4.00 channel mgt, selling promotion and economic trends

4.00 CHANNEL MGT, SELLING PROMOTION AND

ECONOMIC TRENDS4.04

Employ sales processes and techniques to enhance customer relationship and to

increase the likelihood of making sales.

Explain why salespeople should be able to recognize types of customer personalities.

Professional salespeople must be able to modify to separate personalities and other situations.

http://EzineArticles.com/3942700 Helps you to adapt yourself to your client; Every customer

will be different An effective sales person can try to identify the customer’s

personality type by observing the customer’s actions. If you are able to quickly identify the personality style of the

customer, you will know the "hows" and "whys" of what to say to meet their needs

Once the customer feels that you truly understand them and feel an emotional connection, they will be more willing to buy from you

Improves the odds that the sales person can persuade their potential customer that the product best meets the customer’s needs.

To be effective your sales talk must address different customers in different ways

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Explain the importance of acting appropriately for different customer

personality types.

Every customer is different, so be prepared to adjust your approach to each

If you use the wrong personality type approach, it is likely the customer will not be willing to buy from you

Customers buy when they are understood The wrong approach can lead to

misinterpretations between the salesperson and customers.

Identify types of customer personalities.

Aggressive One possible advantage of the Aggressive visitor is that they tend to

be fast in making a purchase decision. If you can prove your worth to them, you'll have a quick sale.

Concentrate your sales elements on calling out the main benefits and summarize content using bullet points.

The bottom line? Tell them what your product or service does that helps solve their problem.

Systematic The Systematic customer personality types require facts and

information (typically lots of it) before making a purchase decision. This means taking the time to provide additional details and

documentation to prove your product or service does what you say. This personality type requires information that is systematically

organized and makes logical sense. Accuracy is important to them.


Impulsive Impulsive customer personality types are not always sure

what they are looking for, but if they chance across something they think can help them, tend to make an immediate purchase.

Social This personality type is usually slow to reach a purchase

decision as they prefer to check in with others in an attempt to find someone who has used the product.

Social customer types want to know who else has used the product and if it performed as advertised. Testimonials are an important part of converting Social personality types.

http://www.small-biz-marketing-tips.com/customer-personality-types.html




The egotistical client This client eternally wants only superior, great

reputation and high prestige products This client will only go for your product or services if

you can persuade them that it is the newest, most advanced and most appropriate there is on the market.

The friendly customer The friendly customer gets on best with salespeople

who have the same type of personality. Agreeable clients are extremely uncomfortable in

the vicinity of boastful or authoritarian salespeople, who they think treat them like a child.


The business-like authoritarian customer Can handle facts and figures Furnish this group of clients with

comprehensive facts and make them sense that they are the one making the decision. Do not pressure them - employ logical arguments instead.

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The key six types: Decisive Personalities Impulsive Personalities Fact-Finder Personalities Practical or Frugal Personalities Informed Personalities Difficult Personalities

Describe the characteristics of decisive personalities.

Decisive customers are typically more forceful and assertive.

They know exactly what they want and don't want to waste time getting it.

Want to know the facts and are interested in comparing products

If you appear knowledgeable and professional and stay focused on meeting their needs, you will probably win their business

Describe the characteristics of impulsive personalities.

Impulsive customers are not always sure what they are looking for, but if they chance across something they think can help them, they tend to make select products quickly and make an immediate purchase.

Impulsive visitors tend to react well to money-back guarantees and limited-time offers.

Impulsive customers typically like the stimulation of graphics, audio or video as long as it is informative and helps them make a buying decision.

Large amounts of data in the form of tables and graphs can be annoying or even overwhelming to them.

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Describe the characteristics of fact-finder personalities.

Fact-finders are looking for quantitative data that helps them choose one product over another

They tend to prefer a logical approach and are “rationally” motivated buyers rather than emotionally motivated

Offering clear comparisons and using factual and verifiable specifications helps them make a decision.

Example: suggest product care techniques.

Describe the characteristics of practical or frugal personalities.

