CHAPTERS 1-6 LECTURE OUTLINES FOR

FUTRELL (2014) FUNDAMENTALS OF SELLING

 

CHAPTER 1

The Life, Times, and Career of the Professional Salesperson

LECTURE OUTLINE

 

I.               WHAT IS SELLING?

A.             Traditional definition of personal selling refers to the personal communication of information to persuade a prospective customer to buy something—a good, a service, an idea or something else—which satisfies that individual’s needs.

B.             Personal selling today:  In early 2000, corporate corruption contributed to the negative image of all business professions.

1.     Insurance salespeople, advertising practitioners and used car salespeople are the lowest rated job categories in perceived honesty and ethical standards.

2.     What about you?  Take Dr. Futrell’s poll (//futrell-www.tamu.edu):

a.     What does the general public think about salespeople?

b.     What do you think about salespeople?

c.     After graduation, would you accept a sales job?

d.     The main reasons for low marks may be greed and lack of trustworthiness.

II.             A NEW DEFINITION OF PERSONAL SELLING refers to the personal communication of information to unselfishly persuade a prospective customer to buy something—a good, a service, an idea or something else—which satisfies that individual’s needs.

A.             Think of your grandmother. Would you mistreat your grandmother in a sales transaction?

B.             Salespeople should handle their customers with unselfish and ethical service.

III.           THE GOLDEN RULE OF PERSONAL SELLING refers to the sales philosophy of unselfishly treating others as you would like to be treated.

A.             There are different views of the Golden Rule:

1.     Negative form: “If you don’t like to get cheated in a purchase, don’t cheat others.”

2.     Positive form: “If you like to receive the best price, then offer the best price to your customers.”

3.     The Golden Rule is all about trying to keep somebody else warm even if it means that we get cold in the process.

4.     Salesperson differences can be explained by the individual’s level of self-interest.

B.             Everybody sells.

1.     You develop communications techniques for getting your way in life.

2.     Your ability to communicate effectively is a key to success in life.

IV.           WHAT SALESPEOPLE ARE PAID TO DO

A.             Salespeople need to sell something “today” to meet performance goals for:

1.     Themselves.

2.     Their employer.

3.     Their customers.

V.             WHY CHOOSE A SALES CAREER?

A.             There are six major reasons for choosing a career in sales:

1.     The opportunity to provide service to others.

2.     The variety of jobs available.

3.     Freedom of being on your own.

4.     The challenge of selling.

5.     The opportunity for advancement.

6.     The rewards from a sales career.

B.         Providing service means helping others.

1.     A sales career provides the opportunity for service and an emotional purpose in life gained from helping others.

a.     For many, service is the number one reason for choosing a sales career.

b.     Service refers to making a contribution the welfare of others.

C.             Types of sales jobs:

1.     Selling in retail - A retail salesperson sells goods or services to consumers for their personal, non-business use.

a.     Three common types of retail sellers:

(1)   In-store salespersons.

(2)   Direct sellers who sell face-to-face away from a fixed location.

(3)   Telephone salespersons.

2.     Selling for a wholesaler - Wholesalers buy products from manufacturers and other wholesalers and sell to other organizations.

a.     A wholesaler salesperson sells products to parties for:

(1)  Resale.

(2)  Use in producing other goods or services.

(3)  Operating an organization.

b.     Firms engaged in wholesaling are called wholesaling middlemen. They vary greatly in:

(1)  The products they sell.

(2)  The markets to which they sell.

(3)  Their methods of operation.

3.     Types of manufacturer’s sales representatives:

a.     Account representatives - call on a large number of already established customers.

b.     A detail salesperson - concentrates on performing promotional activities and introducing new products rather than directly soliciting orders.

c.     A sales engineer - sells products that call for technical know-how.

d.     An industrial products salesperson (non-technical) sells tangible products to industrial buyers.

e.     A service salesperson - sells intangible products such as financial services, advertising, or computer repair services.

f.      An order-getter - gets new and repeat business using creative sales strategy and a well-executed sales presentation.

(1)  An order-getter has two selling challenges:

(a)   Must often create discontent with what the prospect already has before beginning to sell constructively.

(b)  Often has to overcome the most powerful and obstinate resistance.

g.     An order-taker - asks what the customer wants or waits for the customer to order.

D.             Freedom of Action - You’re on your own with very little direct supervision.

E.             The Job Challenge is always there, which means great responsibility.

F.              Opportunities for advancement are great.

1.     Some companies promote salespeople to managerial positions very quickly. For most companies the path to a sales management position begins with an entry level position.

a.     A sales personnel career path.

(1)  Junior or trainee level.

(a)   Learn the attitudes and activities of the company’s salespeople.

(b)  Become familiar with customer’s attitudes toward the company, its products, and its salespeople.

(c)   Gain first-hand knowledge of products and their application.

(d)  Become seasoned in the world of business.

(2)  Regular sales position.

(3)  Senior sales positions or key account sales positions contact larger, more important customers.

2.     There are two career paths:

a.     Permanent salespeople.

b.     Management.

G.             Rewards - The sky’s the limit!

1.     Two types of rewards:

a.     Non-financial (i.e. psychological income or intrinsic rewards).

(1)  Feeling of self-worth and accomplishment.

(2)  Realization that the job is important.

b.     Financial:

(1)  The opportunity to earn large salaries.

(2)  Rewarded on basis of performance.

(3)  Comparatively large beginning salaries.

(4)  Overall, salaries for field sales personnel have been moving rapidly upward.

H.             You can move quickly into management.

1.     District sales manager.

a.     First managerial level.

b.     Promotion usually occurs within the first three years.

2.     Compensation of sales managers.

a.     A beginning sales job is the stepping stone to higher positions and higher salaries.

b.     Both corporate and field sales managers receive higher salaries than others at the same organizational level.

VI.           IS A SALES CAREER RIGHT FOR YOU?

A.             Seven questions to ask yourself:

1.     What are my past accomplishments?

2.     What are my future goals?

3.     Do I want to have the responsibility of a sales job?

4.     Do I mind travel? How much travel is acceptable?

5.     How much freedom do I want in the job?

6.     Do I have the personality characteristics for the job?

7.     Am I willing to transfer to another city? Another state?

B.             Once you have answered these questions, you should:

1.     Determine the industries, types of products and services, and specific companies in which you have an interest.

2.     Talk to people presently or formerly involved in sales.

C.             A Sales Manager’s view of the recruit.

1.     What are the applicants judged on?

a.     Appearance

b.     Communication skills

c.     Maturity

d.     Personality

e.     Experience

f.      Enthusiasm

g.     Interest in the job

VII.         SUCCESS IN SELLING-WHAT DOES IT TAKE?

A.             Think of success spelled with four s’s as in “ssuccess”.

1.     S - Success begins with love.

a.     The successful salesperson is an individual who loves selling.

b.     Of the eight, love is the number one characteristic of successful salespeople.

2.     S - Service to others - Salespeople love to help others fulfill their needs through selling their products.

3.     U - Use the Golden Rule of Selling.

a.     Today’s salesperson needs to treat others as he would like to be treated.

b.     People like to buy, not be sold.

4.     C - Communication ability.

a.     Good salespeople are good communicators. Great salespeople are great communicators.

b.     Top salespeople speak the other person’s language.

5.     C - Characteristics for the Job - It helps if you possess the personal characteristics needed for a sales career.

6.     E - Excels at strategic thinking.

a.     High performing salespeople tend to be strategic problem solvers for their customers.

b.     Match up product’s benefits with customer’s needs.

