preparing for the sale

Preparing for the Sale

Section 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

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

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

Consultative Selling

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

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

Solution – Salesperson suggests shoes designed for comfort and support.

Feature-Benefit Selling

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

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

Obvious Feature

This car is a bright shade of red.

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?

Obvious Benefit

This bright red car will attract the guys/girls

Unique or Exclusive Benefits

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

Feature Benefit Chart

A list of a product’s features and associated benefits.

Feature Benefit Chart

Feature Benefit Chart

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

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

Customer Decision Making

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

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

before buying the product

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

Getting Ready to Sell

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

What You’ll Learn

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:

1. Product Information

Direct experienceWritten publicationsOther peopleFormal training

2. Industry Trends

Read related periodicals

Trade journalsStandard & Poor’s – a

publication that provides data on industry trends.

3. Prospecting

A prospect, or a lead, is a potential customer

Prospecting is especially important in business-to-business selling situations.

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

Sources and Methods of Prospecting

Telephone directories

Trade and professional directories

Sources and Methods of Prospecting

Newspapers– Birth announcements– Reports of business mergers

Commercial Lists– Salespeople can buy lists of potential

customers– Email lists

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.

Sources and Methods of Prospecting

Cold Canvassing – blind prospecting– Going door-to-door– Selecting names from the phone book at

random

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

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

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.

The Sales Process

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

What You’ll Learn

Steps of a Sale

Approaching the customerDetermining needsPresenting the productOvercoming objectionsClosing the saleSuggestion sellingRelationship building

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

What your mother said is true . . .

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

The Approach in Business-to-Business Selling

Set up an Set up an appointmentappointment

Introduce yourself Introduce yourself with a firm with a firm handshake and a handshake and a smile.smile.

Be more personal Be more personal with customers with customers you know.you know.

Use good opening Use good opening statements with statements with new customersnew customers..

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.

Service Approach MethodAsk if assistance is needed.“May I help you?”Problem – customer says, “I’m

just looking.”Instead, ask “How may I help

you?”

Methods for the initial approach:

Greeting Approach Method

The salesperson welcomes the customer

“Good morning.”

Establishes a positive atmosphere.

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.

Determining Needs in Sales

Why determining needs is an essential step in the sales process.

Three methods used for determining needs.

What You’ll Learn

Why determining needs is important:

Customer needs are related to buying motives.

When customer needs are met, the salesperson experiences a feeling of success.

When to Determine Needs:As early in the sales

process as possible, usually right after the approach

How to Determine Needs

Observing – Nonverbal communication (body language such as facial expressions, hand motions, and eye movement.)

How to Determine Needs

Listening – Helps you pick up clues

How to Determine Needs

Questioning – Gets the customer talking– Begin with general questions about

intended use.– Then ask Who, What, How questions

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