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11.02.11 NAME OF PRESENTER Level 2 Certificate in Selling Date NAME OF PRESENTER 7029 HOUSEKEEPING THESE ARE EXAMPLES OF THINGS YOU MIGHT WANT TO INCLUDE: Sessions start at 9.30 and end at 4.30, with a break for lunch. There will be a break during the morning and afternoon. Toilets are located in the stairwell (male ground floor, female first floor). Fire alarm procedure: there is no fire alarm drill today. If you hear an alarm, please use the fire exit at the bottom of the stairs. Smoking is not permitted in the building. Learning Outcomes for Selling 1 2 3 4 5 Explain the differences between sales and marketing and how they are dependant on each other .Demonstrate an understanding of the importance of sales to the organisation .Understand how to communicate effectively within a sales setting Identify how consumer behaviour affects the selling process Describe a range of basic selling techniques appropriate to a range of organisations COURSE STRUCTURE 1 The Theory of Selling 2 3 . Understanding Developing Basic the Consumer Selling Techniques 4 . Effective Selling Communications SECTION 1 THE THEORY OF SELLING By the end of this section students should be able to: • Describe the difference between marketing and sales • Demonstrate an understanding of the benefits of the selling function to the organisation • Explain the links between sales, customer service and profitability WHAT IS MARKETING? Marketing as defined by Brown in 1987: ‘The ability to create and keep profitable customers’ THREE FUNDAMENTAL MARKETING ACTIVITIES 1. Creating Customers 2. Keeping Customers 3. Profitability THE MARKETING MIX 4Ps Product Availability. What is it? Price What discounts are available? Can I offer discounts? Place Where are these items / products available and when? What are the opening & closing times? Promotion Who can help? Where are they located? What promotional material is available? What special offers are on? MARKETING Marketing is a process that: • Identifies • Anticipates • Satisfies customer requirements profitably In other words having: • The right product, in the right place, at the right time, at the right price The Marketing Process • Find out who your customers are • Find out what your customers want • Tell your customers how to get it • Give your customers what they want • Measure how successful the process has been Definition of Sales Sell (PERSUADE) • To persuade someone that (an idea or plan) is a good one and likely to be successful from Cambridge International Dictionary of English Sell (MONEY) • to give (a possession, product or service to someone else) in return for money Reasons for Integrated Sales and Marketing Approach To: • identify the target customer group • make the right product for that target group • ensure your promotional activities will appeal to that target group • raise the customer's awareness of your existing products • inform the customer of new products • find out which promotional activities worked and which did not Sales and Marketing Activities Market Segmentation • Age • Sex • Tastes / life styles / fashions • Activities e.g. work / hobbies • Wealth / income All of these factors will influence: • What your customer is prepared to buy • How much they are prepared to spend • What style they would buy Reasons for promoting the product • Letting people know about a new product • Raising awareness of an existing product • Informing people of a special offer • A means of obtaining more business in quieter periods • A means of increasing customer spending • A means of attracting a particular type of customer • A means of generating more return business MIND MAP Types of Sales TITLE Promotions (USE CA) Vouchers Buy one, get one free Discounts Sales Promotions 2 meals for the price of one Loyalty Bonus Free Drinks Effective Selling and good Customer Service Leads to Greater Customer Satisfaction Good selling can achieve the following: • Repeat business • New customers • Positive word of mouth business • Reduced costs • Increased profitability • Increased customer insight • Increased average sales The Selling Cycle The selling cycle consists of three stages: Presale Sale Post Sale Pre-selling involves finding new customers Prospecting, preparation, planning and initiating contact. Sales presentation – either formal or informal, Handling objections, Negotiation and Closing the sale Delivering the order to the right place at the right time, Making sure that the customer buys from you again and Encouraging customer retention SECTION 2 THE IMPORTANCE OF UNDERSTANDING CUSTOMERS At the end of this section students should be able to: • Explain the stages a customer goes through in order to make a buying decision • Demonstrate an understanding of customer requirements in a variety of selling situations • Use a range of different question techniques to understand customer needs Understanding AIDAS Gaining attention Stimulating Interest Creating a desire to buy Generating action – a purchase decision Post purchase feeling Attention Interest Desire Action Satisfaction The Stages of the Buying Process Need recognition and problem solving Information Search Evaluation of alternatives Make purchase decision Post purchase stage A I D A S FEATURES AND BENEFITS Feature A feature is a technical description of a product or service Benefit A benefit is a description of how the product will benefit the customer – must match their motive for buying. Buyer Motives • Fashion • Price • Desire • Comfort • Distress • Need • Pleasure • Value for money The Art of Good Questioning Open and Closed Questions Soft and Hard Questions Open questions designed to solicit Hard questions refer to specific and Information Indisputable facts Closed questions designed to get Soft questions aim to seek opinions rather specific answers than hard facts SECTION 3 DEVELOPING BASIC SALES TECHNIQUES By the end of this section students should be able to: • Demonstrate an understanding of the importance of selling • Realise the importance of being proactive within a selling role • Describe products and service benefits to customers • Handle selling objections • Explain how to close a sale Proactive and Reactive Selling Proactive Selling taking an active interest in selling taking an active planning role taking every possible opportunity to sell Reactive Selling Ad-hoc as opposed to planned Reacting to customer requests Not grasping every sales opportunity Add-on’s