Marketing October 13, 2015 The Personal Selling Process

Steps of a Sale 1. Pre-approach (prepare) 2. Approach (greet) 3. Wants/needs (determine) 4. Features/Benefits (present) 5. Objections (overcome) 6. Close (get a commitment) 7. Suggestion Sell (Would you like fries with that shake?)

Step 1 – Pre-approach Activities you perform prior to approaching a customer Includes: Prospect list Product research Preparing a sales presentation Practicing your presentation Preparing materials need for the sales presentation

Step 2 – Approach Opening the Sale Greet the customer Establish a relationship with the customer Why? Makes customer more comfortable Encourages customer to listen Creates a good impression of you and the business Leads to the sales presentation Enables you to begin determining customer’s needs

Approach Techniques Greeting Approach Welcome customer “Good morning, sir. How are you today?” “Nice to see you Mrs. Hampton, how was your vacation? Service Approach Offer assistance “May I help you?” “Welcome to McDonald’s. May I take your order?”

Approach Techniques Merchandise Approach Focus on the product Use when customer looks at specific item Most effective technique because it leads directly into the sales presentation “Those skis you’re looking at are one of our most popular models.” “I see you’re looking at the Whirlpool refrigerator. Can I tell you more about it?” “That Sony television has a great picture, doesn’t it?”

Effective Approaches Respectful and Courteous – don’t stereotype or judge customer Friendly & Sincere Use the word “you” to convey friendliness but don’t be overly friendly Enthusiastic Tone of voice, facial expressions, body language Properly Timed Be prompt, but don’t pounce

Approach Practice Congratulations! You have been hired as a cell phone sales person! Prepare to approach a customer using each of the three approach techniques discussed.

Step 3 – Determine Needs Learn what the customer is looking for in order to decide what products to show and which product features to present first Observe the customer to see where they go in the store and in what they are interested Pay attention to non-verbal communication for clues about the customer’s interest in a product Ask the customer questions to determine needs Listen carefully to the customer to their responses - many customers will tell you exactly what they need or want

Questioning the Customer Why ask questions? Establish a relationship with the customer Encourage the customer to talk Discover their needs/wants Types of Questions Closed Ended – seek a yes or no response Do you like small cars? Open Ended – seek a more detailed response What type of car are you looking for?

Guidelines for Questioning the Customer Have a purpose for asking each question Ask it simply – don’t use technical jargon Space questions out & allow them to respond Ask clarifying questions to check understanding Encourage customers to ask questions Don’t ask questions that would embarrass the customer

Questions to Determine Needs/Wants As part of your job as a phone salesperson, think about some questions you can ask to determine the customer’s needs and wants. Personal Response #1 On a sheet of notebook paper, record at least three questions you would ask.

Step 4 – Features/Benefits F/B Selling is matching the characteristics of a product with customer’s needs and wants People don’t buy products, they buy what the product can do for them. Example: A computer is purchased to increase productivity.

Feature-Benefit Selling Product Features are the basic, physical, or extended attributes of the product:  Basic features are a product’s intended use.  Physical qualities differentiate it from competing brands and models.  Additional features add value and justify price differences between models.

Feature-Benefit Selling Customer Benefits: Advantages or personal satisfaction a customer gets from the good or service. Think like the customer: 1. How does the feature help performance? 2. How does performance give the customer a PERSONAL reason to buy? (Benefit)

Feature-Benefit Chart A feature-benefit chart combines a products features with the corresponding customer benefit to create selling points Personal Response #2 Prepare a feature-benefit chart to outline the features of the phone you are trying to sell combined with the benefits it offers the customer.

Customer Buying Motives Rational: logical reasons for a purchase Dependability, time or money savings, health or safety, service or quality Emotional: feeling experienced through association Social approval, recognition, power, love, prestige BOTH are common Goal is to match motive with the features and benefits

Customer Decision Making How a customer decides to buy is dependent upon different things: How often the product is purchased The amount of info needed to make a wise decision The perceived risk/importance The time available to make the decision

Customer Decision Making Extensive Decision Making is used when there has been little or no previous experience. High risk, very expensive, high value Limited Decision Making is used when a person buys goods/services that he or she has purchased before (but not regularly). Moderate risk, some info is needed before deciding Routine Decision Making is used when a person needs little information about a product Low risk, high experience, frequent purchases

Additional Presentation Considerations Demonstration - when appropriate Displays Samples Scale models

Feature-Benefit Selling Personal Response #3 Describe the level of decision making involved in buying a cell phone. Explain.

