Selling Satisfies Customers
Chapter 17
rd
Marketing, 3 Edition
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The Elements of the Marketing Mix
Product
Price
Place
Promotion
Where does Personal Selling fit in the Marketing Mix?
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Personal Selling
 Direct, personal communications
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with prospective customers in
order to assess needs and satisfy
those needs with appropriate
products and services
 The salesperson is the link
between the customer and the
business.
 Personal selling is helping
customers make wise and
satisfying buying decisions.
 Personal selling should create an
on-going profitable relationship
with the customer.
Never sell a product to a customer if
that product will not meet their
needs.
When to Use Personal Selling
Advantages
 Information
 Time
 Flexibility
 Feedback
 Persuasion
 Follow-up
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Disadvantages
 Cost per customer
 Time
 Control
 Skill
A sales presentation can provide more information
than an advertisement!
Choosing Personal Selling
 Personal selling is best used when the product is complex or
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expensive
When the market for the product is made up of a few large
customers
When new or very unique products exist with which customers
are unfamiliar
When customers are located in a limited geographic area
When a complicated or long decision-making process will be
needed
When you have customers who expect personal attention and help
with decision making
Personal Sales Management
 Self-management – salespeople have the qualities of good
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managers. Selling requires motivation and effective use of
time. Most of the salesperson’s time is spent on non-selling
duties. Salespeople must be emotionally and physically
healthy. They must be well educated and informed about
their product or industry.
 Customer management – some customers will require
more time than others. Salespeople must carefully schedule
their time with customers.
 Information management – salespeople must be able to
identify needed information and develop effective record
keeping systems.
Prospecting for Customers
 A prospect, or a lead, is a potential customer. There are seven main
methods for developing prospects:
 Employer leads
 Telephone directories
 Trade & professional directories
 Newspapers
 Commercial lists
 Customer referrals
 Cold calling or cold canvassing
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Understanding Customers
 Identifying customers – a great deal of time can be wasted if
the salesperson is talking to people who are uninterested or unable
to buy the company’s product.
 Cold Calling – contacting prospective customers without knowing
a great deal about the person contacted. This is difficult and
discouraging and should not be done by marketing oriented
businesses.
 Qualifying prospective customers – qualifying involves gathering
information to determine if a person is likely to buy. To be a
qualified buyer the prospect should have a need for the product,
the resources to purchase the product, and the authority to
make the purchase decision.
 Understanding customer decisions – a salesperson should
understand AIDCA.
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Mental Stages of Consumer
Decision-Making
AIDCA
Attention
Interest
Desire
Conviction
Action
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Understanding the Product
 Product knowledge – the salesperson must know all there is to
know about the product they are selling.
 Information sources – product manuals, trade shows,
advertisements, other salespeople, company training programs,
sales aids, direct experience with the product, and other business
publications.
 Communicating product information
 Feature – a description of a product characteristic. It’s basic,
physical or extended attributes.
 Benefit – the advantage provided to a customer as a result of the
feature. The personal satisfaction a customer will get from a good or
service.
 Remember … customers buy benefits not features!
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Frameworks 8.5
Understanding the Competition
 Salespeople need to understand the differences between their
product and the competition’s product.
 Salespeople need to explain the differences to help
customers make the comparison.
 The salesperson should carefully and accurately compare the
advantages and disadvantages of competitors products.
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Video
 Online Real Estate Sales
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The Steps of the Selling Process
 Approach
 Determine needs
 Demonstrate or Present
 Answer questions and objections
 Close
 Suggestion selling
 Follow-up
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Frameworks 8.4
Approach
 The first contact between the customer and the salesperson.
 An effective approach allows the salesperson to contact customers, gain
their attention and interest, and create a favorable first impression.
 Common approach techniques:
 The service approach -the salesperson asks the customer if he or she
needs assistance. This method is acceptable when the customer is
obviously in a hurry or if you are an order taker for routine purchases.
 The greeting approach - the salesperson simply welcomes the customer
to the store. This lets the customer know that the salesperson is available
for any questions or assistance.
 The merchandise approach - the salesperson makes a comment or asks
questions about a product in which the customer shows interest. This
method can only be used if a customer stops to look at
a specific item.
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Frameworks 8.4
Determine Needs
 Gather information to determine customers’ needs and how they
can be met.
 In the preapproach the salesperson will prepare for sales
presentation. Be sure you have everything you need! Including
your pencil! This also involves gathering information about the
customer and studying target market information.
 What are the three methods that will help the salesperson
determine customer needs?
 Question
 Listen
 Observe
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Frameworks 8.4
Determine Needs - Questioning
Questioning – get the customer talking.
 Ask open-ended questions—questions that require more than
a yes or no answer.
 Ask clarifying questions to make sure you understand customers'
needs.
 Don't ask too many questions in a row.
 Don't ask questions that might embarrass customers or put them
on the defensive.
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Frameworks 8.4
Determine Needs - Listening
 Listening helps you pick up clues to the
customer's needs.
 Remember these five important listening
skills when talking to your customers:
 Maintain good eye contact.
 Provide verbal and nonverbal feed back.