Practical and Frugal are looking for a good value for their money It doesn’t have to be the best, but needs to fit

requirements Product specifications mixed with testimonials

works well for this kind of buyer Extra features that cost money aren’t

interesting to them Pointing out that they are getting the best

“bang for the buck” is what closes this customer

Describe the characteristics of informed personalities.

Informed buyers have usually already studied the products before stepping into the store or the online website The are looking for confirmation of what they

already know and then wish to compare prices for similar features

Reassuring the customer that that they have made a great choice and are getting what they were looking for is the best way to sell to this customer

Describe the characteristics of difficult personalities.

The difficult customer usually has a poor opinion of sales people May be based on hearsay or past experience Doesn’t trust the selling process

May have insecurities about themselves or low self-esteem

Offering verifiable information and giving the difficult customer space and time to think is a good way to sell to them

Be available but don’t hover around them

Describe actions to take in handling each type of customer

personality. Decisive Personalities

Offer information Impulsive Personalities

Question their reasons for shopping and present a product that meets their needs

Fact-Finder Personalities Just the facts, please

Describe actions to take in handling each type of customer

personality. Practical or Frugal Personalities

Best “bang for the buck” Informed Personalities

Clear comparisons of rival products Difficult Personalities

Answer questions, then give them space and time

Discuss guidelines for handling all personality types.

Everything we have already discussed The key is to know the features of

the products you are selling and then tie those features to specific benefits that the individual customer is looking to get from your product

Handle difficult types of customer personalities.

Any type of customer can be difficult if you aren’t prepared to understand them and respond properly, so learn how to handle each type

Observe customer’s actions Listen to the customer Question and Engage the customer

Define buying motive, emotional motives, rational motives and

patronage motives. Buying Motive: The reason why a

customer buys a good or service Rational Buying Motive: When the

customer has conscious, logical, well thought out reasons for making a purchase.

Emotional Buying Motive: Feelings experienced by the customer through association with a product or service.

Patronage Buying Motive: The loyalty associated with a product or store.

Classify buying motives as emotional, rational or

patronage. Rational Buying Motives:

Product Dependability Time and Monetary savings Health or Safety consideration Service Quality Durability

Emotional Buying Motives: Social approval Recognition Power Love Prestige

Classify buying motives as emotional, rational or

patronage.Patronage Buying Motives:

Low Prices High quality Friendly staff Great customer service Merchandise Assortment

Describe reasons that salespeople should understand customers'

needs and wants. To successfully sell a product, sales

people effectively use buying motives to meet a customer’s needs or wants

On occasion, a customer doesn’t understand the products that are available and the professional salesperson will work with the customer to discover their real needs and wants

Understand the underlying needs and wants allows the salesperson to select the correct product.

Identify reasons that customers buy.

Customers have: 1. A problem to solve (need)2. An unfulfilled desire (want)

These can be for themselves or someone else that they know

Family Friends Professional (work related)

Classify buying motives as emotional, rational or patronage.

Emotional Social approval , recognition, power, love,

prestige (etc.) Rational

Product dependability, time or monetary savings, health or safety issues, quality, durability (etc.)

Patronage Brand loyalty, store loyalty

Describe techniques for identifying buying motives.

Listen and Question What seems to be important to the customer?

What do they stress in their answers? Who or what do they look at before answering

a question? Do they look at the person they came with (for

approval)? Do they look at the product or product info?

Demonstrate procedures for identifying customer buying motives for use in

selling.

Do the things that have been addressed in the earlier slides.

Define the following terms: buying decision, need decision, product decision, place

decision, price decision and time decision.

Buying decision – Customer agrees to purchase the product

Need decision – because of a need for it (need a winter coat)

Product decision – reputation of the product or manufacturer

Place decision – where the customer can buy the product

Define the following terms: buying decision, need decision, product decision, place

decision, price decision and time decision.

