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Unit 5: Selling

Unit 5: Selling. Chapter 12: Preparing for the Sale. 12.1: What is Selling? Types of selling: Personal Selling: Any form of direct contact between a salesperson and a customer.

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Unit 5: Selling

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  1. Unit 5: Selling

  2. Chapter 12: Preparing for the Sale 12.1: What is Selling? • Types of selling: • Personal Selling: Any form of direct contact between a salesperson and a customer. • Retail Selling: The salesperson should be available to answer any questions about the product or its features the customer asks.

  3. Chapter 12: Preparing for the Sale • Types of Selling Cont. • Business-to-Business Selling: Sales that take place in a manufacturer’s or wholesaler’s show room or in a customer’s place. • Telemarketing: The process of selling over the phone.

  4. 12.1 What is Selling? • Goals of Selling: To help customers make satisfying buying decisions, which create ongoing, profitable relationships between buyer and seller. • Easier and less expensive to keep current customers happy than to make new customers. • Consultative Selling: Provides solutions to customers’ problems by finding products that meet their needs.

  5. 12.1 What is Selling? • Feature Benefit Selling:Matching the characteristics of a product to a customer’s needs and wants. • Product Features: Basic, physical, or extended attributes of the product or purchase. • Customer Benefits: The advantages or personal satisfaction a customer will get from a good or service. • Customer Buying Motives: Salespeople must know what motivates customers to buy and what decisions customers make before the final purchase. Hi Sarah

  6. 12.1 What is Selling? • Customer Decision Making: Some customers need no help from salespeople, and others require significant time and effort • Types of customer decision making: • Extensive Decision Making: Used when there has been little or no previous experience with an item. Ex: goods and services that are expensive and have high value to customers. Hi Erin

  7. 12.1 What is Selling? • Types of customer decision making cont. • Limited Decision Making: Used when a person buys goods and services that he or she has purchased before but not regularly. Ex: a second car, certain types of clothing, furniture, a vacation, and household appliances.

  8. 12.1 What is Selling? • Types of customer decision making cont. • Routine Decision Making: used when a person needs little information about a product. Ex: grocery items, newspapers, and dry cleaning services.

  9. 12.2 Getting Ready to Sell • Pre-Approach: the preparation for the face-to-face encounter with potential customers. • Product Information: • Salespeople find information through direct experience, written publications, other people, and formal training. • Businesses offer discounts to employees so they can buy and use their merchandise. • Labels provide information for clothing items and prepackaged goods.

  10. 12.2 Getting Ready to Sell • Industry Trends: sales representatives read periodicals related to their trade to gain insight into the industry. • Prospecting: looking for new customers. • Employer leads: some firms employ entire telemarketing teams to generate leads for their sales staff. • Directories: lists businesses that may be potential customers for certain industrial goods and services. • Newspapers: provide good leads for some salespeople.

  11. 12.2 Getting Ready to Sell • Commercial Lists: salespeople buy lists of potential customers from companies specializing in categorizing people. • Customer Referrals: satisfied customers give salespeople the names of other people who might buy the product. • Cold canvassing: potential customers are selected at random.

  12. 12.2 Getting Ready to Sell • Preparing for the Sale in Business-to-Business Selling: pre-approach activities depend on whether the sales call is with a previous customer or a new one. • Preparing for the sale in retail selling: • Straightening, rearranging, and replenishing the stock. • Adjusting price tickets before and after special sales.

  13. 12.2 Getting Ready to Sell • Preparing for the sale cont. • Learning where stock is located and how much is available. • Arranging displays. • Vacuuming the floor, dusting the shelves, and keeping the selling and display areas neat and clean.

  14. 12.2 Getting Ready to Sell • Company Policies and Training: • Training: a four-step process is often used by sales managers who are responsible for training new sales personnel. • Compensation and Sales Quotas: salespeople are compensated by straight commission, straight salary, or salary plus commission.

  15. 12.2 Getting Ready to Sell • Sales quotas: dollar or unit sales goals set for the sales staff to achieve in a specified period of time. • Legal and Ethical Issues: sales associates may engage in hard-selling tactics pr may lie to a prospective customer.

