Section 13.1Preliminary ActivitiesPage 296READING GUIDEBefore You Read

Consider Do you think everyone who buys an item has the same reasons for buying it? Why or why not?

Objectives

Explain how salespeople get ready to sell.

List sources of product information.

Explain feature-benefit selling and how it creates selling points.

Identify consumer buying motives.

List prospecting methods and explain how prospects are qualified.

The Main Idea

Getting ready to sell involves preliminary activities that help salespeople with the sales process, such aslearning about the product, industry, and customer, to develop effective selling points.

Vocabulary

Content Vocabulary

merchandising

feature-benefit selling

product features

physical features

extended product features

customer benefits

selling points

buying motives

rational motives

emotional motives

patronage motives

prospecting

Academic Vocabulary

shadowing

longevity

prospect

referrals

endless-chain method

cold canvassing

Graphic Organizer

Draw or print this outline of the preliminary activities associated with the sales process.

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Print this graphic organizer.

STANDARDSACADEMICEnglish Language Arts

NCTE 1 Read texts to acquire new information.

Social Studies

NCSS VII B Production, Distribution, and Consumption Analyze the role that supply and demand, prices,incentives, and profits play in determining what is produced in a competitive market system.

NCSS National Council for the Social Studies

NCTE National Council of Teachers of English

NCTM National Council of Teachers of Mathematics

NSES National Science Education Standards

Common Core Writing Conduct short as well as more sustained research projects based on focusedquestions, demonstrating understanding of the subject under investigation.

MARKETING CORE FUNCTION

Selling

Page 297GETTING READY TO SELL

To be successful in sales, salespeople do their homework. They gather information about their products,industry trends, and competition. In retail situations, salespeople also perform tasks involved withmerchandising.

As You Read

Connect Analyze your backpack or a piece of clothing you are wearing. Find information on or in theproduct that might be useful in developing a selling point for it.

PRODUCT KNOWLEDGE

PRODUCT KNOWLEDGE Salespeople must know their products so they can match them to customers'needs and wants. Product knowledge is essential when educating consumers and demonstrating a product. Itis easy to gain product knowledge if you know where to locate product information. Sources of productinformation include experience with the product, published materials, Web sites, and formal training.

EXPERIENCE

EXPERIENCEUsing a product is the best source of direct experience. Some businesses offer discounts totheir salespeople to encourage them to use their merchandise. You can also get experience with a product bystudying display models or visiting a manufacturing facility to see how it is made. Friends, relatives,coworkers, and customers can tell you about their experience with a product too.

PUBLISHED MATERIALS AND WEB SITES

PUBLISHED MATERIALS AND WEB SITESProduct information is found on Web sites and in publishedmaterials such as, labels, user manuals, manufacturer warranties and guarantees, catalogs, and promotionalmaterials. Manufacturers and suppliers provide additional information and training materials in many cases.Web sites of manufacturers, retailers, and wholesalers provide an opportunity to view and study products.

“Work associated with selling begins before a salesperson speaks with a client or a customer.”

TRAINING

TRAININGFormal training may be the best way to educate salespeople on certain products. Most industrialsalespeople receive product knowledge through training sessions. Some salespeople spend months attendingclasses and shadowing experienced salespeople before selling on their own.

In retail settings, training is likely to be less structured. Information might be shared informally to the salesstaff as new merchandise is received or selected for promotion. Some of the training materials may beprovided by the supplier.

INDUSTRY TRENDS AND COMPETITION

INDUSTRY TRENDS AND COMPETITION Salespeople read periodicals to keep up with competitors andtrends. Salespeople in the apparel industry read Women's Wear Daily, while those in the food industry readSupermarket News. All industries have trade publications related to their industry.

Standard & Poor's is a company that offers a trade reports by industry. It is available in college and publiclibraries and online.

Page 298

Effective and knowledgeable salespeople research their competition to be prepared when customers ask themto compare their product with competitors. A visit to a competitor's Web site can provide a wealth ofinformation about its products and policies. If a company does not have a Web site, salespeople can try tosecure a competitor's catalog and price list. They also might purchase a competitor's product and examine it.It is a good idea to prepare a SWOT analysis (strengths, weakness, opportunities, threats) when you gatherinformation on competitors to see how their products compare to your products.

