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Sales Knowledge: Customers, Products, Technologies Chapter 6 Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

Chapter 6 6-3

Main Topics The Tree of Business Life: Knowledge Sources of Sales Knowledge Knowledge Builds Relationships Know Your Customers Know Your Company Know Your Product Chapter 6 6-4

Main Topics Know Your Resellers Advertising Aids Salespeople Sales Promotion Generates Sales What’s It Worth? Pricing Your Product Know Your Competition, Industry, and Economy Personal Computers and Selling Chapter 6 6-5

Main Topics Knowledge of Technology Enhances Sales and Customer Service Sales: Internet and the World Wide Web Global Technology Provides Service Technology Etiquette Chapter 6 6-6

6-7 Sources of Sales Knowledge  Sales training  Experience

6-8 Knowledge Builds Relationships  Knowledge increases a salesperson’s confidence  Knowledge increases a buyer’s confidence in salesperson  More knowledge leads to more sales and more relationships

6-9 Know Your Customers  Find out all you can

6-10 Know Your Company  General Company Information  Company growth and accomplishment  Policies and procedures  Production facilities  Service facilities

6-11 Know Your Product  Product knowledge may include:  Performance data  Physical size and characteristics  How the product operates  Specific features, advantages, and benefits of the product  How well the product is selling in the marketplace

6-12 Know Your Resellers  Understand the channel of distribution  Know as much about each channel member as possible

6-13 Advertising Aids Salespeople  Main ingredients of a firm’s promotional effort  Types of Advertising Differ  National advertising  Retail advertising  Cooperative, or co-op, advertising  Trade advertising  Industrial advertising  Direct-mail advertising  Internet advertising

6-14 Exhibit 6-2: Advertising and Sales Promotion Information the Salesperson Provides the Buyer

6-15 Why Spend Money on Advertising?  Companies advertise because they hope to:  Increase overall sales and sales of a specific product  Give salespeople additional selling information for sales presentations  Develop leads for salespeople through mail-ins and ad response  Increase cooperation from channel members through co-op advertising and promotional campaigns  Educate the customer about the company’s product

6-16 Why Spend Money on Advertising?, cont…  Inform prospects that a product is on the market and where to buy it  Reduce cognitive dissonance over the purchase  Create sales or presell customers between sales calls

6-17 Sales Promotion Generates Sales  Consumer sales promotion  Trade sales promotion  Point-of-purchase (POP) displays  Shelf positioning  Shelf facings  Premiums  Sales promotion on the Internet

6-18 What’s It Worth? Pricing Your Product  Price refers to the value or worth of a product that attracts the buyer to exchange money or something of value for the product

6-19 Exhibit 6-4: Examples of Prices and Discounts Salespeople Discuss in Their Sales Presentations

6-20 Know Your Competition, Industry, and Economy  Understand competitors’ products, policies, and practices

6-21 Personal Computers and Selling  The top 10 PC applications include:  Customer/prospect profile  Lead tracking  Call reports  Sales forecasts  Sales data analysis  Sales presentation  Time/territory management  Order entry  Travel and expense reports  Checking inventory/shipping status

6-22 Exhibit 6-9: Salespeople Rely on Mobile Technology to Serve Their Customers GPS Device Cell Phone PDA

6-23 Web Sites Can Provide Valuable Information to Salespeople

6-24 Technology Etiquette  Netiquette – etiquette on the internet  Cell Phones  Voice Mail  Faxes  Speakerphones and Conference Calls

6-25 Chapter 6 Appendix  Sales Arithmetic and Pricing  Pages

6-26 Types of Prices  List price – standard price  Net price – after discounts  Zone price – based on geographical location  FOB shipping point – buyer pays  FOB destination – seller pays

6-27 Discounts Lower the Price  Please use one of these for your sales presentation:  Quantity discounts  Non-cumulative  Cumulative  Cash  Trade  Consumer

6-28 Exhibit 6A-2: Types and Examples of Discounts Skip videoVideo Help

6-29 Resellers: Markup and Profit  Please be familiar with these terms:  Markup  Gross profit  Net profit  Channel of distribution markup  Markup arithmetic  Return on investment

6-30 Exhibit 6A-3: Example of Markup on Selling Price in Channel of Distribution