chapter 13 initiating the sale unit: intro to selling

Chapter 13 Initiating the Sale

Unit: Intro to Selling

Chapter 13 Initiating the Sale

Unit: Intro to Selling

Professional salespeople go through seven steps when helping a customer make a purchase. 1. Approaching the customer 2. Determining needs 3. Presenting the product 4. Overcoming objections 5. Closing the sale 6. Suggestion selling 7. Relationship building

In groups ,come up with a poem, rap or a jingle to

help you remember these

steps!

Chapter 13 Initiating the Sale 3

SECTION 13.1SECTION 13.1

What You'll LearnWhat You'll Learn

The seven steps of a sale

The importance and purposes of the approach in the sales process

The three initial approach methods used by retail salespeople

The Sales ProcessThe Sales Process


SECTION 13.1SECTION 13.1 The Sales ProcessThe Sales Process

Key TermsKey Terms

service approach method

greeting approach method

merchandise approach method


SECTION 13.1SECTION 13.1 The Sales ProcessThe Sales Process

Professional salespeople go through seven steps when helping a customer make a purchase.

Steps of a Sale


SECTION 13.1SECTION 13.1 The ApproachThe Approach

Approaching the Customer

The approach is the first face-to-face contact with the customer. The approach sets the mood or atmosphere for the other steps of the sale. It has three purposes:

to begin conversation

to establish a relationship with the customer

to focus on the merchandise

Slide 1 of 2

Group 1



Approaching the Customer

When approaching the customer, follow these rules:

Slide 2 of 2

Treat the customer as an individual.

Be perceptive about the customer’s buying style.

Be enthusiastic, courteous, and respectful.



There are three methods you can use in the initial approach to retail customers:

the service approach

the greeting approach

the merchandise approach

The Approach in Retail Selling



In the service approach method, the salesperson asks the customer if he or she needs assistance. This method is acceptable when the customer is obviously in a hurry or if you are an order taker for routine purchases.

The Service Approach



In the greeting approach method, the salesperson simply welcomes the customer to the store. This lets the customer know that the salesperson is available for any questions or assistance.

The Greeting Approach



In the merchandise approach method, the salesperson makes a comment or asks questions about a product in which the customer shows interest. This method can only be used if a customer stops to look at a specific item.

The Merchandise Approach


Interactive ActivityInteractive Activity

Retail Approach Methods

ServiceApproachService

Approach GreetingApproachGreetingApproach

MerchandiseApproach

MerchandiseApproach

Hurried Customer

Hurried Customer

Routine Purchase

Routine Purchase

BrowsingCustomer

BrowsingCustomer

Fixated Customer

Fixated Customer

Group 1


Interactive ActivityInteractive Activity

Retail Approach Methods

Group 1

Interactive Activity


13.1 ASSESSMENTASSESSMENT

Reviewing Key Terms and Concepts

1. List the seven steps of a sale.

2. What are the purposes of the approach in selling?

3. Name the three approach methods retail salespeople use, and suggest when it is appropriate to use each method.




Why determining needs is an essential step in the sales process

Three methods used for determining needs

Determining Needs in SalesDetermining Needs in Sales

nonverbal communication

open-ended questions

Key TermsKey Terms


SECTION 13.2SECTION 13.2 Determining Needs in SalesDetermining Needs in Sales

Customer needs are directly related to buying motives. Motives can be rational, emotional, or a combination of both. In this step of the sale, your job is to uncover the customer's reasons for wanting to buy.

Determining Needs

Group 2



How to Determine Needs

Three methods will help you determine customer needs:

observing

listening

questioning



Observing

When you observe a customer, you look for buying motives that are communicated nonverbally. Nonverbal communication is expressing yourself through body language such as facial expressions, hand motions, and eye movement. In B2B selling, nonverbal communication can include the personal belongings in a buyer's office.



Listening helps you pick up clues to the customer's needs. Remember these five important listening skills when talking to your customers: Maintain good eye contact. Provide verbal and nonverbal feedback. Give customers your undivided attention. Listen with empathy and an open mind. Do not interrupt.

