CATA Curricular Activities Code AGRICULTURAL SALES Revised 6/2010 Purpose and Standards The purpose of the Agriculture Sales Career Development Event is to provide an individual with the basic skills to take advantage of the career opportunities offered in the agricultural sales field. Sales are an essential part of a market economy. Agricultural products benefit from sales skills, both for inputs for production and the marketing of the products. The California State Standards addressed by this career development event include the following: Foundation Standards: History – Social Science: 12.2.2 – 12.2.7; 12.2.10; 12.4; 12.4.3. Reading: 2.1; 2.3; 2.4; 2.7. Writing: 1.2; 1.5; 2.6. Listening & Speaking: 1.1; 1.7; 1.8; 1.14; 2.2; 2.3; 2.4. Career Planning & Management: 3.1; 3.5. Technology: 4.2; 4.3. Problem Solving: 5.1 – 5.3. Responsibility & Flexibility: 7.1 – 7.3; 7.5; 7.6. Ethics & Legal Responsibilities: 8.3. Leadership & Teamwork: 9.1 – 9.6. Technical Knowledge & Skills: 10.2. Pathway Standards: Each year the practicum and marketing presentation will focus around one of the seven industry standards. Those pathway standards will vary as applicable to that industry sector being addressed in the given year. Agricultural Pathway Standards: A7.0-A7.5; A8.0-A8.3. Objectives The objective is to develop the skill sets necessary to be successful in sales. These would include the following: A. Communication Skills 1. Verbal Communication. 2. Written Communication. 3. Interactive Communication - to be able to listen and question in order to gather information. B. Product Knowledge 1. Features and benefits of a product. 2. Identifying potential customer objections. 3. Knowledge of proper product use. C. Sales Process 1. Identifying prospective customers through marketing data. 2. Developing an approach that introduces your product to your prospective customer. 3. Develop a sales call that determines and addresses customers needs and objections. 4. Attempt trial closes to confirm customer interest. 5. Understand the basic business structure necessary to sell and deliver a product. 6. Attempt to close the sale by asking the customer to make a buying decision. D. Maintaining Customers 1. Establish and build customer confidence in you and your product. 106754559 1 CATA Curricular Activities Code Agricultural Sales 2. Address customer complaints including: a. Defective merchandise. b. Maintain customer contact and place additional orders for sales. c. Review product performance. Classes The agricultural sales contest will consist of four parts: an oral sales presentation, an objective test, one sales situation practicum and a team sales situation. The contest will be a team event consisting of four students. All team members will participate in all components of the contest. Contest coordinators should make every effort to allow coaches, parents, guests, and student contestants to observe the activities of the contest as described below. There will be no contact between participants and other observers. The contest will take place in two parts. In the first portion of the contest all contestants will participate in the individual portion of the contest (objective test, practicum, and the sales presentation). The top 50% of participating teams (up to 10 teams) will move on to the second portion of the contest to compete for team and individual awards. The second portion of the contest will include the team sales situation. Those competing in both portions of the contest will be eligible for 200 total possible points per team member and 200 total possible points for the team sales presentation: Class Sales Presentation Objective Test (25 @ 2 pts each) Practicum – 1 @ 50 pts Team Sales Situation TOTAL Individual Team 100 points 400 50 points 200 50 points 200 N/A 200 200 1000 Tie Breaker Should a tie occur in the individual or team scores, the tie will be broken by: 1. The highest sales presentation score. 2. If the tie cannot be broken using the sales presentation score, then the highest practicum score will be used. 3. If a tie still exists, the highest written test score will be used to break the tie. Sub-contest Awards Sub-contest awards will be given for high teams and individuals in the following areas: Sales Presentation, Objective Test, and Practicum and for the Team Sales Situation 106754559 2 CATA Curricular Activities Code Agricultural Sales Rules I. Sales Presentation A. Official FFA dress required. B. The contestant will select an agricultural product representing one of the seven instructional areas: 1. Agricultural Mechanics 2. Agricultural Production 3. Agricultural Products and Processing 4. Agricultural Supplies and Services 5. Forestry 6. Natural Resources and Rural Recreation 7. Ornamental Horticulture C. Three copies of the contestant's project summary sheet (see D) will be given to the contest coordinator at the contest site by the contestant. D. Guidelines for the project summary sheet (one page typed). 