Selling: 2.01 ACQUIRING A FOUNDATIONAL KNOWLEDGE OF SELLING TO UNDERSTAND ITS NATURE AND SCOPE

Warm-up 1. What does a salesperson need to do to be successful in selling? a) Always attempt to sell related merchandise b) Ask management to limit the number of brands c) Describe the disadvantages of competing brands d) Learn the features unique to the brands s/he sells

Quiz over 2.01 Part A & Part B Next Class

2.01 Part A: NOTES ON YOUR OWN These notes are on melissa1shaffer.weebly.com  Define the term selling.  Identify individuals, groups, or agencies that sell.  Explain reasons that customers buy goods and services.  Identify types of items that are sold.  Explain where selling occurs.  Describe how products are sold.  Describe the role of selling in a market economy.  Explain personal characteristics of salespeople that are essential to selling.

Objectives Will do letters d-g later

Overall Objective #1 (Letters a – g) How does customer service facilitate sales relationships?

Customer Service  Servicing the Sale  Important aspect of sales  Customer Service in Selling  A process, rather than a function  Process is the attitude your company has towards customers  Function is a customer service department that responds to customer complaints  A relationship, rather than a department  An attitude, a set of skills, a style of work

Customer Service  What is customer service?  Encompasses all activities and benefits to its customers to create goodwill & customer satisfaction  Should result in enhancing & facilitating the customer's use of the good or service

Customer Service & Competition  Customer Service is where competition begins amongst businesses  Product quality & price can usually be matched  Customer Service is what companies use to separate themselves  Perks offered  Online bill pay  Chat assistance

Customer Service: Shifting Expectations  Customer service means different things to different people  Customers have expectations that are based on several things (see table below) ExpectationExpectation Defined Past Experience Will compare deals they experienced before at your location or competitors Word of Mouth Customers come because of what they hear. If a deal was offered to someone & they know it exists they will expect similar opportunities Advertising In ads that your company runs; will be expected to be honored. Personal Needs Customizing the sales process to meet your customers needs.

Benefits of Customer Service  Providing customer service provides benefits in two ways  Building partnerships with current customers  Loyal customers is what you seek  Retaining customers is much more profitable than trying to acquire new ones  Loyal customers will provide good word of mouth (referrals)  Rewards programs are used to build customer loyalty  Reach people your sales force cannot  Generate new customers  New business & new accounts increase sales  People trust companies that have reputable customer service

From your notes you should be able to explain 1. What does customer service in selling mean? 2. How does customer service affect competition among sales organizations? 3. Describe the factors that affect customers’ service expectations. 4. Describe the two main benefits of providing quality customer service. Customer Service Video:

2.03: Selling Policies

SELLING ACTIVITY POLICIES  Selling policies are guidelines for selling.  How will products be sold?  How are sales tracked?  Receipt, online, customer information  What is the customer given at the completion of the transaction?  Receipt ( or hard copy or both), warranty, product replacement plan, business card, survey, etc..  Are there any government rules or regulations that must be followed?  Taxes, age requirements for purchase, pricing policies

TERMS OF SALE POLICIES  Terms-of-sale policies: What conditions apply to each type of sale?  Think airline tickets, e-Bay, close-outs, etc…  Age, condition of customer (health), etc..  Selling alcohol to a customer that is obviously drunk could result in legal action  Conditions for returns  What will be allowed?  What if the dress has been worn?  Deadlines for returning products  Used or new car purchases, haircuts  Method of refund  Cash refund vs. store credit

Return Policy  Kohls:  Target:

SERVICE POLICIES  Service policies are guidelines for servicing customers.  What is included in the sale of the product?  Warranties (implied or explicit)  Delivery.  Training.

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WHY ARE SELLING POLICIES IMPORTANT?  Selling policies standardize sales.  Ensures that the company and the customers understand how products are sold.  Protects the company, legally.

WHY ARE SELLING POLICIES NEEDED?  Proves that all customers are treated the same way  Increases efficiency of the sales people.

EXTERNAL factors that affect selling policies  City, county, state and/or Federal regulations.  Competitors’ actions.  Changes in customer expectations.  Expectations: Advertising, personal needs, word of mouth, experiences  Changes in costs of producing the products.

INTERNAL factors that affect selling policies  Things that happen inside the company  Sales quotas.  New management.  Changes in goals.

REGULATORY factors that affect selling policies  The distribution channel might require specific policies in exchange for using that channel  Online companies require online communication  E-Bay: Scam sales  Groupon: customer complaints  Implicit warranties.  A product will do what it is intended to  Example: A toaster will toast bread

PROBLEMS with selling policies  Policies cover specific circumstances, so some situations will not fit the current policies.  Misinterpretation by a salesperson.  Some customers will ask for exceptions to policies in exchange for increased business or because of a history with your company.

Assignment  Create a :45 – 2:00 minute employee sales training video  Option #1: Reinforce your companies customer service approach  Option #2: Inform your employees on selling policies within your company  Must save as you & your partners names under  All content must be school appropriate