy or

do not buy. For this situation the black box could reveal the information that the only thing the

consumer wanted to do was to take the car for a test drive because his friend said it was an

awesome car, therefore he had with no real intention of buying

Exercise 17: Name a characteristic of a person who is on the conscious level of awareness?

These people know what they want.

Exercise 18: Explain the difference between feature, advantage and a benefit in terms of using

a car as a practical example?

Feature – Physical characteristic, This is the physical characteristics of a product like size,

colour, flavour, shape, taste, uses etc. The VW Golf 6 has a 2L turbo engine.

Advantage – Increase the products attractiveness, This refers to the performance

characteristics. When the product is classified as an augmented product, the advantages can

be used to increase the chances of making a sale. For example, the VW Golf 6 has a built in

GPS which other cars do not usually have

Benefit – Favourable results a customer will receive, This is a favourable result that a

customer receives from the product. Benefits of the VW Golf 6 would be that it can accelerate

0-100 in 6.9 seconds.

Exercise 19: What does a trial close mean and give an example?

The trial close is that question salespeople ask you in the middle of their presentation or

phone call.


Exercise 20: Name the four steps that can be used to incorporate the sell sequence into the

trial close?

Show the products features

Explain the advantages

Lead into benefits

Let the customer talk and listen

Exercise 21: Name an example of a product on the extensive decision making category?

Exclusive cars, mining equipment, expensive jewellery etc.

Exercise 22: How does a buyer make decisions? What are the 5 basic steps in the decision

making process?

Need arousal – when the consumer knows that using public transport to get to work is too

unreliable hence the need to buy a car

Collection of information – going on the internet to collect information about all the possible

car brands

Information evaluation – the buyer evaluates his needs being a mode of transport to get him

from point a to b, hence it needs to be affordable and safe

Purchasing decision – he decides to go with a Chevy Aveo as it is within his budget and has

airbags for safety

Post purchase thinking process – the buyer’s needs will be exceeded when the car arrives

with a bottle of champagne and the fuel consumption is incredible.

Exercise 23: What does a potential customer need in order to make the final buying decision?

Customer should perceive a problem, desire to fulfil need, realise that the product will satisfy

needs, a will to buy and the necessary resources.


Question 1: A

Question 2: C

Question 3: Purchase dissonance is experiencing tension over whether the right decision was made

in buying the product. An example of such is when woman go shopping and they buy a new pair of

shoes, knowing full well they have an entire cupboard full of shoes, they get home and they can’t

really find an outfit to wear the shoes with, they start doubting if they should have bought the shoes in

the first place, this is an example of purchase dissonance


CHAPTER 5

Exercise 24: Name the elements of communication?

Source, encoding process, message, medium, decoding process, receiver, feedback and

noise.

Exercise 25: What does ideal-self mean?

How the person sees himself/herself or their personalities

Exercise 26: Which buying style will a customer have when he/she wants everything in an

organised order?

Thinker style

Exercise 27: Name different messages of body language a salesperson can use to interpret

how a customer feels?

Acceptance signals

Caution signals

Disagreement signals

Revision Exercise Answers

Question 1: A

Question 2: D

CHAPTER 6

Exercise 28: Name the different ways in which a salesperson can obtain knowledge on how to

sell products?

Only through sales training and experience.

Exercise 29: Provide 4 examples of possible company knowledge a salesperson can include

in their sales presentation

The growth of the organisation. The customers would like to know that the organisation is

successful and that the product warrantee and after sales service is still applicable after the

purchase has been made.

The organisational policies. An example of a policy is a warrantee that states that if the

product breaks within the first year, it will be repaired free of charge.


The organisational procedures. This is the way in which the organisation handles and

processes orders for example. The salesperson should know how long the process will take to

get the product to the customer and needs to explain this process to the customer.

The production. The salesperson would need to know how the production of the organisation

works. The customer could ask for 200 units of a certain product. The salesperson would

need to know whether the organisation would be able to produce 200 additional units and how

long it will take.

