4.00 Channel mgt, Selling promotion and Economic trends

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4.04

Employ sales processes and techniques to enhance customer relationship and to increase the likelihood of making sales.

Professional salespeople must be able to modify to separate personalities and other situations.

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Helps you to adapt yourself to your client; Every customer will be

 different

An effective sales person can try to identify the customer’s personality type by observing the customer’s actions.

If you are able to quickly identify the personality style of the customer, you will know the "hows" and "whys" of what to say to meet their needs

Once the customer feels that you truly understand them and feel an emotional connection, they will be more willing to buy from you

Improves the odds that the sales person can persuade their potential customer that the product best meets the customer’s needs.

To be effective your sales talk must address different customers in different ways

Every customer is different, so be prepared to adjust your approach to each

If you use the wrong personality type approach, it is likely the customer will not be willing to buy from you

Customers buy when they are understood

The wrong approach can lead to misinterpretations between the salesperson and customers.

Aggressive

One possible advantage of the Aggressive visitor is that they tend to be fast in making a purchase decision. If you can prove your worth to them, you'll have a quick sale.

Concentrate your sales elements on calling out the main benefits and summarize content using bullet points.

The bottom line? Tell them what your product or service does that helps solve their problem.

Systematic

The Systematic customer personality types require facts and information (typically lots of it) before making a purchase decision.

This means taking the time to provide additional details and documentation to prove your product or service does what you say.

This personality type requires information that is systematically organized and makes logical sense. Accuracy is important to them.

Impulsive

Impulsive customer personality types are not always sure what they are looking for, but if they chance across something they think can help them, tend to make an immediate purchase.

Social

This personality type is usually slow to reach a purchase decision as they prefer to check in with others in an attempt to find someone who has used the product.

Social customer types want to know who else has used the product and if it performed as advertised. Testimonials are an important part of converting Social personality types.

http://www.small-biz-marketing-tips.com/customer-personalitytypes.html

The egotistical client

This client eternally wants only superior, great reputation and high prestige products

This client will only go for your product or services if you can persuade them that it is the newest, most advanced and most appropriate there is on the market.

The friendly customer

The friendly customer gets on best with salespeople who have the same type of personality.

Agreeable clients are extremely uncomfortable in the vicinity of boastful or authoritarian salespeople, who they think treat them like a child.

The business-like authoritarian customer

Can handle facts and figures

Furnish this group of clients with comprehensive facts and make them sense that they are the one making the decision. Do not pressure them - employ logical arguments instead.

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The key six types:

Decisive Personalities

Impulsive Personalities

Fact-Finder Personalities

Practical or Frugal Personalities

Informed Personalities

Difficult Personalities

Decisive customers are typically more forceful and assertive.

They know exactly what they want and don't want to waste time getting it.

Want to know the facts and are interested in comparing products

If you appear knowledgeable and professional and stay focused on meeting their needs, you will probably win their business

Impulsive customers are not always sure what they are looking for, but if they chance across something they think can help them, they tend to make select products quickly and make an immediate purchase.

Impulsive visitors tend to react well to money-back guarantees and limited-time offers.

Impulsive customers typically like the stimulation of graphics, audio or video as long as it is informative and helps them make a buying decision.

Large amounts of data in the form of tables and graphs can be annoying or even overwhelming to them. http://EzineArticles.com/3942700

Fact-finders are looking for quantitative data that helps them choose one product over another

They tend to prefer a logical approach and are

“rationally” motivated buyers rather than emotionally motivated

Offering clear comparisons and using factual and verifiable specifications helps them make a decision.

Example: suggest product care techniques.

Practical and Frugal are looking for a good value for their money

It doesn’t have to be the best, but needs to fit requirements

Product specifications mixed with testimonials works well for this kind of buyer

Extra features that cost money aren’t interesting to them

Pointing out that they are getting the best “bang for the buck” is what closes this customer

Informed buyers have usually already studied the products before stepping into the store or the online website

The are looking for confirmation of what they already know and then wish to compare prices for similar features

Reassuring the customer that that they have made a great choice and are getting what they were looking for is the best way to sell to this customer

The difficult customer usually has a poor opinion of sales people

May be based on hearsay or past experience

Doesn’t trust the selling process

May have insecurities about themselves or low self-esteem

Offering verifiable information and giving the difficult customer space and time to think is a good way to sell to them

