SELLING & SALES UNIT

Selling Selling is the exchange of goods and services from producers to consumers for a price. Businesses and sponsors might purchase incentives, media time, naming rights, pre-/post-game entertainment, signage, tickets (group or season), and products designed for the corporation's target market.

Selling Continued . . . Sales of sponsored products should increase as a result of advertisement at an event. Sponsors pay a rights fee for media time to a sports or entertainment organization for the opportunity to provide broadcasts.

Data-based marketing Data-based marketing involves the collection or information about past, current, and potential consumers. In marketing, a database is needed to generate leads or sources of new customers.

Data-based marketing continued . . One common way to generate leads is through telemarketing. Telemarketing is communicating with customers via the telephone. Ex: Wallet discount cards

Personal Selling Personal selling is a two-way communication between a representative of the company and the customer. Ex: A sales associate at the Detroit Pistons team store, The Palace Locker Room, selling an authentic team jersey to a fan.

Business to Business Selling B2B selling takes place in a manufacturer’s or wholesaler’s showroom (inside sales) or a customer’s place of business (outside sales). Ex: General Motors buying the raw materials from different suppliers, buying parts from suppliers.

Direct Mail Direct mail is personal and received in the mailbox. Used to initiate the sales process. Ex: Colleges mailing informational packets to potential students.

Internet Selling Internet Selling (www) is executed using the Internet. Ex: A Monsters, Inc. fan purchasing the DVD, or a customer purchasing stuffed toys from www.disney.com

Selling and Full-Menu Marketing Selling helps customers make informed buying decisions, which results in customer satisfaction and repeat business. Full-menu marketing is having products or services that meet virtually any customer's needs and/or wants.

Feature-Benefit Selling Involves matching the characteristics of a products to a customer’s needs and wants. EX: A company leases a suite at the Emmy Awards to host their preferred clientele. Product features are the basic, physical, and extended characteristics of an item. Ex: Purchasing front row seats at the Emmy Awards

Feature-Benefit Selling Customer benefits are the advantages or personal satisfaction a customer will get from a good or service. Ex: The benefit of being on the front row at the Emmy Awards results in better viewing of the awards and presentations. Air pocket in shoes. Gives comfort to wearer.

Customer Buying Motives Buying motives are the motives for purchasing a product. Rational motives Emotional motives Patronage motives

Rational Motives Based on conscious, logical thinking and decision making. Product dependability, time or monetary savings, quality, and price are rational motives for buying or purchasing a products or service. Ex: A mother purchases lawn sets for a Britney Spears concert instead of the more expensive stadium seats.

Emotional Motives Based on feelings Social approval, recognition, power, love, and prestige are emotional motives for buying or purchasing a product Ex: A parent camping out overnight to get front row seats to the JayZ concert for her daughter’s 13th birthday.

Patronage Motives- Based on loyalty Low prices, high quality, friendly staff, great customer service, merchandise assortment, and/or convenience of location are patronage motives for buying or purchasing a product. Ex: Alyssa only purchases her son’s cross country shoes at the Run for Your Life athletic shoe store because of their excellent customer services and close proximity to her home.

Please name three companies for each Patronage Emotional Rational

Decision Making Process Customers go through a decision-making process in order to determine what products they will buy.

Extensive Decision-Making Occurs when there is a high level or perceived risk, a product or service is very expensive or has a high value to the customer. A customer will conduct research and evaluate product alternatives before making a decision Ex: The Detroit Lions equipment manager decides whether equipment should be purchased from All-star Athletics or Winners Incorporated.

Limited Decision Making Occurs when a customer buys products that he or she has purchased before but not regularly. Ex: The Michigan Little League Team decides whether to advertise in the local paper this season or continue with the same billboard as they had last year.

Routine Decision Making Occurs when little info. is needed about the product being purchased Ex: Mountainview High School baseball coach always purchases the teams chewing gum from the local wholesale store.

Activities that take Place During the Preapproach Product information Reviewing current trade periodicals Sources and methods of prospecting

Product Information Knowing how to use and care for a product is essential when educating consumers and demonstrating a product. EX: Demonstrating to a customer the proper way to oil a baseball glove. Four sources of product information are direct experience, written publications, other people, and formal training. Ex: Debbi is a sales associate for Foot Locker. She attends an Adidas clinic on the proper way to fit children for shoes.

Reviewing Current Trade Periodicals It is crucial to stay abreast of current trends and industry information. The sales manager for the Detroit Tigers subscribes to Street & Smith’s Sports Business Journal

Sources and Methods of Prospecting A prospect is a potential customer. Ex. Employer leads, telephone directories, trade and professional directories, commercial lists, customer referrals and cold canvassing. Ex. The Detroit Shock purchases the mailing list of the top 50 Fortune 500 companies

Recognize the steps of the selling process.

1. Approach The first encounter with a customer The initial approach is critical. It should be positive, create a favorable impression, and create interest in the product.

Service Approach Considered the least effective approach method. Should only be used when customer is obviously in a hurry or when selling a service. “May I help you?”

Greeting Approach Used to acknowledge customer’s presence and establish rapport May include introduction of oneself Can be combined with service or merchandise approach Ex. “Good morning! Is it still raining outside?”

Merchandise Approach Includes comments or questions about the merchandise the customer is looking at or handling Considered the most effective approach Ex. “The Detroit Red Wings jersey will not shrink when washed.”

