Preparing for the Sale

Preparing for the Sale
Ch. 12 ME

Section 12.1 What is Selling?

Selling Personal Selling – is any form of direct contact between a sales person and a customer Key Factor: two-way communication between the seller and the buyer Retail Selling – is when customers come to the store Business-to-Business Selling – may take the place in a manufacturer’s or wholesaler’s showroom or a customer's place Telemarketing – process of selling over the phone

Consultative Selling Consultative Selling – is providing solutions to customers’ problems by finding products that meet their needs

Feature-Benefit Selling Feature-Benefit Selling - matching the characteristics of a product to a customer’s needs and wants Product Features – basic, physical, or extended attributes of the product or purchase Customer Benefits – are the advantages or personal satisfaction a customer will get from a good or service

Customer Buying Motives Rationale Motive – is a conscious, logical reason for a purchase Include product dependability time or monetary savings, health or safety considerations, service, and quality Emotional Motive – is a feeling experienced by a customer through association with a product Includes social approval, recognition, power, love or prestige

Customer Decision Making Extensive Decision Making – is used when there has been little or no previous experience with an item Limited Decision Making – is used when a person buys goods and services that he or she has purchased before but not regularly Routine Decision Making – is used when a person needs little information about a product

Section 12.2 Getting Ready to Sell

The Pre-Approach Pre-Approach – is the preparation for the face-to-face encounter with potential customers

Product Information & Industry Trends Four Main Sources for Product Information: Direct experience Written publications Other people Formal training Sales representatives read periodicals related to their trade to gain insight into the industry.

Prospecting Prospect (lead)- is a potential customer Examples of Prospecting Employer Leads Directories Newspapers Commercial Lists Customer Referrals Referrals – the names of other people who might buy the product Endless Chain Method – when salespeople ask previous customers for names of potential customers Cold Canvassing (Blind Prospecting) – potential customers are selected at random

Preparing for the Sale Pre-approach activities vary depending on whether the sales call is with a previous customer or a new prospect Retail sales associates are often responsible for merchandising, stock keeping, and housekeeping

Company Policies & Training Training A four-step process: explanation, demonstration, trial and critique Compensation and Sales Quota Sales people are compensated by: Straight commission – paid only when sold something Straight salary – get paid a set amount, no matter how much they sell Salary plus commission – set salary and lower commission rate Sales Quota – are dollar or unit sales goals set for the sales staff to achieve in a specified period of time Legal and Ethical Issues Sales order is a legal binding contract between buyer and seller

Preparing for the Sale