Listening



In order to listen to customers, you must get them talking. One way of engaging a customer in conversation is to ask questions.

Build your questions around words like:

Questioning

who

what

when

where

how

why

Slide 1 of 2



Do ask open-ended questions—questions that require more than a yes or no answer.

Do ask clarifying questions to make sure you understand customers' needs.

Don't ask too many questions in a row.

Don't ask questions that might embarrass customers or put them on the defensive.

Questioning

Slide 2 of 2




Slide 2 of 2

Group 2




1. Why is determining needs an essential step in the sales process?

2. When should you begin determining needs in the sales process?

3. At what point in the sales process do you stop determining the customer's needs?

4. Name three methods used to determine customers' needs.

Slide 1 of 2




The goal of the product presentation

How products are selected for the presentation

What to say during the product presentation

Four techniques that will make a lively and effective product presentation

Product Presentation NeedsProduct Presentation Needs

Key TermsKey Terms layman's terms


SECTION 14.1SECTION 14.1 Product PresentationProduct Presentation

During the product presentation phase of the sale, you show the product and tell about it. The goal of the product presentation is to match the customer's needs with appropriate product features and benefits.

Product Presentation

Group 3


SECTION 14.1SECTION 14.1 Product Presentation NeedsProduct Presentation Needs

Show and Tell

This is the step of the sale where you have the opportunity to share your expertise with the customer. At this point you must make the following decisions:

Which products to show.

What price range to offer.

How many products to show.

What to say.



Make the Presentation Come Alive

Planning is necessary for an effective product presentation. You must plan use the following four techniques:

Display and handle the product.

Demonstrate the product.

Use sales aids.

Involve the customer.



Displaying and Handling the Product

Creatively displaying the product is the first step in an eye-catching presentation.

The way you handle a product presents an image of its quality. Handle it with respect and point out its features.



Demonstrating the product in use helps to build customer confidence.

Demonstrating

Example: To prove that a fabric is water resistant, you can pour water on the garment.



When it is impractical to demonstrate the actual product or when you want to emphasize certain selling points, you can use sales aids such as samples, audiovisual aids, models, photographs, drawings, charts, specification sheets, customer testimonials, and warranty information.

Using Sales Aids



Get the customer physically involved with the product as soon as possible in the sales presentation.

Involving the Customer

Example: Have a customer hold and swing golf clubs.

Involve the customer verbally by confirming selling points. When you involve a customer in the sale, you help the person make intelligent buying decisions.




Group 3




1. What is the goal of the product presentation?

2. Which products and how many of them should be selected for the presentation?

3. Give some guidelines for what to say during the product presentation.

4. Describe four techniques that will make the product presentation lively and effective.




The difference between objections and excuses

Five buying decisions upon which common objections are based

The general four-step method for handling customer objections

Six specific methods of handling objections and when each should be used

Handling Customer ObjectionsHandling Customer Objections


SECTION 14.2SECTION 14.2 Handling Customer ObjectionsHandling Customer Objections

Key TermsKey Terms

objections

excuses

paraphrase

boomerang method

superior point method

third party method



Objections are concerns, hesitations, doubts, or other honest reasons a customer has for not making a purchase. Objections give you an opportunity to present more information to the customer.

Excuses are insincere reasons for not buying or not seeing the salesperson.

Understanding Objections

Group 4



Welcome and Plan for Objections

Objections can guide you in the sales process by helping you redefine the customer's needs and determine when the customer wants more information.

Prepare yourself for most objections by completing an objection analysis sheet, which lists common objections and possible responses to them.



Common Objections

Most objections are based on key decisions the customer must make before buying:

need

product

source

price

time

Slide 1 of 3



Common Objections

Need The customer does not have an immediate need for the item or wants the item but does not truly need it.

Product The customer is concerned about such things as construction, ease of use, quality, color, size, or style.

Slide 2 of 3



Source The customer has had negative past experiences with the firm or brand.

Price The customer does not want to spend so much money.

Time The customer is hesitant to buy immediately (sometimes an excuse).

