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Preparing for the Sale
Chapter 12(2006 Edition)
Ch 12.1: What is Selling?What You’ll Learn
The definition and goals of selling
The various sales situations
encountered in the business world
The definition of feature-benefit selling
How customers make decisions and the
difference between rational and
emotional buying decisions
Selling
Personal Selling – any form of direct contact between a salesperson and a customer
Retail Selling – customers come to the store
Business-to-Business Selling – takes place in a manufacturer’s or wholesaler’s showroom or a customer’s place of business
Telemarketing – selling over the telephone
– National Do Not Call Registry, established by the FTC in 2003
Goals of Selling
Help customers make satisfying buying
decisions, which create ongoing,
profitable relationships between buyer
and seller.
Repeat business is crucial to the
success of any company
Consultative Selling
Providing solutions to customers’
problems by finding products that meet
their needs.
Problem – Customer stands all day on
her new job and her feet hurt.
Solution – Salesperson suggests
shoes designed for comfort and
support.
Feature-Benefit Selling
Customers don’t buy products –
they buy what products can do
for them.
Product Features
May be basic, physical, or
extended attributes
The most basic feature is the
product’s intended use
Additional features add more value
to the product
Obvious Feature
This car is a bright shade of red.
Customer Benefits
The advantages or personal satisfaction a customer will get from a good or service
Benefits become selling points
How does the feature help the product’s performance?
How does the performance information give the customer a personal reason to buy?
Obvious Benefit
This bright
red car will
attract the
guys/girls
Unique or Exclusive
Benefits
Our cars are so safe,
we guarantee you
won’t be crushed in a
crash from the side.
Feature Benefit Chart
A list of a product’s features and
associated benefits.
Feature Benefit Chart
Choose an item and list at least five
features and benefits
Features Benefits1.
2.
3.
4.
5.
Customer Buying Motives
What motivates the customer to buy?
Rational Motive – a conscious,
logical reason for a purchase
Emotional Motive – feelings such as social approval, recognition, power, love, or prestige
Customer Decision Making
Extensive Decision Making –
Used when there has been little or no
previous experience with the item
– High risk items
– Very expensive
– High value to the customer
Limited Decision Making
When a person buys goods and services that he or she has purchased before but not regularly
– Moderate degree of risk
– Person needs some information before buying the product
Routine Decision Making –
Person needs little information
about a product
– High degree of prior experience
– Little perceived risk
Ch 12.2: Preparing for the Sale
Sources for developing product
information
Prospecting sources and methods
How leads are developed
Preparation for the sale in business-to-
business selling and retail selling
What You’ll Learn
The Pre-approach
There are some steps that a salesperson
follows when preparing to assist customers.
The pre-approach is getting ready for the
face-to-face encounter in a selling situation.
A good salesperson has knowledge of the
following…
1. Product Information
Direct experience
Written publications
Other people
Formal training
2. Industry Trends
Read related periodicals
Trade journals
Standard & Poor’s – a
publication that provides
data on industry trends.
3. Prospecting
A prospect, or a lead, is a potential
customer
Prospecting is especially important in
business-to-business selling situations.
Sources and Methods of Prospecting
Employer Leads
– Some firms employ entire telemarketing
teams to generate leads
– Some rely entirely on their salespeople to
find new customers
Sources and Methods of Prospecting
Telephone
directories
Trade and
professional
directories
Sources and Methods of Prospecting
Newspapers
– Birth announcements
– Reports of business mergers
Commercial Lists
– Salespeople can buy lists of potential
customers
– Email lists
Sources and Methods of Prospecting
Customer Referrals
– The names of other people who might buy
a product.
– Endless chain method – salespeople ask
previous customers for names of potential
customers.
Sources and Methods of Prospecting
Cold Canvassing – blind prospecting
– Going door-to-door
– Selecting names from the phone book at
random
Preparing for the Sale in
Business-to-Business Selling
B2B
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
Preparing for the Sale in
Retail Selling
Straighten and arrange stock
Adjust price tickets
Learn about stock and it’s location
Arrange displays
Clean the floor, shelves, and selling
area
Company Policies and Training
Training– Four-step method – explanation, demonstration, trial,
critique
Compensation and Sales Quotas– Often compensated by commission (% of what is sold.)
– Sales quotas are dollar or unit sales goals set for the sales staff to achieve in a specified period of time.
Legal and Ethical Issues– No hard-sell tactics!
– Must fully disclose the facts.