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

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

3. Springboard / Best vs. Worst
One person stated Walmart in Prattville, two workers over the age 40 approached him to ask, “are you finding everything ok.”
One person stated 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.

4. 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

5. 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.

6. 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

7. 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

8. 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.

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

10. 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

11. 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.

12. 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

13. 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.

14. Feature-Benefit Selling
Customers don’t buy products – they buy what products can do for them.
Example: A computer is purchased to increase productivity

15. 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.

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

17. 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.

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

19. 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?

20. This bright red car will attract the guys/girls
Obvious Benefit
This bright red car will attract the guys/girls

21. Unique or Exclusive Benefits
Our cars are so safe, we guarantee you won’t be crushed in a crash from the side.

22. 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.

23. Feature Benefit Chart

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

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

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

27. 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.

28. 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.

29. 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

30. 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

31. Routine Decision Making – person needs little information about a product
High degree of prior experience
Little perceived risk

32. 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

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

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

35. Section 12.2 Preparing for the Sale

36. 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

37. 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.

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

39. 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.

40. 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

41. 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.

42. 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

43. 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

44. 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

45. 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

46. 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.

47. Preparing for the Sale
Qualifying the lead.

48. 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

49. 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

50. 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

51. 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

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