Common Objections

Slide 3 of 3



Successful salespeople have learned to use a very basic, four-step strategy when answering all objections:

Four-Step Process for Handling Objections

Slide 1 of 4

Listen CarefullyListen

Carefully

Acknowledge the

Customer's Objections

Acknowledge the

Customer's Objections

Restate the

Objections

Restate the

Objections

Answer the

Objections

Answer the

Objections



Listen Carefully To demonstrate sincere concern for your customer's objections, be attentive, maintain eye contact, and let the customer talk.


Slide 2 of 4



Acknowledge the Customer's Objections Acknowledging objections demonstrates that you understand and care about the customer's concerns. This makes a customer feel that his or her objections are understandable, valid, and worthy of further discussion.


Slide 3 of 4



Restate the Objections To be sure you understand the customer, paraphrase the objections (restate them in a different way), but don't change the meaning of the customer's objection.

Answer the Objections Answer each objection tactfully. Think of yourself as a consultant, using the objections to further define or redefine the customer's needs.


Slide 4 of 4



There are six specialized methods for handling objections:

boomerang question superior point denial demonstration third party

Specialized Methods of Handling Objections



Superior Point Admit disadvantages in certain products but then present superior points to offset or compensate for them. This technique puts the customer in a position to decide between the different features and see additional reasons for buying.




Denial When a customer's objection is based on misinformation, provide proof and accurate information to answer the objection.

Demonstration Demonstrate a product's features (but make sure they work before using them in a sales situation).

Third Party Use a testimonial from a previous customer or another neutral person.




Boomerang Use a friendly, helpful tone to explain how the objection is really a selling point.

Question Question the customer—but never in an abrupt manner—to learn more about the objections.





Group 4



Reviewing Key Terms and Concepts1. Distinguish between objections and excuses.2. Why should you welcome objections in the

sales process? 3. Name the five buying decisions upon which

common objections are based.4. List the four steps involved in the process for

handling customer objections. 5. Name six specific methods of handling

objections.




The buying signals that a customer sends

The rules for closing a sale

The specialized methods of closing a sale

Customer Buying SignalsCustomer Buying Signals


SECTION 15.1SECTION 15.1 Customer Buying SignalsCustomer Buying Signals

Key TermsKey Terms

closing the sale

buying signals

trial close

which close

standing-room-only close

direct close

service close



Closing the sale is obtaining positive agreement from the customer to buy. All your efforts up to this step of the sale have involved helping your customer make buying decisions.

Closing the Sale

Group 5



Timing the Close

Close the sale when your customer is ready to buy. Some customers are ready to buy sooner than others, therefore you must be flexible.



Buying Signals

Look for buying signals, the things a customer does that indicate a readiness to buy, such as facial expressions, actions, and comments.

Example: A customer is holding merchandise and smiling, or making comments that imply ownership.



Trial Close

A trial close is an initial effort to close a sale.

Attempt a trial close to test the readiness of the customer and your interpretation of a positive buying signal.



You will find it easier to attempt trial closes and to close more sales if you follow a few simple guidelines:

Recognize opportunities. Help customers make a decision. Create an ownership mentality. Don't talk too much. Don't rush a customer.

General Rules for Closing the Sale

Slide 1 of 3



Recognize Closing Opportunities Use major objections that have been resolved to close the sale. Take advantage of high customer interest after a dramatic presentation.

Help Customers Make a Decision When a customer is having difficulty making a buying decision, stop showing additional merchandise and remove those things that are no longer of interest.


Slide 2 of 3



Create an Ownership Mentality Use words that indicate ownership, such as you and your. Look for minor agreements from the customer on selling points.

Don’t Talk Too Much If you think the customer is ready to make a buying decision, stop talking about the product.

Don’t Rush a Customer Be patient, courteous, polite, and helpful.


Slide 3 of 3



Certain selling situations warrant the use of specialized methods:

which close

standing-room-only close

direct close

service close

Specialized Methods for Closing the Sale

Slide 1 of 3



Which Close Encourage a customer to make a decision between two items.

Standing-Room-Only close Use this when a product is in short supply or when the price will be going up in the near future.