MERCHANDISING

MERCHANDISING Merchandising involves coordination of sales and promotional plans with buying andpricing. You are already familiar with merchandising seen in fast-food establishments with special salespromotions. These restaurants give away small toys related to a current movie or popular character with thepurchase of a child's meal. Signs and a display of the toys are visible in the fast-food restaurant. All ordertakers are familiar with the promotion. The same effort is made in all retail operations and other businessesthat run promotions.

The right place, time, price, and quantity are considered when displaying products. These factors are essentialto effective merchandising.

Products being promoted are generally moved to a location in the retail store that is visible. When running asale or promotion, retailers must be sure that they have a sufficient quantity of products available. They willneed to arrange to restock products frequently. If supplies run out during a promotion, notonly will sales willbe lost, but customers will be unhappy.

Signs explaining the promotion should be visible throughout the store. Window and interior displays shouldbe updated as part of visual-merchandising activities. Price tags should be updated and computer systemsadjusted with the new promotional pricing. To ensure maximum return, store managers work closely with thesales staff to organize and coordinate these tasks in a timely manner. Getting all of these preparations done ontime will allow sales personnel to spend time with customers.

A Source of Product Information

Hang tags, packaging, and labels provide a wealth of information about the special features of a product andhow they function. it Why do manufacturers include so much information on hang tags and productpackaging?

Technically advanced yarns draw moisture away from the body

Keeps you cool and dry

Breathable

Pre-washed

SPF 40 protection

G-FRESH

Reading Check

Contrast How is training different in industrial selling and retail selling?

Page 299Industry Trends

Salespeople must learn all they can about trends, competition, andchanges occurring in their field. What do you observe about people onthe street and at your school that would help you sell a new fashiontrend?

FEATURE-BENEFIT SELLING

Matching the characteristics of a product to a customer's needs and wants is a concept called feature-benefitselling.This concept is the basis for developing the selling points used in the sales presentation. Why?Because many people believe that customers do not buy products; rather, they buy what the products will dofor them. Consumers purchase leather shoes for their appearance, easy care, comfort, and longevity. Theypurchase computers for increased productivity. People buy insurance for emotional and financial security.

Salespeople work on constructing selling points for their product by using the feature-benefit selling concept.All the information researched on their product, industry trends, and competition is used to develop theselling points. An understanding of the customer's buying motives helps to establish the right priority for theselling points to include in the sales presentation. Let's take a closer look at how feature-benefit sellingcreates effective selling points and advantages over the competition.

PRODUCT FEATURES

PRODUCT FEATURES The first step in preparing selling points is to study a company's products and salespolicies. They are the foundation for building effective selling points. Product features are basic, physical, orextended attributes of the product or purchase.

Feature-Benefit Selling Regardless of what you are selling, your main selling point should be the greatestbenefit to the customer.

BASIC FEATURE

BASIC FEATUREThe most basic feature of a product is its intended use. A person buys an automobile fortransportation and buys a watch to tell time. Basic product features are apparent and, therefore, generallyaccepted without question. So, salespeople do not have to spend time explaining basic product features unlessthe product is new and unusual. For example, an inventor of a new product would have to explain how to usethe invention. The very first automobile was in this category. New technologies today fit in this category aswell. When a product is new, explaining why customers would need such a product requires educating themabout its intended use.

Page 300Identifying Product Features and Benefits

The information in this product insert visually identifies the product features and some of their correspondingbenefits for FL-AIR 4 suitcases. What are two extended product features that you would need to know inorder to sell this product effectively?

Page 301PHYSICAL FEATURES

PHYSICAL FEATURESPhysical features of a product are tangible attributes that help explain how a productis constructed. For a jacket, its physical attributes are the fabrics used for the outer shell and insulation, aswell as the type of collar, pockets, closure (buttons, snaps, or zipper), and sleeve design. How the seams arefinished off and the garment's sizes are also physical attributes.

