SELLING & SALES UNIT

1. SELLING & SALES UNIT

2. Selling • Selling is the exchange of goods and services from producers to consumers for a price. • Businesses and sponsors might purchase incentives, media time, naming rights, pre-/post-game entertainment, signage, tickets (group or season), and products designed for the corporation's target market.

3. Selling Continued . . . • Sales of sponsored products should increase as a result of advertisement at an event. • Sponsors pay a rights fee for media time to a sports or entertainment organization for the opportunity to provide broadcasts.

4. Data-based marketing • Data-based marketing involves the collection or information about past, current, and potential consumers. • In marketing, a database is needed to generate leads or sources of new customers.

5. Data-based marketing continued . . • One common way to generate leads is through telemarketing. Telemarketing is communicating with customers via the telephone. • Ex: Wallet discount cards

6. Personal Selling • Personal selling is a two-way communication between a representative of the company and the customer. • Ex: A sales associate at the Detroit Pistons team store, The Palace Locker Room, selling an authentic team jersey to a fan.

7. Business to Business Selling • B2B selling takes place in a manufacturer’s or wholesaler’s showroom (inside sales) or a customer’s place of business (outside sales). • Ex: General Motors buying the raw materials from different suppliers, buying parts from suppliers.

8. Direct Mail • Direct mail is personal and received in the mailbox. • Used to initiate the sales process. • Ex: Colleges mailing informational packets to potential students.

9. Internet Selling • Internet Selling (www) is executed using the Internet. • Ex: A Monsters, Inc. fan purchasing the DVD, or a customer purchasing stuffed toys from www.disney.com

10. Selling and Full-Menu Marketing • Selling helps customers make informed buying decisions, which results in customer satisfaction and repeat business. • Full-menu marketing is having products or services that meet virtually any customer's needs and/or wants.

11. Feature-Benefit Selling • Involves matching the characteristics of a products to a customer’s needs and wants. EX: A company leases a suite at the Emmy Awards to host their preferred clientele. • Product features are the basic, physical, and extended characteristics of an item. Ex: Purchasing front row seats at the Emmy Awards

12. Feature-Benefit Selling • Customer benefits are the advantages or personal satisfaction a customer will get from a good or service. Ex: The benefit of being on the front row at the Emmy Awards results in better viewing of the awards and presentations. • Air pocket in shoes. Gives comfort to wearer.

13. Customer Buying Motives • Buying motives are the motives for purchasing a product. • Rational motives • Emotional motives • Patronage motives

14. Rational Motives • Based on conscious, logical thinking and decision making. • Product dependability, time or monetary savings, quality, and price are rational motives for buying or purchasing a products or service. • Ex: A mother purchases lawn sets for a Britney Spears concert instead of the more expensive stadium seats.

15. Emotional Motives • Based on feelings • Social approval, recognition, power, love, and prestige are emotional motives for buying or purchasing a product • Ex: A parent camping out overnight to get front row seats to the JayZ concert for her daughter’s 13th birthday.

16. Patronage Motives- • Based on loyalty • Low prices, high quality, friendly staff, great customer service, merchandise assortment, and/or convenience of location are patronage motives for buying or purchasing a product. • Ex: Alyssa only purchases her son’s cross country shoes at the Run for Your Life athletic shoe store because of their excellent customer services and close proximity to her home.

17. Please name three companies for each • Patronage • Emotional • Rational

18. Decision Making Process • Customers go through a decision-making process in order to determine what products they will buy.

19. Extensive Decision-Making • Occurs when there is a high level or perceived risk, a product or service is very expensive or has a high value to the customer. • A customer will conduct research and evaluate product alternatives before making a decision • Ex: The Detroit Lions equipment manager decides whether equipment should be purchased from All-star Athletics or Winners Incorporated.

20. Limited Decision Making • Occurs when a customer buys products that he or she has purchased before but not regularly. • Ex: The Michigan Little League Team decides whether to advertise in the local paper this season or continue with the same billboard as they had last year.

21. Routine Decision Making • Occurs when little info. is needed about the product being purchased • Ex: Mountainview High School baseball coach always purchases the teams chewing gum from the local wholesale store.

22. Activities that take Place During the Preapproach • Product information • Reviewing current trade periodicals • Sources and methods of prospecting

23. Product Information • Knowing how to use and care for a product is essential when educating consumers and demonstrating a product. • EX: Demonstrating to a customer the proper way to oil a baseball glove. • Four sources of product information are direct experience, written publications, other people, and formal training. • Ex: Debbi is a sales associate for Foot Locker. She attends an Adidas clinic on the proper way to fit children for shoes.