7.     S - Sales knowledge at the M.D. level.

a.     Top salespeople have mastered the basic competencies of product knowledge and selling skills.

b.     As goods and services become more complex, companies place more emphasis on the training of salespeople.

c.     Knowledge is power, but enthusiasm pulls the switch.

8.     S - Stamina for the challenge.

a.     Today’s salesperson needs to be physically, mentally and spiritually prepared to meet the daily challenges of a sales career.

b.     The increased feeling of well-being gained from exercise transmits itself to the body and mind.

c.     People’s faith may direct everything they do on the job, ranging from how customers are treated to how ethical they act toward their employer.

VIII.       Back to CHARACTERISTICS FOR THE JOB. A salesperson can choose to be like the traditional salesperson we all do not care for, or he or she can be like the salesperson who is truly people oriented.

A.             Caring, Joy and Harmony. Through caring comes the joy of helping others.

B.             Patience, Kindness and Morally Ethical.

1.     Let the customer decide when to buy instead of pressuring for a quick decision.

2.     By showing that customers come first, salespeople are more likely to gain the trust of the customer.

C.       Faithful, Fair, and Self-Controlled.

1.  The salesperson will spend the time necessary to help, not just to make the sale and never be heard from again.

2.  Self-control should be exhibited in closing a sale - Is consideration only given to the salesperson’s needs and thus pressure placed on the customer to buy something not needed?

3.     Self-control involves discipline.

a.     Often the biggest challenge to success is not out there in the sales territory, it’s within us.

b.     Discipline yourself to set priorities in your life - What comes first, your job or your family?

D.       Do success characteristics describe you?

1.     Only your self-imposed limitations can hold you back.

2.     Move something from the impossible to the possible.  Go beyond the limits!

IX.           RELATIONSHIP SELLING.

A.             The salesperson of today is a pro.

1.     Relationship selling - the process of professionally providing information for helping customers make intelligent actions to achieve their short- and long-term objectives.

2.     Four main elements (ABC’s) in the customer relationship process used by salespeople to build relationships are:

a.     Analyze customer needs.

b.     Present product Benefits.

c.     Gain Commitment for the purchase.

d.     Provide excellent Service in order to maintain and grow the relationship.

B.             Sales jobs are different from other jobs in several ways.

1.     Since salespeople represent their company, opinions of a company and its products are often based on the salespeople.

2.     The outside salesperson typically operates with little direct supervision and needs a high degree of motivation.

3.     Salespeople probably need more tact, diplomacy, and social poise.

4.     Salespeople are authorized to spend company funds on entertainment, transportation, and other business expenses.

5.     Selling requires mental toughness and physical stamina.

X.             WHAT DOES A PROFESSIONAL SALESPERSON DO?

A.             A Territory Manager plans, organizes, and executes activities that increase the sales and profits in his territory (i.e. a group of customers assigned to him in a geographical area).

B.             A territorial manager performs nine functions:

1.     Creates new customers.

a.     Locate people and/or organizations that have the potential to buy their products

b.     Needs the ability to close the sale.

2.     Sells more to current customers.

3.     Builds long-term relationships with customers - Earning the opportunity to sell a present customer more product means the salesperson must have a professional relationship with people and organizations.

4.     Provides solutions to customers’ problems - Shows how these problems can be solved through the purchase of his company’s products and services.

5.     Provides service to customers such as:

a.     Handling complaints.

b.     Returning damaged merchandise.

c.     Providing samples.

d.     Suggesting business opportunities.

e.     Recommending promotional techniques.

f.      Working at the customer’s business.

g.     In-store demonstrations.

h.     Accompany distributor’s salespeople on sales calls.

6.     Helps customers resell products to their customers.

a.      Contacts both wholesale customers (distributors) and their retail customers.

b.      Develops promotional programs for retail customers such as:

(1)  Advertising materials.

(2)  Store demonstrations.

(3)  Setting up product displays.

7.     Helps customers use products after purchase - Help the customer obtain full benefit from the product.

8.     Builds goodwill with customers - Develops a personal, friendly, business relationship with anyone who may influence a buying decision.

9.     Provides company with market information such as:

a.     Competitor’s activities.

b.     Customers’ reactions to new products.

c.     Complaints about products and policies.

d.     Market opportunities.

e.     His own job activities.

XI.           REFLECT BACK - Review these nine functions to see what they mean and if you could do any or all of them. Carefully think about the second and third functions. To be successful, a salesperson must close sales and build relationships with the same person and/or organization in order to see more business. When combined and properly implemented, these nine job activities produce increased sales for the organization and more rewards for the salesperson.

XII.         THE FUTURE FOR SALESPEOPLE.

A.             Learning selling skills.

1.     Both an art and a science.

a.     Requires practice.

b.     Requires training.

2.     Conceptual skills - ability to see selling process as a whole and relationships among its parts.

3.     Human skills - ability to work with and through others.

4.     Technical skills - understanding and being proficient at specific tasks.

B.             Preparing for the 21st Century - Changes are occurring which will require salespeople to be knowledgeable in new areas such as:

1.     International dealings.

2.     Sales force’s reflecting customer diversity.

3.     Customer partnering to keep current customers.

4.     Increasing use of technology (e-selling).

5.     Ethical Megatrends.

XIII.       THE PLAN OF YOUR TEXTBOOK.

A.             This book will provide the student with the fundamentals of what Selling is all about.

B.             Major topics include:

1.     The role of the sales force in the firm’s marketing efforts.

2.     The social, ethical, and legal issues in selling.

3.     Why people and organizations buy what they do.

4.     Verbal and non-verbal communications.

5.     The importance of knowing your own, and your competitor’s products.

6.     An in-depth discussion of the selling process.

7.     Self, time, and sales territory management.

8.     Important functions of sales management.

XIV.      BUILDING RELATIONSHIPS THROUGH THE SALES PROCESS

A.             The sales process refers to a logical, sequential series of actions that can greatly increase the chances of making a sale.

B.             Ten steps in the selling process:

1.     Prospecting

2.     Preapproach

3.     Approach

4.     Presentation

5.     Trial Close

6.     Objections

7.     Meet Objections

8.     Trial Close

9.     Close

10.  Follow-up

 

CHAPTER I APPENDIX

The Golden Rule of Personal Selling as Told by a Salesperson

LECTURE OUTLINE

 

I.               THE GOLDEN RULE OF SELLING

A.    Base your sales philosophy on unselfishly treating others as you would like to be treated.

II.             OTHERS INCLUDE COMPETITORS

A.    The Golden Rule of Selling especially applies to your relationship with competitors.

B.    If your products do not fulfill a customer’s needs, then possibly suggest or discuss a competitor’s product.

III.           SALES IS YOUR CALLING TO SERVE

A.    Your occupation is not work – it’s what you do. It defines who you are.

B.    Serving others provides you with an emotional purpose in life.

IV.           TO SERVE YOU NEED KNOWLEDGE

A.    Being knowledgeable on products and selling skills allows you to provide a high level of customer service.

V.             CUSTOMERS NOTICE INTEGRITY

A.    Your customers trust that you are looking out for their best interest because you are a person of integrity.

B.    To you, integrity is who you are when no one is looking.

VI.           PERSONAL GAIN IS NOT YOUR GOAL

A.    You are never concerned about sales goals, only customers.

VII.         OTHERS COME FIRST

A.    Build up a reputation as a volunteer in your community.

VIII.       THE GOLDEN  RULE IS NOT

A.    Corruptible It Is Not

1.     It is composed of pure gold. There are no impurities in it.

B.    Self-Serving It Is Not

1.     There is no reciprocity involved in applying the Golden Rule to anything.

C.    Comprehensive It Is Not

1.     There is more involved in being a good person. It will not solve every problem.

D.    Easy To Follow It Is Not

IX.           THE GREAT HARVEST LAW OF SALES

A.    How you treat others will often determine how you will be treated.

B.    Small acts of kindness towards someone over time often results in returns greater than were sown.

C.    Golden Rule Paradox

1.     By placing customers first, you often will see increases in sales, greater compensation, and better job opportunities.

