Determine Customer Needs & Overcoming Objections Marketing 2.09

Determine Customer Needs&

Overcoming Objections

Marketing 2.09

Sales Process

• Preapproach– Prepare for the Sale prior to meeting

customer

• Approach1. Approaching the customer

2. Determining needs

3. Presenting the product

4. Overcoming objections

5. Closing the sale

6. Suggestion selling

7. Relationship building

Buying Motives

Buying Motive

Definition

Rational A buying motive that is based off of sound judgment.

Occurs from factors such as the economy, utility, comfort, convenience, durability, & security.

Emotional A buying motive based on feelings or passions.

Purchasing something based on feelings.Pride, Vanity, Jealousy, Fashion, Habits, Comfort, Love, Praise, Curiosity, Fear, Romance

Patronage Consumer has a certain reason to support a store or a specific brand.

Superior service, product selection, better sales force

Three Types of Customers

There are three types of customers1. Decided

• Customer knows what they want to buy• Can be identified by the way they walk,

expression in their eyes / face, & tone of voice

2. Undecided– Customer doesn’t know what they want to buy– Salesperson helps them make up their mind

3. Just-looking– Most difficult customer to sell to– Can be decided or undecided but don’t want

salesperson assistance

The Approach in Retail Selling

• If customer is in a hurry, approach them quickly.

• If customer is undecided, let them look around.

• Encourage customers to ask questions.

Approaching the Customer1. Service Approach:

– The salesperson will ask the customer if they need assistance

– “May I help you with something?”

– “How may I help you?”

2. Greeting Approach – Simply welcome a customer to the store

– Can be formal or informal

• “Good Morning”

• “Good Afternoon”

3. Merchandise Approach• Can only be used when a customer is stopped and looking at a

specific product– Ex: “Is that the size you need?”– Ex: “Are you interested in a specific color?”

Warm-Up

• By what will the emphasis put on each phase of the selling process vary most significantly?a) State and local laws

b) Economic Conditions

c) Product and client

d) Geographic area

Determining the Customer Needs

3 Methods

A salesperson’s focus should be to determine the CUSTOMER’S NEEDS as EARLY in the sales process as possible

Determine Customer Needs

Method #1 Observing

•Look for non-verbal cues– Is the customer holding the

merchandise, looking around like they need help, etc…

– Looking for the customer to be interested in product

Mystery Shopper Video•http://www.youtube.com/watch?v=FeQ3WDhF6wo

Determine Customer Needs

Method #2: Listening

•Give the customer your undivided attention, don’t interrupt, & provide feedback

•Listen for cues to wants & needs

•http://www.youtube.com/watch?v=OrxvmM5aUzY

How to determine needs cont.

Method #3: Questioning

•Ask open-ended questions to encourage customers to talk

•Ask clarifying questions to make sure you understand customers’ needs

•Don’t ask too many questions in a row

•Don’t ask embarrassing questions

Present the Product

Sales Process

• Preapproach

• Approach1. Approaching the customer

2. Determining needs

3. Presenting the product

4. Overcoming objections

5. Closing the sale

6. Suggestion selling

7. Relationship building

Product Presentation

• Which Products to Show– After determining customer needs, select

products that match those needs

• What Price Range to offer– Avoid focusing on the price at the start– Begin by showing a medium priced product,

you can move up or down with feedback.

Product Presentation

• How many products to show– Show no more than three products at a time to avoid

overwhelming the customer

• What to say– Talk about product’s features and benefits.– Avoid jargon or using unclear or vague words

• Ex: nice, pretty, & fine

– Don’t use slang or double meaning phrases• Ex: “You look cool in that suit”

How can you make your presentation come alive?

• Displaying and Handling the Product– Creatively display– Handle product with respect

• Demonstrating– Demonstrate how product is used– Demonstrate features

• Using Sales Aids– Use aids when impractical to demonstrate actual product

• Samples, articles, graphs, charts, testimonies, warranty, etc….

• Involving the Customer– If possible, get customer physically involved (hold it, smell it,

taste it, use it., etc)• Have them use try on the shoes, swing the golf clubs, etc…

Sales Process

• Preapproach

• Approach1. Approaching the customer

2. Determining needs

3. Presenting the product

4. Overcoming objections

5. Closing the sale

6. Suggestion selling

7. Relationship building

Overcoming the Objection

Objection

• What is an objection?– Concerns, hesitations,

doubts, or other honest reasons a customer has for not making a purchase.

– Should be viewed positively by a salesperson because it gives you the opportunity to explain more

Excuses

• What are Excuses? – Insincere reasons for

not buying or not seeing the salesperson.

– Commonly used when they are not in the mood to buy a product

Five Common Objections1. Need

– “Do I really need this product?”

2. Product

– Concerns with color, size, style

3. Source

– Past experience with product or brand– “My mother really did not like GE appliances. She said that

they are poor quality.”