1. Contestant name 2. Representation (Company-Chapter) 3. Product to be sold 4. Statement of Situation (Role customer is to play) 5. Features and Benefits of the Product 6. Method of Demonstration 7. Sales Call Objective 8. Product or service price 9. Examples of two or more competing products and their prices E. Each contestant may briefly introduce the sales situation for the judges prior to the sales presentation. The purpose of the introduction is to describe the location, prior contacts with the customer, and any other information that will help set the scene for the presentation. F. Each contestant will be allowed ten (10) minutes for the sales presentation with a verbal time warning at eight (8) minutes. A timekeeper will say "WARNING" loudly and clearly at eight (8) minutes. The presentation will conclude at ten (10) minutes. An additional two (2) minutes will be allowed for judges to ask questions relating to the sales presentation. G. The sales presentation will operate with insert one judge. Not more than two team members from any chapter will be judged by the same set of judges. H. A statistical standardization process will be used for scoring. I. The sales presentations will be open to viewing by coaches, parents and guests. Student contestants who have completed their sales presentations and are free from other contest responsibilities may also observe this portion of the contest. J. Evaluation Criteria (100 points total) 1. Preapproach (30 points) a) Project Summary Sheet b) Preparation for sale c) Product knowledge 2. Approach (10 points) a) First impressions 106754559 3 CATA Curricular Activities Code II. III. Agricultural Sales b) Create customer attention c) Determine customer wants d) Establish rapport e) Ask leading questions f) Demonstrate good listening skills 3. Demonstration (30 points) a) Product Features and Benefits relevant to customer wants b) Allow customer to participate c) Confirming customer interest (trial close) 4. Handling customer objections (10 points) a) Identify customer objections b) Handle customer objections 5. Closing the sale (20 points) a) Ask for the order b) Recognize closing opportunities K. Each student is required to bring their own presentation materials for individual sales presentations. No sharing of materials will be allowed for the individual sales presentations. Objective Test A. The objective test of the Agricultural Sales Contest is designed to test team members' understanding of the professional sales process, the role that selling plays in the marketing of agricultural products and the knowledge possessed by students relative to the content. B. Team members will work individually. C. The test will consist of 25 multiple choice questions with 30 minutes allowed for completion of this section of the contest. D. Fifty points are allowed for this section of the contest. Two points per question. E. The test will be based on "Selling - Helping Customers Buy." F. The test will consist of 25 questions derived from this text. The questions will be based on general and pertinent information on Agriculture Sales contained within the text. Practicum – Sales Situations All participants will compete in the same sales situation. It is at the discretion of the contest coordinators to determine which one of the three sales situations will be selected to be used at the contest. These sales situations will be announced at team orientation after registration. The sales situation will be worth a total of 50 points per team member. At the discretion of the contest coordinator, this portion of the contest may be either a customer relations, order taking/customer service or prospecting for new customers. The sales situations should follow the rotational theme schedule. 1. 2010 Horticulture Industry 2. 2011 Animal Industry 3. 2012 Crop Industry 4. 2013 Natural Resources 5. 2014 Agriculture Mechanics A. Customer Relations 106754559 4 CATA Curricular Activities Code Agricultural Sales 1. The contest chairperson will select a scenario realistically portraying a customer relations problem which may occur in agricultural sales and involves both technical information and human relation problems. The salesperson (contestant) will be provided with the company policy or philosophy concerning merchandise return and refunds prior to performing the scenario. It is possible the salesperson will have to develop a solution independently if the company policy does not specify one for the particular scenario. In this case, the salesperson will be evaluated on their creativity, judgment and application of the philosophy of the company. The participant will have to obtain the majority of the information necessary to solve the problem by interaction with the customer. 2. Types of problems which may be used are: 3. 4. 5. 6. 7. 1. Return of merchandise sold. 2. Defective merchandise. 3. Lack of understanding in use of merchandise. 