5.01 Explain selling in the retail environment. UNIT E SELLING FASHION 5.01 Explain selling in the retail environment.

Selling as a marketing function Personal selling: A function of marketing that involves personalized, two-way communication between the salesperson and the customer in the process of exchanging merchandise for money or credit.

Customer-oriented selling: An approach to selling that involves meeting and exceeding customer expectations while making customers feel important, identifying their needs, and finding solutions to best fulfill those needs. Stores using customer-oriented selling are applying the marketing concept instead of using sales-oriented, high pressure selling. Stores distinguish themselves from each other by the quality and quantity of personal services they offer the customer.

Roles of Salespeople Sales clerk: An “Order-taker” who may stand behind the counter to ring up a sale and who is usually employed by stores that sell lower-priced merchandise.

Roles of Salespeople (cont.) Sales associate: A skillful retail employee who uses creative selling skills to influence customers’ purchasing decisions and who usually works in high-service retail department and specialty stores.

Roles of Salespeople (cont.) Personal shopper: An employee who assists customers with a level of individualized attention and service beyond what a retail sales associate would offer. May help customers pull together an entire season’s wardrobe Usually provides service by appointment

The Importance of Salespeople Successful salespeople develop professional relationships with customers. Salespeople are the only store contact for most customers. Successful salespeople create higher sales, thus more profit, while helping customers solve problems. Successful salespeople create happy customers who become repeat customers and whose word-of-mouth endorsements gain the business of new customers.

Methods Used To Motivate Salespeople Organizational climate: The feeling that employees have about their opportunities, value, and rewards for good performance within the business. High esteem results in low employee turnover which increases company profits because less time and money are spent on training new employees. Low esteem results in high employee turnover and reduces company profits due to the high cost of training new employees.

Methods Used To Motivate Salespeople (cont.) Compensation: Payment and benefits for work accomplished. Wage: Payment based on a set rate per hour for the number of hours worked. Salary: Payment based on a fixed dollar amount for a specified period. Commission: Payment based on a percentage of the dollar amount of sales made by a salesperson. Hourly wage or salary plus a commission

Methods Used To Motivate Salespeople (cont.) Sales quota: The projected volume of sales (units or dollars) assigned to a department or person for a time period. Compensation is often tied to meeting the sales quota. Incentives: Contests, prizes, rewards, honors, merchandise and cash bonus awards, days off, trips, and profit-sharing opportunities used to motivate salespeople.

Non-Selling Duties and Responsibilities of the Salesperson Basic stockkeeping duties/tasks Stockkeeping Receiving merchandise Preparing merchandise for sale Maintaining product information

Stockkeeping: Receiving, preparing, and protecting merchandise against damage or theft, and participating in maintaining store or department inventory.

Receiving merchandise: The actual exchange of goods between the vendor’s transporting agent and the retailer.

Receiving Merchandise Inspect for damage. Verify that merchandise received is as ordered. Record goods on the receiving record. Process necessary returns to vendors. Returns to Vendors: Goods that are shipped back to a supplier by a store. May be necessary because of mistakes in filling the order, unacceptable substitutions, late delivery, or defective merchandise

Preparing merchandise for sale Sort and arrange merchandise by color, size, and/or classification. Ticket and price merchandise if necessary. Transfer merchandise between store branches. Set up and clean merchandise fixtures.

Preparing merchandise for sale (cont.) Use appropriate hangers or shelf arrangements for displays. Put out goods to maintain stock levels. Straighten merchandise during slow traffic periods.

Maintaining product information Product knowledge allows the salesperson to tailor the sales message to meet the specific needs of each customer. Types of information needed Product use Product care

Sources Of Product Information Personal use/experience Promotional circulars and flyers Consumer publications Trade publications Sales representatives and store buyers Manufacturer’s literature Labels Hangtags Packaging

Labels: Small pieces of ribbon or cloth that are permanently attached to the insides of garments to provide product information. May be any color or style as long as they do not ravel May be printed on front and back if the label is attached so that both sides can be seen May include information such as brand name, special finishes, size, etc.

Labels… (cont.) Must include information required by law Generic name of all fibers used in garment and percentage of each fiber used Identification of the producer or distributor Identification of the item’s country of origin Care requirements

Hangtags: Removable cardboard or heavy paper “signs” that are attached to the outsides of garments with strings, plastic bands, pins, staples, or adhesives.

Hangtags… (cont.) Hang from buttons, buttonholes, zippers, belt loops, etc. Information may include Brand name/trademark Size Suggested retail price Style number Special features such as fabric finishes, reversibility, etc. Symbols and logos to identify designers, manufacturers, or sellers A certification or seal of approval Guarantees

Packaging: The covering, wrapper, or container in which some items are placed. If information that is required by law on labels cannot be seen through packaging, it must be repeated on the package.