SellingMARKETING I:

STRAND 8

Any form of direct contact occurring between a salesperson and a customer; two way communication

Retail Selling

Business-to-business Selling

Telemarketing

PERSONAL SELLING

Customer comes to you

Other forms of promotion help

Advertising

Displays

Salesperson is there to answer questions

RETAIL SELLING

Inside Sales

A manufacturer or wholesaler invites a client into their showroom

Outside Sales

The sales rep goes to a customer’s place of business; either by appointment or a “cold call”

BUSINESS-TO-BUSINESS SELLING

The process of selling over the phone

Either for the B2C or B2B

TELEMARKETING

GOAL OF SELLING

Help customers make satisfying buying decisions, which create ongoing, prof itable relationships between buyer and seller.

Solve customers’ problems by understanding their needs and wants.

Matching a product’s characteristics with the customer’s needs and wants

People buy products for what it can do for them

A salesperson needs to learn how a products features will benefit the customer

FEATURE-BENEFIT SELLING

Basic, physical, or extended attributes of a product

Examples:

Basic: intended use

An automobile for transportation

Physical: things that differentiate the product

For a car: price, color, automatic, air bags, antilock brakes

Extended attributes: add value and help justify price

For a car warranty, service policy, available financing

PRODUCT FEATURES

Advantages or personal satisfaction a customer will get from a good or service

How does the feature help the product’s performance?

Ex: Air pockets in the heel of a running shoe cushion the impact on pavement

How does the performance information give the customer a reason to buy?

Ex: The air pocket gives the wearer more comfort also helps prevent injury

CUSTOMER BENEFITS

What was the last product you personal purchased?

Why did you buy it?

We all have a motive behind our purchases

GROUP DISCUSSION

A conscious, logical reason for a purchase

Examples: Safety or security

Time or monetary savings

Utility or versatility

Durability or quality

Convenience

RATIONAL MOTIVE

Feelings experienced by a customer through association with a product

Examples:

Pride or prestige

Emulation or imitation

Power or ambition

Love or affection

Comfort or pleasure

Hunger or thirst

EMOTIONAL MOTIVE

Prompt a buyer to buy the product from a particular shop in preference to other shops.

Emotional: Appearance of the shop Attractive displays Recommendation of others Imitation Prestige Habit

Rational: Convenience Low price Credit offered Services offered Efficiency of employees Treatment

PATRONAGE MOTIVE

Sales people get ready for the sale by:

Studying their products

Written publications: user manuals, catalogs, etc.

Testimonials: friends, coworkers, supervisors, etc.

Formal training

Keeping aware of industry trends

Found in periodicals or trade journals

Researching potential customers

More important in business-to-business selling

THE PREAPPROACH

PREPARING FOR THE SALE IN B2B SELLING

The preapproach activities vary depending on whether the

sales call is with a previous customer or a new prospect

Research to determine the customer’s needs

Set an appointment for a face-to-face meeting

Straightening, rearranging, and replenishing stock

Adjusting price tickets for sales

Learning where stock is located and how much is available

Taking inventory

Arranging displays

Keeping the selling area neat and clean

PREPARING FOR THE RETAIL SALE

STEPS OF THE SALE

Approaching the customer

Determining needs

Presenting the product

Overcoming objectives

Closing the sale

Suggestion Selling

Relationship building

STEP #1 APPROACHING THE CUSTOMER

The f irst face-to-face contact with a customer

Purposes: To begin conversation

To establish a relationship

To focus on merchandise

What do most salespeople say to you when you initially enter the store?

What is usually your response?

RETAIL SELLING APPROACH

Three methodsService Approach: the customer is asked if he/she needs

assistance “How may I help you?” Usually used if customer appears to be in a hurry

Greeting Approach: the salesperson simply welcomes the customer to the store “Good morning” or “Welcome” Doesn’t focus on merchandise but usually positive

Merchandise Approach: the salesperson comments on merchandise that the customer has shown some interest in Give merchandise characteristics: color, sizes, materials,

popularity, etc. Ex: “That shirt is made of a cotton and polyester blend, so it’s machine washable”, “Are

you interested in a specific color?”

STEP #2DETERMINING NEEDS

A salesperson’s focus should be to determine the customer’s needs as EARLY in the sales process as possible

Three methods: Observing: looking for nonverbal buying

motives Facial expressions, hand motions, eye

movement, how long holding/looking at a product

Listening: Helps you pick up clues to customers needs Give customers your full attention, do not

interrupt, maintain good eye contact

Questioning: helps to get the customer taking Intended use, previous experience, who, what,

when, how, and why

DO’S AND DON’TS OF QUESTIONING

Do ask open-ended questions

Do ask clarifying questions

Don’t ask too many questions

Don’t ask questions that might embarrass customers

STEP #3PRESENTING THE PRODUCT

This is where you “Show and Tell”

Make the presentation come alive Creatively display and handle the

product Ex: Diamonds on black velvet,

hold crystal up to the light

Demonstrating Used for items that require

operation Ex. Television, copier

Used to prove selling points Ex. Dumping water on water resistant

fabric

Using selling aids Ex: Samples, models,

photographs, charts, etc.

