Selling Chapters 13 - 17

Selling Selling is: the face-to-face contact with the customer in an effort to assess their needs and satisfy those needs with appropriate products and services

Importance of selling to economy Improves decision making of customer Increases sales of business More jobs Better information

Characteristics of “effective” salespeople Good communication skills Good interpersonal skills Solid technical skills Positive attitude and self-confidence Goal orientation Empathy Honesty Enthusiasm

Sources of product information Product manuals Formal training Direct experience Labels Promotional materials Other employees Company’s website

Selling policies Store Guarantees Warrantees Amount of time to return product Exchange procedures Return procedures

Buying motives Rational motives – conscious, factual reason for buying a product Dependability, time, convenience, monetary savings, health or safety considerations, service, and quality Emotional motives – a feeling experienced by customer based on association w/product Social approval, power, love, affection, prestige Patronage motives – Loyalty to a business

Prospecting Looking for new customers Employer leads Newspapers Telephone directories Commercial lists Customer referrals Cold convassing

Preapproach Getting ready for the first face-to-face encounter with the customer Retailing: Straighten, arrange, replenish stock Adjust price tickets Taking inventory Arranging displays Vacuuming, dusting, keeping sales area clean

Preapproach Business-to-Business selling: Analyze their previous sales records Review notes about buyer’s personality, family, interests Do they have the authority to buy Do they have the financial resources to pay?

Feature-benefit selling Telling the customer about both the features and the benefits of each feature

Tangible product features A physical characteristic or quality of a good or service that explains what it is. Color Price Material Texture

Customer benefits Advantages or personal satisfaction that a customer gets from a good or service How does the feature help the product’s performance? How does the performance information give the customer a personal reason to buy the product Feature: Camera has a automatic flash mode Benefit: Allows for flash in all conditions

Extended product feature Not always physically part of the product, but are important to purchase decision Warranties Service policy Available financing Reputation of company

The approach in retail selling The goal of the approach is to make the customer feel comfortable and also find out information to satisfy their wants and needs Smile, be respectful, enthusiastic

The approach in business-to-business selling Set up appointment Arrive early to appointment Introduce yourself and your company Give a firm handshake

Service Approach Ask the customer “May I help You?” This is the least effective approach because they can say “no”. Only use this approach if they are in a hurry and need assistance quickly

Greeting approach Greet the customer and welcome to the store Hello and welcome to Belks, please let me know if you need any help It lets customer know that you are there to help

Merchandise Approach When you make a comment or asks a question about the merchandise the customer is looking at Takes the emphasis off of you and the customer and puts it on the merchandise Is the most effective approach

Determining Customer’s Needs When? As soon as possible in the sales process.

Three methods to determine a customer’s needs Observing – facial expressions, hand motions, eye movements, length of time at product (nonverbal communication)

Listening You can get clues about customer’s needs and buying motives Maintain good eye contact Provide verbal and nonverbal feedback Listen with empathy and open mind

Questioning Uncover needs Uncover wants Uncover buying motives Learn more about customer

Questioning Who? What? When? Where? Why? How?

Product Presentation Which products? Products that meet customer’s needs and wants. Price range? Start with medium-priced item. How many? No more than three products at a time. What to say? Talk about products features and benefits.

Displaying and Handling the Product Creatively display Jewelry – velvet display pad Handle with respect

Demonstrate the product and using Sales Aids Show the customer how it works Drop an unbreakable dish on the floor Use Sales Aids – samples, reprints of magazine and newspaper articles, audiovisual aids, models, photographs, drawings, charts, etc.

Involve the customer!! Get them physically involved with the product Try it out Try it on Taste, smell, etc.

What are objections? Excuses? Objections are: concerns, hesitations, doubts, or other honest reasons not to buy product Excuses are: insincere reasons for not buying or not seeing the salesperson Too busy Just shopping around

Welcome objections. Why??? Can help you redefine the customer’s needs and determine when customer wants more information

Five most common buying objections: Need – I want it, but I don’t need it. Product – Concerns about quality, size, appearance, or style. Source – Negative previous experience with firm or brand

Five most common buying objection (continued): Price – More common with high- quality, expensive merchandise Time – Hesitation to buy immediately

Four-step process for handling objections: Listen Carefully Be attentive Maintain eye contact Let the customer talk Acknowledge customer’s objections Understand and care about them “I can see your point.”

Four-step process (continued) Restate the objection Paraphrase their objection to check for understanding of their concern Answer the objections Answer tactfully, keeping in mind customer’s feelings Use to further define or redefine customer’s needs

Methods of Handling Objections Yes, but – I understand your point, but….. Boomerang (Toss it back) – Objection comes back to customer as selling point Deny it – provide proof and accurate information to answer objection

Methods of handling objections (continued) Point counterpoint (superior point) – acknowledge objections as valid, but offset with other features and benefits Inquiry (Question) – Question to learn more about objections raised Show’em (demonstration) – Illustrating one or more features of a good or service

Methods (continued) Testimonial (third party) – using a previous customer who can give a testimonial about product Try it – Let them use for themselves to disprove their objection

Closing the sale The customer agreeing to buy the product Ways to know if ready: Observing their body language Things they say

Types of closes Which close: Have the customer choose between 2 or 3 items “Which item would you prefer?” Standing-room-only close: use when a product is in short supply or the price may go up “The price will be going back up this Friday.”

Types of closes Direct Close: You ask for the sale directly. “Would you like to go ahead and purchase this product today?” Service Close: Explain services that may overcome obstacles to buying Examples: Gift wrapping, return policy, guarantees, warranties

Suggestion selling Selling additional goods or services to the customer Benefits: customer by saving them time Benefits: company makes more in sales, makes customer happy

Suggestion selling methods Offering related merchandise – “would you like to buy some film or batteries to go with your new camera” Recommending larger quantities – “One pair of pantyhose costs $4 but you can buy 3 pairs for $10 which will save you money

Suggestion selling methods Calling attention to special sales opportunities – “ We are having a sale on all items in this department just today, you may want to look around to see if there is anything else you may want to buy before I ring you up.”

Follow-up after the sale (relationship marketing) Send a thank you note Call to check on the customer Send a survey or questionnaire

Benefits of building customer clientele You will have loyal customers coming back to you and they will refer their friends and family

Processing telephone orders Be friendly Repeat back order for verification and accuracy Follow-up to make sure received order in timely manner

Product substitutions When out of the current product When want a better quality than the product on sale When it is a similar value