EXTENDED PRODUCT FEATURES

EXTENDED PRODUCT FEATURESExtended product features are intangible attributes related to the sale ofa product that customers find important. For example, customers might consider the reputation of a companyor brand name of a product to be an extended feature. This may be true because there is reduced risk in doingbusiness with a well-established company and brand. Significant company policies include warranties,guarantees, extended service contracts, financing, and customer service availability. Promotional supportprovided by a supplier to help sell a product is an extended feature found in organization sales situations. Theprice of a product is an extended product feature, which may be one of its most important features.

CUSTOMER BENEFITS

CUSTOMER BENEFITS Customer benefits are the advantages or personal satisfaction a customer will getfrom a good or service. It is a salesperson's job to analyze product features from the customer's point of view.The first step in this analysis is to view the product feature in terms of how it functions. For example, airpockets in the heel of a running shoe (product feature) cushion the impact on pavement (function).Translating that information into a personal consumer benefit requires knowing what the customer values. Inthe case of the running shoe, the air pockets (feature), which cushions the impact on pavement (function),give the wearer more comfort when running or walking and help to protect the foot from injury (benefits).

SELLING POINTS

SELLING POINTS A selling point is created by noting the function of a product feature and explaining howit benefits a customer. Selling points are the result of the product analysis used in feature-benefit selling. If

you review a well-designed catalog or Web site, you will see selling points in print. When communicatingwith customers in person, selling points form the foundation for the sales presentation. It is a good idea topractice writing selling points as selling sentences.

The GREEN Marketer

Understanding the Green Consumer

Green consumers are not all the same. With a variety of demographics, they represent all age brackets,income levels, and ethnic backgrounds. They are motivated to make purchases according to different wantsand needs. Some are concerned about health; others about the environment, fair trade, or their kids' well-being; and still others about saving energy to save money.

Shades of Green Green consumers also come in different shades, from “deep greens,” consumers whoalways put the environment first, to “light greens,” who pick green options only when they are convenientand budget-friendly. Marketers must be aware of these shades of green and all of the ones in between if theywant to be successful.

English Language Arts

Create Browse a supermarket for a food or cleaning product that is environmentally friendly. Write 50 wordsfor an in-store display that will appeal to as many green consumer needs and segments as possible.

NCTE 5 Use different writing process elements to communicate effectively.

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Get an activity on green marketing.

Page 302

Here are a few examples of effective selling points that may be used in retail and organizational salessituations.

Retail sales situation

— Customer: man or woman looking for jeans

— Product: a pair of jeans

— Selling point: The soft cotton denim fabric has 1 percent spandex (feature), which allows thejeans to stretch (function) and makes them comfortable to wear (benefits).

Organizational sales situation

— Customer: operations manager for an ice cream manufacturer

— Product: insulated jacket

— Selling point: The insulation in this garment (feature) is effective in cold temperatures(function), so it will protect your workers and allow them to perform at maximum efficiencywhile working in the freezer (benefits).

ADVANTAGES

ADVANTAGES In feature-benefit selling, salespeople also must consider their competition. Let's say yourcompetitor uses inferior fabrics. Your garment uses better fabric. The advantage in this case can be used as amajor benefit. Your higher-quality garment will last longer than your competitor's product. All advantagesover your competition become selling points for your product.

CUSTOMER BUYING MOTIVES

CUSTOMER BUYING MOTIVES To determine effective customer benefits for product features, it is agood idea to learn what motivates customers to buy. Buying motives are reasons a customer buys a product.As such, they influence buying behavior and buying decisions. Understanding customer motivation is not aneasy task. Customers are not always aware of their inner motivations. Even when they are, they may notcommunicate them to you. As you gain experience in sales, you will get a better feel for reading customers'motives, which can be classified as rational, emotional, or patronage. To make the salesperson's task evenmore difficult, these motives may be combined or different for the same product. The difficulty depends onthe customer and the sales situation.

