BASIC SALESMANSHIP TRAINING PROGRAM

For the

Philippine Appliance Industry Association

July 7, 2006SEPCO Training Center

Ortigas AvenueGreenhills, San Juan MM

COURSE OUTLINE

I. DEFINING SALESMANSHIP

II. CUSTOMER BEHAVIOUR PATTERN

III. CONSULTATIVE SELLING CYCLE

IV.HANDLING OBJECTIONS

METHODOLOGY

LECTURE

INTERACTION

ROLE PLAY

CASE STUDY

EXERCISE

I. DEFINING SALESMANSHIPSELLING IS…

Taking an idea, planting that Idea in your customer’s mind and making them feel that they thought of it.

SALESMANSHIP

Is the Art of Persuasion; it is the ability to start with the other person’s point of view and lead them to your own.

A SALESMAN SHOULD BE…

HONEST, WITH INTEGRITY AND PROUD OF HIS PROFESSION…

I. DEFINING SALESMANSHIP

FUNDAMENTALS OF SELLING

1. PEOPLE BUY ONLY FROM PEOPLE THEY LIKE!

2. THE CUSTOMER’S BUYING DECISION IS SHAPED BY THE DIFFICULTIES AND DISSATISFACTION EXPERIENCED WITH THE PAST PRODUCTS OR PURCHASES.

3. CUSTOMERS DON’T LIKE TO BE SWEET TALKED INTO A DEAL

4. CUSTOMERS MAY FEEL UNSURE ABOUT THEIR PURCHASE DECISION

I. DEFINING SALESMANSHIP

FUNDAMENTALS OF SELLING

1. PEOPLE BUY ONLY FROM PEOPLE THEY LIKE!

Seller must win the customer’s, trust and admiration

Seller must make a good first impression

Qualities of a “likeable” person

I. DEFINING SALESMANSHIPFUNDAMENTALS OF SELLING

2. THE CUSTOMER’S BUYING DECISION IS SHAPED BY THE DIFFICULTIES AND DISSATISFACTION EXPERIENCED WITH THE PAST PRODUCTS OR PURCHASES. Seller must be able to discover and learn about the customer’s past experiences (PROBE SKILL)

Seller must be able to show how his product will address the most important of the customer’s concerns. (PRESENT SKILL)

I. DEFINING SALESMANSHIP

FUNDAMENTALS OF SELLING

3. CUSTOMERS DON’T LIKE TO BE SWEET TALKED INTO A DEAL

Seller should effectively handle questions and objections.

Seller should guide (NOT FORCE) the customer to make a sound decision.

Seller should have a genuine concern to help the customer meet his goal.

I. DEFINING SALESMANSHIPFUNDAMENTALS OF SELLING

4. CUSTOMERS MAY FEEL UNSURE ABOUT THEIR PURCHASE DECISION

Seller should be able to reassure customer that they made the right decision.

Seller should be able to establish a “continuing” relationship with the customer

I. DEFINING SALESMANSHIP

QUESTIONING TECHNIQUES

OPEN QUESTIONS Questions that cannot be answered with Yes or NO. Questions that require more than a limited response.

CLOSED QUESTIONS Questions that can be answered with Yes or No. Questions that can be used to clarify or confirm information given by the customer.

SOME PITFALLS TO AVOID WHEN ASKING QUESTIONS:Closing your own Open questions.Asking long questions.Asking successive closed questions.

II. CUSTOMER BEHAVIOUR PATTERN

Types of Purchase Decision:

Impulse Buy – Nice to have; Not High Value Influenced by attractive sales promotions Discounts, Buy One Take One, Premium Give Aways Zero percent interest

Planned Buy – Need to have; Usually of High Value The decision to buy is precipitated by persisting difficulties experienced by the customer or a long time aspiration that he wants to realize (want need)

II. CUSTOMER BEHAVIOUR PATTERN

PURCHASE DECISION PATTERN: PLANNED PURCHASE

A. Contentment / Denial

B. Awareness / Acknowledgement

C. Action / Decision

D. Criteria

E. Exploration

F. Selection

G. Reconsideration

II. CUSTOMER BEHAVIOUR PATTERN

PURCHASE DECISION PATTERN: PLANNED PURCHASE

A. Contentment / Denial

The customer is happy with the product he currently uses, and sees no need to replace or buy a new one, happy with his current situation, he may aspire for something but thinks that his aspiration can wait.

The customer may see some things he does not like about the product but doesn’t think it’s a big deal.

