Selling Satisfies Customers

1. Selling Satisfies Customers Chapter 17 Marketing, 3rd Edition

2. The Elements of the Marketing Mix • Product • Price • Place • Promotion Where does Personal Selling fit in the Marketing Mix?

3. Personal Selling • Direct, personal communications with prospective customers in order to assess needs and satisfy those needs with appropriate products and services • The salesperson is the link between the customer and the business. • Personal selling is helping customers make wise and satisfying buying decisions. • Personal selling should create an on-going profitable relationship with the customer. Never sell a product to a customer if that product will not meet their needs.

4. When to Use Personal Selling Advantages • Information • Time • Flexibility • Feedback • Persuasion • Follow-up Disadvantages • Cost per customer • Time • Control • Skill A sales presentation can provide more information than an advertisement!

5. Choosing Personal Selling • Personal selling is best used when the product is complex or expensive • When the market for the product is made up of a few large customers • When new or very unique products exist with which customers are unfamiliar • When customers are located in a limited geographic area • When a complicated or long decision-making process will be needed • When you have customers who expect personal attention and help with decision making

6. Personal Sales Management • Self-management – salespeople have the qualities of good managers. Selling requires motivation and effective use of time. Most of the salesperson’s time is spent on non-selling duties. Salespeople must be emotionally and physically healthy. They must be well educated and informed about their product or industry. • Customer management – some customers will require more time than others. Salespeople must carefully schedule their time with customers. • Information management – salespeople must be able to identify needed information and develop effective record keeping systems.

7. Prospecting for Customers • A prospect, or a lead, is a potential customer. There are seven main methods for developing prospects: • Employer leads • Telephone directories • Trade & professional directories • Newspapers • Commercial lists • Customer referrals • Cold calling or cold canvassing

8. Understanding Customers • Identifying customers – a great deal of time can be wasted if the salesperson is talking to people who are uninterested or unable to buy the company’s product. • Cold Calling – contacting prospective customers without knowing a great deal about the person contacted. This is difficult and discouraging and should not be done by marketing oriented businesses. • Qualifying prospective customers – qualifying involves gathering information to determine if a person is likely to buy. To be a qualified buyer the prospect should have a need for the product, the resources to purchase the product, and the authority to make the purchase decision. • Understanding customer decisions – a salesperson should understand AIDCA.

9. Mental Stages of Consumer Decision-Making • AIDCA • Attention • Interest • Desire • Conviction • Action

10. Understanding the Product • Productknowledge – the salesperson must know all there is to know about the product they are selling. • Informationsources – product manuals, trade shows, advertisements, other salespeople, company training programs, sales aids, direct experience with the product, and other business publications. • Communicating product information • Feature – a description of a product characteristic. It’s basic, physical or extended attributes. • Benefit – the advantage provided to a customer as a result of the feature. The personal satisfaction a customer will get from a good or service. • Remember … customers buy benefits not features! Frameworks 8.5

11. Understanding the Competition • Salespeople need to understand the differences between their product and the competition’s product. • Salespeople need to explain the differences to help customers make the comparison. • The salesperson should carefully and accurately compare the advantages and disadvantages of competitors products.

12. Video • Online Real Estate Sales

13. The Steps of the Selling Process • Approach • Determine needs • Demonstrate or Present • Answer questions and objections • Close • Suggestion selling • Follow-up Frameworks 8.4

14. Approach • The first contact between the customer and the salesperson. • An effective approach allows the salesperson to contact customers, gain their attention and interest, and create a favorable first impression. • Common approach techniques: • The service approach -the salesperson asks the customer if he or she needs assistance. This method is acceptable when the customer is obviously in a hurry or if you are an order taker for routine purchases. • The greeting approach - the salesperson simply welcomes the customer to the store. This lets the customer know that the salesperson is available for any questions or assistance. • The merchandise approach - the salesperson makes a comment or asks questions about a product in which the customer shows interest. This method can only be used if a customer stops to look at a specific item. Frameworks 8.4

15. Determine Needs • Gather information to determine customers’ needs and how they can be met. • In the preapproach the salesperson will prepare for sales presentation. Be sure you have everything you need! Including your pencil! This also involves gathering information about the customer and studying target market information. • What are the three methods that will help the salesperson determine customer needs? • Question • Listen • Observe Frameworks 8.4

16. Determine Needs - Questioning Questioning – get the customer talking. • Ask open-ended questions—questions that require more than a yes or no answer. • Ask clarifying questions to make sure you understand customers' needs. • Don't ask too many questions in a row. • Don't ask questions that might embarrass customers or put them on the defensive. Frameworks 8.4

17. Determine Needs - Listening • Listening helps you pick up clues to the customer's needs. • Remember these five important listening skills when talking to your customers: • Maintain good eye contact. • Provide verbal and nonverbal feed back. • Give the customer your undivided attention. • Listen with empathy and an open mind. • Do not interrupt. Frameworks 8.4

18. Determine Needs - Observing • When you observe a customer, you should look for buying motives that are communicated nonverbally. • Nonverbal communication is expressing yourself through body language such as facial expressions, hand motions, and eye movement. • In B2B selling, nonverbal communication can include the personal belongings in a buyer's office.