What service facilities the organisation has. This is very important to a customer as they want

to know that the salesperson and the organisation will not ‘disappear’ after the purchase has

been made.

Exercise 30: What are the categories of typical product questions a customer would ask? Why

is it important to know these categories?

Product performance

Physical size and characteristics of the product

How the product operates

Specific features and, advantages and benefits

How well the product sells

A salesperson needs to prepare so that he/she has the answer before the customer asks it.

Exercise 31: Who are the role players in a distribution channel and provide an example of

each of them?

Producer – the farmer farming the fruits and vegetables

Wholesaler – The PNP wholesale factory, which collects the stock from the producer and

packages it for it to be distributed to all the different retailers

Retailer – The PNP Hyper, PNP Supermarket & PNP Mini market

Customer – the end user of the product

Exercise 32: Name the six basic types of advertising programs that an organisation can use to

get through to the customer?

National advertising which is designed to reach all users of the product

Retail advertising used to reach people within a particular geographic area

Co-operative advertising – advertising the retailer conducts with cost paid for by the

manufacturer. For example, PNP advertising the new Sony Television, and its features on

television, at a special price only at PNP

Trade advertising – undertaken by the manufacturer and directed towards the wholesaler or

retailer


Direct mail advertising – mailed directly to the consumer, this to be a huge part of readers

digest advertising, whereby you would get mail delivered to your door of a catalogue of the

latest books available

Exercise 33: How can a product price be determined?

By considering the satisfying attributes for which a customer is willing to exchange money for

the product

Exercise 34: What is the difference between the internet and the World Wide Web?

Internet is a global network connecting millions of computers in more than 100 countries

The WWW is a complete set of documents on the internet which can be called the

infrastructure of the internet

Exercise 35: What does Netiquette mean?

It is a term used for etiquette on the internet.


Question 1: C

Question 2: B

Question 3: Personal Productivity

Contact management software is a listing of all customers and suppliers contact details which

a salesperson gains through the course of business

Calendar management is a function that will make remembering an appointment easy

Automated sales plan is where an automatic reply can be sent to customers immediately after

an initial sales call – normally to thank them for their time with contact details, should they

wish to contact the salesperson again.

Geographic information system allows a salesperson to view and manipulate customer’s

information on an electronic map.

Computer based presentation such as PowerPoint can be used to imbed video clips, sound

clips, pictures etc.

CHAPTER 7

Exercise 36: What are the two main categories?

New customers

Repeat (existing customer)


Exercise 37: Name the two main reasons why salespeople look for new prospects?

To increase sales and to replace customers who are lost over time

Exercise 38: What does the leaking bucket concept mean?

The leaking bucket concept is a representation of salesperson that needs to find new

customers or sell more products to customers as the older customers reduce

Exercise 39: Name and explain 5 prospecting methods?

a. E-prospecting is a new method of prospecting online through websites and email. This is used

by most organisations these days.

b. Cold canvassing is when a salesperson calls random people presenting their product in the

hope that a customer will like the idea. This would usually be used by real estate agents or

banks.

c. Chain customer referral is a method of asking a customer for referrals. When the referral

changes into a customer, the salesperson would ask for referrals.

d. Orphaned customers are customers who left the organisation which a salesperson will contact

again.

e. Sales lead clubs are groups of salespeople in various fields who share leads and prospecting

tips.

Exercise 40: For which sources can a group of prospective customers be gained?

Leads

Referrals

Orphans

Own customers

Exercise 41: Why do many salespeople not ask for referrals?

Clients do not want to provide referrals as they are afraid of upsetting friends and relatives.

Clients do not want friends to think they are talking about them behind their backs.

Clients may believe in the product but not in the salesperson.

Clients fear the salesperson may not be around for the years to come.