RATIONAL MOTIVES

RATIONAL MOTIVESRational motives are conscious, logical reasons for a purchase. Rational motivesinclude product dependability, time or monetary savings, product quality, and good customer service.Customers are often interested in products because of rational motives. For example, customers may say theyare looking for a dependable automobile with a history of excellent customer service.

EMOTIONAL MOTIVES

EMOTIONAL MOTIVESEmotional motives are feelings experienced by a customer through associationwith a product. Emotional motives are feelings such as social approval, fear, power, love, and prestige. Socialapproval may be one of the reasons that customers buy certain brands of cars, clothing, or accessories.Customers are generally reluctant to share their emotional motives for making a purchase. You may have totactfully incorporate emotional motives into a sales presentation. Life insurance is a product that evokesemotions.

PATRONAGE MOTIVES

PATRONAGE MOTIVESPatronage motives are reasons for remaining a loyal customer of a company.Currently satisfied customers possess patronage motives. Trust and confidence have been established throughpast experiences. Patronage motives make it easy to sell a company's products.

MULTIPLE MOTIVES

MULTIPLE MOTIVESMost buying decisions involve a combination of motives. For example, people buycar tires for dependability (rational motive) and fear because they care about the safety of loved ones(emotional motive). Two customers could have different motivations for buying the same product. Oneperson may buy shoes for comfort (rational motive), while another may buy the same shoes to make a fashionstatement (emotional motive).

Reading Check

Recall What are three ways by which product features can be identified?

Page 303PROSPECTING

Looking for new customers is called prospecting. A prospect, or a sales lead, is a potential customer.

A potential customer may be a business or an individual. For example, a manufacturer of golf accessorieswould consider a newly opened retail golf shop as a prospect or sales lead. The person responsible for doingthe buying for that store's golf accessories would also be considered a prospect or lead.

Prospecting is especially important in organizational selling situations. Service-related businesses andretailers search for new business opportunities by prospecting too. Any salesperson or business that wants toexpand a customer base might use some of the following prospecting techniques.

PROSPECTING TECHNIQUES

PROSPECTING TECHNIQUES There are several techniques and practices employed by salespeople andbusinesses to generate sales leads. They include customer referrals, cold canvassing, and employer-generatedleads.

CUSTOMER REFERRALS

CUSTOMER REFERRALSSatisfied customers are excellent sources for finding new customers. Salesrepresentatives ask their customers for referrals—the names of other people who might buy the product.Referrals open the market to potential customers whom a salesperson might not have reached without arecommendation. When salespeople ask previous customers for names of potential customers, they are usingthe endless chain method. The endless chain method helps companies construct and maintain a list ofprospects. Some companies offer discounts or gifts to customers who give referrals.

MARKETING CASE STUDYOlympus: Selling Medical Technology

Olympus is known for making digital cameras for consumers. It also produces medical cameras for doctorsthat integrate high-definition television (HDTV) signals for improved image quality. The tiny camera at theend of a flexible scope can move around in the body, allowing a doctor to see from many angles. This deviceassists surgeons performing “laparoendoscopic single-site surgery,” a less risky operation using a very smallincision to remove a damaged organ or a tumor.

Competing Advantages

Competing Advantages Olympus was first to introduce HDTV in its “videoscopes.” Another competitor is

Stryker, a company that also sells artificial hips and knees. HDTV medical cameras cost more than non-HDTV cameras. Competitors selling non-HDTV cameras can use price as a selling point. In addition,hospitals must upgrade their monitors and other devices to accommodate HDTV technology, which can becostly.

English Language Arts

Research Conduct research on competing medical video cameras. Write a selling point for an OlympusHDTV medical camera, noting the feature, function, and benefit.

NCTE 7 Conduct research and gather, evaluate, and synthesize data to communicate discoveries.