B. Awareness / Acknowledgement

The customer may already be experiencing problems. The customer is already discontented. He now acknowledges that he is dissatisfied. but may not yet be ready to do something about it yet.

II. CUSTOMER BEHAVIOUR PATTERN

PURCHASE DECISION PATTERN: PLANNED PURCHASE

C. Action / Decision

The dissatisfaction builds up. The customer RESOLVES to act on the problem.

D. Criteria

The customer defines what he wants in the product that he PLANS to buy For smart customers, these set of criteria is

quantified (measured).

E. Exploration

The customer is now ready to buy. He may look at several alternatives before settling on his final choice.

II. CUSTOMER BEHAVIOUR PATTERN

PURCHASE DECISION PATTERN: PLANNED PURCHASE

F. Selection

After considering the choices that he has, the customer makes the final decision to purchase.

G. Reconsideration

The customer may experience “buyer’s remorse”; and may wonder whether or not he made the right choice.

III. CONSULTATIVE SELLING CYCLE

A. OPEN

B. PROBE

C. CONFIRM

D. SPECIFY

E. PRESENT

F. CLOSE

G. MAINTAIN

III. CONSULTATIVE SELLING CYCLE

A. OPEN

Introduction

Introduce yourself and your company. Keep introduction short. Don’t preempt your presentation.

Initial Benefit Statement (What’s In it for the Customer)

A teaser on how the customer will benefit from your product, to catch the customer’s attention and interest.

Process

Tell the customer what will happen.

Time

How long it will take?

III. CONSULTATIVE SELLING CYCLE

B. PROBE

Background

The objective is to get information about the customer’s current situation. In asking background probes, the salesman should keep his strengths in mind.

Identify

Ask questions that will reveal areas of Dissatisfaction, Problems or Discontent with the current product.

Developing

Continue asking questions about the problem, dissatisfaction or discontent previously identified. Get Curious.

Impact

Finishes the probing sequence; allows the customer to realize the larger consequence of his difficulties, problems or dissatisfaction.

III. CONSULTATIVE SELLING CYCLE

Example:

“So you are interested in buying a washing machine, what kind are you using now ?” (background)

“How many are you in the family?” (background)

“Who uses the washing machine?” (background)

“What kind of clothes do you wash?” (background)

“How is the performance of your “old” machine?” (Identifying)

“What are your difficulties?” (Identifying)

“So, what happens if you wash all your heavy clothes and draperies in your machine?” (developing)

How long does it take to finish all those wash loads?” (developing)

What is the effect to you and your family?” (Impact)

Product: Durable, Heavy Duty Washing Machine

III. CONSULTATIVE SELLING CYCLE

C. CONFIRM

State a brief summary of the information gathered during the Probing Sequence. Confirm the needs of the customer.

“According to you, your current machine bogged down during an important event; and you don’t want that to happen again.”

D. SPECIFY

Clarify criteria; encourage customer to give specifications.

“I know now what you need, a machine that is durable with reliable after sales support; one that will provide a service machine in the most unlikely event that you had a problem with your machine.”

III. CONSULTATIVE SELLING CYCLE

E. PRESENT

Feature The Product Attribute that directly addresses the customer’s most important need.

Advantage An added benefit not be directly related to the customer’s need.

Benefit It is your solution to your customer’s needs.

ExplanationIt explains how the Feature Works.

Confirm Make sure that the customer is happy with the recommended solution.

III. CONSULTATIVE SELLING CYCLE

F. CLOSE

Confirm the benefits “Don’t you agree that…?”

Ask for a Commitment Alternative - “Would you like the… or the…?” Direct - “So, shall we now prepare the order form?

Discuss Logistics (Delivery, Installation, follow –up )

Reassure the Customer You made the right decision…”

III. CONSULTATIVE SELLING CYCLE

G. MAINTAIN

Post Evaluation “How are things doing?”

Commit to Serve “If there is anything you wish…?”

Express Appreciation “Thank you for trusting our product, we’ll be more than glad to serve you again next time?”

IV. HANDLING OBJECTIONS

A. Get the Real Objection“Could you tell me more…”

B. AcknowledgeRestate your understanding of the customer’s objection

C. Explain Determine the type of Objection

Misunderstanding – Clarify Drawback – Refocus (Counterbalancing Goals and Benefits) Don’t answer the wrong objection Avoid sounding confrontational Buy yourself time to think Respond promptly and concisely Don’t be sorry

IV. HANDLING OBJECTIONS

D. Confirm“Have I answered your question?”

Most Common Objections:

“You cost too much”“I didn’t have a good experience with your brand”“I don’t trust products made in China”