2.     You actually receive more than given to the customer or employer.

X.             THE COMMON DENOMINATOR OF SALES SUCCESS

A.    The common denominator (trait) of successful salespeople

1.     Unselfishly and sacrificially “caring” for prospects, and others, by placing their interests before our desires.

XI.           THE FRUITS OF THE SELLING SPIRIT

A.    Applying the Golden Rule to work and life results in a fruitful life.

 

CHAPTER 2

Relationship Marketing: Where Personal Selling Fits

LECTURE OUTLINE

I.               WHAT IS THE PURPOSE OF BUSINESS?

A.      The purpose of business is to increase the general well-being of humankind through the sale of goods and services.

B.      This requires making a profit in order to operate the business and provide beneficial products to the marketplace.

C.      Profit is a means to an end.

D.      Two major functions of business are:

                     1.  The production of goods or creation of services.

                     2.  The marketing of goods and services.

E.       The Primary Goal of Business

                     1.  Transform the marketplace and workplace into an environment                  

                           where everyone is treated fairly.

II.             WHAT IS MARKETING?

A.             To be successful, businesspeople must do two things:

1.     Determine people's needs and wants.

2.     Produce goods and services that satisfy them.

B.             Marketing – the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.  It involves a diverse set of activities such as:

1.     The development of products (products refer to goods or services).

2.     The pricing of products.

3.     The promotion of products.

4.     The distribution of products.

C.             Marketing is not limited to business - Anytime you try to persuade someone to do something, you are marketing.

D.             Exchanges and Transactions.

1.     Exchanges - obtaining desired products through transactions.

2.     Transactions - trades of value.

3.     Relationships - formed through exchanges and transactions.

III.           CUSTOMER ORIENTATION’S EVOLUTION.

A.             The transformation to a customer-oriented attitude.

1.     The Production Concept.

a.     Pre-Great Depression, 1930’s.

b.     “If you build a better mouse trap, the world will beat a path to your door.”

2.     The Selling Concept.

a.     Early 1940’s through WWII.

b.     Products produced without regard for customer needs.

c.     Began advertising and personal selling which emphasized product knowledge.

3.     The Marketing Concept.

a.     Began in the 1950’s.

b.     Three fundamental beliefs:

(1)  Customer oriented planning and operations.

(2)  The company’s goal should be profitable sales volume.

(3)  Organizationally coordinated marketing.

c.     Marketing concept - customer’s want-satisfaction is economic and social justification for existence.

d.     Difference between Selling and Marketing concepts.

(1)  Selling—emphasis on product.

(2)  Marketing—emphasis on customers’ wants.

IV.           MARKETING’S IMPORTANCE IN THE FIRM

A.             Product must be marketed to consumers before its full value is realized.

B.             Marketing people have four objectives to accomplish:

1.     Maximize sales of existing products in existing markets.

2.     Develop and sell new products.

3.     Develop new markets for existing or new products.

4.     Provide the quality of service necessary for customers to be satisfied with their transaction.

C.             Marketing generates sales.

D.             Marketing provides quality customer service.

V.             ESSENTIALS OF A FIRM’S MARKETING EFFORT

A.             To determine the needs of their customers.

B.             To create and maintain an effective marketing mix that satisfies customer needs.

C.             Marketing Mix Elements:

1.     Product.

2.     Price.

3.     Distribution or Place.

4.     Promotion.

D.             Product - It’s more than you think.

1.     Value-added Benefits - benefits received that are not included in the purchase price of the individual good or service.

2.     Consumer products.

3.     Industrial products.

E.             Price - Value or worth of a product - It's Important to Success.

F.              Distribution - the channel structure used to transfer products from an organization to its customers.

1.     Customers fall into three groups:

a.     Households.

b.     Firms.

c.     Governments.

2.     Resellers are:

a.     Wholesalers.

b.     Retailers.

G.             Promotion - increases company sales by communicating product information to potential customers.

1.     The four parts of the promotion effort are:

a.     Personal selling.

b.     Advertising.

c.     Publicity.

d.     Sales promotion.

H.             Goal of the Marketing Mix - to provide the right product, price, time, and promotion.

I.               Coordination is important.

VI.           RELATIONSHIP MARKETING

A.             Emphasis on creating customers for tomorrow.

B.             Relationship Marketing - creation of customer loyalty. Organizations use a combination of products, price distribution, promotions, and service to achieve this goal. This is based on the idea that important customers need continuous attention.

VII.         RELATIONSHIP MARKETING AND THE SALES FORCE

A.             The four basic questions used as guidelines in defining the role of the sales force are:

1.     How much selling effort is necessary to gain and hold customers?

2.     Is the sales force the best marketing tool?

3.     What type of sales activities will be necessary?

4.     Can the firm gain strength relative to its competition with its sales force?

B.             Personal Selling builds relationships.

1.     The two main functions of personal selling are:

a.     Generate revenue.

b.     Provide services to satisfy customers.

2. Personal Selling:

a.     Is flexible in operation.

b.     Is focused on prospective customers.

c.     Results in actual sales.

C.             Salespeople implement relationship marketing.

VIII.       LEVELS OF CUSTOMER RELATIONSHIP MARKETING

A.             Three general levels:

1.     Transaction selling - the customer is sold to and not contacted again.

2.     Relationship selling - the customer is contacted after the purchase to determine satisfaction and future needs.

3.     Partnering - the seller works to continually improve the customer’s business.

IX.           PARTNERING WITH CUSTOMERS

A.             The criteria which encourages buyers and sellers to share information:

1.     Individual Excellence - both partners add value, and their motives are positive rather than negative.

2.     Importance - both partners want the relationship to work because it helps them meet long-term strategic objectives.

3.     Interdependence - the partners need each other to reach their goal.

4.     Investment - the partners devote financial and other resources to the relationship.

5.     Information - the partners communicate openly about goals, technical data, problems and changing situations.

6.     Integration - the partners develop shared ways of operating; they teach each other and learn from each other.

7.     Institutionalization - the relationship has formal status with clear responsibilities.

8.     Integrity - both partners are trustworthy and honorable.

X.             THE NEW CONSULTATIVE SELLING

A.             Consultative Selling vs. Traditional Selling:

1.     Consultative Selling - the process of helping the customer achieve strategic short and long-term goals through the use of the seller’s good and/or service.

2.     Traditional selling - the process of strictly gaining and maintaining sales with a customer. There is a minimal amount of involvement between the customers and the salesperson.

B.             Three Roles of Consultative Selling:

1.     Team leaders - coordinate information, resources, and activities needed to support customers before, during, and after the sale.