Be available but don’t hover around them

Decisive Personalities

Offer information

Impulsive Personalities

Question their reasons for shopping and present a product that meets their needs

Fact-Finder Personalities

Just the facts, please

Practical or Frugal Personalities

Best “bang for the buck”

Informed Personalities

Clear comparisons of rival products

Difficult Personalities

Answer questions, then give them space and time

Everything we have already discussed

The key is to know the features of the products you are selling and then tie those features to specific benefits that the individual customer is looking to get from your product

Any type of customer can be difficult if you aren’t prepared to understand them and respond properly, so learn how to handle each type

Observe customer’s actions

Listen to the customer

Question and Engage the customer

Buying Motive: The reason why a customer buys a good or service

Rational Buying Motive: When the customer has conscious, logical, well thought out reasons for making a purchase.

Emotional Buying Motive: Feelings experienced by the customer through association with a product or service.

Patronage Buying Motive: The loyalty associated with a product or store.

Rational Buying Motives:

Product Dependability

Time and Monetary savings

Health or Safety consideration

Service

Quality

Durability

Emotional Buying Motives:

Social approval

Recognition

Power

Love

Prestige

Patronage Buying Motives:

Low Prices

High quality

Friendly staff

Great customer service

Merchandise Assortment

To successfully sell a product, sales people effectively use buying motives to meet a customer’s needs or wants

On occasion, a customer doesn’t understand the products that are available and the professional salesperson will work with the customer to discover their real needs and wants

Understand the underlying needs and wants allows the salesperson to select the correct product.

1.

Customers have:

A problem to solve ( need )

2.

An unfulfilled desire ( want )

These can be for themselves or someone else that they know

Family

Friends

Professional (work related)

Emotional

Social approval , recognition, power, love, prestige

(etc.)

Rational

Product dependability, time or monetary savings, health or safety issues, quality, durability (etc.)

Patronage

Brand loyalty, store loyalty

Listen and Question

What seems to be important to the customer?

 What do they stress in their answers?

Who or what do they look at before answering a question?

Do they look at the person they came with (for approval)?

Do they look at the product or product info?

Do the things that have been addressed in the earlier slides.

Buying decision – Customer agrees to purchase the product

Need decision – because of a need for it (need a winter coat)

Product decision – reputation of the product or manufacturer

Place decision – where the customer can buy the product

Price decision –because of the price relative to the competitor’s product

Time decision – need for additional information -------- the customer isn’t ready to buy

Time of day or year

Identify types of buying decisions.

Place

Price

Time

Identify factors affecting place decisions.

How and where will we sell to the customer?

How close is the store?

Does it have the item I need in stock?

Business loyalty or patronage

Are there shipping/delivery costs?

Cite factors affecting price decisions.

Perceived value

Discount

Perceived quality

Cost, competitors’ prices, what the customer is willing to pay

List factors affecting time decisions.

Time of year

Time of day

Need for additional information

Explain the importance of salespeople's helping customers to make buying decisions.

Often salespeople are the relative experts on the product being offered

Salespeople are trained to help the customer arrive at a decision when the customer isn’t sure what they want or need

The salesperson offers encouragement

Describe guidelines to follow in order to facilitate customers’ buying decisions.

Observe, listen, question and engage

Offer a mid-priced item first

Determine if there is a certain brand or style that would be best

Avoid over selling

Assist customer in reaching favorable buying decisions.

Select a suitable item

Demonstrate the product

Allow the customer to try it

Overcome objections

Close the sale

Define the following terms: probing, informationgathering probes, opinion-gathering probes, and confirming probes.

Probing – a method of discovering what the customer wants

Information-gathering probes – method of gathering information about the customer and their needs

Opinion-gathering probes – used to determine what the customer is thinking. Aimed at getting the customer’s opinion on available products

Aimed at ensuring that the customer is certain about what they wish to buy

An important step before selecting a product or attempting to close a sale

Can also be used to check for objections

Distinguish between probing and questioning.

Probing is much like assumptive questioning

Probing is aimed at getting the customer to go into more depth without asking direct questions

This can help get a more accurate truth than the customer is prepared to give through answering questions

Questioning directly asks for information and might miss subtle cues about what the customer really wants

Describe reasons for probing.

To identify customer’s needs and wants

If the customer’s answers to questions aren’t consistent

Using probing in a sales presentation can make less time needed to close the sale

The customer seems unsure:

About what they want

About whether the product will satisfy their needs

Explain benefits of probing to assess customer/client needs.

