Preparing for the Sale

1. Preparing for the Sale Section 2

2. What is Selling?What You’ll Learn • The definition and goals of selling • The various sales situations encountered in the business world • The definition of feature-benefit selling • How customers make decisions and the difference between rational and emotional buying decisions

3. Selling • Personal Selling – any form of direct contact between a salesperson and a customer • Retail Selling – customers come to the store • Business-to-business Selling – takes place in a manufacturer’s or wholesaler’s showroom or a customer’s place of business • Telemarketing – selling over the telephone • National Do Not Call Registry, established by the FTC in 2003

4. Goals of Selling • Help customers make satisfying buying decisions, which create ongoing, profitable relationships between buyer and seller. • Repeat business is crucial to the success of any company

5. Consultative Selling • Providing solutions to customers’ problems by finding products that meet their needs. • Problem – Customer stands all day on her new job and her feet hurt. • Solution – Salesperson suggests shoes designed for comfort and support.

6. Feature-Benefit Selling • Customers don’t buy products – they buy what products can do for them.

7. Product Features • May be basic, physical, or extended attributes • The most basic feature is the product’s intended use • Additional features add more value to the product

8. Obvious Feature This car is a bright shade of red.

9. Customer Benefits • The advantages or personal satisfaction a customer will get from a good or service • Benefits become selling points • How does the feature help the product’s performance? • How does the performance information give the customer a personal reason to buy?

10. Obvious Benefit This bright red car will attract the guys/girls

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

12. Feature Benefit Chart • A list of a product’s features and associated benefits.

13. Feature Benefit Chart

14. Feature Benefit Chart Choose an item and list at least five features and benefits.

15. Customer Buying Motives • What motivates the customer to buy? • Rational Motive – a conscious, logical reason for a purchase • Emotional Motive – feelings such as social approval, recognition, power, love, or prestige

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

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

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

19. Getting Ready to Sell What You’ll Learn • Sources for developing product information • Prospecting sources and methods • How leads are developed • Preparation for the sale in business-to-business selling and retail selling

20. The Preapproach There are some steps that a salesperson follows when preparing to assist customers. The pre-approach is getting ready for the face-to-face encounter in a selling situation. A good salesperson has knowledge of the following:

21. 1. Product Information • Direct experience • Written publications • Other people • Formal training

22. 2. Industry Trends • Read related periodicals • Trade journals • Standard & Poor’s – a publication that provides data on industry trends.

23. 3. Prospecting • A prospect, or a lead, is a potential customer • Prospecting is especially important in business-to-business selling situations.

24. Sources and Methods of Prospecting • Employer Leads • Some firms employ entire telemarketing teams to generate leads • Some rely entirely on their salespeople to find new customers

25. Sources and Methods of Prospecting • Telephone directories • Trade and professional directories

26. Sources and Methods of Prospecting • Newspapers • Birth announcements • Reports of business mergers • Commercial Lists • Salespeople can buy lists of potential customers • Email lists

27. Sources and Methods of Prospecting • Customer Referrals • The names of other people who might buy a product. • Endless chain method – salespeople ask previous customers for names of potential customers.

28. Sources and Methods of Prospecting • Cold Canvassing – blind prospecting • Going door-to-door • Selecting names from the phone book at random

29. Preparing for the Sale in Business-to-Business Selling • The preapproach activities vary depending on whether the sales call is with a previous customer or a new prospect • Research to determine the customer’s needs • Set an appointment for a face-to-face meeting

30. Preparing for the Sale in Retail Selling • Straighten and arrange stock • Adjust price tickets • Learn about stock and it’s location • Arrange displays • Clean the floor, shelves, and selling area

31. Company Policies and Training • Training • Four-step method – explanation, demonstration, trial, critique • Compensation and Sales Quotas • Often compensated by commission (% of what is sold.) • Sales quotas are dollar or unit sales goals set for the sales staff to achieve in a specified period of time. • Legal and Ethical Issues • No hard-sell tactics! • Must fully disclose the facts.

32. The Sales Process What You’ll Learn • The seven steps of a sale • The importance and purposes of the approach in the sales process • How business-to-business sales representatives conduct the initial approach • The three initial approach methods used by retail salespeople

33. Steps of a Sale • Approaching the customer • Determining needs • Presenting the product • Overcoming objections • Closing the sale • Suggestion selling • Relationship building

34. Approaching the Customer • The first face-to-face contact with the customer. • Can make or break a sale • Sets the mood or atmosphere • Establishes a relationship

35. What your mother said is true . . .

36. You never get a second chance to make a first impression!

37. The Approach in Business-to-Business Selling • Set up an appointment • Introduce yourself with a firm handshake and a smile. • Be more personal with customers you know. • Use good opening statements with new customers.

38. The Approach in Retail Selling • If customer is in a hurry, approach quickly. • If customer is undecided, let them look. • Encourage customers to look around and to ask questions.

40. Methods for the initial approach: Service Approach Method • Ask if assistance is needed. • “May I help you?” • Problem – customer says, “I’m just looking.” • Instead, ask “How may I help you?”

41. Greeting Approach Method The salesperson welcomes the customer “Good morning.” Establishes a positive atmosphere.

42. Merchandise Approach Method Let the customer look around. When they show interest in a product, the salesperson makes a comment or asks a question. The most effective approach because it gets the customer talking about the merchandise he/she may be interested in.

43. Determining Needs in Sales What You’ll Learn • Why determining needs is an essential step in the sales process. • Three methods used for determining needs.

45. Why determining needs is important: • Customer needs are related to buying motives. • When customer needs are met, the salesperson experiences a feeling of success.

46. When to Determine Needs: As early in the sales process as possible, usually right after the approach

47. How to Determine Needs • Observing – Nonverbal communication (body language such as facial expressions, hand motions, and eye movement.)

48. How to Determine Needs • Listening – Helps you pick up clues

49. How to Determine Needs • Questioning – Gets the customer talking • Begin with general questions about intended use. • Then ask Who, What, How questions

50. Guidelines for Questioning • Do ask open-ended questions that encourage talking • Do ask clarifying questions to make sure you understand needs • Don’t ask too many questions in a row – customer may feel cross-examined • Don’t ask questions that might embarrass or put the customer on the defensive