2.     Business Consultants - give advice and service.

3.     Long-term allies - act as helpers in meeting customers' needs and filling Customer-Seller Relationship Gaps which are buyer-seller post-sale levels of concern for each other.

a.     The buyer’s concern is usually high.

b.     The seller’s concern often decreases.

XI.           E-SELLING: TECHNOLOGY AND INFORMATION BUILDS RELATIONSHIPS - through an increased use of technology, salespeople are becoming faster, better informed, and ultimately more profitable employees.

XII.         WHAT’S A SALESPERSON WORTH? - Salespeople:

A.             Close deals.

B.             Generate revenue to keep the organization in business.

XIII.       THE KEY TO SUCCESS

A.             Excellent salespeople know and satisfy target customers' needs.  These needs are:

1.     Identified by marketing.

2.     Satisfied by salespeople.

B.             Salespeople are aided by the 4 P's of Marketing:

1.     Product - provided by the company.

2.     Price and Place - determined by the buyer-seller combination.

3.     Promotion - informs buyers about the product.

C.             The salesperson should personally contact the buyer to:

1.     Analyzer needs.

2.     Present product benefits.

3.     Gain commitment or close the sale.

4.     Provide service to ensure customer satisfaction.

 

CHAPTER 3

Ethics First…Then Customer Relationships

LECTURE OUTLINE

I.               WHAT INFLUENCES ETHICAL BEHAVIOR?

A.             The individual’s role:

1.     People behave differently because of their:

a.     Worldviews - people's different beliefs about the world around them.

b.     Morals - people's adherence to right or wrong behavior and right or wrong thinking.

2.     Individuals usually can be placed into one of three levels of moral development:

a.     Pre-conventional — an individual acts in one’s own best interests, and thus follows rules to avoid punishment to receive rewards. Will break moral and legal laws. “What can I get away with?”

b.     Conventional — individual conforms to expectations of others. Upholds moral and legal laws. “What am I legally required to do?”

c.     Principled — an individual lives by an internal set of morals, values and ethics. These are upheld regardless of punishments or majority opinion. “What is the right thing to do?”

B.             The organization’s role is often characterized by pre-conventional or conventional levels of moral behavior.

II.             ARE THERE ANY ETHICAL GUIDELINES?

A.             What does the research say?

1.     American adults said by a 3-to-1 margin that truth is always relative to a person’s situation.

2.     People are most likely to make their moral and ethical decisions on the basis of whatever feels right or comfortable in a situation.

B.             What does one do?

1.     What would you do if you found a bank bag with $125,000? Would you return it to the bank?

2.     What would you do if you found a wallet? Why might you be more likely to return the wallet without taking any of the money?

3.     Out of class, is it alright to copy someone’s homework assignment even when the course syllabus states that you have to do your own work? What keeps you from copying on an exam when your professor is out of the room?

4.     Is it okay to offer a customer a $10,000 trip if they place a $3 million order? Why would you not even question paying for a $20 lunch associated with the same purchase?

C.             Is your conscience reliable?

1.     We all have an internal ultimate moral standard that we use to measure good and evil, right and wrong.

2.     Most of us know not to keep the $125,000 or the wallet or copy someone else’s work, but what would we actually do?

3.     If a person’s value system is at the level 2 stage of development, this person makes decisions based upon the “situation” and what others say and do.

a.     Usually people rationalize their actions, such as, “I will only copy the homework this one time.”

4.     Many people are so accustomed to doing things unethically that they think nothing about it.

D.             Sources of significant influence.

1.     Do your decision factors include your friends, family or things you see on television or in the movies? Do their thoughts on what is ethical sometimes change from day to day?

2.     Basic research by Barna has found that the leading influencers in American society are movies, television, the Internet, books, music, public policy and law, and family.

3.     Wouldn’t it be nice to be able to base your decisions on something that never changes?

4.     The situations businesspeople face are frequently the same, yet many ethical decisions are unique to the situation.

E.             Three guidelines for making ethical decisions.

1.     You need a fixed point of reference that is separate from you so that you and no one else may influence it.

a.     Fixed point of reference — refers to something that provides the correct action to take in any situation and never gets “tailored” to fit an occasion.

b.     Separate from you — refers to something outside yourself that may be used for reference.

c.     No one else may influence it — refers to something that is unchangeable by you or anyone else.  For example, navigators use stars for navigation — the stars are fixed points in the sky that are separate from you and no one can change them.

d.     How does this relate to a person making ethical and moral decisions in life?

F.              Will the Golden Rule Help?

1.     One similarity in virtually all faith-based principles is the presence of a “Golden Rule” concept.

2.     The Golden Rule does not involve reciprocity—“if you do for me, I will do for you.” It is doing for others without expecting something in return.

3.     “Could the Golden Rule serve as a universal, practical, helpful standard for the businessperson’s conduct?”

4.     President Bush thinks so.  He said, “A call to love your neighbor just like you’d like to be loved yourself. It’s a universal call, and it’s a call that has been applicable throughout history. It’s really needed right now.”

5.     Would you consider your faith a fixed point of reference that never changes and is separate from you?

III.           MANAGEMENT’S ETHICAL RESPONSIBILITIES

A.             Ethics — Code of moral principles and values that govern the behaviors of a person or group with respect to what is right or wrong.

B.             Ethical Behavior — treating others fairly.

1.     Being Honest.

2.     Maintaining confidence and trust.

3.     Following the rules.

4.     Conducting yourself in the proper manner.

5.     Treating others fairly.

6.     Demonstrating loyalty to company and responsibility.

7.     Carrying your share of work and responsibility.

C.             An Ethical Dilemma is a situation when each alternative choice or behavior has some undesirable elements due to potentially negative ethical or personal consequences.

IV.           ETHICS IN DEALING WITH SALESPEOPLE

A.             Sales Managers have both social and ethical responsibilities to their sales personnel.

B.             Five ethical considerations by sales managers are:

1.     Level of sales pressure to place on a salesperson.

2.     Decisions affecting territory.

3.     Whether or not to be honest with the salesperson.

4.     What to do with the salesperson who is ill.

5.     What rights do employees have?

a.     Termination-at-will — must now have accurate records which led to an employee’s termination.

b.     Privacy — non-job related information is being taken out of personal files by employers.

c.     Cooperative acceptance — employees are protected by law from acts of discrimination and sexual harassment.

C.             Company benefits of respecting employee rights:

1.     Employees are more productive.

2.     It attracts good sales personnel.

3.     It reduces legal costs.

4.     It reduces wage-increase demands.

V.             SALESPEOPLE’S ETHICS IN DEALING WITH THEIR EMPLOYERS - salespeople, as well as managers, may occasionally:

A.             Misuse company assets – for personal gain or as bribes to customers.

B.             Moonlight – take a second job or college course on company time.

C.             Cheat – not play fair in contests.

D.             Affect other salespeople – the unethical practices of one salesperson can affect other salespeople within the company.

E.             Attempt technology theft – take customer records, after quitting or being fired for his or her or a future employer’s benefit.

VI.           ETHICS IN DEALING WITH OTHER CUSTOMERS

A.             Common problems faced in dealing with customers:

1.     Bribes - There is a thin line between good business and the misuse of a bribe or gift.

2.     Misrepresentation — of the product, company, company policies, prices, or delivery time in attempt to make a sale.

a.     Salespeople must understand the difference between opinions and statements of fact.

(1)  Opinions do not have legal consequences.

(2)  A company may be sued if its salesperson uses erroneous statements of “fact.”

b.     Suggestions for staying legal:

(1)  Understand the difference between statements of praise and statements of fact.

