What is Selling? Helping customers make satisfying buying decisions by communicating how products and their features match customers’ needs and wants.

Verbal presentations to with the intent of making a sale. Personal Selling Verbal presentations to with the intent of making a sale.

Goals of Selling Help customers decide on purchases Ensure customer satisfaction Promote repeat business

Remember the Marketing Concept: Satisfy customer needs and wants AND Make a profit

Feature - Benefit Selling The concept that a salesperson needs to match the features of each product to a customer’s needs and wants.

Types of Product features Extended Warranties Delivery Installation Return policy Financing Tangible Style Color Quality Options

Product Knowledge Sources Printed materials Brochures Product tags Catalogs Experience Other employees Mentor Trainer Formal training

Customer Buying Decisions Salespeople must study what motivates customers to buy what decisions customers make before finally purchasing a product.

What motivates a buyer? Rational motives Conscious, factual reason for buying Dependability Time/money savings Convenience Health/Safety Service Emotional motives Feeling of satisfaction desired from a product Social approval Curiosity Recognition Power Love/affection Prestige

Preparing to Sell (con’t) Customer knowledge Buying motives Rational Emotional Buying readiness Dispositions Repeat customers Rational Motive Conscious, logical reasons for making a purchase Emotional Motive Feelings customers associate with the product

Customer Buying Decisions Extensive Decision Making Used when little or no previous experience with the item because it is infrequently purchased.

Customer Buying Decisions Limited Decision Making Used when a person buys goods and services he or she has purchased before but not on a regular basis.

Customer Buying Decisions Routine Decision Making Used when a person needs little information about a product because of a high degree of prior experience or low perceived risk.

Types of Sales Positions Retail sales personnel - Sales clerks and sales associates. Communication skills Professional sales (Industrial: B2B) - Require extensive training and product knowledge. Telemarketers - Sell products over the telephone. Communication skills Internet Sales - Computer skills

Traits of Successful Salespeople Problem-solvers People-oriented Possess math skills Have product knowledge Common personal traits Sincerity Good attitude Enthusiasm Empathy Poise Perception

Steps of the Sales Process Prospecting Pre-approach Approach Determining needs Handling objections Closing the sale Suggestion selling Reassuring/ follow-up

The Buying Process Series of mental steps that a customer goes through when making a purchase. (usually unconscious)

Act of looking for and qualifying a potential customer (lead). Prospecting Act of looking for and qualifying a potential customer (lead).

Sources/Methods of Prospecting Employer Telephone Directory Newspapers Cold-calling Commercial lists Customer referrals Trade/Professional directories

“Getting ready to sell” Pre-Approach “Getting ready to sell”

Types of Pre-Approach Retail Clean store Displays neat Products stocked Promos visible Merchandise tagged Industrial Past sales records Buyer’s products Competitors’ products used by buyer Buyer’s interests, hobbies

Initial contact with customer Approach Initial contact with customer

Types of Approach (retail) Service “May I help you?” Greeting “Good morning” “Those shoes also come in black” – making reference to merchandise Merchandise

Determining Needs Observing (non-verbal communication) Listening Eye contact Feedback empathy Questioning Confirm selling points Encourage communication Clarify customer’s points Regain customer’s attention

Product Presentation Product Selection No more than 3 at one time Mid-price range to start What to do/say? Descriptive adjectives Display product Demonstrate product Involve customer (hands-on) Sales aids (samples, articles, charts, testimonials)

Objections vs. Excuses Objection Concerns, hesitations, doubts or other honest reasons a customer has for not making a purchase Excuses Insincere reasons for not buying – there’s nothing you can do about these

How to know the difference… Determine if the objection addresses one of the 5 buying decisions…

Buying Decisions Need Product Source Price Time Conflict between wanting and not needing something Product Objections about the product and/or its features Source From negative past experiences with company or store Price Usually associated with high-end products Time Hesitation to buy immediately

Common Objections Need Product Source Price Time “I don’t need another coat” Product “I can’t wear this dress to work” “The last time I ordered something from this store, I didn’t get it for 4 weeks Source Price “This is more than I want to spend.” Time “I don’t get paid until Friday.”

Steps to handling objections Listen carefully Acknowledge objections Restate objections Answer objections

Methods of handling objections Yes, but… (provides another viewpoint) Boomerang (turns objection into selling point) Question (to learn more about objection raised) Superior Point (offset objection with other features/benefits)

Methods of handling objections (con’t) Direct Denial (customer inaccurate. You provide proof/accurate information – be careful!) Demonstration (illustrating one or more features) Third party (testimonial)

Sample Objection Analysis Sheet Buying Decisions Objection Response Method of Response Need I don’t need another coat Another coat would give you flexibility with our varying weather conditions Yes, but Superior Point Product I can’t wear that to work What do you do? Where do you work? Question Source The last time I ordered something from here it took 4 weeks to deliver. We had some problems in the past, but we have reorganized our systems so we guarantee 2-day delivery Direct Denial Price This is too expensive. This product is of high quality that is guaranteed to least for at least 10 years. Boomerang Timing I don’t get paid until next week. That’s ok. We have a layaway plan with no money down.

Summary of handling objections Identify reason for objection (buying decisions) 4 basic steps: listen, acknowledge, restate, answer Use one or more response methods

Closing the Sale Timing – be flexible Obtaining positive agreement from the customer to buy Timing – be flexible Buying signals – indicates readiness Trial close – initial attempt to close the sale

8 rules for closing a sale Use words of ownership Use major objections Use effective product presentations Look for minor agreements on selling points Stop talking Stop showing more products Summarize features/benefits Don’t rush customer

Methods of closing a sale “Which” close – deciding between two products Standing-room-only close: short supply or expected price rise Assumption close: “You’ve made a wise choice.” Direct Close: “Let me ring this up.” Service Close: “May I gift-wrap that for you?”

Attempt to sell additional goods or services to a customer Suggestion Selling Attempt to sell additional goods or services to a customer

Why Suggestion Selling? More money for company More money for you (commission?) Satisfied customer Repeat business

Common methods for Suggestion Selling Related merchandise (shoes  socks) Larger quantity (inexpensive items) New stock Advertised/sale merchandise (old stock) Special occasion merchandise (holidays, seasons, events)

Rules for Suggestion Selling Make suggestion after closing but before payment or order taken. Give reason for your suggestion Make the suggestion definite Show/display the suggested item Make the suggestion positive

Sale Follow-up Remind customer of special instructions Thank customer Delivery promises Information calls Courtesy call Customer file Self-Evaluation