Price decision –because of the price relative to the competitor’s product

Time decision – need for additional information -------- the customer isn’t ready to buy Time of day or year

Types of Buying Decisions

Identify types of buying decisions. Place Price Time

Identify factors affecting place decisions. How and where will we sell to the customer? How close is the store? Does it have the item I need in stock? Business loyalty or patronage Are there shipping/delivery costs?


Cite factors affecting price decisions. Perceived value Discount Perceived quality Cost, competitors’ prices, what the customer

is willing to pay List factors affecting time decisions.

Time of year Time of day Need for additional information


Explain the importance of salespeople's helping customers to make buying decisions. Often salespeople are the relative experts on

the product being offered Salespeople are trained to help the customer

arrive at a decision when the customer isn’t sure what they want or need

The salesperson offers encouragement


Describe guidelines to follow in order to facilitate customers’ buying decisions. Observe, listen, question and engage Offer a mid-priced item first Determine if there is a certain brand or style that

would be best Avoid over selling

Assist customer in reaching favorable buying decisions. Select a suitable item Demonstrate the product Allow the customer to try it Overcome objections Close the sale

5-104 5-105 VocabularyDefine the following terms: probing,

information-gathering probes, opinion-gathering probes, and confirming probes.

Probing – a method of discovering what the customer wants

Information-gathering probes – method of gathering information about the customer and their needs

Opinion-gathering probes – used to determine what the customer is thinking. Aimed at getting the customer’s opinion on available products

Confirming Probe

Aimed at ensuring that the customer is certain about what they wish to buy

An important step before selecting a product or attempting to close a sale

Can also be used to check for objections

Probing

Distinguish between probing and questioning.

Probing is much like assumptive questioning Probing is aimed at getting the customer to

go into more depth without asking direct questions

This can help get a more accurate truth than the customer is prepared to give through answering questions

Questioning directly asks for information and might miss subtle cues about what the customer really wants

Probing

Describe reasons for probing. To identify customer’s needs and wants If the customer’s answers to questions aren’t

consistent Using probing in a sales presentation can

make less time needed to close the sale The customer seems unsure:

About what they want About whether the product will satisfy their

needs

Probing

Explain benefits of probing to assess customer/client needs. Probing is less direct and often less annoying to

the difficult customer It helps the salesperson get valuable information Less time is needed to make a sale

Identify probing techniques. Open ended questions Silence Nodding your head as they talk (to encourage

more information)

Probing

Explain guidelines for assessing customer/client needs. Be professional, yet friendly Use all tools appropriate for the customer to

get to the heart of what they need or want Demonstrate procedures for assessing

customer/client needs. Observe customers’ facial expressions during

the sales presentation to determine which selling points appeal to them.

5-106 5-108 Vocabulary

Define the following terms: sales talk and product demonstration.

Sales talk – a speech the salesperson gives to introduce him/herself, the company and the product(s) Used to motivate the customer and focus their

desires so they are more likely to purchase Product demonstration – show, tell and

touch Inform the customer on how to use and then

let them try it for themselves

Demonstrations

Explain the importance of an effective product demonstration. Can mean the difference between a sale or

the customer leaving with nothing Can help the customer better understand the

product and how to use it Builds the customer’s confidence in the

product and its use Get the customer excited about the product

Demonstrations Describe guidelines to follow in selecting a product

to demonstrate to a customer. Appropriate to their needs Show limited number of products at one time Mid-priced product if possible

Explain guidelines to use in demonstrating products. Involve the customer Watch how they use it and make friendly

suggestions to enhance their experience with it Demonstrate features that interest the customer Help the customer get excited about the product

Demonstrate the product.Example: If you are selling a food product,

actually cook the product for the customer and give them samples.

5-109 5-110 Feature-Benefit Selling

Discuss the importance of feature-benefit selling. Most effective method of selling Aims at helping the customer see how the

features will directly benefit the customer Matching the characteristics of a product to a

customer’s needs and wants Customers don’t buy products, they buy what

the product can do for them (Customers buy BENEFITS)

Feature-Benefit Selling

Describe product features that should be considered in preparing to use feature-benefit selling. Features are basic, physical or extended attributes of a

product (they are built into the product) Features can be used to help differentiate prices for otherwise

similar items (more expensive feature make the product more expensive)

A feature is a physical characteristic or quality of a product. It is something the customer can touch, feel, smell, see, or

measure It helps describe the product. A feature answers the question, “What is it?”