Page 304COLD CANVASSING

COLD CANVASSINGCold canvassing is a process of locating as many potential customers as possiblewithout checking leads beforehand. Cold canvassing is also sometimes called “blind prospecting” because itis a hit-and-miss method. One example is a real estate agent going door-to-door in a neighborhood, askingpeople if they would like to sell their homes. Another example of cold canvassing is a stockbroker selectingnames from a telephone book at random and calling them. Insurance salespeople look through newspapers forbirth announcements, while caterers and florists may check out engagement announcements. Use of tradedirectories, such as the Thomas Register of American Manufacturers, can be useful for organizational salesrepresentatives. In addition, commercial lists of prospects can be purchased and used for cold canvassing. AnInternet search engine can provide a huge selection of sales-lead companies that specialize in differentindustries.

EMPLOYER SALES LEADS

EMPLOYER SALES LEADSSome firms employ entire telemarketing teams to generate leads for their salesstaffs. They also attend trade shows, where they display products for review by buyers in the industry.Interested buyers provide information for follow-up. Leads are categorized by territory and passed along tothe sales staff. In some cases, customer service representatives may qualify, or evaluate, the leads for theprofessional sales staff. They do this by calling the prospects to see if they meet certain qualifications. Leadscan be generated and qualified by using the Internet and the Web site of a prospective corporate customer.

QUALIFYING PROSPECTS

QUALIFYING PROSPECTS Once sales leads are generated, they need to be qualified before any saleseffort is made. There are three important questions to ask in order to properly evaluate a sales lead. Thefollowing questions will help determine whether a prospect meets the qualifications for a sales call:

Does the prospective customer (an individual, company, or organization) need the product or service?

If the prospect is a company or an organization, who is authorized to make a purchase? Does thesalesperson have an appointment with a person who has that authority?

Does the prospective customer have the financial resources to pay for the product or service?

finding new customers

Salespeople can use the process of cold canvassing get help generatingleads by going door-to-door. What other prospecting techniques

might a real-estate agent use to generate leads?

Page 305ANSWERS TO QUESTIONS

ANSWERS TO QUESTIONSTo find answers to these “three basic questions to evaluate a sales lead, ”company customer-service representatives or salespeople have to make inquiries and do some backgroundresearch. In some cases, a simple phone call may be all that is necessary to determine whether a lead needs aparticular product.

For example, a manufacturer of work uniforms specializes in clothing designed to be worn by workers whospend time in cold environments. The apparel company's salespeople may ask leads whether they have anyemployees who work outdoors in the winter. They may also ask leads whether they employ people who workin refrigerated warehouses or freezer boxes. If the answer to these questions is “no,” the lead should beconsidered a dead end. If a lead answers “yes,” then it might be a potential customer.

The next questions might be: “How many employees work in those cold environments?” and “Who in thecompany is responsible for purchasing employees' work clothing?” The answers to these questions can revealhow much apparel the prospect might need and give the salesperson the name of a person to contact.

Additional research is necessary to determine whether the potential customer has the ability to pay its bills.Sales representatives can read the company's annual reports or subscribe to the database listings of a firm likeDun & Bradstreet®, which monitors businesses' financial situations. If a company has a need for the productand has a good credit rating, it would be a qualified prospect.

The research done during prospecting can become the basis of a strong sales presentation when meeting aqualified prospect face-to-face.

After You Read Section 13.1Review Key Concepts

1. List three things that salespeople do to get ready to sell.

2. Explain how a customer might use a combination of rational, emotional, and patronage buying motiveswhen purchasing a hybrid automobile.

3. Identify three prospecting techniques.

Practice AcademicsEnglish Language Arts

4. Write a selling sentence for a smartphone feature by incorporating and identifying in parenthesis thefeature, function, and consumer benefit.

Mathematics

5. You own a men's clothing store. A sign in your store advertises three shirts for $30.39. Not countingsales tax on clothing, how much would you charge a customer who needs only two shirts?

Estimation Estimating before you begin calculating can help you make sure you havecalculated properly.

Starting Hints To solve this problem, divide the sale price of three shirts by three to determine howmuch each shirt costs. Multiply the cost of one shirt by two to determine the price of two shirts.

For help, go to the Math Skills Handbook located at the back of this book.

NCTE 4 Use written language to communicate effectively.

NCTM Number and Operations Compute fluently and make reasonable estimates.

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Check your answers.