Probing is less direct and often less annoying to the difficult customer

It helps the salesperson get valuable information

Less time is needed to make a sale

Identify probing techniques.

Open ended questions

Silence

Nodding your head as they talk (to encourage more information)

Explain guidelines for assessing customer/client needs.

Be professional, yet friendly

Use all tools appropriate for the customer to get to the heart of what they need or want

Demonstrate procedures for assessing customer/client needs.

Observe customers’ facial expressions during the sales presentation to determine which selling points appeal to them.

Define the following terms: sales talk and product demonstration.

Sales talk – a speech the salesperson gives to introduce him/herself, the company and the product(s)

Used to motivate the customer and focus their desires so they are more likely to purchase

Product demonstration – show, tell and touch

Inform the customer on how to use and then let them try it for themselves

Explain the importance of an effective product demonstration.

Can mean the difference between a sale or the customer leaving with nothing

Can help the customer better understand the product and how to use it

Builds the customer’s confidence in the product and its use

Get the customer excited about the product

Describe guidelines to follow in selecting a product to demonstrate to a customer.

Appropriate to their needs

Show limited number of products at one time

Mid-priced product if possible

Explain guidelines to use in demonstrating products.

Involve the customer

Watch how they use it and make friendly suggestions to enhance their experience with it

Demonstrate features that interest the customer

Help the customer get excited about the product

Demonstrate the product.

Example: If you are selling a food product, actually cook the product for the customer and give them samples.

Discuss the importance of feature-benefit selling.

Most effective method of selling

Aims at helping the customer see how the features will directly benefit the customer

Matching the characteristics of a product to a customer’s needs and wants

Customers don’t buy products, they buy what the product can do for them (Customers buy BENEFITS)

Describe product features that should be considered in preparing to use feature-benefit selling.

Features are basic, physical or extended attributes of a product (they are built into the product)

Features can be used to help differentiate prices for otherwise similar items (more expensive feature make the product more expensive)

A feature is a physical characteristic or quality of a product.

It is something the customer can touch, feel, smell, see, or measure

It helps describe the product.

A feature answers the question, “What is it?”

Ex: color, style, size

Example: An air pocket in the Nike tennis shoe.

A benefit is the personal satisfaction or advantage that a customer wants from a product.

It is how the feature helps a particular buyer

For customers, it answers the questions:

How will I benefit?

What’s in it for me?

Example: The air pocket in a Nike tennis shoe provides Comfort .

Prove to customers your product has features that benefit them

Customers buy benefits-not features

Compare to competition

Determine what each customer is looking for in a good or service

Salespeople should be able to explain these three types of benefits to customers:

Obvious or apparent benefits

Unique or exclusive benefits

Hidden benefits

Advantages that need little explanation by the salesperson.

The customer already knows the benefit

Ex: Neutral colored carpeting

What is the obvious benefit?

Even if benefits are obvious, salespeople should still point them out and use them to prove the value of the product to customers

Advantages that are available only from your good, service or business.

Is a selling advantage over your competitors

Ex: a car that “parks” itself is a novelty

Offers a huge benefits to customers that have trouble parallel parking

Advantages that cannot be seen or understood without the assistance of a saleperson

Ex: buying a pair of shoes

You can see the color and style

You can not see how comfortable they are until persuaded to try them on your feet.

Ex: purchasing a computer

Warranties/24-hour helpline

Explain the importance of determining which features and benefits appeal to each customer.

Since the customer is buying the benefits, a salesperson must find and understand what benefits the customer wants to get from the purchase

Matching the product features that will give the customer the benefits they want will help you complete the sale

The benefit(s) must be of real value to the customer

Explain the guidelines for prescribing a solution to customer needs.

Listen carefully to customers as they describe what they want

Look for clues to important underlying wants/needs that haven’t been mentioned (Use probing techniques and assumptive questions)

Watch the customer during the demonstration portion, what is s/he most interested in?

Clearly show how the product meets the customer’s needs

Demonstrate procedures for prescribing solutions to customer needs

Define the following terms: objection, yes, but. . ., toss-it-back, deny it, point-counterpoint, inquiry, show 'em, testimonial, try it .

Objection – a legitimate reason, doubt, or hesitation a customer has for not buying the product

“ Yes, but. . .