Step 5 – Overcoming Objections Objections are concerns, hesitations, doubts, or other honest reasons for not making a purchase. Objections can be helpful during the sales process, they give you an opportunity to further determine your customer’s needs.

Overcoming Objections Plan for objections by preparing a list of common objections and possible responses Common objections include: Need: no immediate need for item Product: construction, ease of use, quality, size, color or style Past Experience: complaint about previous experience Price: too expensive Time: customer wants to wait to buy

Overcoming Objections Listen: be attentive, maintain eye contact, don’t interrupt Acknowledge: demonstrate that you heard and understand the objection (validate the customer’s opinion). Restate: paraphrase the customer’s objection Overcome: answer the objection tactfully

Overcoming Objections - Methods Substitution: recommending a different product If you don’t carry the specific brand or model Boomerang: bring the objection back to the customer This jacket is so lightweight, it couldn’t possibly keep me warm…The jacket is so light because of a high-tech material that works without bulk. Don’t be too “know it all” and offend the customer Question: Ask questions to learn about the objection

Overcoming Objections - Methods Superior Point: acknowledge and offset objection with features and benefits Denial: when objection is based on misinformation Demonstration: “seeing is believing” Third Party: using testimonial or previous experience

Overcoming Objections Personal Response #4 On a sheet of notebook paper, use a t-chart to record at least three objections and the corresponding responses that could be encountered while selling cell phones. Be prepared to role play with a partner!

Step 6 – Close the Sale At some point in the sales process, the customer will be ready to make the decision to buy or not. Watch for buying signals – facial expressions, body language, comments Help the customer make a decision – narrow the selection Create an ownership mentality – “you/your”

Closing the Sale - Methods Trial Close: The salesperson’s initial effort to close the sale Test readiness of the customer to buy Ask leading questions calling for a decision Why it works: If you do not close, you learn from the attempt and hear new objections from customer Example: “So, how do you like the item?”

Closing the Sale - Methods “Which” Close: Encourage customer to make a decision between two items. Remove extra products and review the benefits of the two remaining products. Why it works: Makes it easy for the customer because only one simple decision to make. Example: Which one do you prefer?

Closing the Sale - Methods “Standing Room Only” Close: Used when a product is in short supply or when the price will be going up in the near future. Use only when the situation honestly calls for it. Why it works: People want what others don’t have, what is hard to get, or what they shouldn’t have. Let them know this is the last one left, the first one in town, or the best deal around. Example: “This is a very popular item and we only have a few left, I don’t know how long they will last”

Closing the Sale - Methods Direct Close: Ask for the sale! Be confident and matter-of- fact, maintain control of the sale. Use when buying signals a very strong. Why it works: The customer is ready to buy and wants the presentation to end. Examples: “How would you like to pay?” “Are you ready to talk about the details of your order?”

Closing the Sale - Methods Service Close: Explain services that overcome obstacles or problems with the purchase. Why it works: The customer wants the product, but needs something extra to convince them to buy. Examples: Free gift wrapping, return policy, warranty, guarantee, financing, layaway, credit

If you don’t close... Thank the customer Invite them to shop again in your store Solicit feedback from the customer Be positive Follow-up

Step 7 – Suggestion Selling Selling additional goods or services to the customer - Don’t just ask “will that be all?” 1. Suggestion sell after the close but before the payment. 2. Make the recommendation and give a reason for the suggestion. 3. Show the item you are suggesting. 4. Offer related merchandise (cross-sell) - most effective 5. Recommend larger quantities (up-sell) - Inexpensive items, time savings, money savings, convenience 6. Point out special sales opportunities - membership programs, credit card discounts

Suggestion Selling Personal Response #5 Prepare two suggestion selling ideas that you can present to a customer buying a cell phone.