(2)  Educate customers.

(3)  Be accurate.

(4)  Know the product’s technical specifications.

(5)  Avoid exaggerations about product safety.

(6)  Be familiar with laws regarding warranties.

(7)  Understand your product’s capabilities.

(8)  Keep current with design changes.

(9)  Avoid offering untested opinions.

(10) Never overstep authority.

3.     Price discrimination - Some customers may be given price reductions, promotional allowances and support while others are not. Violation of the Robinson-Patman Act of 1936.

4.     Tie-in-sales - When the buyer is required to buy other products that are not wanted. Prohibited under the Clayton Act.

5.     Exclusive Dealership - also prohibited under the Clayton Act.

6.     Reciprocity - buying a product from someone if the person or organization agrees to buy from you.

7.     Sales restrictions.

a.     FTC “cooling off” laws.

(1)  Within three days, buyer can:

(a)   Cancel contract.

(b)  Return merchandise.

(c)   Obtain full refund.

(2)  Law covers sales of $25 or over made door-to-door.

(3)  Buyer must have written, dated contract and be told of the three-day period.

b.     Green River Ordinance — required a license for selling direct to consumers.

VII.         THE INTERNATIONAL SIDE OF ETHICS - Despite different laws in other countries, U.S. firms are subject to U.S. laws internationally.

VIII.       MANAGING SALES ETHICS

A.             Follow the leader - chief executives may set the example.

B.             Leader selection - carefully choose managers with high levels of moral development.

C.             Establish a Code of Ethics - a formal statement of the company’s views concerning ethics and social values which includes:

1.              Principle-based statements.

2.              Policy-based statements.

D.             Create Ethical Structures such as an:

1.              Ethical Committee - group of executives appointed to oversee company ethics.

2.              Ethical ombudsman - official given the responsibility of corporate conscience that hears and investigates ethical complaints and informs top management of potential ethical issues.

E.             Encourage whistle-blowing.

F.              Create an ethical sales climate.

G.             Establish control systems.

IX.           HELPFUL HINTS TO MAKING CAREER DECISIONS

A.             Be involved in businesses/organizations that make worthwhile products.

B.             Do what is right according to your beliefs no matter what the costs.

C.             Do not compromise your beliefs.

D.             Put people first.

E.             Recognize the importance of good people.

X.             DO YOUR RESEARCH - In a potential employer look for:

A.             Integrity - The business should be honest without compromise or corruption.

B.             Trust - You have to know you can trust your employer.

C.             Character - What is the company like when no one is looking, and what do they stand for?

D.             Values - The company should follow a moral code of conduct toward others-like the Golden Rule!

E.             Truth - The company should be true to their word and reflect the best of mankind.

F.              Love - The company should display a strong affection, desire, or devotion toward people (the CCC GOMES).  Love should be the business's cornerstone.

XI.           GOLDEN RULE OF SELLING

A.             What is truth?

1.              Facts needed to make ethical and moral decisions

2.              But what are true facts? (What discussion you can have here!)

XII.         SUMMARY OF MAJOR ISSUES

A.             Ethical behavior pertains to values of right and wrong.

B.             Values depend on individual and organizational characteristics.

1.              An important individual characteristic is one's moral development.

2.              Corporate culture is an organizational characteristic.

C.             Corporate social responsibility is based on four criteria:

1.              Economic responsibility.

2.              Legal responsibility.

3.              Ethical responsibility.

4.              Discretionary responsibility.

D.             Social responsibility in business means profitably serving employees and customers in an ethical and lawful manner regardless of cost.

E.             Could the Golden Rule serve as a universal, practical, helpful standard for people's conduct?

F.              In the future, ethical standards for salespeople must be developed, supported, and policed.  Current techniques include:

1.              Leadership

2.              Codes of Ethics

3.              Ethical Structures

4.              Whistle-blowing

5.              Establishing Control Systems

F.     Socially responsible organizations perform as well as - and often better than - organizations that are not socially responsible.

 

CHAPTER 4

The Psychology of Selling: Why People Buy

LECTURE OUTLINE

I.               THE GOLDEN RULE: BENEFITS

A.             Customers want to trust you.

B.             Do the right thing for customers and tell them the truth even if that means a "no sale."

C.             Unselfishly try to help customers meet their needs, not just make a sale.

II.             WHY PEOPLE BUY - THE BLACK BOX APPROACH

A.             Black Box - the internal mental processes that a person goes through when making a decision.

B.             Stimulus-Response Model - assumes that prospects will respond in some predictable manner to the sales presentation.

C.             Certain things are known about a prospect’s mental process:

1.     People buy for both practical and psychological reasons.

2.     Methods are known that salespeople can use to help determine the prospect’s thoughts during sales presentations.

3.     We know many of the factors that buyers consider in purchase decisions.

III.           PSYCHLOLGICAL INFLUENCES ON BUYING

A.             Motivation to buy must exist.

1.     Needs - result from a lack of something desirable.

2.     Wants - needs learned by the person.

3.     Have practical needs (transportation).

4.     Have psychological needs (Cadillac).

B.             Economic needs - The best value for their money.

1.     Economic needs - the buyer’s need to purchase the most satisfying product for the money.

a.     Price - higher prices can be overshadowed by superior quality.

b.     Quality - performance, dependability, and durability.

C.             Awareness of needs: Some buyers are unsure.

1.     Three degrees (levels) of need awareness:

a.     Conscious—fully known needs.

b.     Preconscious—may not be fully aware of needs.

c.     Unconscious—have needs but do not know what they are.

IV.           A FABULOUS APPROACH TO BUYER NEED SATISFACTION

A.             Benefit selling - relating a product’s benefits to a customer’s needs.

B.             FAB selling technique – (Features, Advantages, and Benefits).

C.             The product’s Features - So what? - Features are physical characteristics.

D.             The product’s Advantages - Prove it!

1.     Advantages are performance characteristics.

2.     Advantage - what the product does.

3.     How can it be used to the buyer’s benefit?

E.             The product’s Benefits - What’s in it for me?

1.     Benefit selling - answers the question, “What’s in it for me?”

2.     Benefits are favorable results of a particular advantage that can satisfy buyer’s needs.

F.              Order can be important

1.     Emphasize benefits.

2.     Describe the advantages and features.

V.             HOW TO DETERMINE IMPORTANT BUYING NEEDS – A KEY TO SUCCESS

A.             To determine needs, LOCATE:

1.     Listen.

2.     Observe.

3.     Combine.

4.     Ask questions.

5.     Talk to others.

6.     Empathize.

VI.           TRIAL CLOSE - A GREAT WAY TO UNCOVER NEEDS AND SELL

A.             Trial close - checks the pulse or attitude of your prospect toward the sales presentation. The trial close is one of the best selling techniques to use in your sales presentation and should be used at four important times:

1.     After making a strong selling point.

2.     After the presentation.

3.     After answering an objection.

4.     Immediately before you move to close the sale.

B.             The trial close allows you to determine:

1.     Whether the prospect likes your product’s feature, advantage or benefit.

2.     Whether you have successfully answered the objection.

3.     Whether any objections remain.

4.     Whether the prospect is ready for you to close the sale.

C.             The trial close asks for the prospect’s opinion.

D.             The trial close does not ask the prospect to make a decision.

E.             Examples:

1.     “How does that sound to you?”

2.     “Is this important to you?”

3.     “It appears that you have a preference for this model. Is this what you had in mind?”