 Give the customer your undivided
attention.
 Listen with empathy and an open mind.
 Do not interrupt.
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Frameworks 8.4
Determine Needs - Observing
 When you observe a customer, you should look for buying motives
that are communicated nonverbally.
 Nonverbal communication is expressing yourself through body
language such as facial expressions, hand motions, and eye movement.
 In B2B selling, nonverbal communication can include the personal
belongings in a buyer's office.
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Demonstrate
 A personalized presentation of the features of the product in a
way that emphasizes the benefits and value to the customer.
 Creatively displaying the product is the first step in an eye-
catching presentation.
 The way you handle a product presents an image of its quality.
Handle it with care and respect.
 When it is impractical to demonstrate the actual product or when
you want to emphasize certain selling points, you can use sales
aids such as samples, audiovisual aids, models, photographs, or
drawings.
 Get the customer physically involved with the product
demonstration as soon as possible in the sales presentation.
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Frameworks 8.4
Demonstrate
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Demonstrate
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Frameworks 8.4
Answer Questions and Objections
 Overcome objections and ensure the marketing mix meets the
customers’ needs.
 Objections are concerns, hesitations, doubts, or other honest
reasons a customer has for not making a purchase. Objections give
you an opportunity to present more information to the customer.
PRICE!
 What is the most common objection in selling? ____________.
 Excuses are insincere reasons for not buying or not seeing the
salesperson.
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Frameworks 8.4
Answer Questions and Objections
 Successful salespeople have learned to use a very basic, four-step
strategy when answering all objections:
 Listen carefully
 Acknowledge the customer’s objections
 Restate the objection – paraphrase.
 Answer the objection.
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Frameworks 8.4
Techniques for Handling Objections
 Superior Point Admit disadvantages in certain products but then
present superior points to offset or compensate for them. This
technique puts the customer in a position to decide between the
different features and see additional reasons for buying.
 Denial When a customer's objection is based on misinformation,
provide proof and accurate information to answer the objection.
 Demonstration Demonstrate a product's features to answer an
objection (but make sure it works before attempting it in a sales
demonstration).
 Third Party Use a testimonial from a previous customer or another
neutral person.
 Boomerang Use a friendly, helpful tone to explain how the objection
is really a selling point.
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Frameworks 8.4
Close
 Obtaining a decision to purchase
 Closing the sale is obtaining positive agreement from the
customer to buy.
 Close the sale when your customer is ready to buy. Some
customers are ready to buy sooner than others, be flexible.
 Look for buying signals, the things a customer does that
indicate a readiness to buy, such as facial expressions, actions,
and comments.
 A trial close is an initial effort to close a sale.
 Attempt a trial close to test the readiness of the customer and
your interpretation of a positive buying signal.
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Frameworks 8.4
Closing Techniques
 Which or Choice Close Encourage a customer to make a
decision between two items.
 Standing-Room-Only close (SRO) Use this when a product
is in short supply or when the price will be going up in the near
future. Should only be used when it is TRUE.
 Direct Close Ask for the sale with non-threatening questions or
statements that get the customer ready for the close.
 Service Close Explain services that overcome obstacles or
problems: gift-wrapping, a return policy, special sales
arrangements, warranties and guarantees, bonuses or premiums,
and credit or payment terms.
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Frameworks 8.4
Suggestion Selling
 Suggest other products customers may see as valuable.
 Offering additional products or services after an initial
sale in order to increase customer satisfaction.
 Suggestion selling should be attempted after the customer
has made a commitment to buy, but before payment is made
or the order written.
 Offering related merchandise can increase the use or
enjoyment of the customer’s original purchase.
 Recommending larger quantities usually works in retail
settings when selling inexpensive items or when money,
time, and/or convenience will be saved.
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Frameworks 8.4
Follow-up
 Continued contact to ensure satisfaction, determine
other needs, and build relationships.
 Making contact with the customer after the sale to
ensure satisfaction.
 Relationship marketing involves the strategies
businesses use to stay close to their customers. Think of
after-sale activities as part of an ongoing dialogue with
customers in preparation for future sales.
 Example: Harley Davidson’s club for motorcycle owners
offers insurance and travel assistance.
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Frameworks 8.4
Following Up
After The Sale
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Chapter 17
Following Up and Asking for Referrals
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Chapter 17
Before The Customer Leaves
 Before the customer departs or before you leave your
client's office you should:
 Reassure the person of their wise buying choices.
 Take the time to educate your customer about any
special care or specific instructions for their purchase.
 Tell them when to expect delivery, if applicable.
 Thank the customer, even if they don’t buy.
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Providing Sales Support
 For selling to be effective, the salesperson must receive
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support from many parts of the business.
Marketing-information management – salespeople need
information about customers and products.
Financing – some customers need financing.
Pricing – are prices negotiable? Who has authority?
Promotion – salespeople need this information.
Product/service management – salespeople can provide
feedback about customer needs.
Distribution – reliable delivery must be available for
customers. Salespeople must have information on delivery
schedules and costs when they work with customers.
Video – Fraud in Selling
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Test Time!
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