24. Reviewing Current Trade Periodicals • It is crucial to stay abreast of current trends and industry information. • The sales manager for the Detroit Tigers subscribes to Street & Smith’s Sports Business Journal

25. Sources and Methods of Prospecting • A prospect is a potential customer. • Ex. Employer leads, telephone directories, trade and professional directories, commercial lists, customer referrals and cold canvassing. • Ex. The Detroit Shock purchases the mailing list of the top 50 Fortune 500 companies

26. Recognize the steps of the selling process.

27. 1. Approach • The first encounter with a customer • The initial approach is critical. It should be positive, create a favorable impression, and create interest in the product.

28. Service Approach • Considered the least effective approach method. • Should only be used when customer is obviously in a hurry or when selling a service. “May I help you?”

29. Greeting Approach • Used to acknowledge customer’s presence and establish rapport • May include introduction of oneself • Can be combined with service or merchandise approach • Ex. “Good morning! Is it still raining outside?”

30. Merchandise Approach • Includes comments or questions about the merchandise the customer is looking at or handling • Considered the most effective approach • Ex. “The Detroit Red Wings jersey will not shrink when washed.”

31. Sales Approaches in SEM include: • Telemarketing • Direct mail • Personal selling

32. 2. Determine the Needs of Customers • Observe • Listen • Question

33. Observe • The nonverbal communication of the customers and how they express themselves through body language

34. Listen to Customers • Maintain good eye-contact • Provide verbal and non-verbal feedback • Give customers undivided attention • Listen with empathy and an open mind • Do not interrupt

35. Question Customers • Well-chosen questions can help uncover needs and buying motives while putting customers at ease • Begin with general questions and then progress into specific questions • Ask open-ended questions and then explain the benefits • Ex. “How often do you bring your family to AMC theater each year?”

36. 3. Product Presentations & Demonstration • Actively involve the customer • Show the product to the customer and tell him about its benefits (Called show and tell) • Never show more than three items at a time • When in doubt, show medium-priced items first

37. Make the Presentation Come Alive • Involve the customer by putting the product in the customers’ hand • Demonstrate how the product works • Ex. When a customer is purchasing season tickets, offer to show them where they will be sitting

38. 4. Overcome Objections • An objection is a reason, concern, or hesitation a customer has for not making a purchase • Ex. “I really want both the sweatshirt and short sleeve shirt, but I can’t afford both.”

39. Common Objections • May be spoken or unspoken • May be logical or psychological • May relate to the need, product, price, salesperson, source, store, or time • May occur at any point in the sale • Should be welcomed

40. To Handle Objections: • Listen • Acknowledge • Restate • Answer the objection

41. Methods for Handling Objections • Boomerang • Question • Superior Point • Denial • Demonstration • Third Party

42. Boomerang • The objection comes back to the customer as a selling point • Ex. If a customer states, “I can’t believe this concert ticket is so expensive.” The salesperson’s response might be,”I understand, but the view from those seats will be excellent.”

43. Question • The customer is questioned in an attempt to learn more about the objections raised • Ex. “Why don’t you want to buy running shoes, especially if you are starting to get more involved in 5k events?”

44. Superior Point • The salesperson acknowledges the objection as valid, but offsets them with other features and benefits • Ex. If a customer states, “I went to a Plymouth Whalers game last week and the tickets were $10 cheaper than the Red Wings tickets.” The salesperson’s response might be, “Yes, that would be correct, but last year the Detroit Red Wings were in the Stanley Cup Finals and the Whalers are not part of the National Hockey League.”

45. Denial • Provide proof and accurate information when answering objections • Best used when the customer has wrong information or when the objection is in the form of a question • Ex. If a customer states, “I really don’t want to pay a $150 joining fee in advance.” The salesperson’s response might be, “You don’t have to pay in advance, we can spread the joining fee over a six month period if you like.”

46. Demonstration • Answering objection by showing one or more features • “Seeing is believing”

47. Third Party • Uses a previous customer or another neutral person who can give a testimonial about the product • Can be verbal or non-verbal (letter) • Ex. “The Detroit Red Wings have always purchased their team equipment from us. As a matter of fact, let me show you a letter we just received from their equipment manager.”

48. 5. Closing the Sale • Obtaining a positive agreement from the customer to buy • Ex. “Would you like this gift wrapped?”

49. Customer Readiness in Closing • Buying signals • Facial expressions, body language, comments • Physical actions – nodding, reaching for wallet • Comments – “I really like it; it fits well.” • Questions – “Do you have another one for my son?” • Trial close • Used to get an indication of what needs to be done to close the sale • Ex. “Would you like to wear the shoes home?”

50. General Rules for Closing the Sale • If the customer is ready to make a buying decision, stop talking about the product • When a customer is having difficulty making a buying decision, stop showing additional merchandise • Summarize the major features and benefits of a product • Do not rush a customer into making a buying decision