Preparing for the SaleCh. 12 ME

What is Selling?Section 12.1

Personal Selling – is any form of direct contact between a sales person and a customer Key Factor: two-way communication between the

seller and the buyer Retail Selling – is when customers come to the store Business-to-Business Selling – may take the place in

a manufacturer’s or wholesaler’s showroom or a customer's place

Telemarketing – process of selling over the phone

Selling

Consultative Selling – is providing solutions to customers’ problems by finding products that meet their needs

Consultative Selling

Feature-Benefit Selling - matching the characteristics of a product to a customer’s needs and wants

Product Features – basic, physical, or extended attributes of the product or purchaseCustomer Benefits – are the advantages or personal satisfaction a customer will get from a good or service

Feature-Benefit Selling

Rationale Motive – is a conscious, logical reason for a purchase

Include product dependability time or monetary savings, health or safety considerations, service, and quality

Emotional Motive – is a feeling experienced by a customer through association with a product

Includes social approval, recognition, power, love or prestige

Customer Buying Motives

Extensive Decision Making – is used when there has been little or no previous experience with an itemLimited Decision Making – is used when a person buys goods and services that he or she has purchased before but not regularlyRoutine Decision Making – is used when a person needs little information about a product

Customer Decision Making

Getting Ready to Sell1. Section 12.2

Pre-Approach – is the preparation for the face-to-face encounter with potential customers

The Pre-Approach

Four Main Sources for Product Information: Direct experience Written publications Other people Formal training

Sales representatives read periodicals related to their trade to gain insight into the industry.

Product Information & Industry Trends

Prospect (lead) - is a potential customer Examples of Prospecting

Employer Leads Directories Newspapers Commercial Lists Customer Referrals

Referrals – the names of other people who might buy the product

Endless Chain Method – when salespeople ask previous customers for names of potential customers

Cold Canvassing (Blind Prospecting) – potential customers are selected at random

Prospecting

Pre-approach activities vary depending on whether the sales call is with a previous customer or a new prospect

Retail sales associates are often responsible for merchandising, stock keeping, and housekeeping

Preparing for the Sale

Training A four-step process: explanation, demonstration, trial and critique

Compensation and Sales Quota Sales people are compensated by:

Straight commission – paid only when sold something Straight salary – get paid a set amount, no matter how much they sell Salary plus commission – set salary and lower commission rate

Sales Quota – are dollar or unit sales goals set for the sales staff to achieve in a specified period of time

Legal and Ethical Issues Sales order is a legal binding contract between buyer and seller

Company Policies & Training