19. Demonstrate • A personalized presentation of the features of the product in a way that emphasizes the benefits and value to the customer. • Creatively displaying the product is the first step in an eye-catching presentation. • The way you handle a product presents an image of its quality. Handle it with care and respect. • When it is impractical to demonstrate the actual product or when you want to emphasize certain selling points, you can use sales aids such as samples, audiovisual aids, models, photographs, or drawings. • Get the customer physically involved with the product demonstration as soon as possible in the sales presentation. Frameworks 8.4

20. Demonstrate

21. Demonstrate Frameworks 8.4

22. Answer Questions and Objections • Overcome objections and ensure the marketing mix meets the customers’ needs. • Objections are concerns, hesitations, doubts, or other honest reasons a customer has for not making a purchase. Objections give you an opportunity to present more information to the customer. • What is the most common objection in selling? ____________. • Excuses are insincere reasons for not buying or not seeing the salesperson. PRICE! Frameworks 8.4

23. Answer Questions and Objections • Successful salespeople have learned to use a very basic, four-step strategy when answering all objections: • Listen carefully • Acknowledge the customer’s objections • Restate the objection – paraphrase. • Answer the objection. Frameworks 8.4

24. Techniques for Handling Objections • Superior Point Admit disadvantages in certain products but then present superior points to offset or compensate for them. This technique puts the customer in a position to decide between the different features and see additional reasons for buying. • Denial When a customer's objection is based on misinformation, provide proof and accurate information to answer the objection. • Demonstration Demonstrate a product's features to answer an objection (but make sure it works before attempting it in a sales demonstration). • Third Party Use a testimonial from a previous customer or another neutral person. • Boomerang Use a friendly, helpful tone to explain how the objection is really a selling point. Frameworks 8.4

25. Close • Obtaining a decision to purchase • Closing the sale is obtaining positive agreement from the customer to buy. • Close the sale when your customer is ready to buy. Some customers are ready to buy sooner than others, be flexible. • Look for buying signals, the things a customer doesthat indicate a readiness to buy, such as facial expressions, actions, and comments. • A trial close is an initial effort to close a sale. • Attempt a trial close to test the readiness of the customer and your interpretation of a positive buying signal. Frameworks 8.4

26. Closing Techniques • Which or Choice Close Encourage a customer to make a decision between two items. • Standing-Room-Only close (SRO) Use this when a product is in short supply or when the price will be going up in the near future. Should only be used when it is TRUE. • Direct Close Ask for the sale with non-threatening questions or statements that get the customer ready for the close. • Service Close Explain services that overcome obstacles or problems: gift-wrapping, a return policy, special sales arrangements, warranties and guarantees, bonuses or premiums, and credit or payment terms. Frameworks 8.4

27. Suggestion Selling • Suggest other products customers may see as valuable. • Offering additional products or services after an initial sale in order to increase customer satisfaction. • Suggestion selling should be attempted after the customer has made a commitment to buy, but before payment is made or the order written. • Offering related merchandise can increase the use or enjoyment of the customer’s original purchase. • Recommending larger quantities usually works in retail settings when selling inexpensive items or when money, time, and/or convenience will be saved. Frameworks 8.4

28. Follow-up • Continued contact to ensure satisfaction, determine other needs, and build relationships. • Making contact with the customer after the sale to ensure satisfaction. • Relationship marketing involves the strategies businesses use to stay close to their customers. Think of after-sale activities as part of an ongoing dialogue with customers in preparation for future sales. • Example:Harley Davidson’s club for motorcycle owners offers insurance and travel assistance. Frameworks 8.4

29. Following Up After The Sale Chapter 17

30. Following Up and Asking for Referrals Chapter 17

31. Before The Customer Leaves • Before the customer departs or before you leave your client's office you should: • Reassure the person of their wise buying choices. • Take the time to educate your customer about any special care or specific instructions for their purchase. • Tell them when to expect delivery, if applicable. • Thank the customer, even if they don’t buy.

32. Providing Sales Support • For selling to be effective, the salesperson must receive support from many parts of the business. • Marketing-information management – salespeople need information about customers and products. • Financing – some customers need financing. • Pricing – are prices negotiable? Who has authority? • Promotion – salespeople need this information. • Product/service management – salespeople can provide feedback about customer needs. • Distribution – reliable delivery must be available for customers. Salespeople must have information on delivery schedules and costs when they work with customers.

33. Video – Fraud in Selling

34. Test Time!