Transcript Preparing for the Sale Chapter 12 covers how a salesperson 

Preparing for the Sale
 Chapter
12 covers how a salesperson
prepares for a sale.
Springboard
 Write
a short passage of the best and
worst experiences you have had with
salesperson.
Springboard / Best vs. Worst
 One
person stated that @ Walmart in
Prattville, two workers over the age 40
approached him to ask, “are you finding
everything ok.”
 One person stated that @ 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.
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
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.
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SECTION 12.1
Selling
Key Terms
 personal selling
 customer benefit
 business-tobusiness selling
 rational motive
 telemarketing
 extensive decision
making
 feature-benefit
selling
 product feature
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 emotional motive
 limited decision making
 routine decision making
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
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.
Selling
 In
advertising there is only one-way
communication; in selling there is twoway communication.
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
Goals of Selling
What are two goals of selling?
a.
b.
c.
d.
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.
Goals of Selling
The two goals of selling are
a. To persuade customers to buy
something regardless of their need for
the item.
b. To help customers make satisfying
buying decisions
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.
Example: A computer is
purchased to increase
productivity
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.
Obvious Feature
This car is a bright shade of red.
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.
Product Features
 A.
 C.
Duratech rubber sole.
Removable molded sock liner.
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?
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 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.
Feature Benefit Chart
Feature Benefit Chart
 Page
212, Fig. 12-1
In this feature-benefit chart, which
features are product features and which
ones are extended features?
Feature Benefit Chart
 Sharp
Electronics’ reputation as the
manufacturer and the 90-day limited
warranty are both extended features.
Feature Benefit Chart
Assignment - Choose an item and list
at least five features and benefits.
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.
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.
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
12.1
Graphic Organizer
Types of Customer Decision-Making Processes
Expensive
or Highly
Valued Item
No
Experience
with Item
Information
Needed
Some
Experience
with Item
High
Perceived Risk
Moderate
Perceived Risk
Extensive
Decision
Making
Limited
Decision
Making
32
High
Product
Satisfaction
Much Prior
Experience
with Item
Low
Perceived Risk
Routine
Decision
Making
Knowing Your Product &
Your Customer
Question? Why is it so important for a salesperson to
help customers make satisfying buying decisions?
Knowing Your Product &
Your Customer
 Repeat
Business is the primary
reasons!
Section 12.2 Preparing for the Sale
35
SECTION 12.2
Preparing for the Sale
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
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SECTION 12.2
Preparing for the Sale
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.
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SECTION 12.2
Preparing for the Sale
Key Terms
 preapproach
 prospect
 referrals
 endless chain method
 cold canvassing
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SECTION 12.2
Preparing for the Sale
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.
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SECTION 12.2
Preparing for the Sale
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
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SECTION 12.2
Preparing for the Sale
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.
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SECTION 12.2
Preparing for the Sale
Sources and Methods of Prospecting
A prospect, or a lead, is a potential customer. There
are seven main methods for developing prospects:
 employer leads
 newspapers
 telephone
directories
 commercial lists
 trade and
professional
directories
 cold canvassing
Slide 1 of 4
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 customer referrals
SECTION 12.2
Preparing for the Sale
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
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SECTION 12.2
Preparing for the Sale
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
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SECTION 12.2
Preparing for the Sale
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
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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
a. Prospecting.
b. Using the endless chain method.
c.
Cold canvassing.
d. Qualifying the lead.
Preparing for the Sale
Qualifying the lead.
SECTION 12.2
Preparing for the Sale
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
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SECTION 12.2
Preparing for the Sale
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
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SECTION 12.2
Preparing for the Sale
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
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SECTION 12.2
Preparing for the Sale
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
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Reference(s)
 Glencoe
Marketing Essentials, 3rd
Edition by Glencoe McGraw-Hill