  16. Show & Tell: Feature/Benefit Chart • Take out your chart! • Tell me: • The product or service you chose • List 3-4 features and benefits associated with your item • What people are more concerned with (IYO) regarding this item • What you learned about this good that you did not know • Popcorn to move around the room

  17. Warm-Up Discussion • Think about a poor sales experience you have had or witnessed. • Step #1: Share with the class! • Step #2: Brainstorm how we can flip this script so the bad experience becomes a good one…

  18. 13.1 The Sales Process • Selling process: process of matching customer needs and wants to the features and benefits of a product or service. • Seven Steps of the Selling Process: • Approaching the customer-greeting the customer face to face. • Determining needs-learning what the customer is looking for in order to decide what products to show and which product features to present first in the next step of the sale.

  19. 13.1 The Sales Process • Presenting the product- educating the customer about the product’s features and benefits. • Overcoming objections-learning why the customer is reluctant to buy, providing information to remove that uncertainty, and helping the customer to make a satisfying buying decision.

  20. 13.1 The Sales Process • Closing the sale-getting the customer’s positive agreement to buy. • Suggestion selling-suggesting additional merchandise or services that will save your customer money or help your customer enjoy the original purchase. • Relationship building-creating a means of maintaining contact with the customer after the sale is completed.

  21. 13.1 The Sales Process • Approaching the customer • Has three purposes: begin conversation, establish a relationship with the customer, and focus on the product.

  22. 13.1 The Sales Process • The Approach in Business-to Business Selling: depends on you prior dealings with the customer or the work you did in the pre-approach. • The Approach in Retail Selling: customers in a hurry=quick approach, undecided customers=encourage them to look around.

  23. 13.1 The Sales Process • The Three Methods of Approach in Retail Selling • Service approach • Greeting approach • Merchandise approach • Service Approach: the salesperson asks the customer if he or she needs assistance. • Greeting Approach: the salesperson simply welcomes the customer to the store.

  24. 13.1 The Sales Process • Merchandise Approach Method: the salesperson makes a comment or asks questions about a product in which the customer shows interest. • Using Conversation Skills: the salesperson walks up to the customer and starts talking about the merchandise without asking whether the customer wants assistance.

  25. Independent Practice • Read the case study on page 280 and answer the following questions: (Due at the end of class!) • Why is sales training important? • Why are live-action drama and role playing good sales training methods? • What are ways that you can practice sales techniques today?

  26. Warm-up for 3.13.10 • Using adjective describe different types of customers…Consider: • Different habits • Different needs and wants • Different shopping styles • How can you identify these different types of customers! • How should you approach them differently?

  27. 13.2 Determining Needs in sales • When to Determine Needs: • Example of what can happen when a salesperson does NOT determine needs early on… • Salesperson: “This is one of our most popular tennis rackets. It’s perfect for you- the grip is the correct size and the large sweet spot can improve your game.” • Customer: “That’s very interesting; but, I’m not buying the racket for myself. It’s actually a gift for my nine-year-old daughter.”

  28. 13.2 Determining needs in sales • How to Determine Needs: there are three methods used to determine customer needs: observing, listening, and questioning. • Observing: look for buying motives that are communicated nonverbally. Nonverbal communication: is expressing yourself without the use of words.

  29. 13.2 Determining needs in sales • Listening: helps you pick up clues to the customer’s needs. You can use this information for the product presentation. • Questioning and Engaging the Customer: when you begin determining needs, first ask general questions about the intended use of the product and any previous experience with it. Use words like: who, what, when, where, why, and how.

  30. 13.2 Determining needs in sales • How to Refine Your Questioning: Open-ended questions: are those that require more than a yes or no answer. • Do’s and Don’ts Guidelines: 1. Do ask open-ended questions that encourage customers to do the talking. 2. Do ask clarifying questions to make sure you understand customers’ needs.

  31. 13.2 Determining needs in sales 3. Do not ask too many questions in a row. This will make customers feel as if they are being cross-examined. 4. Do not ask questions that might embarrass customers or put them on the defensive.

  32. Group Work • Choose a partner and act out the following scenario: • One person is a shopper, one is a salesperson (you pick the store!) • Salesperson should approach the shopper and inquire about his/her needs. • Salesperson practices LISTENING skills and tries to determine how to satisfy the customer. • Work through the conversation until you get the sale or the turn down. • Then switch roles! • Note: Try the three different approach methods: Service, Greeting, and Merchandise. Create different/new situations and conversationswith every approach. Be ready to “show & tell” with the class.I will be watching and listening and evaluating you on your performance!

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