Add-on’s are those products which can be sold over and above those originally purchased by the customer that might be of benefit to them – including: • New car mats • New seat covers • Specialised gear knobs • Steering wheel cover • Special mirrors • Tow bar Up-selling • Upselling is where a sales person sells a product or service of higher value or profitability than originally requested. Substitute Selling Watch, listen, question Explain Select Describe Reinforce To discover a customer’s motives and needs. That the products or services are unavailable An alternative the product or service, using appropriate benefits and adjectives the customer’s decision to buy the alternative product Lack of Product/Service Knowledge If you do not have a good product knowledge you will: • Lose credibility in front of your customer • Not be able to offer your customer advice • Not be able to answer customers questions • Not be able to communicate effectively Advising Customers on Products and Services Being able to advise customers about products or services helps us to: • Feel more confident • Make good recommendations • Match customers needs to products / services • Describe the product / service benefits The Importance of Knowing about THE MARKETING MIX 4Ps Product The products and services available – what are they? Price How much it costs. What discounts are available. Place Where are the products and services available from? Promotion What special offers are there and what promotional material is available? Handling Objections The three most common objections are: 1. Price 2. Products features and benefits not meeting customer needs 3. A lack of understanding of the product and customer needs 3 Steps to Close a Sale 1 2 3 Clarify your understanding of customer needs See if there are any other areas you can help with Propose an appropriate commitment Getting Commitment Get the customer to confirm that they are going to buy by showing some kind of commitment. Such as: • Paying in full • Leaving a deposit • Placing an order After Sales Service Use it as an opportunity to take repeat bookings or Make further sales Check that the Customer Has received their order After Sales Service Clarify that the customer Check out the quality of the is happy with the product – use questions product / service they to clarify their perception received of the product Customer Service Department Their responsibilities include: • Direct customer contact • Ensuring orders are processed • Chasing orders • Dealing with customer queries and problems • Dealing with customer complaints • Keeping a record of sales and other statistics Benefits of Keeping Records • Records can help forecast future business • Keeping a record of how many responses you had to a particular promotional activity can tell you which ones worked and which did not • Records can tell you which products are the most successful SECTION 4 Effective Selling Communications By the end of this section students should be able to: • Demonstrate an understanding of the importance of using effective communications in selling situations • Explain how to recognise a customer’s response in selling situations • Identify the most appropriate questioning and listening techniques within selling • Explain how to handle difficult communication situations Combined Use of verbal and Non-verbal Communication • 7% Actual Words • 38% Voice, Tone, pitch, Pace and Quality • 55% Body Language Using Your Voice Effectively • Stay calm, clear and do not raise your voice • Avoid the use of harsh or high-pitched tones • Avoid over usage of your voice • Keep your voice steady and level • Do not let your voice rise and show frustration Suggestions for Becoming a Better Listener • Adapting your behaviour • Creating a good listening environment • Concentrate on what the buyer is saying • Let the customer talk 80% of the time • Pay attention to non-verbal clues • Make notes Key skills to Use When Listening • Paraphrasing • Reflecting on implications of what the customer has said • Reflecting the underlying feelings • Being non-evaluative Positive Aspects of Listening Listening provides us with information that allows us to: • Act quickly and appropriately • Deal with objections effectively • Demonstrate our interest in our customers and their business • Establish feelings and attitudes • Establish a rapport with the customer • Identify new opportunities • Provide a basis for further questioning • Understand problems How the Telephone is Useful • A good basis for customer care • Very useful for selling • Good for making arrangements • A useful method for gathering information • Looking for new customers • Solving customer selling problems Advantages and Disadvantages of TelephoneSelling Advantages • It is more cost effective Disadvantages • It can be used almost anywhere in the world • The phone does not provide a lasting record of communication and there is no visual impact • It is a convenient method of communication • People hang-up if they do not want to talk to you Key Success Points for Telephone Selling Always: • Answer the phone promptly and courteously • Call the customer by name • Explain who you are and what you are calling for • Deal with specific customer queries • Ask if you can be of any further assistance • Respond to messages Handling Communication Problems When dealing with customers communication breakdown can occur Ensure you do the following: • Observe customer behaviour – verbal and non-verbal • Listen – repeat and confirm • Non-verbal communications – use signs and gestures wisely to create understanding • Use questions to find out more about what customers want and what they are trying to ask for • Be culturally aware . TEST INSTRUCTION • Use the separate answer sheet provided. • Complete this section using black or blue ink only. • Mark your choice of answer by filling in the circles (a or b). • Cancel an incorrect answer by filling in the ‘cancel’ bar beneath the circle you have marked. If you change your mind again; fill in the ‘cancel’ bar beneath the new answer and draw a neat circle around the original answer. TEST INSTRUCTION continued • Do not enter marks in the bottom section of the paper. • Do not make any marks in any part of the paper other than the circles (a or b) and the section with the boxes for your personal details. If you do, the marking machine will be unable to mark your paper properly, thus affecting your score. • Use a pen with black or blue ink only.