1 Agribusiness Library LESSON: L060040 Selling Agricultural Products and Services

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Agribusiness LibraryAgribusiness Library

LESSON: L060040 Selling Agricultural Products and Services

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Objectives

1. Identify the characteristics of an effective salesperson, and define related terms.2. Compare and contrast relationship

marketing and selling.3. Describe the customer buying process.

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Key Terms

customer relationship management relationship marketing salesmanship salesperson selling touch point

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What are the characteristics of an effective salesperson?

What are some related terms?

Businesses increase revenue when their products or services are traded for money with customers. The sales process closely relates to the marketing efforts, advertising, promotions, and public relations of a business. Marketing, promotions, and more lead customers to the selling process.

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A. The actual process of selling involves a salesperson using problem-solving

techniques to find out what a customer needs, providing the customer with applicable choices, and

allowing the customer to choose the best option for his or her situation.

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B. A salesperson is someone who works for the business and assists customers in finding what they need or want. An effective salesperson is able to describe product features, demonstrate how products or services work, and show

customers the available product options.

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1. In addition to selling, most salespeople are required to:

a. Receive paymentsb. Give change and receiptsc. Bag purchasesd. Handle returnse. Stock shelvesf. Mark price tagsg. Take inventoryh. Prepare displaysi. Clean the store

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2. Salespeople are required to continually learn and understand product changes, promotions, and sales.3. In some sales jobs, salespeople are required to have special knowledge or skills. This is true of jobs that deal with expensive or complex items. Seed and agricultural equipment salespeople must learn how the products will react in a variety of conditions.

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4. Employers stress that salespeople must provide courteous and efficient service to customers to create a positive experience and to build a long- term relationship. Important traits include:

a. Enjoy working with othersb. Using tact and patience with difficult

customers and situations.c. Communicate clearly and effectivelyd. Have the ability to speak multiple languages

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5. Salesmanship is the practice of learning about and satisfying customer needs. Salesmanship involves being efficient, fair, and sincere and is meant to create or maintain a long-term relationship with the customer.

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In what ways are relationship marketing and the traditional sales

process similar? How are they different?

It costs up to five times more for a business to attract new customers than it does to retain existing customers. Because of the cost of attracting new business, there is a high value in building strong relationships with customers

throughout the selling process so they become repeat customers.

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A. Relationship marketing is the most popular way to build a business of long-term customers through sales. Relationship marketing includes the marketing and selling activities that build and manage solid, trusting relationships

with customers.

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1. This type of marketing generally is aimed at larger customers that the company needs to maintain as repeat customers.

2. Usually one person in the business is assigned to each of the major customers. This person may

have many businesses with which to work, but the salesperson is able to fulfill each customer’s

needs and stay up on the customer’s activities.

3. As in the traditional selling process, the customer ultimately pays the business for the exchange of a product or a service.

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4. Unlike the selling process, relationship marketing attempts to create a more meaningful and rich contact with the customer over many touch points.a. A touch point is an interface the customer has

with a company before, during, and after a sale.

b. Touch points can include receiving or hearing advertisements, browsing in the store, viewing the company Web site, receiving a call from a company representative, experiencing a purchase, and receiving a post-sale follow up from the company.

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5. Relationship marketing is very important when the company’s competition offers similar alternative products or services. The customer often chooses which product to buy based on if he or she likes the company.

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6. Components of effective relationship marketing include the salesperson:a. Listening carefully to the needs of the customerb. Being honest with the customerc. Caring about the customer as a person, as well as

the business he represents or need he has as an individual

d. Avoiding the use of pressuree. Being friendlyf. Reacting quickly to customer needsg. Offering products and services for a good priceh. Maintaining regular contact with the customer

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B. Technology is available to help maintain and manage customer relationships in a relationship marketing environment.

Customer relationship management (CRM) is the method a business uses to store, track, and organize its contacts with current and prospective customers.

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What decisions do customers make in the buying process?

Businesses often focus on how to sell the products or services they have instead of putting themselves in their customers’ shoes and evaluating how the customers will make decisions regarding the purchase of the company’s offerings. The customer’s decision to purchase a product represents a process.

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The process to buy may happen almost instantly, or it may take several weeks or months of research and evaluation. However, making a purchase is not a single event. It is a progression. The five steps in the buying decision process are (1) identify a want/need, (2) research, (3) evaluate options, (4) make a purchase, and (5) evaluate the purchase.

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A. Identify a want/need: The decision process always begins when a potential customer realizes that he or she has a need or a

want.

B. Research: After deciding a need is present, the customer will explore the possibilities. What is available on the market? What features and benefits do they each offer? What do the options cost? What brands/colors/accessories/ etc. are available? Are warranties available?

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C. Evaluate options: After collecting the information about what products and

services are available and the variables that make them each unique, the customer refines and evaluates all of the buying criteria. Then the customer narrows the options to a few of the

best alternatives. Finally, a decision is reached, and the best option is selected.

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D. Make a purchase: This is the point in the buying process where the customer takes action and makes a purchase.

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E. Evaluate the purchase: After making the purchase, the customer studies the

product or service and re-evaluates whether it was the right decision. Is it a good value for the money spent? Does it have all of the features and

benefits needed? Is it easy to use?

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ReviewReview

Name some important traits of a salesperson. Why does relationship marketing work to

increase revenue? List the five steps a consumer makes in the buying process.

Documents

1 Agribusiness Library LESSON: L060040 Selling Agricultural Products and Services