VII.         SELL SEQUENCE

A.             One way to incorporate the trial close into your presentation is the use of a SELL sequence:

1.     Show the feature.

2.     Explain the advantage.

3.     Lead into benefit.

4.     Let customer talk by asking questions in the form of a trial close.

B.             Selling involves determining needs and skillfully relating your product’s benefits to those needs.

VIII.       BUYER PERCEPTION, ATTITUDES, AND BELIEFS ARE LEARNED

A.             The buyer’s perceptions are learned - Learning is acquiring knowledge or a behavior based upon past experiences.

B.             The buyer’s attitude about the product is important - Attitude is one's learned predisposition toward something.

C.             The buyer’s attitude must be converted into a belief - Belief is a state of mind in which trust or confidence is placed in something or someone.

D.             The salesperson provides the buyer with product knowledge that allows him to develop favorable personal attitudes toward the product. These attitudes will result in positive beliefs that your product will fulfill his needs.

IX.           YOU CAN CLASSIFY BUYING SITUATIONS

A.             Some decisions are routine - Some products are purchased by habit.

B.             Some decisions are limited - If customers are not familiar with a particular brand, they will seek more information.

C.             Some decisions are extensive - Most large purchase decisions are made after the buyer carefully reviews all information.

X.             TECHNOLOGY PROVIDES INFORMATION - Salespeople are able to serve customers better and faster.

XI.           VIEW BUYERS AS DECISION MAKERS

A.             Five basic steps of the buying decision:

1.     Need arousal - Help the customer realize his needs.

2.     Collection of information - The customer may choose to collect information from a variety of companies.

3.     Information evaluation.

a.     The customer matches this information with his needs, attitudes and beliefs.

b.     To provide the buyer with proper information, you need to know:

(1)  What product attributes are important in buying decision - Price?  Quality?  Service?

(2)  What are the most important attributes?

(3)  What are the prospect’s attitudes toward:

(a)   Your products?

(b)  Your competitor’s products?

(4)  What level of satisfaction is expected from buying this product?

c.     You must be prepared to:

(1)  Alter buyer’s beliefs about:

(a)   Your products.

(b)  Your competitor’s products.

(2)  Alter importance of attribute – quality and service are more important than price.

(3)  Bring out unnoticed attributes.

(4)  Change person’s search for the “ideal” product into a search for a more “realistic” product.

4.     Purchase decision - A buyer’s decision to make a purchase can be altered by four basic factors:

a.     The attitude of others.

b.     The “perceived risk” of buying the product - “Will I receive my money’s worth?”

c.     Uncontrollable factors (insufficient financing, failing of physical exam, etc.).

d.     The salesperson’s action after the decision has been reached.

5.     Postpurchase.

a.     After the purchase, the buyer may experience:

(1)  Satisfaction - the difference between what was expected to be received from the products purchased and what was actually experienced after using the product.

(2)  Dissonance - tension over whether the right decision was made in buying the product.

(a)   Show the buyer how to properly use the product.

(b)  Be realistic in your claims of the product.

(c)   Reinforce the buyer’s decision by reminding him how well the product performs and fulfills his needs.

(d)  Follow-up after the sale to determine if a problem exists.

XII.         SATISFIED CUSTOMERS ARE EASIER TO SELL - Building relationships with customers makes selling easier.

XIII.       TO BUY OR NOT TO BUY - A CHOICE DECISION

A.             A salesperson should consider the following questions before developing a sales presentation:

1.     What type of product is desired?

2.     What type of buying situation is it?

3.     How will the product be used?

4.     Who is involved in the buying decision?

5.     What practical factors may influence the buyer’s decision?

6.     What psychological factors may influence the buyer’s decision?

7.     What are the buyer’s important buying needs?

B.             People will buy if:

1.     They perceive a need or problem.

2.     They desire to fulfill a need or solve a problem.

3.     They decide there is a high probability that your product will fulfill their needs or solve their problems better than your competitor’s.

4.     They believe they should buy from you.

5.     They have the resources and authority to buy.

 

Chapter 5

Communication for Relationship Building: It’s Not All Talk

LECTURE OUTLINE

I.               THE GOLDEN RULE: COMMUNICATION

A.             You can read people's minds (sort of).

B.             Use the techniques learned in this and the last chapter to better meet people's needs, not just make sales.

II.             COMMUNICATION: IT TAKES TWO

A.             Communication - the act of transmitting verbal and non-verbal information between the seller and the buyer and understanding one another.

1.     Face-to-face communication is composed of:

a.     Verbal messages.

b.     Vocal messages (voice quality, pitch inflection, and pauses).

c.     Non-verbal messages.

B.             Salesperson-buyer communication process requires feedback.

1.     Communication occurs when a “sender” transmits a “message” through some type of “medium” to a “receiver” who responds to that message.

2.     Eight major communication elements:

a.     Source - salesperson.

b.     Encoding process - conversion by the salesperson of ideas and concepts into the language and materials used in the sales presentation.

c.     Message - information conveyed in the sales presentation.

d.     Medium - form of communication used in the sales presentation and discussion.

e.     Decoding process - interpretation of the information by the receiver.

f.      Receiver - the prospective buyer.

g.     Feedback - reaction to the communication as transmitted to the receiver.

h.     Noise - factors that distort communication between buyer and seller.

III.           THE BUYER’S PERSONALITY SHOULD BE CONSIDERED

A.    Personality can affect buying decisions.

1.     Personality - the individual’s distinguishing character traits, attitudes, or habits.

B.    Self-concept theory - each buyer possesses four images:

1.     The real self - the individual as he actually is.

2.     The self-image - the way the individual sees himself.

3.     The ideal self - the way the individual would like to be.

4.     The looking-glass self - the way the individual thinks others regard him.

C.    Adaptive selling based on buyer’s style.

1.     Personality typing - method to uncover aspects of the prospect’s personality that might influence a buying decision.

2.     Carl Jung

a.     Laid the basis of modern psychiatry.

b.     Four categories of personality types:

(1)  Thinker.

(2)  Intuitor.

(3)  Feeler.

(4)  Senser.

c.     Guidelines to identify personality type:

(1)  Identify a key trait.

(2)  Focus on time orientation.

(3)  Identify the environment.

(4)  Listen to what people say.

D.    Adapt your presentation to the buyer’s style.

1.     A major challenge is to adapt your personal style to that of the person you’re dealing with.

E.    Styles:

1.     Thinker style:

a.     High value placed on logic, ideas, and systematic inquiry.

b.     Present material in an orderly manner.

c.     Have plenty of facts and supporting material.

2.     Intuitor style:

a.     High value placed on ideas, innovation, concepts, theory, and long-range thinking.

b.     Give the buyer the “bigger picture.”

c.     Build the buyer’s concepts and objectives.

3.     Feeler style:

a.     High value placed on being people-oriented and sensitive.

b.     Relate to buyer the impact your idea will have on people.

c.     Keep on a personal note with small talk.

4.     Senser style:

a.     High value placed on action.

b.     Be brief and to the point.

c.     Verbal communication is more effective than written communication.

5.     Watch for clues.

a.     Be observant of a buyer’s environment to determine that person’s personality style.

b.     Determine primary (dominant) style and complimentary or back-up style.

F.     What is your style? - Find out your own personality style by completing the questionnaire at the end of the chapter or going to the web-sites in the “www” exercises at the back of the book.

