Preparing for the Sale Chapter 12 covers how a salesperson prepares for a sale.

Springboard Write a short passage of the best and worst experiences you have had with salesperson.

Springboard / Best vs. Worst One person stated that @ Walmart in Prattville, two workers over the age 40 approached him to ask, “are you finding everything ok.” One person stated that @ Belk’s, two college aged workers did not notice his presence, even at the cash register. They were chatting over the Alabama vs. LSU football game.

Ch 12 Sec.1 – 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

SECTION 12.1 Selling Why It's Important Learning how to research products and customers is helpful when selling any type of product or idea. Learning how to find customers is also essential. In this chapter you will be exposed to key selling concepts that link products to customers.

Selling SECTION 12.1 customer benefit personal selling rational motive Key Terms customer benefit rational motive emotional motive extensive decision making limited decision making routine decision making personal selling business-to-business selling telemarketing feature-benefit selling product feature

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

Selling Question? How seeing an advertisement that is selling something is different from personal selling or going to a store and having a salesperson help you.

Selling In advertising there is only one-way communication; in selling there is two-way communication.

Two 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

Goals of Selling What are two goals of selling? To persuade customers to buy something regardless of their need for the item. To help customers make satisfying buying decisions Create an on-going, profitable relationship with a customer Make management’s sales quotas any way you can.

Goals of Selling The two goals of selling are To persuade customers to buy something regardless of their need for the item. To help customers make satisfying buying decisions

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. Example: A computer is purchased to increase productivity

Product Features May be basic, physical, or extended attributes 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.

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

Product Features Tangible product feature(s) for a Reebok running shoe might include the A. Duratech rubber sole. B. Reebok brand name. C. Removable molded sock liner. D. limited warranty.

Product Features A. Duratech rubber sole. C. Removable molded sock liner.

Customer Benefits Customer benefits are the advantages or personal satisfaction a customer will get from a good or service. To determine customer benefits, salespeople need to answer two questions about each product feature: 1. How does the feature help the product’s performance? 2. How does the performance information give the customer a personal reason to buy the product?

This bright red car will attract the guys/girls 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 feature-benefit chart combines a product or extended feature with its corresponding customer benefit to create selling points. One without the other is not sufficient. Feature-benefit charts help customers make buying decisions.

Feature Benefit Chart

Feature Benefit Chart Page 212, Fig. 12-1 In this feature-benefit chart, which features are product features and which ones are extended features?

Feature Benefit Chart Sharp Electronics’ reputation as the manufacturer and the 90-day limited warranty are both extended features.

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

Customer Buying Motives What motivates the customer to buy? 2 Categories: Rational Motive – a conscious, logical reason for a purchase Emotional Motive – is a feeling experienced by a customer through association with a product, such as social approval, recognition, power, or prestige.

Customer Decision Making There are three distinct types of decision making: extensive limited routine Decisions are based on a person’s previous buying experience and the importance and perceived risk of the purchase. There are three distinct types of decision making: extensive limited routine Decisions are based on a person’s previous buying experience and the importance and perceived risk of the purchase.

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

Graphic Organizer 12.1 Types of Customer Decision-Making Processes Expensive or Highly Valued Item No Experience with Item Information Needed Some Experience with Item High Product Satisfaction Much Prior Experience with Item High Perceived Risk Moderate Perceived Risk Low Perceived Risk Extensive Decision Making Limited Decision Making Routine Decision Making

Knowing Your Product & Your Customer Question? Why is it so important for a salesperson to help customers make satisfying buying decisions?

Knowing Your Product & Your Customer Repeat Business is the primary reasons!

Section 12.2 Preparing for the Sale

Preparing for the Sale SECTION 12.2 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

Preparing for the Sale SECTION 12.2 Why It's Important As a salesperson, you will need to prepare for the sale by learning about the industry and the products you will be selling. In specific sales situations, you may also need to find customers. The tools and techniques for accomplishing these tasks are covered in this section.

Preparing for the Sale SECTION 12.2 preapproach prospect referrals Key Terms preapproach prospect referrals endless chain method cold canvassing

Preparing for the Sale SECTION 12.2 The Preapproach The preapproach is getting ready for the face-to-face encounter in a selling situation. Salespeople do the following to prepare for the sale: Study their products. Keep abreast of industry trends. Research potential customers. Develop familiarity with their company's policies and procedures.

Preparing for the Sale SECTION 12.2 Product Information Product knowledge is essential for success in selling. T The following are some of the ways salespeople find product information: Direct experience—using the product Written publications—manuals, warranties, catalogs Other people—previous users, supervisors, manufacturer's representatives Formal training

Preparing for the Sale SECTION 12.2 Industry Trends Sales representatives read periodicals related to their trade to gain insight into the industry. All industries have trade publications related to their industry.

Preparing for the Sale SECTION 12.2 Sources and Methods of Prospecting A prospect, or a lead, is a potential customer. There are seven main methods for developing prospects: newspapers commercial lists customer referrals cold canvassing employer leads telephone directories trade and professional directories Slide 1 of 4

Preparing for the Sale SECTION 12.2 Sources and Methods of Prospecting Employer Leads Most businesses try to generate prospects but also rely on salespeople to find new customers. Telephone Directories The White Pages is a list of names and phone numbers of potential customers. The Yellow Pages can be useful for B2B prospecting. Slide 2 of 4

Preparing for the Sale SECTION 12.2 Sources and Methods of Prospecting Trade and Professional Directories These can help B2B salespeople locate customers by industry. Newspapers Birth announcements provide leads for insurance salesmen. Notices of mergers and new businesses provide leads for B2B salespeople. Commercial Lists Some companies specialize in providing lists of potential customers categorized by education, income, etc. Slide 3 of 4

Preparing for the Sale SECTION 12.2 Sources and Methods of Prospecting Customer Referrals Satisfied customers refer their friends and relatives. This is called the endless chain method. Cold Canvassing Potential customers are selected at random, such as by going door-to-door or through the phone book. Slide 4 of 4

Preparing for the Sale When a salesperson researches a prospect to determine if he or she needs the product the salesperson is selling, has the financial resources to pay, and is the person who has the authority to buy, we say the salesperson is Prospecting. Using the endless chain method. Cold canvassing. Qualifying the lead.

Preparing for the Sale Qualifying the lead.

Preparing for the Sale SECTION 12.2 Preparing for the Sale in Business-to-Business Selling If the sales call is with an existing customer, the salesperson analyzes past sales records and reviews notes about the customer's personality, family, and interests. Slide 1 of 2

Preparing for the Sale SECTION 12.2 Preparing for the Sale in Business-to-Business Selling If the sales call is with a new customer, the salesperson must research answers to the following questions, usually through a phone call to the customer: Does the prospect need this product or service? Does the prospect have the financial resources to pay? Does the prospect have the authority to buy? Slide 2 of 2

Preparing for the Sale SECTION 12.2 Preparing for the Sale in Retail Selling Since the customer comes to you, retail preparation includes: Straightening, rearranging, and replenishing the stock. Adjusting price tickets before and after special sales. Learning where stock is located and how much is available. Slide 1 of 2

Preparing for the Sale SECTION 12.2 Preparing for the Sale in Retail Selling Taking inventory. Arranging displays. Vacuuming the floor, dusting the shelves, and keeping the selling area neat and clean. These activities keep you familiar with the merchandise and makes it easier to find things for customers. Slide 2 of 2

Reference(s) Glencoe Marketing Essentials, 3rd Edition by Glencoe McGraw-Hill