” – indicates an objection has not yet been satisfactorily answered

Toss-it-back – “boomerang” response where an objection is brought back to the customer as a selling point (past experiences)

Deny it – the objection is based on misinformation (be diplomatic)

Point-counterpoint – “Superior-point” used to offset the objection with the product’s features and benefits

Inquiry – “Question” used to clarify by asking direct questions about what is bothering the customer

Show 'em – Demonstrate the product again

Testimonial – third party referral of positive feedback

Try it – “Satisfaction guaranteed or your money back”

Distinguish between objections and excuses.

Objections are legitimate reasons not to buy

Excuses are reasons given when the customer doesn’t want to talk to the sales person or make a decision (usually related to time)

Explain the importance of properly converting customer objections into selling points.

Since an objection is a reason not to buy, a salesperson must overcome objections to make a successful sale

Showing that the objection is actually a good reason to buy will often result in a sale

Describe reasons that salespeople should be prepared to answer objections.

Objections can occur anytime in a sales presentation, from the approach through the closing

Until the objection(s) are overcome, the customer probably won’t buy

Most customer can’t clear the objections themselves, so the salesperson must be prepared to help

Ask additional questions and explain other features and benefits.

Classify types of objections.

Need – urgency for the product (don’t need a winter coat in May)

Product – The design, quality, color size, style, or ease of use don’t work for the customer

Source – manufacturer, brand or country of origin

Price – too expensive or too cheap (value)

Time – pressured to buy on the spot, don’t have time to properly consider the details

Describe methods of converting objections into selling points.

Substitution, Boomerang, Question, Superior point, Denial,

Demonstration, Third-party

Explain procedures for converting objections into selling points.

1. Listen carefully to customer objection

2. Pause before answering in order to get the customer’s full attention

3. Empathize with the customer

4. Restate the objection

5. Avoid arguing with the customer

6. Convert objection into selling point

7. Answer objection honestly and continued selling

Demonstrate skill in converting objections into selling points.

Define the term sales close.

Obtaining an agreement from the customer to purchase the product

List reasons that closing a sale is a courtesy to customers.

The customer has a want or need to be satisfied

Time has been spent in the pursuit of finding a product

 Driving, talking to salespeople, looking up products on the internet, phone calls, etc.

Explain the importance of using an appropriate closing technique.

There are multiple techniques and some will work more effectively than others on certain customers or with certain products

Needs to fit the situation

Identify closing techniques.

Trial close, which, standing-room only, direct, and service

Describe the following closing techniques:

Direct – Ask if they are ready to buy

Assumption – trial “Would you like this gift wrapped?”

Minor-points – Get agreement from the customer on a number of little things then ask for the sale

Summary – Review the things the customer liked about the product

Standing-room Only – limited time to purchase because of price going up or last item

Closing on objection – When the objection has just been cleared, ask for the sale

Contingent – “If, then” If I can get this done for you, then will you buy?

Contrasting advantages and disadvantages –

Show how the advantages outweigh the disadvantages (upside vs. downside)

Suggesting ownership – Using words like

“you” and “yours”

Narrative – Talk the customer through the sale and confirm for them that everything has been covered and that they are ready to buy

Related merchandise – Offer items that complement the original purchase

Bonus – Offer an extra to sweeten the deal if they purchase now

Silence – Give the customer time to think and sell themselves

Classify examples of closing techniques.

Trial close, which, standing-room only, direct, and service

Describe guidelines for closing sales.

Be sure that the product is a good fit for the customer (it costs you more to sell it and then get it returned)

Focus on the benefits to the customer

Be sure all objections have been cleared

Encourage the customer that s/he has made a good decision

Reassure the customer about their buying decision by displaying self-confidence

Maintain a positive attitude

Demonstrate how to close a sale.

Define the term suggestion selling.

Complementary goods that enhance the original sale

Identify examples of suggestion selling.

Do you want fries with that?

I can show you some great ties to go with this new suit.

Would you like a cold drink with your hot dog?

Describe the importance of using suggestion selling.

Helps customers get more enjoyment from the original product

Can increase total sales and improve profits

Categorize items that are appropriate for suggestion selling.

Cross selling – related merchandise (a tie to match a shirt)

Up-selling – larger quantities (buy two get one free)

Special sales opportunities – other departments in the store

Trading Up- Persuading a customer to buy better and higher priced goods.

Explain guidelines for using suggestion selling.