Revision exercises answers

Question 1: D

Question 2: C


Question 3: Does the prospect have the money to buy – Does the product you are trying to sell them

fit with in their budget, does the consumer have disposable income to purchase the product you are

offering them

Does the prospect have the authority to buy – in terms of a child buying a toy, they don’t have the

authority to buy it even though there clearly seems to be a need, the person of authority that is

actually is going to do the purchasing is the adult, therefore you would need to be able to recreate

that need and get the buy-in from the parent

Does the prospect have the desire to buy: is there an actual need for this product or is the consumer

just doing window shopping, does the consumer see a need to purchase your product

CHAPTER 8

Exercise 42: Name the ten steps of creating a strategic relationship with a customer?

Prospecting

Pre-approach

Approach

Presentation

Trial close

Determine objection

Meet objections

Trial close

Close

Follow-up and services

Exercise 43: Name the customers mental stages they would go through while a salesperson is

presenting a product?

Attention

Interest

Desire

Conviction

Purchase



Question 1: C

Question 2: Attention- this is about getting the prospects attention, which can be hard

sometimes. Perhaps it is you making an interesting first slide, or raising your voice slightly before the

presentation begins.

Interest – before you approach them you have done research to understand the company’s different

buying motives, why do they need your product, therefore in the presentation you need to address

this specific need to get interest

Desire – this is to bring prospects from having a luke warm interest in your product to having a boiling

hot interest in your product. Hence if you were selling an IPad, luke warm would be the product, but

such an expensive product going on sale, to create the boiling point it would mean a price reduction

to create the desire

Conviction – in this step you try to develop a strong belief that the product you are offering is the best

suited to their needs, with regards to the IPad, this could be for an academic institution saying only an

iPad allows you to download textbooks for students in an easily readable format

Purchase or Action – where the prospect takes action by purchasing, for example would you like me

to get one out the store room and gift wrap it for you, it is forcing the customer to take action

CHAPTER 9

Exercise 44: Define conference selling?

An organisation will send their employees to a customer in order to resolve a problem or for a

sales opportunity.

Exercise 45: Define a formula presentation?

The salesperson will have built a relationship with the customer through repeat sales. This

presentation will usually take around a half an hour as it is a known customer.

Exercise 46: List a few things a salesperson should accomplish in the beginning of the sales

presentation?

Give a Proper Introduction

Establish Credibility

Provide an Account List

State Your Competitive Advantage

Quality Assurance


Behaviour Styles

Exercise 47: What is the most important outcome of negotiations?

A ‘Win-Win’ situation

Exercise 48: What are the three parts of a presentation?

Presenting the product

Share the marketing plan

Share the business proposition


Question 1: A

Question 2: The 3 important parts to a sales presentation are discuss product, present

marketing plan and explain business proposition

Discuss Product – it is in this section of your presentation you will talk all about the features,

attributes and benefits of the car, especially within the car industry there are a lot of features a sales

person can use to see, from colour of the car, to ABS brakes, air-conditioning and sunroof.

Present Marketing Plan – this is when you present the maintenance plan, warranty plans and in

particular with a car sales man you would show the customer the service plan of the car as well as

when they can expect the car to arrive

Explain Business proposition – this would be the nitty and gritty’s of the deal, in your presentation you

would talk about the different financing options and discounts

CHAPTER 10

Exercise 49: How can a salesperson maximise the possibility of a successful approach?

Helping others

Exhibiting the product and/or business knowledge

Expressing the desire to solve the buyer’s problems and satisfy needs.

Choosing the correct approach

Display service attitude


Exercise 50: What are the three important objectives a salesperson should achieve?

Uncover needs

Determine if prospect wishes to fulfil needs

Try to involve the prospect in order for him/her to share needs. This can be done by asking

questions

Exercise 51: Give an example of a direct question?

Does my product offer you everything you need?

Exercise 52: Why does a salesperson need to be flexible?

To be able to adjust a sales presentation to the customer’s needs.