IV.           NON-VERBAL COMMUNICATION: WATCH FOR IT

A.             Four major non-verbal communication channels are:

1.     Physical space between people.

2.     Appearance.

3.     Handshake.

4.     Body movements.

B.             Concept of space.

1.     Territorial space - refers to the area around the self a person will not allow another person to enter without consent.

2.     Four types of territorial space to consider:

a.     Intimate space - up to two feet or about arm’s length is the most sensitive zone.  It is reserved for very close friends and loved ones.

b.     Personal space - the closest zone a stranger or business acquaintance is normally allowed to enter (two to four feet).

c.     Social space - the area normally used for a sales presentation (four to twelve feet).

d.     Public space - often used by the salesperson making a presentation to a group of people (greater than twelve feet).

3.     Space threats - The “territorial imperative” causes people to feel that they should defend their space or territory.

4.     Space invasion.

a.     A prospect who allows you to enter or invade personal or even intimate space is saying, “Come into my space.  Let’s be friends.”

b.     You can use space to your advantage.

C.             Communications through appearance and handshakes.

1.     Style hair carefully.

2.     Dress as a professional - wardrobe is always a major determinant of sales success.

3.     Shake hands firmly and "look ‘em in the eye" - general rules:

a.     Strangers may be uncomfortable shaking hands, so, at times, allow your customer to initiate the gesture.

b.     Maintain eye contact, gripping the hand firmly.

D.             Body language gives you clues.

1.     Acceptance signals - those that indicate that the buyer believes your product might fulfill his needs.

a.     Body angle - leaning forward or upright at attention.

b.     Face - smiling, pleasant, relaxed, good eye contact, positive voice tones.

c.     Arms - relaxed and generally open.

d.     Hands - relaxed and generally open, performing calculations, holding on to a sample as you try to withdraw it, a firm handshake.

e.     Legs - crossed and pointed toward you or uncrossed.

2.     Caution signals - the buyer is neutral or skeptical.

a.     Body angle - leaning away from you.

b.     Face - puzzled, little or no expression, little eye contact, neutral or questioning.

c.     Arms - crossed, tense.

d.     Hands - moving, fidgeting with something, clasped, a weak handshake.

e.     Legs - moving, crossed away from you.

3.     How to handle caution signals:

a.     Adjust to the situation by slowing up or departing from you planned presentation.

b.     Use open-ended questions to encourage the buyer to talk and express his attitudes and beliefs.

c.     Listen and respond to what buyers say.

d.     Project acceptance signals.

4.     Disagreement signals:

a.     Body angle - retracted shoulders, leaning away from you, entire body is back (wants to move away).

b.     Face - tense, showing anger, wrinkled face and brow, very little eye contact, negative voice tones, may become suddenly silent.

c.     Arms - tense, crossed over chest.

d.     Hands - tense and clenched, weak handshake.

e.     Legs - crossed and away from you.

5.     How to handle disagreement signals.

a.     Use open-ended questions.

b.     Project acceptance signals.

c.     Stop your planned presentation.

d.     Reduce or eliminate pressure to buy or talk.

e.     Let him know you’re there to help him, not to sell at any cost.

f.      Use direct questions to determine his attributes and beliefs.

6.     Body guidelines:

a.     Be able to recognize non-verbal signals.

b.     Be able to interpret them correctly.

c.     Be prepared to alter a selling strategy by slowing, changing, or stopping a planned presentation.

d.     Respond non-verbally and verbally to a buyer’s non-verbal signals.

V.             MASTER PERSUASIVE COMMUNICATION TO MAINTAIN CONTROL

A.             Salespeople need to be good communicators - Persuasion is the ability to change a person’s belief, position, or course of action.

B.             Feedback guides your presentation - Salespeople need to generate feedback, or a recognizable response, from the buyer.

C.             Remember the trial close - Predetermine when and what feedback-producing questions to use in your presentations.

D.             Empathy puts you in your customer’s shoes - Empathy is the ability to identify and understand other people’s feelings, ideas, and situations.

E.             Keep it simple - Make the buyer feel comfortable by using non-technical information and maintaining an attitude of mutual respect.

F.              Creating mutual trust develops friendship.

G.             Listening clues you in.

1.     Hearing refers to being able to detect sounds.

2.     Listening means hearing the emotion behind the words.

3.     A good salesperson should listen carefully to a buyer to determine his need or concern. “Guides for listening” are:

a.     Listen to words and thoughts.

(1)       Note changes in eye contact.

(2)     Concentrate.

(3)    Listen between the words.

b.     Listen to the full story.

c.     Recognize feelings and emotions.

d.     Restate the buyer’s position (summarize for clarity).

e.     Question with care.

f.      The three levels of listening are:

(1)  Marginal listening.

(2)  Evaluative listening.

(3)  Active listening.

4.     Technology helps to remember.

a.     Memory is simple recall over time.

b.     Memory retention.

H.             Your attitude makes the difference toward both the sales job and customers. The secret of a great sales attitude is enthusiasm plus:

1.     Caring

2.     Joy

3.     Harmony

4.     Patience

5.     Kindness

6.     Moral Ethics

7.     Faithfulness

8.     Fairness

9.     Self-control

I.               Proof statements make you believable - A proof statement is a statement that substantiates claims made by the salesperson.

 

Chapter 6

Sales Knowledge: Customers, Products, Technologies

LECTURE OUTLINE

I.               THE GOLDEN RULE: KNOWLEDGE

A.             Sales people must be experts on everything involved with their product.

B.             Customers rely on salespeople to have this knowledge.

C.             The knowledge must be presented truthfully so as to better serve the customer.

II.             SOURCES OF SALES KNOWLEDGE

A.             Sales Training - the effort put forth by an employer to provide the opportunity for the salesperson to receive job-related attitudes, concepts, rules and skills that result in improved performance in the selling environment.

B.             Sales Experience - selling is a skill developed through experience.

III.           KNOWLEDGE BUILDS RELATIONSHIPS

A.             Knowledge increases confidence in salespeople…

B.             and in buyers because thorough knowledge about your product is needed to gain the buyer’s confidence.

C.             Relationships increase sales.

IV.           KNOW YOUR CUSTOMERS - Ask questions to determine their needs.

V.             KNOW YOUR COMPANY

A.             Salespeople should be knowledgeable about their company’s policies and procedures.

B.             General company information.

1.     Company growth and accomplishment - Salespeople should have knowledge of the company’s origin and development.  The company should also provide the salespeople with promotional material and instill confidence in the company.

2.     Policies and procedures - the salesperson should let the customer know:

a.     How the order will be processed.

b.     How long it will take to receive the order.

c.     The policy on returned goods.

d.     How to open a new account.

e.     What to do if he/she receives the wrong shipment.

3.     Production facilities

4.     Service facilities - promise of prompt repair services can help make a sale.

VI.           KNOW YOUR PRODUCT - A salesperson’s product knowledge should include:

A.             Performance data.

B.             Physical size and characteristics.

C.             How the product operates.

D.             Specific features, advantages and benefits of the product.

E.             How well the product is selling in the marketplace.

VII.         KNOW YOUR RESELLERS - Salespeople should learn as much as possible about each channel member.

A.             Likes and dislikes of each channel member’s customers.

B.             Product lines and assortment each one carries.

C.             When each member sees salespeople.

D.             Their distribution, promotion, and pricing policies.

E.             What and how much of a product each has purchased in the past.

VIII.       ADVERTISING AIDS SALESPEOPLE

A.             Types of advertising differ.

1.     National advertising - reaches all users of the product across the country.

2.     Retail advertising - used by retailers to reach customers within a specific geographic area.

3.     Cooperative (“co-op”) advertising - conducted by the retailer and paid for by the manufacturer, or the cost is shared.  This is known as an advertising agreement.