4. Price– More than the customer wants to spend

5. Time– “I think I will just wait until next month when the product is on sale”

Specialized methods for handling objections….

1. Substitution Method

2. Boomerang

3. Question

4. Superior point

5. Denial

6. Demonstration

7. Third party

Assignment• Working in your sales groups (3-4 students).

• You will be assigned a method for overcoming objections.

• The group will create a skit that will be performed in front of the class. – Every student must have a speaking part.

– Props can and should be used where appropriate.

• Explain what your method is and then demonstrate it

• From watching the skit, the class should be able to effectively learn the method the salesperson is using to overcome the objection.

• You can use this example as your video / role play grade from sales project

Steps of a Sale

1. Approaching the customer

2. Determining needs

3. Presenting the product

4. Overcoming objections

5. Closing the sale

6. Suggestion selling

7. Relationship building

Sales Process

•Closing the Sale– Obtaining a positive agreement from the customer to BUY!

Timing The Close

•Buying Signals are the things a customer does to indicate readiness to buy– Facial expressions– Body Language– Trying on Clothes– Holding merchandise

General Rules for Closing A Sale

1. Recognize closing opportunities

2. Help customers make a decision– Stop showing additional merchandise

• Creates confusion– Narrow selection – Explain advantages or disadvantages of item

being considered

3. Create an ownership mentality

4. Don’t talk too much or rush the customer

Closing the Sale

• As soon as you recognize a buying signal, attempt to close the sale

• There are multiple ways to close a sale– Which – Standing Room-Only– Direct – Service

Closing the Sale

• Which Close: encourages a customer to make a decision between two items.

• Review benefits of each item and ask…..

• “Which one do you prefer? The red or the blue one?”

Closing the Sale

• Standing-Room-Only“SRO” : When a product is in short supply or when price will be going up

• “I’m sorry, but I can’t promise that I can make this same offer tomorrow”

Closing The Sale

• DIRECT Close: Directly ask for the sale

• Used when buying signals are very strong

– “Can I assume that we’re ready to discuss the details of your order.”

– “Would you like to pay with a credit card or cash?”

Closing The Sale

• SERVICE Close Explain services that overcome obstacles

– Gift wrapping– Return policy– Warranties– Guarantees– Terms of the Sale

Closing the Sale

• Suggestion Selling: Selling additional goods or services to the customer– Benefits the company, customer, & employee

• Occurs after the customer has made a commitment to buy, but before payment is made.– Don’t load customer with unneeded items

Closing the Sale

• Ways to suggestive sell....

– Make the suggestion definite•Don’t ask, “Will this be all?” Instead say, “This oil is recommended by the manufacturer.”

– Show the item you are suggesting•Put complimentary items near each other•“This purse matches your shoes perfectly.”

Suggestion Selling• Cross Selling

– Offer Related Merchandise• Person buys a golf club, suggest golf balls• Buys shoes, suggest socks

• Up-Selling– Recommend larger quantities

• “If you buy 2, you get 1 free”• “Would you like to supersize that meal?”

• Special Sales Opportunities– Point out other sales that the customer may be interested in

– Buying pants, mention sale on shoes

Relationship Marketing

• Customer Relationship Marketing (CRM):After Sale Activities to develop customer relationships– Nurture customer relationship• Keep customers informed about sales and news

• Goal is to obtain customer loyalty

CRM•Follow-up

– Ensure satisfaction, call, card, email– Common on large purchases or online shopping

•Customer service – Handle inquiries and complaints, keep customers

satisfies

•Keeping a client file – Useful info. for future reference

•Evaluate sales efforts – What went well?, What can be improved?

Video / Role Play

• Approach Customer– Greeting: Service, Greeting, Merchandise– Determine needs: Listen, Observe, Question– Present the Product: Find a few they may like– Overcome Objection:

• List objection / concern• Use all 7 methods to overcome individually to

overcome it

Warm-up

• Speaking in __________ means you are using words the average customer can understand.a) Paraphrasing

b) Layman’s Terms

c) Tongues

d) Jargon

Sales Process

• Preapproach

• Approach

1. Approaching the customer

2. Determining needs

3. Presenting the product

4. Overcoming objections

5. Closing the sale

6. Suggestion selling

7. Relationship building

Agenda• Sales Process

– In your groups think of a sales situation where you can act out a sales scene

• Retail• Door-to-Door• Telemarketing

• Break up the project so that all members of your group are working

• You will act out the script once done

Kid Salesman Video

Answer the following questions based on the sales approach used

http://www.youtube.com/watch?v=hxCHEJSHOBE

• What type of greeting did he use?

• What method was used to determine customer needs?

• What closing technique best describes the kid salesman’s approach to closing the sale?

• Product Knowledge– http://www.youtube.com/watch?v=yaSAAOGOP-E

• Greeting– http://www.youtube.com/watch?v=rLywQ7e6CZI

• Macy’s– http://www.youtube.com/watch?v=3KMW31Boruc