1. Determine Customer Needs & Overcoming Objections Marketing 2.09

2. Sales Process Preapproach –Prepare for the Sale prior to meeting customer Approach 1.Approaching the customer 2.Determining needs 3.Presenting the product 4.Overcoming objections 5.Closing the sale 6.Suggestion selling 7.Relationship building

3. Buying Motives Buying Motive Definition RationalA buying motive that is based off of sound judgment. Occurs from factors such as the economy, utility, comfort, convenience, durability, & security. EmotionalA buying motive based on feelings or passions. Purchasing something based on feelings. Pride, Vanity, Jealousy, Fashion, Habits, Comfort, Love, Praise, Curiosity, Fear, Romance PatronageConsumer has a certain reason to support a store or a specific brand. Superior service, product selection, better sales force

5. Three Types of Customers There are three types of customers 1.Decided Customer knows what they want to buy Can be identified by the way they walk, expression in their eyes / face, & tone of voice 2.Undecided –Customer doesn’t know what they want to buy –Salesperson helps them make up their mind 3.Just-looking –Most difficult customer to sell to –Can be decided or undecided but don’t want salesperson assistance

7. The Approach in Retail Selling If customer is in a hurry, approach them quickly. If customer is undecided, let them look around. Encourage customers to ask questions.

8. Approaching the Customer 1.Service Approach: –The salesperson will ask the customer if they need assistance –“May I help you with something?” –“How may I help you?” 2.Greeting Approach –Simply welcome a customer to the store –Can be formal or informal “Good Morning” “Good Afternoon” 3.Merchandise Approach Can only be used when a customer is stopped and looking at a specific product –Ex: “Is that the size you need?” –Ex: “Are you interested in a specific color?”

9. Determining the Customer Needs

10. A salesperson’s focus should be to determine the CUSTOMER’S NEEDS as EARLY in the sales process as possible

11. Determine Customer Needs Method #1 O bserving Look for non-verbal cues –Is the customer holding the merchandise, looking around like they need help, etc… –Looking for the customer to be interested in product Mystery Shopper Video http://www.youtube.com/watch?v= FeQ3WDhF6wohttp://www.youtube.com/watch?v= FeQ3WDhF6wo

12. Determine Customer Needs Method #2: Listening Give the customer your undivided attention, don’t interrupt, & provide feedback Listen for cues to wants & needs http://www.youtube.com/ watch?v=OrxvmM5aUzYhttp://www.youtube.com/ watch?v=OrxvmM5aUzY

13. How to determine needs cont. Method #3: Questioning Ask open-ended questions to encourage customers to talk Ask clarifying questions to make sure you understand customers’ needs Don’t ask too many questions in a row Don’t ask embarrassing questions

14. Present the Product

15. Sales Process Preapproach Approach 1.Approaching the customer 2.Determining needs 3.Presenting the product 4.Overcoming objections 5.Closing the sale 6.Suggestion selling 7.Relationship building

16. Product Presentation Which Products to Show –After determining customer needs, select products that match those needs What Price Range to offer –Avoid focusing on the price at the start –Begin by showing a medium priced product, you can move up or down with feedback.

17. Product Presentation How many products to show –Show no more than three products at a time so as not to overwhelm the customer What to say –Talk about product’s features and benefits. –Avoid using unclear or vague words Ex: nice, pretty, & fine –Don’t use slang or double meaning phrases Ex: “You look cool in that suit”

18. How can you make your presentation come alive? Displaying and Handling the Product –Creatively display –Handle product with respect Demonstrating –Demonstrate how product is used –Demonstrate features Using Sales Aids –Use aids when impractical to demonstrate actual product Samples, articles, graphs, charts, testimonies, warranty, etc…. Involving the Customer –If possible, get customer physically involved (hold it, smell it, taste it, use it., etc) Have them use try on the shoes, swing the golf clubs, etc…

19. Sales Process Preapproach Approach 1.Approaching the customer 2.Determining needs 3.Presenting the product 4.Overcoming objections 5.Closing the sale 6.Suggestion selling 7.Relationship building

20. Overcoming the Objection

21. Objection What is an objection? –Concerns, hesitations, doubts, or other honest reasons a customer has for not making a purchase. –Should be viewed positively by a salesperson because it gives you the opportunity to explain more

22. Excuses What are Excuses? –Insincere reasons for not buying or not seeing the salesperson. –Commonly used when they are not in the mood to buy a product

23. Five Common Objections 1.Need –“Do I really need this product?” 2.Product –Concerns with color, size, style 3.Source –Past experience with product or brand –“My mother really did not like GE appliances. She said that they are poor quality.” 4.Price –More than the customer wants to spend 5.Time –“I think I will just wait until next month when the product is on sale”

24. Specialized methods for handling objections…. 1.Substitution Method 2.Boomerang 3.Question 4.Superior point 5.Denial 6.Demonstration 7.Third party

25. Specialized Methods of Handling Objections Substitution – Recommending a different product that would satisfy the customer’s needs. Customer: “I don’t like the way this dress looks on me.” Salesperson: “Here, why don’t you try this dress. It has a completely different look. I think it will fit your style better than the one you just had on.”

26. Specialized Methods of Handling Objections Boomerang – bring the objection back to the customer. Customer: “This ski jacket is so lightweight, it can’t possibly keep me warm.” Salesperson: “It’s made of a special material called Thinsulate which will keep you warmer than something heavier.”

27. Specialized Methods of Handling Objections Question – question to learn more about the objections. Customer: “I don’t think my friend will like this shirt.” Salesperson: “Why don’t you think she will like it?”

28. Specialized Methods of Handling Objections Superior Point – Admit disadvantages in certain products but then present superior points to offset or compensate for them. Customer: “Your prices are higher than your competitors.” Salesperson: “That’s true. We use better quality materials and our product will last longer.

29. Specialized Methods of Handling Objections Denial – use when the customer’s objection is based on misinformation. Customer: “This shirt will shrink.” Salesperson: “No, it won’t shrink because the fabric is a special blend.”

30. Specialized Methods of Handling Objections Demonstration – Show how to operate a product. Seeing is believing! –Use when appropriate “I can’t believe the food won’t stick to the bottom of the pan.”

31. Specialized Methods of Handling Objections Third Party – using a previous customer or another neutral person who can give a testimonial about the product. Customer: “I’m not sure how this sofa will look in my house.” Salesperson: “Well, Michelle King bought one just like it last month. She loves it.”

32. Assignment Working in your sales groups (3-4 students). You will be assigned a method for overcoming objections. The group will create a skit that will be performed in front of the class. –Every student must have a speaking part. –Props can and should be used where appropriate. Explain what your method is and then demonstrate it From watching the skit, the class should be able to effectively learn the method the salesperson is using to overcome the objection. You can use this example as your video / role play grade from sales project

33. Video / Role Play Approach Customer –Greeting: Service, Greeting, Merchandise –Determine needs: Listen, Observe, Question –Present the Product: Find a few they may like –Overcome Objection: List objection / concern Use all 7 methods to overcome individually to overcome it

34. Overcome Objections Substitution method –I really like the new iPhone 5s gold edition, but I honestly cant afford it –Well the iPhone 5c edition has comparable features and is much more affordable