4.     Trade advertising - undertaken by the manufacturer and directed toward the wholesaler or retailer.

5.     Industrial advertising - aimed at individuals and organizations that purchase products for use in manufacturing other products.

6.     Direct-mail advertising - ads, samples, and coupons mailed directly to the consumer or industrial user to expose him to or remind him of the product.

B.             Why spend money on advertising?

1.     To increase overall and individual product sales.

2.     To build product and/or company recognition.

3.     To give salespeople additional selling information to use in their sales presentations.

4.     To develop leads for salespeople.

5.     To increase cooperation from middlemen.

6.     To help educate the customer with the company’s products.

7.     To inform prospects that a product is on the market and where to buy it.

8.     To aid in reducing cognitive dissonance over the product.

9.     To create sales between a salesperson’s calls.

IX.           SALES PROMOTION GENERATES SALES

A.             Consumer sales promotion - includes free samples, coupons, and demonstrations to consumers.

B.             Trade sales promotion - encourages resellers to purchase and aggressively sell a manufacturer’s products by offering incentives like sales contests, displays, special purchase prices, and free merchandise.

C.             Point-of-purchase (POP) displays - Allow a product to be easily seen and purchased.

D.             Shelf positioning is important to your success.

1.     Shelf positioning - refers to the physical placement of the product within the retailer’s store.

2.     Shelf-facing - the number of individual products placed beside each other on a shelf.

E.             Premiums - articles of merchandise offered as an incentive to the user to take some action.

X.             WHAT’S IT WORTH? PRICING YOUR PRODUCT

A.             Price - refers to the value or worth of a product that attracts the buyer to exchange money or something of value for the product.

B.             It is important for salespeople to familiarize themselves with the company’s price, discount, and credit policies so that they can use them for a competitive advantage and enhance their professional image with the buyer.

XI.           KNOW YOUR COMPETITION, INDUSTRY, AND ECONOMY

A.             Successful salespeople are knowledgeable about their competitors' products.

B.             Salespeople should keep informed about the industry and the economy.

XII.         PERSONAL COMPUTERS AND SELLING

A.             PCs are a valuable tool for increasing productivity within the sales force.

B.             Major reasons for using a PC:

1.     More effective management of sales leads and better follow-through on customer contacts (permanent lead file).

2.     Improves customer relations due to more effective follow-ups.  This leads to further productivity gains.

3.     Improves organization of selling time.

4.     Provides more efficient account control and better time and territory management.

5.     There is a definite increase in the number and quality of sales calls.

6.     Faster speed and improved accuracy in getting reports and orders to the company.

7.     Helps develop more effective proposals and persuasive presentations.

XIII.       KNOWLEDGE OF TECHNOLOGY ENHANCES SALES AND CUSTOMER SERVICE - Sales force automation (an application of technology) improves customer service and increases sales through:

A.             Personal productivity programs - assist with data storage and retrieval, time management, and presentations.

1.     Contact management - ACT! Contact Manager - the best known contact management software.

2.     Calendar management.

3.     Automated sales plans, tactics, and ticklers.

4.     Geographic information systems.

5.     Computer-based presentations.

6.     iPods improve sales.

B.             Communications with Customers and Employer

1.     A word processing system can make written communication more efficient.

2.     Electronic Mail allows messages to be sent electronically.

3.     Fax Capabilities and Support.

C.             Order processing and service support - shortens the sales-and-delivery cycle.

1.     Automated order entries.

2.     Salespeople’s mobile offices.

XIV.      SALES, INTERNET, AND THE WORLD WIDE WEB - The internet provides salespeople access to research, data, people, and vast amounts of information.

A.             Internet - global network of computers.

B.             World Wide Web - part of the Internet housing Web sites.

1.     Page - screen of information.

2.     Links - connect Web information.

3.     Surfing - searching different Web sites.

C.             E-Sales, Digital Media and Social Networking

1.     E-Sales is the strategic process such as discovering the desires of customers

2.     A digital sale uses all digital media, including the internet and mobile and interactive channels, to develop communication and exchanges with customers and prospects.

3.     Social network is a web-based place.

XV.        GLOBAL TECHNOLOGY PROVIDES SERVICE - Increased world-wide interaction requires access and exchange of timely data on a timely basis.

XVI.      TECHNOLOGY ETIQUETTE.

A.             Netiquette is the term used for etiquette on the Internet.

1.     E-mail do’s and don’ts

a.     Be concise, but not too short.

b.     Respond as quickly to an E-mail as you would answer telephone messages.

c.     Avoid flaming, which is the equivalent of a verbal lashing on the Internet.

d.     Use clear, descriptive and current subject headings.

e.     Use dates, salutations, proper punctuation and a friendly closing.

f.      Don’t make comments or requests in an E-mail that you would not make in person.

g.     Don’t send repeat messages.

h.     Don’t use all capital letters; it is the equivalent of shouting.

i.      Don’t send bad news via E-mail.

B.             Cell phone guidelines:

1.     The person you are with is the most important person to talk to.

2.     Use text messaging to simplify your life.

3.     Turn off your phone during meetings, sales calls, and presentations.

4.     Don’t engage in cell yell.

C.             Voice Mail

1.     Always change your outgoing message to let customers know of your availability, and leave a contact name and phone number of someone who can help them in case they need immediate assistance.

2.     Be courteous when leaving voice messages for others.

D.             Faxes

1.     Always remember to include a cover page with your fax number, the number of pages being sent, and a phone number where you can be reached.

2.     Let the person know that the fax is coming.

3.     Check the spelling and grammar.

E.             Speakerphones and conference calls - People in a conference call should identify themselves while speaking, and one person should act as a meeting leader.

XVII.    APPENDIX:  SALES ARITHMETIC AND PRICING

A.             What’s it worth? - Price - the value or worth of a product that attracts the buyer to exchange money or something of value for the product.

B.             Types of prices:

1.     List price - standard price charged to customers.

2.     Net price - price after all allowances for discounts.

3.     Zone price - price based on geographical location or zone of customers.

4.     FOB shipping point - buyer pays for transportation charges.

5.     FOB destination - seller pays all shipping costs.

C.             Discounts lower the price.

1.     Quantity discounts: Buy more, pay less.

a.     Large quantities are produced at lower costs; the savings are passed on to customers.

b.     Non-cumulative quantity discounts - one-time reductions in price.

c.     Cumulative quantity discounts - discounts received for buying certain amounts of a product over a stated period of time.

2.     Cash discounts - discounts earned by buyers who pay their bills within a stated period of time.  They encourage the customer to pay on time.

3.     Trade discounts - Reduced prices for middlemen.  Serve to get middlemen's attention.

4.     Consumer discounts - One-time price reductions passed on from manufacturer to middleman or directly to the consumer.  They increase sales.

D.             Markup represents gross profit.

1.     Markup - dollar amount added to the cost of the product to calculate its selling price.

2.     Gross profit - money available to cover the costs of marketing, operating the business, and profit. If you read this, contact me, and I’ll send you $10 if you are one of the first three.

3.     Net profit - money remaining after paying the costs of marketing and operating the business.

4.     Return on Investment (ROI) - an additional sum of money expected from an investment over and above the original investment.