SELLING The act of personal selling occurs in a retail setting, business-to-business setting or even over the phone PREPARING FOR THE SALE

Selling –Personal selling: any form of direct contact occurring b/t a salesperson and a customer Non-personal selling: advertising and displays, help create store traffic

Retail selling: unique because customers come to store Business-to-business selling: may take place in a manufacturer’s or wholesaler’s showroom (inside sales) or a customer’s place of business (outside sales) –Cold-call: appear without an appointment Telemarketing: the process of selling over the phone

Goals of selling (same regardless of situation): –Help customers make satisfying buying decisions –If business is successful at keeping customer happy, likely that customers will pass along positive recommendations to friends/family

Consultative Selling –Provides solutions to customer’s problems by finding product that meet their needs –Utilized in retail and B2B

Matching the characteristics of a product to a customer’s needs and wants Feature-benefit chart: combining a product or extended feature with its corresponding customer benefit creates selling points Feature-Benefit Selling

May be basic, physical, or extended attributes Most basic is intended use Tangible: you can touch, see –Price, color, automatic transmission, stereo, air bag, tires Intangible: you cannot touch or see –Warranty, service policy, available financing Product Features:

Customer Benefits Advantages/personal satisfaction a customer will get from a good/service Salespersons job to analyze product features from customer’s point of view Questions to ask: –How does feature help the product’s performance? –How does the performance information give the customer s personal reason to buy product?

Customer Buying Motives Rational motive: a conscious, logical reason for purchase –Product dependability, time, monetary savings, health or safety considerations, service, quality Emotional motive: feeling experienced by a customer through association with product –Social approval, recognition, power, love, prestige

Customer Decision Making Factors that affect how a person makes decision: –Previous experience with product/company –How often product purchased –Amount of information necessary to make wise decision –Importance of purchase –Perceived risk –Time available

Used when there has been little or no previous experience with item –High degree of risk –Very expensive –High value to customer –Manufacturing machinery –Land for new building site –Individual’s first home Extensive Decision Making

Limited Decision Making Used when a person buys goods/services that he or she has purchased before but not regularly –Second car –Certain types of clothing –Furniture –Vacation –Household appliances –Accounting services –Ad agency –Computer programs

Routine Decision Making Used when a person needs little information about product he/she is buying –High degree of prior experience –Low perceived risk Grocery items Newspaper Dry-cleaning services Certain brand name clothing Brand loyalty (cars, computer equipment)

Getting Ready to Sell

Preparation The Preapproach: getting ready for the face-to-face encounter in a selling situation –Product Information Essential for selling success

Direct experience (use product) Written publication –Printed material offer facts/background –Labels: clothing prepackaged items Other people (personal opinion) Formal training –Best way to educate salespeople on certain products –Most industrial sales reps receive through formal training –Retail settings: likely less structured Four Main Sources for Information

Industry Trends Periodicals related to industry Apparel manufacturer: Women’s Wear Daily Retail level: Vogue

Prospecting Prospect: (lead) is a potential customer –Retail not involved b/c customers come into store –Especially important with business-to-business

Employer Leads Directories –Telephone directories –Trade and Professional Directories Newspapers Commercial lists –Buy lists of potential customers from companies Education, age, income, credit card purchases, location Methods

Customer referrals –The names of people who might buy product –Endless chain method: salespeople ask previous customer for names of potential customers Cold canvassing –A salesperson tries to locate as many potential customers as possible without checking out leads beforehand Randomly going door to door

Preparing for the Sale in Business-to Business Selling Business-to-business (B&B) –Activities vary depending on whether sales call is with previous customer or new prospect Previous: know past sales records, family, interests, hobbies New: Does prospect need this product/service? Does prospect have financial resources to pay? Does prospect have authority to buy?

–To find answers you may Call other sales reps (noncompeting lines) Read annual reports Visit retail store/manufacturing facility Conversation with prospect All this research brings you to the final step: set the appointment to see prospect

Preparing for the Sale in Retail Selling Preparation centers around merchandise and work area Stockkeeping/housekeeping –Straightening, rearranging, replenishing –Adjusting price tickets –Learning stock locations/amount –Taking inventory –Arranging displays –Vacuuming/dusting/ keeping neat/clean

Company Policies and Training Training –Four-step process Explanation Demonstration Trial Critique

Compensation and Sales Quotas –Methods of Compensation Straight commission –Paid only when they sell something Straight salary –Paid set amount regardless of how much they sell Salary + commission –Set salary + lower commission based on amount of sells –Sales Quotas: dollar or unit sales goals set for sales staff in a specified period of time Legal and Ethical Issues –Promising more than you can deliver just to make a sale