Sales Approaches in SEM include: Telemarketing Direct mail Personal selling

2. Determine the Needs of Customers Observe Listen Question

Observe The nonverbal communication of the customers and how they express themselves through body language

Listen to Customers Maintain good eye-contact Provide verbal and non-verbal feedback Give customers undivided attention Listen with empathy and an open mind Do not interrupt

Question Customers Well-chosen questions can help uncover needs and buying motives while putting customers at ease Begin with general questions and then progress into specific questions Ask open-ended questions and then explain the benefits Ex. “How often do you bring your family to AMC theater each year?”

3. Product Presentations & Demonstration Actively involve the customer Show the product to the customer and tell him about its benefits (Called show and tell) Never show more than three items at a time When in doubt, show medium-priced items first

Make the Presentation Come Alive Involve the customer by putting the product in the customers’ hand Demonstrate how the product works Ex. When a customer is purchasing season tickets, offer to show them where they will be sitting

4. Overcome Objections An objection is a reason, concern, or hesitation a customer has for not making a purchase Ex. “I really want both the sweatshirt and short sleeve shirt, but I can’t afford both.”

Common Objections May be spoken or unspoken May be logical or psychological May relate to the need, product, price, salesperson, source, store, or time May occur at any point in the sale Should be welcomed

To Handle Objections: Listen Acknowledge Restate Answer the objection

Methods for Handling Objections Boomerang Question Superior Point Denial Demonstration Third Party

Boomerang The objection comes back to the customer as a selling point Ex. If a customer states, “I can’t believe this concert ticket is so expensive.” The salesperson’s response might be,”I understand, but the view from those seats will be excellent.”

Question The customer is questioned in an attempt to learn more about the objections raised Ex. “Why don’t you want to buy running shoes, especially if you are starting to get more involved in 5k events?”

Superior Point The salesperson acknowledges the objection as valid, but offsets them with other features and benefits Ex. If a customer states, “I went to a Plymouth Whalers game last week and the tickets were $10 cheaper than the Red Wings tickets.” The salesperson’s response might be, “Yes, that would be correct, but last year the Detroit Red Wings were in the Stanley Cup Finals and the Whalers are not part of the National Hockey League.”

Denial Provide proof and accurate information when answering objections Best used when the customer has wrong information or when the objection is in the form of a question Ex. If a customer states, “I really don’t want to pay a $150 joining fee in advance.” The salesperson’s response might be, “You don’t have to pay in advance, we can spread the joining fee over a six month period if you like.”

Demonstration Answering objection by showing one or more features “Seeing is believing”

Third Party Uses a previous customer or another neutral person who can give a testimonial about the product Can be verbal or non-verbal (letter) Ex. “The Detroit Red Wings have always purchased their team equipment from us. As a matter of fact, let me show you a letter we just received from their equipment manager.”

5. Closing the Sale Obtaining a positive agreement from the customer to buy Ex. “Would you like this gift wrapped?”

Customer Readiness in Closing Buying signals Facial expressions, body language, comments Physical actions – nodding, reaching for wallet Comments – “I really like it; it fits well.” Questions – “Do you have another one for my son?” Trial close Used to get an indication of what needs to be done to close the sale Ex. “Would you like to wear the shoes home?”

General Rules for Closing the Sale If the customer is ready to make a buying decision, stop talking about the product When a customer is having difficulty making a buying decision, stop showing additional merchandise Summarize the major features and benefits of a product Do not rush a customer into making a buying decision

General Rules for Closing the Sale continued . . . Use words that indicate ownership like you and your Use major objections that have been resolved to close the sale Use effective product presentations to close the sale Look for minor agreements from the customer on selling points that lead up to the close

Specialized Closing Methods Which close Standing-room-only close Direct close Service close

Which Close Remove unwanted items to bring the selection down to two Review the benefits of each Ask the customer, “Which one do you prefer?” Which one?

Standing-Room-Only Close Used when a product is in short supply or when the price will be increasing in the near future Ex. “If you purchase the signage at the RBC Center today, you will save your club over $2,000. Next month, there will be a 10% price increase.”

Direct Close Salesperson asks for the sale Ex. “May I initiate the paperwork for your sponsorship of our charity event?”

Service Close Explains services that overcome obstacles or problems Ex. “Now, let’s talk about when you would like the system installed.”

6. Suggestion Selling Beneficial to the customer and the salesperson Customer receives the benefit of goods or services that will compliment the initial purchase Ex. “How about an ice-cold Diet Vanilla Coke to go with that hotdog?”

Suggestion Selling continued . . . Enhances the original purchase Not intended to force unnecessary items onto the customer Takes place after the customer commits to make the original purchase, but before the sale is entered into the register

Suggestion Selling continued . . . Three methods used: Offering related merchandise Recommending larger quantities Calling attention to special sales opportunities One for $3.50 Three for $10.00

7. Relationship Marketing Involves strategies businesses use to stay close to their customers Crucial to keeping customers as repeat customers Ex. Mailing or e-mailing a bi-monthly newsletter to any customer of the stadium store

Benefit Selling Informing customers of new benefits about a sports or entertainment product Ex. Rather than purchase a gym membership that will expire in six months, a customer purchases a booklet of “admission tickets” that do not expire until they are redeemed.”

After-Sale Activities Used to develop and nurture customer relationships and loyalty in developing an on-going dialog with customers in preparation for future sales Ex. Taking payment or taking the order, departure activities such as reassuring the customer, following-up on commitments made, and evaluating selling skills