Preparing for the Sale
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Transcript of Preparing for the Sale
Preparing for the Sale
Section 2
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
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
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
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.
Feature-Benefit Selling
Customers don’t buy products – they buy what products can do for them.
Product Features
May be basic, physical, or extended attributes
The most basic feature is the product’s intended use
Additional features add more value to the product
Obvious Feature
This car is a bright shade of red.
Customer Benefits
The advantages or personal satisfaction a customer will get from a good or service
Benefits become selling points How does the feature help the product’s
performance? How does the performance information
give the customer a personal reason to buy?
Obvious Benefit
This bright red car will attract the guys/girls
Unique or Exclusive Benefits
Our cars are so safe, we guarantee you won’t be crushed in a crash from the side.
Feature Benefit Chart
A list of a product’s features and associated benefits.
Feature Benefit Chart
Feature Benefit Chart
Choose an item and list at least five features and benefits.
Customer Buying Motives
What motivates the customer to buy?
Rational Motive – a conscious, logical reason for a purchase
Emotional Motive – feelings such as social approval, recognition, power, love, or prestige
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
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
Routine Decision Making – person needs little information about a product– High degree of prior experience– Little perceived risk
Getting Ready to Sell
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
What You’ll Learn
The Preapproach
There are some steps that a salesperson follows when preparing to assist customers. The pre-approach is getting ready for the face-to-face encounter in a selling situation. A good salesperson has knowledge of the following:
1. Product Information
Direct experienceWritten publicationsOther peopleFormal training
2. Industry Trends
Read related periodicals
Trade journalsStandard & Poor’s – a
publication that provides data on industry trends.
3. Prospecting
A prospect, or a lead, is a potential customer
Prospecting is especially important in business-to-business selling situations.
Sources and Methods of Prospecting
Employer Leads– Some firms employ entire telemarketing
teams to generate leads– Some rely entirely on their salespeople to
find new customers
Sources and Methods of Prospecting
Telephone directories
Trade and professional directories
Sources and Methods of Prospecting
Newspapers– Birth announcements– Reports of business mergers
Commercial Lists– Salespeople can buy lists of potential
customers– Email lists
Sources and Methods of Prospecting
Customer Referrals– The names of other people who might buy
a product.– Endless chain method – salespeople ask
previous customers for names of potential customers.
Sources and Methods of Prospecting
Cold Canvassing – blind prospecting– Going door-to-door– Selecting names from the phone book at
random
Preparing for the Sale in Business-to-Business Selling
The preapproach activities vary depending on whether the sales call is with a previous customer or a new prospect
Research to determine the customer’s needs
Set an appointment for a face-to-face meeting
Preparing for the Sale in Retail Selling
Straighten and arrange stock Adjust price tickets Learn about stock and it’s location Arrange displays Clean the floor, shelves, and selling
area
Company Policies and Training
Training– Four-step method – explanation, demonstration, trial,
critique Compensation and Sales Quotas
– Often compensated by commission (% of what is sold.)– Sales quotas are dollar or unit sales goals set for the
sales staff to achieve in a specified period of time. Legal and Ethical Issues
– No hard-sell tactics!– Must fully disclose the facts.
The Sales Process
The seven steps of a sale The importance and purposes of the
approach in the sales process How business-to-business sales
representatives conduct the initial approach The three initial approach methods used by
retail salespeople
What You’ll Learn
Steps of a Sale
Approaching the customerDetermining needsPresenting the productOvercoming objectionsClosing the saleSuggestion sellingRelationship building
Approaching the Customer
The first face-to-face contact with the customer.
Can make or break a sale Sets the mood or atmosphere Establishes a relationship
What your mother said is true . . .
You never get a second chance to make a first impression!
The Approach in Business-to-Business Selling
Set up an Set up an appointmentappointment
Introduce yourself Introduce yourself with a firm with a firm handshake and a handshake and a smile.smile.
Be more personal Be more personal with customers with customers you know.you know.
Use good opening Use good opening statements with statements with new customersnew customers..
The Approach in Retail Selling If customer is in a
hurry, approach quickly.
If customer is undecided, let them look.
Encourage customers to look around and to ask questions.
Service Approach MethodAsk if assistance is needed.“May I help you?”Problem – customer says, “I’m
just looking.”Instead, ask “How may I help
you?”
Methods for the initial approach:
Greeting Approach Method
The salesperson welcomes the customer
“Good morning.”
Establishes a positive atmosphere.
Merchandise Approach Method
Let the customer look around. When they show interest in a product, the salesperson makes a comment or asks a question.
The most effective approach because it gets the customer talking about the merchandise he/she may be interested in.
Determining Needs in Sales
Why determining needs is an essential step in the sales process.
Three methods used for determining needs.
What You’ll Learn
Why determining needs is important:
Customer needs are related to buying motives.
When customer needs are met, the salesperson experiences a feeling of success.
When to Determine Needs:As early in the sales
process as possible, usually right after the approach
How to Determine Needs
Observing – Nonverbal communication (body language such as facial expressions, hand motions, and eye movement.)
How to Determine Needs
Listening – Helps you pick up clues
How to Determine Needs
Questioning – Gets the customer talking– Begin with general questions about
intended use.– Then ask Who, What, How questions
Guidelines for Questioning
Do ask open-ended questions that encourage talking
Do ask clarifying questions to make sure you understand needs
Don’t ask too many questions in a row – customer may feel cross-examined
Don’t ask questions that might embarrass or put the customer on the defensive