Question 1: An example of the shock approach is when a car wheel sales person says

that did you know with the current tread on your tire you will have to break 8 meters

before you want to come to a complete stop, however the average time it takes a driver to stop is 4

meters, so you could be finding yourself faced with a very dangerous situation

An example of curiosity approach would be giving the number 50 at the very start of your

presentation and then at the end you say are you still wondering why you holding the number 50 in

your hand, it is because through our product your productivity of your staff will increase by 50%

An example of opinion approach is used by a new sales person, saying that I am new to the industry

but I have been hearing word that after sales service is particularly poor in this industry, what’s your

opinion on this, this will show you what the real needs of the customer are in terms of after sales

service

Question 2: C

CHAPTER 11

Exercise 53: Name the three essential steps in a presentation?

Step 1: Discuss the features, advantage and benefits of the product with the prospective

customer.

Step 2: Present the marketing plan of the selling organisation.

Step 3: Explain the business proposition which shows the customer what he/she is paying in

relation to the benefits gained.


Exercise 54: Name three visual aids that can be used?

Product itself

Charts, graphics

Photos and videos

Exercise 55: Why do salespeople use visual aids, dramatisations and demonstrations?

Capture attention and interest

Create two-way communication

Involve the prospect through participation

Afford a more complete, clear explanation of the product

Obtain positive commitments on product’s single features, advantages and benefits

Exercise 56: List 4 ways a salesperson can handle interruptions within a sales presentation

Wait quietly and patiently until the attention is regained.

Briefly restate selling points that the prospect was interested in.

By showing the product, using other visuals or asking questions, the salesperson can

determine if interest is regained.

Once attention is regained, the salesperson can move on or deeper into the presentation.


Question 1: B

Question 2: A

Question 3: countersuggestion evokes an opposite response from the prospect, for example in the

sales presentation the sales person would ask “is a monthly instalment really what you want” the

customer will reply saying we are such a new business with limited capital so a monthly instalment is

exactly what we want

CHAPTER 12

Exercise 57: What should the salesperson do when an objection is raised?

First determine the objection

Use an objection handling technique

Address the person’s objections

Ask a trial close to ensure that the customer’s question has been answered.

Exercise 58: List the basic points to consider when meeting objections


Plan for objections

Anticipate and forestall

Handle objections as they arise

Be positive

Listen - hear them out

Exercise 59: Name the six major categories of objections?

Hidden

Stalling

No-need

Money

Product

Source

Exercise 60: How can technology be used to help respond to objections?

Displaying customer information, like average sales, should be shared with a customer

Revision exercises answers

Question 1: D

Question 2: C

Question 3: The boomerang method is when you are able to turn an objection into a reason to buy,

convincing the prospect that an objection is a benefit. For example the objection could be we can’t

possibly take on a new software program it will impact our productivity, the boomerang response

would be, yes in the beginning it would interrupt productivity but that’s the entire goal of implementing

it to improve your current productivity

CHAPTER 13

Exercise 61: How would a salesperson know when to close?

look at the signs when a customer has reached the conviction stage

Exercise 62: What are the key characteristics that good closers have in common?

Strong desire to close each sale successfully

Positive attitude towards the customer


Positive attitude towards the product

Know and understand their customers

Tailor each presentation to suit the specific needs of a customer

Carefully listen to what a customer says in order to define needs

The salesperson will not stop the first time a customer says no to a product.

Exercise 63: What is a common reason for difficulty in closing?

Because they are not comfortable to close due to confidence

Exercise 64: Which two questions does research answer?

What makes one sales call a success and the other a failure?

Do salespeople make common mistakes which could prevent success?

Exercise 65: What do you do if a customer does not what to buy?

Act as a professional

Find out why the prospect does not want to buy


Question1: D

Question 2: C

Question 3: Using courtesy and common sense should give you a limit to the number of times you

should close, however 3 closes is a minimum for successful salespeople, so between 3-5 should not

offend anyone

CHAPTER 14

Exercise 66: What is the golden rule of selling?

