Presentation on theme: "Marketing Objective 5.03 The Sales Process. Steps of the Sale Approach the Customer Determine Needs Present the Product Overcome Objections."— Presentation transcript:
Marketing Objective 5.03 The Sales Process
Steps of the Sale Approach the Customer Determine Needs Present the Product Overcome Objections Close the Sale Suggest Sell Build Relationships
The approach is… The first encounter with a potential customer Depends on prior encounters –Old customers: comment on families. –New customers: small talk to develop a relationship.
Four Types of Approaches Service Approach: Ask if the customer needs help. Greeting Approach: Welcomes the customer to the store. Merchandise Approach: Comments on the product the customer is interested. Combination Approach: A combination of one or more of the approaches.
Determining Customer’s Needs Determine the customer’s reasons for buying. Should focus on customer’s needs ad early as possible.
Methods of Determining Needs Observing: Look for nonverbal clues. Listening: Helps pick up clues to customer‘s needs. Questioning the customer: Ask questions about how the customer wants to use the product; previous experience.
Methods of Determining Needs Once needs are determined, salesperson can ask more specific questions.
Product Presentation First decision: What product to show? – –How will they use the product? Show no more than 3 products at a time. Remove the products the customer is not interested in.
Product Presentation – –Show medium priced product first. Price should not be introduced early. Prove how valuable the product will ne for the customer. – –Highlight the features and benefits. Descriptive adjectives, action verbs. Avoid unclear words: nice, fine.
Product Presentation Plan accordingly for effective product presentation. – –Display and handle the product. Handle the product appropriately. Use hand gestures to show features.
Product Presentation – –Demonstrate the product. Help boost customer confidence in the product. Show proper use of the product. – –Use sales aids. Samples, models, testimonials, audiovisuals. Be creative in deciding which aids to use.
Product Presentation – –Involve the customer. Physically engage the customer in the product demonstration as soon as possible. – –Hold the customer’s attention. Involvement helps in the buying decision. If losing customer attention, ask open- ended questions to get back on track.
Buying Objections Objection: A legitimate reason, doubt, or hesitation a customer has for not making a purchase. Excuse: A reason a customer will not buy or speak to a salesperson. – –Excuses are used when a customer is not interested in buying.
Buying Objections In retail situations: Remain polite and suggest the customer look around. In B2B situations: Leave a business card.
Buying Objections Objections may be based on: – –Need: Urgency for the product. – –Product: Design, size, color, style. – –Source: Related to past experiences. – –Price: Most common with expensive products. – –Time: Customers leery about “on the spot” purchases.
Handling Buying Objections Procedures for handling objections: – –Listen carefully. – –Acknowledge the objection. – –Restate the objection. – –Answer the objection.
Handling Buying Objections Methods for handling an objection. – –Substitution: Identify another product. – –Boomerang: Bring the objection back to the customer as a selling point. (Be careful not to be condescending) – –Question: Ask questions to learn more about the objection.
Handling Buying Objections – –Superior-point: Offset the customer’s objections with the product’s features and benefits. – –Denial: Objection is based on misinformation. – –Demonstration: “Seeing is believing.” – –Third Party: Use testimonials.
Closing the Sale Time the close: – –Closing a sale: Initiating and obtaining an agreement from the customer to purchaser the product. – –Look for buying signals: Customer actions indicate he/she is ready to buy. – –Trial close: Test the readiness of the customer to buy.
Closing the Sale Rules for closing the sale. – –Recognize closing opportunities. – –Help customers make decisions. – –Create ownership mentality. (Use words like “you” and “yours”) – –Do not talk too much or rush the customer.
Closing the Sale Methods for closing the sale. – –Which: Suggest choice between two items. – –Standing-room only: Used when there is a limited number of products in stock or when the price is expected to increase. – –Direct: Asking for the sale. Most effective when buying signals are strong.
Closing the Sale – –Service: Explain the services available. Works best when handling dilemmas. – –If the close does not result in a sale: Get feedback from the customer on why no purchase.
Suggestive Selling Suggestive selling is: Selling complimentary or additional goods or services to the customer that would make the original purchase more enjoyable. The salesperson, customer, and company benefit from suggestive selling.
Suggestive Selling Rules for suggestive selling. – –Suggestion sell after the customer has made a commitment to buy and before payment is made. – –Make recommendations from the customer’s point of view and explain the recommendation.
Suggestive Selling – –Make the suggestion specific. – –Allow the customer to see the item being suggested. – –The suggestion should be helpful.
Suggestive Selling Suggestion selling methods. – –Cross selling: Offering related merchandise. (Shoe polish for shoes) – –Upselling: Larger quantities of merchandise at a lower price. – –Special sales opportunities: Inform customer of special sales.
Maintaining Customer Relationships After-sales activities: – –Order processing: In retail: Bag the customer’s purchase with speed and care. In B2B: Complete necessary paperwork and leave a business card. – –Departure: Reassure the customer that the right decision was made. Restate proper care and use instructions. Always thank the customer regardless of the outcome.
Maintaining Customer Relationships – –Order fulfillment: In retail: Customer pays for the product and takes it home. In e-commerce: – –Product is chosen by the customer. – –Customer’s payment is processed. – –Product is packaged. – –Order is shipped. Order fulfillment may also include customer service, returns, exchanges, and refunds. – –Follow-up: Follow through with promises made. Checking up to see of the customer is satisfied.
Maintaining Customer Relationships – –Customer service: Handle customer inquiries and complaints. (Goal is customer satisfaction) – –Keeping a client file: Record useful information regarding the customer and the purchase. In retail: Record customer’s size, style, name, and address. In B2B: Record family status, hobbies, and birthdays.
Maintaining Customer Relationships – –Evaluate sales efforts: Complete a self-evaluation after the sale. What were the strong points of the presentation? What was done incorrectly/ineffectively? How can the presentation be improved? What should be done differently? If the sale was successful, what can be done to solidify the relationship?
Customer Relationship Management (CRM) CRM is managing detailed information about customers and carefully managing customer preferences (or touch points) in order to maximize customer loyalty.
Customer Relationship Management (CRM) Implement technology and CRM: Firms can purchase software or subscribe to online services to track data. Maintain contacts: Salespeople can act as consultants to customers.
Customer Relationship Management (CRM) Maintain relationships: Provide customers personalized service. Develop customer loyalty: – –Keep customer happy before, during, and after the sale. – –Aware of new products through or direct mail. Implement reward programs: Reward customers who patronize the business.