1. Preparing for the Sale
Ch. 12 ME

2. Section 12.1
What is Selling?

3. Selling
Personal Selling – is any form of direct contact between a sales person and a customer
Key Factor: two-way communication between the seller and the buyer
Retail Selling – is when customers come to the store
Business-to-Business Selling – may take the place in a manufacturer’s or wholesaler’s showroom or a customer's place
Telemarketing – process of selling over the phone

4. Consultative Selling
Consultative Selling – is providing solutions to customers’ problems by finding products that meet their needs

5. Feature-Benefit Selling
Feature-Benefit Selling - matching the characteristics of a product to a customer’s needs and wants
Product Features – basic, physical, or extended attributes of the product or purchase
Customer Benefits – are the advantages or personal satisfaction a customer will get from a good or service

6. Customer Buying Motives
Rationale Motive – is a conscious, logical reason for a purchase
Include product dependability time or monetary savings, health or safety considerations, service, and quality
Emotional Motive – is a feeling experienced by a customer through association with a product
Includes social approval, recognition, power, love or prestige

7. Customer Decision Making
Extensive Decision Making – is used when there has been little or no previous experience with an item
Limited Decision Making – is used when a person buys goods and services that he or she has purchased before but not regularly
Routine Decision Making – is used when a person needs little information about a product

8. Section 12.2
Getting Ready to Sell

9. The Pre-Approach
Pre-Approach – is the preparation for the face-to-face encounter with potential customers

10. Product Information & Industry Trends
Four Main Sources for Product Information:
Direct experience
Written publications
Other people
Formal training
Sales representatives read periodicals related to their trade to gain insight into the industry.

11. Prospecting Prospect (lead) - is a potential customer
Examples of Prospecting
Employer Leads
Directories
Newspapers
Commercial Lists
Customer Referrals
Referrals – the names of other people who might buy the product
Endless Chain Method – when salespeople ask previous customers for names of potential customers
Cold Canvassing (Blind Prospecting) – potential customers are selected at random

12. Preparing for the Sale
Pre-approach activities vary depending on whether the sales call is with a previous customer or a new prospect
Retail sales associates are often responsible for merchandising, stock keeping, and housekeeping

13. Company Policies & Training
A four-step process: explanation, demonstration, trial and critique
Compensation and Sales Quota
Sales people are compensated by:
Straight commission – paid only when sold something
Straight salary – get paid a set amount, no matter how much they sell
Salary plus commission – set salary and lower commission rate
Sales Quota – are dollar or unit sales goals set for the sales staff to achieve in a specified period of time
Legal and Ethical Issues
Sales order is a legal binding contract between buyer and seller