Following up

Taking care of customers’ needs

Putting a customer’s needs first

Exercise 67: What are the three levels of relationships?

Acquaintances

Friends

Intimate friends


Exercise 68: In your own words, provide your understanding of the term customer service

Refers to the activities and programs the seller provides to make the relationship satisfying for the

customer, it is these activities that add value to the customer that can either lead to them being

satisfied and ultimately a loyal customer, or unsatisfied going to your competitor

Exercise 69: What is customer satisfaction?

Satisfaction is the degree to which satisfaction is provided in terms of delivered products or

services


Question 1: C

Question 2: Customer satisfaction means how much the customer likes the product,

service and relationship. Customer loyalty is the customer’s commitment to a company and its

products for the long run. Customer loyalty is more important than customer satisfaction in the long

run because it means that a company value proposition is strong enough to move customers past

short-run satisfaction into long-run loyalty. Concluding that loyal customers will experience a high

level of satisfaction but not all satisfied customers are loyal

CHAPTER 15

Exercise 70: Why would an organisation choose not to use sales territories?

Salespeople might be motivated if not restricted

Some organisations are too small to segmented

Management might not have the needed know-how for territory development

Personal friendship might be basis for attracting customers

Exercise 71: Calculate the breakeven point

= 300 divided by 25%, = 300/0.25 giving you an answer of R1200

Exercise 72: Discuss 3 ways a salesperson can manage their time effectively

Use waiting time: if a salesperson is early for a meeting he can return some sales calls, do a

few cold calls as well as prepare promotional material in a folder for the next meeting

Have a productive lunch break: a salesperson needs to eat anyways so why doesn’t he take

one of his most valued customers to lunch and work on the deal at the same time

Records and reports: most salespeople do their admin work in their free time from filling in

sales records and reports in performance



Question 1: B

Question 2: B

Question 3: To evaluate performance: whereby individual territory performance is compared to

district performance and district compared to regional

To reduce sales expenses: avoid duplicating efforts if you are in one area, ensure you visit all

customers in that area, this will reduce mileage on the car, fuel as well as time

To obtain thorough coverage of the market: to ensure you cover your territory effectively and

efficiently, not having to go back to areas explored the previous day as you ran out of time to meet

with a customer.

CHAPTER 16

Exercise 73: How do the qualities for salespeople and sales managers differ?

Perspective changes

Goal changes

Responsibility changes

Satisfaction changes

Job skill requirement changes

Relationship changes

Exercise 74: To what do salaries relate to?

Annual sales volume of units managed

Number of salespeople supervised

Length of experience in sales

Annual sales volume of the organisation

Exercise 75: What are the five basic functions for sales managers?

Planning: establishing goals, policies and procedures that will accomplish objectives

Staffing: Attracting, hiring and retaining an effective sales team

Training: Deciding on which mentions to use, who to train and when

Directing: dealing with people positively and persuasively regarding motivation and

compensation

Evaluation: Comparing actual performance to planned performance goals


Exercise 76: What is the difference between employment planning and recruitment

Employment planning is the whole process of finding a person through to the end of them signing the

contract, whereby recruiting fits into the employment planning process, being the first step of finding

the people and interviewing them, recruitment happens before the steps of negotiations and offers

being made


Question 1: A

Question 2: C

Question 3: Challenges: New managers obviously experience problems stepping into the new role,

these vary from the company expecting the sales person stepping into the new role being fully

functional immediately, the skills of a sales person and a sales manager differ and they often don’t

have a peer group support

Overcoming these challenges, salespeople should adapt a learning attitude, whereby they are open

and willing to learn new things, they should also have realistic expectations that not all their skills

acquired through being a salesperson will work in their new role, with a new role comes new

responsibilities therefore they to a certain extent they should leave their old jobs behind. They have

the responsibility to make the new adjustments, but it shouldn’t be done all at once.

