6-16-1McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
Sales Knowledge: Customers, Products,
Technologies
Chapter6
Chapter
Chapter
6
6-3
6-4
The Tree of Business Life: Knowledge
Guided by The Golden The Golden RuleRule: Be an expert on everything
associated with your product(s)
Use wisdom when applying knowledge
Remember, customers rely on you to truthfully provide knowledge and wisdom
Realize that people do not care how much you know until they know how much you careI
T C
Ethi
cal Service
Builds
T r
u e
Relationships
TT T
T T T TT T T T
6-5
Sources of Sales Knowledge
Sales training Experience
6-6
Knowledge Builds Relationships
Knowledge increases a salesperson’s confidence
Knowledge increases a buyer’s confidence in salesperson
More knowledge leads to more sales and more relationships
6-7
Know Your Customers
Find out all you can
6-8
Know Your Company
General Company InformationCompany growth and accomplishmentPolicies and proceduresProduction facilitiesService facilities
6-9
Know Your Product
Product knowledge may include:Performance dataPhysical size and characteristicsHow the product operatesSpecific features, advantages, and benefits
of the productHow well the product is selling in the
marketplace
6-10
Know Your Resellers
Understand the channel of distribution Know as much about each channel
member as possibleLikes and dislikes of each channel
member’s customersProduct lines and the assortment each one
carriesWhen each member sees salespeopleDistribution, promotion, and pricing policiesWhat quantity of which product each
channel member has purchased in the past
6-11
Advertising Aids Salespeople Main ingredients of a firm’s promotional
effort Types of Advertising Differ
National advertisingRetail advertisingCooperative, or co-op, advertisingTrade advertising Industrial advertisingDirect-mail advertising Internet advertising
6-12
Why Spend Money on Advertising?
Companies advertise because they hope to: Increase overall sales and sales of a specific
productGive salespeople additional selling
information for sales presentationsDevelop leads for salespeople through mail-
ins and ad response Increase cooperation from channel
members through co-op advertising and promotional campaigns
Educate the customer about the company’s product
6-13
Why Spend Money on Advertising?, cont…
Inform prospects that a product is on the market and where to buy it
Reduce cognitive dissonance over the purchase
Create sales or pre-sell customers between sales calls
6-14
Sales Promotion Generates Sales
Consumer sales promotion Trade sales promotion Point-of-purchase (POP) displays Shelf positioning Shelf facings Premiums Sales promotion on the Internet
6-15
What’s It Worth? Pricing Your Product
Price refers to the value or worth of a product that attracts the buyer to exchange money or something of value for the product
6-16
Exhibit 6.4: Examples of Prices and Discounts Salespeople Discuss in Their Sales Presentations
6-17
Know Your Competition, Industry, and Economy
Understand competitors’ products, policies, and practices
6-18
Personal Computers and Selling
The top 10 PC applications include: Customer/prospect profile Lead tracking Call reports Sales forecasts Sales data analysis Sales presentation Time/territory management Order entry Travel and expense reports Checking inventory/shipping status
6-19
Technology Etiquette
Netiquette – etiquette on the internetCell PhonesTexting Instant MessagingEmailSpeakerphones and Conference Calls
6-20
Price Sheets
PricesList Price—standard priceNet Price—w/discountsZone PriceFOB Shipping PriceFOB Destination
6-21
Discounts
DiscountsNoncumulative: one-time reductionCumulative: discount over a period of
timeCash discounts: pay bills w/in stated
period i.e. 3/10 net 30 on $10,000
6-22
Discounts Cont.
DiscountsTrade discounts: reduce prices to
channel members (% off the list retail price)
Consumer: one-time price reductions manufacturer passes on to retailer or consumer (cents off labels)
6-23
Markups
Markup: dollar amount added to the product to determine the selling price
Gross Profit: money available to cover costs of marketing
Net Profit: money remaining after the costs of marketing and operations
6-24
Markups Cont.
• Percentage Markup on Selling Price
Amount added to cost = $2.00 = 40%
Selling Price $5.00
• Percentage Markup on Cost =Amount added to cost = $2.00 = 66.6%Cost = $3.00
6-25
ROI--Return on Investment
$70,440 = total gross sales -55,260 = total investment$15,180 = total gross profit
27.5% ROI ($15,180/$55,260)
6-26
Value Analysis
Determines the best product for the money
High-priced product may be better value than a lower-priced productHow does your product’s
features/benefits/advantages compare?Can your product do the same job as the
competitor’s?
6-27
Value Analysis
Three types:Product Cost to True Value
Never discuss costs until you demonstrate the value of a product –Exhibit G
Units Costs Break down price Computer sells for 1K, processes 50K in
transactions Unit cost is 2 cents per transaction
ROI = Gross sales - Total Investment = Gross Profit
Gross Profit /Total Investment = ROI
6-28
Case 6A.1—Claire Cosmetics
Cost for a dozen of each productCost for a floor stand and counter displayProfit on a floor stand and counter displayWhat are discounts—dozen of each
product/floor stand/counter displayDetermine markups for individual unitDetermine ROI on a floor stand and counter
display
6-29
Product Sales Pitch
Selling to buyer at TargetPitch the product 5 minute time-frame (approx)Be aware of verbal and nonverbal cues and
be prepared to use a different tactic/strategy to get my attention
6-30
Product Sales Pitch Cont.Target is in need of new product for the
Health & Beauty Dept.You are the salesperson trying to get me to
purchase product to put on my shelvesKnow the product
features/benefits/advantageYou can provide me
literature/testimony/product demoKnow the product pricing—retail price (make
up cost if need be)Know the competition
6-31
Product Sales Pitch Cont. Identify the problemBuild interest and excitementGive a testimonyValidate my objections/concernsCreate a decision/move the buyer to act/on
the deal
Top Related