Involve the customer

STEP #4OVERCOMING OBJECTIONS

Objections vs. Excuses

Excuses: insincere reasons for not buying Ex: We don’t need any, I’m just looking

Objections: concerns, hesitations, doubts,

or other reasons a customer has for not purchasing Ex: These shoes don’t f it right

Common Objections Need: the customer does not have an immediate need for the item

Ex: “I really like this sweater, but I already bought two.”

Product: concerns about construction, quality, color, size, or style Ex: “I don’t like the way this jacket fits me.”

Source: negative past experiences with store or brand Ex: “Last time I put something on layaway you couldn’t f ind it for a week.”

Price: more common on high priced items Ex: “That’s more than I wanted to spend.”

Time: a hesitation to buy immediately Ex: “I think I will wait until July during your summer sale to buy these

sandals.”

PROCESS FOR HANDLING OBJECTIONS

1. Listen carefully • It demonstrates sincere concern

2. Acknowledge the customer’s objection

• Shows you understand• Ex: “I can see your point.”

3. Restate the objections• Be sure you understand• Also known as “paraphrasing”• Ex: “I can understand your

concerns. You feel that … Am I correct?”

4. Answer the objections• Use tact, not with an air of

superiority

SPECIALIZED METHODS FOR OBJECTIONS

Boomerang: the objection comes back to the customer as a selling pointCustomer: “This jacket is so lightweight. It can’t

possibly keep me warm.”Salesperson: “The jacket is so light because of an

insulation material called Thinsulate.”

Question: questioning the customer in order to learn more about the objectionCustomer: “I don’t see the point of having two

sinks in our master bathroom.”Salesperson: “Do you and your husband ever need

to get ready at the same time?”

SPECIALIZED METHODS FOR OBJECTIONS

Superior Point: the objection is accepted as valid yet still offset them with other features and benefits Customer: “Your prices are higher than the prices of your

competitors.”

Salesperson: “That’s true. Our prices are slightly higher, but with good reason. We use better quality nylon in our garments.”

Denial: when a salesperson corrects the misinformation a customer has Customer: “This shirt will shrink!”

Salesperson: “No, it won’t shrink because the fabric is made of 50 percent cotton and 50 percent polyester.”

SPECIALIZED METHODS FOR OBJECTIONS

Demonstration: seeing is believing Customer: I can’t believe that food won’t stick to the

bottom of the pan without using butter.”

Salesperson: “I’m glad you brought that up. Let me demonstrate how the Tef lon coating lets you cook without fats or butter.

Third Party: salesperson gives a testimony of a previously satisfied customer Customer: “I can’t see how this machine can save me

$1,000 in operating costs the first year.”

Salesperson: “Frank Smith, one of my customers, questioned the same point when he bought his machine last year. He now praises its efficiency, and his costs have gone down $1,200.

STEP #5CLOSING THE SALE

General Rules for closing: Recognize closing opportunities Buying signals: expressions or body

language that indicates a readiness to buy Ex: A jacket draped over someone arm

Help customers make a decision Narrow down the merchandise to one

or two items

Create an ownership mentality Use “you” statements

Don’t talk too much or don’t rush a customer

Be enthusiastic, sincere and confident

Constantly practice closing techniques

SPECIALIZED METHODS FOR CLOSING

Which Close

Review benefits of each item and ask…..

Ex: “Which one do you prefer?”

Standing-Room-Only Close

When a product is in short supply or when price will be going up

Ex: “I’m sorry, but I can’t promise that I’ll be able to make that offer later.”

SPECIALIZED METHODS FOR CLOSING

Direct Close

When buying signals are very strong

Ex: “Can I ring you up?”

Service Close

Explain services that overcome obstacles

Ex: explaining the stores return policy when the customer is hesitant

STEP #6SUGGESTION SELLING

Selling additional goods or services to the customer

Ex: “Would you like fries with that?”

Benefits

Salesperson: the customer will want to do business with you again

Customer: is more pleased with the purchase

Company: additional profits

SUGGESTION SELLING

Rules:

Do suggestion selling after the customer has made a commitment to buy, but before payment is made

Give at least one reason for the suggestion

Make the suggestion def inite

Show the item you are suggesting

Make the suggestion positive

Methods:

Offering Related Merchandise

Recommending Larger Quantities

Calling Attention to Special Sales Opportunities

RELATIONSHIP MARKETING

After the sale activities that develop customer relationships

Order processing

Order fulfillment

Follow-up

Customer service

Client file