Ex: color, style, size Example: An air pocket in the Nike tennis shoe.

Benefits

A benefit is the personal satisfaction or advantage that a customer wants from a product. It is how the feature helps a particular buyerFor customers, it answers the questions:

How will I benefit?What’s in it for me?Example: The air pocket in a Nike tennis shoe provides Comfort.

Feature Benefit Selling

Prove to customers your product has features that benefit them

Customers buy benefits-not features Compare to competition Determine what each customer is looking

for in a good or service

Types of Benefits

Salespeople should be able to explain these three types of benefits to customers:

Obvious or apparent benefits Unique or exclusive benefits Hidden benefits

Obvious or Apparent Benefits

Advantages that need little explanation by the salesperson.

The customer already knows the benefit Ex: Neutral colored carpeting

What is the obvious benefit?

Even if benefits are obvious, salespeople should still point them out and use them to prove the value of the product to customers

Unique or Exclusive Benefits

Advantages that are available only from your good, service or business.

Is a selling advantage over your competitors

Ex: a car that “parks” itself is a novelty Offers a huge benefits to customers that have

trouble parallel parking

Hidden Benefits

Advantages that cannot be seen or understood without the assistance of a saleperson

Ex: buying a pair of shoes You can see the color and style You can not see how comfortable they are

until persuaded to try them on your feet.

Ex: purchasing a computer Warranties/24-hour helpline

Feature-Benefit Selling

Explain the importance of determining which features and benefits appeal to each customer. Since the customer is buying the benefits, a

salesperson must find and understand what benefits the customer wants to get from the purchase

Matching the product features that will give the customer the benefits they want will help you complete the sale

The benefit(s) must be of real value to the customer

Feature-Benefit Selling Explain the guidelines for prescribing a

solution to customer needs. Listen carefully to customers as they describe

what they want Look for clues to important underlying

wants/needs that haven’t been mentioned (Use probing techniques and assumptive questions)

Watch the customer during the demonstration portion, what is s/he most interested in?

Clearly show how the product meets the customer’s needs

Demonstrate procedures for prescribing solutions to customer needs

5-111 5-113 Objections Vocabulary

Define the following terms: objection, yes, but. . ., toss-it-back, deny it, point-counterpoint, inquiry, show 'em, testimonial, try it.

Objection – a legitimate reason, doubt, or hesitation a customer has for not buying the product

“Yes, but. . .” – indicates an objection has not yet been satisfactorily answered

Toss-it-back – “boomerang” response where an objection is brought back to the customer as a selling point (past experiences)

Objections

Deny it – the objection is based on misinformation (be diplomatic)

Point-counterpoint – “Superior-point” used to offset the objection with the product’s features and benefits

Inquiry – “Question” used to clarify by asking direct questions about what is bothering the customer

Show 'em – Demonstrate the product again

Objections

Testimonial – third party referral of positive feedback

Try it – “Satisfaction guaranteed or your money back”

Objections

Distinguish between objections and excuses. Objections are legitimate reasons not to buy Excuses are reasons given when the customer

doesn’t want to talk to the sales person or make a decision (usually related to time)

Explain the importance of properly converting customer objections into selling points. Since an objection is a reason not to buy, a

salesperson must overcome objections to make a successful sale

Showing that the objection is actually a good reason to buy will often result in a sale

Objections

Describe reasons that salespeople should be prepared to answer objections. Objections can occur anytime in a sales

presentation, from the approach through the closing

Until the objection(s) are overcome, the customer probably won’t buy

Most customer can’t clear the objections themselves, so the salesperson must be prepared to help

Ask additional questions and explain other features and benefits.