Slide 2 of 3

Example: “This is the last pair of shoes I have in your size.”



Direct Close Ask for the sale with non-threatening questions or statements that get the customer ready for the close.


Slide 3 of 3

Service Close Offer services that overcome obstacles or problems: gift-wrapping, a return policy, special sales arrangements, warranties and guarantees,bonuses or premiums, and credit or payment terms.

Example: "Based on what I've shown you, how do you feel about this product?"



Don't despair if your initial attempts to close a sale are unsuccessful.

Invite the customer to shop in your store again.

Remember that even a customer who does not make a purchase is still a prospect for future business.

Failure to Close the Sale


SECTION 15.1SECTION 15.1 The CloseThe Close


Group 5

ServiceClose

Standing-Room-Only

Close

ClosingTheSale

ClosingTheSale

Which Close

Direct Close




1. What are customer buying signals?

2. When is the right time to close a sale?

3. Provide examples of the following closing methods: which close, standing-room-only close, direct close, and service close

4. Why is the failure to close not a true failure?




Why suggestion selling is important

The rules for effective suggestion selling

Specialized suggestion selling methods

The concept of relationship marketing and how it is related to the sales process

Effective SellingEffective Selling


SECTION 15.2SECTION 15.2 Effective SellingEffective Selling

Key TermsKey Terms

suggestion selling

relationship marketing



Suggestion selling is selling additional goods or services to the customer, items that will ultimately save time and money or make the original purchase more enjoyable.

Suggestion Selling

Group 6



Benefits of Suggestion Selling

Suggestion selling benefits salespeople because customers will want to do business with them again.

Suggestion selling benefits customers because they are more pleased with the purchase.

Suggestion selling benefits the company because it saves time and increases profit.



Five Rules of Suggestion Selling

1. Do suggestion selling after the customer has made a commitment to buy, but before payment is made or the order written.

2. Make your recommendation from the customer's point of view and give at least one reason for your suggestion.

3. Make the suggestion definite, rather thanasking, “Will that be all?”

Slide 1 of 2



Rules of Suggestion Selling

4. Show the item you are suggesting. Don’t just talk about it.

5. Make the suggestion positive. “This scarf will complement your coat beautifully.”

Slide 2 of 2



There are three methods used in suggestion selling:

offering related merchandise

recommending larger quantities

calling attention to special sales opportunities

Suggestion Selling Methods

Slide 1 of 4



Offering Related Merchandise Related merchandise can increase the use or enjoyment of the customer’s original purchase. Introducing related merchandise is probably the easiest and most effective suggestion selling method.


Slide 2 of 4



Recommending Larger Quantities This usually works in retail settings when selling inexpensive items or when money, time, and/or convenience will be saved. In business-to-business sales, purchasing larger quantities allows customers to take advantage of discounts.


Slide 3 of 4



Calling Attention to Special Sales Opportunities Salespeople are obligated to communicate special sales opportunities to their customers. Some opportunities include:

the arrival of new merchandise

special sales

holidays


Slide 4 of 4



Relationship marketing involves the strategies businesses use to stay close to their customers. Think of after-sale activities as part of an ongoing dialogue with customers in preparation for future sales.

Relationship Marketing

Example: Harley Davidson’s club for motorcycle owners offers insurance and travel assistance.



Take payment or the order with courtesy. Work quickly to complete the paperwork. Avoid saying or doing anything to irritate your customer at this stage of the sale.

Taking Payment/Taking the Order



Before the customer departs or before you leave your client's office:

Reassure the person of their wise buying choices.

Take the time to educate your customer about any special care or specific instructions for their purchase.

Thank the customer, even if they don’t buy.

Departure


SECTION 15.2SECTION 15.2 Suggestion SellingSuggestion Selling


Group 6



Reviewing Key Terms and Concepts1. What is suggestion selling, and why is it

important?

2. Suggest two rules for suggestion selling.

3. Identify three methods used for suggestion selling.

4. What is relationship marketing and how is it related to the sales process?

5. Why are after-sale activities (such as departure, follow-up, and evaluation) important?

chapter 13 initiating the sale unit: intro to selling

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