CHAPTER 17

Exercise 77: What are the five broad factors in the motivational mix?

The basic compensation plan

Special financial incentives

Non-financial rewards

Leadership techniques

Management control procedures

Exercise 78: In your own words describe draw back commission

Whereby the firm makes a monetary account for everyone, with an expectation of what an individual

needs to survive, any sales made above this amount is added as commission, if the salesperson fails

to meet this amount the money is deducted

Exercise 79: What are the two major parts of compensation?

Financial

Non-financial


Exercise 80: What are the four basic leadership styles?

Tells: whereby the sales manager makes all the decisions exhibiting a task behaviour

Persuades: The sales manager makes the decision however the salespersons cooperation is

sought by explaining what needs to be done and persuading the sales person to carry out the

instruction

Participation: above average levels of relationship behaviour and below-average levels of task

behaviour

Delegates: which shows little direction, low levels of personal contact and little supportive

behaviour

Exercise 81: When should salespeople be evaluated

At the end of each performance cycle which is related to a specific product goals or job

activities

Revision Exercise answers

Question 1: D

Question 2: A


GLOSSARY

Adaptive Selling The way in which a salesperson changes to accommodate the needs of a customer.

Augmented product Products, services and benefits in addition to the product

B2B Business to Business

Conference Selling An organisation will send their employees to a customer in order to resolve a problem or for a sales opportunity.

Competitive Advantage The advantage that an organisation has over its competition

Etiquette A way in which people are expected to act and behave

Ethics Doing the right thing when nobody looking

E-selling The sales process on the internet

Manufacturer The creator of a certain product

Marketing Communication Mix The different methods of communicating with customers through marketing

Marketing Mix The different aspects of a product aka 4P’s

Moonlighting When an employee takes on another job in addition to

one’s full time job

Mutually Beneficial Agreement Win-Win situation

Non-verbal Communication Nonverbal communication is a person’s behaviour that creates or represents meaning

Pharmaceuticals Medicines and medical products

Prospect A possible future customer

Prospecting Looking for prospective customers

Reputation Others opinions or beliefs about something or someone

Retail

Relationship Marketing

Sales of goods to the public

Marketing to current customers

Reciprocity

Where all parties benefit from a situation

Referral Directing a salesperson to another customer


Sales Force Sales employees for an organisation

Sustainability Working efficiently to insure future availability

Wholesale Selling in large quantities, mostly to retailers

WOM Word Of Mouth. When customers speak to others about a certain product which could create a potential customer

Whistle Blowing A person who raised concern of any wrongdoing


LIST OF REFERENCES

Arszulowicz, M. (2011), Whistleblowing in defence of proper action, pp.84.

Brady, D.L. (1987), Determining the value of an Industrial prospect, pp.27.

Couldron, S. (2000), Virtual Manners, pp.31,32.

Fitzpatrick, D. (2001), IBM Executive in Residence.

Gibson et al. (1997), Communication and Management.

Golding, S. (2000), City of San Diego Mayor’s Press Release.

Johnston, P. (2009), Relationship Selling, McGraw-Hill.

Krammick, S. (1994), Expecting referrals: The resurrection of a lost art.

Keefe, L.M. (2008), Marketing Defined, Marketing News, pp.28.

Kruger, E.R. (2010), Top Marketing Strategy: Applying the 80/20 Rule, pp.15.

Lefton, A.P. (1987), The lucky seven: How to roll into sales, p86-89.

Futrell, C. (2014).Fundamentals of selling:Customers for Life through Service.McGraw Hill: New York.

Rackham, N. (1988), SPIN Selling.

Ronicki, K. (1998), Managing channels of distribution, pp.151-162.

Salisbury, F. (1998), Sales training: A guide to developing effective salespeople, pp.8.

Stokes et al. (2008), Marketing: A brief introduction, pp.117.

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