Objections

Classify types of objections. Need – urgency for the product (don’t

need a winter coat in May) Product – The design, quality, color size,

style, or ease of use don’t work for the customer

Source – manufacturer, brand or country of origin

Price – too expensive or too cheap (value) Time – pressured to buy on the spot, don’t

have time to properly consider the details

Objections Describe methods of converting objections into

selling points. Substitution, Boomerang, Question, Superior point,

Denial, Demonstration, Third-party Explain procedures for converting objections

into selling points.1. Listen carefully to customer objection2. Pause before answering in order to get the customer’s

full attention3. Empathize with the customer4. Restate the objection5. Avoid arguing with the customer6. Convert objection into selling point7. Answer objection honestly and continued selling

Demonstrate skill in converting objections into selling points.

5-114 5-115 Closing a Sale

Define the term sales close. Obtaining an agreement from the customer to

purchase the product List reasons that closing a sale is a

courtesy to customers. The customer has a want or need to be

satisfied Time has been spent in the pursuit of finding a

product Driving, talking to salespeople, looking up

products on the internet, phone calls, etc.

Closing a Sale

Explain the importance of using an appropriate closing technique. There are multiple techniques and some will

work more effectively than others on certain customers or with certain products

Needs to fit the situation Identify closing techniques.

Trial close, which, standing-room only, direct, and service

Closing a Sale

Describe the following closing techniques: Direct – Ask if they are ready to buy Assumption – trial “Would you like this gift

wrapped?” Minor-points – Get agreement from the

customer on a number of little things then ask for the sale

Summary – Review the things the customer liked about the product

Standing-room Only – limited time to purchase because of price going up or last item

Closing techniques:

Closing on objection – When the objection has just been cleared, ask for the sale

Contingent – “If, then” If I can get this done for you, then will you buy?

Contrasting advantages and disadvantages – Show how the advantages outweigh the disadvantages (upside vs. downside)

Suggesting ownership – Using words like “you” and “yours”

Closing techniques

Narrative – Talk the customer through the sale and confirm for them that everything has been covered and that they are ready to buy

Related merchandise – Offer items that complement the original purchase

Bonus – Offer an extra to sweeten the deal if they purchase now

Silence – Give the customer time to think and sell themselves

Closing a Sale

Classify examples of closing techniques. Trial close, which, standing-room only, direct, and service

Describe guidelines for closing sales. Be sure that the product is a good fit for the customer (it

costs you more to sell it and then get it returned) Focus on the benefits to the customer Be sure all objections have been cleared Encourage the customer that s/he has made a good

decision Reassure the customer about their buying decision by

displaying self-confidence Maintain a positive attitude

Demonstrate how to close a sale.

5-116 5-117 Suggestion Selling

Define the term suggestion selling. Complementary goods that enhance the

original sale Identify examples of suggestion selling.

Do you want fries with that? I can show you some great ties to go with this

new suit. Would you like a cold drink with your hot dog?

Suggestion Selling

Describe the importance of using suggestion selling. Helps customers get more enjoyment from the

original product Can increase total sales and improve profits

Categorize items that are appropriate for suggestion selling. Cross selling – related merchandise (a tie to match a

shirt) Up-selling – larger quantities (buy two get one free) Special sales opportunities – other departments in the store Trading Up- Persuading a customer to buy better and

higher priced goods.

Suggestion Selling

Explain guidelines for using suggestion selling. Focus first on completing the original sale Based upon the personality of the customer,

select items that will enhance the original item and present them as options for the customer (think from the customer’s point of view)

Make specific suggestion(s) Let the customer see how it works together

with the original item Demonstrate proper procedures to use in

suggestion selling.

5-118 5-119 Negotiating

Identify benefits of negotiating sales terms. Allows flexibility when dealing with the

customer Some customers may be able to purchase an

item that otherwise could not be bought without the flexibility in sales terms

Discuss the importance of patience when negotiating sales terms. Because the salesperson is offering the

customer options for buying and paying, sales must be prepared to give the customer time to think.

Negotiating

Explain the need to analyze the product’s added value in comparison to that of competitors.