Focus first on completing the original sale

Based upon the personality of the customer, select items that will enhance the original item and present them as options for the customer (think from the customer’s point of view)

Make specific suggestion(s)

Let the customer see how it works together with the original item

Demonstrate proper procedures to use in suggestion selling.

Identify benefits of negotiating sales terms.

Allows flexibility when dealing with the customer

Some customers may be able to purchase an item that otherwise could not be bought without the flexibility in sales terms

Discuss the importance of patience when negotiating sales terms.

Because the salesperson is offering the customer options for buying and paying, sales must be prepared to give the customer time to think.

Explain the need to analyze the product’s added value in comparison to that of competitors.

Describe the importance of being prepared for negotiations from the beginning of the sale.

Discuss information that the salesperson needs in order to negotiate effectively.

Explain how to create win-win negotiations.

Start with the idea that the sale will be good for both parties (customer and company)

Remember the lowest price the company can sell the item and be sure to avoid going below that number

Make sure that you are offering a product that has real value to the customer

If the client’s terms would be harmful to the sales person’s company they should just walk away from the sale.

Discuss the importance of considering the buyer’s feelings when negotiating sales.

The customer does NOT have to buy from you

Future sales are dependent on their opinion of you

Explain barriers to sales negotiations.

Normal communication barriers

Preconceived notions

Emotions (anger, pride, guilt/regret, worry)

Lack of honesty or integrity

“Hidden agendas”

Describe the use of silence in negotiating sales.

Most people feel uncomfortable in silence, the first to talk usually gives up power

Demonstrate how to negotiate sales terms.

Sales Standards and Policies

Distinguish between sales standards and sales policies

Standards are best practices, lessons learned, and minimum operating procedures

Policies are guidelines selected by the company that outline how sales will be done, can include limits

Explain the purposes of sales standards

Standards are used as a benchmark. Each set of standards should correspond with desired performance outcomes for each salesperson.

When standards are customized, they more accurately reflect the degree to which an individual employee is meeting expectations.

Standards may also be used as a tool to measure the performance of an entire sales team or a customer-focused group.

Group standards typically focus on common objectives such as customer satisfaction, client retention, increased revenues and referrals, and new product rollouts.

Standards provide structure for salespeople without stifling their personalities

Discuss benefits of having sales standards.

Help build a specific image for the company (position it relative to its competitors)

Easier to evaluate salespeople

Sales support staff knows what to expect

Sales Standards Examples

One example: A numeric target, such as “serving 6 customers per hour” sounds good, however if you do not control the rate of customer arrivals then the measure is not within the employees control, as there maybe times when less than 6 customers per hour arrive.

Confirming sales call appointments the day before a presentation to increase the close rate is a more justified standard.

Describe common sections contained in sales standards documents

 corporate information, sales organization, onboarding process, sales and technology, prospecting, the engagement cycle, and selling tactics).

Demonstrate procedures for maintaining sales standards.

Identify appropriate selling techniques for use with a specific client/customer.

Decisive Personalities

 Offer information

Impulsive Personalities

 Question their reasons for shopping and present a product that meets their needs

Fact-Finder Personalities

 Just the facts, please

Practical or Frugal Personalities

 Best “bang for the buck”

Informed Personalities

 Clear comparisons of rival products

Difficult Personalities

 Answer questions, then give them space and time

Demonstrate procedures for selling a good or service.

Once a need is determined provide more information on the product.

Low

Assertiveness

Inquisitive; slow-acting; low risk taker; nonverbal; cooperative

Low

Responsiveness

Wants facts and figures; precise about time;

Task-oriented; objective and reserved

1

1

Analyticals

• thinking

2

2

3

Drivers

• sensing

4

3

Amiables

• feeling

Expressives

• intuitive

4

High

Responsiveness

Expressive about feeling and emotions; people-oriented; subjective http://cas.uah.edu/wrenb/MKT315/ch6/Adaptive%20Selling.m.ppt

High

Assertiveness

Fast; active;

High risk taker; verbal; directive; competitive

Explain how sales techniques are modified to sell to groups.

Salesperson must be aware of the group dynamics

Official leader

Informal leader

Who is the expert?

Include all members in the presentation

 Encourage interaction

Explain the use of technology in selling to groups.

Presentation software

Presentation materials and hardware

 DVD, monitor, projector

Multiple products to demonstrate

Demonstrate procedures for selling to groups.

Explain product benefits without emphasizing one over the other.

Encourage interaction

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