4. Calming and regaining trust of a dissatisfied customer. Upon assembling as a group, contestants will draw for the order in which they compete. Six (6) minutes will be allowed for the contestant to demonstrate his/her customer relations skills. At four (4) minutes there will be a verbal warning given. The contestant will perform in a room in which a "customer" will enter and explain a specific complaint. Performing within the guidelines provided to the contestant prior to entry into the contest room, the contestant will attempt to work with the customer to determine the basis for the complaint and determine the proper course of action to resolve the issue. The person-to-person customer relations scenario will be open to viewing by coaches, parents, and guests. Student contestants who have completed this scenario and are free of other contest responsibilities may also observe this portion of the contest. Two judges will be used in each room and their scores will be averaged. One judge may serve as the customer. Contest coordinators may need two or more sets of judges to complete the contest in a timely manner. If more than one set of judges is used, the first two contestants should be evaluated through a consensus by all judges as is done in the sales presentation. Evaluation Criteria for Customer Relations (50 points) a. Introduction (5 points) (1) Identify yourself (2) Purpose of call (if applicable) (3) Professionalism (4) Empathy (5) Grammar b. Attitude (5 points) (1) Pleasant 106754559 5 CATA Curricular Activities Code Agricultural Sales (2) Friendly (3) Establish rapport c. Information via Customer Interaction (20 points) (1) Determine the problem (2) Clarify the problem d. Develop Solution (15 points) (1) Evidence of product knowledge (2) Overcome customer objections e. Closing (5 points) (1) Get customer agreement (2) Review and closure B. Order Taking/Customer Service 1. The contest participants will demonstrate the skills used when taking an order and incorporating problem solving and/or suggestive selling of additional product(s). 2. The contest coordinators will select a scenario typical for an agricultural supply company. The participants will be provided with a promotional flyer, catalog, or other promotional material that has been mass mailed to select agricultural prospects and customers. Participants will also be provided with an order form and any updated information since the mailing of the promotional material. This may include such information as out of stock items or price updates. 3. Participants will be given the scenario and supportive materials ten (10) minutes before the event and will have six (6) minutes to demonstrate the skills interactively with all judges with a four (4) minutes warning. 4. Scoring Criteria (50 points) a. Greeting (5 points) (1) Pleasant and businesslike b. Clarity and confirm the order (20 points) (1) Repeat each item (2) Include product numbers if appropriate (3) Confirm availability c. Suggestive/consultative selling (20 points) (1) Suggest related products (2) Note items on special (3) Offer substitutes for items out of stock or no longer carried 106754559 6 CATA Curricular Activities Code Agricultural Sales d. Close the order (5 points) (1) Repeat the order (2) Ask for other needs (3) Confirm the delivery date C. Prospecting for New Customers The contest coordinators will select a sales situation. The participants will be given a product description. The participants will then approach a customer and through interaction with that customer determine if they are a prospect. The participants will then attempt to sell that product to the customer or gain an appointment for a future sales call, whichever is appropriate for the scenario. The participants will have ten (10) minutes to read over the product description and the sales situation. Six (6) minutes will be allowed with a four (4) minutes warning to interact with the judges. The situation will be interactive with all judges. Prospecting for New Customers Scoring Criteria (50 points) a. Greeting/Opening Statement (15 points) (1) Clearly identify self and company (2) Build interest in product/service b. Qualify the prospect (15 points) (1) Question for customer needs (2) Demonstrate good listening skills c. Provide features and benefits (10 points) (1) Describe features and benefits appropriate to the prospects needs d. Close the interview or sale (10 points) (1) Ask for the order (2) Ask for an appointment (3) Review the order or commitment IV. Team Sales Situation A. The team sales situation is a team activity. Team members will work together to demonstrate group dynamics, problem solving, data analysis, decision making and oral and written communication skills. B. The following information will be provided to the team as if they were a group of professional salespeople: a. A product (including features and price – if applicable) b. Market situation (including competition) c. Several potential customers C. The team will then develop all the strategies necessary to prepare to sell the product in a face to face sales call. This strategy should include but not be limited to: a. Determining potential customer needs and wants. 