Describe the importance of being prepared for negotiations from the beginning of the sale.

Discuss information that the salesperson needs in order to negotiate effectively.

Negotiating

Explain how to create win-win negotiations. Start with the idea that the sale will be good

for both parties (customer and company) Remember the lowest price the company can

sell the item and be sure to avoid going below that number

Make sure that you are offering a product that has real value to the customer

If the client’s terms would be harmful to the sales person’s company they should just walk away from the sale.

Discuss the importance of considering the buyer’s feelings when negotiating sales. The customer does NOT have to buy from you Future sales are dependent on their opinion of

you

Negotiating

Explain barriers to sales negotiations. Normal communication barriers Preconceived notions Emotions (anger, pride, guilt/regret, worry) Lack of honesty or integrity “Hidden agendas”

Describe the use of silence in negotiating sales. Most people feel uncomfortable in silence, the

first to talk usually gives up power Demonstrate how to negotiate sales

terms.

Distinguish between sales standards and sales policies Standards are best practices, lessons learned, and minimum

operating procedures Policies are guidelines selected by the company that outline how

sales will be done, can include limits Explain the purposes of sales standards

Standards are used as a benchmark. Each set of standards should correspond with desired performance outcomes for each salesperson. When standards are customized, they more accurately reflect the degree to which an individual employee is meeting expectations.

Standards may also be used as a tool to measure the performance of an entire sales team or a customer-focused group.

Group standards typically focus on common objectives such as customer satisfaction, client retention, increased revenues and referrals, and new product rollouts.

Standards provide structure for salespeople without stifling their personalities

Sales Standards and Policies

Sales Standards and Policies Discuss benefits of having sales standards.

Help build a specific image for the company (position it relative to its competitors)

Easier to evaluate salespeople Sales support staff knows what to expect

Sales Standards Examples One example: A numeric target, such as “serving 6

customers per hour” sounds good, however if you do not control the rate of customer arrivals then the measure is not within the employees control, as there maybe times when less than 6 customers per hour arrive.

Confirming sales call appointments the day before a presentation to increase the close rate is a more justified standard.

Sales Standards and Policies

Describe common sections contained in sales standards documents corporate information, sales organization, on-

boarding process, sales and technology, prospecting, the engagement cycle, and selling tactics).

Demonstrate procedures for maintaining sales standards.

5-122 5-123 Selling Identify appropriate selling techniques for use with a

specific client/customer. Decisive Personalities

Offer information Impulsive Personalities

Question their reasons for shopping and present a product that meets their needs

Fact-Finder Personalities Just the facts, please

Practical or Frugal Personalities Best “bang for the buck”

Informed Personalities Clear comparisons of rival products

Difficult Personalities Answer questions, then give them space and time

Demonstrate procedures for selling a good or service. Once a need is determined provide more information on

the product.

LowAssertiveness

HighAssertiveness

Amiables• feeling

Expressives• intuitive

Analyticals• thinking

Drivers• sensing

Expressive about feeling and emotions; people-oriented; subjectivehttp://cas.uah.edu/wrenb/MKT315/ch6/Adaptive%20Selling.m.ppt

Wants facts and figures; precise about time; Task-oriented; objective and reserved

Inquisitive; slow-acting; low risktaker; non-verbal; cooperative

Fast; active;High risk taker;verbal; directive; competitive

4321

1

2

3

4

HighResponsiveness

LowResponsiveness

http://cas.uah.edu/wrenb/MKT315/ch6/Adaptive%20Selling.m.ppt

5-124 5-125 Selling to Groups

Explain how sales techniques are modified to sell to groups. Salesperson must be aware of the group

dynamics Official leader Informal leader Who is the expert?

Include all members in the presentation Encourage interaction

Selling to Groups

Explain the use of technology in selling to groups. Presentation software Presentation materials and hardware

DVD, monitor, projector Multiple products to demonstrate

Demonstrate procedures for selling to groups. Explain product benefits without emphasizing

one over the other. Encourage interaction

4.00 channel mgt, selling promotion and economic trends

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