106754559 7 CATA Curricular Activities Code Agricultural Sales b. Identifying features and benefits of the products to address customers’ needs and wants. c. Identifying potential customer objections and prepare to address them. d. Identifying potentially related products and suggested selling strategies. e. Developing a sales plan and goals for each customer D. The team will be judged on team work and equal involvement during the observed working time of this team sales situation. The team will also be judged on the final presentation. It is critical that the team not only state what they choose to do but why they choose to do it. There are no absolute right or wrong answers in selling. Demonstrating the basic fundamentals necessary to accomplish the team’s goal is essential. a. The judges will act as an audience during the work time and presentation time. They will not engage in dialog during the presentation. b. Each team will be given twenty-five (25) minutes to examine all information provided, discuss and develop ideas and prepare a ten (10) minutes presentation. The judges will then be allowed an additional five (5) minutes for questions. c. The judges will watch a portion of the process as determined by the contest coordinator, so it is important that all team members speak up so the judges can hear what is being said and that all team members participate. d. Teams may bring a laptop computer and utilize Power Point for the team sales situation only. If a laptop computer is utilized, the presentation will be presented on a laptop screen. Projectors will not be allowed. Desktop computers will not be allowed. Each team will be responsible for the power supply for their computer. e. Scoring Criteria for Team Sales Situation – 200 points total i. Team Work Evaluation – 50 points 1. Leadership roles easily perceived 2. Participation by each member of the team 3. Members demonstrated effective listening and communication skills ii. Analysis of Information – 40 points 1. Clearly identify the product features and the market for that product 2. Provided information and data is analyzed and utilized 3. Demonstrate the use of basic skills iii. Quality of Team’s Solution – 70 points 1. Identify sales goal for each customer and/or market segment 2. Identify the key benefits of the product 3. Identify potential customer objections and develop strategies to address those objections 4. Possible solutions are discussed and analyzed 5. Justify decisions iv. Presentation – 20 points 1. Presents team’s solutions 2. Overall delivery professional and well thought out 106754559 8 CATA Curricular Activities Code V. VI. Agricultural Sales 3. Presentation is clear and effective 4. All team members participated v. Response to Questions – 20 points 1. Questions will come from: a. Teamwork evaluation b. Analysis of information c. Presentation Test References: Ditzenberger & Kidney, Selling-Helping Customers Buy. South - Western Publishing Co., Cincinnati, Ohio, 1986. To order: 1-800-543-7972 Stock number: S20; Cost $14.95. Team Training Guides Available: Agricultural Business Sales and Marketing Curriculum Guide, Instructional Materials Laboratory, 10 Industrial Education Building, University of Missouri, Columbia, 1989. To order: 1-800-669-2465; Instructional Materials Laboratory, 2316 Industrial Drive, Columbia, Missouri, 65202. Cost $46.75, Student Handout $12.50 Brown and Kirkwood, Developing the Agricultural Sales Professional (video tape series), Farm Credit Services, St. Paul, Minnesota, 1990. To order: 612-221-1458; Farm Credit Services, Education Training Department, 375 Jackson Street, St. Paul, Minnesota, 55102. Video Titles: Building Persuasive Sales Skills; Cost $94.95 Assisting Customer Needs; Cost $94.95Communicating Product Benefits; Cost $94.95 Getting and Giving Commitment; Cost $94.95 Includes: Video Tape, Facilitator's Guide; Student materials for each video tape are $9.50 each. McGuire, James E., Advertising and Display in Agribusiness, Glencoe/McGraw-Hill, Manchester, Missouri, 1979. To order: 1-800-334-7344; 13955 Manchester Road, Manchester, Missouri, 63011. Order number: ISBN 0070419620; Cost $19.96 (going out of print in 1991). Miller, Larry E., Selling in Agribusiness, Glencoe/McGraw-Hill, Manchester, Missouri, 1979. To order: 1-800-334-7344; 13955 Manchester Road, Manchester, Missouri, 63011. Order number: ISBN 007045129X; Cost $19.96 (going out of print in 1991) Samson and Little, Advertising Planning and Techniques, South - Western Publishing Company, Cincinnati, Ohio, 1985. To order: 1-800-543-7972 Stock Number D20; Cost $8.15. Samson and Little, Visual Merchandising-Planning and Techniques. South-Western Publishing Company, Cincinnati, Ohio, 1985. To order: 1-800-543-7972 Stock Number D21; Cost $8.15. 106754559 9